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

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

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

Where the bill stands—and why delay now looks likely

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

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

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

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

Gambling operators aware of potential delay

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

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

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

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

Consensus without clarity

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

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

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

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

A regulator still not ready for day one

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

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

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

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

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

A black market problem without the tools to solve it

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

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

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

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

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

Operators prepare: cautious, optimistic and waiting for certainty

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

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

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

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

Marketing: permissive or restrictive?

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

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

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

What Finland means for Europe

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

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

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

A market worth the wait

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

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

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

A dominant global force in gaming, the operator has become market leader in the US through its FanDuel brand and has expressed similar lofty ambitions in Latin America.   

In September 2024, Flutter acquired a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional. That same month, the company insisted the deal boosted its market share to 11%. NSX provided the operator with a wealth of local talent and experience.

The deal was completed in May, when NSX CEO Joao Studart stepped into the top job at the newly formed Flutter Brazil.

The agreement mirrored Flutter’s strategy across Europe and the US, combining local brand strength and the group’s financial and technology firepower and global structure. For Studart, the deal made perfect sense and marked a new chapter for the Brazil sports betting market.  

“Flutter saw in Brazil not only an opportunity for strategic expansion, but also a market with real prominence within the global sector,” Studart tells iGB. “It recognised in Betnacional a successful example of genuine connection with Brazilian fans – a popular, culturally rooted and fast-growing brand.” 

M&A specialist Christian Tirabassi, founder and senior partner of Ficom Leisure, believes Betnacional was a top-10 player in Brazil’s pre-regulated market.

Acquiring a local hero of this size meant Flutter could achieve an early-mover advantage, a key benefit in such a highly competitive market.

“The opening of other markets has shown us that whoever is early into the market has an important market share and will probably stay there or even increase that leading position,” Tirabassi says. 

Local prowess 

Stakeholders have noted just how important localisation is to succeed in Brazil, which differs culturally from its LatAm neighbours even beyond the language distinctions.

Pre-regulation, many shared the belief that international entrants could struggle in Brazil unless they properly localised through a boots-on-the-ground approach that differs vastly from their other markets. 

Studart believes Flutter Brazil combines NSX and Betnacional’s local prowess and the Flutter Edge technology stack, bringing scale and local autonomy.

“Flutter Brazil [is] an operation that remains Brazilian at its core, with local leadership and a deep understanding of the consumer,” Studart explains. “At the same time, it operates with the resources, governance and technology of a global group. 

“Through the Flutter Edge, we brought to Brazil state-of-the-art tools, a robust infrastructure, high-level compliance standards and a responsible gaming programme tailored to the country’s reality.

“At the same time, we preserved Betnacional’s essence as a local hero – a brand that represents the Brazilian spirit of football, entertainment and popular culture.”

Brazil’s launch has dominated gaming news in the last couple of years. A huge nation with a population of around 213 million, Brazil has a vibrant sporting culture, and many expected its opening to provide an entry into LatAm’s growing gambling opportunity.  

H2 Gambling Capital ranks Betano, Superbet and Bet365 as its top three players by market share, according to its revenue estimates. International entrants are clearly gaining a strong foothold in the market.

Since the launch, operator revenue figures for Brazil have varied. In Q1 most listed players reported strong numbers as early entrants, but as competition has increased, and KYC pressures remain, some have seen that growth slow slightly.  

In Q3 London-listed Entain warned that iGaming was not performing as well as it could be, due to a slow and arduous certification process, which meant few games were available in the market during the period. Flutter reported revenue of $87 million in Brazil in Q3, marking a 412% uptick on the same period in 2024, prior to regulation.  

Of course, this year the company has included NSX’s revenues within its mix, with Betnacional reportedly achieving record iGaming revenues during the quarter. Excluding NSX’s revenue, Flutter saw a 18% year-on-year revenue drop across its Betfair brand in Brazil.

Group CEO Peter Jackson said this was due to its continued recovery from bottlenecks that occurred during and following the regulatory process.

Ed Birkin, H2 Gambling Capital managing director, estimates Flutter Brazil is currently sitting in fifth position in the market with a 4.5% market share. 

“While it’s still very competitive at the moment, I would imagine Flutter’s strategy will be focused on getting the best product [out],” Birkin explains. “And then as other people start to pull back, which is going to happen at some point because the losses that I’d imagine a lot of companies are making aren’t sustainable, that’s when they will start to leverage their financial firepower, start to lean in as they call it and pick up the slack.” 

A slice of the pie 

The Flutter Edge platform is the core function powering the operator’s “local heroes” strategy, through which it has acquired numerous leading brands in various markets and integrated them into the central platform.

Analysts are bullish on the power of the Edge platform. In December 2024 Macquarie senior gaming analyst Chad Beynon estimated the platform would help Flutter gain up to 25% market share in Brazil by 2030.  

In his December note Beynon said the platform had proven to affect market share gains in new markets quickly. He also said further M&A was on the cards for Flutter in LatAm.  

“Flutter Edge brings to Brazil state-of-the-art resources in infrastructure, data intelligence, innovation and compliance – ensuring that our brands operate with robustness, speed and security,” Studart says. “At the same time, we have the freedom to adapt products, experiences and strategies to local realities, delivering tailored solutions that truly connect with our audience.  

“It is precisely this combination of global structure and local leadership that positions Flutter Brazil among the most prepared companies to lead the sector – with consistency, credibility and a positive impact on the entire ecosystem.” 

Birkin expects Flutter will invest heavily in marketing further down the line, as competition slows and others pull back from the market. This will enable it to capitalise on waning competition, a strategy that worked for Flutter in stunning fashion in the US. 

“My view is the best strategy would be to focus on integrating their very strong technology and know-how into the Betnacional business to improve the product,” Birkin says. “Once they’ve got the product where they want it, then to spend their money on marketing as others pull back on it. 

“What you’d notice in the US is that as people started pulling back on bonusing and marketing, as lots of operators were loss-making, they pull back, then FanDuel starts to lean in and kind of use their scale to take customers.”

Birkin notes Bet365 employed a similar strategy in the US, where the operator avoided spending huge amounts to gain brand awareness. Instead, it operated efficiently in the background, waiting to make market share gains when others pulled back. 

The sheer scale of Flutter Brazil compared to smaller operators is demonstrated by its massive local workforce of over 500. The business operates multiple functions locally, including technology, marketing and customer services. The company also recently changed its corporate structure, with a raft of new C-level appointments to work alongside Studart. 

Flutter Brazil has drawn from other sectors to build out its executive team, while also ensuring a combination of international expertise with a “deep cultural connection” to Brazil.

“The IT team is a great example of this integration, with professionals from Flutter’s international structure working remotely in collaboration with the local team, expanding our capacity for innovation and integration,” Studart adds. 

“The new executives bring extensive experience in their fields, foster local reach and lead highly qualified teams that are already recognised as industry benchmarks, always operating with responsibility and a long-term vision. With Betnacional as part of its brand ecosystem, the goal is to sustain an operation centred on Brazilian talent and local insight.” 

Further M&A 

Tirabassi shares Benyon’s view that Flutter will make other acquisitions in LatAm, in part due to their strong history of successful M&A across its global portfolio and with the company’s sights set on reaching the summit of the regulated Brazil sector.

“Their objective, clearly, is to become number one, and that’s why I think they’re going to make other acquisitions,” Tirabassi says. “Large ones that would allow them to be quickly number one or number two, so something of the same size or similar size. I think that Flutter is actively looking for an [M&A] target. I know that for sure.” 

But Tirabassi knows well that this process isn’t easy.

“We believe the issue [in Brazil] is finding a target which is ready to transact,” Tirabassi adds. “Being on the sell side, the majority of the work we do is prepare the target, because they’re not ready. We understand the priority is business. But then again, very big business, very small corporate. So that’s why we’re trying to kind of help them to realign the size of the corporate together with the size of the business.  

“They need at least a couple of quarters to organise the company. So, we expect that in 2026 you will see some additional M&A in the market, because targets will be in a better position than now to engage in a transaction with a company like Flutter.” 

With Birkin currently ranking Flutter Brazil and its Betnacional and Betfair brands at number five in the market, he has reservations over whether they can scramble to the top spot. H2’s numbers give Betano, Superbet and Bet365 a combined 47% of the market, and Birkin feels that could be a tough trio to crack for Flutter. 

“They want to be in a podium position,” Birkin explains. “On our numbers that would involve them overtaking Sportingbet and Superbet. Is that possible? Yes. Do I see them being able to capture in a year, five years, Betano and Bet365? That would involve a significant change in market structure.” 

Tirabassi, however, is a little more confident and believes in the value of the NSX acquisition. Add to that Flutter’s capability to conduct more M&A, and Flutter could certainly buy its way to the top.  

“I think the difference is that culturally, the Flutter group has been extremely capable in M&A, they have a very strong team and also the guys that come after the deal. Betano has basically no experience in M&A or very little so it’s not really their culture.” 

Ultimately, Studart is confident Flutter Brazil will continue to make strides in the new and exciting Brazil market.

“The Brazilian market is going through a phase of consolidation that brings great opportunities for operators who invest with seriousness, a consumer-first mindset and a commitment to best practices,” Studart concludes.  

“The progress of regulation has laid the foundation for a more balanced ecosystem – one that combines innovation with responsibility. Flutter Brazil sees this new scenario as fertile ground for sustainable growth. By combining global scale with a deep understanding of local specificities, we aim to actively contribute to the sector’s maturation – offering relevant and safe experiences to users while reinforcing the pillars of trust, transparency and Brazilian culture that underpin our brands.” 

Part one of this series showed us that vulnerability creates connection. After that piece went out, more men reached out. They wanted to contribute, to be honest, to share the parts of their journey that rarely make it into boardroom conversations or LinkedIn updates. This second column brings together four very different experiences – recovery, entrepreneurship, identity and brotherhood – but all echo the same truth: silence serves no one.

‘Keeping quiet was killing me’ – Mark Schmidt

managing director, Africa, EveryMatrix (South Africa)

Mark doesn’t soften his language when he speaks about addiction and mental health – and that is part of the impact.

“It was very clear to me that keeping quiet and not talking was one of the major reasons life became unmanageable,” he says. His most recent visit to rehab was a turning point: “I let go of the shame I was carrying. I started having very open and very difficult conversations.”

In an industry where leaders are often expected to remain composed at all costs, he made a different choice – he chose truth over image. “I realised that in iGaming, addiction, substance abuse and mental health struggles aren’t isolated to me. They are everywhere. Speaking up wasn’t courage; it was survival.”

He is open about the challenges of early sobriety, especially while leading a fast-growing African region. “The first few months were difficult,” he says. “But over time, managing stress, expectations, rapid growth and entertainment became easier. I have very firm boundaries. And I’m incredibly fortunate to have my wife by my side – she knows me better than anyone.”

Sobriety changed not only his lifestyle, but his entire leadership identity.

“This has been the most successful year of my career,” he reflects. “It’s down to being authentic. Not worrying about what others think. Being honest, direct, human.”

For men who are quietly struggling, his message is beautifully simple: “Your situation isn’t unique. People all over the world are dealing with the same battles. Ask for help. I’ll always be open to being the person they reach out to.”

Today, Mark works with the Recovery in Gaming (RiG) initiative; offering support, anonymity and community to others who need it.

His honesty reminds us that vulnerability is not an interruption to leadership, but it’s part of the foundation of it.

‘It’s been a lonely journey, but I believe in the vision’ – Ayofemi Akinlaja

founder and CEO, Shacks Evolution Studios (Nigeria)

Ayofemi represents a different kind of pressure: the pressure of building something no one else in Africa has built before.

“When I started this company, I wanted to be the biggest provider from Africa,” he says, not with arrogance, but with clarity of purpose. His story is defined by persistence, discipline and faith. And he is frank about the emotional cost of building ‘from scratch’ in a market dominated by global giants.

“It’s really tough not to be emotional,” he says. “You quit everything to focus on one thing, knowing that if it fails, you’re done.” As a solo founder, he has faced technical setbacks, scepticism and moments that would have broken many. He recalls losing a “major, major deal” in 2022 because of early technical issues – a blow that could have ended the story.

“But I kept showing up,” he says. “People used to ask, ‘Who is this young guy trying to do what nobody has done?’ But the more they saw me, the more they respected the work. Eventually the ‘no’ became ‘maybe’. And then ‘we’re listening’.”

Navigating credibility, age bias and an evolving African market requires a mix of strategy and emotional resilience. “I gave myself five years to build something meaningful,” he explains. “My belief in this dream has never wavered.”

His wellbeing strategy is refreshingly practical: “Hire the right people. Reassess constantly. Keep evolving. Fear will try to creep in – don’t let it.”

And to other African men wanting to launch gaming or tech ventures, he offers advice both grounded and hopeful: “Cast away fear. Build lean. Be persistent, resilient, diligent. Challenges will come but they won’t be the end of you.”

His journey is a reminder that innovation in Africa is not emerging – it’s already here, carried by founders who refuse to give up.

‘You may feel unseen, but you are not alone’ – Sipho Hobongwana

personal assistant to the chief strategic advisor, National Gambling Board (South Africa)

Sipho’s experience shines a light on a quieter, often overlooked mental health reality: the emotional labour of navigating identity in environments where LGBTQ+ representation is limited.

“Being an LGBTQ+ professional at a National Regulator has been a balancing act,” he says. “I’ve had to read the room before being fully myself. Sometimes just being publicly present feels like the first step towards change.”

He speaks warmly about the executives and colleagues who have become unexpected champions: “One of my highs has been finding supporters who value my work ethic, integrity and perspective – regardless of identity. They helped build my confidence and self-leadership.”

But he is honest about the loneliness too. Without visible LGBTQ+ networks in African gaming, much of the journey has been walked alone. “There have been moments where I’ve had to conceal parts of myself to avoid unnecessary attention,” he shares. “But as I’ve grown, I’ve gained confidence in maintaining my boundaries while being transparent.”

His mental health practice reflects maturity beyond his years: community, therapy, grounding routines and remembering that identity is only one part of who he is. “Before my title, I’m a human,” he says. “Checking in with myself has become essential.”

His message to others is both gentle and powerful: “You may feel unseen, but you are not alone. Your existence already challenges the narrative of who belongs. Authenticity is not a weakness – it’s a quiet form of leadership.”

Sipho’s story widens the lens on representation, reminding us that inclusion is not abstract – it’s deeply personal.

‘We don’t compete. We build together’ – Moshe & Ashley Adir

founder and co-founder, Vegas Kings (South Africa)

Very few business stories sound quite like this one. For more than 27 years, Moshe and Ashley have built Vegas Kings – and built it together, shoulder-to-shoulder, as brothers.

Moshe describes their partnership in a way only siblings can: “We function as two parts of one whole. The biggest strength is absolute trust.”

Every morning begins with a hug. “It sets my compass for the day,” he says.

Ashley brings his own perspective: “When the chips are down, we put our heads down and grind it out – no signalling needed. After 27 years, it just flows.”

Their dynamic is a yin-yang blend that works because it’s intentional. Moshe is the dreamer chasing “shiny objects”, while Ashley is the grounded operator with laser focus. They split responsibilities 50/50, respect each other’s lanes and refuse to let ego take root.

“People warn against working with family,” Moshe says, “but our secret is simple – stop competing. Let the ego go. Build the dream together.”

Their wellbeing approach is honest – they are workaholics. They don’t switch off, but they feed their creativity through side passions: music, AI, innovation. “It’s the entrepreneur’s curse,” Ashley laughs. “But we wouldn’t have it any other way.”

Their story is a testament to trust, consistency, emotional maturity and love – and a reminder that male vulnerability isn’t always loud. Sometimes it looks like showing up for each other every day, for decades.

Closing

These stories matter because they reveal something our industry often forgets: beneath the pressure, pace and performance, men carry complexity too – identity questions, recovery, loneliness, burnout, brotherhood, responsibility and the quiet courage to keep going.

Our work around mental health and inclusion continues, and we welcome more voices. If you – or someone you know – has a story worth sharing, please reach out. Silence helps no one.

About Women in Gaming Africa

Women in Gaming Africa (WiG Africa) is a non-profit community connecting, elevating and empowering women across the continent’s gaming industry. 

Through events, mentorship and advocacy, WiG Africa champions representation, leadership and inclusion while fostering a stronger, more connected African gaming ecosystem. Learn more or get involved at www.womeningamingafrica.org.

Paolo Sanvido, CEO of Casinò Lugano in Switzerland, discusses their game Wu Jin Pen and why it is so engaging with players.

In this fourth episode in our Light and Wonder video series, Lugano, shares his insights on why Wu Jin Pen is such a captivating game due to its bright graphics, immersivity and innovative techniques. Check out the video above for more!

In its pre-budget preparations, which included a Select Committee meeting with industry stakeholders and think tank representatives, the Treasury has raised concerns around parts of the UK sector being based offshore in hubs like Gibraltar and Malta.

During its meeting in October, the committee probed Betting & Gaming Council CEO Grainne Hurst and Tax Committee Chair Stephen Hodgson on why many UK-facing gambling firms maintained an offshore presence.

The committee’s suggestion was that companies were based offshore to avoid corporation tax in the UK. But Hignett explains the reasoning is much more nuanced.  

“There’s a history as to why different parts of the industry are offshore and some are onshore, which needs to be understood to sort of realise how we got here,” says Hignett.

“They’re there for reasons that are well explained,” he adds. Hignett notes that operators have flitted between having offshore and onshore bases for years, to ensure they can compete on equal footing.

Dynamic regulatory environment

Additionally, in the UK remote gambling was illegal until the 2005 Gambling Act came into force in 2007. During this period mobile and online betting was increasing in popularity and operators remained or returned offshore to leverage this opportunity across Europe.

“If you’re an operator in 2007, the question is ‘Why would you come onshore voluntarily, when all of your competitors remain offshore?’ You’re volunteering to pay a whole load of taxes that’s just going to put you at a massive competitive disadvantage,” Hignett tells iGB.

“I can tell you about some of the musings of the Court of Appeal, in particular income tax cases where they look at gambling companies that have gone offshore and said, ‘We kind of understand why you went offshore, because everyone else had gone offshore, and therefore you would be the only people paying duty in the UK when the rules were like that’. So they were pretty sympathetic of that.”

But the Treasury has made some progress in better understanding the sector, he suggests. “You can see that in the differences between the Treasury Select Report and the rather blunt [gambling tax] consultation earlier in the year. But I think they’ve got a way to go to really understand those differences,” Hignett says.

A long way since the consultation

The consultation was launched in April by the Treasury, requesting stakeholder feedback on the current three-rate, profit-based tax system for operators. The initial report hinted at consolidating the three rates into one single rate across all verticals.

But stakeholders largely objected to this idea, as it would raise betting duty from 15% to 21%, in line with Remote Gaming Duty. This could hugely impact, and possibly decimate, the retail betting and horse racing industries.

Various other policies were then suggested by think tanks, including increasing remote gaming duty to 50%, and machine games duty from 20%. But we won’t know which the government has settled on until Wednesday’s budget session.

“If anyone has the ability to sort of shoulder an increase in tax, it’s probably not various people within the general betting duty camp — you know, the high street shops, particularly bookmakers, who are taking bets on horse racing, where they’ve got to pay the levy as well,” Hignett reflects on the initial consultation.

“The industry reacted badly to this consultation, thinking it wasn’t a very good idea, because I think it was based on a false premise, which was essentially, because various types of gambling can be consumed online they must be sufficiently similar, and therefore we can merge them all together.”

Taxes on high-risk verticals in the UK

In its report following the Select Committee meeting, the Treasury has advised the government to consider increasing the tax for high-risk verticals, like online casino.

“I think they are on a journey and I think they’ve probably got a way to go, because what we’re looking at is a very complex ecosystem,” Hignett says of the committee’s meeting and subsequent findings.

“The Treasury select interview process was really interesting because it was meant to be all about gambling tax policy,” he adds. “And most of the questions that were being thrown, particularly of the BGC, were more regulatory-related questions and around gambling creating social ills. I think everyone accepts that. That’s why it’s regulated, to try and make sure we can control that.”

When could a new gambling tax policy come into force?

On the timeline for a potential gambling tax hike, Hignett says the chancellor has a choice on when to introduce a new policy that is announced during the budget.

“She will either bring them into effect from midnight of Budget Day or from the beginning of the next financial year. If it’s a transactional tax, like capital gains tax or a tax on transactions like stamp duties, rate rises often take effect from midnight.

“For the types of gambling duty that we have been talking about, rate rises often take effect from the start of the next financial year (this is what happened when RGD was increased from 15% to 21%, with effect from 1 April 2019). As regards rule changes (rather than just rate changes), these will typically come into effect on a date prescribed in the Finance Act that enacts those rule changes.”

He says a date for operators to formally change their systems could be included in the budget speech.

From pixels to physical IP

For Play’n GO, the move into land-based gaming represents a strategic evolution of its content focus. CEO and co-founder, Johan Törnqvist, says the company has always viewed itself as, first and foremost, an entertainment creator with online gaming simply being the primary medium for the past two decades. “Since the very earliest days of Play’n GO some twenty years ago, I have always thought of ourselves as an entertainment company. It was never the idea to limit ourselves in that way.”

In recent years, that content footprint has expanded beyond digital screens – a trend increasingly necessary for content to build scalability. Play’n GO’s proprietary characters now appear on merchandise and soundtrack playlists, while the studio actively promotes its intellectual property (IP) through visible storytelling. The step into land-based casinos, Törnqvist explains, is a logical progression of this strategy, affirming the content’s ability to transcend its original medium.

