Super Group made the announcement on Thursday, with the purpose-built ZAR Supercoin to operate under a new division of the business called Super Money SA. The digital wallet is expected to launch in Q1 of next year.

The stablecoin will be used as a payment option for its Betway sportsbook brand, with the business looking to capitalise on the growing popularity of blockchain. An in-house cryptocurrency was first hinted at during Super Group’s Q2 earnings call, with CEO Neal Menashe saying the payments system could help mitigate high operating costs and leverage the growing popularity of crypto among consumers.

Africa’s stablecoin volumes are estimated to be worth around $100 billion across key markets, the company said.

The new blockchain-focused segment will also introduce a new Supercoin Wallet with the hopes it will provide a smoother payment process for the population in South Africa and the wider continent.

Alinda van Wyk, Super Group chief financial officer, said now was the right time for the company to move into the crypto space, due to the growing demand for convenient payment solutions.

“We have always been at the forefront of tech advancement in the gambling industry and this offering will also benefit the millions of customers who enjoy our brands in South Africa and in the rest of the continent,” Van Wyk said.

“The launch of Supercoin will position us for continued success, as alternative payment methods and digital asset frameworks become more integrated into the regulated gaming ecosystem. This also underscores our commitment to innovation and the use of advanced technology to position Super Group for sustained growth.”

Super Group’s Supercoin listed on Luno in SA

The stablecoin will be listed on leading regulated cryptocurrency exchange Luno and will be made available to customers in South Africa initially, the company said. As it gains traction, it will be added to other exchanges across the continent.

Tier 1 South African bank ABSA Group will hold custody of the Supercoin’s fiat currency backing reserves. The ZAR Supercoin will be deployed on the Solana blockchain, while Chainalysis will provide compliance solutions so that Super Money can establish risk policies and monitor transactions.

Growing acceptance of crypto

In a post-Q3 earnings call earlier this month, Menashe said the launch of its stablecoin marked a “significant and strategic step forward” in the company’s approach to payments.

“We intend Supercoin to be more than just a rewards tool,” Menashe explained. “It marks a crucial first step in integrating digital assets into our product stack.”

He said the wallet option would provide customers with a seamless and secure way to store, send and transact using Supercoin. “We expect it will lead to cost efficiencies over time,” he added.

Interest in crypto within the regulated gambling space has been heating up of late, particularly after Yolo Group announced in September that it was bringing its crypto casino brand into regulated markets.

At the time, Yolo said its decision was in part down to crypto becoming “mainstream”, with iGaming and sports consultant Stefan Kovach recently telling iGB: “Having been in the [crypto] space for seven, eight years, it’s definitely moved beyond a very core niche into something much, much bigger.”

This week, UK Gambling Commission CEO Andrew Rhodes also highlighted the increasing interest in crypto among gamblers. In a speech to industry CEOs, he cautioned the government could no longer overlook crypto gambling.

He refrained, however, from suggesting the UK might soon grant licences for crypto-based betting, emphasising instead that new regulatory measures must be established by policymakers.

According to the Singapore Personal Data Protection Commission (PDPC), MBS made a single employee responsible for the transfer. That person manually compiled the list of API configurations, minus second-layer checks. Such carelessness allowed “unknown threat actor(s)” to illegally access and exfiltrate the data on 19-20 October of that year.

In handing down the penalty, PDPC officials said MBS ignored “clear risks” to complete the massive migration exercise. The leaked information was later offered for sale on the dark web. There, “it can be exploited in phishing scams or identity theft”, the PDPC said.

Marina Bay Sands data breach included names, emails, phone numbers

The info was poached from MBS’ LifeStyle rewards programme. It included names, email addresses, phone numbers, country of residence and membership number and tier. The property’s casino rewards programme was not accessed.

“As a large enterprise with significant turnover in Singapore, MBS had the required resources to protect their patrons,” the watchdog scolded. “MBS’ failure to put in place proper processes for something as critical as security policy was a negligent contravention of the Protection Obligation.”

In 2022, Singapore raised the maximum financial penalty for organisations with S$10 million-plus in annual turnover to 10% of that turnover, reports Channel News Asia. Last year, MBS posted net revenue of S$5.43 billion.

Mea culpa

Following the data breach, MBS assured customers it had “quickly launched an investigation” and engaged a leading external cybersecurity firm. The Las Vegas Sands organisation pledged to “further strengthen our systems and protect data”.

Chief Operating Officer Paul Town advised patrons to “monitor your account for suspicious activity, change your log-in pin regularly and be extra vigilant against phishing attempts”.

In August, Esportes Gaming Brasil launched its new LOTTU brand, which will operate alongside its existing Esportes da Sorte and OnaBet brands in the newly regulated Brazil online gambling market.

The new platform will offer faster navigation, better customisation options and an improved user journey for players, powered by a new in-house platform.

Filho believes LOTTU fills a gap in the hugely competitive Brazil gambling market, offering a highly customisable, dynamic and interactive experience for bettors.

With this enhanced user experience, Filho hopes LOTTU will soon become one of the top brands in Brazil, consolidating Esportes Gaming Brasil’s position as a major gaming group in the market.

“LOTTU was built to evolve with the market,” Filho tells iGB. “Our vision is that, in the next five years, it will become one of the leading platforms in terms of innovation, personalisation and digital engagement.

“We will continue investing in technology, data intelligence and interactive features to keep LOTTU ahead of the expectations of Brazilian users.”

How will Esportes Gaming Brasil differentiate LOTTU?

The launch of LOTTU may raise questions over how exactly Esportes Gaming Brasil plans to differentiate the new brand within the market.

Esportes Gaming Brasil has now reached the maximum of three brands permitted per licence with LOTTU, raising a further question of how it will differ from the company’s existing Esportes da Sorte and Onabet brands.

But for Filho, each brand holds its own identity, with LOTTU designed to complement the portfolio, rather than directly compete with its existing brands, by catering towards distinct player profiles.

“Esportes da Sorte is our institutional brand, with a strong presence in sports and cultural sponsorships,” Filho continues. “OnaBet connects with its audience creatively, through digital campaigns and influencers.

“LOTTU, on the other hand, was designed to be bold, fast and interactive, with a complete focus on user experience.

“All brands coexist complementarily, without direct competition between them. It’s a strategic segmentation. This way, we can reach different profiles of bettors while maintaining the identity of each brand.”

LOTTU created from the ground up

LOTTU’s new in-house platform has been designed to deliver players a smoother user experience and greater adaptability.

This was a months-long process for Esportes Gaming Brasil, involving planning, testing and adjusting the LOTTU product until it was ready to deliver true value to bettors.

“Creating a brand from scratch requires strategic vision, dedication, an eye for technology and understanding consumer behaviour,” Filho says.

“The biggest challenge was developing a platform that combined performance, aesthetics and innovation, without compromising on security and responsibility.”

Filho believes LOTTU will tap into the Brazilian audience’s desire for dynamism and engagement, especially through its real-time promotions, dynamic layouts and the ability for player experiences to be personalised.

Esportes Gaming Brasil’s overall market position

Data from H2 Gambling Capital currently ranks Esportes da Sorte as the fifth-biggest brand in Brazil, with Onabet approximately 43rd.

The expectation from many is that the Brazilian online gambling sector will consolidate, with Christian Tirabassi, founder and senior partner of M&A advisory firm Ficom Leisure, previously telling iGB he predicts 10 to 12 operators will dominate the market.

Filho is confident Esportes Gaming Brasil will be in that mix of leading operators.

“It is natural that regulation will lead to a consolidation process,” Filho explains. “Esportes Gaming Brasil is already prepared for this, as we have a solid operation, three regulated brands and responsible management.

“We are keeping an eye on potential market moves, but we are confident that our well-structured base positions us as leaders in this process.”

LOTTU will play a key role in securing Esportes Gaming Brasil’s place among the chief operators in Brazil.

“We believe that LOTTU will play a key role in this process, helping to expand our customer base and further consolidating the group’s position as a leader in the regulated sector in Brazil,” Filho concludes.

“We always work with ambitious and sustainable targets to continue growing solidly and responsibly.”

Last week at SBC Summit Lisbon, a panel discussed the challenges of meeting stringent KYC rules, particularly in the newly regulated online gambling market of Brazil, where tough measures hindered operator growth in the licensed sector’s early days. 

Esportes Gaming Brasil CBO Hugo Baungartner, Stake compliance director Barbara Teles and Betboom compliance counsel Laura Beatriz de Souza Morganti agreed that local KYC providers had been the most suitable option for gambling operators in Brazil, largely due to an increased trust and understanding of local players.  

“When we knew that we had to do the process of KYC in Brazil, I saw a movement of international companies and local companies trying to provide the solution for the operators,” Baungartner said.  

“What I’ve heard is the tools that are not Brazilian were kind of complicated to work with. In our operation, we use a Brazilian third-party solution and, of course, the ones that we trust. Not everybody is trustworthy.” 

Third-party aspect crucial in Brazil 

Teles agreed with Baungartner’s decision to opt for a third-party solution, saying such an important process should be left to experts outside the business. 

“We are in the entertainment industry,” Teles explained. “We are not a KYC supplier. 

“Trusting third-party KYC suppliers, especially in Brazil, it is a better solution than to provide it yourself. We don’t know yet a lot of things, because we only have been in the regulated market for nine months.” 

Morganti echoed the sentiment: “Our main service is the betting experience, so we have to focus on that. Delegating the difficult part and the very technical part seems to be a better solution.” 

Education vital to KYC success for gambling operators 

A major pain point for operators, especially in the first three months of regulation, was customer confusion over the importance of KYC. 

Pre-regulation, little information was required from bettors. But as of 1 January, players had to provide extensive personal information and facial recognition to operators.

Education among players has been crucial to ensure they understand the importance of KYC for their protection. 

“That’s something we all went through between December and January,” Baungartner continued. “From the first of January, they need to complete everything before making first deposit.  

“It was difficult, of course. We had big friction [points] in January. Everybody’s traffic went down. Month by month we communicated that they have to complete 100% of the KYC – otherwise they cannot make [an account].” 

The education goes both ways, Morganti explained. 

“I think it was a good opportunity for everybody,” Morganti said. “Right now, we are educating [players], but we are being educated too, especially on what is the hardest thing for the client to do. 

“We also have to educate ourselves on making their lives easier. So this has been challenging, but this has been good because a lot of new tools are being discovered.” 

Staying one step ahead 

As to be expected, operators have needed to remain vigilant to prevent Brazilians from circumventing KYC requirements. 

“Brazilians are very creative,” Morganti added. “The KYC providers should anticipate what can happen, what they can do to [prevent] fraud – for example, a proof of age, a proof of likeness. We do have that in Brazil.” 

Operators will have to try and stay one step ahead of those looking for ways to bypass KYC, Teles believes. 

Teles has looked to other jurisdictions to learn from and collaborate on KYC, as well as Brazil’s incoming self-exclusion scheme, which is expected to be live by the end of 2025. 

“In Brazil every day we see a new challenge being assumed,” Teles concluded. “We have to be more creative. 

“We have an opportunity to learn from the other countries. We have an opportunity to develop new tools and everything. 

“If we can share [data on] the self-excluded [players], we can put all of the athletes together that cannot bet. If we put [that information] in the same database, everybody will be safer.” 

Arrest over horse race fixing in UK

A 42-year-old man has been arrested in connection with allegations of fixing horse races in the UK.

The unidentified man is alleged to have committed offences under section 42 of the Gambling Act 2005. This section concerns cheating at gambling or assisting someone else with cheating.

The arrest was part of a joint investigation by Greater Manchester Police and the Gambling Commission. This launched following reports of suspicious betting activity linked to horse races earlier this year.

The commission said it would not be commenting further on the case at this time.

Bragg seeks to allay fears over cyber incident

Bragg Gaming Group has played down a recent cyber incident, saying the issue has been resolved.

Bragg revealed the cybersecurity incident on 16 August. It said that it took appropriate steps to mitigate any potential impact of the breach, working with independent experts.

Bragg said there is no indication that any personal information was affected, nor was there any impact on its ability to operate. It also sought to reassure customers about the security of its game titles.

“The company has experienced no negative impact on its revenue or profitability and does not expect that the cost of responding to the incident will have a material financial impact on the company,” Bragg added.

Playbook Fusion enters Netherlands with Bingoal

Playbook Fusion has made its debut in the Dutch market through a partnership with Bingoal.

The deal will see Bingoal become the first operator in the Netherlands to launch Playbook Football. This real-money virtual football management betting game allows users to build teams, place bets, receive in-game rewards and climb divisions.

Bingoal customers can access the game across both the operator’s casino and sportsbook zones.

“This is a unique concept that offers gamification and persistence our bettors are seeking,” Bingoal Casino Product Manager Dany Salmon said. “We are confident that it will resonate well with our player base across Sports and Casino verticals.”

Games Global opens first live dealer studio in Brazil

Another new market entry comes from Brazil, where Games Global partnered with Spin Gaming to establish the country’s first live dealer studio.

Powered by OnAir, Spin Gaming will deliver live game streaming and technical support to its partners.

The agreement also marks the creation of the first Brazilian academy specialising in training live casino dealers. This, the two companies said, will help generate hundreds of jobs for people in Brazil.

“This landmark deal with Spin Gaming not only highlights Games Global’s unwavering commitment to delivering tailored solutions to local markets but also highlights our drive to support iGaming infrastructure in emerging jurisdictions,” said Ricardo Regner, director of LatAm at Games Global.

Paf lands Finnish Ski Association deal

Paf has signed a long-term partnership agreement with the Finnish Ski Association.

The deal runs through 2030, with Paf serving as the official main partner of the Finnish Ski Association. This will become effective when the new Finnish licensing system enters into force, provided Paf secures a licence.

The agreement covers the national A-teams in cross-country skiing, Nordic combined and ski jumping. It also includes the under-23 and under-20 national teams in cross-country skiing.

In addition, Paf will be an official partner of the FIS World Cup events in Ruka and Lahti, as well as the Finnish Cup in cross-country skiing.

“We are truly excited about this new main partnership with the Finnish Ski Association,” Paf Manager Thomas Näsman said. “Our shared values provide an excellent foundation for building a long-lasting and successful collaboration.”

The group was formed by four prominent operators in the market – Betway, BetPawa, 888Africa and Sportybet – but Kesitilwe said it is actively recruiting more operators. 

Kesitilwe brings over nine years of experience at the Botswana Gambling Authority, where he acted as CEO for the last almost two years.  

Speaking to iGB on Tuesday, Kesitilwe’s core message is the African iGaming Alliance is not looking to compete with gambling regulators or independent operators across the continent.  

“We’re not competitors, the intention is to collaborate, complement and work together as a pan-African trade alliance,” Kesitilwe says.  

“We shouldn’t see ourselves as competitors when we’re complementing them. That’s why we are saying let’s harmonise issues of taxes, issues of responsible gambling through our alliance. Let’s speak with one voice.” 

Tackling problem gambling using a sector-wide approach is also a top priority for the African iGaming Alliance.

“At the forefront of what the alliance intends to do is to promote responsible gambling frameworks across Africa,” he adds.  

“This is quite important because the policymakers and governments of these markets would rather increase taxes if we have more problem gamblers.” 

Sector must encourage ‘set gambling tax rate’  

On taxation, Kesitilwe says the sector must be firm in pushing for “set tax [rates]” to avoid pressure from policymakers to contribute more to government coffers. 

“We will be the bridge between operators and regulators to achieve this,” he says.  

Africa is experiencing a huge influx of player activity across gaming, as smartphone usage increases rapidly and countries gain better internet connectivity. 

But being such a huge continent, made up of markets at varying maturity levels, Kesitilwe foresees regulatory fragmentation across Africa being a huge pain point for the growing sector.  

He is calling for a centralised body to standarise regulations between neighbouring markets. 

Standardisation needed across market-by-market regulations

“There is regulatory fragmentation in Africa where you find one operator will be applying for a licence in Nigeria, while also applying for one in Ghana [but] the regulations are quite different,” he notes.  

“We have what we call the Gambling Regulator Africa Forum (GRAF) which could help a lot with standardisation of licensing frameworks and cross-border coordination.”  

The influx of illegal and unregulated operators, which Kesitilwe says makes up to two-thirds of the industry in Africa, is seriously undermining consumer protection and responsible gambling standards, he believes.  

From a consumer perspective, he says it is difficult for players to differentiate between legal and illegal sites, but regulators must be careful which operators they tarnish with the black-market brush.  

“If we operate properly, governments won’t be losing up to $2 billion-$5 billion yearly in unpaid taxes due to the black market,” Kesitilwe adds. 

High banking costs hindering the sector 

Elsewhere, operators are grappling with extremely high costs in relation to banking and payments services.  

In August, Betway parent Super Group reported it was considering adopting crypto payments in Africa to help offset high banking costs and attract new players. 

“In the African side of our business, we have a banking issue there,” Super Group CEO Neal Menashe said at the time.  

“I think crypto and coins can make a huge difference there because banking is a really big cost in Africa, especially for us onboarding our customers and then payments across the continent.” 

Kesitilwe agrees that monopoly payments aggregators and high fees are hindering the sector’s progression in Africa.  

“There still remain some inconsistencies, and in some regions it is very expensive due to issues of monopolies around payment aggregators. Through dialogues and research, we seek to address these,” Kesitilwe tells iGB.  

Benefit of a regulatory background 

Kesitilwe is ultimately optimistic his technical know-how will benefit the African iGaming Alliance.

“I was at the helm of the gambling authority of Botswana so bring with me a wealth of regulatory experience and background,” he says of securing his position at the helm of the AIA.

“I would say I bring firsthand regulatory insight into how governments view compliance, issues of AML/CFT and responsible gambling. 

“Also I’m experienced in forming legislation, modernising regulatory frameworks, issues of credibility with regulators across Africa, so my role allows me to bridge the gap between the industry and the regulators.”

Quick refresher: Prediction markets let users buy and sell contracts on future events – from elections and economic data to cultural moments and sport. For example, you might buy a contract on a Russia-Ukraine ceasefire in 2025 for $0.37 that pays $1 if correct. Kalshi operates as a CFTC-regulated exchange in the US, while Polymarket serves international users who trade with USDC on blockchain rails.

Six months on, the engine has shifted up a gear. Fresh capital has arrived. Large financial platforms Robinhood and Webull now integrate popular prediction markets directly in their apps, and professional trading firms are providing the liquidity that lets users place six-figure bets. AI integrations such as xAI’s Grok are now surfacing market odds across social media and improving the trading experience.

Billion dollar validation

On June 25th, Kalshi raised $185 million at a $2 billion valuation in a Series-C round led by Paradigm, catapulting it beyond unicorn status. The capital will fund what’s already working: expanding stockbroker integrations, encouraging participation from market makers, and launching more ‘always-on’ markets that sustain engagement.

“Prediction markets remind me of crypto 15 years ago: a new asset class on a path to trillions.” Matt Huang, Paradigm

Polymarket has matched the momentum, reportedly in the process of closing a $200 million round at a $1 billion valuation led by Founders Fund. In July it agreed to acquire CFTC-licensed exchange QCEX for $112 million. That purchase provides a compliant path back into the US, even if it requires segregating US and international liquidity. Where Kalshi spent six years in the regulatory trenches, Polymarket is buying existing infrastructure, an option created by Kalshi’s groundwork.

Polymarket often dominates trading volumes, especially on global events. Its international user base and broader market coverage, including wars which Kalshi does not list, arguably make it a stronger gauge of global sentiment. Yet Kalshi commands double the valuation. The premium reflects Kalshi’s current advantage in the United States, where CFTC approval unlocks broker distribution and direct access to institutional liquidity.

Distribution advantage

When Kalshi launched on Robinhood in March 2025, over 25 million users gained instant access to prediction markets. They could speculate on sports and Fed decisions right alongside their stock trades, no additional signup required. The result: approximately one billion worth of event contracts were traded through Robinhood in Q2 (SBC).

Webull followed with S&P 500, crypto and Fed markets, and CEO Tarek Mansour expects further broker integrations this year. Coinbase also confirmed prediction markets are on its roadmap. With over 100 million users globally, they could become a major force whether it partners or builds its own platform.

This broker-led distribution gives Kalshi a major advantage over US sportsbooks. By plugging into existing brokerage accounts, it can reach tens of millions of funded users at minimal cost. FanDuel spent years building 18 million customers through state-by-state licensing, while Kalshi can achieve comparable reach almost instantly.

Kalshi recently added another hook: a 4% annual interest paid on all cash and open positions. Traditional operators struggle to compete with that, since they rely on holding customer float without paying for it.

Market makers

For prediction markets to fulfil their promise, they require deep liquidity. Susquehanna International Group (SIG), which handles more than a trillion dollars in ETF trades annually, established Kalshi’s first dedicated event contracts desk in April 2024. ​​Market makers ensure instant execution and higher limits, essential for attracting professional money.

Kalshi’s Market Maker Program has since expanded to multiple firms providing 24/7 liquidity across sports, economic, and political events. Polymarket runs parallel programs that reward liquidity providers.

Yet both platforms have far to go before reaching institutional scale. Traditional derivatives like Brent Crude Futures capture geopolitical risk through billions in daily turnover. Prediction markets excel at retail engagement, and while Polymarket contracts now appear on CNBC, this growing visibility isn’t the same as sector-wide institutional participation.

Predictable pushback

Polymarket’s international user base does not directly compete with US sportsbooks. That may change once the QCEX acquisition enables domestic operations, but for now the regulatory pressure is concentrated on Kalshi, and the reason is sports. Prediction markets in elections, economics, or cultural events drew little attention. No operator had any interest in pricing up whether Taylor Swift gets engaged this year.

Sports now dominate Kalshi’s core business, averaging over 65% of trading volume since March. With the Premier League underway and the NFL season starting, these volumes will likely increase. Bettors are migrating for better prices, lower fees, and higher limits without fear of being restricted. Kalshi also benefits from operating in states where sportsbooks remain prohibited, including California and Texas, and CFTC rules allow 18-year-olds to participate compared to 21+ in most sports betting states.

Critics argue that Kalshi is offering what amounts to sports betting with no tax or licensing obligations. State gaming regulators have responded with cease-and-desist orders, investigations, and lawsuits targeting “sports event contracts”. Federal judges have largely blocked these enforcement attempts, ruling that CFTC-regulated derivatives supersede state gaming laws.

After speculation over whether traditional operators would enter the space, FanDuel this week announced a joint venture with derivatives giant CME Group to launch regulated event-based financial contracts. The products will let FanDuel users place ‘yes or no’ bets on equity indices, commodities, crypto, and key economic indicators, with no mention of sports. The launch is slated for later this year, and attention will now shift to DraftKings to see if it follows suit.

AI engagement boost

AI is beginning to shape how prediction markets are used and distributed. Both platforms have partnered with xAI, and Polymarket has been coined “the official prediction market of X”. On Polymarket, users can click ‘generate market context’ for instant AI analysis. This feature provides market history, key drivers, and potential catalysts that might move prices, making users more confident to trade.

On X, users can tag @askpolymarket or @grok to receive live probabilities and analysis. Market odds now appear directly in feeds alongside Fed policy debates or breaking news, exposing prediction markets to X’s 500+ million users. These integrations create a powerful distribution channel, turning news cycles into trading opportunities. Kalshi’s xAI partnership is expected to follow a similar path.

A long-term compliment

For all their momentum, prediction markets remain bound by binary yes/no contracts. Recent filings suggest Kalshi plans to introduce prop markets and point spreads, but they cannot replicate high-margin products such as same-game parlays or accumulators, nor can they match the bonus-driven engagement or casino content that underpins sportsbook economics.

Where prediction markets excel is customer acquisition. Their simple structure and brokerage integrations create an entry point for millions who would never download a gambling app. They also attract sharp bettors seeking better liquidity and bigger limits, expanding the addressable market in ways sportsbooks never could.

If sports remain the core business, prediction markets will capture share in straightforward betting markets while providing price discovery for operators and introducing new users to wagering. When these users eventually seek parlays, bonuses and casino content, traditional operators stand ready to serve them.

This reinforces our investment thesis: as the market expands, differentiation becomes critical. Operators need broader products, smoother experiences, and less friction at every step. We back the infrastructure that enables this. Prediction markets are undeniably competition, but they also widen the funnel, creating opportunities for wagering operators and technology suppliers prepared to capture these new users as their demands grow more sophisticated.

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 +3,597% (annualised at 83%), as at 31 July 2025, assuming the reinvestment of all distributions.

In a statement sent to iGB on Friday, Esportes Gaming Brasil said its new LOTTU brand incorporated a number of new features, including interactive tools, real-time promotions and dynamic layouts tailored to different bettor profiles.

The brand is powered by a new in-house platform, built to deliver a smoother user experience and greater adaptability.

LOTTU has in-built responsible gambling functions, including tools to identify risky betting behaviours and direct users to specialised support channels.

With its LOTTU launch, Esportes Gaming Brasil has now reached the maximum of three brands permitted under its licence by the Secretariat of Prizes and Bets (SPA).

The operator is already active with its Esportes da Sorte and Onabet brands, both authorised earlier this year.

Darwin Henrique da Silva Filho, Esportes Gaming Brasil Group CEO, said he expects LOTTU to resonate with more experienced bettors in Brazil, thanks to its enhanced personalisation capabilities.

“LOTTU reflects everything we’ve learned in recent years, but with a real leap in performance and usability,” Darwin explains.

“It is a platform built from the ground up, with a focus on speed, real-time promotions and navigation tailored to different bettor profiles.”

Esportes Gaming Brasil also bolstering its personnel

Alongside its new brand, Esportes Gaming Brasil has also taken steps to strengthen its executive team.

Ana Carolina Luna Maçães was brought in as the company’s new head of compliance, while Rita Cunha was hired as chief growth officer.

Additionally, Hugo Baungartner was appointed as Esportes Gaming Brasil’s new chief business officer and executive director of institutional relations and strategic partnerships in May.

In an interview with iGB at the time, Baungartner said his new role will involve him representing the company before key industry stakeholders in Brazil, such as the SPA and Central Bank.

“Brazil’s current market environment demands prepared and responsible players and Esportes Gaming Brasil is one of the leading names shaping this new landscape,” Baungartner said. “The group is clearly in a phase of consolidation and expansion.”

“We moved to Leeds sometime in 2010 and that was the one thing that, without a doubt, transformed the company,” says former SBG CTO Andy Burton. “I said it had to be no more than 10 minutes from the train station as we really wanted to be able to tap into that talent pool of people who could commute. So we moved into our first office in Leeds at Wellington Place.” 

Burton recalls a conversation he had at the time with SBG CEO Richard Flint about bringing platform development in-house. OpenBet was powering both the back-end and front-end of the SBG offering, but Burton says he knew early on that they needed to take control of the product’s front-end.  

“We didn’t have any people that could do that at that point because the tech team really was a bunch of infrastructure-type people and service management. There wasn’t any development capability at that point. It was all outsourced,” he recalls.  

Sky Bet taps Orange’s development team 

Burton was SBG’s technical director during the period. Upon moving the 150-strong SBG team to Leeds, he tapped into product specialists he had worked with at French mobile provider Orange between 2004 and 2008.  

“[We started with] half a dozen really great technologists, engineers, architects et cetera. It was really small scale when we got started. We didn’t call them product owners at the time, but business owners,” he explains. 

“At Orange they’d done a lot of web development and mobile development and I had managed that team. The ethos was always ‘we don’t need loads and loads of people, we just need really good people and let them get on with it.’  

“We didn’t hire anybody from a betting and gaming background. [We knew] frankly the smart people would learn from working really closely with people in trading or gaming operations.” 

In those initial stages, Burton chose to focus on building a scalable in-house platform for SBG’s Super 6 prediction game over the core gaming product. Super 6, a first-of-its-kind free-to-play prediction game, supercharged SBG to success after becoming hugely popular thanks to its tie-in with Sky Sports.  

“Every Saturday a few tweaks [were made to Super 6] and a few more features [were added]. The business owners really understood the value of how important that was, so we went from there,” Burton says.  

The next step was shifting the core Sky Vegas and betting products onto an in-house platform. Burton believes SBG was the first operator to completely own its front-end. 

Spotify tribes model and maintaining agility  

Burton cites Conor Grant as an integral player in the shift to an in-house front-end, coming into the business and understanding the value of owning its front-end. Grant was one of very few to have joined the business in its early days with industry experience. In 2010 he was hired as SBG head of sportsbook product management after spending three years as head of online for Boyle Sports.  

“We didn’t see ourselves as a sports betting or a gaming company. We saw ourselves as a technology company,” Grant tells iGB. “That allowed us to appeal to technologists and we were bringing in some of the best that the north of England could offer.”  

With that tech-first culture came ways of working borrowed from pioneering companies like Spotify. Grant cites the Spotify tribes model as a core principle for the business’ success. The approach sought to empower staff across the organisation, from product to marketing and beyond, helping them remain agile through extensive growth while carrying out thousands of releases a year. Grant reveals Sky Bet made around 30,000 releases in 2020.  

Another huge asset for SBG was the £800 million acquisition by private equity powerhouse CVC Capital Partners in 2014, which helped fund the expansion of back-end and product teams.  

While these elements powered SBG’s initial growth phase, Burton believes SBG’s ability to pivot and lead in certain areas helped maintain continued gains. One such area was responsible gambling. “To be part of Sky we had to maintain that reputation of the Sky brand,” he says.  

By the time SBG was sold to Stars Group, it had scaled up its tech team to about 800 people, over a nine-year period.  

Replicating the Sky Bet model 

Today Sky Bet is lauded as a blueprint for success across the sector. When the US opened its doors to online sports betting in 2018, the phrase “Sky Bet model” was widely uttered by execs and M&A strategists as many sought to imitate the operator’s deep-rooted integration with Sky Sports and its lasting legacy in the UK sports and gambling sectors.

In 2019 Fox Bet even launched a Super 6-style prediction offering to drive customer acquisition efforts in the US.

But no one was able to successfully replicate Sky Bet’s media strategy across the pond and brands like Fox Bet and Barstool Sports fell flat, failing to engage the core audience of sports lovers.  

Meanwhile in the UK, a much more mature and product-focused market, the onus for SBG’s peers has been on copying SBG’s unique technical strategy, which many agree was the force behind its dominance in the market.  

In June, reports that Flutter was putting over 200 roles at risk across its UK operations emerged. Racing Post reported many of the redundancies would come from Flutter’s tech and product team at its Wellington Place headquarters in Leeds, many of which were brought over from Sky Bet when Flutter bought the business in 2020.  

The decision follows its migration of SBG onto the Flutter Edge central platform, marking the end of an era for SBG’s legacy platform.  

From SBG to FBG: Fanatics leveraging Leeds’ talent pool 

But as they say, “one man’s loss is another’s gain” and a host of competing operators have reached out to these ex-SBG and Flutter folk to offer them roles elsewhere. Grant is among those leveraging Flutter’s outgoing technologists as he seeks to expand his 40-strong team at US-facing betting and casino operator Fanatic’s tech hub in Leeds. 

Fanatics (FBG) is operated on a fully remote basis, but it maintains a number of core functions at its Leeds base. Grant, who acts as president of gaming for FBG, says the office is home to part of the trading business as well as casino, operations and wider technical staffers. Plans to scale the team significantly are currently under discussion. It is looking to increase its current workforce in Leeds by 10% and move into new office space at Richmond House.  

“I know the market particularly well. There is a huge amount of talent in this area, in the north of England, with specific sector knowledge. My experience of technologists is they want to be working in fast-paced environments where they’re constantly releasing, being intellectually challenged and stimulated, and we tick those boxes by some distance in the way we operate. We’re a very lean organisation,” Grant says. 

“A number of us think this is a really good strategy for us to build and develop at scale.” 

Sky Bet’s Leeds legacy

He agrees Sky Bet built a foundation for sector talent in the city, but he acknowledges the rich history of digital transformation predating SBG in Leeds, including Orange and part of the NHS’ digital business.  

“Tom Reardon, the ex-chief executive of Leeds City Council was really instrumental in trying to attract businesses to Leeds, but Sky Bet played a big role in that because we were excellent at raising the profile of the city,” Grant added. “A lot of the great people who came to Sky Bet went and then spread their wings.”

SBG certainly left its mark on Leeds and key personnel moved on to lead tech teams at Evoke. Former SBG head of technology Paul McCormick is Flutter’s UK&I CTO today, while Rik Barker, ex-gaming director and then CTO for SBG, today is group CITO across Evoke’s portfolio of brands. Another group of tech specialists from SBG started cloud digital transformation consultancy Infinity Works, which was acquired by Accenture in 2021.  

“It’s gone full circle,” Burton concludes. “[Grant] was part of that cycle the first time around, where we hired loads of great tech people in Leeds and they’re thinking there’s an opportunity now with loads of people leaving Flutter, so let’s hire them.” 

In a letter dated 4 August, the GCG said this was part of a calculated move to protect Ghana’s rapidly evolving gaming industry, particularly from violations like money laundering, underage gambling and any other fraudulent activities. 

“This policy will support responsible gaming practices,” acting Gaming Commissioner Emmanuel Siisi Quainoo said in the letter.

“By linking participation to verified biometric identities, operators will be able to track player behaviour, enforce betting limits and implement exclusion frameworks for vulnerable or self-excluded individuals.” 

Under Legislative Instrument (L.I.) 2111, Ghana’s national ID card is now the only form of accepted identity for gaming online. Every licensed operator must integrate their systems directly with the National Identification Agency’s database. Alternative IDs are not accepted. 

Operators will be expected to authenticate customers through fingerprint or facial recognition. This authentication is required before any form of wager is made and once again before winnings are withdrawn. Operators have been given 30 days to fully implement the new requirements.  

Ghana GCG gives 30-day implementation order 

All licensed firms (betting shops, casinos, online platforms) have been asked to submit their integration plans to the NIA within 14 days. Full deployment of the biometrics process is required 30 days from the date of the original letter.  

Those who do not comply with the new directives run the risk of suspension or their licence not being renewed.  

In the letter to operators, the commission was clear and firm in its move. It acknowledged that while implementation could slow betting operations for a while, the move will help establish that a fair and accountable gaming industry in Ghana is non-negotiable. 

“Compliance with this directive is being actively monitored and will form part of each operator’s operational audit,” the letter added. 

“We trust that all operators will comply fully with this directive and contribute meaningfully to raising industry standards in line with international best practices and national development imperatives.” 

The incident took place in the early hours of 16 August. Bragg said it took immediate steps to mitigate any potential impact including enlisting the support of cybersecurity experts to deal with the matter.

According to Bragg, preliminary investigations have found that the data breach was limited to the internal computer environment. It also said there is no evidence to suggest that personal information was affected.

Bragg also maintained the cybersecurity incident had no impact on its ability to operate as normal. In addition, the provider said it has not been restricted from accessing any data that was subject to the breach.

“We are committed to data safety,” Bragg said in a short statement. “We’re taking the matter very seriously and ask customers and partners for their patience as we seek to remediate the situation.”

Bragg did not share any further details of the incident but said it would update the market with any new developments.

Player data breaches across the sector

Bragg joins a number of other gambling companies to have been targeted by data breaches in recent months. In July, Flutter Entertainment launched an internal investigation after customer data was leaked across its UK Paddy Power and Betfair products.

A “significant part” of Flutter’s UK customer base across Paddy Power and Betfair were affected. This included user names, email addresses and first lines of home addresses among the information taken.

Questions were also raised over Merkur Entertainment after a serious player data breach was discovered by an ethical hacker across its gambling sites in Germany.

On 15 March Lilith Wittmann published an exposé on a player data security breach she had discovered across a number of Merkur Group’s B2C sites.

Wittmann said she accessed sensitive player data through a GraphQL query, including banking details and sign-up information. This data belonged to those holding accounts across Merkur’s Slotmagie, Crazybuzzer and Merkurbets sites.

A spokesperson said the company had taken swift action and had collaborated with top cybersecurity experts to further harden its defences, “to ensure even greater protection for the players”.

Legal experts warned the breach could have wider consequences for the company from the German gambling regulator.

Higher costs offset revenue growth in H1

Bragg’s incident took place just a few days after it published its financial results for the first half of 2025. These revealed a 6% year-on-year increase in group revenue to €51.6 million ($60.4 million).

Bragg picked out several factors that contributed to growth in H1. These include rolling out new content with Fanatics in New York, New Jersey and Connecticut, as well as agreeing an exclusive content development agreement with Hard Rock Digital. In addition, it built on its position in the newly regulated Brazilian iGaming market through a link-up with RapidPlay.

Bragg lowers FY guidance after mixed H1

Adjusted EBITDA was able to increase by 7.1% to 7.5 million for the half. However, this did not stop Bragg reducing its full-year guidance.

Previously, it anticipated double-digit growth in revenue and adjusted EBITDA.

Now, Bragg said the impact of higher gaming taxes and market softness in the Netherlands and headwinds in Brazil, as well as broader market conditions impacted key regulated markets.

As such, FY revenue will hit between €106 million and €108.5 million, down from €117 million to €123.0 million. In addition, adjusted EBITDA guidance was lowered from €19 million to €21.5 million to €16.5 million to €18.5 million.

“We are actively implementing and seeking new opportunities in the crypto space,” chief executive Neal Menashe told analysts during Super Group’s Q2 earnings call on Thursday.

“These initiatives aim to position us for long-term success as alternative payment methods and digital asset frameworks become more integrated into the regulated gaming ecosystem.”

The Betway operator described Africa as vital to its strategy. In Q2, Africa and the Middle East generated almost 40% of the NYSE-listed group’s total revenue, with the market rising 38.8% year-on-year to $229 million.

Menashe stressed the importance of technology investment across the region to support its rapid growth. As part of this effort, Menashe said the operator was looking to introduce crypto payments in more African markets, to offset high banking costs.

How is crypto boosting Super Group’s performance in Africa?

African businesses often face higher processing fees than other regions. Settlement delays also add hidden costs.

“In the African side of our business, we have a banking issue there,” Menashe said. “I think crypto and coins can make a huge difference there because, remember, banking is a really big cost in Africa, especially for us onboarding our customers and then payments across the continent. So, for us, I think crypto then also brings a different customer.”

He noted regulation across the nation supported these crypto ambitions. Menashe also added that crypto expansion could attract new customers.

“It’s a different kind of customer, again, a different genre, in the same way that in the casinos, we have different genres of casino. Crypto is a different kind of customer. So that helps us, and that’s what we are actively looking at,” he told analysts.

“That’s our great long-term play, and I think aligns with our strategy and especially on the processing side, if we can do something clever there. We’ve got some ideas on that effectively that will bring pure profit to the bottom line.”

Super Group said its technology focus, crypto expansion and Jackpot City rollout will support long-term success in Africa.

It expects alternative payment methods and digital assets to integrate further into regulated gaming ecosystems.

While expanding in Africa, Super Group recently announced it will be exiting the US due to revenue costs. North America, including Canada, posted a record quarter with $199 million in Q2 revenue. The US exit has no public date but is expected to cost a one-off amount of $30–$40 million.

Menashe said during the call that the group was looking for a buyer for its US player database.

Super Group raised guidance following strong Q2

Super Group’s revenue increased by 30% year-on-year to $579.4 million during Q2. 