That transition is being achieved through a partnership with Genting Casinos, one of the UK’s leading operators. Together they have developed the BOOM Slots cabinet, designed exclusively for Genting venues. The rollout will showcase a selection of Play’n GO’s best-known titles across more than 30 properties, including London’s flagship Genting Stratford casino.

The collaboration developed quickly, driven by a shared strategic goal to blend proven successful digital content strategies with traditional gaming environments. Early technical trials at Resorts World Birmingham, where the titles have been live for over six months, have demonstrated strong performance, providing both sides with the data necessary to expand the rollout.

Why the UK came first: A controlled testbed

Launching in the UK was a strategic choice. The market has long been central to Play’n GO’s success online, with titles like Book of Dead and Reactoonz securing a loyal following among British players.

“The UK has been a core market for us for a long time,” Törnqvist says. “It’s large, well-regulated and familiar with our content, which makes it ideal for a sustainable rollout. Add to that Genting’s footprint across the country, and we have the scale to reach a broad audience right away.”

Crucially, the UK’s stable, mature regulatory environment provides a controlled testbed. The synergy between an established operator network and a globally recognised content provider allows the partners to thoroughly validate the technology and cross-channel appeal before an international rollout. This positions the initiative as a solid case study of how digital-first IP can be safely and effectively transferred to physical spaces.

The experiment: From digital volatility to casino floor

The initial wave of releases is a calculated experiment designed to test the land-based audience’s appetite for modern digital mechanics. Titles such as Rich Wilde and the Book of Dead headline the launch, alongside fan favourites Reactoonz, Honey Rush 100, Piggy Blitz, and Legion Gold.

Törnqvist explains that the selection of titles was designed to showcase the range of themes and mechanics that have defined the company’s success. “What sets Play’n GO apart is that, over the years, we’ve created so many iconic slots. Games that are instantly recognisable and adored by millions around the world. People should feel that buzz the minute they see the Play’n GO logo, because they know what it stands for.”

The core test lies in how land-based players, who are traditionally accustomed to classic reel structures and lower volatility, will respond to highly volatile, feature-heavy, and non-traditional slots such as the grid-based Reactoonz series. The studio believes the familiarity of these titles among online players will encourage them to engage with these modern mechanics in the new environment.

Addressing the land-based demographic gap

Land-based casinos need to evolve in order to attract younger, digitally fluent players looking for experiences that mirror the entertainment they already enjoy online. Play’n GO’s content is now being used as a key solution tool to address this industry challenge.

The betting behaviour of younger audiences is notably different; they seek rapid gratification, prefer mobile engagement, and expect instant integration between content viewing and wagering. By bringing the familiarity of online into play – this move can potentially bridge that gap. Törnqvist believes many of the assumptions about land-based audiences are now outdated – with younger audiences now coming into play. “Players are far more open to new experiences than people often think,” he says. “A new generation is coming through that’s already familiar with online mechanics.”

Play’n GO titles, which are fast, feature-rich, and story-driven, fit naturally into this evolving landscape. By bringing well-known online titles to physical venues, Genting gains a new way to market its brick-and-mortar casinos and attract demographics who might not have previously engaged with land-based gaming. Early results indicate that this approach is resonating strongly, offering operators a credible, long-term bridge between digital familiarity and on-site experiences. Törnqvist notes, “Being able to feature Play’n GO games gives them a whole new demographic to market their brick-and-mortar casinos to – and we’ve seen evidence that this approach is working for Genting already.”

“Players are far more open to new experiences than people often think”

Furthermore, on the operational side, compliance and integrity are integral. The partnership requires an extensive set of systems to match regulatory requirements and risk management, with Play’n GO adapting its existing monitoring systems to identify irregular betting patterns and problem gambling within the physical environment.

The convergence strategy

The Genting partnership is only the first stage of Play’n GO’s wider land-based strategy. Over the next three years, the company plans to make land-based gaming a formal pillar of its rollout, with the goal of introducing its content to thousands of cabinets globally.

This long-term vision reflects the broader industry trend of convergence. Content providers must adapt their supply chains to develop titles that are distribution-agnostic. We’re witnessing a growing trend from the market’s largest suppliers seamlessly distributing titles across all physical and digital channels as a core business strategy.

Törnqvist explains that Play’n GO has always aimed to create “great stories and memorable characters,” and that the platform is secondary to the experience itself. The goal remains to deliver content that connects, regardless of whether players engage online or on the casino floor. “We have a rich history of making decisions that at the time may seem unexpected, but very quickly begin to make lots of sense. Moving into land-based gaming is pretty typical of Play’n GO.”

The new content imperative

This shift, however, comes with a significant operational burden. The cost of manufacturing dedicated land-based cabinets, meeting separate regulatory standards for physical machines, and creating unified player tracking systems is immense. Play’n GO’s size allows it to absorb this cost, establishing a new, high barrier to entry for the content market. Ultimately, the successful deployment of Book of Dead on a physical casino floor proves that IP can bridge the great divide.

The real test will be whether other studios can make the leap – or whether this marks the start of a new divide in content creation.

CEO and co-founder of Play’n GO, Johan Törnqvist

Estimates suggest global annual esports betting revenue will have reached $2.8bn by the end of this year – a 12% year-on-year increase and more than double the figure of just four years ago. Next year, the total is projected to surpass $3bn.

This sharp growth in the 2020s has led to an inevitable increase in regulatory scrutiny. However, the relatively nascent nature of the vertical has left many watchdogs playing catch-up. 

In many jurisdictions, there is a lack of regulatory clarity that appears to be borne out of an intrinsic lack of understanding of esports, as well as esports betting. Nowhere is this more apparent than in the US. Despite the growing popularity of esports, traditional sports wagering is still legal in more than twice as many states as esports betting, and 19 states are considered grey states, meaning they lack specific legislation related to esports betting.

Building understanding and trust

Across the world, regulatory oversight of the vertical is still in its infancy in many territories. For esports betting solutions supplier Oddin.gg, the challenge is to work with policymakers in different regions to build understanding and ultimately trust.

“We are trying to educate regulators about what esports actually is,” Oddin.gg co-founder and managing director Marek Suchar says. “We are locally present [in different markets] so essentially our staff are on hand to address concerns in native languages. 

“The goals are different for different regulators, so we are trying to have open discussions and do the educational part at the same time as building relationships with regulators. Many times it is about addressing the mainstream perception of esports betting.”

One of the key misconceptions regarding esports is that the activity engages those under the legal age to bet. 

“There have been a lot of misconceptions around esports betting. Many of those are tied to mass media messaging.”

Whilst it is true that esports has long been touted as a vehicle to engage a younger audience, with the 18- to 43-year-old age group accounting for 87% of the activity’s betting audience, the average age of an esports bettor is comfortably above the lower threshold in regulated markets. 

For instance, the average age of an esports punter hovers between 29 years old for League of Legends and 31 for Counter-Strike – two of esports’ most popular titles. 

“There have been a lot of misconceptions around esports betting,” Suchar says. “Many of those are tied to mass media messaging – the assumption is that there is underage betting because the players themselves are underage. That is not true.

“We have run our own analysis and found that, out of the top 100 esports teams, only one would have been classified as underage. Furthermore, when it comes to underage bettors, the operators require proof of age.”

Worldwide experience

Oddin.gg provides a range of esports betting solutions spanning odds feeds, risk management, iFrame solutions, marketing and more for leading iGaming operators like Betway, Yolo Group and Aspire Global in a range of markets. This worldwide experience allows them to draw upon substantial know-how and share their learnings with operators and regulators in different jurisdictions.

“Each region has a different perception about esports betting, but the concerns are often similar,” Suchar adds. “We can usually tell regulators how we have already answered these questions in other markets, so we have the narrative prepared. 

“At Oddin.gg, we hold multiple licences across the world. In North America, for example, we are licensed in Arizona, New Jersey, Colorado, West Virginia, Ohio, and Ontario – and that gives us credibility if we start speaking to regulators in other states.

“We are basically saying, ‘look, we are already regulated across multiple jurisdictions and we work with reputable brands’. When it comes to betting, we understand the trends and we understand how the industry works.”

That understanding extends to the nuances of the esports sector, which, unlike traditional sports, does not have a universally recognised international governing body to provide ultimate oversight. 

Given the growth of esports, regulators in this vertical will likely need to move fast to keep pace with the industry. According to Oddin.gg’s Esports 2024 report, betting volume climbed sharply year-on-year, with one major title recording up to a 175% increase and average bet count rising by 131%. Total wagered amounts and average stakes also climbed across major tournaments compared to 2023, underlining the strength of the game publisher-dominated landscape.

The broader esports umbrella goes beyond games like Counter-Strike 2 and League of Legends to include fast-bet e-simulator games, which offer a completely different proposition. Understanding these distinctions is crucial not only for operators, but also for regulators seeking to design effective frameworks.

“The core esports audience for the likes of Dota 2, Counter-Strike and League of Legends is different as they have been playing and watching these games for years and are heavily invested in the games and what they bet on,” Suchar says. “Then you have a separate audience which bets on electronic simulators such as e-football and e-basketball where it is essentially these sports being played in a studio on a console.”

What’s important for operators and regulators to understand is that esports fans represent an attractive segment of the market. They are more likely to be in full-time employment and have a university degree than the general public, and nearly half earn more than $100,000 per year, according to an executive at a prominent esports team.

The importance of education

However, there is still work to be done on educating esports followers, as well as gambling regulators. It is noteworthy, for example, that one in three esports fans who do not wager on the action say they are ‘unsure how betting works’, according to iGB’s Esports Betting Report 2024.  

A step in the right direction can be taken by considering the consumption habits of younger adults, who represent the primary market for esports betting.

“When we are looking at millennials and Gen Z bettors, what is critical for them is having content on demand,” Suchar says. “If they want to watch a movie, they just go to Netflix. If they want to listen to music, they go to Spotify. If they want to consume a certain type of content, they go to YouTube.”

This ‘always on’ element is one of esports’ biggest advantages over traditional sports, which have natural breaks in the schedule and calendar throughout the day, week and year.

“With esports, they can bet almost all the time, and we have more than 15 live markets for the titles that we trade,” Suchar explains. “There are multiple opportunities to bet within each game.”

In the final quarter of last year, nearly half of all Counter-Strike bets were placed during contests, while the proportion of wagers that were props increased to 13%, showing a growing interest in the players at the heart of the competitive action.

“In sport, many of the players have a bigger following and fan base now than the teams themselves – and this trend is even greater in esports,” Suchar says. “So there are lots of reasons why bettors can come and stay engaged.”

A question of integrity

Collaboration with partners and regulators alike is a vital element of Oddin.gg’s strategic approach. With this in mind, the integrity question is one that has to be addressed openly and honestly from the outset, with the provider working closely with organisations like the International Betting Integrity Association (IBIA).

“In terms of match-fixing, robust risk management systems are in place with the right algorithms and the right personnel, so we are able to identify in real time any suspicious activity and inform our partners,” Suchar says. “On an annual basis, we see perhaps a couple of billion euros bet on our lines – and the question is, are we able to identify suspicious patterns when we look at the gameplay, like with traditional sports?

“What we see in esports is that we are able to identify those patterns, because we can analyse data from our traffic and our partners and compare it with previous events. If something is potentially suspicious, our title experts will then look into the gameplay and provide feedback to our partners on whether anything has happened that requires further investigation.

“With the tournament organisers and the integrity bodies, this is how we are trying to build confidence in the ecosystem – by showing that we are taking care and can produce a paper trail of evidence if something happens.”

“It is vital to educate regulators about how esports betting should be regulated, because they do not want it to go underground.”

Suchar is adamant that nurturing a “three-pronged partnership in terms of regulator, bookmaker and provider” is essential for success.

“Especially in a highly regulated market, this kind of collaboration is a critical element,” he adds, citing Oddin.gg’s recent work with its partners in Brazil.

“It is vital to educate regulators about how esports betting should be regulated, because they do not want it to go underground.”

Ultimately, Oddin.gg’s mission is about more than compliance. By combining technological sophistication with advocacy and collaboration, the company is helping to shape a safer and more sustainable future for esports betting.

Marek Suchar, co-founder and managing director, Oddin.gg

Acquisitions, aggressive expansion into retail betting and a determination to navigate Germany’s highly complex regulatory framework have turned it into one of the country’s most ambitious emerging challengers. 

Under the direction of 54-year-old CEO Pierre Hofer, who has been on the board since 2010, the company is accelerating a wave of consolidation that is reshaping the German betting landscape. 

The major acquisition by Pferdewetten AG subsidiary NetX Betting of the HappyBet franchise from Playtech, as part of the latter’s B2C exit, marked a major pivot for Pferdewetten.de AG. The deal was announced in late May and includes approximately 600 hardware units, such as betting terminals and POS systems. The main strategy is a simple question of gaining market share, explains Hofer to iGB. 

“We knew we could make the shops perform better with our product, improving revenues for franchisees. Playtech also wanted a fast and simple deal,” he says. But for Pferdewetten.de AG, it is only the beginning. A joint venture with Bet3000, another retail heavyweight, is already under way. 

“This [next] deal is actually five to six times bigger than the HappyBet deal. They will switch to our licence. Contracts are ready to sign and several dozen shops are already in the process of switching.” 

And yet another deal is on the horizon, Hofer says. He reveals that his company is in talks with another important player. “But I cannot talk about it for now. It’s consolidation.” He insists an announcement is imminent. 

Reshaping the German betting landscape 

For a company long in the shadow of national giants such as Tipico, the prospect of a sudden leap in scale is dramatic. Hofer admits that the past year has been transformational: “We have seen more or less every single part of a life with ups and downs,” he says. Yet the ups increasingly outweigh the downs. 

Pferdewetten.de AG began modestly during the early days of online betting. In its formative years, it offered general sports betting – until a lack of regulation forced a retreat. “Because we didn’t have a law or regulation for sports betting, management decided to pull out of the sports betting market and focus on horse racing,” says Hofer.

It was a fateful decision. Rivals pressed on in the regulatory grey zone, eventually becoming today’s industry giants, Hofer remarks. Pferdewetten.de AG remained a niche business, profitable but limited by the scale of Germany’s horse racing market. 

The pivot back to sports betting came only in 2018, facilitated by the acquisition of the Sportwetten.de domain (sportswetten means sports betting). “ It’s more or less the best domain you can have in the German market,” Hofer says.

Revenues from the racing business financed the relaunch. “We took positive results and cash from the horse racing business and invested them into the sportsbook in Germany,” he says. The firm grew cautiously, “in line with predictions”, while biding its time for a larger opportunity. 

That opportunity arrived in 2021. “The entire team of a leading sports betting operator in Germany – offering land-based shop betting and online betting – was looking for a new home. They had major discussions with the owner and decided to split,” Hofer explains. The move signalled turbulence among competitors – several foreign firms were shrinking their German exposure or withdrawing outright as compliance pressures mounted. Yet Pferdewetten.de began amassing talent, technology and shop expertise. 

The company’s business model shifted too. “We transformed from a stable, ‘boring’ horse racing operator into a sports betting startup, investing heavily. We moved from paying dividends to issuing capital increases and convertible bonds,” Hofer notes – a clear signal to investors Pferdewetten.de was preparing to scale. 

HappyBet: The deal that set the pace 

The next turning point was the aforementioned acquisition of HappyBet. Following Flutter’s purchase of Snaitech, the German HappyBet business was left in limbo and with Playtech, eager to complete its B2C exit, it sought a buyer. Hofer moved quickly. 

“Around a year ago, we started negotiating with Snaitech and Playtech to get hold of these franchise shops,” he recounts. The final agreement brought over a substantial portion of the HappyBet retail estate – along with the Maltese HQ, employees and several hundred betting terminals. Compatibility with Pferdewetten.de’s systems was a lucky bonus. “Our supplier is the same, so terminals are 100% compatible without major investments,” Hofer applauds.

HappyBet’s steady decline meant the portfolio required selective pruning. “There were maybe 90–95 shops available. We didn’t want around 30–35 of them – too small,” Hofer says. Even so, the remainder represents meaningful scale: “Yes, as expected, we are integrating a mid-double-digit number of shops.”

Pferdewetten.de wants to be number two behind Tipico

Perhaps it is the next chapter that signals a more profound shift. Alongside HappyBet, Pferdewetten.de is finalising a joint venture with Bet3000, one of Germany’s most recognised retail operators. Hofer outlines the scale: “They run 68 owned shops and 120 franchise shops.” 

Contracts are “ready to sign”, he says, with several dozen shops already migrating. If executed as outlined, the group could operate approximately 400 shops by mid next year – a remarkable escalation for a company that entered the retail market only in 2022. 

And then comes the tantalising hint of the new as-of-yet unannounced deal. The implication is clear: Pferdewetten.de is lining up a third acquisition, potentially larger than HappyBet, in a market where weaker operators are seeking exits. 

Hofer’s ambition is now explicit: “Three or four years ago, there were 11 players in the retail market. Now we are down to six. The Bet3000 deal will make it five. Another deal may make it four. Our goal is to become number two in the market – after Tipico – within four years of operations.” Tipico has a current market share of around 50%. 

For a company that once abandoned sports betting entirely, the target is bold. And Hofer’s enthusiasm suggests that he sees consolidation not as opportunism, but as a once-in-a-generation chance to model Pferdewetten.de AG’s trajectory. 

Germany’s regulatory knot 

The obstacle, as always, is regulation. Since the introduction of the Interstate Treaty on Gambling in 2021, Germany has imposed strict monthly deposit limits which narrow product offerings and require heavy compliance reporting. 

Hofer is blunt about the challenges. “Deposit limits make things complicated. It’s overregulated,” he says. He points to the flood of offshore competition. “There are more than 430 illegal betting platforms targeting Germany.” With restricted odds and capped deposits, “many high-volume customers go to illegal platforms. The online casino market is hit very hard.” 

Even fully compliant operators pay a steep price. “Compliance costs are huge – seven digits per year,” he says. “Last quarter alone we spent €300,000 on lawyers and consultants, excluding employees.”

He hopes that next year’s planned update to the treaty may ease restrictions. “Authorities believed they had 95% channelisation – this was unrealistic,” Hofer says. In reality, “the market appears to shrink but actually grows underground.” 

On whether regulation will improve, his answer is measured: “We hope so. Authorities are slow, but starting to understand reality.” 

Performance and prospects 

Despite regulatory pressures, the company’s underlying business is strengthening. “Third-quarter numbers were presented today — we didn’t expect to disappoint. We are at more or less break-even now,”  Hofer notes, adding that next year it should deliver “record EBIT”. 

Growth has been helped by a broadening retail base and a strong sportsbook product built specifically for domestic preferences. “We focus on the German market nationwide – from Munich to Hamburg to Berlin,” he says. 

There is tentative expansion abroad. The company also operates in Denmark under JackpotBet.dk, licensed for sports betting and casino, and maintains a small presence in Austria. But Germany remains the overwhelming priority. 

Asked whether the model is sustainable amid regulatory change, Hofer replies: “Yes, definitely for the next few years. Regulation can change, but we don’t expect it to get worse.” 

The company that in 2007 stepped back from sports betting now stands on the verge of becoming Germany’s second-largest retail operator. In one of Europe’s strictest markets, Pferdewetten.de AG is betting not on luck, but on timing – and on the sudden availability of competitors’ assets. 

If Hofer’s instincts prove correct, the horse racing specialist may soon find itself racing among giants. 

Members of the Federation of State Gaming Regulators of Nigeria (FSGRN) and the CEO of Enugu State Gaming and Lotto Commission Prince Arinze Arum lauded the steps taken to implement global best market practices across the country. Prominent among them is positioning Nigeria’s state regulators at the forefront of global gaming regulations.  

Speaking to iGB on 13 November, Arinze notes the initiative would steer Nigeria’s iGaming operations in the right direction if well implemented. “This structured exchange of knowledge programme is indeed commendable and reflects the forward-thinking posture of the FSGRN,” he says.  

“As a member of the association, the Enugu State Gaming and Lotto Commission is fully aligned with the spirit and objectives of the collaboration with GESPA. We are, however, still awaiting the full details of the arrangement and how its outcomes will be domesticated across the various state commissions.  

“That said,” he continues, “the concept itself is a strong signal that Nigeria’s regulators are serious about deepening global cooperation, improving regulatory capacity and embedding best practices in consumer protection and responsible gaming. 

“This kind of partnership ultimately benefits operators, too, by creating a more credible, transparent and trustworthy environment for iGaming in Nigeria. I fully believe it is a step in the right direction, and one we look forward to seeing fully implemented.” 

The current state of Nigeria’s iGaming regulations  

When quizzed on whether he feels the regulations in Nigeria are closely mirroring global standards and the industry’s best practices today, Arinze agrees that progress is being made. Arum believes that, with time, other countries from around the continent could emulate them.  

“I would say that Nigeria’s regulators have made significant progress in aligning with international standards,” he adds. “The last few years have seen a deliberate shift towards harmonisation, where regulatory frameworks have not only been consistent across states but have been benchmarked against the principles of integrity, fairness and player protection that define modern gaming oversight.”

Arum believes Enugu and Lagos have implemented policies which increasingly mirror those in mature jurisdictions such as the UK, Malta and other parts of Europe.  