It said in an earnings update on Thursday that growth was powered by increased activity in Africa, Europe and North America markets and had lead to record quarterly revenue for Super Group.

However, the figures were partially offset by declines across the LatAm, Middle East and Asia-Pacific markets.

Monthly active customers for Super Group increased by 21% to 5.5 million, compared to 4.5 million in Q2 2024, marking the fifth consecutive quarter of monthly active customer growth.

Profit before tax, meanwhile, amounted to $38.8 million.

Speaking to iGB in July, Vella said the team was “executing on a phased rollout [which] follows a planned sequence that allows us to ensure a seamless transition, rigorous testing, strong confidence in meeting regulatory obligations and continued focus on optimising the player experience”.

In mid-July, LeoVegas launched its new in-house sportsbook in Denmark, making it the first “core” market where players now have access to the new proprietary betting product.

But, back in February, Bill Hornbuckle, CEO for LeoVegas parent MGM Resorts, told analysts the new platform would launch in the operator’s core markets from that month.

At the time, Hornbuckle said the platform would roll out into additional markets in Q2 and the full integration of these assets was expected to complete by the end of H1.

Additionally, Kambi announced an extension of its long-running sportsbook partnership with LeoVegas until the end of 2027. This extended deal includes a new agreement for Kambi’s Odds Feed+ solution, which will be offered beyond 2027.

Both Hornbuckle’s comments and Kambi’s extended deal highlighted potential delays in the Tipico platform integration, but Vella insists an integration of this scale presents “complexities” and LeoVegas remains confident in its plans.

“This phased approach allows us to learn and adapt as we go,” he says.

LeoVegas acquired Tipico’s US betting platform in June last year for an undisclosed amount. The deal signalled the final piece of Hornbuckle’s plans for LeoVegas, by providing it with an in-house betting platform to differentiate it and give it full control of the product.

As part of the deal LeoVegas also brought on board Tipico’s management, technology and trading teams across the US, Colombia and Europe.

According to Vella, retaining that talent has ensured the integration has been led by those with the appropriate expertise, to ensure a smooth process.

“The focus on people and culture has really supported us to maintain focus when navigating any technical complexities of the integration to deliver a seamless migration and outstanding sports betting experience,” Vella says.

“We are ready to move forward with confidence and pace.”

Why has LeoVegas brought its betting platform in-house?

LeoVegas plans to operate its proprietary sportsbook across all its global markets and brands, excluding those exclusive to the BetMGM joint venture between MGM and Entain.

This transition to a fully in-house tech stack is a core pillar in LeoVegas’ strategy. It built its proprietary Rhine iCasino platform in 2015, which assisted the operator in gaining traction across Europe.

LeoVegas aims to mirror that success with its Tipico sportsbook integration.

Vella says Tipico was chosen because it provided a clean slate with no legacy technology constraints, and the opportunity to build a completely proprietary product with flexibility for different markets.

“Equally important, it offered a team of world-class sports betting professionals, complementing our existing gaming expertise,” Vella continues. “This combination of best-in-class technology and the right people is what truly set Tipico’s platform apart.

“Bringing sports betting tech in-house will give us a clear edge when tailoring a unique sports betting product to the player preferences in local markets as well as adapting to other market needs faster.”

MGM support crucial for LeoVegas betting platform integration

Vella says the help of MGM has “undoubtedly” aided the integration, which he believes will make sports betting a part of LeoVegas’ DNA moving forward.

“The relationship we have with MGM, based on aligned strategies and shared ambitions, has been instrumental to the successful acquisition of the Tipico platform,” Vella explains.

“This partnership has allowed us to integrate and roll out our new Tier 1 proprietary sports betting product. [It’s] an exciting and important step on our journey towards creating the world’s greatest iGaming experience.”

The new platform will provide players with an enhanced betting experience, says Vella, powered by a faster product and curated UX, as well as a new onboarding flow aiming to display all of the exclusive features.

These features include instant-rewarding missions and an improved cash-out feature with the addition of partial cash-out, as well as an enhanced bet builder product.

Vella also believes the integration will provide huge benefits to localisation, to support recent entries into Germany and the Netherlands in recent years.

“[This expansion] naturally presents unique challenges with the diverse regulatory requirements, cultural nuances and player preferences to cater to,” Vella adds.

“Owning our own tech is a game-changer as it gives us a strong edge in quickly adapting to multiple languages, applicable regulations, tailoring content to local preferences and supporting key local payment methods. This level of flexibility is simply not possible with a third-party solution.”

Kambi extension makes sense for business continuity

Although the Kambi extension suggested delays in the integration process, Vella says the deal was instead ” a natural part of our strategy”. This, he says, is to ensure business continuity and allow players to continue to enjoy the sports betting experience provided by Kambi.

“In parallel we continue our planned rollout and integration of our proprietary sports betting product, which remains on schedule” he adds.

“The launch of our proprietary sports betting product is a pivotal moment and critical enabler of our growth plans.

“It gives us a significant competitive advantage and allows us to pursue our growth ambitions with confidence.”

If it’s emotional, it’s essentially an appeasement to people that want gambling reined in and the vulnerable (and non-) to be protected to the ultimate degree.  

Of course, it could be both emotional and logical, they’re not exclusive paths. But it’s not, or this would be a really short article, and it’s not. 

I’ve spoken in the past about how having too many middle-class voices in the media, on the regulatory side, and within the industry’s critics (and arguably within the industry itself) means there is a disconnect between well-intentioned player protection and real-world player protection.  

People who have never experienced crushing and inescapable poverty have generally not been in a genuinely hopeless situation, so how can they truly understand what a player is going through and why decisions are made? 

UK gambling credit card ban a ‘partial’ success

I had in mind that a credit card ban was the ultimate “middle-class speaking down to working-class gamblers” protection. In Europe, my home market of the UK was the first to bring in a ban back in 2020, and the Ontario-based Greo Evidence Insights has since commissioned an analysis of the ban’s implementation and efficacy. 

That analysis, done by the National Centre for Social Research (NatCen), asked whether the ban on cards created friction for players gambling with borrowed money (and we will come back to this idea later, certainly). Its findings showed that – as defined here in Greo’s own summation – it was a partial success. A little like grenade-proof underpants, you might say.  

Implementation got a big green tick, but “the increased friction imposed by the credit card ban did not always result in changed patterns of gambling”. That the study’s period coincided with Covid 19 probably didn’t help the figures much, either, but they worked with a perfectly solid sample size and made every effort to provide a meaningful report.  

Perhaps most interesting though, combined with the previous quote, is this: “Overall, the ban was perceived to be a positive change by people who gamble; friends and family affected by gambling; and gambling treatment/support providers.” 

Perception of credit card bans

A credit card ban certainly appeals when it comes to perception and profile then. And other European countries have followed suit: the Netherlands has been trying to push a ban through (and given how regulation there has been, I would expect this to happen), Ireland has done much the same, and several other countries are looking at links between credit card betting and problem gambling behaviours.  

Sweden, which is no stranger to over-regulation and driving players offshore, proposed expanding its current credit card betting ban in June this year.  

Swedish finance minister Niklas Wykman said bluntly that players “simply should not bet with borrowed money”. Right, because a credit card is the only way that this can happen. 

If you remove credit cards from the picture, you remove a relatively easy way to monitor source of funds, and players then potentially move to more cloak-and-dagger methods of moving funds into their gambling wallets.  

So in terms of player protection, a credit card ban might be shooting the player in the foot – then reloading the gun and handing it back to them to see if they fancy shooting the other foot, too. 

As industry expert Sarah Ramanauskas notes: “[NatCen] found something really interesting: for people who weren’t struggling with gambling, the ban was fine. They just stopped using credit cards, no issue. 

“But for those experiencing moderate or high-risk gambling problems, the behaviour didn’t really change. They still borrowed money and still found ways to fund gambling through credit, just via different methods. So something meant to protect people wasn’t really protecting those most at risk. In fact, it might have made things worse, pushing people towards payday loans or unregulated borrowing instead of monitored Visa or Mastercard transactions.” 

Other forms of borrowing for gambling 

Alternative borrowing paths can be problematic – and outside any mechanisms that exist currently to try and monitor player behaviours.  

“Ultimately, people who are desperate to win back the money they’ve lost will do anything to try. That’s what takes up all their mental energy and, if you ban credit cards, people will simply turn to other forms of borrowing that regulators can’t see,” Ramanauskas adds. 

“At least with credit cards, FCA processes exist to monitor and protect vulnerable consumers. Payday lenders don’t operate with the same oversight and they don’t care about exploiting vulnerable customers.” 

And banks and traditional lenders – thanks, it seems, largely to GamCare’s work – are becoming more active in looking at what we’re doing with our money, it seems. 

Graeme Cumming, vulnerable customers strategy manager at Santander, says: “At Santander, we believe that the bank, although not responsible, does have a part to play in gambling harm prevention. We have built a suite of interventions, including letters and text messages, to provide timely signposting to support for customers at risk of financial detriment due to their gambling.” 

How responsible are UK credit cards users? 

According to the UK Finance January 2025 report, the UK has 53 million credit card accounts – that’s more than one per adult – and, of those, 36.5 million had an outstanding balance after month’s end. Which means that 17 million card accounts didn’t have any balance rolling over, they were cleared in full at the end of the month. That’s pretty decent in a cost-of-living apocalypse.

Miraculous, even. And it suggests an awful lot of people use credit responsibly – so why are credit cards used for gambling?

Andrew Tottenham, managing director for consultancy Tottenham & Co, suggests it might be a lot to do with convenience, certainly initially, but notes that as a payments device it is uniquely pretty poor for gambling purposes. He tells me: “[Credit cards were] never designed as a two-way transactional medium. 

“It doesn’t necessarily do what it’s intended to do. That’s my thinking. Is it a good idea that people gamble with money they don’t have? No, it’s not a good idea. Of course it’s not. Does stopping credit cards stop people from gambling with money they don’t have? No.

“Does it stop people with a problem with gambling? Gambling with money they don’t have doesn’t stop them. No, absolutely not.” 

Not a two-way street 

So it’s inefficient – because of that two-way street thing, credit cards don’t work like debit cards. In many, many markets, a transaction has to be refunded to its originating source. You pay cash, you get cash refunded; pay with a card, a refund has to be made to that card.

But a gambling transaction isn’t a refund, and it has no good earthly reason to be put back on the card, so it becomes a pain for player and operator. And anything that’s not simple is often expensive.

This, however, is changing, as Jonathan Michaels, principal of Michaels Strategies, explained to us. “It’s shifting. Originally in the US, you had to withdraw using the same payment method to prevent fraud and money laundering. Now, operators try to find practical ways to handle this. Players who deposit using a credit card can often withdraw using another method if needed,” he says.

Credit card acceptance rates

Credit cards also have much lower acceptance rates, as Jonathan explains. His expertise generally involves the US, but the same principles can be applied almost globally.

“There are a couple of key issues with credit cards in gambling. First, acceptance rates are much lower than debit cards. Debit card acceptance in the US is about 95%, while credit card acceptance is around 50%-60%, because many banks simply refuse gambling transactions using credit,” Michaels notes.

“In the US, gambling transactions have the Merchant Category Code 7801. When you try to deposit with a credit card, the bank sees it’s a gambling transaction and can approve or decline it. Because gambling is considered high-risk, their risk triggers are more sensitive than for, say, buying gas or groceries. 

“Another issue is cash advance fees. Using a credit card to deposit for gambling typically triggers a cash advance fee, which can be significant – sometimes $20-$30 per transaction. Many consumers aren’t aware of this.” 

This fee brings us to one of the reasons the industry often cheekily (and quietly) doesn’t mind a credit card ban so much: chargebacks. 

Two categories (identifying chargebacks)

If you’re not familiar with chargebacks – and honestly, I wasn’t – Nick Imperillo, GeoComply’s risk services manager, explains the two types perfectly and highlights the fact that some players might be operating from a more… cynical starting point with a chargeback.

“When we think about chargebacks in the gaming space, there are actually playbooks out there – sometimes on the dark web, but honestly, even on places like Reddit – where you can find guides on how to ‘win’ your chargeback if you decide to dispute a charge with an operator,” says Imperillo.

“Chargebacks generally fall into two categories. The first is first-party fraud, where the legitimate cardholder themselves makes a dispute with the merchant – whether it’s gaming, Netflix, Uber Eats, or whatever it might be. Then there’s third-party fraud, where you didn’t actually make the dispute, but someone else used your card details and you end up reaching out to your bank for protection.”

First party fraud is often buyer’s remorse

He adds: “What we hear from our partners – and what we see in our data – is that first-party fraud, which is often just buyer’s remorse, actually accounts for about 75% of chargebacks in the online gaming space. The people initiating these disputes are often verified users who have completed KYC, and due diligence has already been done on their accounts.

“Yet they are the ones initiating these disputes with their banks, which the operators then have to fight. And it’s absolutely a part of everyday operations. Before GeoComply, I used to run a fraud and AML team for one of the major North American sportsbooks, and chargebacks were one of the key metrics we used to determine the health of our risk management programme.

“Even if I didn’t have a chargeback problem, it was still a looming requirement and an important signal for how well I was evaluating risk on individual accounts.” 

Chargebacks aren’t ‘catastrophic’

Chargebacks are sometimes talked about as a significant issue (and I don’t doubt for one moment they’re a pain), but in the US, Michaels suggests that credit card payments make up only about 5%-10% of the transaction volume.

It’s not insignificant, but would losing that really cause pain? “They’re a notable issue but not catastrophic. Generally, chargebacks run at about 0.6%-0.7% of transactions, which is lower than most ecommerce businesses but still material. Chargebacks can occur when consumers see the cash advance fee or don’t recognise a transaction and claim it wasn’t them,” Michaels says.

Michaels also makes a great point – would operators really lose that 5%-10% of business if they couldn’t deposit with a credit card?

“Most gambling operators offer a wide range of deposit options – cards, open banking, PayPal, Venmo and more – to meet players where they are. Would cutting off credit cards materially impact their business? Maybe, but it might not be the worst thing operationally,” he explains.

“Several states in the US – Massachusetts, Iowa, Tennessee, Maine and Connecticut – already restrict credit card deposits for gambling. Operators may eventually block credit cards nationwide just to simplify operations.” 

Are players protected through credit card bans? 

So we come back to player protection when we wonder about the viability and efficacy of a credit card ban.  Sarah Ramanauskas’ point about players then using non-traceable funding sources is highly relevant, as it seems to be the main argument for not banning credit cards.

She elaborates: “[A ban] also depends on what a credit card represents to someone. For some, a credit card isn’t really ‘credit’ because they pay it off each month without stress. For others, particularly those struggling financially, a credit card represents breathing space – an ability to buy necessities or keep going. When you’re living pay cheque to pay cheque, a credit card is very much money you don’t have and will need to pay interest on. 

“If you’re someone struggling financially and gambling, using a credit card feels like a temporary solution. To regulators, this is seen as bad, but for many people, it’s how they manage day-to-day pressures. The problem is, how do you tell the difference? How do you know, when looking at a gambler’s account, if they’re financially secure or if they’re hiding from the window cleaner because they can’t afford to pay him? That’s where well-designed affordability checks should come in.” 

Credit card use doesn’t always mean gambling problem

And Michaels reminded us of a study done when he worked for Sightline. “When I was at Sightline, we did a study in Nevada on payments as a tool to identify problematic gambling behaviour. About 95% of players showed no issues, while 1% were high-activity VIPs, and another 1% made many small deposits with high failure rates, indicating potential risk,” he notes.

“Payments data, including credit card usage, can be a useful tool to identify risky behaviour, but using a credit card does not automatically mean someone has a gambling problem.” You can read more about this study here, but ignore the hilariously hyperbolic headline.  

The last word (almost) 

The last word in this article – apart from mine – has to go to Charles Cohen, of the Department of Trust. I asked his thoughts on credit card bans and he said to look at some data. So we did. 

Now, you remember I said we would come back to people gambling on credit and credit being in many forms? Overdrafts are also – without question – a form of credit. We looked at a set of data gathered from 340 UK-licensed gambling sites covering sports betting, casino, bingo and poker.

It detailed over 74,000 deposits (not players, individual deposits), covering perhaps 10,000 players – however, don’t get that figure stuck in your head as the data covers six months, so players almost certainly deposited more than once. Some banks were also stripped out as they don’t give balance data and it’s all from the second half of 2024. 

So what did we learn? 96.4% of all gambling deposits were made from bank accounts that were in credit at the time of the transaction.

That’s a huge figure — surprisingly so given the ubiquity of overdraft agreements. Also, interestingly, the average deposit from a credit balance was £21.

The other 3.58% were minimally overdrawn, as Cohen explains: “Most were overdrawn by less than £100, and only 0.55% were overdrawn by more than £1,000. Interestingly, 1.3% were overdrawn between £100-£500, which is where most overdrafts typically sit.”  

Credit card bans don’t stop credit use for gambling

But… wait for it… “Here’s the key: the average deposit size is lower for people in overdraft than for those depositing from a credit balance. 

“The data here shows a simple truth: credit card bans do not stop people from using credit to gamble. 

“The world has moved on since credit card bans were introduced. Now you have non-traditional credit sources like Klarna, payday loans and soft credit, often unsecured and unregulated, that can be used for gambling just like a credit card. 

“Ironically, people may be in a stronger position if they gamble on a credit card because they can claw it back through a chargeback.” 

The (actual) last word – credit card versus overdraft

He sums it up succinctly: “The main beneficiaries of a credit card ban aren’t vulnerable customers, but gambling companies, as they no longer have to deal with costly chargebacks.” 

Sure, it can be argued a credit card and an overdraft are different things – but the point for bans already in place, and those looming, is to create friction for players and for this friction to make it unappealing to play with money they don’t have.  

Credit cards are just one of those potential avenues, one that you could argue is really only a cul-de-sac, and only that because of the convenience of availability with adults worldwide. If you want to stop people playing with money they don’t have, you’re going to have to look much further and wider to do that – but also remember that you’re removing an easily traceable, monitored and regulated form of payment.

Nonsense over common sense

As Sarah Ramanauskas says, the ban partly makes an operator’s life a little harder too, and hamstrings us from some player behaviour data: “Now, with the ban in place, operators have to trace the source of funds going into a player’s debit card. It complicates the process of understanding where the money is coming from, making it harder to monitor harmful behaviours.” 

The next time a credit card ban is mooted in a market, the industry might quietly cheer because it’s a headache removed, there is little to no evidence of players disappearing after a ban (other than to offshore casinos that take credit cards, but that’s another story) and, yay, no more chargebacks. 

To answer our initial question though: common sense or nonsense? I’m leaning strongly towards nonsense. It’s mostly performative, stops player data gathering that could be really useful and absolutely does not stop people gambling with money they don’t have.

It’s a thumbs down from me, Jeff. 

The proposed measures follow rising concerns about the social costs of online gambling. According to the Straits Times (headline: “Online gambling boom – and doom”), easy access to iGaming has led many Filipino families to “addiction and financial problems”.

Critics including some lawmakers want to abolish the industry outright. The Philippine Amusement and Gaming Corp opposes a ban, but it supports stricter rules around advertising. President Ferdinand Marcos Jr, who banned offshore gaming operations last July, is considering a sin tax on iGaming.

Establishing ‘standards and expectations’

“End-user” protections sought by the BSP include limiting the use of digital payment platforms for iGaming and capping daily fund transfers by bettors. The proposed new rules also call for stricter due diligence by operators.

To ensure “a safe, efficient and reliable retail payment system… it is imperative to ensure that digital payment services of payment service providers (PSPs) are not misused for activities that are socially harmful and detrimental to financial health”, according to a draft circular released by the BSP monetary board. “These regulations establish standards and expectations for PSPs in the provision of online gambling payment services as well as enhanced know-your-customer (KYC) measures.”

The new rules would require PSPs to secure bank permission to operate. Qualified applicants would have to:

• Demonstrate minimum capitalisation of PHP300 million ($5.29 million).
• Display robust management of anti-money laundering and counter terrorism financing (AML/CTF) risks and fraud prevention.
• Install a board-level committee on AML/CTF compliance.
• Submit reports “on a monthly or on-request basis” detailing total gambling-related transactions and iGaming partners, among other information.
• Limit play to six hours per day and impose a 24-hour cooling period in cases of “heavy usage”.
  

Banning at-risk groups and government personnel

The new rules would forbid PSPs from directing users to online gambling sites and bar certain groups from participating. They include people under 21 and university and college students, plus military and government workers and members of law enforcement. Those receiving welfare payments would also be on the no-play list.

Fintech Alliance Philippines, which counts major players like GCash and Maya among its members, says it will “fully support” the BSP’s efforts to address problem gambling and “the proliferation of illegal gaming sites and platforms”.

“We are united in our commitment to be part of the solution by working closely with regulators, elevating safeguards and protecting the welfare of Filipino consumers,” said founding chair Lito Villanueva in a statement.

Religious leader decries online gambling crisis

According to the Catholic Herald, the church has come out against what it considers an epidemic of online gambling harms, especially among the young and the poor.

Bishop Cardinal Pablo Virgilio David says iGaming has put a casino “in the living room, in the bedroom, in a child’s pocket”. In the post-POGO era, online gambling is “now victimising not foreigners, but our own people”.

“It is more lucrative than traditional casinos, promoted by paid celebrities [and] accessible to Filipinos of all age levels, totally unregulated. It is wrecking the lives of poor people who get addicted to it.”

David blasted Pagcor for its defence of the industry. “Nothing could be more absurd than a government agency wringing its hands over illegal offshore gambling sites when it has already legalised inland online gambling – fully, completely, brazenly.”

The Philippines Central Bank invites stakeholder comment through 25 July.

The launch follows LeoVegas Group’s acquisition of Tipico Group’s US sportsbook and online casino platforms last year.

When the deal was announced, LeoVegas Group’s parent company MGM Resorts International said it would allow LeoVegas Group to operate a purpose-built proprietary sportsbook across all international markets and brands, with the exception of those exclusive to the BetMGM joint venture with Entain.

Renewal with Kambi

Last week, LeoVegas extended its turnkey sportsbook deal with supplier Kambi, which raised questions about the migration of LeoVegas’ in-house platform. However, the agreement is set to expire at the end of 2027.

In February, MGM Resorts International CEO and President Bill Hornbuckle said LeoVegas’ in-house platform would be launching in its core markets in February, with the full integration of the sportsbook’s assets to be completed by the end of H1.

LeoVegas Group said the new sportsbook offers “a modern design, a faster interface, significant updates in live betting and an innovative bonus experience”.

The sportsbook will offer partial cash-out as well as a deep parlay functionality for bet builders. It is said to come with higher bet acceptance rates, easier bet placements, smoother navigation and search, as well as quicker loading times.

Mattias Wedar, incoming CEO of LeoVegas Group, said: “Denmark marks the first milestone in our international rollout plan, which is following its set schedule, to expand our sportsbook presence into more countries and brands while continuously enhancing its capabilities through leading proprietary products and technology.”

The rollout of an in-house sportsbook will be a key part of Wedar’s strategy. In June, LeoVegas founder Gustaf Hagman announced he would be stepping down as CEO after 14 years at the helm.  

Expekt’s Nordic presence

LeoVegas acquired Nordic-focused brand Expekt from Betclic Group in a deal worth €5 million ($6 million) in 2021. This was significantly less than the €125 million Betclic paid to purchase Expekt in 2009.

Expekt relaunched in the Danish market in 2023 following a 10-year absence, having relaunched in Sweden in 2022.

iGB understands “a significant part” of Flutter’s UK customer base across Paddy Power and Betfair were affected, with user names, email addresses and first lines of home addresses among the information taken.

The breached player data also included details of some recent activity on accounts and technical data such as device ID and IP address.

‘Significant’ number of players impacted by data breach

According to Flutter’s 2024 annual report, the operator overall has 4.2 million average monthly players in the UK and Ireland (UKI) across all Flutter brands.

Flutter said the incident has been contained and the accounts have not been suspended. A source close to Flutter said no customer passwords, ID documents or usable card data was taken. All affected players were informed about the breach by email.

It is understood that Flutter was not legally obliged to inform customers, due to the limited amount of player data breached, but felt it was the right course of action. Flutter also informed the Gambling Commission and Information Commissioner’s Office.

Investigation into data breach initiated

The investigation was initiated as soon as Flutter was informed of the player data breach.

A Flutter UKI spokesperson told iGB: “Immediately upon becoming aware of this incident, we informed relevant regulators and authorities and initiated a full investigation, supported by external IT security experts, to understand what happened and how we can better protect our networks and customers. The unauthorised access has been removed and the incident contained.”

Player data breaches across the sector

Player data breaches are not uncommon across the sector. Germany’s Merkur was impacted by a widespread player data breach across a number of its operator sites in February.

This was uncovered by an ethical hacker who found very sensitive information like banking details had been hacked and could be at risk.

Merkur assured players their information was unlikely to be accessed by others, but the German gambling regulator ordered the operator to harden its cybersecurity enforcements to prevent any further breaches.

In June, the British Horseracing Authority was hit by a cyberattack that led to a temporary closure of its London office.

The deal, which was last extended in 2023, includes a new agreement for Kambi’s Odds Feed+ solution, which will be offered beyond 2027. Kambi had likely been preparing to lose LeoVegas as a turnkey sportsbook client after the operator acquired Tipico’s US betting platform last June.

Tuesday’s announcement raises questions around the migration of LeoVegas’ in-house platform, which MGM CEO Bill Hornbuckle said would be launching in Leo’s “core markets” back in February.

Hornbuckle added the full integration of the sportsbook’s assets was to be completed by the end of H1.

At the time of the platform acquisition, LeoVegas parent company MGM said the agreement would provide it with a purpose-built proprietary sportsbook, to be launched across all its international markets and brands.

This excludes North America, where BetMGM is operated as a joint venture with Entain, which powers the product across the US and Canada.

Of the renewed deal, Kambi said it would run for an additional two years, “during which time LeoVegas will continue its migration to its proprietary sportsbook platform”.

When asked for comment, LeoVegas said the Tipico integration remains on track.

“The extension with Kambi is a natural part of our strategy to ensure business continuity while the integration of our proprietary Tier 1 sports betting product remains on schedule,” a LeoVegas spokesperson said.

Under the new deal with Kambi, LeoVegas’ brands, which include BetMGM and BetUK, will use Kambi’s full library of traded odds.

Kambi CEO Werner Becher voiced his excitement at extending the partnership with LeoVegas, which first began in 2016.

“While we look forward to another two years of turnkey provision, it speaks to the quality of our trading capabilities that LeoVegas also secured access to our Odds Feed+ solution, taking our partnership into a new phase,” Becher said.

Impact of deal renewal on Kambi

This renewed partnership will be a welcome move for Kambi, which has lost core clients like Penn Entertainment as a number of operators have moved onto in-house platforms.

Kambi’s Q1 revenue and net profit both declined year-on-year, with CEO Becher stating the company’s results were “far from the future level [we] aspired to”.

The supplier said at the time it was focusing on diversifying its offering and client base to help it return to growth.

In an analyst note dated June 2024, Norwegian investment bank ABG Sundal Collier said Kambi would likely not be impacted by the loss of its LeoVegas deal until after 2026, due to potential consensus revisions.

“We believe LeoVegas accounted for ~3% of Kambi’s revenue in 2023, but forecasts called for it to become a larger customer over time following MGM’s international efforts (e.g. with BetMGM UK). As such, the long-term earnings will likely take a hit,” the note said.

“However, we do not rule out the potential of MGM becoming a modular client; for example, we see BetBuilder as an attractive product for a company building an in-house sportsbook, as many big operators have out-sourced that product according to our research.”

Operator-supplier relationships are becoming more ‘flexible’

In a recent interview with iGB, Kambi SVP of Commercial Operations Jamie Mckittrick said the company is evolving to meet the growing demand for more flexible relationships between suppliers and operators.

“While our turnkey sportsbook remains our core offering, we have adapted to market changes by expanding our portfolio of sports betting products,” Mckittrick said. “This ensures we can deliver premium solutions tailored to operators of varying sizes, geographic footprints and strategies.

“The development of products such as Kambi’s Odds Feed+, which provides unrivalled quality and adaptability for operators requiring a premium odds service, is a prime example of this adaptation.”

Canadian Gaming Association CEO Paul Burns recently said of the Canadian market: “Because of the large unregulated iGaming market presence in Canada, no one’s had a monopoly for 25 years, and that’s the reality.” 

The same can be said for Europe’s remaining monopolies, including Veikkaus. Finland has operated a thriving grey market for the last five to 10 years, and Veikkaus has unsurprisingly struggled to keep up with unlicensed peers that have not had to face the same restrictions as the monopoly.  

Not only has the operator faced highly innovative competition, but new player protection measures implemented in a 2022 update of the Lotteries Act in Finland also resulted in Veikkaus’ revenue taking a hit in H1 2024.  

“The visible decline in the purchasing power of consumers has affected Veikkaus’ business,” Group Managing Director Olli Sarekoski said in its first half 2024 earnings report. “Our number of customers is still at a good level, but the amount of money played by customers is average.” Active players increased by 15,000 during the three-month period to 2.5 million. 

Some close to the Finnish iGaming sector have suggested the government pushed through its gambling reform last summer to revive the suffering monopoly business. And Veikkaus is broadly optimistic it can complete this turnaround successfully. Sarekoski admitted in the earnings report that the operator was aiming to take a leading position in the competitive market.  

Welcoming a new leader 

The overhaul commenced with the hiring of iGaming EVP Jarkko Nordlund in September 2023. Nordlund has an extensive background in consumer entertainment, having spent years leading and advising the Finnish arms of television, music and streaming services like MTV, Universal Music and Canal Plus. Nordlund was undoubtably brought on as Veikkaus’ secret weapon, to build out a sufficiently competitive iGaming business.  

“I have a long background in the entertainment industry,” he explains. “For me, this industry is part of the same entertainment experience and entertainment wallet [as TV, music and streaming services].”  

Nordlund’s entrance to the business initiated a much broader overhaul of both the iGaming arm’s operations and tech and product offering.

Veikkaus VP Sports Betting Andreas Reimblad joined Veikkaus from Kindred in July 2024, tasked with building an updated betting product, sitting on the OpenBet platform.  

New sportsbook to drive Veikkaus’ iGaming arm

OpenBet won a tender process initiated by Veikkaus in September 2023 to source a new platform and managed trading services provider. Prior to this Veikkaus had used SBTech’s betting technology, but after it was acquired by DraftKings in 2020, the operator said it would wind down its B2B operations, in March 2021.   

“Our current supplier DraftKings announced they were not continuing with their B2B element. The development of the product has been far from ideal, when we’ve seen other operators being very quick in developing their product and platforms,” Reimblad says.   

“We recognise we wouldn’t have succeeded if we’d remained the same. We have had to make tangible changes to provide a better experience for the end consumer, because we’re not competing for the international operators’ [acknowledgement], we’re competing for the customers.” 

Alongside a new betting platform, the operator has opted to integrate new PAM and CRM platforms, as well as new apps and website frontends, which will launch in the coming weeks. The scope of the product refresh is massive. And Nordlund says it is his personal mission to ensure Veikkaus succeeds in the open market.  

“Everyone is waiting for Veikkaus to fail,” he says. “The competition will be fierce when the market opens, so we must be very competitive. Our aim is to challenge the mentality of our current position, so we need to secure market leadership.” 

‘We are the market’ for local sports 

On the sports side, Reimblad insists there is much more than just a platform change powering Veikkaus’ sportsbook transformation. For a number of years the operator has had an in-house trading team to price local sports like ice hockey, floorball and Finland’s answers to baseball, pesäpallo.  

Properly integrating and utilising this team is a core goal for Reimblad. “A big reason why we’ve used OpenBet is that we wanted those self-trading capabilities, as we really see it as a unique possibility for us. We can create markets and a product that no one else in the market can, with the accuracy that we can.”  

Generating these in-house odds will be a core part of Veikkaus’ competitive advantage, Reimblad says.   

“For some of the international operators, Finland will be a quite small market overall. So, this is one element that we can really stand out on. It’s not many that have their own local trading team who are actually doing the odds compiling for the market. I would even state that we are the market in some of the local sports.” 

Historically, Reimblad says Veikkaus has operated a high-margin betting product, and to improve the consumer’s overall betting experience, his team has been working to increase the player playback rate. “It’s not a secret that monopolies come with a history of low paybacks, and it’s been one way for the international operators to take market share. We have now started to be even more aggressive.” 

Payback rate is the percentage a player gets back for every euro they bet. Veikkaus has been slowly increasing that rate to improve the overall offering and, Reimblad says, to improve the product’s perception. Profitability has improved since this target was set by Reimblad last year.  

Leveraging the historic Veikkaus brand 

Nordlund says the transformation really commenced in January of last year. Part of the process is deciding how to leverage Veikkaus’ legacy brand in Finland, which is synonymous with both lottery and physical slot machines. Nordlund is wary that although brand recognition among consumers is assured, he is worried Veikkaus’ monopoly past could tarnish its new product.  

“Our brand is super strong, it’s domestic and reliable. But then we have to also be more entertaining [than we have been]. The negative side of the coin is because it’s a state-owned monopoly, the consumer might believe we can’t offer competitive odds,” he admits. “We are most concentrating now to the consumer experience and making that better, and that will be then powered by the brand.” 

Speaking to iGB in September 2024, local lawyer Antti Koivula and ex-Veikkaus executive Jari Vähänen said they expected Veikkaus to benefit against independent operators from its vast brand exposure. After all, Veikkaus slot machines are even found in local supermarkets.  

Does Veikkaus have a competitive advantage?

One key question raised by stakeholders in response to the government’s draft gambling bill last summer was whether Veikkaus would maintain any competitive advantages to independent operators, particularly in leveraging its decades-old player database and cross-selling users onto the new product suite.  

When Sweden liberalised its online gambling market in 2019, the monopoly Svenska Spel’s new licensed business was granted access to its historical database, but under the condition that players had to opt in to receiving cross-sell messaging. Veikkaus has been operating iGaming for some years and so has already built up a player base that would not need to be cross-sold from its land-based or lottery players.  

Nordlund says it is not yet clear what the rules for Veikkaus will be on this, as the sector awaits the final gambling bill. This was widely expected to be approved by parliament ahead of the Scandinavian midsummer holiday. 

“The operators in Finland need more details on it, but it looks like everyone may be able bring our customer base with us and keep on operating with them,” Nordlund notes. “But how do we define what the customer base is? [Is it players that have been active] within half a year to a year? These type of operational details needs to be clarified.”  

Sourcing the right talent 

The final component to Veikkaus’ transformation is, of course, talent acquisition. Nordlund recently poached a former colleague of Reimblad, Fatemeh Daneshzadeh, ex-product excellence manager for Kindred. Daneshzadeh joined Veikkaus in April as VP of digital channels.    

Nordlund says that although he is looking to recruit further experienced industry folk, he is also looking at other entertainment sectors where the experience could mirror that of iGaming. “We have hand-picked international expertise [from the sector] to come to work for us. Then we are recruiting from Netflix, Bolt and those [kinds of] digital companies,” he says.   

The business will ultimately maintain a mix of legacy Veikkaus staffers and new talent, which will encompass all the best parts of the entertainment industry. 

For Reimblad, he says Kindred’s transition into an FDJ company after the operator was acquired by the French giant meant his time at the company had reached a natural end. He was looking for a new experience and, once he’d met Nordlund, he realised what a fantastic leader he was.  

“He puts a lot of challenges on you and pressure, but he’s a fantastic mentor and he has all these ideas about wanting me to have the freedom to execute things how I like. That was a big reason for me. It was [also] all about the timing,” he recalls.  

A Swede among Finns

As a Swede, joining a Finnish company was a challenge initially, but Nordlund insists the company is becoming broadly more international and this is a deliberate effort to entice industry expertise from hubs like Malta. The company language is now English, Nordlund explains. 

“I’ve found some really strong local candidates and also met a lot of Finnish people living abroad and working with other gaming companies that might want to move back in the future. I think people really see us as a strong operator in Finland,” Reimblad says.  

Nordlund expects the wholesome work-life balance culture in Finland will attract talent over to Veikkaus. He praises Helsinki for its good schools and insists it is an easy commute to and from the office.  

With the transformation at Veikkaus well and truly under way, the operator expects to return to growth by next year. “We need to be more exciting, more entertaining, [and offer a] better consumer experience,” Nordlund concludes. Reflecting on the competition, Reimblad points out that while Finland is only a small focus for many of the independent operators, for Veikkaus, this market is its entire revenue. With that in mind, it’s certainly got a good shot at taking the lead.  

Following the completion of the deals, which were agreed last year, Apollo said the two businesses will be integrated into a combined enterprise in the coming months. The deal brings together IGT’s gaming business and Everi’s casino technology and payments solutions.

The combined company, based in Las Vegas, will operate as IGT but keep the Everi brand in some markets. The new IGT business will include three units: Gaming, Digital and FinTech.

As previously announced, Hector Fernandez, the former chief executive of Aristocrat Gaming, is to become IGT CEO in Q4 2025. This follows the expiration of a customary non-compete period. Until Fernandez’s arrival, interim CEO Nick Khin will lead the organisation. He will later transition into the role of CEO of IGT’s Gaming business unit.

“This is a defining moment for our industry,” said Khin. “By uniting two leading organisations, we are building an enterprise with the scale, talent and technology to lead the future of gaming.

“With Apollo’s support, we are very well-positioned to deliver exceptional content across land-based and digital experiences, along with integrated financial solutions and casino management that enhance the player journey and drive value for our customers. I’m honoured to be part of this exciting chapter and to help shape the future of IGT.”

How the deal progressed

Apollo tabled offers for the two businesses last year when they were already in the process of merging. In February 2024, IGT announced plans to merge its Global Gaming and PlayDigital divisions with Everi.

Following the deal, IGT is now a lottery-only operation and will continue to trade under its new name, Brightstar Lottery.

Effective from now, Everi common stock has been delisted from the New York Stock Exchange. Everi stockholders are receiving $14.25 per share in cash, and International Game Technology PLC is receiving $4.05 billion of gross cash proceeds.

“Bringing together highly complementary businesses creates a more competitive, agile and well-capitalised platform built for long-term growth,” said Daniel Cohen, partner at Apollo.

“We are confident that IGT is well positioned to deliver differentiated content and capabilities that better serve customers across the globe. We look forward to working closely with Hector, Nick and the rest of the talented IGT team to lead the industry forward.”

Mark’s business Xgenia started out using AI to power game development, before pivoting to create “AIs building AIs”. The focus is providing the tools for clients to build their own artificial intelligence, train it and ultimately create something bespoke for themselves. 

Listen on Apple Podcasts

And for an early adopter he’s remarkably clear eyed on its potential, and skeptical of the wave of products described as revolutionising AI in gaming. The vast majority are just wrappers for ChatGPT, he points out. 

That’s not to say he doesn’t believe in the potential. “We’ve just discovered fire, and we’re still learning how to cook with it,” he says. 

Will he break down Ed’s skepticism towards AI in gaming? Can Robin fit a few more buzzwords in? Watch or listen to find out in the latest episode of Right to the Source! 

As confirmed by Turkish Minister of Interior Ali Yerlikaya, the raids were carried out over the past week. Some 423 suspects were detained as part of the operation, which spread across 52 provinces in Turkey.