Putting things into a wider context, he says the state regulator’s focus is on robust licensing, digital transparency, responsible gaming frameworks and effective tax compliance.  

“Given this trajectory, I believe other African markets will soon begin to emulate Nigeria’s approach. Our country is already becoming a reference point for structured gaming regulation in sub-Saharan Africa, showing that with the right policy leadership, local markets can achieve both investor confidence and consumer trust.” 

Enugu state to boost foreign investor confidence

Arum says the commission is working around the clock to roll out and strengthen initiatives that will significantly improve market standards and boost investment confidence in and around the state.  

“At the Enugu State Gaming and Lotto Commission we are prioritising reforms that make our market more transparent, investor-friendly and socially responsible,” he said before going on to explain these initiatives.  

The first initiative is to strengthen regulatory technology infrastructure to ensure real-time monitoring of operators’ activities. This will help improve compliance and enhance data integrity and consumer protection. 

Second is a responsible gaming and legal education framework that engages agents, operators and players. The aim is to make gaming literacy a shared responsibility, “because a well-informed market is a safer market”, Arum says.

An additional project with the state government is seeking to create an investment facilitation window, which will streamline approvals and reduce bureaucratic friction for legitimate investors who want to establish themselves in Enugu.  

These initiatives will be designed to position Enugu as one of the most progressive, transparent and technology-driven gaming jurisdictions in Nigeria.

Can a centralised regulatory framework work in Africa?

Many recent conferences in Africa have revolved around the continent centralising gaming regulations. This move would allow operators licensed within a specific regulatory framework to do business around the continent with fewer hitches.  

Arinze feels it is a progressive idea but, in a practical sense, different cultural perceptions of gaming as well as varied legal systems make it a difficult thing to implement.  

“You see, in principle, regional harmonisation is an attractive idea. It speaks to efficiency, integration and the growth of Africa’s gaming economy,” Arum notes. 

“However, in practical terms, achieving a single cross-border regulatory framework for gaming in Africa is a much more complex proposition. Each country currently operates under distinct legal systems, taxation models and cultural perceptions of gaming. These differences shape how each regulator defines responsible gaming, determines suitability criteria and enforces compliance.” 

The idea of an operator licensed in Nigeria seamlessly being able to operate in Ghana sounds progressive. However, it would require a deep level of policy coordination, mutual recognition of standards, and political will across jurisdictions. Arinze recognises some of the necessary elements for this are not yet fully in place. 

“I believe that gradual collaboration is the way forward,” he concludes. “We can start with bilateral or sub-regional agreements on information sharing, AML compliance and responsible gaming standards. Over time, these can build the foundation for broader harmonisation.  

“While I’m optimistic about greater regional cooperation, I would say that full cross-border operational harmonisation will remain an aspiration which won’t be achieved overnight.” 

Rival supplier Playtech was, in October, unmasked in US court filings as the client behind a covert campaign that had employed the Israeli intelligence firm Black Cube to produce and circulate a defamatory report accusing Evolution of trading within black markets.

The dispute has all the ingredients of a boardroom thriller: disguises, fake identities, hidden cameras and dossiers couriered to regulators. Yet beneath the surface lies a more immediate concern for investors: what do the claims and some of the report’s findings mean for Evolution’s valuation, reputation and ability to sustain shareholder confidence? 

Immediate impact

The case traces back to December 2020, when Playtech contracted Black Cube to craft a report designed to damage Evolution’s standing in the US and European markets. Black Cube’s findings came to a close in November 2021 in a complaint filed with the New Jersey Division of Gaming Enforcement, which alleged that Evolution’s games had been deliberately supplied in jurisdictions under US sanctions, such as Syria and Iran.  

However, according to court filings, Black Cube’s methods were elaborate and ethically dubious as agents posed under false pretences, secretly recorded current and former employees of Evolution and cherry-picked evidence. Depositions revealed that Black Cube’s co-founder, Avi Yanus, was promised a six-figure success fee for achieving specific outcomes.

Evolution’s statement claimed that the New Jersey Superior Court deemed Black Cube’s report “objectively false”, however the court’s February 2025 ruling said, “this court is not making any dispositive finding with regard to the merits of Plaintiffs’ case.” It therefore deemed the case to still be in its infancy. 

Evolution’s public release, which broke the news on 21 October, portrayed Playtech in a particularly nefarious light. The release described Playtech’s actions as a “smear campaign” and “a defamatory scheme”. The statement also described the Playtech-commissioned report as “highly inflammatory”, intended to “substantially harm” Evolution. The immediate market impact was felt by Playtech as its share price plummeted between 25% and 38%, reflecting investor concern over its role in commissioning the investigation.

The gaming giant’s share price bounced back in the couple of days following Playtech’s public response to Evolution, also released on 21 October.

Short-term PR bruise or long-term credibility at risk?

Evolution’s share price, by contrast, held steady or even rose slightly upon the release of its statement, signalling the market’s initial support for the Swedish company.

Ben Robinson, managing partner at Corfai Capital, interprets the market response as a reflection of the companies’ different roles, as portrayed in the court filings. He also highlights Evolution’s image within the media coverage, compared to Playtech.  

“The market punished Playtech, while Evolution held steady or rose slightly. The street clearly saw Evolution as the target, not the culprit,” he notes. “The 2021 dossier probes closed in February 2024 with no action, blunting the claims and capping further downside unless new facts emerge. Headlines could still sting, but this looks priced in, a short-term PR bruise rather than a lasting rerating.” 

Reputational risk

Despite the apparent resilience of Evolution’s share price, the litigation and public disclosure of internal filings carry reputational risks. Robinson cautions that even if Evolution wins the final dispute, filings and findings could stir old concerns over grey market exposure. Evolution has said its long-standing complaint against Black Cube will be updated to include Playtech.

An affidavit made by Yanus, and shared during court proceedings, suggested Evolution was supplying games in Iran, Sudan and Syria – countries designated as state sponsors of terrorism. Evolution, in its most recent case filing disputing claims made by Black Cube, has insisted these were “material false statements”.

But court documents relating to Evolution’s case include comments that suggest Evolution does maintain some presence in black markets. The document cites a recording made by Black Cube of a conversation with Kfir Kugler, the founder and CEO of developer Ezugi, a live casino developer Evolution acquired in 2018. It quotes Kugler as saying: “[W]hat we do is that we supply products. This is, you know, unofficial. So, we do have games for Kurdistan and Iraq.”

Separately, Evolution remains embroiled in a UK Gambling Commission investigation for providing its games to black market operators. An update on this is expected before the end of the year. “I’d expect pointed questions from investors, but no break in confidence. The risk now sits in perception, not fundamentals,” Robinson says of the review.

Asia cyber attacks and RNG performance impacts Evolution valuation

Evolution claims the 2021 report has caused “multi‑billion‑dollar damage” to its business and share value. Reports have previously said that when the report first came to light, Evolution’s share price “plummeted by more than 30% over the week, wiping approximately $10 billion off its market capitalisation”.  Current data show Evolution’s market cap at around €11.6 billion (at the end of October 2025), which is a drop from about €26.9 billion in December 2021.

But beyond its long-claimed links to grey or black markets the supplier has faced increased valuation damage from continued cyber attacks across Asia and internal restructuring following a number of acquisitions. Its RNG business has been on a slow recovery journey for the last few quarters.

As the dispute progresses, the case could continue to impact share prices for both Evolution and Playtech, Robinson says. “From a share value perspective, both sides appear to have little to gain from letting this escalate.”

With regards to access to operators in unregulated jurisdictions, the complex web of aggregator networks and VPN usage makes complete prevention virtually impossible. 

“Content from major suppliers, including both Evolution and Playtech, often appears through third-party aggregators. That doesn’t prove direct involvement; it reflects the increasingly fragmented nature of distribution,” he adds.

Evolution must abide by Market Abuse Regulation

An equity analyst speaking to iGB under condition of anonymity, believes both Playtech and Evolution are aware their products seep into unregulated territories, and they should also be aware how bringing attention to this will eventually damage them both.

“It’s common knowledge that content leaks into grey or even black markets through intermediaries or cloned instances. Everyone in the sector understands this, and both sides must recognise that escalation could harm them equally,” they add.

Evolution, listed on the Nasdaq Stockholm exchange, faces particular scrutiny under the EU Market Abuse Regulation (MAR). When court proceedings reveal information that could affect a company’s valuation, that data may qualify as inside information – requiring prompt public disclosure. Failure to do so can invite regulatory investigation or sanctions. 

A Nasdaq spokesperson declined to comment on the specific case but told iGB: “It is the company’s responsibility to assess whether information constitutes inside information and to indicate this in the press release with reference to MAR.

“We continuously review that issuers comply with the Exchange’s rules and may initiate an investigation against an issuer if there are suspicions of rule violations.” 

Evolution’s balance sheet looks strong 

The saga underscores the growing struggles of corporate rivalry in the online gambling industry. Black Cube, known for its work in geopolitical and corporate espionage, was contracted to explore potential misconduct against a competitor.

Yet the path to accountability has been slow, with Black Cube repeatedly resisting court orders and Playtech striving to remain anonymous for some time. The litigation comes at a moment when the regulatory environment for B2B gaming suppliers is tightening, particularly in Europe.

Richard Williams, a lawyer at Keystone Law, notes that the issues raised in Evolution’s case are far from isolated. “The CEO of the Gambling Commission [Andrew Rhodes] said at his briefing in London on 7 November, that there will be a lot more to come in relation to games suppliers providing games to black market operators serving the UK,” he notes.

“I do not therefore think that Evolution is a special case. We are likely to see a lot more enforcement activity against licensed B2B software developers over the course of the next 12 months.” 

Broader implications on competitive ethics?

Investors will be watching not only the legal outcomes but also the broader implications for governance, compliance and competition ethics. Robinson suggests that the case may reshape investor thinking around reputation and ethics within the sector. “The case paints Playtech as the instigator and that plays in Evolution’s favour.

“The market split confirms it, positioning Evolution as the one smeared, not at fault. Regulators are likely to stay on the sidelines, but sentiment clearly leans against Playtech. In the B2B igaming space, investors may start scoring ethics and rivalry conduct alongside compliance, raising scrutiny on intel tactics.” 

Financially, the litigation and reputational fallout have not materially destabilised Evolution, which has historically had a strong balance sheet and substantial liquidity. “I’d expect a small risk premium to linger until the case closes, probably into 2026. Evolution’s balance sheet looks strong enough to support ongoing dividends and buybacks, and legal costs appear contained. Unless those costs escalate meaningfully, there’s no clear reason for capital policy to change,” Robinson observes. 

Nonetheless, the firm’s leadership is conscious of the need to maintain investor trust and demonstrate transparency. Adrian Westman, Evolution’s head of communications, underscores the company’s ongoing commitment to compliance and responsibility.

“Compliance is everyone’s responsibility and Evolution takes it with the utmost seriousness. Evolution invests significantly in systems and technology and uses all tools at our disposal to ensure compliance with all applicable laws, regulations and industry standards,” he tells iGB.

Playtech has also indicated it is committed to overall sector compliance and, in its 21 October statement, said it was “confident that these proceedings will confirm the credibility and legitimacy of the investigation and the importance of the issues it seeks to address”.

“Playtech welcomes court examination of the report and its findings,” it added.

More than a legal scuffle

The case illustrates the tangible costs of reputational warfare. The initial report did not only provoke regulatory scrutiny but resulted in significant financial damage to Evolution. Despite the eventual vindication, being targeted by a well-known competitor using private investigators can quietly hurt the company’s reputation and make investors less confident. 

Robinson reflects: “This dispute highlights ‘reputational warfare’ as a tangible cost of doing business. It echoes Evolution’s 2022 short-seller hit and other recent intelligence skirmishes across the sector. Boards will now tighten oversight of vendor conduct and due diligence, while ESG investors scrutinise governance around reputation management.” 

In January 2022 the company was hit by a short report that claimed the company’s unregulated revenue should have been valued differently from its regulated revenue.

Playtech, meanwhile, is left to contend with the fallout from being publicly identified as the orchestrator of the campaign against Evolution. The £1.8 million paid to Black Cube, while significant, pales in comparison to the reputational and financial costs of a collapsed share price and regulatory attention. For a publicly traded company, a shock of this scale can translate into lasting scrutiny from investors, regulators and analysts, even after the immediate financial penalties are absorbed. 

The Evolution saga is therefore more than a legal scuffle: it is a reminder that in the digital, highly regulated world of online gaming, the boundaries between competition and deception can blur, and the consequences are measured not only in pounds or euros, but in trust and market confidence. 

Evolution continuously denies black market links

As the case progresses through 2026, it will continue to command attention from investors, competitors and regulators alike. However, Evolution is confident in its legal footing. Westman insists the company’s focus is on accountability rather than damage control. “Evolution’s current defamation litigation is the company’s effort to hold Playtech and Black Cube accountable for its wrongdoing and protect shareholder value,” he said. 

But Playtech is also confident of its position. In its public statement it said its subsidiary approached Black Cube as an independent investigator to look into “credible and repeated concerns” from operators, suppliers and regulators about Evolution’s activities in prohibited and sanctioned markets. 

When asked by iGB, Westman insists the findings in the Playtech-commissioned report were false. Indeed, Evolution has for several years firmly denied it has had any involvement in illegal activities.

The next legal steps for Evolution will be to prepare its defamation case against Playtech and Black Cube case for trial, which is expected to run through 2026. “We are confident that the law and facts are on our side and look forward to presenting our case,” Westman adds. 

“As a group, we’re deliberately shifting away from that short-term cash mindset,” Falzon tells iGB.  

She says the company is leaning on its “truly unique” technology platform to drive its new strategy.  

“It’s highly agile, allowing us to enter new markets quickly and deliver exactly what customers want,” Falzon tells iGB. “We believe that, combined with our ecosystem of live studio, slots and aggregation products, this agility gives us a strong advantage.  

“In the regulated space, this means we can move faster than competitors, adapt to local requirements efficiently and provide a superior, compliant experience for players.” 

In September, Yolo announced it would incorporate its Sportsbet and Bitcasino brands into the single Yolo.com brand, which it would utilise to target Tier-1 regulated markets. 

Yolo has already secured two gaming-related vendor licences for its Hub88 Holdings and Live Online Gaming Services subsidiaries in the UAE. These licences will allow Yolo to supply iGaming content to the regulated market in the UAE.

With Yolo having enjoyed a hugely successful period as an unregulated operator, the move away from grey markets raised questions over how exactly the company would manage this seismic shift. 

Shift from quick-buck mentality 

In its announcement the company said it had a responsibility to bring the crypto casino experience to regulated domestic markets. 

This has necessitated a cultural shift for Yolo, and Falzon describes the strategy change to one of heavy regulatory compliance as “by far the biggest hurdle”. 

“In terms of changes, I think the biggest one is mentality,” Falzon explains. “I’m not saying we’re done yet.  

“Historically, our business has operated at a pace of speed, speed, speed – let’s get the money, let’s move fast. But when you’re dealing with regulators, it’s a completely different world. 

“There’s a lot of paperwork, processes and procedures that we have had to implement. It requires patience and discipline, and it changes how people think – some initially resist because it doesn’t feel immediately revenue-generating. But that’s part of the regulated environment and embracing it has been a major shift for us.” 

A long-term financial outlook for Yolo Group

Falzon raises an interesting point on margins, with iGaming and sports consultant Stefan Kovach previously telling iGB that Yolo’s strategy change could “significantly impact” its profitability, at least in the short term. 

But this is something Yolo is well aware of, says Falzon, and it has formed a large part of its strategy.

“I believe it’s about more than just margins – it’s really instant cash versus long-term valuation,” she adds. “It’s the million-dollar question that many business owners ask themselves: do you prioritise immediate cash and dividends, or focus on building sustainable, long-term value?  

“We’d rather invest in creating a robust, high-value proposition that positions Yolo for growth, stability and leadership in regulated markets over the long term.” 

Will Yolo Group face increased scrutiny from regulators? 

In the announcement of its plans, Yolo acknowledged domestic regulators “are not keen” on operators continuing activities in other pre-regulated markets. 

Elizabeth Dunn, partner at UK law firm Bird & Bird, suggested Yolo’s previous position as a grey-market crypto operator could raise concerns among Tier-1 regulators. 

“Regulators in most Tier-1 markets continue to struggle with the idea of operators directly accepting cryptocurrencies and/or being funded through cryptocurrencies,” Dunn previously told iGB. 

“Yolo’s history as a crypto-first operator is, therefore, likely to come under scrutiny when regulators are assessing its suitability to hold a licence.” 

But while Falzon emphasises the strategy change hasn’t been an “easy ride”, Yolo’s collaboration with regulators has made the transition smoother. 

“I believe proactive engagement, transparency and collaboration is paramount,” Falzon says. “We are not shy of our crypto origins; it defines who we are. However, at the same time, we want to collaborate closely with regulators, educating them about our platform while learning about their concerns.  

“By working together as a team, we can find a middle ground that ensures player protection, transparency and compliance, while allowing our technology and ecosystem to deliver the best possible experience for our players.” 

This week, UK Gambling Commission CEO Andrew Rhodes warned the government cannot ignore crypto gambling.

However, he stopped short of saying the UK could soon issue licences for crypto-based betting, instead stating the government must take steps to regulate the activity.

The first in this special two-part series for Men’s Mental Health Month shares the stories of five remarkable men in gaming from across the continent – men who have faced loss, addiction, illness and adversity, and chosen to turn those experiences into strength, empathy and action.

At its heart, this isn’t a story about struggle. It’s about courage. It’s about what happens when men stop pretending they’re invincible and start leading with honesty and heart.

Garron Whitesman: Finding strength through loss

For Garron, losing his daughter Jaime-Rose was the deepest pain imaginable. “I lost part of my soul that will never return,” he says. “But when something this huge happens, your choice is binary – to crawl under a rock or to move forward meaningfully and positively.”

In the aftermath of unimaginable loss, Garron made the decision to keep living with purpose. “The best way to honour my girl is to keep moving forward with a smile on my face,” he shares. “I feel her with me, pushing me forward and telling me to smile and get the hell on with it.”

His honesty about grief has made him both tougher and more compassionate. “I don’t sweat the small stuff anymore,” he says. “It’s made me more resilient, but also more understanding of others’ struggles.”

While he doesn’t see his work as a tribute in itself, Garron’s character, drive, kindness and commitment is deeply shaped by fatherhood and loss. “I’m a far better person for having been blessed to be her dad,” he says. “She taught me courage, and that’s something I carry into everything I do.”

Ladipo Abiose: Turning addiction into advocacy

For Ladipo, founder of GamblePause Initiative Africa, the fight was personal. Having overcome a gambling addiction that stripped away his confidence and relationships, he chose to build something new – a platform for recovery, education and awareness.

“Realising how much gambling addiction had taken from me pushed me to transform my pain into purpose,” he says. “Many in Africa still see addiction as a spiritual problem, not a mental health issue. We need compassion and professional help, not shame.”

Through GamblePause, Ladipo and his team have launched Nigeria’s first free rehabilitation clinic for gambling addicts and a series of outreach programmes that meet people where they are – schools, communities and online. “Recovery starts with a pause,” he says, “And a belief that you’re not alone.”

Martin Sack: Rebuilding after cancer

When Martin was diagnosed with pancreatic cancer in 2023, everything stopped. “It was the hardest period of my life,” he says. “There were days I couldn’t get out of bed. And when you work for yourself, there’s no safety net. If you’re down, the business goes down with you.”

After months of chemotherapy and surgery, Martin is now cancer-free and changed forever. “It stripped everything back to the essentials: family, health, time. Everything else is secondary.”

He’s honest about how men often struggle to open up. “We’re taught to carry everything alone. Vulnerability doesn’t have to be public –  it just needs to be real, with the right people.” What carried him through was community. “A small group in the industry quietly showed up – checking in, helping with work. No fuss, just kindness.”

His message to others? “Don’t wait. Don’t try to handle everything alone. Find your people.”

Lombo Mphande: Changing the conversation before it starts

Lombo’s work through Bet Chats takes him into schools and township communities, teaching young people about gambling and mental health before either becomes a problem.

“In South Africa, we have communities where these conversations don’t often happen, but that’s where awareness is needed most,” he explains. “We don’t lecture. We ask questions, tell stories and meet people where they are.”

His approach is rooted in honesty and relatability. “When you speak about mental health without stigma and focus on choice, young people open up,” he says. “We’ve seen students start peer-led conversations and teachers spot early warning signs. Awareness is turning into leadership.”

For Lombo, the goal is prevention through partnership. “Responsibility shouldn’t start at the point of deposit – it should start at the point of awareness,” he says. “If the industry wants to build long-term trust, we must invest in education and community.”

David Moshi: Redefining leadership and emotional intelligence

In Kenya’s vibrant gaming scene, David Moshi has become known for something rare – empowering women into leadership and building emotionally intelligent workplaces.

“At Velex Advisory East Africa, our philosophy has always been talent-first,” he says. “Women have proven time and again their ability to lead with excellence and integrity. The key is creating environments where everyone thrives based on ability, not gender.”

David believes that leadership today requires empathy, emotional intelligence and openness to vulnerability. “Men in leadership must create environments where wellbeing is prioritised,” he says. “Emotional awareness is not a weakness – it’s a strength.”

For him, embracing vulnerability has been transformational. “True resilience comes from maintaining focus on solutions, not problems. Seeking support isn’t a sign of weakness – it’s strategy.”