In addition to illegal betting, the sweeping probe covered online fraud, child pornography, harassment and unauthorised access to computer systems. Some 145 people were formally arrested as part of the investigation, with 128 suspects placed under judicial supervision.

Among the assets seized by police were unlicensed firearms, hard drives, servers, mobile phones, bank cards and other digital evidence. The Chief Public Prosecutor’s Office partnered the Cyber ​​Crime Combat Department of the General Directorate of Security on the raids.

Citizens in Turkey defrauded

Setting out further details of the case, police said that people in Turkey were defrauded in various ways. These included scam ForEx investment partnerships and crypto investment consultancies, e-commerce fraud and fake gift card promotions.

According to police, the fraudsters collected bank accounts to be used in illegal betting and gambling. Those involved in the schemes provided infrastructure for illegal betting websites, acting as an intermediary in gambling and money transfer.

The criminals were also found to have gained “unfair profits” by accessing citizens’ mobile banking accounts, while police also discovered obscene child images.

“I congratulate our governors, our chief public prosecutors who coordinated the operations and our provincial police chiefs and hero police officers who carried out the operations,” Yerlikaya said.

“We continue our fight against crime and criminals with our virtual patrols.”

The in-depth report features exclusive insights from leading licensed operators including Betano, Sportingbet, EstrelaBet and Superbet, alongside commentary from influential stakeholders such as the National Association of Games and Lotteries (ANJL) and Loterj President Hazenclever Lopes Cançado. Their contributions provide a clear view of the regulatory, commercial and operational realities on the ground.

Supported by data and forecasts from H2 Gambling Capital, the report outlines the significant long-term potential of the Brazilian market, which is projected to hit BRL31 billion in online GGR by 2025, growing to BRL64 billion by 2030. It also examines the structural challenges that may impact growth, including ongoing illegal market activity, evolving KYC requirements and other complexities of regulation.

In addition to market sizing and regulatory context, the report places a strong focus on social responsibility, particularly around responsible gambling. With increased scrutiny on player protection and sector perception, licensed operators are actively collaborating with regulators to build a more sustainable and accountable betting ecosystem.

Whether you’re an investor, platform provider, operator or policymaker, A New Era in Brazil provides a data-driven foundation for informed decision-making in one of the most dynamic emerging markets in global gaming.

Download the report now by completing the form below to access exclusive operator insights, regulatory analysis and the data you need to shape your Brazil strategy.

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.

Papara founder Ahmed Faruk Karslı was among those detained in raids across Istanbul that began at around 5am local time. The tycoon faces charges of establishing and being a member of a criminal organisation and laundering the proceeds of crime. Authorities seized assets worth TL5 billion ($128.4 million).

Turkey’s interior minister, Ali Yerlikaya, said the Financial Crimes Investigation Board (MASAK) had determined that criminals were using Istanbul-headquartered Papara accounts to transfer illicit funds and finance illegal betting.

The swoop comes two months after PayFix’s chairman and others were detained on charges of money laundering and running an unauthorised betting network. TCMB, Turkey’s Central Bank, has halted the operations of PayFix, Aypara and Ininal as part of the illegal betting probe.

İstanbul’da “Yasa Dışı Bahis” suçuna yönelik Papara A.Ş.'ye bugün (27 Mayıs) düzenlediğimiz eş zamanlı operasyonlarda; örgüt elebaşının da içerisinde bulunduğu 13 şüpheli yakalandı.

İstanbul Cumhuriyet Başsavcılığı ile Emniyet Genel Müdürlüğü Siber Suçlarla Mücadele Daire… pic.twitter.com/beg8cBIo8P

— Ali Yerlikaya (@AliYerlikaya) May 27, 2025

Illegal gambling charges relate to 26,000+ Papara accounts

The Papara investigation found individuals placed illegal bets through accounts opened in the names of 26,012 people, conducting transactions totalling TL12.9 billion. The money collected in these accounts was transferred to 274 different accounts. It was determined the funds were transferred from these accounts to crypto wallet accounts belonging to five individuals associated with four different illegal betting sites.

The authorities acted following an investigation conducted by the Istanbul Provincial Police Department’s Cyber ​​Crimes Combating Branch Directorate, under the coordination of the Istanbul Chief Public Prosecutor’s Office and the General Directorate of Security’s Cyber ​​Crime Combating Department.

Minister Yerlikaya said: “I congratulate our governor of Istanbul, our Istanbul Chief Public Prosecutor’s Office who coordinated the operations, our Istanbul Provincial Police Chief who carried out the operations, our heroic police officers and our MASAK employees.

“Illegal betting is a crime that threatens the future of not only individuals but also society.

“We continue our fight against illegal betting and cyber fraud with determination for the safety of our citizens.”

Papara valued at $2bn+

According to the Istanbul Chief Public Prosecutor’s Office, authorities seized assets including eight companies led by PPR Holding Inc, yachts, five boats, three safe deposit boxes, 74 vehicles and seven apartments and villas.

Papara, founded in 2015, provides online money transfers, foreign-exchange transactions and bill-payment services. The company achieved a valuation of over $1 billion, becoming the first Turkish fintech to do so, and is now worth an estimated $2 billion.

According to Papara’s website, it has more than 23 million personal users and services more than one million businesses. Its users make more than 31 million transactions each month. Papara offers prepaid card, domestic and international money transfers, in-app payments, insurance, investment products and services.

VP Betting Andreas Reimblad tells iGB the operator has sought to become more competitive with its betting offering and shifting to the OpenBet technology has enhanced the quality of the product. 

A competitive edge with in-house odds 

The updated product is also partly powered by an in-house trading team which can generate odds on local Finnish sports including ice hockey, floorball and pesäpallo (similar to baseball). 

“A big reason why we’ve used OpenBet is that we wanted those self-trading capabilities, as we really see it as a unique position for us. We can create markets and a product that no one else in the market can, with the accuracy that we can,” Reinblad says.  

Generating these in-house odds will be part of Veikkaus’ competitive advantage, Reimblad says.  

“For some of the international operators, Finland will be a quite small market overall. So this is one element that we can really stand out on. It’s not many that have their own trading team who are actually doing the odds compiling for the market. I would even state that we are the market in some of the local sports.” 

In September 2023, Veikkaus signed a four-year agreement to utilise OpenBet’s sportsbook platform and managed trading services. The supplier won the tender opened by Veikkaus in an effort to improve its product suite and compete in the liberalised market. 

At the time the deal was signed, Finland was operating an iGaming monopoly, but the government and trade bodies had shown interest in liberalising the market.  

Finland’s market liberalisation process commenced in July last year, when the government released a draft bill outlining guidelines for an open gambling market.  

Pivoting off DraftKings’ B2B platform 

Veikkaus previously used the SBTech platform but, after it was acquired by DraftKings in 2020, the operator said it would wind down its B2B operations, in March 2021.  

“Our current supplier DraftKings announced they were not continuing with their B2B element. The development of the product has been far from ideal, when we’ve seen other operators being very quick in developing their product and platforms,” Reimblad says.  

“We are going live before mid-summer, probably sooner rather than later. It’s going to be before the football season restarts in August,” he says of the launch timeline.  

Reinblad joined the operator in July 2024, coming from Kindred where he was director of sportsbook.  

“I felt the timing for me was that I wanted to do something new,” he says of his move. Freedom to execute his own ideas was a key reason for his move to Veikkaus, he says.

Veikkaus EVP for iCasino and Sports Betting Jarkko Nordlund recently told iGB in an interview: “Everyone is waiting for Veikkaus to fail. And it’s my personal mission to prove everyone wrong.”

The sportsbook update is part of a much broader restructuring and tech and product overhaul at Veikkaus as it prepares for Finland’s open iGaming market.

The Football Pools was first launched in 1923 in Liverpool and Manchester. At the time, it was distributing 4,000 betting coupons outside Manchester United’s Old Trafford ground. 

Essentially, players bet on a number of fixtures, with games scored on draws and wins, and gamblers were then entered into a draw to win prizes. 

But after years of legacy technology slowing the operator down, it found processing player data had become extremely clunky and inefficient. In an effort to modernise and improve efficiencies, the operator took the decision to not just rebrand the product, but completely overhaul its digital systems.  

Transitioning onto new platforms and migrating all player data onto the cloud are two risky tasks that threaten a number of negative outcomes and, of course, lead to some amount of downtime for a product.  

Migrating onto GiG platforms  

But the task was necessary to revitalise the Pools’ product and match up to its new brand and personality.  

“Our focus for the time being is to re-establish the Pools brand in the UK market and build success around our unique membership products that are new digital incarnations of the much-loved original Pools games, supplemented with exclusive free-to-play games and other membership benefits,” Pools CEO James Arnold says of the operator’s current focus, post-tech migration.  

Reflecting back on the multi-month process, the Pools’ first step was to migrate onto GiG’s sportsbook and iGaming platform in January, transitioning off FSB Technology’s, which was acquired by EveryMatrix last year, and had its own technology completely scrapped and rebuilt as part of the integration into EveryMatrix’s operations.  

GiG’s suite has enabled The Pools to adopt its bet-builder capabilities and dynamic odds. A key feature of the move was not just modernising The Pools systems, but also to provide scalability, as the operator looks to expand its European presence. 

“[The GiG platform] really gives us a way of modernising the classic pools games and being able to play them digitally, which is, you know, absolutely key for the company going forward,” The Pools’ CTO Donegan tells iGB. 

Consolidating years of duplicated historic player data  

One of the more strenuous tasks was consolidating The Pools’ historic player data into one system. As part of this, the digital team spent a number of months migrating decades of data onto Microsoft’s Azure public cloud system. 

The point of the migration was to gain better insights into Pools players and better utilise their data. 

“We did migrations to move them from on premise data centres into Azure so they were cheaper to run, but also higher performance, because it’ll just scale automatically as needed,” notes Donegan.  

“We had lots of data spread across lots of disparate systems and disparate technologies at the same time. So player data could be held in an SQL Server, MySQL and Postgres Oracle,” Donegan says. 

During this process, Donegan’s team had to undergo a significant deduplication exercise, the process of identifying and removing duplicate data, that had built up over the years. 

“We knew of all of our data, so we didn’t really have anything that was missing, but the main challenge was just connecting it all back together again. And you know, you could have potentially multiple accounts in multiple systems, so drawing all of that back together into a single account per player was the key to it,” Donegan noted. 

New insights into player activity 

The deduplication process had to be carried out before any data migration to the cloud could take place, as GIG’s platform does not allow for multiple accounts to exist at the same time, Donegan mentions.  

“Compared to where we were, we’ve now got proper insights into what our players are doing. We can target them more effectively, but more importantly, playing engagement is a lot easier to do, because we can monitor it in real time,” said Donegan. 

Also moved to the cloud was The Pools’ subscription engine, a massive piece of software, with 18 services operating within it. Donegan says the team is transferring those one by one onto Azure, to ultimately de-commission the on-premise technology that was previously used.  

Decommissioning and updating legacy technology systems 

As with any major digitisation strategies, some systems make the cut and others don’t. 

The Pools was historically operated offline, with players being sent bits of paper to place their bets, which were then returned by post. And although the majority of its systems had been digitised, some products were ultimately decommissioned, due to outdated systems.  

“There were various games that were powered by a system called Meridian that was written in VB (Visual Basic), an old version of VB, and it would have taken a significant amount of money to save it. Ultimately, we decided it’s not worth it, we’re just going to decommission it,” Donegan said. 

VB is a programming language developed by Microsoft. It’s used for creating various types of applications, especially those that run on the .NET platform. 

Some systems adopted by The Pools have been rebuilt from the ground up, as is the case with the operator’s marking system, which has been redesigned using modern technology. 

Its previous marking system was written in Java, but Donegan’s team is looking to build the new system using the .NET Microsoft-developed software framework. 

“We’re trying to move as much as possible onto .NET rather than spread across .NET, Ruby, VB and Java, which is what we were previously,” Donegan said. 

But Donegan does want to reinstate some of the product’s classic games, in an updated format.  

“A single payment provider is one of the things that we want to [adopt], which we see as part of the modernisation and restoration of some of the games that were removed from the site, but we want to add back again. So that’s the Premier Six, Premier Ten games, for example. The new marking engine being complete is a prerequisite to some of these services being put in first,” Donegan said. 

The Pools’ AI integration 

As part of The Pools’ modernisation efforts, it is also turning to AI technology to streamline both backend and customer-facing processes. 

This year it began working with Intercom, an AI agent supplier, to provide it with customer-facing customer services chatbots. Currently, all player interactions go through human-operated agents, but this new system will enable the company to reduce that requirement and allow its customers to get quick responses to simple queries. 

The Pools has also loaded all of its legal documents onto a Microsoft SharePoint site, which has an AI co-pilot agent running that can scan hundreds of documents instantly. This allows its staff to send the agent queries, such as how much it is spending on certain services in a month.   

“It just spits [information] back out to you in real time, rather than you having to trawl through hundreds, if not thousands, of documents. That was a couple of hours’ worth of work to create, and you’ve got something that will save hundreds of hours across a year and it’s consumption based, so you’re only paying when you use it,” Donegan says. 

Looking ahead to geographical expansion 

Donegan tells iGB there is an “element of discovery” to the digitisation effort and the company will be reacting to new technical challenges as it evolves. But one of the core concerns on the technical transition is how players will respond to the new processes, especially those who have been long-time Pools users.  

“How the player base responds to the new platform is going to be key. So it might be that we know we need to add new features to the product roadmap in order to satisfy demand. I think reactivity is going to be a key challenge over the next 12 months,” Donegan said. 

While The Pools is predominantly focusing its rebrand and digital launch in the UK, Arnold is eyeing further geographical expansion and the recent tech and product overhaul will be able to support that goal and ensure The Pools can compete with its global peers.  

“The small stake, big win nature of the games is perfect for many rapidly expanding markets, particularly across Africa, Latin and South America, where we are actively in discussion with several third parties about future growth opportunities,” Arnold concludes.

Having concluded a lengthy vertical integration process across its business, EveryMatrix group CEO Ebbe Groes says the company’s approach to absorbing new businesses changed.

The company acquired UK-based betting and iGaming platform FSB in an all-cash deal last July and then Fantasma Games later in the year. Groes discussed those and other issues for EveryMatrix in an interview with iGB at the supplier’s new London office.

“We got technology in the FSB deal that was for sure superior to ours, but we chose not to retain it, as integrating this into the Matrix software universe was going to be an easy solution in the short term, but in the long term it would give us more headaches,” Groes tells iGB.

Instead, EveryMatrix sought to rebuild FSB’s technology within the business, in a project heavily influenced by the original FSB team.

“You will find ways where the match is actually not perfect,” Groes nods. “And you realise synergies you thought were there and you maybe lose your way a little bit. When we are done [with the integration], we will keep absolutely nothing [of the technology], only the insights and learnings and the accumulated wisdom behind that [original] technology.”

EveryMatrix sees itself among the roster of tier one suppliers, and recent Q1 group revenue growth of 39% supports that position. This growth trajectory is also reflected in its operational growth, as the company increased its staff headcount by 36% in the quarter, to 1,311.

How much of a threat is operator insourcing?

When asked about the threat of operator insourcing and whether the supplier pool is shrinking to only favour incumbents, Groes says the issue is being “massively blown out of proportion”.

Competing suppliers, like Kambi, have lamented the loss of key sportsbook clients due to insourcing tech. But the provider is now focused on diversifying its client base and making a splash in emerging markets to rebuild declining revenue.

Groes says this challenge exists primarily in the North American market and it therefore does not threaten diversified suppliers.

“We’ve built a company basically with European revenues only. There are lots and lots of opportunities. Local heroes need to step up and our job is to be there for them, whether that’s in Europe, LatAm, Asia, Africa.”

The key, Groes insists, is enabling clients to maintain some control over the front end of their third-party platform. Diversifying their product suite has also helped, of course.

Okada Manila and Solaire in Manila’s Entertainment City reportedly will no longer do business with junket runner 9 Dynasty Group. Police have linked the junket to the abduction of Filipino-Chinese businessman Que, head of Elison Steel.

Que and his driver Armanie Pabillo were last seen alive in Valenzuela City on 29 March. On 8 April, their battered bodies were found along the road in Rizal near a wildlife sanctuary.

Junkets allegedly laundered ransom money

According to the Manila Times, “a highly reliable source” inside the Philippine Amusement and Gaming Corp said 9 Dynasty and another junket, White Horse Club, laundered PHP200 million ($3.6 million) in ransom paid for the businessman’s release.

Que’s family paid the money in pesos and US dollars. It was was later funnelled through casino e-wallets and converted to cryptocurrency.

“The investigation extends beyond the kidnappers who directed the ransom payment process,” said the Philippines Anti-Money Laundering Council on Monday. “It also targets casino players within these junket operations who initially received the ransom funds via their e-wallets.”

On 7 May, 9 Dynasty informed members it would withdraw completely from the market, citing “strategic adjustments” in global operations. White Horse Club has also reportedly shut down its Philippine operations.

Reminiscent of POGO abductions

The AMLC is working with the Philippine National Police, Pagcor and casino operators to investigate the crime. The Securities and Exchange Commission and Central Bank are also looking into the use of e-wallets with crypto-conversion capabilities.

“Through this ongoing investigation, the AMLC reaffirms its dedication to upholding financial integrity, supporting the immediate resolution of this case and ensuring that the Philippine financial system does not become a conduit for illicit activities,” the council said.

Investigators have compared the kidnapping and murders to offences committed during the POGO era. In July 2024, President Ferdinand Marcos Jr banned Philippine Offshore Gaming Operations following widespread reports of crime.

“Disguised as legitimate entities,” Marcos said, POGOs “ventured into illicit areas furthest from gaming such as financial scamming, money laundering, prostitution, human trafficking, kidnapping, brutal torture – even murder”.

Police have also considered the possibility that Que was involved in an illegal offshore gaming scheme that went wrong.

11 suspects nabbed at airport

On Friday, 11 suspects in the case were arrested at Mactan-Cebu International Airport.

As reported by the Philippine Inquirer, the men – nine foreigners and two Filipinos – were carrying millions in pesos and other currency, including US and Hong Kong dollars.

When questioned, they claimed it was casino winnings and produced a certificate including the notation “White Horse”.

Nordlund leads the digital business arm that will be spun out to offer products to consumers in Finland’s open gambling market.

“Everyone is waiting for Veikkaus to fail. And it’s my personal mission to prove everyone wrong,” Nordlund says.

Finland’s online market will open to private competitors in January 2027 and the legacy monopoly operator is expecting to secure a leading position when that occurs. 

However, Veikkaus has been in a steady decline across both revenue and profit over the last few years, as group revenue fell 7.2% year-on-year in 2024. 

Operating profit was also down 19.5% in 2024, but this was partly due to the ongoing investment in its digital business, ahead of the open market launch.  

Stakeholders in Finland have argued that Veikkaus has not been able to remain competitive against grey market operators.  

To prove itself in its home market, the company has initiated a major technology and product overhaul. Nordlund says it is in the process of transitioning to new PAM, sports betting and CRM platforms.  

Nordlund says the company is also working to launch new mobile applications in the next year.

“We have not really activated [our technology and product capabilities], but the competition is fierce,and when [the market] opens we must be very competitive. Our aim is to challenge the mentality of our current position,” he notes.  

Attracting experienced industry talent to Veikkaus 

Last July, Veikkaus hired former Kindred director Andreas Reimblad to lead its online sportsbook overhaul.  

The company has actively been recruiting talent from across the industry to bring experience and knowledge to the digital business.  

Its latest hire includes Fatemeh Daneshzadeh, ex-product excellence manager for Kindred. Daneshzadeh joined Veikkaus in April as VP of digital channels.  

Nordlund says that although he is looking to recruit further experienced industry folk he is also looking at other entertainment sectors, particularly in television and music, where he joined gaming from.  

“We have hand-picked international expertise [from the sector] to come to work for us. Then we are recruiting from Netflix, Bolt and those [kinds of] digital companies,” he says.  

The business will ultimately maintain a mix of legacy Veikkaus staffers and new talent, which will encompass all the best parts of the entertainment industry.

In the submission, NBA Vice President Alexandra Roth warned the CFTC that prediction markets pose substantial integrity risks. The federally legal exchanges such as Kalshi, Robinhood and Crypto.com allow users to buy and trade futures contracts tied to sports outcomes. Opponents insist that this is simply a workaround to existing state wagering laws, but several courts have disagreed thus far.

Kalshi defeated legal challenges from the CFTC in federal court last fall to offer election betting. Since then, the exchange and others have moved into sports, resulting in cease-and-desists from numerous state regulators, including those in Nevada, New Jersey and Maryland.

After countersuing in all three of those states, Kalshi so far has won preliminary injunctions in the first two. In response to the rising opposition, the CFTC had scheduled a 30 April roundtable discussion on the issue. But it was unorganised from the start and was never publicly confirmed. The roundtable was ultimately cancelled in late April with no details as to when or if it might be rescheduled.

In the meantime, comments have continued to pour in and the submissions range from tribal interests to trade groups, state regulators, problem gambling advocates and now sports leagues.

NBA, sports betting closely aligned

The NBA and its commissioner, Adam Silver, are perhaps more connected to sports betting than any other US league. This stems in part from a 2014 New York Times op-ed penned by Silver pounding the table for federally legalised wagering, a full four years before PASPA would be overturned by the Supreme Court and long before the NFL or MLB would even acknowledge sports betting.

In his article, Silver argued that the lack of legal options was driving black-market activity, which was bad for consumers and league integrity. Notably, former NBA referee Tim Donaghy wagered on several games he officiated, creating one of the biggest betting scandals in US sports history. Donaghy, who pleaded guilty to two federal charges in 2007 related to the investigation, denied fixing any games.

Now, nearly a decade after PASPA’s repeal and the leagues’ embrace of betting, the NBA is again citing integrity concerns, this time from prediction markets.

“Protecting the integrity of NBA basketball and preserving public confidence in our league and in our sport is our highest priority,” Roth wrote to the CFTC. “That principle has guided our approach to the rise of legal sports betting in the United States and is guiding our study of the sports betting-like products replicated in sports prediction markets today.”

Rapidity of new markets, self-certification

In just a few months, the speed at which prediction markets are expanding their menus is noteworthy. When Kalshi and others first rolled out sports markets, they did so with season-long futures such as championship winners. But that has quickly morphed into single-game contracts and those are now among the top markets for the exchanges in terms of trading volume.

The above chart, reported by Dustin Gouker from the Closing Line, shows trading volume on Kalshi contracts from 26-27 April. NBA and MLB contracts significantly outperformed any non-sports markets. The main reason why Kalshi and others are able to expand so quickly has to do with regulatory frameworks.

Under traditional sports betting laws, operators must receive approval from state regulators in order to offer new bet types in a jurisdiction. But federally regulated commodities exchanges can self-certify contracts and begin offering them immediately. The CFTC can then come behind and request they be removed, or take no action. This framework is among the biggest contentions from detractors, although Kalshi and others have claimed to have consulted with the CFTC during the process.

“The way new contracts come to market offers a stark contrast: exchanges can launch new, more exotic sports prediction markets via self-certification, which puts the burden of initiating any post-launch review on the CFTC and allows most contract markets to simply proceed unchecked,” Roth wrote. “But for legal sports betting operators, affirmative regulatory approval from the applicable state gaming regulator is required before a new betting market can be launched in the first place.”

Roth went on to assert that this process “suggests to us that player proposition markets (i.e., markets focused on a player’s single-game performance) or other potential markets (e.g., markets focused on officiating decisions, league rules, or player injuries) are not far behind.”

Prop bets especially touchy for NBA

For the NBA, player prop bets on prediction markets would be especially concerning.

Last April, the league banned former Toronto Raptors forward Jontay Porter for life for intentionally leaving games early to cash “under” prop bets on his performance. As a two-way player on the fringes of the league, Porter was especially vulnerable to such influence as a means to repay gambling debts. He ultimately pleaded guilty to a charge of conspiracy to commit wire fraud last July.

The scandal was among the biggest of 2024 and has since resulted in several additional indictments. Another player, point guard Terry Rozier, is also reportedly under investigation for his connection to suspicious betting activity.

In March 2023, when Rozier played for the Charlotte Hornets, he exited a game against the New Orleans Pelicans early and underperformed his betting totals after suspicious betting activity was flagged before the game. Citing foot soreness, he left the game and did not return that season. That investigation is ongoing and is said to be connected to Porter’s.

Who’s watching the store?

In the cases of Porter and Rozier, the scandals were first unearthed by betting integrity monitors. These third parties monitor betting activity and alert leagues and state regulators of any irregularities. Their work has so far been pivotal to identifying nearly all betting scandals discovered post-PASPA.

This also is among the NBA’s chief concerns as it relates to prediction markets. The NBA did not reference Porter’s activity in its letter to the CFTC.

“Likewise, as sports betting prediction markets exist today, we are not aware of any requirement that either exchanges or brokers report potentially suspicious trades or trading patterns to an affected league or cooperate with any league-run investigations into such suspicious activity; nor are we aware of any mechanism that would require ongoing information sharing between exchanges and affected leagues,” Roth wrote.

Given that leagues “have little ability to monitor and understand integrity risks”, Roth asserted that “the risks arising from this limited visibility will grow”.

Prior to Porter’s suspension, Silver described Porter’s transgressions as “the cardinal sin” in violating league integrity rules. The NBA also has a long-term partnership with global data provider Sportradar, which has the capability to monitor anomalous betting patterns in near real-time.

Las Vegas-based IC360 is of the industry’s leaders in integrity monitoring and has flagged multiple pro and collegiate scandals. However, the industry was somewhat jolted by the 24 March announcement that IC360 is now partnered with Kalshi. The sudden departure of founder Matt Holt, which was not disclosed for several weeks, has also raised eyebrows among industry circles.

“IC360 strongly believes that integrity in sport can be achieved through innovative technology-driven solutions and collaborative stakeholder engagement. Our partnership with Kalshi is a terrific embodiment of these principles,” Scott Sadin, co-CEO of IC360, said in a release announcing the partnership.

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AI is already being used to create promotional content for illegal operators. Over the Easter weekend, Sky News reported it had recently discovered an AI-generated video of Sky News presenters touting gambling apps.

Older footage of news presenter Matt Barbet was used to make a video that purported to have him talking to another Sky News correspondent about an iPhone game they had won £500,000 on. The fake adverts were spread through social media and supported the marketing of illegal gambling sites contained within gaming applications on the Apple app store.

AML risk of AI

In April, the UK’s Gambling Commission issued an update warning of the prevalence of AI deepfakes connected to emerging money laundering and terrorist financing risks.

Last year, the UK’s Joint Money Laundering Intelligence Taskforce published an amber alert on the use of AI to bypass customer due diligence checks. The UK’s National Crime Agency (NCA) took down a website last year that was offering AI-generated identity documents, such as passports or driver licences, for just $15.

The Gambling Commission has advised all operators of the need to train staff in the assessment of customer documentation for AI-generated documents.

Threat actors and fraudsters are well versed in emerging technologies. With the prevalence of digital mediums for public and private services, synthetic identity theft has become an increasing challenge for law enforcement.

“Synthetic identity theft is a type of fraud in which genuine and fabricated personal information are blended to generate a completely new, fake identity,” Dr Michaela MacDonald, senior lecturer in law and technology at Queen Mary University of London, tells iGB.

“Alongside voice cloning, behavioural mimicry and deepfake technologies, AI-generated synthetic identities can easily bypass traditional Know Your Customer (KYC) systems by defeating facial recognition, exploiting support chats, or spoofing voice-activated authentication.”

Research on deepfake technology from the Alan Turing Institute, published in March, said AI-enabled crime is being driven by the technology’s ability to automate, augment and vastly scale up criminal activity volumes.

That report stated: “UK law enforcement is not adequately equipped to prevent, disrupt or investigate AI-enabled crime.”

While legislation may help to deter the threat of AI-enabled crime, the institute called for a “more robust and direct approach” – one that is centred around the “proactive deployment” of AI systems in law enforcement.

How will regulators likely respond to deepfake incidents?

Regulators across the world tend to be strict on AML infringements, which have historic connections to the gambling industry given the movement of vast sums of money.

In the UK, the Gambling Commission hit two operators with penalties for AML and customer care failures last month. The Football Pools was ordered to pay £375,000 (€449,732/$484,417) for AML breaches. The regulator found that when AML thresholds were reached, Football Pools’ processes did not initiate hard stops. These only kicked in when a “manual” review was taken.

Corbett Bookmakers was hit with a fine of £686,070 for numerous AML failures, which included not knowing the appropriate customer, product, geographic and payment risks. The commission stated that it had failed to take a sufficiently risk-based approach to AML.

When it comes to the developing risks of AI on the gambling sector, the Gambling Commission has stated that all operators must train staff in the assessment of AI-generated documents.

Regulators can approach the issue by allowing information sharing across secure channels, promoting innovation in the sector and international cooperation, as well as reviews of their own frameworks.

Fast-moving technology

Annabelle Richard, legal partner at Pinsent Masons, tells iGB that given the emerging and fast-moving nature of this technology, regulators may be lenient in some early cases of AML rules being perpetrated by deepfake technology.

If operators find their systems have been bypassed in some way, but they are still unsure of what the remedy should have been at the time of the incident, the regulator may opt not to hit them with an AML warning or fine.

However, if a failure of systems occurs, or an operator has been too slow to spot something that the tools exist to catch, a regulator will likely not be as lenient.

“If you haven’t even engaged with the authority to say ‘I’m not sure what I can and can’t do,’ it will be considered that you didn’t do what you were supposed to, to abide by your regulatory obligations. And that’s going to be a whole different situation,” Richard states.

How gambling can mitigate the AML AI deepfake risk

The UK’s National Crime Agency says fraud is the most prevalent crime in the UK and AI has the potential to increase the speed, scale and sophistication of online scams.

With AI technology, threat actors can target more victims or companies across international and language barriers. The use of deepfake images and videos is increasing the difficulty of fraud detection.

“The use of AI to facilitate fraud underscores the need for private industries, law enforcement and the public to all take steps to reduce the threat. The UK’s Online Safety Act puts more onus on the online platforms to take action and we are continuing to work with government and regulators to maximise its impact,” the NCA tells iGB in a statement.

The UK’s 2023 Online Safety Act set out rules to curb online fraud. Service providers have been asked to introduce measures that tackle fraud and terrorism.

These include the explanation of how they undertake account verification, as well as the inclusion of automatic detection software that finds and removes advertisements or posts that are linked to the sale of stolen credentials or faked credentials.

Operators need to refresh AML processes

With the growing sophistication of the AI threat, operators need to keep up to date with best practices and technological innovations. Operators can enhance AI-based document checks with biometrics such as facial verification and liveness detection checks. The use of device fingerprinting and geolocation services would also increase detection rates.

Additionally, machine learning applied correctly could identify inconsistencies in player activity that may give an additional layer of security.

Queen Mary University lecturer MacDonald tells iGB there are several technologies emerging which will help detect synthetic identities and manipulated materials. These include end-to-end orchestration, data intelligence and artificial intelligence.

“These tools work together to centralise verification processes, analyse large datasets for subtle inconsistencies and leverage machine learning to detect evolving fraud patterns with greater accuracy and speed,” says MacDonald.

“However, implementation varies widely. High-quality defences require significant investment and many operators are using the same class of AI tools for verification that fraudsters are using to attack them.”

Fraud and gambling are old enemies

The gambling sector has always been a ripe target for manipulated documents and fraudulent activity. There has been a constant arms race between operators and fraudsters trying to get one past security systems.

Gambling industry expert and Circle Squared consultant Mick d’Ancona tells iGB that operators have dealt with dodgy documentation from players for years.

“All that’s happening now is it’s easier to [fake documents required by operators]. But actually, if you’re a good operator and you’re [processing documents] properly, you’ve got what you need in place” already, d’Ancona says.

However, he believes it won’t be cheap to mitigate the risk of fake documentation, as fraud gets more sophisticated and operators must keep their processes up to date.  

Smaller operators, or those in the grey markets, may not be properly putting protections in place, he warns. Budget constraints or lack of protection engagement raises the risk of due diligence failures.

“If you only ask for a copy of a passport, but you don’t do a likeness check, or if you just ask for proof of funds when you don’t actually have the staff, experience and the tooling to check that it’s a legitimate bank and that everything looks right with it, you are, for sure, exposed,” d’Ancona states.

Emergence of electrical ID wallets

One method that could help curb ID fraud is the introduction of official or national digital identifications.

Digital identity wallets or applications use numerous technologies to secure and confirm identification. These include cryptographic keys and biometric data, as well as fingerprints and facial recognition.

Digital wallets are not a nascent technology. Singapore brought out its SingPass in 2002, which acts as a national ID, allowing users to file taxes or access medical documents.

Estonia also introduced its digital ID card in 2002. Other nations with digital ID options include Germany, Sweden, Japan and Canada.

The UK’s Post Office EasyID launched in 2021. It provides a digitalised ID that is government certified and can be used for right to work, criminal record checks and age verification.

The EU has already taken some steps in ID regulation that could be a useful aid in securing operations as the EU Digital Identity Framework Regulation came into force in 2024.

Under the regulation, EU member states must offer at least one digital identity wallet to citizens.

This app ID will allow people to identify themselves to public and private online services.

Jarek Sygitowicz, co-founder of identity verification software developer Authologic, thinks the implementation of the electronic ID wallets could be a game changer.

“These have seen adoption growing over the years, but with the EU implementing the eIDAS 2.0 regulation, what has been a slow wave will become a big jump in the next 12-24 months. While the EU has led the adoption of e-IDs, even skeptical countries such as the UK are planning to launch their own digitised driving licence in the summer,” Sygitowicz tells iGB.

Call for standardisation and consistency

The threat of AI deepfakes is already here, but again, so are the majority of the tools that will be used to mitigate the risk.

While AI software in the wrong hands is capable of producing fake IDs and mimicking biometric data with increasing precision, there are advanced measures available. However, the adoption is patchy and smaller platforms may not be aware of their options.

“What’s missing right now is consistency. There’s no shared framework for tackling AI-driven fraud, and that needs to change,” Web3 recruiter Spectrum Search CTO Peter Wood explains.

“Regulators should be pushing for industry-wide standards around ID verification that are designed to hold up against AI. We also need to see better collaboration between platforms, some kind of anonymised, real-time data sharing system that helps flag suspicious activity across the board.”

One of the key challenges in detecting synthetic identity fraud is that personal identifiable information can be fragmented across multiple platforms. If there is no “unified oversight”, it can be difficult to spot inconsistencies.

MacDonald says one way to mitigate this would be for regulators and law enforcement to encourage “international coordination on synthetic ID detection, information sharing and regulatory standards, which will be essential to staying ahead of increasingly sophisticated AI-driven fraud”.

While the risk profile for potential fraud and AML breaches enabled by the use of AI has risen, operators’ obligations to be informed and up to date have not changed.

There are tools that can help keep the gambling sector ahead of the threat, but the industry and regulatory stakeholders may need to come to some form of consensus about best practice.

I had been looking at some cybersecurity information because of some work I was doing and I remembered how, at one of the hacker expos in Vegas, they used to challenge attendees to gather as much personal data as they could in the city using only equipment available to the general public – i.e. over the counter in Radio Shack or wherever.  

They scooped data out of the air, driving up and down The Strip, plucking card details and much more. One of the least secure areas in a standard resort, it turned out, was the handheld payment devices in restaurants. 

There is a human on the other side of every data breach

I got married in Vegas several years ago. Elvis was at the wedding and fun was had by all. When I got home, I discovered that my bank account had been wiped clean. No idea how or when or where, but I was freshly married, moving into a new house, and it was right before the Christmas and New Year holiday. I mean, we were screwed.

The bank was awesome, took care of everything, but it still took three to four weeks because of the holidays and where the weekends fell that year. Thankfully my mum’s wedding gift to us was our first two months’ rent, so at least we didn’t get kicked straight out.  

Why am I sharing this? Because when customer information is stolen during a data breach, there is a human being on the end of that, getting absolutely dicked. Not a statistic, not one of hundreds of thousands of people, just one person, an individual victim of… Well, of what? A crime, sure. But who is responsible for that crime? 

Customer perception 

It got me thinking that customer perception is incredibly important in a brand-driven industry. Say, for example, that my details got scooped up by some Radio Shack enthusiast and sold on with a tranche of other unlucky mugs.

Say I was using a Burger King franchise in Caesars (for the record, I don’t even know if there is a BK in Caesars and I’m using them because I never, ever eat at BK. ‘Have it your way’, my arse) and my details got plucked out of the air and sold on.  

As a fairly straightforward, surprisingly handsome, but quite short human being, how would I describe that to my friends and family, or on social media? 

“My details got stolen when I was at Caesars in Las Vegas.” 

The point here is that while it is a BK franchise and nothing really to do with the parent property, the perception is not the same thing at all. Logic has no place in this whatsoever. And that perception is what’s going to tarnish your brand – and there is absolutely nothing you can do about it. Isn’t there? 

There was a case recently in Germany where Merkur had a tonne – an absolute tonne – of player data stolen and it came about because of an issue with a supplier for their online casino, The Mill Adventure (TMA) . As any cyber professional will say, you might get 99 things perfect, but the opportunist hacker only needs to find the one thing you missed and… that’s that.

Following the supplier chain

I am certainly not pointing a finger at TMA, just saying that your suppliers can be weak(er) links in the chain and, from the outside, you only have their assurances that all is well, that they have a plan for events like this and more.  

The only way to mitigate this is surely to have contractual clauses requiring evolving security standards and to demand the highest standards from every supplier you have. 

And for every supplier they have and for all of their supplier suppliers and so on down the chain. It reminds me of the British government’s HIV awareness propaganda in the ’80s, where they pointed out that if you had unprotected sex you weren’t just having sex with that person, but with everyone they had slept with without protection and everyone they had slept with and so on.  

In this context, the UK Gambling Commission’s tools to fight against the black market make a lot of sense; it’s a similar approach, just in a positive, non-destructive way. Bear with me here.

The Gambling Commission CEO Andrew Rhodes said, back in November 2024, that industry stakeholders should “all undertake due diligence to ensure none of your suppliers are directly or indirectly engaged in supporting unlicensed activity in this market”.

“The Gambling Commission’s strategy on combatting illegal gambling is to cause as much up-stream disruption as we can, which is why we have focused on ISPs, payment providers, search engines, software suppliers and more.”

Well, if you’re going to do that (and it makes sense, surely?), then this is not even an extension of that. Your suppliers and business contacts hold your reputation in their hands and you don’t even know if they washed them after using the toilet.  

Branding, schmanding 

I got an email the other day saying: “Branding isn’t just about visuals; it’s about emotion. Every colour, word and experience influences how customers feel about your business. A strong emotional connection builds trust and encourages repeat business.”  

Well, that can all be wiped out in a very short time. Not just because of a data breach, identity theft, money disappearing, but it’s also about how you handle the problem. What do you do about it?

Negative events also provoke an emotional response, one that no brand can control; it’s great to have a plan to manage negative events, that’s why we need to have a realistic plan, including meaningful reparation or whatever to those affected.  