Closing thoughts

Across five deeply personal stories, one message echoes: strength isn’t found in silence, it’s found in connection. From Lombo’s classrooms in South Africa to Ladipo’s recovery clinics in Nigeria, from Martin’s battle with cancer to Garron’s enduring love for his daughter, as well as David’s conscious leadership in Kenya – these men show that courage and compassion can coexist.

As WiG Africa continues to expand its work beyond gender and geography, these voices remind us that mental health is everyone’s issue. This is Part One of our two-part series for Men’s Mental Health Month – stories of reflection, recovery and resilience that show just how powerful it is when men in gaming choose to speak up, step forward and lead differently.

About Women in Gaming Africa

Women in Gaming Africa (WiG Africa) is a non-profit community connecting, elevating and empowering women across the continent’s gaming industry.

Through events, mentorship and advocacy, WiG Africa champions representation, leadership and inclusion while fostering a stronger, more connected African gaming ecosystem. Learn more or get involved at www.womeningamingafrica.org.

Over the past five years, AGS has accelerated its business through major investments in R&D, expanding its land-based footprint to seven studios – and launching its online-only digital game studio. It is the opening of this studio that has been the driving force behind the rapid growth of AGS’ Interactive division, establishing a strong foundation for its digital future.

Gaming’s digital direction

It would be an understatement to say that iGaming has seen monumental growth over the past two decades, significantly growing its market share against land-based gaming in major markets.

In 2024, online gaming made up 30% of nationwide commercial gaming revenue in the United States – a new record. It is an even more drastic story across the pond in the United Kingdom, where the latest yearly figures indicate that £6.9bn of a total £11.5bn in gross gaming revenue (excluding lotteries), or 60%, is now derived from remote gaming.

Resultantly, major land-based players the world over have shifted into the online space, either organically with new digital arms, or through acquisitions.

AGS’ Interactive growth

Against this backdrop, AGS’ Interactive division has been one of the success stories of the digital transition.

Now one of AGS’ three core operating segments, Interactive is consistently its fastest growing, reflecting the growth of the North American market. In 2024, the last year for which full financial information is available, AGS Interactive saw 86% year-on-year growth supported by improved margins across the division.

“Building on our long-standing history in land-based gaming, we recognised early on that a robust online presence was essential for future success,” said Zoe Ebling, vice president of interactive at AGS.

“In 2018, we strategically acquired Gameiom – a respected UK aggregator – thereby establishing our footprint in the online market, particularly in Europe. This move was driven by visionary leadership headed up by CEO David Lopez, who understood the potential of digital channels.”

AGS’ digital-only studio

It is no coincidence that outsized revenue growth for the division coincided with the launch of the company’s dedicated, online-only game studio in 2022. The new studio was designed to enhance AGS’ ability to port its proven land-based content into digital products, supplemented by new games designed from the ground up for online platforms.

The studio is comprised of a small-to-mid-size team operating wholly remotely, with personnel across the globe. Its results, Ebling said, have been phenomenal. An overall increase in the number of high-performing games has meant higher revenues have been delivered to operators, positioning the studio as a valuable partner to online brands both at home in North America and further afield in Europe.

AGS now has a portfolio of over 80 titles built in-house, complementing its larger library of more than 1,000 games, powered by AGS’ own remote game server.

Launching an online-only studio in the hyper-competitive iGaming market isn’t easy, but AGS managed to sidestep common mistakes land-based businesses arguably make, while leveraging the insights several decades of experience in game development have afforded the gaming giant.

“Our extensive experience in land-based gaming provided us with deep insights into game design, player engagement and regulatory compliance – assets that translated seamlessly into the digital realm.

“We have delivered proven, high-quality content across both platforms by integrating the established best practices of our traditional operations with a modern, agile approach to online gaming.”

Key iGaming challenges and land-based lessons

There are three key challenges land-based companies transitioning to digital must navigate, Ebling warned. The first is adapting to the faster-paced nature of the digital landscape. In land-based gaming, development cycles are typically longer, though also more methodical. Online gaming, by contrast, demands rapid execution and agility.

“We addressed this challenge by streamlining our development process and adopting a flexible, agile framework that allows us to build and iterate quickly without compromising quality,” added Ebling.

The second challenge was navigating the online gaming market’s much quicker pace of regulatory evolution. As a newer vertical in many jurisdictions, iGaming is subject to rapid changes that can complicate market expansions, however well planned they are.

Ebling explained that the regulatory expertise and robust licensing frameworks developed over decades of land-based experience came in useful in managing the regulatory complexities of the online space.

The third challenge is the increased competitive pressure of iGaming vis-à-vis land-based. With lower barriers to entry, the online gaming market is highly competitive, making standing out tricky – even if your products speak for themselves.

Here, AGS brought the weight of its scale to the table; AGS leveraged its extensive catalogue of land-proven games, and established relationships with operators – many of whom were also transitioning online – to maintain its edge.

Ebling listed a prime example of this as the omnichannel launch of Rakin’ Bacon Odyssey with Caesars in New Jersey last year, which was part of a strategy to bring AGS’ highest-performing content to players wherever they are playing.

“Our land‐based roots have been instrumental in shaping our success online”

“These strategies have been central to our success as we navigate the dynamic digital landscape. Our land‐based roots have been instrumental in shaping our success online.

“In the world of physical casinos, every game is rigorously tested in a live environment, meaning only the highest-quality experiences make it to the floor. Our established track record gave us a strong foundation when transitioning to digital.

“Beyond game development, our expertise in licensing, compliance, and financial management streamlined our move into the digital space. Strong industry relationships and deep player insights – gained from years in land-based gaming – continue to guide our approach, setting us apart from digital-only competitors.”

AGS’ claims are backed up by results. AGS Interactive achieved the #1 Overall Supplier position in May in Eilers & Krejcik Gaming (EKG)’s US game performance chart and kept it for two consecutive months. AGS has also held the #1 Slot Supplier spot for eight consecutive months, as well as landing #1 New Overall Supplier for five consecutive months in 2025. In 2024, AGS received the gold ‘Rising Star In Casino’ award at the SBC Awards North America, and in 2025, the AGS team took home gold at the EKG Awards for ‘Top Performing New Online Slot Game’ for its game 3X Ultra Diamond, an online-first game that was created solely by its online studio.

“Our digital studio’s success is built on a foundation of talented industry experts and an agile, innovation-driven approach to game development,” Ebling said. “We’ve achieved impressive results by ensuring that we have the right people in the right roles, which has allowed us to develop a robust and flexible framework that rapidly brings complex, engaging titles to market.

“Rather than merely porting games from our land-based operations, we design our digital titles from the ground up. This approach – focused on optimisation and efficiency – has enabled us to outpace our competitors. Our commitment to innovation and quality is underscored by the accolades we’ve earned.”

The road ahead for online game studios

Solid foundations may be in place, but the dynamism and rapid evolution of iGaming industry means one cannot rest on their laurels.

Two key trends are shaping the future path forward for AGS’ digital-only studio. The first, of course, is artificial intelligence. AI has become a transformative force in game development processes the world over, and that’s equally true of online gaming.

Ebling noted that AI has enabled AGS’ studio to accelerate production, helping it create and iterate on games much faster – while also providing deeper insights into player behaviour that inform design decisions. For example, AI-enabled tools are being integrated into quality assurance (QA) scripting and testing, ensuring titles are better informed and more polished over time.

AI doesn’t come without challenges for studios, however. “If not implemented carefully, AI can introduce bugs or compromise security – issues we remain vigilant about,” Ebling warned.

“Ultimately, while AI is streamlining our workflows and boosting our efficiency, we’re committed to balancing these benefits with rigorous oversight to preserve creativity and ensure robust security in every game we develop.”

‘We view our extensive library as an opportunity to offer highly tailored experiences’

The second vital trend is localisation, which has become not a want but a need as changing regulation opens up new markets. Localisation is crucial but it goes beyond translating texts and must include the adaptation of game mechanics, branding and promotional strategies to cultural nuances, Ebling said.

Thanks to its land-based background, AGS is in the privileged position of being able to leverage its own IP, and already has experience bringing games to a new audience.

“We view our extensive library as an opportunity to offer highly tailored experiences. We work closely with each operator to understand their long-term business goals and unique audience profiles. This means our account managers use our games as versatile tools – curating and localising content to fit specific market needs.

“Our success in both North American and European markets is a testament to this approach. By aligning our curated content with each operator’s strategy, we help guarantee that players find the games that match their tastes and expectations, ultimately creating a more engaging and personalised gaming experience.”

AGS has grown far beyond its roots in physical slot games, cabinets and table products to see Interactive become a vital part of its business, and its digital-first studio is an integral ingredient in that success. As iGaming grows, both in absolute terms and relative to land-based gaming, AGS’ digital-only studio setup has poised it for continued growth in profile and prominence.

Zoe Ebling, vice president of interactive, AGS

This month, as part of the iGaming Business x Women in Gaming Africa monthly column, we spotlight five remarkable Kenyan women whose work is redefining how the world sees Africa’s gaming landscape. From regulators to legal experts, communicators and platform leaders, their stories reflect a country that is not just growing, but leading.

The regulator’s perspective: Building trust through structure

For Esther Argwings, assistant director at Kenya’s Gaming, Betting Control and Licensing Board, her 26-year journey through the industry mirrors its evolution. Having risen from gaming inspector to senior leadership, she has seen Kenya’s gaming industry expand from local casinos to a dynamic, digitally enabled ecosystem.

“The industry has grown in numbers and in keeping up with international operations,” she explains. “With the new Gambling Control Act of 2025, there are new opportunities for operators and better instruments to regulate the sector effectively.”

Esther’s mission is deeply rooted in responsible gaming and education. “The public needs to be sensitised about the harms of gambling and the importance of responsible play,” she says. “We’re working to ensure players can access help when they need it, and to build a system that prioritises safety and compliance.”

Her message to the global gaming community is clear: Kenya is not a frontier, it’s a dynamic innovation hub shaped by its youth, technology and ambition.

The connector: Bridging local talent with global platforms

For Agatha Wanjugu, sales and account manager at QTech Games, Kenya’s potential lies in connection. “What drew me to [Kenya’s] gaming industry is how it blends technology, creativity and community,” she says. “It’s fast-paced, constantly evolving and every day brings something new.”

She believes Kenya’s biggest growth potential lies in creating platforms that connect global content with local players while showcasing African talent. “It’s not just about importing games,” she adds.

“It’s about building ecosystems that include esports, homegrown content and partnerships that celebrate African creativity.”

At QTech, her focus is on localisation and collaboration. “We work closely with partners to adapt offerings to African markets, from language to bonuses to player engagement. By amplifying local voices and ensuring responsible growth, we’re helping shape a sustainable gaming future.”

The platform visionary: Building African frameworks for global content

Zsuzsanna Zeibig, general manager at EGT Kenya, has spent two decades in gaming, working her way up from croupier to regional leader. Now based in Nairobi, she oversees both digital content distribution and land-based solutions across Africa, giving her a unique perspective on how technology and localisation are shaping the continent’s future.

“The regulation is being shaped to accommodate both industry players and local audiences,” she says.

“But one of the biggest challenges is that new markets often try to copy existing Western regulations. African countries should learn from one another instead, because each market has unique cultural, economic and political dynamics.”

For Zsuzsanna, growth in Kenya’s gaming industry lies in adapting technology to African realities while empowering local players and partners.

“Sports and crash games are leading now, but casino content is growing fast. The most exciting part is that we’re here at the beginning, helping shape how digital gaming evolves in Africa.”

The communicator: Giving Kenya’s industry its voice

Lola Okulo, co-founder of Tact Communications and former head of PR for BetPawa Africa, has spent nearly a decade shaping the narrative of gaming across the continent.

She didn’t plan to enter the industry, “it chose me,” she laughs, but she quickly became one of its strongest advocates. “This industry contributes so much to sports and ecommerce, but often struggles with reputation and misunderstanding,” she says. “Communications should sit at the heart of business strategy, guiding decisions and building trust.”

For Lola, Kenya’s success is inseparable from its technological edge. “We’re a mobile-first market with one of the most advanced fintech ecosystems in the world,” she explains. “Financial inclusion, mobile money and connectivity create an environment where gaming can thrive responsibly.”

Her goal is to see communications elevated across African operators. “When communications leads from the top, we prevent issues before they arise and tell our story with pride.”

The legal architect: Championing responsibility and AI integration

Rounding out the group is Aileen Yonah-Mima, general counsel for Carnaval Kenya Ltd, who has been instrumental in embedding responsible gaming into corporate DNA. “My passion comes from developing initiatives that promote responsible play and leading CSR projects that uplift communities,” she says.

Aileen’s legal work is shaping the next phase of Kenya’s gaming growth. “The biggest opportunity lies in integrating AI to balance profitability and responsibility,” she explains. “AI can help personalise player experiences while mitigating risk, ensuring both sustainable business and player welfare.”

Her perspective reflects a broader Kenyan truth: innovation and ethics can coexist. “We’re not just a market,” she insists. “We’re a Silicon Savannah, driven by creativity and technology. Success here comes from deep investment in local talent, not surface-level presence.”

Kenya’s women, Africa’s future

Together, these five women paint a portrait of Kenya’s gaming industry that is vibrant, ethical and forward-looking. They represent regulators setting standards, companies bridging continents and professionals advocating for transparency, collaboration and inclusion.

Their work is proof that Africa’s story is no longer one of potential, it’s one of progress.

As Kenya continues to innovate and the global spotlight grows brighter, the women leading this transformation remind us that gaming in Africa isn’t just about technology or profit. It’s about people. It’s about vision. And it’s about building an industry that future generations can be proud of.

About Women in Gaming Africa

Women in Gaming Africa (WiG Africa) is a non-profit community connecting, elevating and empowering women across the continent’s gaming industry.

Through events, mentorship and advocacy, WiG Africa champions representation, leadership and inclusion while fostering a stronger, more connected African gaming ecosystem. Learn more or get involved at www.womeningamingafrica.org.

Some have estimated the black market could account for up to 70% of the total betting sector in Brazil but, speaking to iGB in a recent interview, Flood believes it is closer to 15%.

While many operators and other industry stakeholders highlight illegal operators as their main concern, Flood and Superbet maintain that their strong start in the market is their main area of focus.

“I don’t wake up every day thinking about the illegal market,” Flood tells iGB. “The competitive intensity would be what wakes me up every day, or what I think about when I wake up.

“I think there’s a lot of data out there that suggests that it’s quite meaningful in terms of total size. I think there’s ways that that gets big and scary when people use deposit volume to size that market.

“In actual terms of maybe revenue capture, which is a better marker of what players are spending, I think it’s a good bit lower than most people’s estimates.”

However, Flood does say he is concerned about the threat the black market poses for players in terms of player protection standards.

Superbet looking to maintain podium position

Superbet has enjoyed an impressive start to the regulated market in Brazil, ranking among the top three licensed operators for market share, according to H2 Gambling Capital’s data.

Flood has a “high degree of confidence” that Superbet is currently in a firm podium position. He also believes the company is closing in on second place.

Like many, Flood expects consolidation in Brazil as the market matures. Three top brands are expected to dominate the market as smaller operators fall away due to high costs and lack of competitive edge against Superbet, Betano and Bet365.

“What we see is there’s going to be a wave of consolidation at some point in the market as the unit economics of competing get a bit harsher,” Flood continues. “High tax burdens, the cost of advertising, you see some sponsorship prices going through the roof.

“It’s incredibly expensive to raise awareness in Brazil about a brand and to build trust. We see that probably some of those smaller brands may fall away at some point in time and the market will probably be dominated by three big players, that would be our estimate. We would hope, and are quite confident, that we will be one of the three.”

Localisation key to Superbet’s success

Prior to 1 January, there was some speculation that international brands may struggle to get a foothold in Brazil, with local operators winning out due to localisation and an enhanced knowledge of their home country’s diverse culture.

But Superbet has invested heavily in local talent, deepening its connection with Brazilian bettors.

“If you were to ask why we’ve been successful, I would say it’s because we’ve invested in finding local people to really help us connect with the Brazilian audience, the Brazilian fan base,” Flood explains.

“That goes deep into how we communicate with customers, even the brand tone, these types of things.

“You cannot take a European proposition and just stick Brazilian flags or change it into Portuguese and put it out there to customers. You really have to find ways to connect.”

Superbet’s investment has extended to sponsoring the 2025 Rio de Janeiro Carnival and Série B, the second-highest football league in Brazil. Additionally, the club is also the front-of-shirt sponsor of top-flight clubs Fluminense and São Paulo.

“The Brazilian fan base is so passionate about sports and so emotionally involved in it, that there’s just different ways to connect,” Flood says. “And we’ve brought that to life.

“But it’s not just putting a badge on that shirt. It’s how we’ve brought that to life in terms of the activations. They are ways for us to connect with those local customers and local audience in a much, much deeper way.”

Superbet Brazil marketing investment to continue

Flood says Superbet has “definitely” achieved what it sought from its initial marketing investment in Brazil.

“When you look at the brand we’ve built in such a short time in Brazil, it’s probably one of the things I’m most proud of,” Flood continues. “That’s testament to the local marketing team that we’ve built out, who make all these decisions day to day.

“When you look at our brand awareness, it’s gone incredibly well. We think that’s what’s translated into what we [believe] is a clear number three in the market at this point.”

This investment in marketing will continue, according to Flood.

“We’ll definitely keep a portion of our investment efforts in this space, because of how effective we’ve found it to be,” Flood concludes.

“We do think it’s part of our superpower of connecting with the local customers and how well we’ve executed in those spaces. For the foreseeable future, we’ll continue to pursue that.”

This year Reed joins the MIW campaign as a judge and is campaigning for more recognition for the less visible women influencing the sector. “The most deserving winners for this type of award are those who are helping to inspire confidence in other women,” she tells iGB managing editor EMEA, Nicole Macedo.

“That’s a super power that women have, that collaboration and I want to see everyone around them do well.

“I think it’s important to show love for women who are doing that at every stage of their career,” Reed adds.

Looking back on her experience in being part of the campaign in 2023, Reed says the win inspired her to join the Global Gaming Women group and put herself forward as a mentor to younger members.

“It’s been incredible to not think that I could do anything at all, to now have the confidence in myself to mentor somebody. To help see the next generation being developed, and hopefully giving them many more inspiring women they can look up to,” Reed says.

Look out for additional interviews throughout the Most Influential Women campaign, to support the call for submissions.

Nominations are now open and can be made here. The survey will close on 31 October, and winners will be announced in late November. Previous judges’ and winners’ invterviews can be viewed here.

Recent research published by the Gambling Commission has sparked a critical discussion around two pressing questions: Who is truly at risk of migrating to the black market? And what should be done about it?

The answers are both complex and troubling.

A key finding in the Gambling Commission’s report on illegal gambling challenges the narrative that only self-excluded individuals and underage users are susceptible to black market activity.

Research reveals that the demographic profiles of legal and illegal gambling consumers are nearly identical – primarily men, younger individuals aged 18–24, frequent gamblers and those scoring 8+ on the Problem Gambling Severity Index (PGSI).

A recurring theme in the Gambling Commission’s research is the lack of public understanding around regulation. Elizabeth Dunn, partner at legal firm Bird & Bird, says this is a core concern.

“One thing that stands out is the commission’s acknowledgement of the disconnect between consumers recognising the importance of licensed operators and their actual understanding of how to verify licensing status,” Dunn tells iGB. “This may be partly due to lack of consumer awareness, but also an indicator of the increase in sophistication of the black market in recent years.”

Alasdair Lamb, senior associate at legal firm CMS, highlights a standout finding in the report: “That engagement with illegal sites is usually supplementary rather than exclusive, with most respondents reporting that they prefer spending time and money on legal websites.”

An opportunity and a responsibility

Elizabeth Dunn adds that this presents both an opportunity and a responsibility for regulators and operators to engage in more consumer-facing education campaigns to close the gap – an observation which is in line with the Gambling Commission’s recommendations.

This point is echoed by the Betting and Gaming Council (BGC), which cites a recent Frontier Economics study estimating that 1.5 million Brits are now gambling with illegal sites – reportedly spending up to £4.3 billion annually.

“Illegal gambling websites appeal to a worrying range of customers,” a BGC spokesperson said. “More than one in five 18–24-year-olds who bet already use unsafe, unregulated sites. Many black market sites specifically target the most vulnerable, including those who have self-excluded from regulated betting firms.”

The BGC warns that without balanced regulation and stable taxation, more consumers – including mainstream ones – may be pushed into riskier territory, undermining public safety while siphoning money away from licensed operators and, ultimately, the Exchequer.

Challenges to the commission’s report

The results in the Gambling Commission’s report clash with interpretations presented at recent events, such as the Peers for Gambling Reform forum, where it was suggested that only self-excluded players and children were at risk of migrating to the black market.

According to Ismail Vali, CEO of Yield Sec, it is a case of misinterpretation on the Gambling Commission’s behalf – partly, he explained, because the commission’s survey does not include minors in its data.

His company uses military-grade data surveillance to track online black market behaviour in the UK. It has also produced a report on the subject, which was released in early September.

“It clearly shows that the people who are engaging with illegal gambling are people who have no other option. Of all the illegal gambling promotion in the UK, 84% of it is ‘not on GamStop’ search-driven. Yes, there is some mainstream marketplace movement towards illegal gambling in the UK, but generally, where the money is coming from is from children and self-excludes.”

He stresses that data brokers, social media algorithms and SEO manipulation are being used to directly target those who have self-excluded or shown signs of addiction.

Yield Sec’s findings claim that the black market in the UK has exploded – from 0.43% of the market in 2020 to nearly 9% in 2025 – driven by both targeted marketing tactics and regulatory pressure on legal gambling operators.

In its own report, Yield Sec finds that there are currently more than 500 illegal sports betting and casino operators actively targeting the UK, and more than 1,100 affiliates promoting illegal operators.

Exploitation of vulnerability

At the centre of the black market debate is GamStop, the UK’s national self-exclusion scheme.

GamStop – which since 2018 has had more than 600,000 users registered for self-exclusion from all UK-licensed sites – acknowledges that stopping illegal enterprise is a major challenge but maintains it is taking steps:

“We recognise that there is more work to do to remove all advertising of casinos bypassing GamStop and to prevent the advertising in the first place. We are in regular contact with the Gambling Commission’s intelligence and enforcement team, we welcome the Crime and Policing Bill, which will give the Gambling Commission greater powers to act swiftly to take down IP addresses and domain names associated with illegal websites.”

GamStop also points to an Ipsos evaluation of users of unlicensed operators:

“Just 8% of more than 4,600 users said they were using unlicensed or illegal gambling operators. While the activities of black-market operators are a concern, it is important we keep the issue in perspective,” said the spokesperson.

This response from GamStop does not sit well with the Yield Sec CEO, who sees it as a downplaying of a pressing issue.

“If you look at the trajectory in Great Britain, it’s frightening. Since we first talked about this in 2020, it has doubled every year. And now we’re at this horrible height,” said Vali.

He warns that the number of users on illegal platforms will likely continue to grow unless the problem is properly managed – especially in a time when illegal TV and film streaming sites (where illegal gambling sites tend to advertise) are becoming more popular. This is another factor expected to impact the mainstream marketplace.

Where does the responsibility lie?

Overall, said Vali, the responsibility for a safer online gaming environment in the UK lies with the Gambling Commission and GamStop.

“If you set up a scheme like GamStop and you tell vulnerable customers they are safe, surely you should make them safe,” he adds. “And they are not safe in Great Britain right now.

“Go after the supply chain, go after the advertising, go after the social media content. That’s what you can change right here, right now, today.”

Elizabeth Dunn from legal firm Bird & Bird emphasises the regulatory challenge for the industry.

“The primary challenge remains the commission’s limited ability to take effective action against offshore unlicensed operators,” she suggests. “The regulator has increasingly focused on the regulated B2B market to prevent game supply to unlicensed operators and I expect this approach to continue.”

Last Tuesday, Yolo announced plans to incorporate its Sportsbet and Bitcasino brands into the single Yolo.com brand, with the aim of bringing Yolo.com to Tier-1 regulated markets.

This followed a three-year process of research and preparations for the shift. With Yolo at a “crossroads”, as the company described it, founder Tim Heath and co have opted to leave grey markets behind.

However, having thrived as an unregulated crypto casino operator, the move does raise questions over the challenges and potential rewards of transitioning to regulated markets.

Entering regulated markets isn’t just a case of paying a licence fee, explains Juan Ignacio Ibañez, general secretary of the MiCA Crypto Alliance, an initiative aimed at simplifying regulatory compliance across the crypto industry.

“You might think getting a licence is just a fact of spending an amount of money on the law firm and telling them to go get it,” Ibañez tells iGB. “But it turns out that you need to actually adapt your processes a lot, right?

“In order to be able to report a lot of the items that you need to report in the process of getting a licence, you need to change your own internal processes, or set up processes that you didn’t have before. So organisationally, it is quite transformative to get ready to operate in a regulated market. It really changes how you function and your team.”

Why has Yolo made this move into regulated markets?

Yolo in part attributed its decision to pivot to regulated markets to the belief that crypto is becoming “mainstream”.

“It’s therefore our responsibility to bring the crypto casino experience to regulated domestic markets, working within sensible frameworks and combining speed and freedom with safety and oversight,” the company said.

Its previous strategy of operating in unregulated markets proved to be hugely successful, bringing cryptocurrency to the masses.

So why has Yolo made this transition?

Kovach agrees with Yolo’s claim that crypto has gone mainstream, saying the crypto gaming world is at a “pivotal point”.

“The genie is kind of out of the bottle,” Kovach explains. “Having been in the space for seven, eight years, it’s definitely moved beyond a very core niche into something much, much bigger.

“Obviously regulation in the US seems to be moving at a record pace at the moment under [Donald] Trump, but even under Europe with MiCA et cetera, it’s being accepted. Whether we agree with all of the regulations or not, it needs to be regulated. It is being regulated.

“But I think it’s more than that, and they [Yolo] see the opportunity now being within regulated markets. I think it’s going to be fascinating to watch how they go about that.”

Finland, Sweden and Canada seen as opportunities alongside the UAE

In its announcement, Yolo identified Canada, Sweden and Finland as three markets it plans to expand into.

The company also announced it is closing in on securing two B2B vendor licences for the soon-to-be regulated market in the UAE.

iGaming and sports consultant Stefan Kovach believes building credibility compliance in smaller markets before advancing into bigger markets could prove a successful strategy. This belief is based on his previous experiences with Poker Stars and Party Gaming.

“I think even if you’re a big and experienced operator like Yolo, you want to be taking baby steps initially,” Kovach says. “There’s definitely an advantage of getting in early, but there’s also an advantage of being a fast follower and not biting off more than you can chew.

“I don’t know what their exact plans are, but I would imagine the prize is in the bigger markets. And I would also imagine they’re pretty bullish on being able to innovate and disrupt even in markets in which most people are like, ‘you don’t want to enter because it’s done’.”

A double-edged sword

Ibañez agrees starting in smaller regulated jurisdictions could make sense, particularly if these regulators are more readily available to communicate over contentious regulatory issues.

“In smaller jurisdictions, you may have the opportunity to pick up the phone and ring the supervisor and use that relationship to go over any misunderstandings and so on,” Ibañez says. “There’s lots of paperwork, lots of formal errors and things that can go wrong procedurally.”

However, he also feels this could be a negative, adding: “At the same time, a smaller jurisdiction can be a more under-resourced jurisdiction, especially if they are late to the technology.

“So a single team supervising this within the supervisory authority needs to deal with various market niches, which means they will lack expertise here and there. So that can backfire.

“It can be that they’re a bit overworked, they don’t know the technology or the business model that they’re dealing with, and they don’t see this every day. That can also slow down authorisations and so on. It can go both ways.”

This could be a costly endeavour for Yolo too, especially with its plans to operate in a number of regulated markets.

“It’s not just cookie cutter, we do one regulated market and then we just take that and we replicate it in another,” Kovach continues. “There are different financial obligations.

“There’s different, albeit I think, increasingly similar, player responsibility, safety, KYC et cetera requirements. So yeah, there definitely are higher costs.

“I’m sure Tim and the Yolo group, they’ve been looking at this for three years, they will have done their homework and they’re a premium operation. Their customer service, their security checks et cetera are pretty close to being what Tier 1 requires anyway, I would imagine.”

Will regulators welcome Yolo with open arms?

Yolo itself acknowledged in its announcement that domestic regulators offering licences “are not keen” on continued operations in other pre-regulated markets.

Even its status as a crypto operator could cause concern among Tier-1 regulators, says Elizabeth Dunn, partner at UK law firm Bird & Bird.

Dunn notes the UK Gambling Commission has previously refused licences to companies due to not feeling comfortable with those business’ crypto-funded origins.

“Regulators in most Tier-1 markets continue to struggle with the idea of operators directly accepting cryptocurrencies and/or being funded through cryptocurrencies,” Dunn says.

“Yolo’s history as a crypto-first operator is, therefore, likely to come under scrutiny when regulators are assessing its suitability to hold a licence.”

However, Dunn also believes some regulators may view the licensed entry of a gambling giant such as Yolo in a positive light.

“Some regulators may see an operator like Yolo seeking a licence as an opportunity to bring previously unregulated activity within the scope of its regulatory powers and tax regime, therefore ensuring its residents are able to access Yolo’s services on a regulated, tax-paying basis,” Dunn explains.

A forward-looking investment for Yolo

In Ibañez’s view, this is very much a move with the future in mind for Yolo.

This is especially true for whether Yolo seeks additional outside investment.

“It’s a forward-looking move, is something I would speculate,” Ibañez says. “It really depends on the circumstances of what Yolo is looking for, right?

“If you are trying to get, for instance, some more enterprise customers or partners, some of these partners, they just might not want to work with unregulated partners or providers. So, it opens a different kind of game.

“And I guess it sort of makes sense. You start, you prove your business case in the unregulated market, you build sufficient capital, you build sufficient strength and brand recognition and then you’re ready to make the next step, which is sort of difficult to do the other way around.”

Significant impact expected on Yolo’s margins

In terms of margins, Kovach suggests this move could affect Yolo “quite significantly”, although, like Ibañez, he views this as a long-term play.

“You’re subject to the tax regime of that licence, so it will without question on any of the Tier-1 licences be significantly higher than if you’re operating on a Tier-2 or Tier-3 licence,” Kovach explains. “That’s an inevitability.

“But I also think as the world becomes more and more regulated, as the world adopts cryptocurrency and more than that the kind of culture that has permeated around crypto casinos, that is increasingly engaging. There’s just a massive opportunity there.

“The biggest opportunity actually is a generation that gambling companies are failing to engage with who do use crypto, who do expect a different experience and are increasingly in regulated markets. So you might well take a smaller margin, but actually, you have a bigger audience there and a more sustainable path to growth and value creation, if ultimately you want to spin this up on the stock market or sell the business.”

Where could Yolo excel?

Yolo prides itself on innovation and its role as a true pioneer in the crypto gambling sector.

The company says its next chapter will connect “land-based excellence with digital innovation”, with the hopes of providing seamless wallet experiences for players across physical and online betting.

It is that mindset that Kovach believes will stand Yolo in good stead as it transitions into this new era.

“I do think it’s a culture,” Kovach declares. “I do think it’s about understanding the audience and understanding that this crypto audience, which is becoming mass market, particularly among the younger generation, is demanding more.

“It’s demanding more from a user-experience point of view. It’s demanding more from transparency point of view, ease of payment point of view, community, game evolution, et cetera. I think it will be a big advantage for them.”

As crypto continues to evolve from niche to mainstream, Ibañez expects Yolo to be at the forefront of the movement due to its “native” origins to the sector.

“What we are seeing is that the way in which these more traditional Web2 companies are adopting this technology is a bit arm’s length,” Ibañez says. “If you’re native with a technology, you are using it to its fullest extent, right?

“And you are really just adopting partially something that is unfamiliar to you, because you want to ride a trend.

“Native acquaintance with the technology, and just the ability to operate with the technology at all levels of an organisation, allows you to use the full potential. That’s probably a competitive advantage.”

Could regulation harm innovation?

Dunn suggests the company’s entrance into regulated markets can be conducted in two ways.

“There are two options for Yolo here – enter markets organically or seek to acquire already licensed entities, which it may then rebrand with the Yolo offering,” Dunn says.

“We have seen at least one other crypto-first operator enter a regulated market through acquisition, and this can (rightly or wrongly) be seen as an ‘easier’ way of obtaining a licence.”

Kovach describes Yolo’s operation as “very shrewd and very sound”, although he also suggests the company’s move into regulated markets could steer it away from what has made it such a success.

“I think they will be able to deliver against what’s required,” Kovach adds. “But I guess the risk is it takes up more resource and more effort than they’ve certainly been used to. Does that then quash their ability to be as consumer-centric and innovative as they have been?”

Although he acknowledges the risks, Kovach believes Yolo is all-in on the move, in line with the company’s, and especially Tim Heath’s, core principles.

“What they’re doing, he’s not paying lip service to this,” Kovach concludes. “They’re obviously going for it.

“I know Tim, he’s a gambler. He likes to place big bets and I think he’s placing a big bet on it becoming more and more mainstream.”

It has been an intriguing period for the LatAm gambling sector. Brazil captured most of the headlines with its regulated online market launch this year, following on from that of Peru 12 months ago.

But despite the nascent regulations in those countries, already the regulated sector is facing increased pressure from new measures, with a new consumption tax in Peru. Meanwhile Brazil has also provisionally increased its tax rate, with additional ad restrictions also seemingly on the way.

While Gomez understands new regulations aren’t perfect and need to adapt, she also hopes for more time to be given by regulators to observe how the market plays out before making drastic alterations.

“What we as a company, and I think most companies, want to see is stability,” Gomez tells iGB. “I think that’s very important from a government to be able to provide that kind of stability to companies.

“Obviously, every new regulation is not perfect. Every new regulation will need some amendments. That will happen, that’s normal. But they should wait to see how the market is working, and then give some time to talk with operators.

“I think that as a new market, yes, they should let the market establish first before starting with all the changes.”

The risk of overregulation

For Gomez, regulators need to converse with operators to listen to their concerns of overregulation. Her fear is that this overregulation could have the potential consequences of increased black market activity.

This has been a particular fear in Brazil, where the government has issued a provisional measure to increase the tax rate from 12% to 18%. Alongside the approval of a bill to introduce new ad restrictions such as watersheds, this has led to major trade bodies sharing concerns over players and operators being driven into the black market.

“I do think that there is a risk of overregulating and I really hope that doesn’t happen, because sometimes you want to cover multiple topics, but you first need to understand the operation,” Gomez continues.

“You need to let the market grow. You need to talk to the companies and understand how the operation is working.”

Gomez says the regulator in Peru, Mincetur, has been successful in discussing regulation with operators, particularly the introduction of a 1% consumption tax on bets this year.

This discourse is something she hopes to also see with the Secretariat of Prizes and Bets in Brazil.

Gomez adds: “We really look forward to having meetings with the regulators to show them our best practice in other countries, but also to ask them, ‘So, how can we comply with this? We have this situation we don’t see is in the law, can we handle it this way?’

“And that’s the way that we want to move forward, because then you understand if the regulator sees this, then this is how we’re going to comply.”

‘Business as usual’ in Brazil for KYC after tough start

During the first three months following the launch of Brazil’s regulated online market on 1 January, many operators voiced their difficulties in transitioning players to licensed platforms.

This was largely down to players not understanding the importance of KYC processes such as facial recognition technology, which have been mandated by regulation.

While Gomez says that it is largely “business as usual” now in Brazil in terms of KYC, Stake also experienced troubles with KYC in the early stages of the year.

Education has been crucial in that respect, with Stake seeking to help players understand that KYC is for their protection.

“At the beginning, customers were very worried about data protection, or ‘What are you going to do with my documents? Or what are you going to do with my data’? But we explained to them, ‘This is for the protection of your account or the information that you’re providing to us, and also for us to verify your identity’,” Gomez says.

“Being an online gambling [operator], this is one of the highest priorities. You need to be able to verify the identity of the customers playing on your platform.”

That education extends to within Stake’s internal teams, with Gomez’s responsibilities including the creation of guidelines for other departments to educate customers on certain KYC situations.

Stake optimistic in LatAm

Gomez is keen to emphasise that, despite regulatory instability in LatAm, there is still an exciting future in store.

“I think the LatAm market obviously has a lot ahead and it’s obviously the place to be right now, 100%, in comparison to other markets,” Gomez concludes. “These are new regulated markets.

“So it’s a very good market and, being newly regulated, it’s very nice to be able to start fresh operations, and establishing those relationships with the regulators and basically build a reputation in LatAm.”

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.”

Akpabio bemoaned the absence of regulatory action against bad actors that are collaborating with fintech companies to bypass regulations in the country and deliver uncensored betting ads.

As in many emerging markets, gambling addiction rates are growing in the West African market and this advertising loophole is having an impact.

“Fintechs have turned into extensions of gambling operators and no one is saying a word,” Akpabio tells iGB.

“You can now place a bet from your Opay app as it takes you to a gambling site through the app. Opay is not licensed by regulatory authorities to do so. They are bombarding some underage people with over 15 messages to gamble per minute.”

Opay Digital Services Limited is a very popular personal finance app in Nigeria, currently serving several millions of users, due to its lightning-fast mobile payment ability. Many online operators are adopting it as a payment solution, alongside Palmpay, another mainstream choice.

Currently, these fintech brands have over 30 iGaming companies each as their client providers. However, while they are licensed and regulated by the Central Bank of Nigeria and insured by the Nigeria Deposit Insurance Corporation, they are not approved to provide or advertise betting in any way to their users.

Nigerian operators falling foul of responsible gambling?

“Last week, a bettor sent us a screenshot of over 11 messages received in just a minute, asking him to fund his betting account, prompting him to click on an ad to get a free bet,” says Akpabio.

“Another ad read, ‘If you deposit in your betting account daily, you stand a chance to win an iPhone.’ Stuff like that is horrible.

“In what country is that permissible? For something that could get extremely addictive, no one should be prompted to bet [through these instant payment apps],” he added.

“Bettors should gamble for entertainment, and with monies they can afford to lose. Not every day would a bettor want to lose money, but now the operators are pushing them into doing this as often as they can.”

Gabriel suggested that regulatory bodies could have directly or indirectly contributed to the problem as they have refused to respond to letters and calls to action from Gamble Aware.

“I have reached out to the LSLGA, the biggest regulator in Nigeria at least 22 times this year, sent them at least four letters in hard copy as well,” Akpabio says.

Gambling addiction threat in Nigeria

Last month, Nigerian state regulator LSLGA launched SafePlay, a national self-exclusion portal for problem gamblers, but Akpabio insists problem gambling rates are still on the rise, including among minors who are being targeted by these fintech apps.

“Over 60 million Nigerians are gamblers and more than 14% of that number are actually struggling with the addiction that comes with it,” he adds.  

“Today, there are a lot of minors being exposed to betting through these fintech apps. We handle cases of underage gamblers a lot, and when you try to ascertain how they got introduced to this the answer is always the same – through these apps.”

Lagos State Lottery laws for operators require gambling ads to be “ethical”, Akpabio explains, with 15%-20% of the ad’s running time to be used to raise awareness of gambling addiction.

He says the charity is not anti-gambling but is calling for better protections for players.

“Awareness about the harmful effects of gambling needs to be created. It shouldn’t be just us, or Gamble Alert [doing that work]. It really should be championed by the regulators and these operators. If not, the worst could happen.”

Edward Chandler: LatAm is no longer a frontier. It’s the proving ground for the next era of payments. In iGaming especially, operators face the toughest conditions anywhere: fragmented regulations, diverse payment preferences and players who demand speed, trust and transparency.

The winners over the next five years will be those who can scale with precision delivering localised methods, frictionless onboarding and instant payouts while staying ahead of regulatory shifts.

At OKTO, our vision is to be the most trusted payment partner for these operators. That means building differently: AI-native at every layer, precision-engineered infrastructure that turns complexity into competitive advantage and an obsession with merchant outcomes.

When we do the structural, unglamorous work others ignore from reconciliation to liquidity orchestration we give merchants the freedom to grow faster, safer and smarter.

The LatAm market is crowded, especially so for payment players. Tell me about OKTO’s ‘Precision Mode’ and how it gives you an advantage that sets OKTO apart in LatAm?

Chandler: Precision Mode is about excelling at the details most players in this industry overlook. We build for the toughest environments, where uptime, compliance and settlement speed are not nice-to-haves, they’re the difference between winning and losing.

In LatAm iGaming, that translates into real-time settlement, AI-driven risk and reconciliation and infrastructure optimised for both high volumes and regulatory scrutiny.

We deliberately don’t offer every possible method and we don’t try to be everything to everyone; instead, we obsess over the ones that deliver the highest conversion and performance in each market for our merchants.

That’s why our strength comes from being best at the essentials, with pay-ins and payouts that are instant, seamless and compliant; banking and treasury tools that simplify liquidity, FX and reconciliation for even the most complex operators; and settlement that’s real-time and reliable, whether domestic or cross-border.

These are the foundations of Precision Mode and they’re what give our partners the edge to scale faster, safer and smarter across the region.

OKTO describes itself as an AI-native company in payments. How does this translate into practical advantages for merchants in a high-complexity, high-risk vertical like iGaming?

Chandler: Being AI-native isn’t a marketing slogan but our operating model. Over the past months, we’ve been embedding AI into every layer of our platform, and today our teams in every corner of the world are increasingly AI-augmented by default, not exception.

For iGaming in LatAm, this shift will create tangible benefits: predictive fraud detection that stops issues before they reach players, automated merchant onboarding that cuts timelines from weeks to days and real-time parsing of regulatory updates so operators can adapt instantly. In fact, we’ve seen onboarding times shrink by up to 60% and go-to-market speed increase by nearly half compared to traditional processes.

Beyond that, AI is driving smarter transaction routing, more efficient treasury management and even merchant support that anticipates needs rather than reacts to them. This isn’t about adding shiny features. It’s about building resilience into the core of the system. AI is making us faster, smarter and relentlessly merchant-focused, so our partners can compete with confidence in the most demanding markets.

In LatAm, onboarding delays and inefficiencies can cost merchants millions. How does OKTO deliver faster onboarding, smarter operations and resilient performance?

Chandler: We’ve built onboarding to be compliance-ready from day one: fully automated KYC/KYB, local regulatory checks and seamless integration with merchant systems. This means faster go-live without ever compromising trust.