But you can prevent a player data breach in the first place to a large extent by making sure the people you are working with are also doing everything they should be. Because your reputation is also in their hands and vice versa. 

Also recently, I got an email from the people handling the disbursement of the MGM money going out to people whose details got stolen. I didn’t reply because, seriously, looked like a scam.

Jon Bruford has been working in the gambling industry for over 17 years, formerly as managing editor of Casino International and presently as publishing director at The Gaming Boardroom, with Kate Chambers and Greg Saint.

In response, Galípolo said the monitoring and sanctioning of the betting sector fell solely upon the regulator, the Secretariat of Prizes and Bets (SPA) and the Central Bank needed more powers in this area.

“The SPA is the one that defines which bet is authorised or not,” Galípolo explained.

He said the Central Bank, once informed by the SPA, could only tell a financial institution when it can no longer provide services to a gambling company. The Central Bank cannot intervene with a transaction. Only the financial institution itself can do that.

Galípolo blamed the proliferation of illegal betting sites on the period of uncertainty between the national congress’ first approval of online betting legislation in 2018 and the regulation’s final green light in 2023.

Does the Central Bank hold any sanctioning powers for illegal betting?

The Central Bank’s executive secretary, Rogério Antônio Lucca, estimated between BRL20 billion (£2.6 billion/€3 billion/$3.3 billion) and BRL30 billion per month will be spent on illegal betting in Brazil this year.

In March, the SPA published Normative Ordinance No 566, which sought to clarify the procedures for reporting payment methods that have been accepting transactions via illegal betting sites.

Senator Dr Hiran Gonçalves, the CPI’s chair, enquired about the Central Bank’s oversight of the punishment of such institutions, sharing his belief there is a “legal vacuum” in the abilities of government bodies to restrict illegal betting.

The CPI’s leader senator, Soraya Thronicke, noted the SPA has the only sanctioning power for illegal betting companies. She asked whether the Central Bank could go after payment institutions accepting illegal betting transactions.

Galípolo said the Central Bank only has the power to intervene if an illegal betting site is linked to financial crimes such as money laundering.

“We do not have the legal authority to act on transactions involving illegal bets,” Galípolo added. “This is outside our scope of authority.

“What we can do is, in the scope of preventing money laundering and financing terrorism, we act so that these institutions have these controls and procedures to communicate.”

However, Galípolo also added: “Many times [a flagged activity] goes straight to COAF [Financial Activities Control Council], to the Public Prosecutor’s Office, to the Federal Police.”

Not up to Central Bank to block betting with social welfare

Last week, SPA leader Regis Dudena confirmed betting with social welfare money will be banned in Brazil, with an ordinance on the matter expected soon.

However, Dudena also warned the ban could be difficult to implement, with the National Secretariat of Citizen Income (Senarc) previously stating just 1% of the recipients of welfare from the Bolsa Família programme accessed their social welfare via a physical card.

The other 99% of recpients access their funds via their bank account, therefore blocking the Bolsa Família card from being accepted on betting sites would be ineffective.

The Central Bank last year revealed a fifth of the funds it sent through its Bolsa Família programme in August 2024 was spent on online betting.

In Galípolo’s view, the Central Bank doesn’t have the necessary powers to implement the ban. He added: “Today, the Central Bank has no authority to impose this type of restriction on people who receive Bolsa Família from placing bets.

“It is not within our jurisdiction, scope, nor does it have the authority to do so.”

Pointing to the current landscape, panelists emphasised that cyberattacks are taking on new forms as criminals find new ways to penetrate secure infrastructure. The panel featured four industry cybersecurity experts:

• Scott Melnick, vice president of gaming security for slot supplier AGS
• Stephen Bailey, vice president of information technology for Cache Creek Casino Resort
• Oscar Schuler, chairman of the Alabama Tribal Gaming Agency Board of Regulators
• Tom Wojinski, partner in Wipfli.

Cat-and-mouse game

Melnick noted that while IT systems have become more secure, ransomware criminals are increasingly targeting staff members. This strategy was used in the MGM breach, where systems were accessed by someone claiming to be the organisation’s help desk.

He said ransomware has evolved into “extortionware”.

“Pay the ransom, or we’ll publish the tribe’s personal information,” he said.

Cybercriminals “are evolving while we evolve”, creating a cat-and-mouse game.

No one knows this more than Bailey, who dealt with a three-week shutdown of Cache Creek’s gaming operations after a ransomware attack in 2020.

“(Cyberattacks) are very impactful, not just for IT departments, but for business as well,” he said, noting that one vital safeguard is having a really strong incident-response (IR) plan in place to understand, contain and limit the damage from attacks.

He and other panelists said the business credo should be advanced planning. This means IR teams and cybersecurity contractors should ensure companies minimise risk and have a rapid-response plan in place.

“We do penetration testing once a year, including social engineering,” he said.

Penetration testers actively test a company’s precautions by impersonating IT employees. One recent test, Bailey noted, saw workers repeatedly handing over their PINs and access to their personal information.

“You can have layers of security in place,” he noted, “but you can’t control people.”

Good cyber insurance is vital, stressed Wojinski – including for the carrier who will handle damage claims.

Melnick added that an operator’s incident-response plan is just as important as securing the network. He said companies should treat their IR plan as if they have already been hacked.

“I’ve done penetration tests one day and a new vulnerability appears the second day,” he said. “Having the IR plan in place is very important.”

‘Education is key‘

Education also is key, said Schuler, adding that tribal casino executives, regulators and employees should have the same education and same game plan.

Phishing incidents in which hackers impersonate company executives have become more sophisticated through the use of artificial intelligence.

That means unusual requests from so-called “executives” need to be scrutinised immediately.

This scrutiny should extend to an operator’s vendors, noted Wojinski, who urged operators to ensure their vendors meet or exceed their internal cybersecurity expectations.

Vigilance of all stakeholders will make it harder for hackers. “They’re looking for low-hanging fruit,” Melnick said. “Unless it’s a targeted attack like MGM, they’re not educated on their target.”

Bailey added that IT officials often face an uphill battle in securing safeguards, because IT is a non-revenue-generating function.

“It is always a delicate dance between keeping IT running and improving cybersecurity status,” he said. “It’s a delicate dance to maintain operations while maintaining security.”

In the end, panelists said, training and education, constant soft monitoring, focus on potential internal threats such as disgruntled employees, multi-level authentication and frequent audits will give operators the best chance to minimise their risk.

Within her Medium blog, Wittmann said she had been able to access hugely sensitive player data through a GraphQL query, including banking details and sign-up information. This data belonged to those holding accounts across Merkur’s Slotmagie, Crazybuzzer and Merkurbets sites. 

Wittmann presented a report to the German gambling regulator (GGL) detailing the breach, which she said had enabled her to access over 800,000 people’s data, German news site Heise reported on 15 March.  

In a statement emailed to iGB, one of the impacted suppliers, Malta-based gaming platform and games provider The Mill Adventure, said the breach had been “an unprecedented event for our systems and we took immediate action to address the issue”. 

A spokesperson said the company had taken swift action and has collaborated with top cybersecurity experts to further harden its defences, “to ensure even greater protection for the players”.  

“Moving forward, we remain fully committed to maintaining the highest security standards so that all player data stays safe and private, as it should,” they said.  

How did the GGL respond to the breach? 

What followed was a public reprimanding from the GGL, which saw The Mill Adventure, alongside Cashpoint Malta and Solis Ortus Service, placed on a public warnings list on the GGL’s website. 

The note said the suppliers had failed to meet their obligation to carry out an annual pentest (penetration test), which helps to uncover potential weaknesses within a system. This led to a lack of security for player data on the domain www.slotmagie.de.  

It said the breached data had included player IDs, nicknames, genders, time of LUGAS (self-exclusion register) registration, time of last login, payment statistics, limit histories and also payment profiles.  

The Mill Adventure was given until June to remedy the fault and meet its obligation. In a statement to iGB on 19 March, the GGL said three suppliers had been contacted by the regulator about “IT-security vulnerabilities” and were told to address them.  

But it said the regulatory violations had since been resolved. The GGL declined to answer additional questions on whether the impacted players could be eligible for compensation, nor what, if any, actions the supplier and operator could face due to these failures.  

Are the breached players further at risk?  

However, one local legal expert told iGB the regulator has a host of measures it could use to reprimand these failings.  

In its investigation, the regulator will have reviewed the scope of the leak, the reasons behind why it happened and whether the providers involved had carried out the required security tests, the source says.

From there the GGL could choose to suspend the licences of those involved, effectively suspending the operational business with immediate effect.  

“Alternatively, they could reduce the licence term by a quarter of the whole licence period, which usually is five years and would probably end in 2027. Lastly, the regulator could withdraw the licences altogether, cutting off their business with immediate effect,” the source comments.  

But, in terms of GDPR, the regulator could also be at risk in this case, as it is responsible for its own data processing.  

Notably, the breach could have resulted in a serious security risk for the players impacted. If hackers were to submit a request to the GGL using the breached player IDs, they could obtain further data on these respective players.  

“If Ms Wittmann or someone else had actually used the stolen player ID to request further player data from the GGL [as per Article 15 of the GDPR regulations], the GGL’s technical and organisational measures would certainly have been insufficient [in protecting the players]. There would be strong indications of a data breach at the GGL, if this had happened,” the expert warns.  

“To me that sounds as if nothing has been resolved yet,” they add. 

Have the operator and regulator downplayed the risk impacted players could face?  

Wittmann did not respond to requests for comment from iGB, but in an interview with Heise on 19 March, she said the operator in question “didn’t give a damn about the security of players’ data”. 

“We’re not talking about a few accidentally left open security gaps here,” she adds.  

Wittmann also highlighted the risk that the GGL could be implicated if hackers obtain additional player data from the regulator, using the breached information.  

In her interview, Wittmann also suggested Merkur was using weak and outdated KYC processes.  

Merkur responded to the incident via an FAQs page uploaded to its impacted sites, informing players of what had happened in the breach.  

On its SlotMagie site, the operator said: “We take the protection of your personal data very seriously and maintain comprehensive, market-standard security standards to protect your personal data.  

“You can be assured that we will adequately protect your data. The fact that the white hat hacker was still able to access the data only demonstrates that no system can be 100% secure.” 

We’ve seen cases like this before 

This is certainly not the first case of a security breach impacting player data in the sector. In November 2022, Joseph Garrison in the US launched a “credential stuffing attack”, in which he and other hackers successfully accessed approximately 60,000 DraftKings accounts using leaked player data.  

According to a department of justice statement on Garrison’s sentencing, he and others stole about $600,000 from approximately 1,600 victim accounts on DraftKings. He was ultimately sentenced to 18 months in prison.  

The high-profile case prompted US regulators to consider industry standards that would better protect operators and their consumers from cyber-attacks.  

But regulation and guidelines can only do so much to protect operators from similar threats and some stakeholders believe cyber security is low on the priority list. 

Speaking to iGB, a gaming sector cyber security specialist says the industry’s investment in security is “not at the level where it really ought to be, when compared to the fintech industry, particularly online banking or trading”.  

“There’s lots of reasons for that,” he adds. “I don’t think companies are unaware that there are real risks. I don’t think there’s any intent to throw their hands up and say, ‘I don’t really care about this.’ But there’s so much to deal with in this sector, and it’s an increasingly margin-compressed one, so something is going to give.”

How big is the risk to player data?

Commenting on the Merkur case specifically, the source says credential stuffing is clearly happening across platforms like Telegram and the dark web. “You can easily see that this is not a highly isolated event.” 

But he believes investment in security is growing. “If you’re a young company or a startup in the space, it’s very difficult to [implement best practice], so you’re going to take some kind of calculated risks. But the bigger operators now, according to anecdotal information, are leaning in harder. The amount of investment [in cyber security] is growing.”  

Ultimately, he says, players should not believe they are at high risk of having their sensitive information leaked on the dark web. And when asked whether regulators are well equipped to deal with these threats, the source notes: “From what I see, regulators understand the topic more than well enough to fulfil the responsibilities of their job, but there are practical limits to their resources.”  

Founded in 1998, the IGSA brought together industry players from across 20 companies to form a non-profit organisation. Today the entity develops standards and best practices for suppliers, operators and regulators. Members of the organisation include European gaming giants IGT, Merkur, Novomatic and Intralot.

IGSA operates offices in Macau, Malta and Tokyo. Its most recent unit expansion was into the African market in 2023.

As part of its work on AI, it established an ethical AI standards committee (AIC) to standardise the use of AI technologies in the industry. The committee sought to provide stakeholders with a framework on how they can adopt AI standards, the correct use of the technology and how to approach it.

It also sought out best practices on AI use across other sectors, to be adapted and adopted for use in the global gaming industry.

“What we’re doing is creating a set of the best practices that we could give to regulatory authorities to help them understand what they should focus on in terms of AI,” Pace said.

“Everything these days seems to be AI powered, right? Your coffee cup is AI powered, your tea kettle is AI powered. It’s just crazy how AI seems to, from a marketing perspective, have become this pervasive technology. Regulators are not immune to that marketing.”

Regulators don’t need a deep understanding of AI

The IGSA is already in communication with several regulators about the use of AI and how best to approach the sector’s rapidly growing adoption of the technology, from a regulatory perspective. So far the IGSA shared eight best practices for AI use with these regulatory bodies and requested their input.

Pace told regulators that while it is good to have an understanding of how AI works, they shouldn’t aim for a developer level of understanding it.

“I talked to regulators who tell me they have tried to understand how AI algorithms have been developed. They’re trying to do a deep dive into AI, and I tell them, ‘You’re wasting your time’,” Pace said.

“What you need to focus on are things like, ‘What data are you going to let the AI algorithms consume? What is the accuracy level of the data? Does the data already have an inherent bias in it?’ Because, you know, the old adage of garbage in, garbage out, never applied more than to AI algorithms.”

Pace said the transparency and accessibility of AI algorithms and applications will also be crucial for regulators. Identifying the developers that have responsibility for shutting down AI programmes that have gone wrong is also extremely important.

AI guidelines will differ across each regulatory environment

The IGSA president said the non-profit would consider additional best practices to include in its guidelines. As AI technology is continuously growing and evolving, he said the framework should also adapt.

The guidelines will likely differ between markets depending on each market’s specific regulatory environment.

“Every jurisdiction will have to make changes to these guidelines to make them fit their regulatory environment. However, the [general guidelines] will focus the regulators on what to worry about, not generative AI algorithms that are by their nature going to change anyway,” Pace added.

Mark Pace will be speaking at the upcoming Payments, Fraud & Compliance Gaming Leaders’ Summit. This is an invite-only, in-person event for selected senior leaders, decision-makers and budget-holders in the igaming industry.

The event will run on 20 and 21 May 2025.

The first markets will be on the NCAA men’s and women’s basketball tournaments, which begin on Tuesday (18 March) and Wednesday (19 March), respectively. There will also be contracts listed for whether the Federal Reserve will change the federal funds rate at its May meeting.

Last month, the exchanges partnered to offer Super Bowl contracts, but Robinhood quickly backed out following pushback from the Commodity Futures Trading Commission (CFTC). Kalshi and Crypto.com, another entrant into the prediction space, kept their Super Bowl contracts active before and during the game. In light of that, it would appear that Robinhood is ready for a renewed push.

“We have been in close contact with the CFTC over the past several weeks and look forward to continuing to work with them to promote innovation in the futures, derivatives and crypto markets,” the company said in a statement. “These contracts will start rolling out today and will be available to all eligible customers in the coming days.”

In a post on X, Kalshi CEO Tarek Mansour said his team has worked to list contracts for “every single March Madness game”, adding that both companies were in “lockstep”.

Announcement follows Kalshi cease-and-desist extension

News of the partnership comes days after Kalshi secured an extension to a cease-and-desist order issued by the Nevada Gaming Control Board (NGCB) on 4 March. The order initially set a deadline of 5pm on 14 March for the company to exit the state. Regulators also warned that previous operations remain subject to criminal and civil penalties.

In a statement on Friday (14 March), the NGCB confirmed Kalshi had requested an extension to respond. The board indicated it did not object to a “limited period of additional time”, but it did not specify any additional details.

In its initial order, the NGCB said prediction markets, which include election betting, are “unlawful in Nevada, unless and until approved as licensed gaming” in the state. The order represented the first regulatory action taken against the controversial exchange by any state.

Uncertainty surrounding federal stance

From a federal standpoint the future of prediction markets is unclear. Last fall, Kalshi defeated legal challenges from the CFTC in federal court, effectively opening the prediction market floodgates. Prior to and during the November elections, Kalshi and others took in billions worth of election contracts.

Since then they have moved into sports outcomes, which has caught the attention of the gaming industry. The speed of action has allowed the exchanges to offer betting on the Super Bowl and now March Madness, the two biggest US sports betting events of the year.

Last year the CFTC vowed to continue its quest to shut down the markets, but that seems to have changed in 2025. President Donald Trump’s son, Donald Trump Jr, was named as an advisor to Kalshi in January. Then in February, Trump nominated former Kalshi board member Brian Quintenz to be the next chairman of the CFTC.

On 5 February, the CFTC announced it will soon host a roundtable discussion on prediction markets. In advance of that discussion the commission received more than 20 submissions. The majority came from tribal interests, which are vehemently opposed to what they deem to be unlawful infringements on exclusivity and sovereignty.

By contrast, there were few industry comments. This could be an indication that operators are mulling potential business opportunities. One industry stalwart is already kicking the tires as, according to Dustin Gouker’s Closing Line newsletter, DraftKings has a pending application for “DraftKings Predict” with the National Futures Association (NFA).

Per the NFA site, “CFTC regulations also require, with few exceptions, CFTC registered firms to be NFA Members.”

The operator said it had developed a number of patents within the streaming and live sports data verticals, including technology that allows players to view live odds and place bets while watching sports.

Panda’s previous filings also alleged that large swaths of the sports technology suppliers’ businesses were using Panda’s patents. These include Genius’ LiveData, LiveTrading, Genius Trading, BetVision and in-Play Multibet products.

Sportradar had also been accused of infringing Panda Interactive patents in its video streaming products. These consist of its Sportradar emBet, Sportradar OTT and Sportradar Live Channel Trading brands.

In a statement released today (3 March), Panda Interactive said it had amended its complaints to suggest that the two parties had blocked new competitors in the market. It also suggested the two parties had “coerced” sportsbooks into using their technology as a condition to accessing real-time sports data via their exclusive partnerships with major sports leagues.

It is seeking a court order against Genus Sports and Sportradar to stop them from continuing the alleged anti-competitive conduct.

Panda Interactive legal action

Commenting on the case, Donald Schupak, Panda Interactive’s chairman, said: “The defendants’ bullying takes bad behaviour to new heights – illegally using our own patented technology against us by packaging it with their platform, tying it to their exclusive data and effectively shutting the door to fair competition.”

Meanwhile Panda CEO Kevin April said the suit was a necessary response to the two parties’ conduct.

“Many in the industry have raised concerns about how Genius Sports and Sportradar operate and their strong-arm tactics have coerced the market at the expense of all layers of sport,” April said.

Sportradar has refused to comment on the case. In a statement emailed to iGB, a spokesperson for the company said: “Like most commercial enterprises, we do not comment on pending litigation matters – even unfounded litigation.

“That said, we can assure you that we operate our business in compliance with existing laws and regulations. We are confident in our defence of this matter and intend to defend these allegations vigorously.”

Panda Interactive is represented in the lawsuit by the US legal firm King & Spalding.

The financial risk checks came into force initially last August against a monthly net deposit threshold of £500, but this was lowered last week so operators are required to conduct a financial vulnerability check on players who have made £150 in net deposits in any 30-day rolling period.

Age group most likely to trigger checks is 35-39  

DoT breaks down the sample by age group and additionally by those that meet the £150 net deposit threshold. The graph below shows the size of each age group demographic included in the total sample and the percentage of those in the age group that would trigger financial risk checks.   

The 35-39 age group had the highest percentage of £150 or more net depositors, with 26% of the group hitting that threshold with at least one operator.   

The 30-34-year-old group followed closely with 25% of the gambling sample hitting the threshold. The 40-44 age group followed with 24% and then 25–29-year-olds with 23%.  

Looking at under 25s only, 21.5% of them will trigger at least one check versus 25.6% of over 25s.  

Vast majority of deposits flagged for financial risk checks

Taking a closer look at gambling deposits, a total of £168m in deposits were made by the gambling sample as a whole.   

Those that hit a £150 net deposit threshold collectively generated nearly 97% of gross deposits made to all operators within the year, meaning financial risk check candidates made up the vast majority of deposits made.   

This suggests players that generate nearly all the income for UK gambling operators will be part of the light touch checks.

On average, an active gambler had net deposits of £54 a month and deposits typically once every two weeks across three operators.   

This increased to five operators for those hitting the £150 net deposit limit. These players, however, don’t typically spend more per operator or deposit higher amounts.  

When broken down by age group, 18-24s (with net deposits of £150+) gambled with up to 5.68 operators on average.    

Of those that would have triggered financial risk checks, the average net deposit was around £211 a month. When broken down into those aged below 25, this average monthly net deposit drops to £142.64. For those over 25 it increased to £222.29.   

Average income was higher for players triggering checks

DoT’s data also took a look at the average income for players in the sample. Overall the average annual income before tax was £36,614.43, this increased slightly to £37,157.84 when looking only at those with net deposits of £150+ per month.   

When broken down by age group, those aged 50-54 (with a monthly net deposit of £150+) had the highest average income of £41,652.79.   

There is no clear correlation showing that those who earned more gambled significantly more than those with lower incomes.

“Operators can’t afford to get this wrong”

Commenting on the data, DoT founder Charles Cohen said financial risk checks are introducing a crucial triage point that can help ensure that revenues are sustainable and players are being protected.

“This data shows both the impact and relevance of the light-touch financial risk checks at £150 net loss. Operators simply cannot afford to get this wrong because it’s clear that this is not just where the revenue is, but also the most problematic situations with customers,” Cohen told iGB.

DoT previously provided data on where gambling sits within UK consumers’ monthly leisure spend. The article can be found here.

In the first edition of iGB and WagerWire’s Reverse Pitch, Alea founder Alex Tomic sat down with WagerWire CEO Zach Doctor, Flows chief executive James King and Lou Stadler, CEO of 506Tek.

With the power in the startups’ hands, Tomic take on questions about how he has built his business. 

Finding the right talent can be a struggle, he says, especially with the stigma around gambling. Tomic believes this can attract employees potentially more interested in financial gain than pursuing a passion.

“It’s a small industry and we don’t attract the best talents. We don’t attract the best talents because there’s a stigma with gambling,” Tomic says.

“So, a lot of talents don’t want to work in our industry. So, who’s going to come and work in our industry? People that are looking for money, people that are not really interested by the project.” 

The ability to delegate will help CEOs to empower their team, says Tomic, who moved to a non-executive role at Alea in February 2024, with chief operating officer Jordi Sendra assuming his role as CEO.

Tomic points to this as a factor in Alea’s success, although he concedes it was a struggle at first, saying: “When you start, you have a framework in your mind where you used to work alone. You aggregate people around yourself but you still continue working alone with the team around you so they are an extension of you. It took me a good 10 to 15 years to let it go.”

Tomic’s approach to people and talent extends into his investment ethos too, as he says when a potential investment opportunity comes along he is more focused on the talent behind the project than the concept itself.

And now she’s taking on the startups in the Reverse Pitch, powered by iGB and WagerWire. This unique format takes aim at the tried and tired pitch competition by putting the power in the hands of the disruptors. 

In Paris Smith, the panel of SavageTech CEO Tom Lemke, MFC Game CEO Michael Lee and WagerWire CXO Travis Geiger have a formidable industry icon to interrogate. 

Since leaving Pinnacle Smith now serves as an angel investor, as well as a co-founder of startup launchpad Defy the Odds. In December 2024 Smith even became a backer of WagerWire in its latest funding round.

But from her vantage point, what does she think of the gambling startup space? 

For Smith, humility, hunger, smarts and passion are critical qualities in successful founders. She advocates for realistic expectations and collaboration among startups. Prominent challenges, she says, are determining a startup’s valuation and securing funding at a pre-seed stage.

Speaking on the ethics of the gambling sector, Smith notes: “I’ve always been able to go to bed knowing that I’ve done what I believe is right and I think that that’s kind of the balance. But gaming is an industry, it’s a business. 

“You know, we’re not running to people’s houses and putting a gun to their head and telling them they have to gamble. It’s an entertainment industry.” 

Flows, the industry’s no-code automation platform, was founded by its CEO James King in 2021. 

The system aims to support development and workflow automation with simplified controls and building structures. It also lets operators create gamification elements on their platforms, such as missions and tournaments without coding skills.  

Speaking to host Katie Goldfinch, Flows CEO emphasises the importance of been able to adapt and listen to others’ input. 

“All our markets are sort of going in the right way,” King tells iGB@ICE host Katie Goldfinch at ICE 2025. “We’re gaining clients versus losing them. Revenues are going up. The product roadmap, really exciting, sort of new releases, and we’re releasing them on time as we go as well.”  

Pelc started BeyondPlay in 2021 after securing funding from angel investors and venture capitalists. Last year, the jackpot product and multiplayer games start-up was acquired by Flutter Entertainment’s FanDuel.

Speaking to host Katie Goldfinch, the founder of BeyondPlay details the challenges of launching a product, obtaining a UK licence, while at the same time continuing to raise funds.

“We launched one of the biggest jackpots in the industry on day one and it went pretty smooth sailing. Customers were happy, end users were happy. And I think it was a big realisation for us that this is going to work,” Pelc tells iGB@ICE host Goldfinch at ICE Barcelona 2025.

After a whistlestop tour of Illinois, where igaming legislation is in play, and another attempt at sports betting in Hawaii is on the move through the legislature, Evripidou takes the stage to talk cryptocurrency in gambling.

She tells hosts Brandt Iden and Brendan Bussmann how cryptocurrency can become a fundamental part of the gambling ecosystem. 

Listen on Apple Podcasts

Is crypto the future of gaming transactions? How can regulators keep up? And could the US finally embrace digital currency in mainstream markets? Andria breaks it all down for the dynamic duo. 

At the time, Spelinspektionen warned Sweden-based Zimpler that it could face a fine of up to SEK25.0 million (£1.8 million/€2.2 million/$2.3 million) if it failed to comply.

Zimpler hit back and appealed the order a few weeks later. The administrative court ruled the regulator had a lack of basis for the injunction, subsequently cancelling the order.

Spelinspektionen then responded with an appeal of its own, filing this with the Linköping administrative court last June. It argued that by offering its payment service to unlicensed operators, Zimpler was supporting and promoting illegal gambling.

However, at a hearing this week, the Court of Appeal sided with Zimpler and chose to dismiss the appeal. As such, the initial annulment of the injunction continues to stand.

“Spelinspektionen has not shown there was illegal gambling, nor that Zimpler has promoted such. The appeal should therefore be rejected,” the court said.

Court criticises Swedish Gambling Act

Detailing its decision, the Court of Appeal seemingly picked holes in current regulation in Sweden. It agreed that Zimpler had worked with certain unlicensed operators but a lack of “concreteness” in regulation meant it was not at fault.

This included uncertainty in the rules around what it means for an operator to be targeting Swedish players. For now it is not illegal for offshore operators to provide services in English as it is not considered to be targeting locals.

“The Court finds all provision of games by gambling companies that lack a Swedish licence is not prohibited under the Gambling Act,” the court added. “This applies, for example, to such online games that are not aimed at the Swedish market.

“The Act and its preparatory work lack further concreteness regarding what is required for a gambling company to be considered to be targeting Sweden. This alone means the Court finds there were no conditions for Spelinspektionen to formulate the injunction against Zimpler.”

Cryptocurrency, he says, solves one of the main struggles faced by operators: having to rely on payment networks and banks.  

“One of the biggest challenges I always found as an operator back at FanDuel was payments, being reliant on Visa and Mastercard and being worried that provider might just disappear,” says Eccles.  

But with crypto-powered BetHog, he says, that reliance vanishes. “Those that own crypto tend to be more aligned with betting,” he explains. “They are younger, they skew male, they are risk seeking. There’s $4 trillion in crypto assets just sitting there and there’s nothing to do with it so I think that’s really exciting.” 

The problem with being a pioneer

Eccles is a master of jumping into a sector or venture during its embryonic stages, but there is a fair amount of risk attached to that he tells Tomic.  

“Being the very first is hard because investors are like ‘we’ve never seen anything like this before’ and they hate investing in new things.” 

When it comes to crypto betting and gaming, Eccles says BetHog is in no way a pioneer. He cites Stake as one operator that has “made enormous strides in this sector”.  

On product, Eccles talks up the company’s in-house games and the titles that are unique to them. He also digs into UX and UI and tackling prominent issues faced by players.

Early adoption comes to fruition

“The devil is in the details,” Tomic says on tackling UX/UI niggles. “The issues experienced are very broad.” Tomic also shares his experiences on being a first mover in virtual reality gaming via Alea’s first-ever virtual casino established in 2015.  

“We’re in 2025, 10 years later and we have to wait years for app stores to accept the gambling industry. So 2030 should be the year we have gambling apps available for VR.”  

Speaking to Katie Goldfinch in the iGB@ICE studio, Sparke says transformational developments such as the wave of gaming expansion in the US may totally reshape the market. However that doesn’t mean every business seeking to take advantage wins, as the dominance of a small number of market leaders across the US shows.

There are interesting markets emerging further afield. Sparke sees opportunities in sub-Saharan Africa and the wider Latin America region. As a large single market, Brazil may even provide enough room for multiple licensees to thrive, provided they localise effectively.

And what of AI? To Sparke, AI is being hyped across multiple verticals, but there is plenty of scope for it to become intrinsic to how the industry operates. Chatbots drove the first phase of AI growth, he says, but the second phase of real-time odds and fraud detection incorporates it deeper into the systems.

Phase three will be where AI-driven personalisation really takes hold and serves players with bespoke odds, Sparke adds.

In an exclusive interview hosted at the iGB@ICE studio, Entain CEO Isaacs shares his experiences in the industry and discusses the importance of empowering staff and holding them accountable.

Sitting down with Moti Malul, CEO of Aristocrat Interactive, Isaacs compares his long career in B2B with his most recent experiences at the helm of Entain.

Breaking down the behemoth business Entain operates, Isaacs says he views the business by platform, rather than market. “The bulk of the business is on the old Bwin platform and my biggest challenge at the moment is to get that platform modernised,” Isaacs explains.

“That platform drives the UK, Brazil, a lot of the European countries and BetMGM in the US. We’re in the process of giving the markets their own flexibility.”

More iGB@ICE Studio videos can be viewed on iGB’s Youtube channel.

Experiencing these creations, it was easy to picture a world where our everyday reality was just one of three, along with the augmented (AR) and the virtual (VR). Where the blockchain offered a new era of transparent gaming and where every household owned a smart fridge equipped with the latest betting apps.  

These days, however, many of these trends have fizzled out without a trace – and it’s hard to avoid feeling that the industry may have scaled back its ambitions. Have companies really lost their appetite for burgeoning technologies, or are they simply taking a more measured approach to exploring the trends of the future?  

Making the case for innovation 

Matt Howard, partner at consultancy firm Propus Partners and CEO of sports betting startup OrbitalBet, believes there are clear reasons for the death of many of the hot trends of the past decade.  

“What it always comes back to, for me, is what is the improvement you’re gaining or the problem you’re solving by building this new product feature or using this new technology?” he asks. “If you can’t answer that question, to be perfectly honest, then you’re probably not in a good place to start throwing money at those things.” 

For Howard, the short-lived excitement around VR is a case in point. When Google first launched its Google Lens headset back in 2017, many people expected widespread adoption among mainstream consumers – and not just hardcore gamers. Within the gambling industry, development teams looked for new ways to integrate this up-and-coming technology into their products, including VR headsets on their stands at major trade shows and conferences. 

“Unfortunately these things didn’t take off in the way the world expected them to,” says Howard. “Perhaps with the VR and AR stuff, the industry wasn’t necessarily asking for them. People weren’t sitting at home thinking that these were things they wanted to do with gambling.” 

Crypto and blockchain 

But not every new technology is ultimately deemed a bad fit for the industry. Other trends have proved to be a lot stickier – but only as far as operators are really in need of them. One of the best examples of this is cryptocurrency: a trend that has boomed both within the industry and outside of it. 

Since 2019, Bitcoin – the largest and best-known cryptocurrency – has risen in value by more than 2,500%, while numerous jurisdictions like Malta and Japan have incorporated crypto into their financial systems. In online betting and gaming, these currencies promise fast-paced, low-fee transactions that also have the benefit of anonymity, clear advantages for operators and their customers.  

But when it comes to blockchain, the technology underpinning crypto, the use cases are far less clear. “Loads of companies have looked at whether we should build an entire platform on blockchain. But what’s blockchain doing? Why is blockchain better than the technologies we’re using now?” asks Howard.  

Though blockchain promises highly secure payments and transactions, impracticalities emerge when you use it for the fast-paced world of betting. Operators process a huge number of bets within a short space of time.

This places immense strain on a system that creates a new block for every transaction – not to mention demanding immense energy resources. “Blockchain is a question that isn’t being asked,” says Howard. “It’s providing an answer that we haven’t needed in terms of sports betting as a whole. But it does solve a problem with payments.”  

Understanding customer needs 

For innovators in every industry, finding the next big thing is always in tension with meeting the consumer where they are. Although cutting-edge technologies may become popular and widespread over time, the public tends to move through phases when it comes to adopting these new trends.  

In Everett Rogers’ 1962 book, Diffusion of Innovations, the author charts five stages of technology adoption, with innovators and early adopters coming first and the late majority and laggards coming last. While innovators account for just 2.5% of the population, the late majority and laggards make up 50%.  

For Rich Criado, former VP of product development at US-based Fanatics Game Studios and Penn Entertainment, understanding the customer’s readiness for change is key to setting the pace of innovation.  

“In online casino there has been a lot of innovation in some areas and not so much in other areas – and a lot of that is due to the customer base,” he says. “If you look at mobile games or video games, those customers are more willing to accept big changes more quickly. Casino customers, not so much.” With VR headsets in the igaming industry, for example, there was a clear mismatch between the technology and the customers, he says. 

“The average casino customer is not going to put this giant headset on, hook it up to a computer, charge it, all the things you have to do just to play a game when they could just play on their phone,” says Criado. “So, it’s an interesting technology, but it’s not really feasible for 99% of the average customer base.” 

Incremental changes  

This doesn’t mean that change and innovation can’t happen in an industry like igaming, Criado says, but rather that it often happens in stages over time. “I don’t think the innovation is going to be some big giant new killer app,” he explains.

“I think it’s going to be incremental add-ons to what you see today, then gameplay innovations will stack on top of that and then if you look back in five years’ time, you’ll see a big difference. But as you went through it, the change was very gradual.” 

This has been the approach Criado has taken as an innovator in the young US market, introducing new features slowly over time and testing out what works with the audience. In some cases, this may be a multiplayer feature, in other cases, a crash game instead of a slot, or a new type of gamification.  

“These little things start to stack up and then you become like the EU market, right? The EU market has way more advanced games than the US market,” Criado says. “Much more like video games: very exciting and engaging and flashing and beautiful graphics. I don’t think the US market is ready for that yet, but they’re getting there.” 

Drivers of innovation 

Although some emerging technologies have failed to take off in the industry, some technologies – most notably artificial intelligence (AI) and machine learning (ML) – still have a wealth of untapped potential.  

According to Softswiss’ latest iGaming Trends report, stakeholders rated the importance of AI and ML as 8.2/10 for 2025, particularly in applications such as personalisation, decision-making automation and detecting problem gambling. However, Softswiss notes that operators should be selective in how they apply this technology. “In igaming the goal is not just to use AI for the sake of it, but to apply it with precision,” the report explains. “To stay focused and avoid shiny distractions.” 

Howard, whose OrbitalBet startup provides a customisable and highly adaptable sports betting platform for operators, agrees that AI and ML have huge potential. However, he says that legacy software often holds operators back when it comes to implementing it.

“With AI and ML, everyone knows that they should be looking at it,” he says. “You’d be wrong to ignore it. But it’s working out how to use it the right way and where it’ll make the most impact.”  

A user-centric gaming experience 

At major global operators, the trend towards personalisation has recently tended towards creating products that are uniquely flexible and customisable. At Flutter, for example, there have recently been trials in Colorado and West Virginia for a new betting product branded ‘Your Way Betting’. According to a spokesperson, the product utilises a “revolutionary new pricing model” that allows Flutter brands to offer customers “unlimited choice and flexibility in how they pick their lines”.  

Entain, meanwhile, recently relaunched their own Bet Builder product in the UK at the start of the Premier League season, offering a more customised betting experience for customers. As part of the company’s BetMGM joint venture in the US, the company also acquired specialised analytics company Angstrom Sports in late 2023, allowing them to increase the number of betting markets they offer fourfold year-on-year.  

This trend of acquiring forward-thinking, agile startups has also happened in the field of micro-betting, Howard points out. Back in August, for example, DraftKings acquired its specialist micro-betting supplier Simplebet in a deal believed to be worth up to $195m. 

“I think that innovation probably comes from the startups rather than the incumbents,” he explains. “People try things at smaller places and if that looks successful the bigger companies can do it themselves or they acquire the companies that are doing it.” 

Steep learning curve 

This has also been the trend in the US market, which has been dominated by major land-based casino brands since new igaming markets opened up in states like Pennsylvania five years ago.  

According to Criado, what was missing at the start of the US’ journey were features that boosted user engagement, such as tournaments, leaderboards, bonuses, free spins, progressive jackpots and other metagame mechanics. But these were all much more prevalent at this year’s G2E.

“I think the big players have received the feedback that we need to provide not only the base game but also the tools that allow operators to increase retention and increase engagement in their games beyond just the game itself,” he says. 

However, Criado believes the industry still has a long way to go in terms of innovation. For example, igaming operators still haven’t worked out how to transfer the excitement and social atmosphere of a brick-and-mortar casino into an online setting. Although MGM and Playtech have taken a big step towards this by streaming live games from MGM casino floors in Las Vegas. 

“I think whoever can figure that out and do it well is going to be a big winner in the next generation of operators and content providers,” Criado says. Whether that involves VR headsets remains to be seen. 

Attracting a new generation 

For Criado, who started his career at Disney and Carnival Cruise Lines, maintaining an outsider’s perspective is key to driving genuine innovation in the industry. He suggests taking inspiration from games like Fortnite, Minecraft and Grand Theft Auto, “who often do gambling mechanics better than gambling operators”. 

Although this is much easier in a far less regulated industry, the product expert recommends looking at the experiential aspects of these games and where developers make money without changing the core gameplay, such as selling skins on games like Fortnite. Innovating in this way could well be key to the industry’s survival, particularly when it comes to attracting younger generations.

“Older millennials are starting to hit 40, and they’ve grown up with video games where they control the outcome. So are they going to be interested in a game where the primary gameplay is just pressing a button over and over again? Probably not,” he says.  

Looking to the future

Creating a sense of control in a game of chance comes with its own challenges, of course, but it is possible. During his time at Fanatics, Criado worked on a game called Field Goal Frenzy in which players aim to kick at the goal on a virtual American Football field. To make the experience more interactive, the player can choose how far away they want to stand from the goal, with higher distances equating to a lower likelihood of winning but a higher jackpot. 