Operationally, we apply the same precision: 24/7 monitoring, intelligent failover systems and infrastructure designed for high-volume, low-latency performance. When the biggest sporting events hit, our merchants know payments won’t fail. Because in iGaming, a delay isn’t just a glitch – it’s a lost player.

“Building differently means we don’t just remove friction; we prevent it before it happens”

Regulatory volatility in LatAm can make scaling a nightmare. How does OKTO’s design approach help merchants expand across borders?

Chandler: Scaling in LatAm is like playing regulatory chess on multiple boards at once. Where most PSPs see volatility as a burden, we see it as a core competency and one of our biggest competitive advantages. Rather than chasing after new rules, we build compliance into the architecture from day one.

Our compliance-by-design philosophy ensures every transaction, payout and reporting process meets and often exceeds local standards. So, when a market like Brazil shifts its payment framework, our merchants can pivot in hours, not months.

That agility isn’t accidental but structural. By embracing regulatory change instead of resisting it, we turn complexity into confidence, giving our partners more time to focus on growth and less time fighting red tape.

What do you do to ensure that the merchant voice drives your product roadmap and your innovation agenda?

Chandler: At OKTO, innovation starts not only with listening but listening with intent. Every merchant-facing team captures operator feedback, which is then funnelled into our Merchant Excellence Pods. These pods bring together engineers, product managers, compliance specialists and merchant leads to turn insights into solutions.

This isn’t a roadmap built in isolation; it’s merchant KPIs translated into engineering priorities. It ensures every feature and every process delivers measurable merchant outcomes.

What impact have OKTO’s solutions had for operators in LatAm so far?

Chandler: The first half of the year wasn’t just about innovation, it was about empowering our merchant partners with solutions that move faster, smarter and further than ever before. In H1 alone, the OKTO platform processed over €6 billion (£5.2 billion) across LatAm, setting new benchmarks for speed, reliability and performance.

Our smart routing engine now allows merchants to optimise by country, bank, method, or even percentage, balancing cost efficiency with conversion. Across Mexico, Brazil, Peru, Argentina and Chile, we launched 10 key local payment methods, supported by real-time global monitoring to ensure uninterrupted operations.

Beyond payments, we expanded into funds and treasury management, domestic and cross-border settlement and FX conversion. All designed to give merchants precision control and compliance at scale.

And the impact is clear: in a business where every basis point of improvement in acceptance rates can translate into millions in additional revenue, our ability to optimise performance isn’t a marginal gain but a competitive breakthrough.

For example, working closely with one of our iGaming partners in Brazil in this direction, fully focused in improving acceptance rates, we achieved by nearly three percentage points within the first two quarters of migrating to OKTO, a shift that directly translated into millions in incremental deposits and higher player retention.

“We achieved by nearly three percentage points, within the first two quarters of migrating to OKTO, a shift that directly translated into millions in incremental deposits and higher player retention for one of our iGaming partners.”

These aren’t isolated wins. They’re proof that our merchant-obsessed engineering and precision execution consistently deliver outcomes that move the needle: higher conversion, resilient uptime and lower costs.

If you had to predict one big disruption in LatAm ecommerce over the next three years, what would it be – and how is OKTO preparing for it?

Chandler: The next disruption will be the convergence of instant payments, embedded financial services and AI-driven personalisation. Players will expect payments to be instant, context-aware and frictionless.

We’ve already seen this transformation in Brazil, where PIX has redefined the market almost overnight, setting new standards for speed and trust while reducing reliance on cards. And the pattern is repeating across the whole of LatAm and beyond. In Mexico, SPEI is rapidly becoming the preferred rail for real-time payments. In Argentina, CVU has unlocked frictionless instant deposits and withdrawals for millions of players. Chile and Peru are following a similar path with their own local real-time schemes. The direction is clear: across LatAm, card acceptance will steadily fall and local payment methods will become the backbone of digital commerce.

This is exactly why OKTO is building differently. Our infrastructure is instant-ready, API-first and adaptable to new local rails but, more importantly, we’re doubling down on what truly drives conversion in this region: local payment methods that deliver speed, trust and compliance at scale.

The operators who embrace this shift away from legacy card rails and toward the real-time, LPM-driven future will own the next era of player loyalty in LatAm. And our job is to make sure they have the tools, resilience and speed to get there first.

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.”

In late August, the SPA released extensive data which revealed the licensed betting market’s GGR reached BRL17.4 billion ($3.2 billion) during H1 2025.  

The data also reported 17.7 million Brazilians wagered with licensed operators during the period, equating to around 8.3% of the total population and, crucially, 10.6% of adults in Brazil. 

This figure has cast doubt on the argument being championed by some politicians that regulation, despite its nascent status, is driving high levels of gambling addiction in Brazil. 

Ed Birkin, managing director of H2 Gambling Capital, believes the data shows player activity is in line with what you’d expect from a regulated online market.  

Birkin says the data “opposes the rhetoric of mass gambling addiction” in Brazil. 

“In the Netherlands, we estimate that ~5.4% of the adult population have accounts with legal operators,” Birkin tells iGB. “By contrast, in the UK ~20% of the adult population has an online betting or gaming account.  

“So really, this puts Brazil around the level that you’d expect for a ’normal’ amount of online gambling. How much of that is problem gambling is a different question, but it certainly flies against the view of a pandemic of gambling across the nation.” 

SPA pushing for data-based regulation 

The narrative that regulated online gambling is causing an addiction pandemic in Brazil has led to a number of movements and Senate bills seeking to restrict the licensed sector. 

The industry is awaiting a vote on whether the government will make a gambling tax rise permanent. Meanwhile, additional ad restrictions are also under discussion.  

The sector has urged politicians to take a data-based approach to regulation and, in the SPA’s H1 data release, its chief, Regis Dudena, echoed those thoughts. 

“From here on the debate on the fixed-odds betting market in Brazil can be conducted with even more solid elements, enabling us to advance evidence-based regulation,” Dudena said. 

Udo Seckelmann, head of gambling & crypto at Bichara e Motta Advogados, describes this as a “positive development” for the sector. 

“For any regulated industry policymaking should be based on evidence and not solely on perception,” says Seckelmann.  

“By making market data publicly available and emphasising its use to support regulatory evolution, the SPA signals it is willing to pursue a more technical and transparent dialogue with stakeholders.  

“This strengthens regulatory credibility and reduces the risk of measures that could unintentionally harm the sector’s competitiveness.” 

The illegal market 

Birkin largely agrees with Seckelmann, noting many lawmakers set regulations based on “idealistic views or prejudices” rather than data-led analysis. 

However, he warns it’s also important to ascertain just how big the illegal market is. 

Estimates on the size of Brazil’s black market vary. H2 Gambling Capital believes it makes up around 30% of the total betting sector, while the Brazilian Institute of Responsible Gaming estimates it is between 40% and 60%. 

“For me, having a base line of a generally accepted illegal market size is key,” Birkin continues. “The number one aim of regulation should be to bring as many players onshore to gamble in a protected and regulated environment.  

“To measure the effectiveness of this, and the impact of existing and proposed regulatory change, you need to be measuring the size of the illegal market and how that’s growing or declining. So releasing legal market data is only part of the job.” 

Data release encouraging for Brazil’s nascent sector 

While some raised questions over why it took the SPA nearly eight months of regulation to release initial market data, both Seckelmann and Birkin believe this is natural and the data shows Brazil is growing as forecasted.  

“The H1 figures published by the SPA are encouraging, as they demonstrate that the regulated market is already consolidating in Brazil,” Seckelmann says.  

“The numbers broadly align with the sector’s expectations regarding both volume of bets and tax collection.  

“What is most important is that these figures confirm the relevance of the regulated market as a driver of economic activity, job creation and responsible entertainment.” 

This transparency, Seckelmann concludes, will strengthen bettors’ trust in the regulated market, perhaps diminishing the appeal of unlicensed offerings. 

“When bettors see that the regulated market is generating significant tax revenues, being closely monitored and contributing positively to society, they are more likely to choose legal platforms,” Seckelmann adds.  

“The publication of data reinforces the legitimacy of licensed operators, while simultaneously highlighting the risks of offshore platforms that operate outside of Brazilian law.  

“In this sense, the SPA’s initiative supports not only public confidence but also the long-term sustainability of the regulated market.” 

Accustomed to withstanding wild swings at the blackjack table, Bowyer opened Labor Day weekend by learning his fate inside a Southern California courtroom Friday. One of the nation’s largest bookmakers received a sentence of approximately one year in federal prison. Since then, Bowyer has endured a spectrum of emotions surrounding preparations to report to prison.

Bowyer is the bookmaker who accepted approximately $325 million in wagers from Ippei Mizuhara, the former interpreter for Shohei Ohtani who is serving his own prison sentence for embezzling from the baseball star.

Bowyer spoke to iGB on Labor Day in one of his first interviews following his sentencing. He gave the interview knowing he must report to federal prison by 10 October for pleading guilty last summer to three criminal charges, including transactional money laundering.

“It’s been absolute chaos for the last 48 hours,” Bowyer said from his villa in San Juan Capistrano. “But I also have this huge sense of relief knowing what the end is. Listen, let’s be real. I’m human, I have a heart and I have feelings.

“I’m really trying to pull it all together for my kids and for my wife. There’s moments when I’m crumbling inside, but I’m not going to show that emotion.”

Bowyer’s commitment to his family

A father of five, Bowyer is not your typical bookmaker. In a market dominated by surfer bros and middle-aged bachelors, Bowyer has been described by friends as a consummate family man. At last week’s hearing, Bowyer’s attorney, Diane Bass, depicted him as one of the most extraordinary clients she has ever represented.

While running a sophisticated multi-million-dollar gambling operation, Bowyer found the time to attend all of his children’s sports events, Bass stressed. Ahead of sentencing, the professional gambler spent about an hour last Thursday night consoling his tearful daughter, a memory Bowyer expects to take to his grave.

Bass petitioned the court to send him to FCI Lompoc, a Southern California facility located outside of Santa Barbara. Guest protocols at the facility limit Bowyer’s wife Nicole to only three in-person visits per month, he told iGB.

A self-professed sports junkie, Bowyer may be granted the option to buy a TV set in jail. But sports have taken a backseat for Bowyer for now. He didn’t learn of No 1 Texas’ loss to Ohio State in college football’s biggest game on Saturday until the following day. That lack of awareness would have been unfathomable when Bowyer ran his sportsbook.

While a US probation officer recommended Bowyer receive a sentence of 36 months, the government petitioned the court for an eight-level downward departure. US District Judge John W Holcomb sentenced him to 12 months and one day in prison.

In his sentencing decision, Holcomb weighed a bevy of mitigating factors including Bowyer’s assistance to the government, his status as a first-time offender and his outreach efforts on the perils of compulsive gambling.

“I always tell people if I didn’t have children and a wife, it would be a hundred times easier,” Bowyer told iGB.

“I’ve always been a person that tries to protect my family and bring all the discomfort to myself,” he said, adding that it “hit him hard” upon the realisation that he will go to prison.

Attempts by Bowyer to ‘recalibrate’

Prior to the hearing, Bowyer released “Recalibrate”, a detailed memoir that delves into his three-decade career as a bookmaker and whale bettor. This week, “Recalibrate” occupied the top spot in Amazon’s gambling addiction and recovery section.

Among the legion of Bowyer’s friends at his sentencing was Justin Paperny, co-founder of White Collar Advice, a firm that provides services to defendants with government investigations, sentencing and life after prison.

In a post on his firm’s website, Paperny holds a copy of the book as he poses for a picture with Bowyer on a golf course. Even if Bowyer had received a lengthy sentence, he has still made significant headway in his road to recovery, Paperny said in the post.

“Matt would still walk into prison with a published book in his name,” he wrote. “He would still have a social media presence, which he built from nothing. He would still have shown his daughters and young son that when life collapsed, their father chose to build.”

Over the last few months, Bowyer has gone on a media blitz conducting interviews with ESPN, Rolling Stone and VSiN, among others. Wife Nicole has also spoken with the media, granting a lengthy interview to Mark Laita of the podcast Soft White Underbelly. Addressing a 2023 FBI raid at the Bowyer mansion, Nicole told Laita that it was oddly a “blessing”, despite the trauma of the incident.

Nicole said she had become frustrated by her husband’s gambling habits in the final months before the raid. Over a 14-month period through October 2023, Bowyer gambled at Resorts World Las Vegas at least 80 times, a period when he lost about $6.6 million at the casino.

“When he was forced to not gamble anymore, it strengthened us,” his wife said on the podcast. “I’ve never met anyone in my life who can sell ice to an Eskimo. He has that and he can turn his talents into something amazing.”

Bowyer aims to eventually become a motivational speaker for athletes who are suffering from gambling addiction.

“I have anxiety about going to prison, I have anxiety about the next year of my life,” he explained. “But at the same time, at least when I wake up, I look in the mirror and I feel really good about what I see.”

Earlier this month, Flamengo, widely recognised as the biggest football team in Brazil, announced it was terminating its master sponsorship from Pixbet, amid rumours of late payments.

The alleged circumstances around the termination of the sponsorship, which had been touted as the largest in Brazilian football history at around BRL470 million ($87.1 million) over four years, fuelled rumours of financial uncertainty at Pixbet.

It also marked the continuation of a somewhat tumultuous 2025 for Pixbet. The company saw its licence to operate in the newly regulated online Brazilian market suspended and reinstated on multiple occasions because of technical failures.

Has Pixbet overextended?

Market leader Betano has since taken over as Flamengo’s main sponsor in a deal superseding that of Pixbet. Reports suggest the new agreement is worth BRL250 million a year.

According to H2 Gambling Capital Managing Director Ed Birkin, Pixbet holds a market share of 2% in Brazil with NGR of BRL316 million for the six months to 30 June 2025.

With Pixbet’s Flamengo sponsorship working out at BRL62.5 million over six months, Birkin estimates 20% of the company’s NGR was being spent on the Flamengo deal alone.

In comparison, Betano, the “clear market leader” according to Birkin, generated NGR of BRL3.5 billion in Brazil in H1. Although its sponsorship cost is rumoured to be double Pixbet’s at BRL125 million every six months, that equates to just 3.5% of Betano’s NGR.

With Birkin estimating Betano’s pre-tax and post-bonus NGR at BRL19.5 million a day in Brazil, it would take it just 13 days to cover a full year of the Flamengo sponsorship. For Pixbet, it would take 72 days of Brazil operations, even with its Flamengo sponsorship costing half the amount.

In Birkin’s view, that huge disparity demonstrates financial overextension on Pixbet’s part.

“If one part of your marketing budget is 20% of your net gaming revenue, suddenly it doesn’t become a viable business to be spending that much on marketing, unless you’re happy to run at a loss for a certain period of time,” Birkin said.

International brands dominating in Brazil

H2’s current podium positions are all filled by international entrants to the Brazilian market, with Betano followed by Bet365 and Superbet in second and third, respectively.

Prior to the launch of the regulated market, many hypothesised that local operators would dominate on their enhanced knowledge of Brazilian markets and culture.

But Birkin thinks this was overblown, as evidenced by international brands of Betano, Bet365, Superbet and Sportingbet boasting a combined market share exceeding 50%. These brands brought in local talent to chart a path to growth, albeit with the resources of international giants to support their plans.

“The general view I heard when going to Brazil is that you need to understand international operators can’t just come in and do well, and it’s going to be local brands that win out,” Birkin said.

“The fact is, that’s only true if international operators don’t have a local presence.”

Are smaller Brazil operators in trouble?

Back in June, Ficom Leisure founder and M&A expert Christian Tirabassi predicted a top-heavy market in Brazil. He told iGB that 10-12 brands would dominate, with smaller operators hampered by high financial barriers both to entering and remaining in the market.

Despite holding just a 2% market share, Pixbet is the regulated Brazilian gaming market’s 11th-biggest operator, according to H2. Of the 173 licensed brands Birkin and H2 are tracking, remove the top 19 and the remaining 154 hold on average a market share of around 0.1%.

With a raft of operators making less money than Pixbet, Birkin suggests smaller operators could run into similar trouble, especially with tax rises and new ad restrictions seemingly on the way.

Birkin compares the Brazilian market to the US, where a flurry of operators entering the market has since dwindled, with the likes of Betway, Evoke and Unibet exiting in 2024 due to the dominance of bigger companies.

“If the 11th-biggest operator can run into trouble, then so can the 10th and the ninth and the eighth, and so can the 99th, 100th, 110th, 120th,” Birkin said.

Pixbet’s Flamengo gamble doesn’t pay off

Pixbet took a gamble with its Flamengo sponsorship that hasn’t paid off, according to Birkin.

Flamengo launched a new betting brand last year called Flabet, which was managed by Pixbet and featured the club’s branding.

With Flabet holding an average market share of just 0.15%, Birkin agrees the specific targeting towards Flamengo fans disregarded the rest of the brand’s potential target market.

He makes the point that while Brazilian football is incredibly popular in its home country, it doesn’t boast the same worldwide popularity as the English Premier League and other European football competitions.

Despite Pixbet’s troubles, Birkin believes there is still a place for smaller operators in the Brazilian market, provided they maintain a sensible financial approach.

“Bear in mind: Pixbet are the 11th-biggest operator, but you have someone who’s down at 20th who’s maybe less than half the size,” Birkin said. “But if they’ve got better cost control, then it’s a better run business.

“You can run a smaller business than Pixbet, but you just have to have cost control. You can’t be spending BRL125 million a year sponsoring Flamengo. You’re not making that sum of money.”

Peru’s nascent licensed gambling sector was thrown into stormy waters last year, when a 1% selective consumption tax (ISC) on the value of every bet was reintroduced. It had originally been scrapped from proposed legislation in July 2021.

The consumption tax was approved in mid-December, with the Peru government confirming it would come in from January. The initial tax rate would be 0.3% of every bet, before the full 1% rate kicked in from 1 July onwards.

Nicolás Samohod Rivarola, founding partner of local law firm Samohod Lawyers, warns the impact of the current consumption tax on the regulated market will be “catastrophic”.

“We are talking about the future, about the very permanence of the activity in the market,” Rivarola tells iGB.

“That is how apocalyptic the impact of the ISC would be on the Peruvian market if it remains as it is currently.”

Operators forced into lose-lose position

Gonzalo Perez, CEO of the market-leading operator Apuesta Total, previously told iGB the consumption tax, alongside the existing 12% tax on GGR, would lead to the tax burden on operators doubling.

In neighbouring Colombia, operators have looked to offset the effects of a new temporary 19% value-added tax (VAT) by giving players bonuses. However, this has heavily impacted profitability in the market, leading Codere Online to reduce operations there “to the bare minimum”.

The situation is similar in Peru, with operators sitting between a rock and a hard place. The question is whether they should risk their profitability to try and maintain market share by absorbing the tax’s impact themselves.

When asked what operators are concerned about with regards to the tax, Rivarola says bet amounts for players will decrease once the tax costs are passed on to them.

“The portfolio of customers to whom the tax is transferred will see the initial amount of their bet decrease, a fact that is unacceptable for the player. [It creates] a situation in which the temptation for the end consumer to direct their gaze to unregulated gambling scenarios is very risky and highly contingent,” Rivarola warns.

“On the other hand, if the operator directly assumes the burden and impact of the ISC, the margin of the business will be so small that investment will be discouraged as well as the economic-financial planning of any business model.”

Is the consumption tax in Peru unconstitutional?

Ultimately, the additional consumption tax could harm the government’s revenue collection aims. Rivarola says there will only be one winner – the illegal market.

“There is no other way or alternative to save our market than to repeal this disastrous tax.”

One way out for the licensed Peru market could lie in the tax being deemed unconstitutional. Rivarola is unsure whether the current structure of the tax is compatible with the sector in the long-term.

“In my opinion, the ISC for sports betting and/or remote gaming in Peru, as structured by the Congress of the Republic and by the Ministry of Economy and Finance, constitutes an unconstitutional tax because it is anti-technical and confiscatory,” Rivarola explains.

If the government does persist with the tax, Rivarola says it must at least assess the consumption tax’s impact on operator net win or GGR.

Dent in Peru’s gambling ambitions

Much of the frustration around this new tax relates to operators being largely happy with the market before this policy emerged.

With its regulation coming into effect last year, Peru is considered to have a very strong framework in comparison to some neighbouring LatAm markets.

The market was expected by many to become a podium player in the region. However, that optimism has been thrown into doubt by this unsettling tax measure.

Rivarola warns it could “destroy” the decades-long work and efforts to arrive at a regulated online market in 2024.

Rivarola puts the blame for the tax firmly on the government, praising the regulator – the Ministry of Foreign Trade and Tourism (Mincetur) – for its lengthy work in developing and establishing the market.

“We have one of the best regulatory authorities in the world,” Rivarola adds.

In his view, the licensed sector must continue to “fight to survive, to protect its investments and companies, to preserve the jobs of its thousands of workers”.

“The operators are heroic businessmen (national and foreign), who seek to make formal companies despite obstacles and adversities, who know how to work in a highly regulated and supervised market like this,” Rivarola concludes.

“Please do not abuse them, do not destroy their investments, do not leave their workers on the street without formal employment.”

Speaking to iGB this week, Hurst insists the public and national media’s perception of gambling is one of her “biggest bugbears”. She believes it is providing a voice to anti-gambling lobbyists, who will never change their minds.

“I do think that there is still a slight misconception about the industry among the broader public, which is something that the BGC is working really hard to alter,” Hurst says.

In her view, one of the BGC’s key objectives is to to inform the general public of the real state of the gambling sector, using evidence to counter the negative media discourse.

“There’s a number of ways we can do,” Hurst adds.

“Having the evidence base to counter some of the myths, misconceptions and quite frankly lies that you read in the media sometimes is really important and an important role for the BGC to play.

“But also, listening to the customers and asking their views about what it is they think about whatever myth is being peddled at that particular moment in time. So I think there is a huge role for the BGC to play, and we’re working really hard at that.”

Sector should be doing more to improve its reputation, says Hurst

But she believes the sector should be doing more to alter the public’s negative perception of gambling in the UK.

She highlights huge advancements in player protection and responsible gambling, particularly following the Gambling Act review and subsequent white paper.

“We have made significant progress, but there’s more we can do,” Hurst says. “It’s frustrating because I know how proactive and responsible the industry is.

“But as we all know, kind of good news doesn’t really sell most of the time. And so it’s trying to weave that good news story into our day-to-day comms, which is really important, which we’ve been doing and will continue to do to highlight the positive elements that the industry is doing and has done already.”

How will mandatory levy funding be spent?

Hurst believes the BGC has become a unified voice for the licensed UK gambling sector, a role the body will continue to serve by communicating with external stakeholders such as the government and the Gambling Commission.

Hurst expresses concerns over the new mandatory levy, introduced this year after being recommended in the 2023 white paper.

Specifically, she holds reservations over whether funding could be used to support anti-gambling research and education, which would be harmful for those facing gambling harms, she says.

“I think continuing to lead the way in education and awareness, where we can outside of the mandatory levy, will be really important, but a lot of it now is being taken out of our hands with the new system, so just need to be conscious and careful that that’s being delivered.”

Tax harmonisation proposals another concern

Another area of concern for Hurst, the BGC and the wider UK industry is the government’s recent announcement of plans to restructure the current online gambling tax system.

Currently, the UK has three separate tax rates for online betting. Remote Gaming Duty (RGD) taxes operators at 21% of profits, General Betting Duty (GBD) at 15% of profit and Pool Betting Duty (PBD) at 15% of net stake receipts.

The government’s new proposal will consolidate the three rates into one. Stakeholders are concerned the rate will be increased to 21% across all verticals.

A recent YouGov survey suggested nearly two-thirds of bettors surveyed would turn to unlicensed operators if the gambling tax is increased.

Hurst echoes those concerns. She says fighting those proposals will be the BGC’s biggest challenge over the next few months.

“We have been very vocal about saying [the single tax rate] would be hugely self-defeating, as it wouldn’t achieve the government’s aims of trying to raise more money, which I think is the bottom line,” Hurst continues. “It will be hugely detrimental for the customer offer, and also growing the black market.

“And [the tax change would] hugely reduce the amount of support for really important British sports, namely horse racing, but others, like rugby league, darts and snooker.”

Hurst took over as BGC CEO in September last year, joining the organisation after six and a half years as Entain’s group director of corporate affairs.

During her first year leading the BGC, the sector has faced significant change and uncertainty on the implementation of white paper reforms largely happening all at once.

The UK industry has been further hampered by media scrutiny, particularly on topics such as advertising and tax.

Rank is hoping to launch retail sports betting across its casino portfolio in the UK from September, after new regulations were passed into law on 22 July. 

Mark Harper, MD of Rank Group’s Grosvenor Casinos, tells iGB the opportunity to offer betting to casino customers will drive customer acquisition efforts and enable its venues to compete against the growing threat of Adult Gaming Centres (AGCs). 

The government passed into law a number of land-based casino reforms, including increasing the number of gaming machines within a venue and enabling casinos to offer betting via SSBTs.  

Harper says applications are currently under review and the Gambling Commission is likely to start approving those by September.  

Betting now allowed in UK casinos

Previously, bettors could place a bet on their mobile phone while in a casino, but not via an SSBT within the actual venue itself. 

While the number of terminals will be limited according to the size of the gambling area, Minister for Culture, Media and Sport (DCMS) Baroness Fiona Twycross told the House of Lords in June that new regulations would broaden the scope for investment by casinos. 

“The current regulatory framework prohibits these casinos from offering betting products, whereas venues licensed under the 2005 Act can do so. The prohibition makes little sense, as a casino customer can place a bet on their mobile phone while in the venue but not with the casino itself,” Twycross said during a debate on the amendment. 

“This change will allow converted casinos not only to offer a new gambling product but to invest in other parts of their venues, such as sports bars.” 

Additionally, under land-based reforms, licensed converted casino premises can install up to 80 gaming machines, provided the gambling area is no smaller than 280sqm and the number of machines doesn’t exceed five times the number of gaming tables used in the casino. 

Land-based reforms ‘transformational’ for Grosvenor 

Harper believes the land-based reforms will prove “transformational” for the UK casino sector and Grosvenor is well positioned to capitalise. 

“I think we are particularly well placed because of our scale, because of our locations, because of our square footage within our venues,” Harper tells iGB.  

“We will be able to maximise the opportunity of increased slots to satisfy customer demand at the same time as we will introduce sports betting, which will widen the appeal of casinos. That has triggered investment within our business during the last 12 months.” 

The timeline of land-based casino reform in the UK 

The DCMS set out to modernise UK gambling regulation in its 2023 white paper, with a number of proposals specifically centred on the land-based sector. 

Changes to increase the number of gaming machines and allow betting in casinos were published in May, with the regulations passed by both parliamentary houses in June, before their 22 July implementation.  

Harper believes licences will be granted towards the end of August, with Rank then hoping to roll out additional slots and SSBTS from September onwards. 

“We would anticipate an immediate uplift in revenue as a result of those extra slots, because for the first time, customers will actually be able to get onto a slot machine on a Saturday night, as well as broadening the appeal through sports betting,” Harper says of the benefit of land-based reforms.  

Land-based reforms spark heavy Rank investment 

Rank made seven significant upgrades to its casinos in 2024, with a further six venues to receive similar investment this year. 

“We are investing a lot of money and that is on the basis that land-based reform provides the catalyst to satisfy customer demand and broaden the appeal of casinos,” says Harper.  

“We’re using that at the same time as a way of modernising and creating warm, welcoming, compelling, exciting environments.” 

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.”

New UK betting brand BetTom launched its online betting and iGaming platform in the UK in May, in partnership with supplier EveryMatrix,

Colley spent 11 years at Goodwin Racing, working closely with founder Julian Head. His co-founding partner for BetTom is Julian’s son Tom Head, while Julian’s other son Ed and their mother Susan also maintain ownership in the company. The team at BetTom is now into double digits, he says.

“I’ve nicked a load of staff from Goodwin,” says Colley. “They were actually really helpful with that because they just said they would replace the staff.”

On his time at Goodwin Racing, he says transitioning to online from the operator’s legacy telephone betting serving was a steep learning curve.

“I managed the online operation and learned a lot about how it’s done, the contacts you need, and every piece of the puzzle. If I had started BetTom without that experience, I wouldn’t have had a clue what I was doing,” Colley tells iGB.

Jockeying for position

Despite the UK being a mature and challenging market to navigate, Colley believes his experienced team will give BetTom an edge over other start-ups.

“You need a few things coming into this market, an experienced team and a good product,” he says. “[A new operator] can’t turn up and have things like next day withdrawals, because player expectations have changed. You need to have bet builders and cash-out options, all the things customers expect in the current climate.

“The market is saturated, and you’re up against big bonus offers, so it’s hard. But if you have an idea and a good product, you have a chance.”

‘Compliance should not be automated’

Compliance is at the top of Colley’s priority list and, while many of the more established operators move to automate many of their processes, he believes compliance processes should be fully manual.

“It’s all about looking after players and compliance is our biggest department now. It has to be manual work and can’t be automated. Using these websites for 20 years has helped me understand what we need to be offering,” he adds.

Knowing the BetTom customer

BetTom is not expecting to compete against tier-one operators, but Colley says his aim is for BetTom to be a “relatable” brand, with a reputation for being customer-friendly.

“Nowadays, you can bet with an operator for years and you’re just a number. It can take them seven days to even send you a response. That’s how we’re going to change things. The customers will get to know us and we’re going to help them straight away. I think players will find us relatable,” Colley says.

““I’m prudent and sensible, so I’m not going to say we’ll be the next Paddy Power, but if we could grow by two or three times, we would be happy with that.

“It’s a big industry and we want a modest piece of the pie. We want to keep growing but we will be realistic about it. For now, the main thing we want to be is a respected operator with recreational customers that trust us to give them a frictionless journey.”

The gambling tax hike issue

The UK is becoming increasing difficult for smaller operators to navigate, as they grapple with enhanced player protection rules like financial risk checks, which limit spending for UK customers.

One of the founder’s main concerns is the impact of a potential gambling tax hike that could follow the government’s consultation on consolidating the current tax regime.

The UK currently has three taxes in place: a 21% remote gaming duty; general betting duty at 15%; and a pool betting duty at 15% of net stake receipts.

The racing industry is particularly concerned that a single increased betting tax could seriously impede the sector. The Treasury is expected to provide an update on this in its autumn budget.

Establishing a new brand amid this uncertainty was a risk and Colley says he is concerned about the future.

“Costs keep going up, such as tax and data rights. That makes it harder and harder and our industry seems fair game to the government,” says Colley.

“We don’t yet know what our tax rates will be for five years. It is definitely a concern.”

Will horseracing survive the tax increase?

When it comes to horseracing, Colley is pessimistic operators will make on-course betting work in future. “On-track betting has been dying for years. Covid did it no favours, and now every stand is cashless. It was always a hard game, but there are too many books now and we have zero plans to do that. It’s all independents fighting over each other now, because the big names aren’t interested.”

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.  

Understandably, operators are shocked and likely reconsidering their positions in the newly regulated market.  

“[Operators] don’t want to be investing in a country they agreed to pay BRL30 million [to enter]. They agreed to invest hundreds of millions into this venture and then six months down the road they just change the rules of the game without asking you,” Eduardo Ludmer, BetMGM’s head of legal in Brazil, tells iGB.  

Gambling trade bodies ANJL and IBJR banded together and condemned the government’s provisional measure as “unacceptable” when it was announced earlier in June.  

“If Brazil goes in this direction, it’s just showing a message that rules can be changed at any time here,” Fernando Vieira, executive director of the Brazilian Institute of Responsible Gaming, adds. “It’s not reasonable to come and start to change everything after only five months. 

“It will send a message to the world that Brazil is a complicated place for doing business. There’s no legal certainty in Brazil for the business.” 

What is the government suggesting? 

In June, the Brazilian government enacted a provisional measure to raise the tax rate as part of a broader effort to cut the government’s deficit.  

It relates to upcoming proposed changes to Brazil’s tax system, set out in May, which would have seen a sharp increase to the financial transactions tax (IOF), raising the rate from 0.38% to 3.5%. 

The IOF applies to a range of foreign transactions including loans, currency exchange, insurance and investments. It remains a major source of federal tax revenue. 

However, the proposal faced backlash from Congress, prompting the government to revise the decree almost immediately. 

President Lula’s administration remains under pressure to reduce Brazil’s fiscal deficit by the end of 2025, ahead of next year’s presidential election.  

Therefore, the government has turned its attention to the betting industry to help cover the BRL20 billion ($3.6 billion) shortfall left by the IOF decree’s failure. 

This has come as a huge shock to the sector, especially the timing, with less than six months having passed since Brazil’s licensed online sector went live on 1 January. 

Ludmer tells iGB his company’s finance team will have to recalculate their forecasts to include the abrupt tax rise. 

“Everybody was very surprised with the increase, because you prepare yourself, you buy a BRL30 million licence, you have a business plan based on a 12% tax rate,” Ludmer says. 

This could have huge repercussions for the licensed sector, which suffered another blow recently when the Senate approved new ad restrictions, such as watersheds across TV and radio.

ANJL President Plínio Lemos Jorge warns the tax rise will impact ongoing requests for licences, with Brazil potentially losing out on BRL2.8 billion in revenue should operators decide to give up on entering the regulated market. 

Legal uncertainty caused by tax hike the key point 

Ludmer is concerned sudden changes like the tax rise will ultimately undermine investor confidence in the regulation, making Brazil appear as “not a serious country”. 

The sector is still awaiting the outcome of a Supreme Federal Court hearing to establish whether its betting laws breach Brazil’s Constitution.

This hearing was called after the National Confederation of Trade in Goods, Services and Tourism (CNC), Brazil’s third biggest trade union, filed an ADI (Ação Direta de Inconstitucionalidade), a legal action in Brazil that aims to overturn a law that acts against the nation’s Constitution.

“For me, this [legal certainty] is the pillar for everything to succeed,” Ludmer continues. “It’s one of the most important aspects to doing business, not only in Brazil, but everywhere.” 

“Imagine you have the Supreme Court that is slated to declare or not the legality of betting, of the whole industry we are working in, where we are making investments in the billions, hiring like crazy. And it could be the case that this whole thing can have a huge setback. It’s crazy to imagine that.” 

Vieira agrees the inevitable legal uncertainty has the potential to set back Brazil’s nascent licensed sector. 

Ludmer explains this rise is to be paid alongside a range of other taxes, such as income and municipal taxes, pushing the total burden on operators close to 50%. 

“Operators have said it’s prohibitive in terms of business to have 18%,” Ludmer says. “We want this country to thrive and we understand that an industry can help contribute to that, so creating jobs, paying reasonable taxes based a on predetermined rate that we agreed upon, that should not be varied.” 

Illegal market again a key concern in Brazil 

Lemos Jorge agrees with Ludmer’s warning the tax rise is prohibitive to operators and he says it will be much harder for licensed companies to remain profitable.

Authorised operators may opt to exit the licensed market, with consumers then pushed towards the black market. 

The IBJR has already predicted the market share of illegal operators could jump from the already concerning 50% up to 60%. 

“The only way operators will be sustainable in Brazil is to increase the channelisation level and, for that, the fight against the illicit market becomes even more important,” Vieira explains.  

These illegal operators don’t comply with responsible gambling measures or pay taxes and, in Ludmer’s view, lax enforcement is allowing such companies to continue their activities without fear of punitive backlash, as well as payment providers who work with black market sites. 

Notably, Anatel, the national telecom regulator, which is tasked with blocking illegal sites in Brazil, is reportedly running out of funds needed to continue its enforcement efforts against the black market.  

“We have criminals doing criminal activities without having any enforcement,” Ludmer says. “They need to pay a very heavy fine.  

“If we see the Central Bank imposing a very heavy fine on these payment providers, then we’re going to see these illegal operators being scared, because nobody’s scared currently.  

“If you act with impunity and you’re earning billions of dollars without paying any tax, without hiring any local employees, without contributing to the economy, and you have no sanctions, you keep on doing that, unless you apply the sanctions.” 

Industry needs to educate Brazil lawmakers on tax hike

There is still hope for the betting industry that this tax could ultimately be scrapped. Local news outlet Valor reported Hugo Motta, the Chamber of Deputies speaker, has stated the provisional measure is unlikely to be approved in its current form.  

This time prior to such a vote occurring is therefore crucial for the gambling sector to make its point, educating the politicians on the economic benefits of the betting and, perhaps most importantly, why such a measure could foster black market growth. 

The ANJL has sent a technical report to the presidents of the Senate and the Chamber of Deputies, listing all the consequences for the betting sector should the tax rise be made permanent.

The report also points to other markets where abrupt changes without prior analysis have compromised the competitiveness of the licensed sector, thus boosting the black market. 

The IBJR has also launched a study that found if the government turned its attention to reducing the illegal market by 10%, the additional revenue would cover the funds they are expecting to gain from raising the tax. 

Brazil government’s lack of understanding

One key issue is the lack of understanding from the government of the betting sector, Vieira laments. He notes the average member of parliament has a “very low understanding and knowledge” of the sector’s regulation. 

“Education is a fundamental piece of the answer for the problems that we’re facing in Brazil,” Vieira adds. “One front is education from the stakeholders in Congress and some of them in the government to understand that we have already a good set of rules in place.  

“And the other part of education which is needed is educating the consumer, because we saw in our research that most bettors find difficulties in distinguishing a legal operator from an unregulated operator.” 

This duty also falls upon operators, Ludmer says. “We have a responsibility here as a big company as well to educate the market. Our main campaign now is on responsible gaming.” 

IBJR and ANJL join forces

Some in the industry have previously lamented the fragmented representation of the sector, with five major trade associations representing betting in Brazil. 

However, the two biggest, the ANJL and IBJR, signed a cooperation agreement in June, aiming to strengthen their efforts against overregulation in Brazil. Combined, the bodies claim to represent over 90% of the regulated sector. 

In Vieira’s view this is a step in the right direction, especially when tackling problems that risk jeopardising the entire sector. 

“It means that we will together fight the illicit trade and to guarantee sustainable conditions for the market and increase the channelisation in Brazil, the objective for the whole sector,” Vieira says. 

“It is time, more than ever, for unity,” Lemos Jorge agrees. “We have a common agenda, which is the viability of the regulated betting market.  

“We are facing a great challenge, because over-taxation compromises the activity of the sector and drives the growth of illegal websites, which already represent the vast majority of bets operating in the country.” 

Confidence the tax hike won’t be made permanent 

Ludmer is optimistic the tax will not be converted into law. Similarly, Lemos Jorge is hopeful the Congress will see sense and realise just how harmful the rise could prove to be. 

“We are confident in the dialogue with the authorities,” Lemos Jorge concludes. “The regulated market pays its taxes, generates revenue for governments and enables the creation of thousands of jobs.  

“Now is the time to focus on and improve a sector of the economy that will not regress and that can make significant contributions to the expansion of public policies.” 

Even if the policy isn’t converted, however, the threat of it is a harsh reminder of the unpredictability in Brazil. This approach is what also delayed the launch of the legal sector and helped encourage black market proliferation.  

Now more than ever, operators like BetMGM and the two major trade bodies need to get on the same page and ensure the momentum of the licensed betting sector isn’t harmed.  

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

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

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

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

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

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

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

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

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

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

Lottery’s growth potential bigger than expected 

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

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

Zeal CEO on protecting new lottery game types 

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

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

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

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

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

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

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

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

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

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

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

Does the preliminary status of the injunction give Loterj hope?

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

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

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

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

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

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

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

Unfair competition from illegal operators a key concern

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

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

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

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

The future for Loterj

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

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

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

Although the bill’s rapporteur, Senator Carlos Portinho, eliminated a blanket ban on gambling ads from the proposal, the approved bill does include a ban on betting ads during live sporting broadcasts. The use of celebrities, influencers and athletes in any marketing material will also be prohibited, with the ban only applying to current players or those whose career ended less than five years ago. 

With both the Sports Commission and Senate having now approved the amended bill, it is headed to the Chamber of Deputies for review. 

The new law will likely not take effect until 2026, says Udo Seckelmann, head of gambling & crypto at local law firm Bichara e Motta Advogados. Seckelmann says he is relieved the “disproportionate” blanket ban has been eliminated, although he warns the push for further restrictions “lacks evidence-based support”.

“The motivations, although well-meaning, must be weighed against real-world outcomes – and the evidence suggests that informed, responsible regulation is more effective than prohibition,” Seckelmann explains. 

Current Brazil gambling ad regulations are sufficient

The Secretariat of Prizes and Bets (SPA) published Normative Ordinance No 1,231 in July last year, laying out how licensed operators could advertise their products. The regulations included restrictions on operators presenting betting as “socially attractive” or using ads to target children or adolescents. 

Additionally, all advertising from licensed operators was mandated to display an “18+” symbol and be guided by social responsibility and the promotion of responsible gambling. 

Lawyer Luiz Felipe Maia, founding partner of Maia Yoshiyasu Advogados, believes current restrictions on advertising are adequate, especially with Brazil having only just regulated its iGaming sector. 

“I think the current regulation is sufficient in protecting people, and they are coherent with this stage of the market, because Brazil has just become regulated,” Felipe Maia tells iGB.“When you have a new regulated market, it’s important to allow the regulated operators to advertise and to become known to the public, so that you can drive the public to those regulated operators. I think it’s [important] that we don’t have that many restrictions, such as in other regulated but more mature markets.” 

Fellipe Fraga, chief business officer at licensed operator EstrelaBet, agrees the current regulations are sufficient. “I believe it’s enough,” Fraga says. “Most important is to have conscience. The politicians and other regulators understand that the market is okay [as it is] and all the world is doing [online betting], so we can also advertise.” 

On the other hand, Betsul CEO Fernando Garita is keen for the advertising regulations to be more clearly defined. Garita is calling for clarity and consistency from the SPA: “A better balance is needed – one that enables responsible messaging without stifling legitimate commercial activity.” 

Enforcement is the priority 

While the licensed sector is generally content with current ad restrictions, many stakeholders are urging stricter enforcement be applied, especially when it comes to influencer advertising, which last year became a sector, and national media topic du jour.  

The game “Fortune Tiger” faced huge controversy last year. Influencers were investigated and in some cases arrested, after marketing the game to their followers and promoting attractive financial rewards. Many players ended up losing large sums of money playing the game on fraudulent sites. 

Since the scandal, the SPA has taken steps to further restrict influencer advertising. Internet personality Virgínia Fonseca appeared in front of the parliamentary inquiry commission for betting in May to be questioned over advertising gambling to her huge online following. 