“It’s not control over the mathematical outcome of the game, but it still feels like as a player I have more control over my overall experience, which is ultimately the key,” Criado explains. 

This type of playful experiment could be the way for the industry to look forward, not just to new technologies, but also to new types of players and new generations. 

While the audience may not be demanding this type of experience right this minute, it could be a crucial innovation when a new group of players starts exploring casino products in five or ten years’ time. “The thing that excites me the most right now is that the runway that’s in front of us for innovation is so great,” says Criado. “And we haven’t even started, to be honest.”  

When transactions made using the instant payment service Pix through Nubank are classed as related to gambling, the bank displays an on-screen message saying: “How about saving this money? Some of these games are legal in Brazil, but there are no guarantees of winning. By saving this money instead of betting, you can be sure that it will yield results without any worries.”

While users can still complete the transaction, the ANJL claims the message from Nubank still violates the principle of economic freedom in Brazil and acts against the regulated betting sector in Brazil, which launched on 1 January.

“We reiterate the need to respect current legislation and a balanced and fair treatment of all legal economic activities,” the statement read.

“For the entities, the measure is discriminatory, violates basic principles of economic freedom and goes beyond the bank’s role as a regulated financial institution.”

Warning not triggered for other potentially harmful activities

The three bodies also call into question the fact Nubank is currently only issuing the message to gambling-related transactions. It does not do so for other activities linked to harm, such as cigarettes and alcohol.

In the ANJL’s view, this is both unfair and in contravention of Law No 12,865, published in October 2013.

Item III in Article 7 of Law No 12,865 states payment institutions should observe the principle of “non-discriminatory access to the services and infrastructure necessary for the functioning of the payment arrangements”.

The ANJL questions the selective nature in which Nubank is applying such alerts, with no similar messages for other purchases that could cause addiction or damage to health.

No messages from Nubank for illegal operators in Brazil

Additionally, the ANJL is critical of Nubank for only issuing the anti-gambling message for transactions made with licensed sites. This threatens the regulated betting market in Brazil, the trade body argues.

Betting’s legalisation in Brazil is supported by Laws No 13,756/2018 and 14,790/2023, as well as a string of regulations set out by the Secretariat of Prizes and Bets (SPA) in 2024.

The three bodies claim Nubank’s failure to trigger the warning for illegal operators is “aggravating the problem and discouraging the migration of consumers to properly regulated operators”.

ANJL president Plínio Lemos Jorge explained: “It makes no sense that the alerts are not activated for these illegal operators, making the scenario even worse instead of helping to strengthen regulation in the country.”

Kalshi prevailed in federal court against the CFTC last year by arguing that offering the contracts did not equate to gaming. The exchange lists the yes-no contracts with percentage odds and matches opposite contracts to each other. It then makes money on trading commissions. After Kalshi’s victory, multiple other well-known exchanges rolled out prediction markets, including Robinhood and Crypto.com.

The CFTC argued it was not equipped to be America’s “election cop” and vowed to appeal the ruling. While the commission had already been working on rule changes to ban election betting, the fact that it hadn’t done so already was seen as a detriment to its argument.

CFTC chair’s departure sparks uncertainty

On 19 December, federal lawmakers took their own step by introducing legislation that would ban election betting.

But CFTC chair Rostin Benham announced his resignation from the commission on 7 January. Notably, his last day will be 20 January, the day of president-elect Donald Trump’s inauguration. Benham had been with the commission since 2017 and was appointed chair in 2021. While the consensus is that Trump has eyes on crypto reform, his stance on the controversial prediction markets is unknown.

In the wake of the elections, Kalshi looks to have gotten creative in its subsequent contract markets. The site now lists innumerable yes-no wagers on politics, finance and pop culture. Below are some we found curious or noteworthy.

Politics and legislation

Now that Trump is set to take office, a litany of contracts related to his presidency are available. Some seem ridiculous at first glance, but it’s clear that traders are not afraid to wager on Trump’s various musings.

Over $315,000 has been wagered on whether Trump will buy at least part of Greenland. That’s currently listed with a 27% probability. In response to his hardline stance on immigration, over $78,000 has been wagered on the number of deportations in his first year in office. As of writing, the favorite is 500,000+, at 54%.

In the broader political sphere, there are also contracts tied to legislation. Markets for when the house and senate might pass reconciliation bills both have more than $215,000 staked. Gambling stakeholders might keep an eye out for contracts tied to states passing legislation, as those discussions are reaching a fever pitch.

Finance and economics

As a financial exchange, it makes sense that Kalshi would grow its markets related to finance and economic policy. Among the biggest contracts, at the time of writing, $25 million is staked and tied to Federal Reserve rate cuts. Traders are wagering that the Fed will hold rates steady at 4.25%-4.5%, as has been speculated of late.

Similarly, more than $6 million is riding on the total number of cuts for 2025. Zero cuts is currently the favourite, followed by one cut and two cuts. Inflation and consumer price index (CPI) predictions also litter the site.

The question of whether or not Costco will raise the price of its hot dog combo before next year has garnered just under $30,000. There has been $54,000+ wagered on egg prices in the next month.

Sports and pop culture

From a gambling industry perspective, pop culture is perhaps the most interesting market. This is not necessarily because of entertainment and music offerings; rather, it’s because of sports-related contracts.

The American Gaming Association (AGA) and several former gambling regulators have previously declined to comment on prediction markets to iGB, partly due to a lack of information but also because of the sentiment that if not’s sports betting, it’s not on the industry’s radar.

Yet Kalshi now features contracts related to head coaching vacancies for NFL teams. Traders can bet on who the Jets, Raiders, Patriots, Jaguars, Bears and Saints will hire to lead their teams and those markets are not available from regulated sportsbooks. Media articles speculating about future hires often feature odds from unlicensed sites.

There is currently about $175,000 riding across all six contracts and the larger those sums get, the more the industry will likely take notice.

At a 13 December press briefing, ministry officials announced the arrests of 846 people swept up in five raids linked to 100 “underground banks”, reports the China Daily.

Chen Shiqu, of the MPS criminal investigation department, said the banks were involved in transactions worth RMB80 billion (£8.68 billion/€10.472 billion/$11 billion).

The ministry has also identified 263 organisations suspected of related crimes, including fraud.

Post-pandemic spike

According to a special report in Macau Business, such operations have increased since the end of the Covid-19 pandemic. Macau shut down intermittently for almost three years during the crisis. In January 2023, when the borders reopened, gamblers returned in droves to its dozens of casinos.

Government figures show that police intercepted almost 12,000 people involved in illegal money exchanges last year, up a whopping 239% over 2022 and 41.3% over 2019.

Gaming law expert António Lobo Vilela called the surge “the elephant in the room that nobody wants to see. This growth is definitely linked to the void created by the disappearance of junkets, whose activity was worth something like $17 billion in 2019.”

These shady operations aren’t new, added lawyer José Abecasis. People are always “attempting to circumvent China’s restrictions on capital flows out of the country”, he said. But the activity flourishes in Macau, where gaming “is the main economic driver”.

Beyond casino doors

Officials say illegal money exchanges contribute to greater lawlessness, leading to theft, money laundering and illegal immigration. They also have spread beyond the gaming industry, infecting society at large.

Peng Peng, executive director of the Guangdong Society of Reform, told the South China Morning Post: “The illegal money-exchange business might have stemmed from the gambling industry, [but is now] a very common channel for corruption and illegal money outflow.

“To protect China’s financial security, tackle corruption and prevent the illegal outflow, the government needs to hinder” bogus banks.

In October, the Macau Legislative Assembly (AL) passed legislation making it a crime to run an unlicensed currency exchange. The amended Law on Combatting Gambling Crimes includes prison terms of up to five years for offenders. Individuals convicted of such crimes could be banned from entering city casinos for up to a decade.

The legal market is due to launch on 1 January 2025, but with that go-live date now just over two weeks away, the threat of illegal operators is still lingering.

Could illegal competition force licensees out?

The ANJL previously revealed over 2,000 illegal sites are still operating in Brazil. Carlos Baigorri, the president of the National Telecommunications Agency (Anatel) has warned its attempts to block these operators are like “mopping up ice”.

If Brazil doesn’t find a more effective way to clamp down on the black market, Lemos Jorge feels legal operators may turn their back on offering bets in Brazil. This would further illegal competitors, he warned.

“This risk does exist if the illegal market is not effectively combatted,” Lemos Jorge told UOL Apostas. “If investors assess that the market scenario is not favourable to the expected returns, those who are already here may certainly leave the country.”

The rise of illegal operators could have hugely detrimental consequences in regards to player protection.

“Illegal websites negatively impact the industry and society itself in several ways,” Lemos Jorge explains. “The main one is predatory and unfair competition, since these platforms will not collect taxes nor will they have the costs inherent to the entire structure necessary for installation and operation in Brazil.

“Furthermore, these are companies that wish to remain underground, without any concern for the well-being and health of bettors or the protection of children and adolescents.”

What measures could be taken in Brazil?

Anatel president Baigorri called for the agency to be given increased powers to aid its site blocking efforts. Last week it signed a cooperation agreement with the SPA to enhance their collaboration.

The ANJL and Anatel met last week to discuss what further measures could be taken. Those suggestions are due to be released in the coming weeks.

In Lemos Jorge’s view, Anatel requires more power to make its blocking attempts more effective, saying: “It will be necessary to give Anatel greater autonomy to block. This autonomy should come through a specific law.

“With Anatel’s greater autonomy, the blocking process will be much faster. As soon as the illegal site is detected and Anatel becomes aware of it, the blocking will be carried out, thus preventing the site from having a long life and causing losses to bettors.”

Payment blocking a promising alternative

With Anatel struggling to ensure all illegal sites are removed, payment blocking has been highlighted by some in the industry as a more effective measure to combat the black market.

Aposta Ganha CCO Hugo Baungartner previously told iGB the “only way” to block illegal operators was through payment blocking, with site removal ineffective as unlicensed domains pop up almost as quickly as they are taken down.

Pix is an instant payment system regulated by the Central Bank, widely adopted by Brazil’s gambling industry due to its ability to facilitate transactions in under 10 seconds.

Under the new betting regulations in Brazil, payments made via Pix to unlicensed operators will be blocked.

Lemos Jorge agrees payment blocking will form a key part of the government’s strategy to counter illegal companies.

“It is of utmost importance to combat the payment methods that allow the illegal sites to operate,” Lemos Jorge added.

“They must also be part of this fight, since, according to the legislation, any financial institution that agrees to operate transfers to illegal platforms, not authorised by the federal government to operate in Brazil, will also be committing an illegality.”

Lemos Jorge still has faith in Brazil betting

Despite the ongoing illegal operator concerns, Lemos Jorge remains confident the regulations set out by the SPA will ensure a safe environment for betting in Brazil.

“The regulatory framework approved by the national congress through Law 14,790/2023 and detailed by the SPA, through the publication of various ordinances, is one of the most rigorous and complete in the world,” Lemos Jorge said. “This is a consensus within the industry itself.

“However, a strong oversight system that works in practice is necessary. We are confident that Brazil will have this through the actions of several stakeholders, both from the government and the private sector. This joint effort will be essential to stop illegal betting activities, or at least reduce them as much as possible.”

A Police Board report dated 20 April 2024 said the regulation sought to limit “the accessibility of gambling offers outside the regulation of the Lotteries Act, to the extent that the offer is marketed in violation of the Lotteries Act.” 

Blacklisted companies are unable to carry out transactions with Finnish banks, payments providers and players.  

BML’s case dates back to May 2023, when it was found to have targeted Finnish players via marketing and advertising campaigns in violation of the Finnish Lotteries Act. The court fined BML Group €2.4m (£2.1m/$2.6m) and banned it from marketing its gambling services.  

It was subsequently blacklisted in February. However, it appealed the ruling in Finland’s Supreme Administrative Court, but lost its case. According to the updated list, BML will stay blacklisted until 19 October 2025. Bans can be run for a maximum of 12 months but can extend for 12 months at a time.

Speaking to iGB Antti Koivula, local lawyer for Legal Gaming, said the outcome stems from prolonged unauthorised operations in Finland.  

“While the resolution of this case unfolded as expected, the more intriguing question now is who will be next to join BML on the black list,” Koivula said. 

Finland is preparing to launch a competitive online gambling market in January 2026. The government’s new legislation is in the process of being reviewed by the European Commission. It will be put before the Finnish parliament next year.

Payment blocking effective as black market solution 

Payment blocking is one of few measures proving effective against illegal gambling operators.  

In Germany, payment blocking is reaping results, particularly with the support of administrative court rulings.  

Germany’s Halle Administrative Court upheld regulator Gemeinsame Glücksspielbehörde der Länder’s (GGL) move to block an unnamed Swiss payment provider from processing transactions to unlicensed gambling operators in October

In a recent interview with iGB Simon Priglinger-Simade, vice president for German trade body association DOCV, said: “We hear from the GGL that they see a real impact in payment blocking. Many of the [unlicensed operators] are not able to receive payments services anymore. It means this seems to be the best enforcement option at the moment.”  

Stakeholders in Brazil’s betting market have also supported the country’s plans to block illegal Pix payments once the licensed market launches in January. Pix is an instant payment solution widely active across the sector.  

Although it did not provide any details or a specific date for the incident, the supplier said cautionary measures to mitigate it have been implemented. It does not expect the incident to have a material adverse impact on forecasted results for the second half of its 2024 financial year.

Ainsworth on track for growth in H2

In the same statement, AGT set out preliminary management forecasts for H2. For the six-month period, it expects pre-tax profit to range between AU$8 million (£4 million/€5 million/US$5 million) and AU$10 million.

This, AGT said, reflects positive momentum achieved across the business. On this, it also said revenue is likely to increase by 12% from the $121 million reported in the first half.

Setting out some details of its H2 performance, it said all geographical regions saw growth. However, the digital segment reported an initial decline due to reduced contributions from GAN. AGT terminated its agreement with GAN for the exclusive licensing rights to distribute the former’s online slots in the United States on 31 March.

AGT also said that H2 gross margins are set to be lower than H1, which will like lead to lower profitability. Margin for the full year is estimated at 62%, compared to 67% during the first half.

In addition, AGT said the cost control initiatives previously implemented ensured overheads were maintained at similar levels to H1. This is despite it expecting to report higher revenue for the period.

CEO expects growth to continue into 2025

Commenting on the preliminary results, CEO Harald Neumann said he is “encouraged” by the expected rise in revenue. He added that similar growth will likely be seen during the periods that follow.

“The development initiatives previously undertaken are having progressive improvements in game performance within our markets. Additional game releases and hardware initiatives are expected to maintain the growth experienced in coming periods,” Neumann said.

Up to 93 operators and 205 brands are awaiting licence approvals from the SPA. Once these are granted in the coming weeks, operators will be required to pay the relevant licence fees ahead of relaunching their products. This process of migrating data and player funds can only be carried out by operators approved to operate during the transition period before the legal market’s launch.

Bettors will need to approve the migration of their accounts and data once operators are licensed. This will require players to utilise facial biometrics to prove their identity. They must also register a viable bank account with a payments institution authorised by the Central Bank of Brazil.

Should the bettor not accept the transfer of their funds to a new authorised platform, or the operator they bet with doesn’t obtain a licence, bettor funds must be returned to them by 31 December.

How can companies transfer bettors’ data and funds in Brazil?

Companies seeking to migrate player data to their licensed operations must place a formal request to do so with the SPA, by 13 December.

The request must be signed by the same legal representative that signed the company’s licence application and can be made once the company’s BRL30 million (£4.1 million/€4.9 million/$5.2 million) licence fee is accepted by the regulator.

The SPA will have 15 days from the date the request is made to decide whether to approve it, although that can be extended by a further 15 days if the information provided is insufficient or clarification is needed from an operator.

Companies will be required to present the list of participating bettors, all of whom must consent to their funds and data being migrated to the new licensed platform.

Bettors will have until 31 March 2025 to access their account with the unlicensed platform to withdraw funds or accept the transfer of their funds to the licensed operator. However users cannot place bets or access an operator’s product from 1 January 2025, until they have had their data and funds migrated.

Funds that remain unclaimed by 30 June 2025 will be transferred to national charities, the Student Financing Fund (Fies) and the National Fund for Public Calamities, Protection and Civil Defence (Funcap).

Bettors have until March 2025 to withdraw funds from unlicensed operators

Companies will not be allowed to transfer funds and data if they don’t achieve authorisation to operate in the legal market in Brazil. Additionally, entities that don’t request or achieve approval to transfer resources will be prohibited from doing so.

Such companies will be required to transfer resources from bettors’ accounts to a deposit or payment account previously registered by the player.

Bettors can be reimbursed via the most recent bank account they used with an operators during the October to January transition period.

If that’s also not possible, by 31 March 2025 the entity must make efforts to contact the bettor to provide details for a bank account at an institution authorised by the Central Bank.

The SPA will be able to request information from the companies that weren’t able to return funds to bettors for monitoring and inspection. Those companies could then be subject to sanctions.

As of Wednesday (6 November) morning, the platform looks to have taken in more than $700 million (£542.5 million/€651.5 million) in contracts for this election cycle. Nearly $430 million was staked on the presidential race.

On 15 October, the overall total was $15 million. On 3 November, it was $250 million.

Kalshi successfully argued in court twice that the contracts did not involve gaming. With its rulings in hand, it then aggressively marketed its offerings in the lead-up to the election. It did so by frequently referencing the word “bet”, which seemed contrary to how it was approved. Regardless, Americans did not hesitate to pounce on the opportunity to stake real money on a legal platform for the first time. And while Kalshi is currently the only legal prediction market in the US, others prospered as well.

Polymarket is a grey-market, crypto-based prediction market that is technically barred from use by US users. It took in over $4 billion in election contracts. PredictIt is another grey-area platform based in New Zealand. It also likely took in over $1 billion due to the amount of “active shares” listed multiplied by its $850 contract limits. Both were referenced ubiquitously by media outlets despite the legal scrutiny surrounding them.

Prediction odds proved correct

The legality of prediction markets is far from settled, with more legal challenges expected. But one thing they did do was correctly predict the election outcome and the margin of victory.

One of Kalshi’s arguments in favour of allowing prediction markets is that they could be “a powerful tool” to fight election misinformation. Hard data, the company said, is more reliable than traditional polls.

Trump was a heavy favourite on all three prediction platforms for weeks leading up to official results. On Kalshi, his lead ballooned to a high of 64%-36% in late October. Conversely, nearly all traditional polls, including FiveThirtyEight, long-listed democratic candidate Kamala Harris as a narrow favourite.

The gambling-centric messaging from prediction markets may draw the ire of the gaming industry, but the accuracy of the predictions themselves will likely be a feather in their cap.

On 2 October, the US Court of Appeals for the District of Columbia ruled in favour of Kalshi, a New York-based exchange whose senate- and house-related contracts had been delisted by the Commodity Futures Trading Commission (CFTC) in June 2023. The CFTC argued unsuccessfully that the contracts involved gaming due to their speculative nature.

Kalshi, meanwhile, leaned into arguments that have similarities to those used for legalised sports betting. The company argued that regulated, legal marketplaces are safer than black- or grey-market alternatives. It highlighted the accuracy of real-time data tracking in a world of election misinformation. It also argued that financial incentives would translate to higher levels of civic engagement.

Kalshi eclipses $250 million in contracts

It will take time to truly assess the accuracy of those arguments. Yet one thing is clear right now: Americans have wasted no time placing their trades – or bets – on this year’s races. On 15 October, there were about $15 million (£11.5 million/€13.8 million) worth of political contracts on Kalshi. As of Sunday (3 November), that number had grown to over $250 million.

The presidential election is the largest market on the site, with $184 million in contracts as of 10pm ET Sunday (3 November). That number increases with each refresh of the site. Other markets with several million at stake include electoral college margins, popular vote predictions and individual state results.

Ironically, the contracts for which party will control the senate and house, which were the original futures targeted by the CFTC, are among the lowest-dollar markets. Both had generated less than $1 million as of Sunday night.

Millions on Kalshi, but billions elsewhere

For as eye-popping as Kalshi’s numbers are, they pale in comparison to the totals found elsewhere. The king of prediction markets is Polymarket, which was mentioned by name in court by both Kalshi and the CFTC.

Polymarket is a grey-area, crypto-based platform that has garnered more than $3 billion in political contracts for this cycle. It is also based in New York but is technically not available to US users due its own CFTC scrutiny. Unlike Kalshi, Polymarket is not registered with the commission, which would make it harder to become regulated, according to Fortune.

The other elephant in the prediction markets room is PredictIt. That platform is operated by the Victoria University of Wellington in Wellington, New Zealand. The university has contended that the platform is “a research and educational tool for the international research community”, but the CFTC moved in March 2023 to withdraw the “No Action Letter” under which the site was operating.

In a note to traders at the top of the site, it acknowledges the legal limbo currently surrounding the markets.

“PredictIt traders may continue to hold and trade existing contracts pending further consideration by the Fifth Circuit Court of Appeals and the CFTC,” the note reads. “There remains the possibility that a judicial or administrative decision may require early termination of those contracts. We have no certainty as to the timing of any such decision.”

PredictIt does not list the dollar amount of contracts like Kalshi and Polymarket, but it currently lists 10.9 million “active shares” on the presidential election. Unlike the other two, PredictIt has a limit of $850 per contract. Using that number as a baseline would indicate that there are billions in active shares.

From investing to trading to betting?

Now that Kalshi lays claim to the title of the only legal, regulated prediction market in the US, its messaging seems to have changed from what it argued in court.

In its defence against the CFTC, the company successfully argued that its contracts were an economic tool to hedge political risk. Its attorneys spent hours contesting the commission’s notion that the contracts involved gaming, and the words “betting” and “gambling” were supplanted with “investing” and “trading”.

Yet the bio for its X account now reads: “The first legal way to bet on the election in America.” In a video posted to its Instagram account on 14 October, CEO Tarek Mansour was interviewed about the platform while walking through Times Square.

“I’m the founder of Kalshi,” he said. “It’s actually an app and a website where you can bet on anything. We’re the first platform that legalised betting on the US election.” He then stops to admire a Kalshi billboard overlooking one of America’s busiest streets in New York, the largest legal online sports betting market by handle and tax revenue.

There have also been advertisements on the country’s busiest gaming street, the Las Vegas Strip.

Promotions and nationwide mobile apps

At the 34-minute mark of a 26 October interview between famed comedian Tim Dillon and vice presidential candidate JD Vance, Dillon breaks off into a Kalshi ad. The ad script, like Mansour’s video, references the word “bet” throughout. But perhaps the most interesting part comes at the end, when Dillon relays the terms of an apparent promotional bonus like those commonly seen in online gaming.

“Sign up using kalshi.com/Tim and get a $20 bonus when you deposit $100 using the mobile app,” he said.

Speaking of the mobile app, it currently sits in first place on the “finance” chart of Apple’s App Store. It ranks ahead of Cash App, PayPal, Zelle, Venmo and other well-known financial platforms. It is sixth on the entire marketplace, ahead of Instagram, WhatsApp, YouTube, Facebook and others. Polymarket is at 32.

Unlike the of state-by-state framework of betting regulations, prediction markets are legal nationwide. This includes notable non-gaming states like California and Texas. The markets do not generate state tax revenue and despite the recognition of trading as a potentially addictive activity, there are no trading guardrails other than insufficient funds.

Robinhood enters the fray

When defending its decision to delist Kalshi’s contracts, the CFTC warned that more prediction markets would come if allowed. That warning came to bear on 28 October, when stock trading platform Robinhood announced it would offer election event contracts to US citizens.

As sports betting investor Chris Grove wrote on LinkedIn, Robinhood’s emergence could change the conversation. Its size and influence could start to make gambling stakeholders nervous, especially as the fights against sweepstakes and DFS 2.0 continue to take up most of the available head space.

“Robinhood towers over US online betting companies by many key metrics,” Grove wrote. “As of 2Q24, Robinhood had 24.2 million customers with funded accounts and 11.8 million active monthly users. Two million of those users pay a subscription fee to access premium features under Robinhood Gold…. For reference, FanDuel reported 3.46 million monthly users during 2Q24.”

Projection accuracy could be key factor for Kalshi, others

Ultimately, the accuracy of prediction markets’ projections could be a feather in their cap. Kalshi has asserted that its odds could be “a powerful tool to fight misinformation”. That said, there are big discrepancies between prediction odds and traditional polls.

On Kalshi, Republican candidate Donald Trump has been the favourite for several weeks. One exception came on 2 November, when Democratic candidate Kamala Harris took a brief lead before Trump went back in front. As of writing he is a 52%-48% favourite over Harris, but this lead was as high as 64%-36% on 29 October. On Polymarket, Trump is listed as a 54%-46% favourite over Harris.

Conversely, traditional polls have been much closer. FiveThirtyEight, an oft-cited statistical site, currently has Harris as a 48%-47% favourite over Trump. Harris has led the poll since late July. Harris is also a 49%-48% favourite in the New York Times poll and has led that poll since early August. Should Trump win and prove the prediction markets right, that could give them substantial legitimacy.

Limited industry response thus far

Multiple former gambling regulators declined to comment for this story, citing a lack of knowledge on the issue. The American Gaming Association has also previously declined to comment on prediction markets to iGB.

Overall, there has been limited response from the regulated gambling industry. This is in part due to how quickly things have ramped up following the appeals court’s decision, as well as the other issues currently dominating industry discussions.

But as Las Vegas-based consultant Brendan Bussmann argues, the change in messaging will likely start raising some eyebrows. The fact that Kalshi and others “are all over the place flaunting betting, but didn’t get approved as if they’re a bet,” he said, is problematic for a highly regulated industry like gaming. The discrepancy in this development between state and federal law also makes things murky.

“I don’t know of a state that doesn’t ban wagering on elections,” he said. “And that is completely contradictory to what is transpiring at the federal level. So at some point, somebody has to sit here and say which is right.”

In the weeks since the Kalshi ruling, the CFTC has said it will continue its fight against political contracts. It is said to have been developing new regulations specifically targeted toward those markets. Yet its failure to do so already was a key factor in judges’ decision to allow the contracts. Future legal battles are expected, but not before votes are cast in the most influential political event in the US and arguably the world.

My introduction to the world of payment solutions began long before I realised it had. It all started with engaging conversations around financial regulations at the dinner table, overhearing my dad discuss the intricacies of payment ecosystems with his business partners and running around his office while he solved complex financial problems.  

While I didn’t realise it at the time, these interactions were transformative. They not only initiated my understanding of payment systems but also ignited the entrepreneurial spirit within me.  

Fast forward a few years and, post-graduation, I joined my father in his work. Under his guidance I delved deep into the multifaceted realm of the payment industry and honed my skills in creative problem-solving. 

I really excelled at problem-solving. I was excited by the prospect of tackling complex issues for our clients, taking everything I had learned at a young age and throughout my education and applying it to real-world settings.  

After several years of this, I decided to start a business for myself and founded Approvely in 2020. As a payment solutions platform, Approvely aims to help businesses across different industries. However, it quickly became clear that one industry in particular had many payment problems that needed solving, igaming.  

Finding an industry in need

A recurring theme I have encountered in the igaming sector is that it tends to find its people, not vice versa. I was initially drawn into the world of igaming through daily fantasy sports (DFS) and sweepstakes. My early clients approached me because major banks and payment platforms were making their lives extremely difficult, asking for huge fees from them upon launching.  

Many entrepreneurs shy away from the gaming industry, especially DFS and sweepstakes, but I saw this demand as a chance to innovate and to help solve these increasingly complex problems. It was an industry that spoke to my inner problem-solver and, before I knew it, it had become one of the key focuses of my business.  

The further I ventured into igaming, the more I realised how expansive it was. Gently pulling on one string quickly unraveled a complex web of different verticals, pain points and, most importantly, opportunities.  

From this point on I pivoted and the igaming industry became my primary focus. As a new entrepreneur in the space I set out to learn as much about the industry as I could. I discovered an emerging industry with huge potential, one that presented real opportunities to develop and grow my business.  

I attended events, built contacts and began to identify major issues for operators. If you are going to solve a problem, you need to really understand it and I found the best way to do so is to meet people and talk about their issues personally.  

Complex regulations plague payments in igaming

Few industries have as many problems that need solving as igaming. Regulations are becoming increasingly complex as US states attempt to determine exactly where they stand. Many states are still in the teething phase regarding regulation, meaning we are seeing a constantly shifting landscape that can be tough for operators to manage. 

North American markets feels as though they are learning as they grow. In the US, the market is still maturing and the significance of compliance and safety is only now being realised.  

A major part of my journey has been recognising this and helping my clients to overcome these challenges. This has also seen Approvely find solutions outside of just payments, by partnering with groups like GambleID, which provide compliance services as a complete platform for customers.

I have worked hard to foster a culture of collaboration within my company, actively seeking feedback from partners. One thing I learned from my early years working with my father was the power of feedback. Holding key conversations with your partners and listening to their problems will go a long way to helping you become successful. You need to be able to leave your ego at the door, address any problems you encounter and grow as a team.  

Constant evolution  

One of the biggest challenges of building a business in the igaming industry, especially in the US, is the constantly shifting regulatory landscape. I have discovered that success in this industry demands innovative thinking, staying ahead of regulatory developments and establishing strong connections with industry experts to manoeuvre through its intricate complexities effectively.  

Igaming continues to find new ways to test me. It has become a place where, as a natural entrepreneur, I can continue to grow and hone my skills. During my first few years in the sector I learned several key lessons. Firstly, when the opportunity comes knocking, answer the door. The more I explored, the more the industry opened itself up to me and the greater the opportunities became.  

I’ve also learned the importance of playing to your strengths and surrounding yourself with the right people. Identifying what you excel at and refining those skills can significantly accelerate your business growth. Recognising where you don’t necessarily excel is also important and that is where having the right team helps.  

Finally, I have learned to always trust my instincts. The industry’s complexities mean you are constantly facing new and novel challenges, as well as situations that challenge you morally and professionally. How you handle these situations and the way you deal with the people around you will shape you and your business.

Around $325m was wagered with operators using Simplebet’s microbetting products, with the company offering 86 unique in-play markets during the NBA post-season.

Following Simplebet’s third season of consecutive growth, DraftKings announced it had reached an agreement to acquire the microbetting specialist.

The landscape of sports betting in the US since the 1992 Professional and Amateur Sports Protection Act (PASPA) was repealed in 2018 has been one of constant evolution, and in-play has been cemented as a key part of many operator strategies.

This season offers another opportunity for companies to capitalise on that growing demand for in-play betting, tapping into bettors’ psychological desire for instant gratification.

For Leo Gaspar, chief business development officer and co-founder of provider Huddle (and former Simplebet EVP for sportsbook product), the popularity of daily fantasy sports (DFS) prior to the overturning of PASPA is playing a role in the continued prominence of player props.

“When PASPA got repealed, all this stuff became very, very popular because you had to create additional content to engage the audience,” Gaspar tells iGB.

Could in-play exceed pre-event betting?

Such is the rising popularity of in-play betting, some in the industry feel it could one day start to outpace the number of bets made prior to games getting under way.

One such person is Matt Howard, partner at Propus Partners, who agrees the impact of DFS and the link with player statistics has led to a rising betting interest on in-play markets.

“It’s just following the same trend that the rest of the world has, that live betting grows and grows and probably takes over pre-event at some point because that is what every other region on the planet has done eventually,” Howard explains.

“Basketball generally is a good sport for in-play betting because of that quick bet and return. There are small defined events within the event that you can bet on.”

Despite the increase in popularity, Sportradar notes the US still falls behind other parts of the world for in-play betting, although the company expects that to grow particularly in the NBA, with which it holds an exclusive partnership.

“In the more mature global sports betting market, in-play betting represents 70%-80% of all bets placed, but only approximately 35%-40% of bets placed at the moment in the US,” Sportradar SVP of fan engagement Patrick Mostboeck says. “As the US market evolves and betting habits continue to shift towards those of the rest of the world, in-play betting will continue to grow.

“The NBA represents an especially attractive sports property for in-play betting due to the rapid pace of play and high number of scoring opportunities and lead changes, giving bettors more opportunities to get in on the action and engage with their favorite NBA teams and players.”

What are NBA fans betting on?

One operator placing a real focus on in-play is FanDuel, which has long been battling at the top of the US sports betting market alongside DraftKings, largely down to the rich DFS history of the two companies.

It’s a strategy not exclusive to the NBA, with FanDuel revealing 25% of bets made across the 2023-24 NBA and NFL seasons were on live action.

In 2023, FanDuel unveiled The Pulse, a new product which adds in-play markets relating to the key storylines ongoing in the NBA, aiming to make the betting experience more engaging for fans.

“As the action unfolds, new bets are added to the feed in a narrative-driven format, offering fans a simple and streamlined path to discover what is happening in a game in real-time,” FanDuel sportsbook general manager Karol Corcoran tells iGB.

“Sports fans are increasingly drawn to player narratives and opportunities to engage with their favourite athletes. We’re able to offer fans the betting opportunities they are looking for in real time and have seen the corresponding growth in engagement.”

In terms of what players are betting on in-play, Corcoran says it remains the typical markets providing the most engagement.

“Core markets including moneyline, spread and point total as well as player point totals and three-pointers are popular for in-play betting,” Corcoran adds. “Customer demand will continue to drive our offering.”

As the in-play market matures, Sportradar is expecting to see a change in betting behaviour as betting companies evolve their strategies to meet players’ desires.

“As we continue to innovate the in-play betting category, we expect to see live player markets and micromarkets grow in popularity,” Mostboeck adds. “The fast-paced nature of these bet types add to the excitement of the NBA.”

Personalisation a key factor

To capitalise on the explosive rise in popularity of NBA in-play betting, personalisation will continue to be a core consideration for operators as they look to tailor offerings to individual bettor preferences.

Gaspar describes personalisation as “huge” for in-play, with Howard agreeing on its importance while also outlining his belief that it’s an area operators can make progress in.

“It’s [personalisation] we truly do believe in,” Howard says. “I don’t think the industry has even touched on it, particularly in sports betting where we can get true personalisation. There are the foundations of it in some places, but for true personalisation, customer groups of one, that should be the target.

“The battleground will become front ends, UIs, and personalisation. Generally speaking, the betting content is the same, so it’s how do you show players in a way that attracts them? Housing customers in segments and then showing them the things they’re actually interested in is the future.”

Sportradar innovating to meet demand

Personalisation is at the heart of Sportradar’s NBA plans, which it laid out in a media briefing last week. Its Virtualised Live Match Tracker transforms real-time data into personalised streams for fans, while its 4Sight streaming service will now be available for basketball, having initially launched for tennis.

Additionally, its over-the-top solution emBET, which was integrated into the NBA’s League Pass streaming service at the back end of last season, will continue to show fans sports betting content such as point spreads and over-unders on the platform to elevate the in-play betting experience.

“Hyper-personalisation is key for attracting and engaging the modern sports fan in a digital-first world,” Mostboeck explains. “Fan expectations worldwide have shifted to prioritise personalised, bite-sized content across a variety of platforms.

“Sportradar is leveraging our capabilities across GenAI and machine learning to enable the NBA and our clients to adapt with these shifting expectations and provide basketball fans with an interactive, hyper-personalised viewing experience.”

The impact of tech on personalisation

As Gaspar and Howard mention, the future of in-play betting will largely be driven by personalisation and the tailoring of offerings for bettors, which technology can help with.

However, Gaspar points to this relationship as one of the major “pain points”, with areas such as trading and content management systems (CMS) disjointed by differing technologies.

“I haven’t seen someone who has solved this problem from the ground up, in terms of building a data platform that’s going to have a CMS system that’s going to be powered by AI,” Gaspar says. “So, for example, if you log in, I know what’s your behaviour and, if you’re betting only on NBA player props, that’s the first thing that’s going to pop up on your phone.

“So far, I haven’t seen an operator who has solved this properly. There are some people that are doing it better than others, but no one has solved it yet.”

FanDuel aiming to capitalise

Howard notes that FanDuel is one of the companies “getting it right” in the US by finding ways to appeal to players when the betting content such as odds is largely the same.

With another NBA season inbound, FanDuel is planning to press home its advantage by aligning itself even closer with bettors to drive engagement through its product.

“This NBA season we will have an improved live offering across markets like live rebounds and assists, which continue to grow in popularity,” Corcoran continues.

“Product and market offerings will continue to be primary drivers of in-play betting growth as fans look for ways to continue engaging with games throughout each quarter. At FanDuel, we are focused on offering our customers the best gameday experience and cementing our position as the top choice to bet on the NBA.”

Data is providing a lot of assistance for FanDuel’s aims of achieving that top spot for NBA betting, particularly when considering the fast-paced nature of both the sport and in-play markets.

“Data plays an integral role in our business,” Corcoran explains. “During a game, it takes about 1.5 seconds to receive the data point on something that happened on the court and one additional second for our model to process the data and push out new odds.

“Our algorithms are simulating thousands of outcomes, all in an effort to provide the best live betting experience possible for our customers.”

Getting inside bettors’ minds is the future

The rocketing popularity of NBA in-play betting has no doubt captured the attention of operators looking to capitalise on the trend.

While significant progress has been made, Gaspar and Howard observe personalisation as one area of untapped potential where operators can boost engagement by increasingly tailoring their offerings.

Technology will play a pivotal role too as operators refine their in-play strategies, with data providing the opportunity for operators to cash in on the surge of in-play activity.

Who will win the NBA title come June remains to be seen, but in the in-play betting world, the fight for top spot could be equally compelling, with FanDuel certain to be at the heart of it.

The GGL said it was noteworthy that the court backed the application of a broader-than-usual interpretation of the ban. Typically, such sanctions require “prior notification of specific gambling offers”. However, the provider will also be blocked from engaging in potential future unregulated gambling transactions, as well as existing ones.

The decision, which was handed down by the court on 2 October, was only publicised this week.

“National borders no obstacle” to GGL’s efforts

The ruling appears to strengthen the GGL’s efforts to clamp down on enablers of illegal gambling outside Germany.

“This further success in the use of payment blocking shows that national borders are no obstacle to the enforcement of gambling law,” GGL board member Ronald Benter said. “We do not tolerate uncooperative behaviour by payment service providers. Companies that do not comply with the applicable laws must expect consequences.”

The GGL also urged all payment service providers to “comply with the legal requirements and work with the GGL”.

Black market

The latest development comes against a backdrop of growing fears about the scale of black market gambling in Germany.

The GGL claimed in July that illegal gambling accounted for a modest 4% of the German market in 2023.

However, most industry stakeholders, including the Deutscher Onlinecasinoverband (DOCV) trade body, believe this figure vastly underestimates the problem.

A University of Leipzig study last year claimed nearly half of all online gambling in Germany is with unlicensed operators. The GGL is due to deliver a report on the effectiveness of the fourth State Treaty on Gambling by 2026. However, some industry stakeholders like the DOCV are lobbying for an accelerated review.

The panel examined how pervasive illegal internet gaming remains in the US, despite the presence of legal, regulated options in many states. “Just this morning from the lobby here, I created an account on an offshore operator utilising an identity that I have access to that is not mine,” said New Jersey’s Trella.

“There is no KYC other than my name and date of birth. The multiple methods of depositing can allow somebody to introduce illegal funds very, very easily. So, you get to a point where there is a very attractive market for criminals specifically to operate in a space that is highly regulated domestically almost with impunity.

“There is no oversight from anybody. There is no financial reporting, there’s no AML compliance. You have a place where these criminals can launder their funds very, very easily.”

Pervasive problem

Rebuck estimated that there are more than 100 illegal igaming sites operating in New Jersey. They advertise on the internet, offering no indication whether or not the site is legal. FanDuel’s Fox noted that advertisements from offshore sites like Bovada that advertise nationally, are readily accessible to children.

Fox said this is because unlicensed operators are not subject to any of the compliance or consumer protection requirements that licensed operators must undergo.

“I started at FanDuel when we were an unregulated daily fantasy sports company,” Fox said. I “helped guide the company through this transition from an unregulated daily fantasy sports company to a regulated daily fantasy sports company, to a regulated online casino and online sports wagering company. And being a regulated entity really does define everything throughout the company, in every department.”

He added that the requirements of regulation go beyond the company itself.

“When you think about the requirements that we have for licensing, it’s not just the entity licensing, but making sure that all of our vendors are licensed, making sure that our executives go through key licensing” and more. Fox quipped that executives must “turn over their life history” and reveal “how much their couch is worth”.

Regulated gaming platforms must go through occupational licensing from executives to customer-service agents. And, Fox said, fraud departments work with testing labs to qualify products and make sure operators comply with anti-money laundering regulations.

“Obviously, none of this is going on in the unregulated world,” he said. “We’ve set up our entire business in order to meet these requirements and hopefully exceed them.”

Effective action

Panelists offered examples of actions that have been effective in curtailing illegal platforms in legal gambling states.

“It’s obvious to everyone that illegal offshore operators engaged in online gambling and sports betting are pervasive, and operating within every state,” said Rebuck. “In New Jersey, we recognised that and went after them in a number of ways.”

One effective method is cease-and-desist letters. The MGCB has employed these with success. Steinkamp said the fact the orders are reported publicly shines unwanted light on the illegal operators.

“We are fortunate enough to have very clear laws in Michigan – all gambling is illegal unless expressly established by law,” Steinkamp said. “In 2021, the Michigan Gaming Control Board was given authority to investigate anyone who was operating internet games in the state without a licence and one of our key strategies was to issue cease-and-desist orders.”

He said the MGCB has proffered 11 cease-and-desist orders so far, including two just last week. “The other nine all have taken steps to prevent people in Michigan from registering for accounts within the state. So cease-and-desist is having an impact.”

He said Bovada, one of the largest illegal operators, has taken steps to restrict access to its site in every state where they were issued cease-and-desist orders.

Asset seizure an effective deterrent

The public nature of the orders, panelists said, can enable a potentially more effective measure – asset seizure, not only directed at the illegal sites but to their legal vendors, such as payment processing companies.

“The more exposure we get to the issue, the more partners we can get,” Steinkamp said. “We’re very vocal about what we’re doing. When you’re public about what you’re doing and the word spreads like wildfire, other companies in the legitimate sector like payment processors become aware. The pressure points coming from public coverage of this issue will help us build better relationships with the federal government.”

Trella said the potential effectiveness of asset seizure measures comes to light when considering the nature of the vendors who operate legitimate businesses, like payment and marketing companies.

“For the site I created an account on this morning, one of their game designers is one of the companies on the (Global Gaming Expo) floor,” he said. “When you look at the supply chains, they’re very intertwined. And what can the regulations do for that? But from a critical perspective, one of the big tools that we have is the ability to seize assets and actually seize funds from these companies. Money talks in the business world.

“I’m in law enforcement, but if I take your money, chances are you’re going to be upset and there are going to be repercussions. From a law enforcement perspective, the seizure of assets is a very big tool that we can use to (battle) those illegal operators.”

US DoJ getting involved

Steinkamp said state law enforcement is beginning to see results in persuading the US Department of Justice to act on curtailing offshore gambling sites. “They’re stealing hundreds of millions in tax revenue. It’s been a pervasive problem for a number of years. The US Department of Justice has responded that they are the right agency to act, but will there be sweeping action like there was in 2011 with the poker sites?”

Said Rebuck: “In New Jersey, I had resources to battle all types of crime; in other states they don’t have it. There needs to be partnership between law enforcement and stakeholders. Our structural inefficiencies give benefits to the illegal operators.

“It’s incumbent on all of us as operators, but even as state law enforcement as well, to go to the federal government and say, we need your assistance here. This is something we should all be engaged on. There are a number of pinch points that we’ve been describing, like payment processors, like internet service providers, like big advertising platforms, where the federal government could put pressure to reduce the prevalence of illegal sites.”

Industry must work together

Fox said outreach to the federal government should come from the industry as a whole.

“At FanDuel, we are a relatively big company and we could have a little more success on our own. But I do think it is really the right way for the industry to come together through the AGA and other trade associations to get the federal government’s attention.”

“There are many aspects of federal law enforcement that can be leveraged to combat illegal gambling,” said Trella. “We need to be creative, look outside the box and target federal agencies that are able to tackle this in a way that’s creative and effective and the best way to do that is to hit them in the pocketbook.”

“The sheer scale of proceeds” from the illicit economy reflects the growing “professionalisation and innovation” of the crooks, said the report. “Transnational criminal groups in Southeast Asia have emerged as global market leaders.”

Singapore’s historic AML failure

The report pointed to Singapore as the “tip of the iceberg”.

In 2023, Singapore authorities seized S$3bn (£1.756bn/€2.097bn/$2.3bn) in an historic money-laundering scandal. It was a black eye for the global financial hub known as the “Switzerland of Asia” and for local and international financial institutions.

Twenty-seven foreign nationals were implicated in the case. They included several who ran illegal online gaming operations. Ten were convicted and sentenced and 17 remain at large.

Greater oversight, more data-sharing

To combat increasingly sophisticated cyber-criminals, Singapore’s ministry of home affairs will toughen the Corruption, Drug Trafficking and Other Serious Crimes Act (CDSA).

The Inter-ministerial Committee (IMC) has recommended broader government access to suspicious transaction reports from banks, casinos, real estate agencies and other “industry gatekeepers”.

A proposed whole-of-government (WOG) data-sharing platform would link law enforcement, regulators and government bodies, presumably for swifter intervention in case of risk.

These recommendations “are Singapore’s latest measures to combat [money laundering] and other financial crimes”, the IMC stated. “Singapore will continue to enhance our defences by adopting risk-proportionate measures to detect and deter criminals, safeguard our institutions and systems, while ensuring that we remain welcoming to legitimate investors and businesses.”

Financial crimes, human suffering

The criminal financial industry has a high human cost, as in the case of Philippine Offshore Gaming Operations (POGOs).

Although licensed by the government, some POGOs were fronts for love and crypto scams reliant on forced labour. Workers were “forced often against their will to live and work” in POGO compounds, said UNODC regional representative Benedikt Hoffman.

He cited the notorious case of a POGO in Bamban, Tarlac Province, raided last March following reports of rampant crime. Authories freed nearly 900 Filipino and foreign workers during the operation. Many claimed to be victims of human trafficking.

“If they wanted to leave, they could not,” said Hoffman. “Some [were] tortured and subjected to unimaginable violence on a daily basis. There [was] a huge amount of human suffering on this compound.”

In July, spurred by headlines about POGO crime, the Philippine president, Ferdinand Marcos Jr, banned the industry. But with so much money to be made, lawmakers warn the operations will simply migrate to other markets. In Hoffman’s words, Southeast Asia will likely remain “ground zero for the global scamming industry”.

Listen to the World Series of Politics on Apple Podcasts

Essentially it’s all about growth Maloney tells Brendan and Brandt, and this year that of course touches on artificial intelligence. However there’s much more innovation happening across the industry, in particular with the socialisation of online experiences and technology will be a key discussion topic he says.

Gaming expansion under the spotlight at G2E 2024

Then there’s new a lot of new expansion opportunities Maloney tells the World Series of Politics. The UAE is opening for business. Key US states such as Texas may move on casino and sports wagering regulation. There’s also emerging products such as sweepstakes, responsible gambling and even athlete harassment to discuss.

“The G2E education track is not just some echo chamber where everyone pats themselves on the back and just says ‘Wow, great, you’re doing a great job’,” Maloney says. “There’s discussion, there’s debate.”

And there’s an opportunity to see Joe and the World Series of Politics’ caped crusaders Brendan Bussmann and Brandt Iden in action at G2E.

Joe will be leading a discussion on athlete harassment, which is taking place at 2pm on Tuesday 8 October. Brandt, meanwhile, is also in action that day, discussing igaming legalisation at 3.10pm.

And Brendan is so eager for G2E he’s taking part in a master class with the International Masters of Gaming Law (IMGL) before the show floor opens on Tuesday. This takes place from 12pm to 5pm on Monday 7 October, although it’s now fully booked. You’ll just have to catch him on the show floor.

Last Wednesday (25 September), federal deputy Luiz Carlos Hauly presented bill PL 3717/2024 to prohibit the use of electronic payments for gambling, including popular instant payment service Pix, which is controlled by the Central Bank. The ban wouldn’t apply to federal entities such as the bank Caixa and its lottery licensees.

Hauly’s bill is still awaiting dispatch, but the IBJR is urging the government to halt its progress, believing it could have a harmful impact on bettors who may look to the black market for alternative methods to gamble.

“We believe there is a need to rethink the proposed restrictions on Pix, which was designed to lower transaction costs,” IBJR said.

“Blocking its use doesn’t seem to help with controlling debt and may, in fact, benefit sectors that charge higher fees, such as TED transfers, imposing unnecessary costs on consumers.”

Pix usage for betting on the rise in Brazil

Last week, Central Bank president Roberto Campos Neto revealed betting transfers using Pix in Brazil had increased 200% since January.

There are already set to be restrictions on Pix for gambling, with the government announcing payments made via the service to unlicensed operators will be blocked.

At a conference organised by financial services company Banco Safra, Campos Neto warned of the potential economic impacts of rising Pix usage.

Also presented last week were two bills seeking to introduce spending limits on vulnerable groups in Brazil. Senator Alessandro Vieira proposed PL 3,718/2024, while PL 3,745/2024 is being led by Congressman Elmar Nascimento.

PL 3,718/2024 would restrict betting among the elderly, those registered in the active debt or credit protection registry as well as low-income families on the government’s CadÚnico social welfare programme.

PL 3,745/2024 would limit betting spend to 15% of monthly income, as well as introduce a ban on gambling between 9pm and 6am for those at risk of addiction.

Bolsa Família betting a concern

TH IBJR did express support for limiting betting among those receiving social and financial welfare, including government programme Bolsa Familia.

The minister of finance, Fernando Haddad, told CBN last week that the government plans to ban the use of the Bolsa Família card for betting.

The IBJR said its members, which account for approximately 70% of Brazil’s betting market, will adhere to such restrictions.

“We also fully support any government initiative to stop the use of Bolsa Família subsidies for gambling,” the IBJR added.

“Our members are deeply committed to safeguarding vulnerable groups and minors, actively promoting a safe and regulated betting environment.”

The IBJR, alongside the National Association of Games and Lotteries (ANJL), has advised its members to expedite the ban on credit cards for betting set out in Normative Ordinance No 615.

All of the IBJR’s members have agreed to bring forward the prohibition, which had been set to come in from the market’s 1 January go-live date.

Payments made via Pix to unlicensed operators will be blocked under Brazil’s new gambling regulations. The payment method will be key to the government’s illegal gambling crackdown ahead of the regulated market going live on 1 January 2025.

Campos Neto discussed the rising popularity of Pix via gambling sites at a conference organised by financial services company Banco Safra on Tuesday (24 September).

The Central Bank president pointed to the increase in Pix usage in relation to gambling this year, while warning about the potential fiscal impacts.

“We can map what Pix has done for these platforms and the growth since January has been quite large,” Campos Neto told the conference, as reported in Brazilian newspaper O Globo. “It has gone up by more than 200%.

Speaking to iGB in June Hugo Baungartner, CCO for local operator Aposta Gahna, said Pix is used by 99% of the online betting market. “It is really important and the government thinks they can block those operators through this payment method. It’s a really fair way to think,” he said.

Betting on the rise among those receiving welfare

Campos Neto also warned of the rising popularity of betting among those receiving financial benefits in Brazil.

According to Campos Neto, betting is becoming increasingly prevalent among those in receipt of Bolsa Família, the Brazil government’s social welfare programme.

“It is creating a perception that we may have a worsening credit quality,” Campos Neto explained. “We have been trying to help the government and congress with the data we have and the growth is significant.

“The correlation between people who receive Bolsa Família, low-income people, and the increase in bets has been quite large.”

José Francisco Manssur, former special secretary of the ministry of finance and a key part of Brazil’s online gambling legislation, has previously said access to betting should be limited among those receiving Bolsa Família, to protect them from financial harm.

Payments a hot topic in Brazil

Last week, Brazil’s government announced that it will begin to suspend operators that haven’t applied for a licence from 1 October onwards. It is unclear whether the ban on Pix will come into force at the same time.

Only those companies already active in Brazil and that have submitted a licence application will be allowed to operate during the transition period between 1 October and 31 December. From 1 January 2025, unlicensed operators will face sanctions.

Normative Ordinance No 615 banned the use of credit cards, crypto, cash, payment slips or cheques for gambling.

Only electronic money transfers will be permitted for deposits, bets and withdrawals. Player and operator accounts must also be authorised by the Central Bank of Brazil.

However, the credit card betting ban is set to come in from the launch date of the legal market on 1 January 2025. In the unregulated market, players can still transact using these soon-to-be prohibited methods.

Sidney believes it is important the ban comes in sooner. This, he argues is vital to protect players.

“We are very concerned about how much this could compromise family income and increase default, even increasing the cost of credit,” Sidney told journalists in quotes shared with Folha.

Sidney’s comments follow a recent survey by market research specialist Hibou. The study found 10% of the Brazilian population had experienced financial problems stemming from their gambling.

Additionally, 65% of respondents said they knew of someone who had suffered financial issues from betting.

How is the government cracking down on illegal gambling payments?

The majority of the gambling market uses Pix, an instant payment service controlled by the Central Bank of Brazil.

As part of its plans to clamp down on the illegal market, the Brazilian government has announced it will block payments made through Pix to unlicensed operators. For a deeper look at how Brazil’s new system governs deposits and withdrawals, see our guide to Brazil’s regulated betting payment methods.

Ari Celia, director of payments services company Pay4Fun, is confident that will be an effective method of countering illegal operators.

“If any commercial bank isn’t aware they have a company or client that is using illegal sites, as soon as they receive a warning from the Central Bank they will shut down their bank account immediately,” Celia told iGB.

“If they don’t, they’ll be subject to fines. There’s no point for any commercial bank in Brazil to allow those accounts to process Pix once they are notified.”

Limiting payments options for black market operators

The block on Pix payments to illegal operators means it will be “difficult” for unlicensed sites to be active in Brazil Celia says.

Cash and crypto are potentially options for offshore companies, although Celia has doubts over how feasible these are.

“Cash is limited, a lot of people in Brazil are not using it anymore,” Celia explained. “And how do you get cash for an online operation? You need local people, brokers, affiliates, to receive and send money to operators.

“This is very complicated and it’s almost impossible to send money out of Brazil using illegal channels.

“To buy crypto here you need an account for a crypto exchange, meaning you have to provide personal data. The Central Bank is on top of that.”

Related resource:

• Read our latest guide on Brazil’s regulated betting payment methods, covering the approved transaction types, compliance obligations

In the late 1990s, the IGSA was formed as an informal group of gaming equipment suppliers. Its original name was the Gaming Machine Manufacturers Association, or “gamma.” As more companies became involved it then switched to the Gaming Standards Association. The “International” moniker was added after the group expanded to Europe, Macau, Japan and, most recently, Africa.

The inspiration behind the group’s formation started with an open letter from gaming technology pioneer John Acres, who called for more standardisation across the sector. At the time most companies had their own R&D requirements and regulations were much less uniform. Acres astutely felt this trend was dangerous and unsustainable as the industry grew.

Over the years the group’s membership has grown from land-based suppliers to include payment companies, igaming suppliers and even non-gaming firms like Intel. It now collaborates on all technology issues impacting the industry, including non-gaming developments like cashless payments and cybersecurity.

The IGSA’s fingerprints are all over the current gaming landscape. The group was instrumental in the development of Class II gaming, the launch of igaming in the US and other significant milestones since its inception. Countless hours have been spent consulting with industry stakeholders, regulatory bodies and even government officials in efforts to best implement new technologies. As we head to 2025 and beyond, Pace says that that goal remains at the forefront.

Taking the reins at a crucial time

Pace, who is also managing director of GSA Europe, has been with the IGSA since its earliest days. He was named president in February after the retirement of longtime leader Peter DeRaedt.

At this point, the organisation has tackled a number of small technical problems across the industry. But now as president, Pace is faced with new challenges that are more complicated and more wide-ranging.

“When we started, we were talking about very low-level technology protocols,” he told iGB. “By and large, those issues have been addressed. Now we are working on issues that have changed. Now they’re broader, bigger issues. It’s the application of new technologies that are furthering gaming.”

Pace pointed to the onset of artificial intelligence, the proliferation of cybercrime and the advancement of responsible gaming as key issues he and his team are engaged in constantly.

IGSA: critical liaison with regulators

Now that these issues are more pressing, relationships with regulators across the world have become key. The rapid expansion of gaming has necessitated the appointment of a slew of new regulators, some of whom may not have direct experience with the industry.

For example, last September the Kentucky Horse Racing Commission caught flack for bringing on 10 new regulators with no prior gaming experience. In such cases, the IGSA is a critical consultant, ensuring that regulations are uniform and practical.

“Within the committees that we have, there are many ex-regulators,” Pace said. “It’s great having those individuals who have lived that life and understand how difficult it is. What we try to do is say, ‘Here’s how to think about this new technology.'”

He noted that IGSA’s Ethical AI Committee was formed specifically for regulators, to help them better understand the technology as it applies to gaming. As an industry rep, it has to be in lockstep with officials, because “their issues become operator and supplier issues”, Pace said.

Building a foundation with GSA Africa

One aspect of adapting with the industry is establishing footholds in its emerging markets. Having already grown from the US to Europe, Macau and Japan, the group announced last October that it was expanding to Africa.

The new division, known as GSA Africa, is based in Lagos, Nigeria. SamGroup CEO FK Fayed serves as managing director. Given the diversity of countries, cultures and regulations, Pace said progress is slow but steady. The group has a name, an office and is working through small to-dos. But initial feedback has been positive.

Pace recalled that when he attended the African Gaming Expo in May, he was “incredibly heartened to hear from so many regulatory authorities that said they had already implemented or were planning to implement IGSA standards within their regulations.”

Overall, the time is ripe for the introduction of a group like IGSA to the African gaming landscape. According to Gambling Insider, land-based gambling is legal in 46 of 54 countries on the continent and regulated in 45. Online gambling is legal in 42 countries, but is only regulated in 21.

“We realised there’s a huge opportunity here to partner with these regulators and help them through education, through standards, through understanding their own unique requirements,” Pace said. “That was the impetus behind creating GSA Africa.”

IGSA Technical Summit heads to Phoenix

One of Pace’s duties in his first year as president has been to coordinate this year’s IGSA Technical Summit. The organisation first started the conference series in 2018 as a way to address specific technologies. That year, the theme was blockchain, and in 2019 it was AI.

After two years off due to Covid, the IGSA held a virtual version in 2022 for sports betting, but the format was admittedly less than ideal. Last year, the group focused on its 25th anniversary celebration.

Set for 12-13 November in Phoenix, the 2024 Technical Summit is about future technologies. It is being held at the Harrah’s Ak-Chin Hotel & Casino, which Pace actually helped open when he worked for Harrah’s in 1994. The line-up of sessions and speakers will explore the new world of immersive technology.

“It’s going to be focused on Metaverse casinos, it’s going to be focused on VR, AR, XR in land-based and online,” Pace said. “Hopefully it’ll be a very interesting and educational experience.”

The government’s ministry of finance is setting up a team of eight civil servants who will specifically work on preventing illegal sites from taking and receiving payments, according to Celia.

The team will process complaints from the sector and seek to punish unlicensed payment providers and illegal sites.

Blocking Pix payments will be successful

One measure the government has publicly announced is blocking payments involving illegal operators made via Pix, an instant payment service controlled by the Central Bank of Brazil which the majority of the betting market uses.

Regulators in other markets like Germany and across Europe have struggled to block payments to and from black market players due to various legal reasons.

But Celia believes banning illegal transactions via Pix will be a successful measure in Brazil as it is operated by the Central Bank and ultimately controlled by the government.

“If any commercial bank isn’t aware they have a company or client that is using illegal sites, as soon as they receive a warning from the Central Bank they will shut down their bank account immediately,” Celia said.

“If they don’t, they’ll be subject to fines. There’s no point for any commercial bank in Brazil to allow those accounts to process Pix once they are notified.”

Pay4Fun is authorised by the Central Bank to provide payments services to various entertainment sectors, including betting and gaming.

The Central Bank will be a key figure in the legal betting market in Brazil as payment providers will require its authorisation to operate.

“The Central Bank has the power and systems to stop any company that’s [not licensed], because they have direct communication with all the [commercial] banks and with us [as licensed payment providers],” Celia said.

Illegal sites not left with many options

With Pix no longer an option, Celia says unlicensed operators will have very few payment options left as cash and cryptocurrency will face huge political challenges.

“Cash is limited, a lot of people in Brazil are not using it anymore. And how do you get cash for an online operation? You need local people, brokers, affiliates, to receive and send money to operators. This is very complicated and it’s almost impossible to send money out of Brazil using illegal channels.”

Licensed operators will not be allowed to accept crypto payments, as per Normative Ordinance No 615.

Celia is confident the Central Bank will be able to identify crypto payments being taken by the black market. “Crypto in Brazil is only used as an asset for investments, not as a payment method,” he said.

“To buy crypto here you need an account for a crypto exchange, meaning you have to provide personal data and the Central Bank is on top of that.”

Celia concluded: “We’ll have to wait [and see], but for unlicensed sites, it will be difficult to operate here.”

The government-run Philippine News Agency called the arrest “a testament to the tireless efforts of law enforcement… and international cooperation.”

Said Philippines’ Bureau of Immigration commissioner Norman Tansingco: “We are very happy with this development.”

Started with POGO raid in March

Guo is the former mayor of Bamban, Tarlac province, once home of a vast Philippines Offshore Gaming Operation (POGO).

In March, following reports of illegal activity including human trafficking, law enforcement raided the facility. They freed hundreds of Filipino and foreign workers.

Some workers said they were lured with promises of high-paying, legitimate employment, then forced to participate in online scams under threat of physical abuse and even torture. One POGO worker testified he was told he could buy his freedom by working six months without pay.

Guo’s double life

Investigators allege that Guo, elected in 2022, was part-owner of the facility and funded it with money from China. They discovered she is not Filipina, but a Chinese national born Guo Hua Ping.

Government officials subpoenaed the mayor, who repeatedly failed to appear at senate committee hearings into POGO-related crimes. She then dropped out of sight.

On 18 July, she reportedly left the country by boat, using a Philippine passport that had not yet been cancelled. Authorities tracked her movements as she fled first to Malaysia, then Singapore and finally Indonesia.

Last week, Guo’s sister Shiela and business associate Cassandra Li Ong were apprehended in Indonesia and returned to the Philippines. Ong is suspected of facilitating criminal activity at a POGO in Porac, Pampanga.

That facility was raided in June. Again, workers claimed to have been trafficked and forced to take part in criminal activity under threat of torture.

End of an industry in Philippines

Public outcry following the raids prompted Philippines president Ferdinand Marcos Jr to ban the entire POGO industry.

In his 22 July state of the nation address, Marcos ordered all POGOs to wind down operations by the end of the year. “The grave abuse and great disrespect to our system of laws must stop,” he said. “We must stop this attempt to cause desecration and disrespect to our country.”

Guo will be deported back to the Philippines. She faces charges of money laundering, human trafficking and tax evasion as well as criminal misrepresentation.

Wang Qiming and Liu Kai, of Citibank and Julius Baer respectively, were the first financial professionals implicated in the scandal.

Another man, who served as a driver to a businessman implicated in the case, was criminally charged. The businessman, Su Binghai, has fled the jurisdiction. His whereabouts are unknown.

Ten convicted, others on the run

To date, 10 people have been convicted of laundering billions in proceeds from crimes including illegal online gambling.

A total of S$3bn (£1.764bn/€2bn/$2.3bn) in dirty money was funnelled through 16 Singapore banks. About S$1bn in cash and assets were also seized, including luxury real estate, vehicles, jewellery, handbags and watches.

To date, all of those convicted have been identified as Chinese nationals from the Fujian province. Sentences in the case range from 13-17 months in jail.

Authorities continue to search for at least 17 suspects who are still at large in the case.

Singapore banking system infiltrated

The scandal undermined Singapore’s reputation as a whistle-clean financial jurisdiction, with strong anti-money laundering (AML) policies.

The city-state is a member of the global Financial Action Task Force, which monitors countries for money-laundering risks. It co-chairs FATF’s Policy Development Group, which helps to develop standards for other markets. Singapore is also a member of the Asia/Pacific Group on Money Laundering. And it works with international financial crimefighting bodies, such as the Egmont Group and Interpol.

According to the finance ministry’s 2024 Money-Laundering Risk Assessment, Singapore remains at high risk of “foreign fraud, particularly cyber-enabled fraud”.

“This threat has been exacerbated by advancements in digitalisation,” the report states. Online portals “allow syndicates to… transcend borders to launder their ill-gotten gains.

“Another key ML threat faced by Singapore arises from foreign organised crime and, in particular, illegal online gambling,” the report states. In the 2023 case, it adds, “several of the accused” benefited from “illegal online gambling from foreign organised criminal groups”.

Tightening casino controls

Singapore recently tightened its financial controls with the Anti Money-Laundering and Other Matters Bill, enacted on 6 August. An amendment to the Casino Control Act allows gaming operators to share customer data to detect suspicious transactions more readily.

The bill also updates the requirements for customer due diligence (CDD) checks to help detect and prevent financial crimes.

Previously, those checks were triggered when patrons made single cash transactions of S$10,000 or more, or deposited S$5,000 or more into an account. The threshold has now been slashed to S$4,000 for both cash transactions and deposits.

Singapore is home to two multibillion-dollar casino resorts: Resorts World Sentosa and Marina Bay Sands.

Singapore still attractive to criminals

Ironically, criminals are drawn to Singapore because of its reputation as a banking centre in good standing with the world community.

“Singapore is inevitably exposed to (transnational money-laundering) threats,” per a June report from the Singapore Monetary Authority. “It is targeted by “criminal syndicates and professional criminal elements seeking to… launder illicit funds from abroad.”

Widerström did not shy away from acknowledging the operator’s underperformance on Evoke’s H1 earnings call. “[These] results are disappointing and are not acceptable. We understand exactly what went wrong and we have taken corrective actions to address the problems.”

He outlined a range of product improvements, changes to customer lifecycle management and new ways of communicating the overall value proposition for customers in particular.

Product underpins growth plans for Evoke

The product proposition is enhanced by a revamped Betbuilder, which CFO Sean Wilkins said would drive revenue and profit growth by allowing players more flexibility to place bets. A new product, Impact Sub, where a player-specific bet transfers when they are substituted, is coming in H2.

Further changes are coming to the deposit experience, amid a wider focus on customer experience enhancements.

Widerström said in the earnings call that improving the business’ proposition for customers was crucial to his strategic turnaround. He said the business was doing this by streamlining customer journeys and providing a consistent opportunity in terms of product and pricing.

“If we take William Hill here in UK, we are consistent in our messaging in terms of the proposition, a pricing perspective as well as from a product perspective. And here, we are absolutely focused on the mid and high-value players.

“Going forward now for H2, there are some really exciting launches to come,” Widerstrom said.

“We will continue but absolutely focused on ensuring a fairly seamless experience from a customer journey perspective.”

AI improving Evoke personalisation and customer journey

Widerstrom also pointed to a new data team leveraging AI to improve customer segmentation and provide a better player experience for a lower cost.

“We have become much more sophisticated in our play segmentation, enabling us to provide better products and promotions to our core customers who value them the most, driving retention, loyalty and also higher player values,” he said.

“These improvements are enabling us to do more with less, delivering £30 million of cost savings while providing better outcomes for our customers. And we are already seeing tangible short-term benefits here to our run rates.”

As part of this focus on customer life cycle management, Evoke has deployed ecommerce platform Bloomreach to further enhance personalisation.

Strict controls on costs

Group CFO Wilkins said operational restructuring across the company was also driving cost saving efforts so far in H2. He said the finance team was implementing rigorous daily, weekly and monthly tracking of costs.

“Each element of our plan is tracked and monitored to ensure we are delivering. This enables the business to take corrective actions if we are off course and to quickly scale up investments where we are over-delivering,” Wilkins said.

“We continue to take cost out of the business following our strategy to deliver a more targeted business, investing in the right products and brands in the right countries. We are building a more scalable, more efficient business powered by intelligent automation and AI.”

The new strategy kicked in back in March when 888’s US business was sold to Hard Rock Digital. The group subsequently rebranded to Evoke plc in May, as a symbol of its new direction, the company said at the time.

“We are undertaking a total transformation, a total reset of the business,” Widerström said. “And while the first half financial results are not where we wanted them to be, I’ve been really pleased with the improvements we are seeing now, both in the short term and building up for the long term when it comes to overall strength of the business.”

“We are delighted to bring Stake to Peru, a country that has a lot of potential for digital growth, which has been evident in recent years,” said Stake’s general manager for Latin America Diana Otalora. “This shows our ambition to provide world-class entertainment to Peruvian customers and to expand our reach in LatAm.”

Boylesports and Inkabet veteran joins for Peru igaming market push

Jennyfer Escobar joins as country manager to lead Stake’s Peru online gaming push. She joins after a short stint at Boylesports, where she served as growth manager, and also spent over six years at Inkabet, acquired by Betsson in 2021.

“I am thrilled to join team Stake and help to guide efforts in Peru,” said Escobar. “The Peruvian market has significant growth potential and we look forward to engaging even further with the region. 

“I’m excited to continue contributing to the dynamic world of gaming in Peru and to drive innovation in this evolving industry.”

The breaches were discovered after the regulator reminded all operators in March 2024 as to their regulatory requirements. At the time, KSA outlined examples of conditions that a provider may not use, such as minimum payout amounts and wagering requirements before the provider pays back.

All 13 providers must confirm in writing that they do not impose minimum withdrawal amounts or other requirements.

KSA said in a statement: “A provider may not impose structural conditions that prevent direct payment. Player credits must therefore be refunded without unnecessary delay. Nevertheless, the KSA receives signals that providers of online gambling do impose conditions on the payment of player credits.”

What the Dutch Gambling Act says about payouts

Under the Gambling Act all licensees must ensure the secure processing of payments and the distribution of player credits. The legislation also mandates that at the moment the player requests credit, the licensee must debit the gaming account in the player’s favour.

In July KSA chairman Michel Groothuizen praised licensed operators for generally adhering to new requirements imposed by the regulator, particularly during this summer’s UEFA Euro 2024 tournament. He said the majority of licensed operators had followed the rules in place.

At the time Groothuizen said: “We called on gambling operators to show their best side and, yes, they have shown it. But this did involve closely following laws and regulations. Almost no legal operators crossed the line.”

CEO Stella David hailed the first half as evidence of the work to improve operational performance bearing fruit, with revenue up 6% on a proforma basis. Alongside the Central and Eastern European region, Brazil was a key driver of growth in the six months to 30 June.

After net gaming revenue increased 9% in Brazil during Q1, it accelerated in Q2, rising 48% year-on-year. Entain expects this positive momentum to continue into H2, with the legal betting and igaming market opening from 1 January 2025.

This showed the impact of the operational transformation, Deen said, with focus now turning to the UK.

UK and Irish NGR fell 6% to £1bn, which the operator blamed on regulatory changes in the prior year. Gaming NGR dropped 7% to £611.2m, while sports betting was also down 5% to £393.5m, on the back of a 10% drop in player stakes.

“We are taking the same operational turnaround approach in the UK as we did in Brazil and, while the UK is earlier in its transformational journey, we are seeing encouraging green shoots,” Deen told analysts.

Brazil is Entain’s “fastest growing market”

Brazil was its fastest growing market, while the UK represented its largest, Deen explained.

First time depositors (FTDs) in Brazil trended above 2022 and 2023 during the first half of 2024 thanks to improved performance marketing investment and a revived brand experience for Sportingbet in Brazil.

Payments localisation aided growth. The launch of instant payments through Pix resulted in more than a million deposits a week after launching in Brazil.

Satty Bhens, chief product officer at Entain, said localisation was critical for performance in markets like Brazil and Entain had doubled its staff count across localisation teams.

Four times the number of app improvements will be implemented in 2024, compared to the previous year, he noted, with the transition to a regulated market “top of mind” for the business, Deen added.

Entain is also making the necessary technical and regulatory changes to meet Brazil’s open betting market requirements, in preparation for the January 2025 launch. Sportingbet applied for its licence in July meaning that, if approved, it will be among the first wave of licensees.

Casual players, new products and LadBucks to drive UK recovery

Entain’s UK and Irish business will return to growth by the end of the year, in part through targeting recreational customers across its brands.

Simplifying core customer journeys in the UK is a key focus, Bhens said, alongside improving site speed and further development of its free-to-play rewards and engagement programme LadBucks. LadBucks has driven conversion rates for real money activities.

A new in-house bet builder offering will be launched ahead of the upcoming English Premier League season, as well as app updates to improve loading speeds for players.

“We are seeing green shoots of progress thanks to the hard work of our new UK leadership team,” Deen said.

Entain’s UK leadership team was separated out from a wider European management structure earlier in the year. By dropping a number of European markets from the team’s remit, leadership can focus its full attention on the UK and Ireland.

Bhens said that a single team across the European businesses had been “too much and the team was now entirely dedicated to simplifying the UK product and marketing experience”. Former retail boss Andy Hicks heads up this team, with former William Hill director Charlotte Emery brought on as CMO in June.

On Friday evening the company said it had identified the issue and was working toward resolving it.

“We understand the gravity of the situation and are deeply sorry for the inconvenience and disruption,” the statement said. “We are working with all impacted customers to ensure that systems are backed up and they can deliver the services their customers are counting on.”

Multiple airlines grounded flights on Friday, causing severe travel delays in several countries. Some TV stations couldn’t air morning broadcasts and hospitals saw disruptions with scheduling and other systems.

Some users were able to come back online but experts warn it could take a long time for others. CNN quoted security expert Kenn White as saying it could “take many, many days for much of corporate America to recover” from the outage.

Entain brands down in UK, US

Isle of Man-based Entain seemed to be the among the most impacted by the outage. The websites for its Ladbrokes, Sportingbet, Bwin and BetMGM platforms were all down as of 1.30pm US Pacific time. All had error messages on their homepages.

Simon Clare from Ladbrokes Coral provided the following statement to iGB:

“Like many global businesses, some of our platforms, including Ladbrokes and Coral, are experiencing temporary IT issues. This is due to an update by a third party, CrowdStrike.

“We are working hard to resolve this and some systems are back working and some of our shops are not affected and are back working. We appreciate customers’ patience and are sorry for any inconvenience.”

BetMGM’s site message was a little less crafted: “Something went wrong: Web server is returning an unknown error.” The platform just launched in Washington DC on Wednesday (17 July). All of BetMGM’s chief US competitors – FanDuel, DraftKings, ESPN Bet and Fanatics Sportsbook – had no issues.

Entain’s operations were back online by Sunday (21 July), as noted in a BetMGM message on social media announcing the brand had returned to normal operations.

Australian brands also impacted

In Australia, TAB and Flutter’s Sportsbet also went down due to the outage. Both companies combine for about 70% of the country’s market share.

As with Entain, TAB said that its online and retail operations were offline. However, the company posted an update at 8.09pm local time saying that its services had been restored.

Sportsbet said on X that “technical issues are disrupting some of our betting services, including customer service”. No further update was posted as of writing.

“This is our most ambitious acquisition to date, by value, size and complexity,” EveryMatrix chief executive Ebbe Groes commented.

“This transaction facilitates our long-term growth strategy of entering and growing within a greater number of regulated markets, including the UK, Ireland and Africa, where many FSB clients operate.

“It also allows us to accelerate this process, diversify our customer and revenue profiles, while simultaneously migrating customers to a stronger, high performing product proven to deliver exceptional results.”

EveryMatrix will deploy OddsMatrix products to enhance FSB offering

As well as incorporating key FSB features into OddsMatrix including what it describes as “one of the strongest horse racing products among sportsbook providers” it will also roll out existing OddsMatrix products to FSB customers.

The OddsMatrix sportsbook and odds feeds will be available to these clients, while they will also be able to take advantage of EveryMatrix’s suite of modular products including casino games, an aggregation platform and payments soutions, among others.

OddsMatrix delivered a number of complex turnkey solutions to leading operators in 2023, including Bet-at-home and the Hungarian national lottery company’s (SZRT) online brand TippmixPro.

Tier 1 operator Bet-at-home went live with the full EveryMatrix tech stack in Germany in October 2023 following the earlier migration in February of millions of players within its MGA-licensed business.

FSB was founded in 2007 by Sam Lawrence and David McDowell. McDowell stepped down from the CEO role in December 2022, while Adam Smith took over as fulltime CEO in March 2023.

On the deal, Smith said: “FSB has achieved a lot over the last 18-20 months including expansion into new markets and launching innovative propositions. Joining together with EveryMatrix represents another major milestone for FSB.

“We are delighted and excited by the new opportunities this deal could create, through the sharing of our unique capabilities as well as accelerating the growth of FSB’s existing partners.”

EveryMatrix hit record earnings in Q1

EveryMatrix hit a record net revenue high of €39m (£33.5m/$42.0m) for Q1, marking a rise of 66% on the previous year.

EBITDA margin also hit a record high at 57% for the quarter, up from 45% in Q1 2023. The company said this was due to client launches, improved sports trading margins and continued growth in its casino segment.

OddsMatrix saw GGR quadruple year-on-year during the period to €96m, while sports turnover rose 30.9% to €1.29bn. Sports net revenue was up 77.9% to €10.5m.

From targeted advertising to personalised betting offers, it has been used as a catch-all term for new trends and technologies that could help solve the industry’s problems: reducing churn, enhancing the customer experience and making sense of an unwieldy mass of online data.

But for experts who have worked in artificial intelligence (AI) and personalisation since long before the current hype, the personalisation of betting and gaming products is simply a logical progression. 

The next step in gaming and media’s evolution

“We look at this as the next step in the gaming and media industry,” says Chris Reynolds, CEO and co-founder of Epoxy, a provider of AI- and machine learning (ML)-driven personalisation solutions in the betting and igaming industry.

“Whether it’s TV, whether it’s music, whether it’s ecommerce, the application of advanced technology to create greater insights into user behaviour and to streamline workflows and derive key metrics like customer lifetime value – these technologies have been applied and in place for a long period of time.” 

When it comes to the personalisation of websites and apps, there’s also evidence that bettors have come to expect it: research carried out by Betting Hero in 2023 found that 80% of customers rated personalised offers and bets as “valuable” or “very valuable” and that 75% found non-personalised apps difficult to navigate.  

Adoption issues

Nevertheless, the take-up in the industry has remained slow, with operators struggling to overcome the technical and organisational hurdles to embracing AI-driven personalisation.

“I think it is an issue of prioritisation, organisational structure and technical expertise,” says Epoxy co-founder Jason Angelides. “The industry is acutely aware of the value proposition, but implementation of personalisation at scale is not an easy undertaking and there are many existing priorities that take precedence.”

Angelides also points out that adopting AI can involve rethinking some deeply entrenched ideas and systems, such as the siloing of sportsbooks and casinos. “A large majority of organisations are fragmented both operationally and technically,” he says.

One key question for many operators is how to identify where AI and personalisation are most needed and actually add value to both the operator and the consumer. Experts say this starts at the very first stage of the customer journey and can impact everything from retention to harm reduction. 

Shifting the “see what sticks” mentality

Alex Kornilov, founder and CEO of advertising solutions supplier Betegy, believes that AI can bring about a shift in the “see what sticks” mentality that has dominated marketing in the gaming industry

Cutting his teeth in data and visualisation for sports, Kornilov soon realised that the sports betting industry had a much greater need for new ways to communicate complex data such as odds, stats and schedules. 

After transitioning into the betting industry, he discovered that consumers in this space responded much better to personalised, dynamic advertising than the usual one-size-fits-all, static advertising. “Not just a little bit better – much better,” he explains. 

“So you have a banner that says ‘bet now’, then you have a banner which says ‘bet now on the Champions League game Arsenal versus Barcelona’, this will convert much better.” 

Betegy’s solution leverages data to create advertisements uniquely tailored to the player – from the sports they enjoy to the teams they follow – and then track the success of these advertisements and the value of the player over time. 

AI is the answer

For this kind of deep segmentation, AI is the only solution, Kornilov says – especially in sports betting, where everything from the type of sport to the match schedule and the pre- and in-game odds must be taken into account. 

“The depth of the product is so significant, so it does require a lot of data points to be connected to the system so that the ad you deliver to the audience is relevant and scalable,” he adds.

With AI in the driving seat, brands should be able to get a far more granular overview of how well their marketing is working for them. In future, it’s possible that the old joke – “Half the money I spend on advertising is wasted; the trouble is I don’t know which half” – will start to lose its relevance. 

“Currently the acquisition strategy of every brand, especially in the United States, leads from spending money and seeing what sticks, which brings a lot of uncertainty at the brand level and no possibility to really tell what works and what doesn’t,” Kornilov explains. 

“That’s why for example, last year there was a crisis on the acquisition side. If we acquire a player at 300 bucks and the lifetime value is ten, how long can we sustain this kind of aggressive growth?”

Painting a persona of gaming customers

As every operator knows, the challenge of growing revenues doesn’t begin and end with acquisition: retaining customers and increasing their lifetime value is crucial too.

This is where AI-driven personalisation can yield its best results, according to Epoxy’s Chris Reynolds. 

With their insights tool, Epoxy can interrogate partners’ data to segment customers based on as many variables as the operator wants: their bet preferences, bet tolerances, their risk, their ability to become a VIP, their ability to churn, their favourite teams, favourite players, favourite bets, favourite parlays and so on. 

This data can then be used in several ways to improve the client experience, increase retention, reduce churn and generally boost engagement, Reynolds says.

Negating the tyranny of choice

One particularly effective way to leverage this data is to create an experience that Epoxy has nicknamed “Betflix”: personalised websites and apps that are tailored to customers’ betting and gaming preferences, much like many popular streaming services and ecommerce sites.  

There’s evidence that this type of interface can improve an app’s stickiness and reduce churn: in a recent Betting Hero study, 21% of New York bettors cited “ease of placing their favourite bets” as their main reason for returning to their favourite betting app. 

Personalisation also helps counteract a phenomenon in human psychology known as choice overload, which describes the feeling of overwhelm people get when faced with too many options. 

In ecommerce, choice overload might lead to people leaving an online store without making a purchase, while in betting, a player might feel overwhelmed and leave without ever placing a bet. 

In theory, removing sports that players have no interest in and creating personalised recommendations will simplify a customer’s workflow and direct them to the bets they’re most likely to place. Put another way, a streamlined and personalised experience is all about negating the tyranny of choice. 

Predicting the future

Although generative AI tools like ChatGPT have gained the most attention in the press in recent months, experts in the gambling industry say that predictive analytics, or predictive AI, has far more potential in this industry. 

With a wealth of data on individual users’ preferences and past behaviour, it becomes possible to make relatively accurate predictions about their future behaviour, from the type of marketing that’s most effective to their betting habits and the likelihood of churn.

This type of cutting-edge analytics is already used in sports to track the health and performance of up-and-coming players, Betegy’s Kornilov reveals. Using key biomarkers gained from regular testing, sports coaches and teams can predict how likely a player is to suffer an injury, for example, or to start to show signs of decline.

Still early days for AI in gaming

Kornilov believes this kind of technology can also yield great results in the gambling industry, but says it’s still early days and “very much the Wild West”. Nevertheless, certain uses of predictive analytics can prove highly effective for operators. 

According to the Betegy CEO, behavioural models can help identify a player who is likely to churn several weeks before they do so, giving CRM teams time to nurture and reactivate that customer relationship in a personalised way. 

“All of this is very hard to segment by a human brain,” he explains. “You cannot create micro segments. That’s why you need to have certain tools and big data analytics and AI to make sure everything works in the best possible way.”

The two Epoxy co-founders also believe that predictive analytics and AI models should play a strong role in CRM in the gaming industry, giving operators an overview of the individual traits and behavioural patterns of a player over time.

“That allows an operator to much more effectively market to that user,” says Reynolds. 

Tackling harm with AI

However, it’s not just in the realm of marketing and increasing retention where predictive models can come into play: they are also driving innovative and personalised solutions for reducing gambling-related harm.

One of the best examples of this use of AI is Mindway, the supplier of safer gambling software GameScanner, which leverages AI and cutting-edge neuroscience to identify players with a high potential to become problem gamblers in the future. 

Mindway’s algorithms are trained using brain scans and the combined expertise of numerous psychologists, clinical psychiatrists and neuroscientists to create a scalable tool that can act as an early detection system. 

According to testing and certification company Gaming Laboratories International (GLI), 99% percent of players who are manually identified as potential problem gamblers are also classed by GameScanner as either at-risk or potential problem gamblers, while at least 88.5% are classified as potential problem gamblers. 

Not only does the tool give operators a wider overview of their pool of customers, but it also enables much more personalised interventions: for example, younger players could be reached more effectively via a push notification or text, while others may respond best to email.

“We have come a long way already when it comes to detection and monitoring of gambling behaviour and the next step we’re looking into is sophisticated tech support on the intervention part,” says Mindway’s Rasmus Kjaergaard. 

“In other words: to empower the operators to do a lot more about the at risk and problem gambling behaviour our solutions detect.”

Tipping the scales

Although most people recognise how important AI and personalisation could be in the future, it seems that gambling industry is only at the beginning of this journey.

“I wouldn’t say the scales have quite tipped yet,” says Justin Le Brocque, manager of operations at Yolo Group. “Personalisation is absolutely an essential element; it is an expectation now rather than a bonus. But we are still able to deliver this manually, and often that is the best way to achieve the desired results.” 

Nevertheless, Le Brocque acknowledges that “things are moving extremely quickly” and says Yolo is already implementing new AI-driven technology across the business in order to get ahead of the game.

“For now, we’re happy with the balance we’ve struck, but we expect that to evolve rapidly,” he says. 

One of the next frontiers, according to industry experts, is the application of AI-driven personalisation in live betting to create augmented and integrated multimedia experiences. 

Genius Sports’ AI vision

One of the latest products to explore this potential is BetVision, a solution from sports data specialists Genius Sports that pulls together live streaming, in-game betting and personalisation for a fully integrated sports betting experience. 

Highlighting the significance of BetVision, Genius Sports product director Tom Holland describes it as “the amalgamation of everything we can do now”. 

“When you’re starting to get events being identified by a computer in real time, you can then start to tie that back and try to create personal experiences for the user to really separate yourselves and create a unique experience for the consumer,” he says.

By gathering and processing live data from fast-paced sports events using AI, operators can create compelling narratives that appeal to fans’ emotions and drive engagement during the game, Holland adds.

“All the markets are essentially stories that I want to be a part of,” he explains. “What we’re trying to do is tie all of that together and make more granular stories that are focused on the narrative that you care about.” 

Converging around a unified experience

Delivering this type of integrated and personalised experience is where many believe that AI could come into its own in the future.

“Fast forward three, five years, I think it’s hard to dispute that you’re going to see major technology companies converging around this unified experience which includes gamification, real money, betting, fantasy, all under one umbrella, which is really what the user wants,” Epoxy’s Angelides predicts.

“These silos are going to break down and the things that are logically going to converge are going to converge, particularly when it comes to media and sports betting.”

In four years, Angelides says, people will also be hard pressed to find a betting operator who isn’t using AI to personalise their product.

For Kornilov, this is precisely the reason why operators should investigate AI implementation as a strategic decision taken at the highest level.

“If you want to be competitive, you cannot allow yourself to not apply the most advanced way to solve your problems,” he says. “And the companies who implement this and can do it quickly and cheaply, they will win.” 

The move comes just weeks after MGM submitted a lawsuit of its own in Washington DC’s Federal Court. In April, the group argued it does not have to comply with the FTC’s Civil Investigation Demand (CID) because it is not a financial institution.

The casino company also asked for FTC chair Lina Khan to recuse herself from the case since she was on site when the cyberattack in Las Vegas took place.

FTC refutes MGM claims

In its new Nevada filing, the FTC has argued that MGM Resorts comes under its purview as it is an institution that extends customers credit. It described MGM’s argument as “meritless”.

“MGM may argue… that it is not the type of entity subject to the Safeguards Rule and Red Flags Rule (respectively, a “financial institution” or “creditor”) and therefore the CID is improper. That argument is meritless. In the first instance, MGM’s jurisdictional objection has no bearing on the CID’s requests for information relevant to unfair or deceptive acts or practices violating Section 5 of the FTC Act and MGM cannot deny that it is subject to the FTC Act,” the filing read.

If the court rules in favour of the FTC, MGM will have 10 days to respond to the information requested in the CID.

The legal battle relates to the large-scale cyberattack launched against MGM in September last year. MGM was forced to shut down certain systems across its US properties due to the attack. Access to MGM hotel rooms and slot machines were affected by the attack.

Hacker group Scattered Spider claimed responsibility for the attack days after it took place. It said that it would launch further attacks on MGM’s infrastructure if MGM did not meet demands for payment.

Why was the MGM suit filed?

The April suit outlined that MGM is seeking “injunctive and declaratory relief” against the FTC. MGM is claiming that actions carried out by the FTC and Khan have deprived MGM of its rights within the due process clause of the Fifth Amendment.

This clause stipulates that bodies subject to government action are granted a hearing in front of an unbiased tribunal. It also outlines guaranteed fair treatment under the law.

The suit cites media reports, which stated that Khan “and an unnamed senior aide” were staying at one of MGM’s Las Vegas properties at the time of the cyber attack.

As the IT systems were down, according to a report from Bloomberg, a member of staff asked Khan and her staff to write down their credit card information on paper.

Khan then asked the employee how MGM was handling data security in wake of the attack. The employee reportedly said he didn’t know.

The FTC investigation was launched following this exchange. The FTC issued a Civil Investigative Demand (CID) on 25 January 2024 to obtain a response to Khan’s question. According to the suit, the CID asks for information from more than 100 categories across periods that precede the attack.

The following month MGM estimated that the attack would damage its adjusted property EBITDAR for the third quarter by $100.0m (£80.3m/€94.1m). Despite this, it reported record revenue of $3.97bn in Q3. Presenting its Q3 results, CEO Bill Hornbuckle said MGM “went to hell and back” as a result of the attack.

Caesars describes cyberattacks as “new norm”

Caesars was also hit by a cyberattack in September. The operator said that its loyalty programme database was breached as part of the attack.

Earlier this week, Nicole Solaita, SVP and chief audit executive at Caesars, told a KPMG webinar that cyber threats in the gaming industry are now “our new norm”.

Reflecting on the highly impactive cyber-attack on Caesars last September, Solaita told the audience: “Unfortunately I’ve realised that this is really going to be our new norm in this corporate space. 

“Education for the employees is so key in this space and training is clearly fundamental. But as much as you train and you try to be prepared, we’re seeing that some of these cyber events haven’t been all that sophisticated,” she said.

Reflecting on the highly impactive cyber-attack on Caesars last September, Solaita told the audience: “Unfortunately I’ve realised that this is really going to be our new norm in this corporate space. 

“Education for the employees is so key in this space and training is clearly fundamental. But as much as you train and you try to be prepared, we’re seeing that some of these cyber events haven’t been all that sophisticated.”

Last year’s cyber security attack on Caesars stemmed from a social engineering attack on outsourced IT support.

The attackers had obtained customer data, including a copy of Caesars’ loyalty programme database. This included the driver’s licence numbers and social security numbers of various members. 

Staff training is crucial

Solaita highlighted the difficulty in training staff to identify cyber security issues, as many attacks can be unsophisticated.  

“It comes back to social engineering and you [can] find yourself frustrated because, although you train folks, for whatever reason I think some of that is fleeting and when they find themselves in the moment and they get a call, a request or an instruction, some of that critical thinking is not so instinctive and they just go on autopilot,” Solaita said.  

“We’re going to have to really put all our efforts into this education space and really making sure everyone understands the risks and how we can be diligent at all times.”

Cory Fox, FanDuel VP for product and new market compliance, noted the online gaming environment was particularly different. But he added that it still presented a challenge in protecting extensive customer data.  

“We are investing heavily in online security. We certainly do a fair amount of cybersecurity training to the point that it’s annoying those of us who are pretty good at identifying phishing emails, but we get quite a few of them every month to make sure that we’re all staying on our toes,” Fox told the panel.  

He also said the unsophisticated nature of current cybersecurity attack architecture was a major risk.  

Investors raise cybersecurity concerns 

KPMG’s ‘State of risk in the gaming industry’ report said investors in gaming have become increasingly concerned about cyber risk. It prompted the US Securities Exchange Commission (SEC) to implement comprehensive new rules.  

These are aimed at ensuring companies adhere to guidelines regarding the speed, reliability and effectiveness of their cyber-incident response plan.  

The panel also considered the emerging cyber risks around generative AI and the growing use of AI across digital industries.  

“In a large organisation, trying to put some guardrails around the usage [of generative AI] and then understanding the business use cases is a tremendous effort,” Solaita said of the technology’s potential.  

“I’m super excited about really leveraging it, but there’s concerns, like who owns the data and who has access to the data? You don’t want to put your data privacy and protection at risk,” she added.

MGM faced a hugely financial damaging cyber attack on 11 September, which forced it to shut down certain systems. The firm said the attack had a negative adjusted property EBITDAR impact of approximately $100m.

In the lucrative run-up to mass-celebrated events, whether it’s a tournament like this summer’s Euros or a festival like Halloween, marketing that taps into heightened excitement, anticipation and emotion can build a stronger connection that gets people moving.

Finding the hook

There are very few industries that are as seasonal as sports betting. Its level of complexity is even greater than other sectors, like ecommerce and retail. A continually rotating calendar of high-profile sports events brings huge variance, particularly to user acquisition efforts.

But seasonality isn’t just limited to sports. The world shares an entire timetable of holidays and celebrations, each presenting thematic opportunities to shape marketing around a common hook.

In the US, for example, leveraging 4 July creatives in Incline’s UA campaigns saw on average 32% higher click-through rates and 13% improvement in conversion rates. Similarly, Halloween-themed video ads yielded 21% better click-throughs. So the data doesn’t lie.

Leveraging data

Data has dominated industry discussions for many years. From understanding player behaviours, to tailoring products to deliver an elevated experience, data is integral to the success of any igaming marketing campaign. Leveraging this to create personalised, targeted campaigns and messaging based on player preferences, activities and demographics is the optimum formula.

But really, it’s all about tracking – consistently reviewing your library to understand which campaigns performed the best, what specific elements were driving that engagement and which features you can replicate in future promotions to get the same or better results. It’s data science in a creative wrapper.

While the majority of igaming operators are already tapping into seasonality and localised creatives, I definitely think there’s room to crank up the sophistication levels.

Take Spotify Wrapped, one of the GOAT seasonal campaigns. Delivering a beautifully packaged, interactive, personalised and sentimental annual gift to every user, Spotify builds lasting connections just by playing engagement data back to its customers.

Driving performance

Creating that strong connection and resonance with target audiences is our specialism. I co-founded RCA, a creative design agency, in 2018 to focus on the igaming sector. Our core service offering centred on brand development at that time.

We knew that to achieve cut-through we had to land a big-ticket project and build out a portfolio.

That first brand brief came from a new-to-market sportsbook, right at the beginning of its journey. What started as a brand identity remit soon moved into UX/UI design. We produced the full spec of platform screens across desktop and mobile and all marketing, campaign and event assets. It was the perfect launchpad to learn the design language of igaming.

Fast forward to 2024 and RCA is now owned by Incline, part of the Conexus Group. There is great synergy between our companies, not just in delivering end-to-end digital marketing solutions, but also in our ethos. When Pete Laverick, Incline’s CEO, shared their deck, there was one line that immediately stood out. It’s one that we’d been using since launch – “We don’t just colour in.”

Understanding nuances

As we all know, regulations differ substantially across territories – so there can never be a one-size-fits-all approach to digital marketing. In the US, which is more heavily iOS native app focused, advertising regulations vary significantly on a state-by-state level. In the UK, tighter compliance around vulnerability, financial and age verification checks as well as direct marketing opt-ins is imminent.

Across Europe, advertising regulations are vastly different by country. Some place extremely strict limits on promotions to tackle responsible play. But as we’ve just seen in Spain, a ban on gambling advertising isn’t necessarily for life. Several Articles, like promotions that target new customers and using celebrities to endorse brands, have been invalidated through a Supreme Court decision.

We’ll obviously be drawing on Incline’s US best practice for digital marketing to fast-track success for our partners here. But being part of the Conexus Group also gives us access to a huge wealth of data and market insights. This allows us to strategise a nuanced approach to brand advertising for operators across UK and EMEA.

The secret sauce

Behind all the data and mechanics of advertising, successful campaigns ultimately rely on an engaging brand personality – the thing that customers connect with. This isn’t advertising, design or marketing; it’s the entire belief system of a company communicated consistently at every touchpoint.

The issue in any sector – not just igaming – is that investment into brand isn’t linked to the same tangible ROI as other marketing tactics. For example, you can track an ad’s performance with hard data, while quantifying the impact of a brand refresh requires a trickier set of metrics.

But without a strong brand core to pivot out from, marketing assets and activities can often appear disjointed, scattergun and, at worst, lacking in style, substance or personalisation. For an ad to perform well, audiences need to buy into the visuals, the language and the feeling it evokes in a split second. The promotion is only half the story.

In igaming in particular, there is a train of thought that implies “we’re still making a ton of money, so why does brand matter?”. Well, it matters because at the heart of every successful venture is a loyal following of customers who understand brand experience more than you do. They expect to be delighted with moments of joy in every interaction. If they don’t get it, they’ll move on and deposit somewhere else.

As an industry, igaming could look much closer at narrowing the gap between brand and advertising – injecting more personality to increase engagement and shore up reputation, in addition to the promotional offer. Who knows, this might lead to a more colourful industry and, with it, more differentiation and depth.

Hart, who also spent time as an executive director at Tabcorp and director of innovation at William Hill, said the move was prompted by a desire to help operators fix their biggest technology and integration problems in a nimble and innovative way, in contrast to the clunky processes that are often in place.   

He said that, as an operator, the majority of technical decisions are made through necessity around regulatory changes, leaving “not much room to solve other technical problems”. 

“Integration is typically the biggest issue for betting companies and that will be our number one target,” Hart added.  

Conquer Technology describes itself as a full-service development studio specialising in transforming client problems into top-notch solutions.  

Hart said he met Conquer Technology chief commercial officer David Carter when the company participated in an innovation competition during his time at William Hill, between 2008 and 2016.  

Conquer Technology focuses on small-scale technical innovation. Hart said the firm would take on the risks associated with small-scale innovation, making it easier for operators to implement new or challenging technologies.  

Hart said Conquer Technology would be seeking to help firms innovate in various areas including regulation, Know Your Customer and new betting products and bet types.  

“Operators find it difficult to get the bandwidth to experiment and test new things. It might be quicker and cheaper to do those with us than in-house,” Hart said.  

“[As operators] there certainly seem to be a lot more people involved in projects now than there was 20 years ago. I’m hoping we can provide a unique outsourcing model,” he said.

“UK Tote was limiting”

On his move, Hart said the Tote had been a passion project but he had aspirations to solve other technical challenges. 

“There’s a lot more I want to do and change [in gambling] and the Tote’s product was difficult to innovate,” he concluded.

Mizuhara then pled guilty to one count of bank fraud and one count of subscribing to a fraudulent tax return. The maximum penalty for the charges is 33 years in prison and a $1.5m fine. Tuesday’s proceedings took place at the Ronald Reagan Federal Building and Court House in Santa Ana, California. Previous court appearances were at the Roybal federal complex in downtown Los Angeles.

From here, the court and US Probation Office will put together a pre-sentencing packet that Holcomb will use as a reference at sentencing.

Mass media in and out of courtroom

More than 100 media members were outside the courthouse and inside the court room, temporarily clogging Santa Ana’s 4th Street. Mizuhara spoke only in the court room and in response to Holcomb’s questions. His attorney, Michael Freedman, declined to comment despite the pair being literally surrounded by media as they exited the courthouse.

In April, Mizuhara turned himself in after federal investigators revealed he had stolen $17m from Ohtani to settle gambling debts. Although he has not been named in any of the cases related to the Wayne Nix illegal gambling ring, it appears Mizuhara was betting with Mathew Bowyer. Based in Orange County, Bowyer is also under federal investigation, but has not been charged.

Nix is set to be sentenced in September. Former Las Vegas casino executive Scott Sibella was sentenced to one year of probation and a $9,500 fine on 9 May. Sibella failed to file a suspicious activity report when Nix gambled at MGM Grand, where Sibella worked. He allowed Nix, a known illegal bookmaker, to pay for a $120,000 casino marker in cash.

Mizuhara double dipped for dental work

Mizuhara faces a much stiffer penalty. He admitted in court and in a plea agreement that he had lied to Ohtani (referred to as Victim A). Mizuhara also lied to Ohtani’s agents, financial managers and an Arizona bank. According to US Attorney Jeff Mitchell, Mizuhara impersonated Ohtani in 24 phone calls with the bank. He also “regularly logged in (to Ohtani’s bank account) and initiated wire transfers”.

Federal authorities labeled Ohtani as a victim early in the investigation. Following Mizuhara’s guilty plea, MLB cleared Ohtani and released a statement saying the Dodgers star is a “victim of fraud and this matter has been closed”.

Mizuhara used some of the $16,975,010 he transferred from Ohtani’s account for other things. Mitchell said “Victim A” agreed to pay for $60,000 of dental work in September 2023 and “drew a cheque”. Mizuhara then used Ohtani’s debit card to pay for the dental work and deposited the cheque into his personal account. Mitchell also said Mizuhara used Ohtani’s money to buy Yogi Berra, Juan Soto and Ohtani baseball cards on eBay and WhatNot. Mizuhara intended to sell the cards at a profit.

Throughout the deception, Mitchell said, Mizuhara lied to Ohtani’s sports agents and financial advisors. Mizuhara denied both access to Ohtani’s accounts, claiming the baseball star said they were “private”.

Next step: Sentencing

Tuesday’s court appearance began with Holcomb welcoming the large crowd, but with a warning that recording was prohibited. He then questioned Mizuhara about his fitness to stand trial and explained what rights he waived by pleading. Before addressing the plea agreement, Holcomb told Mizuhara: “All that will be left of your case is for me to impose sentencing, which may include imprisonment.”

The total offense level for Mizuhara’s crimes is classified at 29. But the level will be reduced by up to four because Mizuhara is a zero offender and he is co-operating with authorities.

In addition to potential prison time and fines, Mizuhara will be required to pay restitution to Ohtani. He’ll also have to pay additional taxes of $1.15m before interest and penalties.

Tough stretch for MLB

It has already been a difficult several weeks for Major League Baseball with regard to gambling. On 17 May, MLB opened a betting investigation into former Ohtani teammate David Fletcher and his high school friend Cody Schultz. Fletcher currently plays for the Atlanta Braves and Schultz is a former minor leaguer. ESPN reported that Fletcher bet with Bowyer, but did not bet on baseball. Schultz, according to ESPN, bet on Angels games in which Fletcher played. He is also thought to be “Bookmaker 3” in the federal affidavit that is the basis for the Mizuhara complaint.

Then, on Monday afternoon, the Wall Street Journal broke a story saying MLB had opened a separate gambling investigation into San Diego Padres shortstop Tucupita Marcano and four minor league players. The WSJ reported that Marcano was betting on baseball when he was on the Pittsburgh Pirates roster.

Betting on baseball is a violation of MLB rules. Mere hours before Mizuhara’s court appearance on 4 June, the league announced that Marcano had received a lifetime ban. He allegedly placed 231 MLB-related wagers, including 25 wagers on the Pirates when he was on the active roster.

Moneyval found that out of 40 applicable Financial Action Task Force (FATF) recommendations, Bulgaria is now fully or largely compliant in 13. The nation is at least partially compliant with the remaining 27 recommendations.

Among those areas now fully compliant are designated non-professional business and professions (DNFBPs) customer due diligence. This includes the gambling and casino sector, as well as real estate and legal services.

“Since the adoption of its mutual evaluation report in May 2022, Bulgaria has taken numerous steps to strengthen its anti-money laundering and combatting terrorist financing systems,” Moneyval said in a statement.

Moneyval is a permanent monitoring body of the Council of Europe entrusted with the task of assessing compliance with the principal international standards to counter money laundering and the financing of terrorism.

New AML monitoring unit in Bulgaria

Last year, a new National Revenue Agency (NRA) in Bulgaria ramped up its oversight of gambling with the creation of a new AML unit.

The AML unit will enforce requirements such as customer verification, collecting documents and creating money laundering and terrorist financing risk assessments. It will also monitor operations, transactions and customers flagged as suspicious and share information with authorities in other countries.

The unit sits within the NRA. This is the department which assumed control of gambling regulation in 2020 after Bulgaria disbanded the State Commission on Gambling.

The AML unit’s launch follows Bulgaria’s national money laundering risk assessment, which flagged deficiencies across a number of sectors.

Bulgarian market continues to grow

At the start of this year, the Bulgarian gambling industry was predicted to generate BGN200m (£88m/€102.3m/$111.7m) for the country’s budget in 2024.

With gambling adding over BGN300m in taxes and fees to the state budget over the last two years, changes to Bulgaria’s tax structure could help boost its financial contribution even further.

However, the fee for obtaining a licence has increased significantly – up 300% on previously. Tax on income has also jumped from 15% to 20%.

Proposals outline that neither state operators nor gambling agents would be able to process deposits or bets financed by credit. This is regardless of how and when credit is provided, including credit cards.

There is also a focus on a requirement for licensees having duty of care measures to help discourage excessive gambling. The ministry proposed that Spelinspektionen be authorised to set requirements for what these action plans should contain.

Sticking points for Spelinspektionen on potential ban

Publishing its official response, Spelinspektionen says it is largely supportive of the ban. This follows the regulator calling for a full ban on gambling by credit card in November last year.

However, Spelinspektionen did highlight several concerns it has with the current proposals and called on these to be addressed in order to offer greater clarity over the plans.

Firstly, it flags how the memorandum states certain parties, such as non-profit associations that sell bingo games or lotteries, do not accept payments by bank card. This means they are not impacted by the ban.

However, Spelinspektionen states public lotteries also sell tickets on digital sales channels. As such, it calls for measures to be put in place to ensure payment is not made by credit card or financed with a credit provided by a third party for such tickets.

“The memorandum lacks an analysis regarding the consequences that this situation may entail for the public benefit lotteries,” it said.

“Ambiguity” concerns for Swedish regulator 

The regulator also noted an issue over “ambiguity” in relation to the proposed rules. This, it says, largely relates to clarity as to how the term “credit” can be interpreted.

Current proposals refer to an extended credit ban on consumers using account credits to gamble. By definition, Spelinspektionen said, credit linked to a bank account is also account credit.

As such, the regulator says this may be interpreted as meaning licence holders and gambling agents have to ensure a credit space is not used for payments with debit cards. However, the proposals do not include investigative duties for licensees or agents. This, the regulator says, means the planned rules do not go far enough to ensure payees must check if a debit card has a credit limit with every purchase.

Furthermore, Spelinspektionen says proposals do not detail whether licensees and agents must introduce technical solutions or enter agreements with payment service providers to ensure payment does not take place through a credit facility linked to a debit card. 

“Spelinspektionen instead interprets the proposal as meaning licence holders and agents may not allow such a payment if it is possible for the payee to discover without special investigative measures that the payment is made with a credit,” it said. “That is, if the payee knows for some other reason that the gambling bet is financed with such credit.

“The scope of the proposed credit ban regarding debit cards could, for the reasons stated, be specified more clearly.”

Sweden set to follow the crowd with credit ban

Should Sweden press ahead with the planned ban, it would follow other major markets in doing so.

The UK announced a ban on using credit cards to gamble in 2020, with the ban introduced that April. The Gambling Commission determined the implementation of the ban had been smooth and did not lead to “unintended consequences”.

In September 2023, Australia’s government tabled the Interactive Gambling Amendment Bill 2023. The main focus of this was to ban the use of credit cards. 

Norway, one of Sweden’s Nordic cousins, has a similar credit gambling ban in place. In addition, further afield, Brazil has banned gambling with credit cards and cryptocurrency. 

FanDuel TV Extra is currently available through streaming platforms such as Pluto TV and the Roku Channel. It’s also accessible through FanDuel’s over-the-top streaming platform FanDuel TV+.

Bettors can access coverage of international basketball from countries such as China and Turkey, as well as football from the South Korean K-League. Also available will be Professional Darts Corporation and PokerStars events.

Having launched FanDuel TV back in September 2022, executive producer and senior vice-president Kevin Grigsby believes the new channel will help with customer acquisition. Grigsby also revealed that it was looking to add the channel to more FAST providers in the near future.

“Launching FanDuel TV Extra was another important step in expanding distribution for FanDuel TV content and reaching new audiences,” Grigsby said. “Our research showed a large portion of our target audience already consume content on FAST.

“Airing over 12 hours of live sports a day that can be wagered on significantly differentiates our channel in the market and allows us to reach a new cohort of passionate sports fans and bettors.”

FanDuel looking to tap into watch-and-wager potential

A recent YouGov survey highlighted the growing role of streaming live sports in operators’ customer acquisition strategies.

Nearly tw-thirds (63%) of those surveyed outlined that the ability to live stream sports would make them either much more likely or somewhat more likely to use an operators’ app.

ESPN Bet launched in November last year, boasting the backing of Disney-owned ESPN, which is the largest US sports media brand. The ESPN+ streaming service has 25 million subscribers, and the YouGov survey found that 74% of current sports bettors were aware of the service.

As a result, the YouGov survey outlined that ESPN Bet could achieve “sustained growth” as it benefits from the appeal of watching and wagering.

FanDuel looking to build on 2023 success

FanDuel will hope its new platform can help it achieve further growth, adding to what Peter Jackson, chief executive of FanDuel’s owner Flutter Entertainment, labelled a “tremendous” performance from the operator in 2023.

Jackson’s comment came after FanDuel posted full-year positive annual adjusted EBITDA in the US for the first time in 2023. Jackson claims that FanDuel’s success has left Flutter as the market leader in the US.

Flutter’s US operations achieved a 2023 net gaming revenue market share of 53.4%, an increase on the 43.2% reported in 2022. Further adjusted EBITDA in the US stood at $167m (£133.2m/€$154.8m), a sharp increase from the $263m posted in 2022.

“Customers are giving us information about their bank accounts, where they live and who they are,” Soriano says. “We want that process to be safe and secure from beginning to end.”

Sign up, lock down

The sportsbook sign-up process is a crucial step in keeping the entire experience safe for all involved. When building the sign-up process, Soriano and Penn took multiple considerations into account.

“How do we know our customer? How do we know who they are, where they are, whether they’re 21 or older? How do we know they’re located in the proper jurisdiction? We have a couple of steps that answer these questions up front.”

The process, then, includes all the standard fare – email, phone number, date of birth, address, etc – plus a few steps Soriano says are cutting edge for sports betting operators.

“Email verification at signup is very important,” he says. “Some sites have that step later in the user journey, but we do it at the beginning. We know your email address is valid. Most importantly, we know we can communicate with you at that email address.”

Communication is essential and Soriano says it’s valuable to get it confirmed from the get-go so ESPN Bet or theScore Bet can notify users of security issues, such as unusual account activity.

Email verification is relatively universal, but Soriano says many other operators require it later in the user experience – before withdrawal, for example. Verifying from the jump enables better communication with bettors.

Safety first

Another pillar of Penn’s approach to secure sign-ups? ID verification.

“We required the information from a government-issued ID. We can check that information for accuracy. It lets us confirm, from a literal identification perspective, who that person is.”

In other words, Penn betting properties aren’t just allowing bettors to input their information. They confirm it with a required picture ID.

That goes one step further with the next requirement: a live selfie.

“It all comes back to the big question,” Soriano says. “How do we know a customer is who they say they are?”

The selfie upload requirement is another safeguard that benefits all. The sportsbook has more information to confirm a player’s identity and the player has an added layer of protection to stop wrongdoers from creating accounts in their name.

“Our system requires that it be a live selfie. In other words, you can’t take a picture of a picture of you – that won’t work.”

And finally, we come to the omnipresent account security tool: multi-factor authentication.

“You’re starting to see it everywhere,” Soriano says. “I think it can be entertaining in some cases, like when I log in to pay my electric bill. I thought, ‘If someone wants to pay my electric bill for me, hey, it’s all yours.’”

Still, Soriano sees the value, particularly in the sports betting space. “We’re a highly regulated business. There are a lot of eyes on us, and we want to make sure we’re doing it the right way.”

For the players

All of Penn’s KYC practices are intended to benefit the player.

“When you have a customer go through the process,” Soriano says, “it makes them trust the platform more.”

Even if the sign-up process takes a few extra minutes, he says it’s worthwhile.

“It’s no different from opening an online banking account. You want your information to be accurate and you want the institution to protect you. We’re talking 20 extra seconds or so as an insurance policy. In the grand scheme of things, it’s not a lot of time and it helps in the long run.”

Soriano thinks other operators may button up their processes to align with theScore Bet and ESPN Bet sooner than later. Why? Because players will start to take note and consider security more than ever when choosing a sportsbook.

“I think customers will feel more confident when they’re putting their information in and knowing they are being onboarded in a secure way. We’re taking the time to verify their details and keep them safe.”

Plus, players who complete verification and ID steps up front have less friction as they go about their betting activity.

“Now that’s out of the way, there are fewer hoops to jump through later,” says Soriano.

What’s in a name?

Penn is known across the industry as one of the biggest names in betting. Its sports betting brand, ESPN, is a household name even outside of gambling-savvy circles. That plays into Penn’s goals.

“We want to make sure that both Penn, ESPN and theScore are best in class and we want people to trust those names. People trust Penn in gambling. They trust EPSN and theScore in sports. We want them to trust the combination of those businesses in sports betting, too.”

Like a diamond, brand recognition has many facets and security should be among the shiniest of them. This approach also extends into the responsible gaming world. It starts with the obvious elements.

“You’ve got to start simple,” Soriano says. “There’s one tenet of responsible gambling that doesn’t get subsumed into the jargon enough and that’s underage gambling. Our KYC process confirms anyone signing up is 21 or above and there are multiple verifications required – the ID, the selfie.”

The information pulled on sign-up fuels further responsible gaming initiatives. Getting better information about who is signing up can help sportsbooks keep at-risk players safe.

“It gives us more robust information to check against self-exclusion lists. Ensuring we get accurate and useful data – legal name rather than a nickname, for example – can help us identify self-excluded individuals.”

This aligns with the first stage of the four-part regulation rollout announced by the ministry of finance last week. This refers to implementing Bill 3,626, also known as Law 14,790, which was ratified by President Luiz Inacio Lula da Silva in December 2023. This first stage will run until the end of April and see payment, technical and security regulations published.

The rules contain a number of stipulations that bettors and operators must follow to operate in Brazil’s online gaming and sports betting market.

It states that payments in the form of credit cards, cryptocurrency, cash, payment slips or cheques are prohibited. For a detailed breakdown of the approved deposit and withdrawal channels, see our guide to Brazil’s regulated betting payment methods.

Bets, withdrawals and payouts can only be carried out through electronic transfer between operators’ and bettors’ accounts. Accounts must be authorised by the Central Bank of Brazil.

Operators must also not accept payments from an account not registered with the bettor or transfers from third parties.

The rules also prohibit acting as an intermediary between players and operators. However, institutions authorised by the Central Bank of Brazil are permitted to offer transactional accounts on the behalf of operators under certain circumstances – for example, to allow bettors to receive the prize amount owed to them.

Players will receive prize payments on winning bets within 120 minutes.

Making players aware of their betting habits

Operators must also provide players with a virtual account, in which certain details about their betting habits are presented. This is with the aim of allowing players to better manage their financial and betting information.

The virtual accounts will display the player’s betting history over the previous 36 months, the total value of open bets and their financial balance. Operators are banned from granting remuneration on any accounts owned by the player.

In addition, operators will be responsible for managing liquidity risks. This will include establishing a financial reserve at a minimum amount of R$5m (£765,915/€895,350/$953,597). The reserve must be held at a financial institution authorised by the Central Bank of Brazil in the form of federal public bonds. The reserve must be held separately to other proprietary accounts.

The new rules take effect from today.

Brazil’s regulating market heating up

This is the latest development as Brazil moves to fully regulate its igaming and sports betting market.

The next stage in the ministry of finance’s strategy is for the SPA to publish its fraud policies. This will consist of anti-money laundering and counterterrorist financing rules, as well as rules regarding the proliferation of weapons of mass destruction.

During stage three, SPA will publish procedures for monitoring gambling ads and technical and security requirements for igaming. Stage four will see procedures published on allocating industry contributions to socially responsible causes. This final stage will wrap up at the end of July.

Related resource:

• Read our latest guide on Brazil’s regulated betting payment methods, explaining which payment types are approved under the new framework.

Advances in technology are trends that need to be kept up with; fall behind and you risk your players flocking to a competitor who has a newer, shinier product offering. Not only can technology help you provide your customers with the best-in-class products, but it can also play a significant role in retaining your players. Let me explain.

To give you a bit of background, I am the co-founder and COO of Golden Whale, a company delivering machine learning infrastructure and services to gaming companies. We are focused on solving some of the most expensive problems of our industry around customer retention.

How did I come to work in the igaming industry, you ask? This was a combination of early interest in PC games – nobody beats me at Tetris! – and luck.

Right after university, I started working at Greentube. I took every opportunity to grow my responsibilities in parallel to the company’s growth being instrumental in multiple successful market entries of games and portals in both B2C and B2B.

I went on to work in other industries too, but missed the vibe of igaming, which led to founding Golden Whale together with my favourite colleagues from the past.

Starting from scratch

Founding a business had always been in the back of my mind – but it all comes down to timing. Building a new company from scratch needs to fit the market situation. Always being very data-driven in the past, we knew the timing was right to enable machine learning for gaming when the development of algorithms into very useful, applied scenarios picked up a few years ago.

There’s so much to focus on besides the product-market-fit. Firstly, be of value to your customers – whether offering a B2B service or a B2C offering, always put the customer in the centre of what you’re doing. We’re openly discussing our ROI with our B2B partners, which has been a win-win situation for all parties involved. 

Additionally, build your business around something you’re enthusiastic about. Scaling new technology in a data-driven environment like gaming has been always a common core interest. Furthermore, strongly consider who you found the company with. Besides the obvious need for expertise, trust and complementary skills are key.

Another lesson to consider is keeping a lean structure and staying as flexible as possible. This is especially true when starting something new. Make sure your team is ready to execute. Remember to believe in yourself and take action if you’ve found something that’s “yours”.

A greater focal point

Technology has not only played a central role in my career to date, but has also been responsible for some of the biggest evolutions that we have seen within the igaming industry. As the industry continues to mature, this focus on technological development isn’t going away any time soon. And nor should it.

In fact, I think that technology is going to become more of a focal point in the coming years. There are two reasons for that. On the one hand, we’ve certainly entered the era of “useful” machine learning, while artificial intelligence, of course, has been around for many years already.

With the rise of ChatGPT and the like, almost everybody gets the chance to experience how powerful these tools can be in our daily operations. We’re at a distinctive point in time where machine learning is not only here to stay, but will become part of our daily lives.

On the other hand, the need for improved retention strategies has been growing due to increasing competition, rising costs of user acquisition and even evolving complexity in regulatory frameworks. Attracting new players is just one part of the equation – retaining existing players is equally crucial for sustained profitability and growth. Technology also offers multiple tools to enhance player retention – for example, using AI and machine learning.

As almost every new technology creates some disruption, adapting to new ways of work and making use of AI and machine learning will also be crucial for our industry. From my point of view, being open-minded and embracing change is essential. But in order to achieve this you first need to identify your use-cases. You shouldn’t implement a new technology just for the sake of it.

Looking for inspiration

I would always start off with a small proof-of-concept project to understand the benefits any new tool or solution could bring to my business. Look for low-hanging fruits, which often are some of the biggest pain points, and work on those primarily. In the case of retention optimisation, this could be issues such as “Who are my players at high risk of churn?” or “Which players just come for the free spins?”.

Once you have identified those pain points, run your first test campaigns – always against a control group – with the engagement methods you already have in place. If the first results are good, use them to gain recognition for this new approach within your organisation. Take it from there and add additional use cases whenever feasible.

Based on the fact that customer expectations are getting more and more complex, our industry – like almost any other industry – has to re-think its engagement and retention strategies. Personalised offers are already standing out in the market. Therefore, not adapting will leave your brand behind.

I see parts of the CRM processes changing; segments are a very helpful tool for us to visualise and understand large sets of data. At the same time the average, even within well-defined segments, is the enemy of personalisation. 

To identify areas in which the igaming industry can improve its engagement and retention strategies, it’s always worth looking for new digital standards introduced by big technology brands in other industries to keep up with change.

Industries such as ecommerce, fintech and mobile app development are particularly noteworthy for their digital innovation and can serve as sources of inspiration for the gambling industry.

The future belongs to auto-CRM

One common mistake we see in the market is going too fast for a big “one-size-fits-all” solution, which usually takes too long to implement and configure in a way that it’s useful for the people dealing with it in daily operation. Instead, I’d recommend a modular, easy-to-connect approach to keep the whole structure flexible, fast and well-equipped for the future. 

This might sound quite complicated, but when you get it right, the pay-off is endless. Golden Whale specialises in delivering highly personalised gaming experiences and unlocking the potential of machine learning technology.

To be more specific, we deliver predictions and recommendations for product and CRM teams to engage with customers on a highly individual basis, following the goal to run a healthy and sustainable business.

Having been in the industry for over 20 years and seeing the changes that new technology constantly brings to our daily work, I believe the future belongs to slim, data-based, auto-CRM and product managers who understand the value of combining their creative work with new tools and services based on AI and machine learning.

A machine will never invent a new campaign or product feature; ideation will continue to be in excellent hands with humans. At the same time, finding the optimal point of operation based on multiple factors and dimensions is where machines excel.

Getting support for optimisation and exploitation by machine learning, while we as humans can focus much more on creating new ideas and features, seems an obvious and valuable development for me. This approach speeds up the learning curve of any gaming operation massively.

What comes next?

With new technologies flooding the market, this year is going to be one of great change for the igaming industry.

But for anybody looking to enter the igaming or tech space in 2024: Be ready to become part of a fast-moving, growing, and competitive environment at the forefront of innovation and digitalisation, with many opportunities to learn and progress – personally and on a career-level.

Once in, always look out for people who support you and who you can support. Be solution-oriented and help solve problems for your superiors. Change the workplace if you don’t feel the culture is right for you, there’s plenty of different work environments within the industry.

Consider your strengths and values and look for a fitting employer. Make meaningful connections wherever possible and look out for role models you find inspiring. Speak up for yourself and don’t wait to be chosen – this is especially true for introverts!

The intersection of gaming and tech is an extremely exciting and creative place to be in. From a data scientist’s perspective, with such a large amount of data available to work on, we’re living the dream.

The interpreter is being charged with federal bank fraud, which carries a penalty of up to 30 years in prison. His arraignment in the illegal wagering case is scheduled for 9 May.

Late on Thursday (11 April) Mizuhara turned himself into federal authorities, according to the US Attorney’s office. According to an affidavit filed on Thursday, Mizuhara stole from Ohtani to pay off debts he incurred betting with an illegal bookmaker in Orange County, California. Sports betting is illegal in California.

During the two-year ordeal, Mizuhara bet hundreds of millions of dollars. He also systematically transferred access to Ohtani’s accounts from the ballplayer to himself.

US Attorney Martin Estrada said during a press conference on Thursday that Ohtani has fully cooperated with authorities and is considered a victim in this case.

Mizuhara required to begin gambling addiction programme

Mizuhara appeared before United States Magistrate Judge Maria A Audero on Friday (12 April) and did not enter a plea in the illegal wagering case. He is required to begin a programme for gambling addiction, cannot contact Ohtani and has restrictions on his movements, according to Blum, who was at the courthouse in Los Angeles.

According to the affidavit, once Mizuhara began gambling in September 2021, his addiction escalated quickly. He repeatedly referred to himself as a bad gambler, but also continued to ask for additional credit from his bookmaker.

The interpreter’s bookmaker is linked to a comprehensive federal investigation. That investigation includes former minor league baseball player Wayne Nix, MGM and former Los Angeles Dodger Yasiel Puig, who pled guilty for lying to federal agents.

Looking closer at Nigeria’s data reveals a hugely youthful population, with figures from the World Factbook outlining that approximately 41% of people in the country are aged between 14 and under, with the average age of a person in Nigeria just 19 years old.

Taking those demographics aspects into account it’s clear to see why there is excitement over how Nigerian gambling can grow with its population to challenge South Africa at the top of the African industry.

The “huge” potential in Nigeria

With a youthful population that has a strong interest in sports, Nigeria’s gambling market has gone from having largely just local operators to now seeing some international brands making an entry, including Betano and Betway.

Olabimpe Akingba is a legal practitioner with over a decade of experience in gaming, serving as the executive secretary of the Association of Nigerian Bookmakers between January 2020 and February 2024.

Akingba is excited by the growth of the Nigerian gambling market, particularly in the online space, where increases in internet penetration in recent times have provided a big boost.

Akingba believes Nigerian gambling will continue on its upwards trajectory, saying: “We know that in Nigeria, the gaming industry continues to have huge potential.

“The growth of technology has contributed immensely to the development of the Nigeria gaming market. Now we see a lot of competition in the igaming space, which has also shaped the industry.”

Ongoing regulation battle threatens to slow growth

That’s not to say there aren’t obstacles for Nigerian gambling to overcome, however. Perhaps the most prominent of those is the current regulatory system, with the presence of both a federal regulator and state regulators causing tension.

The National Lottery Regulatory Commission (NLRC) regulates gambling at the federal level, although some state regulators refuse to recognise federal licences issued by the NLRC.

A long-running dispute between the NLRC and state regulators has also reached Nigeria’s Supreme Court, with disagreements on whether federally licensed operators must also obtain state licences. However, it’s unclear exactly when a ruling will be made.

For Opeyemi Osilojo, whose time in Nigeria’s gambling industry included nearly three years spent as brand manager at Parimatch, the regulation troubles are one of the core challenges he identifies to growth of the market. Osilojo cites the US, where states are able to establish their own regulations without federal oversight, as the kind of “clear-cut” regulatory system the operator-side is looking to have.

“Each state wants to regulate betting as they seem fit,” Osilojo says. “The challenge is that the federal government also wants to regulate the space because of revenue.

“At the moment what is obtainable is a working agreement just so that the industry doesn’t collapse and both states and the federal government get something from that thriving industry. But in terms of reaching a definite working plan, the case is still in court on how you’re going to pay for licences and some other stuff like that.”

Harmonisation is crucial

Currently, all operators in Nigeria are mandated to gain a licence with the NLRC, although Nigerian law doesn’t mention online gambling. Operators with federal licences for land-based offerings may still have to get a state licence, while online companies licensed with the NLRC are free to operate without a state licence.

The key resolution for Akingba is increased collaboration between state and federal regulators to work together and allow Nigerian gambling to fulfil its evidently huge potential.

“The way forward is harmonisation of regulations as the federal and state regulators need one another,” Akingba explains. “There is need for collaboration to properly regulate the industry.

“However, as it is right now, the challenge it poses is the burden of ensuring compliance with multiple licences for federal and state, which is burdensome on the activities of gaming operators in Nigeria.  

“Secondly, the challenge has many financial implications as national and state licences are subject to licence renewal fees and monthly gaming tax, which is why we see more operators preferring to conduct their activities online and dealing solely with the national regulator.”

Lagos to be at the forefront of Nigerian gambling

Lagos is Nigeria’s biggest city with a population of more than 20 million. Its regulator, the Lagos State Lotteries and Gaming Authority (LSLGA), has been at the heart of the dispute between state and federal regulators.

Bashir Are, the LSLGA’s chief executive, hopes the Supreme Court case will be resolved by the end of 2024. Despite the ongoing court battle, Are believes Nigerian gambling is on an upwards trajectory thanks to the youthful population and the advancement of technologies such as fintech.

While Are doesn’t categorically say Nigerian gambling is bigger than South Africa’s market, which at one point accounted for nearly half of all African gaming, he believes it will one day surpass it as Africa’s top market.

Are believes the LSLGA’s regulatory system is on a European-standard level, highlighting its work with the Malta Gaming Authority (MGA), as well as with regulators in Cyprus and the UK.

“Lagos is the benchmark,” Are declares. “It’s very open and transparent. It’s easy to come in and start your business in Lagos.

“Lagos is a country of its own, with highly educated people and internet very much available. It’s also the entertainment capital of Africa, so it’s highly promising, especially with the first esports arena in West Africa being in Lagos.”

BetKing one of the leaders

BetKing is the Nigerian operating business of KingMakers, a sports betting and entertainment group that also covers other African countries such as Ghana and Kenya.

In early April, BetKing announced a deal with Genius Sports to offer its in-play content in Nigeria for sports such as football and basketball.

Onu Abraham is corporate communications manager at KingMakers, and he sees BetKing as one of the top three players in Nigeria’s gambling market.

For Abraham, BetKing’s innovation will allow it to further consolidate its spot at the top of Nigeria’s gambling industry, saying: “BetKing is staying competitive in Nigeria by innovating their offerings and enhancing customer experiences.

“Recently, the company partnered with payment gateway platforms like PalmPay and Paga for smoother transactions and consumer experience. Their focus on responsible gambling and collaborations with local sports groups further solidify their position in the market.”

Will casino stop stagnation in Nigeria?

Innovation from the likes of BetKing should help to further grow Nigeria’s gambling market, which Osilojo felt was in danger of stagnating, with operators taking customers from the same pool due to product offerings largely staying the same.

“It will keep growing,” Osilojo explains. “I think also one of the major things is that I think there was a stagnation in innovation. Everybody was basically selling the same thing. If your unique selling point wasn’t odds, your unique selling point was how fast that you pay, it will be about the efficiency of your platform.

“But in terms of the products that we had, there was nothing customised. Everybody was selling the same thing, so that in itself did not give anything interesting to the customers.”

In Osilojo’s view, casino could provide further help against potential stagnation, citing growth in that sector during the Covid-19 pandemic and the halting of sporting events as one of the reasons for its development.

“I think there has been growth in casino in the Nigerian space,” Osilojo continues. “In some businesses I’ve spoken to, when I started in 2015, casino was contributing, let’s say, 4% to your revenue. Some people have up to about 12%-18% at the moment.”

Black market a concern

Alongside regulatory issues, the presence of illegal operators in Nigeria remains a concern, despite the wide availability of product offerings.

For Abraham, he feels the popularity of the black market varies on regulatory enforcement and market dynamics, although he also says actions are being taken to clamp down on illegal operators.

“The black market remains a concern in Nigeria’s gambling sector,” Abraham explains. “Efforts to address this issue include strengthening regulatory frameworks, promoting responsible gambling and fostering collaboration between industry stakeholders and regulators.”

In Akingba’s view, it should somewhat fall on regulators to make taxation favourable enough to encourage them to avoid straying into the black side of the market.

“It is crucial for regulators to take into account the impact of tax policies on the gaming industry,” Akingba says.

“By considering this factor, they can ensure that licensed operators remain profitable and that the channeling rate, which directs customers towards licensed operators, remains high. This way, the industry can thrive while promoting a safe and regulated gaming environment.”

In October 2023, the LSLGA issued banning orders to a group of operators offering gambling without a licence.

Additionally, Are says the LSLGA is looking for increased collaboration with other bodies to aid its attempts to halt the black market.

“We are working with the national communications bodies and financial fraud units so that we can block them and go after them beyond Nigerian borders.”

Nigeria’s elephant in the room

Nigerian gambling looks set for an exciting future, with Abraham highlighting aspects such as technological advancements, increasing internet access and a population with a strong interest in sports.

Akingba is also encouraged by the growth she is seeing and she is confident that Nigerian gambling will continue to show short-term improvements in innovation and gaming experiences, while also holding faith that there’ll be a regulation solution soon.

“In the near and longer term I hope to see harmonised regulations in the Nigerian gaming industry,” Akingba explains. “The focus will likely be on preventing double taxation and I have a strong belief that this resolution will happen sooner than expected.”

In Osilojo’s view, the aforementioned youth-dominated demographics offer a huge opportunity for growth.

“The starting age for betting is 18 and you have a lot of people within the space,” Osilojo says.

“The country already has it. You just need the right resources and the right mechanics to reach those people.”

So, while the metaphorical elephant in the room of the ongoing regulation battle is certainly still present, with a supreme court resolution potentially coming by the end of the year, Nigerian gambling looks set to continue on its upwards trajectory.

In the betting and gaming space, the use of artificial intelligence may not quite engender the apocalyptic visions of the AI naysayers in the wider world. But it still appears to offer the possibility of very much changed business practices.

Notably, given the central importance of data to any potential machine learning or AI developments, it is the two leading sports data collection entities that are leading the charge.

The pair launched new AI-assisted sports betting products that appear to point to a new era of sportsbook margin management.

In 2022 Sportradar first launched Alpha Odds, an automated odds recalculation tool. This, the company said, allows its sportsbook clients to generate bespoke betting prices in line with their risk exposure and liabilities.

More recently, the company said the product, which is now in operation with 60 of its clients, delivered an average 10% profit increase in 2023.

Then in January rival Genius Sports announced the launch of its Edge product which similarly promises automated pricing which it says is designed to unlock the maximum amount of profit within every single bet.

The promise of AI

The promise of AI in the context of sportsbooks is reliant on access to data according to Darren Small, SVP for Managed Trading Services (MTS) at Sportradar. And lots of it.

“AI can do a huge number of things, but it is clear it can only improve the outputs,” he says “There needs to be a feedback loop, otherwise it won’t work. A company needs to have data, the more data the better, to make the most of the AI.  Once a company has the data, then the future opens up.”

But what kind of future? As with wider discussions around developments in AI, the potential for AI is more notional right now even while aspects of machine learning are being deployed across the global network of sportsbooks.

“It is still early days for the industry when it comes to understanding the benefits automation might bring,” says Small. “At present many operators are still at the stage of understanding how automation changes the nature of the trading desk.”

An explosion of events

Even without the enhancements being spoken about by both Sportradar and Genius Sports, and by extension taking place across all sportsbook operations, those working on the sportsbook backends across the industry know how much the nature of the challenge has changed in recent years.

“Just the explosion of events is immense,” says Tom Holland, product director at Genius Sports. “You can’t manage hundreds of thousands of events per year manually.”

Small at Sportradar points out that the company’s managed trading systems sportsbook product itself deploys the technology provided by VAIX. Bought in 2022, VAIX provides AI learning across the 60m-a-day transactions that take place across more than 60 sportsbooks.

“When you have that many transactions taking place on the platform, it is easy to see why we’re adopting machine learning,” Small adds.

AI alchemy

Enter automated odds calculation. The promise of both Alpha Odds and Genius Sports’ Edge product is that with this data to hand, the possibility opens up to use the data to manipulate margins. Such products offer the prospect of managing an entire offering in order to maximise returns.

“We can adjust the prices that a client is offering to their customer base to reflect the client’s financial position and their liabilities and subsequently improve the efficiency of their trading,” says Small.

“The system within Alpha allows operators to take a number of different strategic directions – they can choose how they offer their odds to their customer and how they service their end customer.”

The system is doing what we might have done manually 15 years ago with one trader and one match making a decision based on the data available, only doing it at scale. 

“So, we have the system in place, the machine if you like, and overseeing that is our liability trading team who make sure the system is configured in the most efficient and appropriate way per customer,” Small says. “It’s a bespoke solution.”

The system will “understand the tendencies” of each individual client and understand where they may want to “potentially get a little bit more aggressive or a little bit more conservative. And we will configure those odds in a way to get the most out of these models on an individual client level.”

Smooth operators

Clyde Harris, partner at betting and gaming product development house Circle Squared, says it stands to reason that such systems will “smooth out volatility” depending on what strategy the sportsbook in question so desires.

This is what both such AI-assisted systems promise – the possibility of not being hit by the “low lows” in terms of margin while also still hoping to benefit from the higher margin returns.

Tom Daniel, partner at sportsbook operations consultancy Propus Partners, says it is advances such as this which has relatively recently birthed a number of “small quant shops” as he describes them, to rationalise that over time it might be possible to “solve sports betting”.

“The people working on these type of things will be making incremental improvement,” says Daniel. “But the grand aim of ‘solving’ sports betting in the way that some high-frequency traders think they have solved the financial markets is a way off yet.”

What happens next?

Small agrees. “This is a starting point for using AI,” he says. “What Alpha represents is a further mechanisation, if you like, of the sportsbook backend.

“This process was started many years ago with the introduction of algorithms,” he adds. “That was the first step and what we are doing with Alpha Odds is a logical move on from that. It is about building blocks.”

It is a process which is ongoing. “It’s entirely possible that we will reach a point where pricing is done by machine-learning algorithms, customer management is done by automated liability management systems and bet acceptance is done by a combination of both,” says Simon Trim, a consultant currently working on sportsbook strategy and operations with backend provider 10Star.

“Automation reduces the manual work on trading desks and will continue to do so, particularly in risk management and customer segmentation, while still maintaining the subjective input from trading desks,” says Holland from Genius Sports.

New content types

What might AI do next? “Once you automate certain processes, then you free up traders to think about new content types rather than simply trying to optimise what they already have,” adds Holland.

“What we have developed and offer to market in terms of machine learning and the automation of sportsbook processes is itself a leap forward. But what comes next will be really interesting, because the more data the system ingests, the better the outputs,” he argues.

Where that leads the sports betting industry will no doubt be as interesting as what happens in the wider world with AI. “With the volume of data available to us, I can see greater use of the technology to improve operational efficiencies right across the board. AI will touch every aspect of an operators business – that where I think we’re heading”, says Small. 

“The future will be very exciting when it comes to what sportsbooks will be able to achieve and the products they will be able to offer in the near future.” 

The industry had changed a lot since I first started working in finance. It was like what we are seeing in gaming now: the industry was a lot of fun to work in, but more and more regulations were starting to be introduced.

When I decided I wanted a change of pace, I started talking with some great people, one of whom was an angel investor who had invested in Triggy. She knew that they were looking for an external CEO, so she introduced me to the company’s founders and we just clicked right away.

Even though I didn’t know that much about the gaming industry back then, they knew that with my financial background, I had the skills needed to take Triggy to new heights.

Taking a leap of faith

The origin of CallsU in the igaming industry goes way back to 2006. Until recently the company has been growing organically and quietly, but my business partner and I have decided to get the brand out there and make it well known, so we launched CallsU last year.

I really believe in the CallsU offering; it achieves amazing ROI for our customers – actually, best in class across the entire industry, which we are super proud of.

To give you an idea of what CallsU does, we work with igaming operators offering player acquisition and reactivation services. My business partner has two masters degrees in marketing and one PhD in behavioural science, so he knows this space really well.

For me personally, I have always loved a challenge. I enjoy building something from scratch and seeing it grow. The CEO role at CallsU seemed like it would be just that. I also believe we have great product-market-fit in igaming and the timing could not be better with operators realising the value and importance of retention, reactivation and high-quality player engagement.

Analysing the data that CallsU has collected over the past 18 years in this niche has given us a deep understanding of how we can apply our technologies and expertise to get fantastic results.

New heights

As I mentioned earlier, when I first started at Triggy, I was completely new to the gaming industry. But over the last three and a half years I have learned so much about the industry and about building networks. I really understand the importance of having a strong team and good people in the network. For me, these lessons shape everything I do.

I always want to have great people around me: I want good investors, a good management team and a strong company culture. I also want to work with great customers. You need amazing people to achieve amazing results. This was something that was so important for me when working at Triggy, and it’s just as important now at CallsU.

When you have a great team and great partnerships, it really is a win-win situation. It pushes you to find new ways to be more accountable, more professional and also have fun while doing it. This was a big part of the culture at Triggy and is something that I will foster at CallsU as well. It’s all about the people.

Of course, gambling companies must also keep up with the ever-changing digital standards brought on by the big tech brands. I’d like to think that the gambling industry is in a good position for this because we have better opportunities for growth than many other industries. There is still great potential to learn from other tech companies about how we can build amazing customer journeys and outstanding player experiences.

The igaming community is highly adaptable and as an industry we can adjust accordingly to different conditions. We’re in a great position to push the boundaries of innovation even further.

Outside influences

When it comes to influences from other industries, social media would be the first that springs to mind as it’s something that most of us are using in our daily lives. It is super easy to work with and is really personalised to each individual and organisation. It’s also a great way to show off a brand’s character and values.

I also think that the gaming industry can look to retail as an example on how to elevate the overall experience for bettors; for example, how retailers gather data on how our shopping and purchasing behaviours have changed and how their brands can adjust marketing and engagement to suit individual customers.

From my personal experience, the finance industry could also provide a lot of inspiration for innovation. When I started in finance 25 years ago, the industry was in the same phase as the gaming industry is today. Sometimes I hear the same kind of concerns about changes in regulations and the challenges this can pose.

Finance practices can teach us about how we can work alongside regulators to support our businesses and improve our industry, rather than playing cat and mouse.

We have to look at regulatory changes with fresh eyes to find out how we can add value while still being compliant. We protect our collective interests by looking forward and embracing change.

Bolstering safer gambling

It is a combination of both technology and engagement, rather than just marketing, that can help the industry implement better safer gambling strategies today.

With technology, by harnessing artificial intelligence, machine learning and algorithms, we can analyse patterns in player behaviour and flag problematic activities. That can then enable us to reach out to those players and provide them with the support that they need when they need it most.

It is so important that we, as an industry, put player health at the forefront of our businesses. It comes back to that idea of protecting the reputation of our industry; as we are an entertainment-first industry. Gambling should be like going to the movies or going to see a live event. It should be fun and safe.

As with anything else, there is a portion of people who enjoy a flutter, there is a portion of the people who are averse to gambling and then there is a portion of people who are indifferent. If we can show those latter two groups of people that the gambling industry is safe entertainment by building and maintaining our reputation, it will have a lasting positive impact. We have so much to gain in this way. 

Offering a helping hand

There’s an expression from Richard Branson, which goes something like: “If somebody offers you an amazing opportunity but you are not sure you can do it, say yes – then learn how to do it later!”

I really love that and I think that it rings true. If someone shows that they believe in you, take that opportunity. But most importantly, believe in yourself too. Try to push yourself out of your comfort zone and take every opportunity to learn something new.

I didn’t know much about the gaming industry when I started at Triggy. But I have learned so much about this sector over the last few years; that wouldn’t have been possible if I hadn’t pushed myself out of my comfort zone. It is challenging at first, but you will find a way.

For many women, we have been told that the only way we will be successful is if we imitate men – whether that be how we dress, how we speak to people, or the character traits that we display. However, I couldn’t disagree more. We need to show our individuality and actively collaborate with our peers, bringing our individual perspectives as women. We are so much stronger as organisations when we come together and challenge our own ways of thinking.

This was prominent during the pandemic, when female leaders were at the forefront of change introducing new ways of working and adapting their companies so they could navigate the challenges that the pandemic posed. As women, we should be proud of our unique competencies, viewpoints and modes of thinking and doing.

Engage with women and other likeminded people who inspire you and you will succeed. At the end of the day, being a woman is a superpower – embrace your individuality and continue to push those boundaries.

The changes now mean bettors in Montenegro have two options should they wish to bet online. Players can enter a betting shop and place a monetary cash wager which then transfers online funds into their accounts. Alternatively, players can pay via card, but only on a terminal in a betting shop.

The provisions have caused agitation in the Montenegrin industry, with gambling companies concerned over the amendment’s impact on business. A petition calling to halt the change received 25,000 signatures, around 8% of the country’s electorate, in just five days.

Jovana Klisić, a representative of Montenegrin trade association Montenegro Bet, has slammed the potential impact on the job security of those working in the gambling sector, stating the country’s gambling industry is “at a crossroads”.

“With the sector directly and indirectly employing almost 2% of the country’s workforce in a 15% unemployment rate environment, any negative impact on this industry could have very harmful and far-reaching consequences,” Klisić says.

“The removal of ebanking and newsagents for deposits, despite their compliance and transparency, not only affects operational efficiency but also jeopardises jobs, echoing the detrimental effects on the broader economy of Montenegro.”

Contradictions with EU laws

Much of the backlash to the amendments comes from the opposition’s view that they conflict with European Union (EU) law. While Montenegro isn’t currently in the EU, recent polls have shown the population to be largely pro-EU. The country is one of the candidates to be adopted into the EU in the coming years.

Klisić outlined five key EU legal provisions that the amendments clash with. These include Article 72 of the Montenegro-EU Stabilisation and Association Agreement. This mandates that countries looking to join the EU align with the union on certain aspects.

The change also contradicts the Payment Services Directive, according to Klisić. The directive seeks to form an integrated market for electronic payments. The provisions additionally conflict with the EU 4 and 5AML Directive, where cash transactions are categorised as high risk.

Klisić says the law change “inadequately addresses” the threat of money laundering. This is because smaller cash transactions can still be used for money laundering purposes.

Montenegro provisions at odds with EU’s e-IDs introduction

While the amendments in Montenegro seek to ban the use of online methods to fund gambling accounts, the EU is instead looking to introduce a standardised electronic identification method called a “European Digital Identity” (e-ID).

The move would oblige EU states to issue an e-ID to citizens. This would allow them to authenticate their identity for online services such as gambling.

Klisić labelled Montenegro’s move to limit electronic payments an “outlier” among global trends.

“Internationally, there’s a clear shift towards reducing cash transactions in favour of electronic payments, as advocated by bodies like Moneyval and FATF (Financial Action Task Force).

“The global financial community is embracing digital solutions for their transparency and efficiency. Montenegro’s move, therefore, not only isolates it from EU practices but also from the global financial community’s direction.”

In 2021, the European Commission urged Montenegro to enhance its efforts to counter money laundering. This change in course away from online payments could lead to the country being placed in a category of countries with a higher risk of money laundering and terrorism financing.

The provisions also clash with the European Banking Authority’s (EBA) call for every EU citizen, as well as those in countries looking to join the EU, to have access to online banking services. Klisić says the amendments to Article 68f contradict the “EU’s stance on modern financial inclusivity”.

“Looking ahead, we see this communication crisis as an opportunity to bring Montenegro’s financial practices in line with EU standards,” Klisić added. “It’s about more than just rectifying a single law.

“It’s about ensuring that Montenegro’s financial and regulatory frameworks are beneficial for a fair and competitive industry.”

The industry’s response

Montenegro Bet has now submitted the petition to the country’s assembly. The trade association has also initiated a constitutional review, highlighting concerns over the unconstitutionality of the amendments.

Additionally, Montenegro Bet is working with international institutions to draw attention to the negative impacts of the law changes. It is also aiming to highlight the contradictions of the amendments with the EU’s directives on the matter.

Klisić is hoping the public support displayed by the petition will lead to the changes being halted.

“This remarkable show of public backing not only underscores the widespread concern but also highlights the risk of significant job losses in our industry, illustrating the potential economic repercussions of such legislative measures,” Klisić continues.

“Our overarching aim is to realign Montenegro’s regulatory framework with both EU and global financial norms, ensuring a just and transparent environment for the industry.”

EGBA labelled the European parliament’s approval on Monday a “significant milestone” in providing a safer and more inclusive online environment for citizens in the EU. There were 335 votes in favour, 190 opposing the new regulations and 31 abstentions.

The proposed e-IDs will mean citizens would no longer have to resort to commercial providers to verify their online identification, something that has caused privacy and security concerns in the past.

The hope is that e-IDs will reduce the risk of fraud and identity theft, enhancing security for the EU’s citizens.

An additional key benefit of e-IDs is lower costs for businesses. This is particularly important for gambling operators who will be able to use a standardised verification system across the EU rather than differing commercial databases in each country.

Maarten Haijer, secretary-general of EGBA, said: “We welcome the European parliament’s approval of a unified digital identity framework and are confident that the use of the new e-ID in our sector will lead to a more seamless and trustworthy online experience for players and help to reduce costs and administration for gambling operators.”

Will e-IDs catch on?

The EGBA has long been keen on the introduction of e-IDs, citing their potential to “revolutionise” how EU citizens access online.

The assoication has supported the proposals since the framework for a new EU online identification system was initially proposed in 2021.

The European Commission is setting a target for 80% of EU citizens to be using the technology by 2030. The EGBA has also highlighted the need for high participation in order for e-IDs to work. They will not be mandatory for gambling companies.

Following the European parliament’s approval, the e-ID law will need to be formally endorsed by the EU’s council of ministers. Should it pass that stage, e-IDs should be adopted by the summer of this year.

EGBA’s aims to make European gambling safer

A 2023 report revealed that EGBA members had sent 45.5 million safer gambling messages to customers in 2022. This represented a 20% increase. 48% of those messages were personalised, sent directly to customers showing concerning gambling behaviour.

Haijer stated the report showed positive signs of how EBGA is looking to address problem gambling. EGBA’s members include the likes of Flutter, Kindred and Betsson.

In December 2022, EGBA submitted a proposal to develop a common European standard for markers of harm for online gambling. This would make it clearer for harmful gambling activities to be identified by removing the “significant differences” in how markers are defined and monitored.

Earlier that year, EGBA established a new expert group that would counteract new cybersecurity threats to gambling. The group allows EGBA members to exchange information on cyber threats so that future attacks can be avoided.

Despite the rise in the number of detections, the actual rate of suspected manipulation remained stable at 0.21% when taking Sportradar’s enhanced artificial intelligence (AI) capabilities into account. The 1-in-467 manipulation rate was almost level with the 1-in-473 events total from 2022.

Overall, 99.5% of events had no suspicious betting take place, while no sport had a suspicious match ratio higher than 1%. Both of those statistics were the same as last year.

As per Sportradar’s expectations, football and basketball led the way for detections with 880 and 205 suspicious matches respectively. Table tennis was third with 70.

Sportradar’s integrity work contributed to 147 sporting and criminal sanctions, across 10 sports and 23 countries. One case alone led to 10 snooker players being found guilty of match fixing and other charges.

Andreas Krannich, Sportradar’s executive vice-president of integrity, rights protection and regulatory services, stated: “Continued investment in the development of technology is key to detecting otherwise hard-to-find occurrences of match-fixing.

“Further advancements in the fight against match-fixing will be possible as the AI models continue to learn and we will keep honing our expertise to protect sport from manipulation.”

Rises in Europe and Asia during 2023

Asia was the continent with the biggest rise in suspicious events, with 60 more detections than in the 2022 report.

Europe had the second largest jump in suspicious matches with 32 more than last year. The continent still leads the way with 667 total detections, to second-placed Asia’s 302.

Despite a reduction in 44 suspicious match detections in Brazil in 2023, it still had the most of all countries with 109 across the year. Overall, there was a 29% drop in suspicious sporting events in Brazil between 2022 and 2023. In positive news, the country also saw its detections decline for the first time since 2020.

Notably, 40% of all suspicious matches took place in the 10 countries most affected by match fixing, highlighting a clustering of activity. Football was responsible for 71.5% of those events, while basketball represented 17.5%.

Utilising the power of AI

Sportradar attributed the detection of 977 suspicious matches to AI in 2023, a 123% increase on the year prior, as the company’s technology continues to improve and become more effective. AI helped to detect 73% of all suspicious matches in 2023.

These improvements include further AI integration into Sportradar’s Universal Fraud Detection System (UFDS), which was redeveloped to give analysts real-time access to AI-generated data.

The enhancements to Sportradar’s AI and UFDS has allowed action to be taken faster when suspicious activity is flagged up. This has enabled “better quality and accuracy of detection”.

Sportradar’s renewed integrity partnership with AFC

The report’s findings of Asia being the continent with the largest rise in suspicious matches comes after Sportradar penned an extension to its integrity partnership with the Asian Football Confederation (AFC) in January.

The partnership between the pair began in 2013, with the new deal set to run from 2024 to 2027.

Sportradar will continue to work alongside the AFC on a range of integrity matters. This will include a joint effort to tackle issues, such as match-fixing, in Asian football.

The AFC president, Shaikh Salman bin Ebrahim Al Khalifa, welcomed the extended deal. He stated the partnership had already helped clamp down on match-fixing in football across Asia.

As part of his wider set of responsibilities, Skottling is working with chief executive Alexander Stevendahl to manage where the company is headed, aiming to create a culture that fosters growth and opens up new opportunities.

“This includes strategic planning, corporate governance and decision-making at a higher level,” Skottling told iGB. “As deputy CEO, I am involved in setting and implementing the company’s vision, managing key relationships and ensuring that the organisation operates efficiently and effectively while being profitable and compliant.

“We have got a solid template from which the senior management team has now established the culture we have and will strive towards. This will now be rolled out throughout the company.”

Skottling setting lofty targets

So, what exactly are Videoslots’ plans for the future? Well, Skottling sees a fascinating next couple of years for the company, featuring expansion across the globe as well as the introduction of a sportsbook.

There has already been evidence of steps taken towards those objectives. In June last year, Videoslots announced it would launch its online casino offering in Ontario after securing a licence in the Canadian province.

“I envision an exciting and transformative journey for our company over the next five years,” Skottling continued. “Our strategic vision includes expanding into more regulated territories, ensuring compliance and offering our unique gaming experience to a wider audience.

“This expansion aims to strengthen our market presence and elevate the overall gaming experience.”

In terms of how Skottling envisions Videoslots achieving its aims of global expansion, technology and innovation is set to play a key role in the company’s growth strategy.

Part of this will be the development of an application, with the aim being to provide “seamless engagement” across the various new territories that Videoslots expands into.

“To further enhance our ecosystem, we are excited to roll out our new affiliate system, fostering mutually beneficial partnerships and driving engagement across our platforms,” Skottling added.

“Additionally, our focus on innovation extends to the implementation of a new responsive design, optimising user interaction and providing an efficient and enjoyable platform across devices.”

UK “challenging but crucial”

Videoslots’ move into Ontario and Canada marked its seventh gaming licence, following approval in Malta, Sweden, Denmark, Italy, Spain and the UK.

The UK is certainly in the spotlight at the moment, with April 2023’s white paper throwing the future of the market into uncertain waters with the threat of affordability checks and slot stake limits looming.

For Skottling, though, while the UK throws up regulation concerns that aren’t as prevalent in other markets, the region remains a “challenging but crucial” one in the sector for Videoslots.

“The stringent regulatory environment demands constant vigilance, yet we recognise its importance due to substantial market size and revenue potential,” Skottling said.

“We approach challenges as opportunities, committing to transparency, compliance and continuous improvement to positively contribute to the dynamic UK online casino market.”

Culture is key for Videoslots

Skottling believes he has a vital role to play in Videoslots’ objective of providing an “unparalleled gaming experience”, pointing to the company’s history of over a decade as a rarity in what is still such a young industry.

It’s the culture that Skottling has helped to cultivate that he believes will set Videoslots up for future success.

“The collective efforts of our exceptional staff, who bring their skills and dedication to the table, inspire me daily,” Skottling remarked. “Adaptability is key, while long-term strategic vision is essential. Flexibility in execution is equally crucial.

“My approach involves a careful blend of stakeholder engagement, employee involvement, alignment with personal and organisational values, strategic data utilisation and a commitment to ongoing evaluation and adaptation.

“This multifaceted approach aims to create a balanced decision-making framework that considers the interests of all relevant parties, fostering a sustainable and successful business environment.”

Videoslots aiming for “excellence”

The next five years for Videosport marks a crucial juncture in the company’s progression, a journey that Skottling believes will see the company continue to make waves across the world.

It’s an exciting time for the Malta-based operator and Skottling feels what Videoslots has in the pipeline will allow it to fulfil both its short and long-term targets.

“In summary, the next five years for Videoslots will be marked by strategic growth, featuring new brands, enhanced app availability, a cutting-edge affiliate system, a responsive design overhaul, the introduction of a sportsbook and expansion into more regulated territories,” Skottling declared.

“These initiatives collectively reinforce our commitment to delivering excellence in the dynamic landscape of online gaming.”

With a strong organisational culture and technology and innovation plans to boot, Videoslots certainly seems well-placed to deliver on Skottling’s promises.