Felipe Maia believes the SPA should crack down on those infringing upon current regulations. “I think if we start to have these cases where digital influencers will be held liable, have to pay fines and maybe be arrested for working with illegal operators or not complying with advertising rules, we will start to see different behaviours,” he insists. 

Overregulation risks empowering the black market 

The Brazilian gambling sector is by no means the only market experiencing pressure over its gambling advertising. Looking elsewhere at more mature markets, it’s understandable there are fears over the consequences of further restrictions. 

Germany, where nearly half of all players bet with the black market, has a ban on TV and online advertising between 9pm and 6am, as well as restrictions on showing sports clips in ads and partnering with sports personalities. 

Italy, which has a blanket ban on gambling advertising, is experiencing serious black-market issues, while Brazil’s neighbour Argentina has also taken steps to introduce a ban on online betting advertising. 

With licensed operators in Brazil already concerned by the presence of the black market, the industry fears more stringent regulations on advertising would only strengthen illegal companies, as seen in other nations. 

“Experience from countries like Italy shows that excessive restrictions and high taxes can backfire,” Garita explains. “Blanket bans would significantly reduce the visibility of regulated operators, while illegal ones would continue to thrive through uncontrolled channels like Telegram. 

“If you have a market becoming regulated with too many restrictions for advertising, basically you’re hurting channelisation and you are aiding the black market,” Felipe Maia adds. 

Gambling ads helps identify legal operators 

In fact, advertising is actually a hugely important tool for operators to demonstrate they have a licence and channel bettors into legal offerings, particularly in the early stages of a licensed market’s development, when competition among brands is fierce and player loyalty has not yet been established.  

With licensed operators’ advertising required to have an “18+” symbol, as well as information on the associated risks of addiction and pathological gambling disorders, Garita says the role of advertising in distinguishing legal from unlicensed operators is “a crucial one”. 

Garita says: “Advertising is one of the few public-facing tools we have to demonstrate that we operate legally.  

“It allows us to build trust, promote safety, educate users and show that we work within a regulated framework. Eliminating that visibility blurs the lines between legal and illegal operations – posing a major risk to consumers.” 

And even with advertising providing that distinction, markets like Sweden have found a high percentage of players still cannot distinguish legal operators from black market brands.  

What’s behind the negative public perception of gambling?  

Significant pressure was put on Brazil’s gambling sector in 2024, during a crucial period of establishing regulation. A Supreme Federal Court hearing in November was initiated after a leading trade union accused the new betting laws of being unconstitutional, amid fears that betting leads to high addiction levels and family debt. 

But four months into licensed betting, the public opinion towards betting seems to be improving, and in April a government-funded survey by DataSenado reported 60% of the population is now in favour of legalising land-based gambling. Part of the industry’s frustration lies in the belief that politicians are responding to public pressures, rather than data and global sector experiences that prove why ad restrictions could have unwanted consequences. 

But some politicians, particularly the rapporteur of the new advertising restrictions bill, have adopted a negative rhetoric around gambling, insisting it is harming public health and finances.  

Political echo chamber

Felipe Maia believes there isn’t actually a negative public perception of gambling in Brazil and asserts politicians are simply repeating the concerns of specific groups. “Basically, they’re responding to their echo chambers,” he says.  

“If they’re religious, they are responding to the groups they represent. If they’re more conservative, they are saying [these things] because this echoes well to their public. What you have is an opportunistic approach by some politicians to use this for propaganda purposes.” 

The situation is complicated further by Brazil’s long history of gambling prohibition, with the sector essentially made illegal in 1946. This has resulted in a lack of political understanding.  

“We’re trying to make them understand and, of course, in Brazil, with 80 years with cultural prohibition of gambling, they don’t really know yet what our industry does, what you can provide for the country,” says Fraga. “It’s a process for us to teach them, to explain to them [how our industry works] and to avoid those views, because many of these [bills] are talking about misconceptions.” 

What’s the solution? 

Ultimately, an effective response to Bill 2,985/2023 from Brazil’s betting sector could be handicapped by fragmented representation of the industry. 

According to Felipe Maia, there are five trade associations that represent betting companies, causing a lack of coordination and likely a weakening of the industry’s response to any perceived overregulation. 

“I had this complaint from a congressman. What they say is it’s very hard to deal with this industry, because they get different inputs from different associations and then they don’t know who to trust,” Felipe Maia declares. 

Collaboration is the way forward in Garita’s view. He agrees there is fragmentation in industry representation and that complicates the formation of an effective response. 

“Lobbying efforts and collective action by responsible operators and associations will be crucial,” Garita adds. “We need unity and coordination to defend common interests.” 

During the Sports Commission hearing to approve Bill 2,985/2023 in 28 May, Senator Portinho said the changes were necessary due to the sector’s inability to police its own advertising activities.   

Felipe Maia urges operators to self-regulate where possible, to prove they are good actors. “I think self-regulation shows social responsibility, maturity. And it allows you to come up with solutions that work for the industry before someone comes with an idea that will not work,” he says. 

Critical juncture coming up 

As Seckelmann explains, an assertive but constructive approach to advertising regulations could help mitigate the negative opinion held by politicians. “It is essential to emphasise that advertising, when done responsibly, plays a key role in channeling users toward licensed, safe operators and away from illegal sites,” he reiterates. 

As it stands, those seeking to restrict gambling look to be edging the battle, especially with the industry’s current inability to form a collective, data-driven response that effectively warns against the perils of overregulation on advertising witnessed in other markets. 

The industry’s point is clear: Overly restrictive measures on ads at this point in Brazil’s regulated online journey could prove disastrous and drive players out of the licensed sector. 

As the Chamber of Deputies, the Senate’s final stage, prepares to evaluate Bill 2,985/2023, Brazil’s betting sector must act quickly to make its case against the perceptions that threaten to damage the legal market’s progress.

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

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

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

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

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

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

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

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

Lottery regulation is not up to par 

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

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

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

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

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

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

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

Baungartner has already started work on high-priority regulatory and institutional matters, which will involve him representing the group before key industry stakeholders, such as the Secretariat of Prizes and Bets, the Federal Revenue Service and the Central Bank of Brazil.

“My focus is on managing relationships with institutional stakeholders and regulators, leading compliance initiatives, and structuring strategic partnerships and projects – all with an emphasis on consolidating and expanding the group’s presence in Brazil’s regulated market,” Baungartner tells iGB.

Esportes da Sorte gained a licence for the newly regulated Brazilian betting market in January and H2 Gambling Capital ranked the brand among its top 10 operators for market share in March.

Baungartner, who previously held the role of chief commercial officer at Brazilian operator Aposta Ganha, started his new role earlier this month.

As Aposta Ganha CCO, he helped the company become one of the first to gain a full licence in Brazil, playing a key role in the local operator joining international giants such as Bet365 and Betano in the market.

What attracted Baungartner to Esportes Gaming Brasil?

Baungartner boasts nearly 30 years of experience in the gaming industry, with strategic expansion and institutional consolidation key themes of his time at Aposta Ganha.

He feels those experiences will serve him well at Esportes Gaming Brasil, saying: “I bring with me a comprehensive view of the sector, hands-on experience navigating regulatory transition and valuable technical know-how in both operations and regulator relations.”

When asked what it is that attracted Baungartner to Esportes Gaming Brasil, he explains: “The group’s strategic positioning and commitment to regulatory compliance were key factors.

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

Baungartner expects to still play an active role in the industry’s conference and events circuit, believing these are essential for sharing best practices and staying ahead of regulatory and technical trends.

The excitement for the new role stems from both professional and personal motivations for Baungartner, who explains the opportunity to work alongside a highly skilled leadership team on the expansion of one of Brazil’s key players is the aspect that most interests him.

“We’re building a robust, regulated operational model aligned with international standards,” Baungartner says. “Professionally, it’s a strategic move. Personally, it’s a chance to make a positive impact on the industry in my home country.”

Targeted regional expansion a priority for Esportes da Sorte

From a commercial perspective, the strategic partnerships aspect of Baungartner’s position will focus on working with companies that support Esportes Gaming Brasil’s expansion plans.

This will entail partnerships with certified providers, fintechs, data companies and certification laboratories that can bolster the business’ position in the hugely competitive Brazilian market.

Baungartner and his team will implement a regional strategy with a priority focus on brand penetration, saying: “Brazil offers opportunities on multiple fronts, but I would highlight the South and Southeast thanks to their economic scale and the Northeast for its strong engagement and the group’s already solid presence.”

Strengthening institutional relations is also among Baungartner’s top priorities and, in his view, the biggest challenge for that objective lies in establishing a trust-based environment.

Esportes Gaming Brasil has been vocal in supporting Brazil’s regulatory process and, with Baungartner’s help, the company will continue to advocate for regulation, while also pursuing commercial aims of innovation and expansion.

“As the regulatory framework continues to evolve, it’s essential to maintain active institutional channels, ensure transparency in internal processes and collaborate with regulatory bodies on the interpretation and implementation of new rules,” Baungartner continues. “As advocates of regulation, we must be fully engaged in this collaborative phase.

“Our goal is not just to comply with the law but to actively contribute to building an efficient, safe and, above all, responsible market.”

Ben’s story is one of resilience and relentless determination. Today, his impact in the UK market is visible across 18 Star Sports shops, numerous racecourse pitches and a growing online presence through his brand, but also PricedUp, Planet Sport Bet and NRG Bet. He now employs over 300 staff.

Unlike the corporate giants, Ben is comfortable taking bets from just about anyone. He plays the man and bets to figures. In doing so, he has built a business that stands liabilities most would duck – making him a true outlier in today’s operator market.

Where it began

Ben’s journey started at Hove greyhounds. Barely a teenager, he was reluctantly dragged to the track – but a £2 winning Tote bet on Sara Jones, the spring of the traps, dust in the air and the roar of the crowd left an instant impression. He was hooked. From that night, he knew he’d found his calling. 

He quickly became the school bookmaker, taking bets from students and teachers on everything from school sports, to the next head boy. He washed cars on weekends to afford The Sporting Life and Racing Post and spent every spare moment in the betting ring – ferried from track to track by his father. Before his first day of work experience at Hove, his dad offered a parting line that stayed with him ever since:

“Take the good, leave the bad.”

Learn from the best

The betting ring became Ben’s university and the bookmakers were his professors.

One of the earliest was Martin “Lofty” Chapman, who taught him how to price a race, balance a book and communicate odds with tic-tac. Today, Chapman remains an integral part of the Star Sports team – a regular presence at pitches across the UK.

While still a teenager, Ben also gained experience at City Index, working in the sports spread betting division. There, he encountered Martin Johnstone, whom he later described as City’s “shrewdest and most successful punter”.

In his late teens, Ben would start watching Martin at work in Bournemouth. The chance to learn from someone who operated on both sides of the fence – as a pro punter and a bookmaker – was formative.

“He was the perfect example of both a professional punter and bookmaker.”

Missed opportunity

Ben returned to City Index, where he had previously been promised a full-time role once his A-levels were complete – thankfully, passing them wasn’t a condition. A couple of years later, a new spread betting job came up in Gibraltar, which he accepted. But, in Ben’s view, the venture wasn’t going anywhere fast.

His boss, however, might have been. He was working for a young Tony Bloom, who was already making money trading Asian handicap football markets. But that world held little appeal. So when he landed a £10,000 win on the aptly named Pension Fund, he handed in his notice the very next day to become an on-course bookmaker.

Asked if there were early signs of Bloom’s future success, Ben doesn’t hesitate: “Absolutely. Tony was a very professional and hard-working chap. I was just a complete idiot and nothing would have stopped me from going to become a racecourse bookie.”

Painful lessons

Ben launched his on-course business with a £10,000 float – but it didn’t last.

“I lost my float within weeks and spent the rest of my 20s suffering, being mocked and learning very hard lessons. It took years off my life with stress, while those who worked for Tony became immensely wealthy. I was a fool.”

His twenties were defined by trial and error. He kept going – falling, standing up again and pushing forward – with a high tolerance for risk.

“When you’re skint, you can play like a lion.”

One person who saw this hunger up close was Gary Woodgate, then behind the counter at the Ladbrokes in Brighton.

“Gary knocked back my team of putter-onners’ bets. I was a professional gambler. It was with this money I built a bookmaking business. My punting paid for my bookmaking mistakes, lessons and growth.”

Ben quickly recognised Gary’s skills complemented his own and, after a lunch discussing the vision, Gary joined him. He would go on to become Ben’s right-hand man.

Building a brand

The pair cut their teeth at Walthamstow dogs, building a reputation and slowly growing a shop business. The early days were tough. As newcomers, they were effectively fresh bait for sharp bettors and had to learn quickly to survive.

The turning point came with the rise of tele-betting – taking bets over the phone. Ben saw the potential early. Bigger punters started to find him and he moved to London to network and chase the action more seriously.

From day one, Star Sports focused on doing the basics right: paying winners promptly, accommodating large bets and building strong, personal relationships with customers. It sounds simple – but in today’s industry, it is rare.

Walk into a Star Sports shop today and you’ll be greeted by staff who know the game – and know their customers. Ask for a bet on the Derby and you won’t get a blank look.

The approach has given Ben the confidence to open shops in the most competitive locations, trusting that good service and well-kept shops – where bigger operators often fall short – will bring business his way.

“Go right amongst the competition. And compete on everything (except price).”

Customer acquisition

Star Sports has carved out a niche at the top end of the market. At Cheltenham and Ascot, they trade seven-figure positions and cater to high-value punters. Ben knows he can outdo the big corporates on-course and in the shops by offering a level of service that their scale simply can’t match. That connection between punter and bookmaker breeds loyalty – and puts rest to the idea that betting shops are a thing of the past.

His approach to acquiring and retaining customers is refreshingly traditional.

“Look somebody in the eye. Shake their hand. Give them your attention. What service do they want? Connect with them. If you can’t find punters in a betting ring and you’re a bookie, I’m afraid you’re in the wrong game”

Ben doesn’t deal in illusion. His edge is built on clarity – of people, of situations, of risk. His guard is never down.

“I like to look at the man. I like to see: How does he behave when things change? I like to break his stride – to see his reactions when plans go awry. If anything is hidden or unclear, I am worried. You must see what you are looking at.

“I have only fallen when hope and greed have got the better of me. A clever gambler will play to your greed to pull you in. He will throw out sprats to catch his mackerel. Stop believing. Start watching and listening.”

What’s next?

Scroll through Ben’s social media and you’ll find a man who is passionate about food, conversation and learning from others.

“I like to eat something different every night, with someone from a different demographic. A balanced diet, both in your tummy and mind, leads to a healthy body and soul.”

It is a philosophy that mirrors his broader view of the game: adapt or be outpaced.

“Gambling is the ultimate Darwinism.”

He’s also a devoted supporter of greyhound racing – and in 2021, he won the GWA Services to Greyhound Racing Award. While he continues to build Star Sports, his success is reflected through a growing property empire, having acquired over £150 million worth of assets across six countries (Source: Star Property).

“All of my money goes into property. One day, cleverer bookies will come along. When that happens – and the wave goes over – I want to have something to show for it.”

Power of the Network

Ben’s story is a reminder of what it takes to succeed in one of the toughest businesses around – where your customers are actively trying to put you out of business. He’s not just a bookmaker, but a sharp, driven entrepreneur.

At Waterhouse VC, we’re fortunate to have individuals like Ben in our network – people who bring deep insight, real-world experience and a willingness to help others navigate the complexities of the industry.

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

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

Since inception in August 2019, Waterhouse VC has achieved a gross total return of +3,133% (annualised at 84%), as at 30 April 2025, assuming the reinvestment of all distributions.

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.

But times are changing and the deals that have been in place for years have come under fire in recent months.  

Critics have long warned that there is too much gambling advertising within the sport, which presents a risk to children watching and engaging with football. In an effort to quieten these claims, Premier League teams agreed on a voluntary ban on front-of-shirt sponsorships in April 2023.  

This will inevitably force teams and operators to pivot away from the traditional sponsorship model and adopt new and innovative brand exposure opportunities during matches. The move comes into force from the end of the 2025-26 Premier League season, in May next year.  

What will the new era of football gambling sponsorships look like?  

Alan Alger, industry sponsorship and PR specialist, expects teams will (and likely already have) inflated the price of their shirt sponsorships ahead of the ban, as gambling companies scramble to maintain that visibility for a final season.  

“The savvy clubs that know this are obviously putting their prices up for next season, knowing that this is their last opportunity. And you would also expect the clubs in the Championship, which are eyeing a return to the Premier League, will all be looking at the chance to have one big payday back in the league,” he tells iGB. 

Alger played a pivotal role in securing and managing Betway’s 2015 principal sponsorship agreement with West Ham United. Reflecting on the 10-year-old partnership, he says it was a “very good deal for Betway”, whose brand appeared on the team’s shirts from the middle of the season, after the team’s former partner went bust.  

“If you’re going to introduce yourself to a new market, one of the best ways is via the most-watched sport,” he says. 

LEDs and sleeve sponsorships still available to gambling operators

But this legacy model is primed for change. Those close to the deals expect the sector will adapt and gambling branding will be just as present in the sport, both via LED advertising boards around the pitch and through novel activations with players and their teams. 

“You might see companies that have a largely global reach start to use player appearances for adverts in countries that don’t have as tight a legislation as we do in the UK,” Alger suggests.  

Currently, the UK prohibits players under the age of 25 from appearing in gambling marketing as this could appeal to an underage audience.  

“I think there will still be immense value in a betting partnership with a football club,” says one legal source active in the gambling sponsorships space.  

“The sleeve is still available, the LEDs are still available and, outside of the UK, using players to promote your brand is still available. It really depends on the structure of the deal, but if it’s a global deal then I think there’s as much value in that. 

“The interesting thing will be how the price of these deals is affected by exclusivity, because with a front-of-shirt deal, you’re paying big money for that, it’s very visible and there’s a lot of exclusivity that you normally get with that.” 

Could gambling sponsorships become more regional?

Some also expect operators and teams may slightly move the goalposts on the kinds of partnerships they form. Outside of front-of-shirt deals, many operators sign on as global betting partners for leading football teams. But in the future, this could become much more region specific, with teams adopting Asian or African betting partners, for example.  

The legal source believes this could open up new exclusivity opportunities for operators. “They might think about doing regional deals, as opposed to a global partner, that provides exclusivity to do multiple LED minutes from different regions,” they add. 

“But it’s very complicated around where you can and can’t serve the advertising. And obviously they’ve got broadcast feeds going out all around the world, so it’s quite an operation for them.” 

Partnering with leagues and rights holders to maximise brand exposure 

Operators have also begun to partner with tournament holders to maximise brand activations and expand their global reach.  

Bet365 announced a landmark betting partnership with the UEFA Champions League in August last year, covering the men’s Champions League, from the 2024-25 season until the 2026-27 campaign. 

As part of the deal, Bet365 maintains exclusivity over stadium branding during Champions League matches. “That was a good move by Bet365, but they’ve got the money to do it,” says Alger.  

“If you can partner up with tournaments and rights holders, as in leagues and cup tournaments, you’ve got a much better chance of having [your brand] spread across lots of different teams,” he tells iGB.  

But the legal source notes global deals, like those with leagues, are riskier from a due diligence perspective. Leagues may have a lower appetite for risk than teams as they are bound by regulation and public perception. 

“[They will] need to do a really thorough analysis of exactly what their rights are and whether there is any potential for either party to commit an offence [under the terms of the deal],” the lawyer adds.

Are white label sponsorships under threat?  

Both the UK government’s Department of Culture, Media and Sport and the Gambling Commission have said white label football sponsorships are under investigation. The model enables non-UK licensed operators to forge sponsorship deals with teams, as long as a white label version of their product, operated by a locally licensed company, is active in the market and meets all gambling regulations.  

“I think everyone thought that was quite a sensible rule, because you have got a brand in the UK that is licensed and you do have a touch point for the club, the fans and everyone else to see,” Alger says of the white label model.  

However, in December, gambling minister Baroness Twycross told an audience at the GambleAware annual conference the government was investigating the white label sponsorship model. This followed news that Curacao-licensed BC Game was largely operating illegally and had been declared bankrupt by a local court for failing to pay out player winnings.  

Nothing has been announced by the DCMS since this mention of the investigation last year.  

BC Game was swiftly stripped of its UK white label licence and its sponsorship deal with Leicester City was thrown into question.  

At the time the football club said the operator was appealing the case, and it had no issues with liquidity.  

Stake remains on Everton’s shirts for now

Then, in February, Stake was stripped of its UK white label licence, amid a Gambling Commission investigation into social media advertising from the operator. Despite no longer operating in the UK market, Stake remains Premier League team Everton’s shirt sponsor, at the time of writing.  

The Everton/Stake deal signed in June 2022 raised eyebrows considering Stake’s cryptocurrency gambling activities globally, although gambling with crypto is not prohibited in the UK. 

The Gambling Commission said it would contact Everton, as well as two other clubs with unlicensed betting sponsors, to warn them of the risks of promoting illegal sites. 

Despite these warnings, the legal source does not foresee a significant change in the white label model in the short term.  

“The change can come from legislation. And currently, the legislation is quite clear that you must have a licence, if you’re doing certain things as a gambling operator in Great Britain. A change in the law is not going to happen easily,” they suggest.  

The other option for changing the model is if either the football or gambling industry champions a change in the system.  

“[But] the only real incentive for [the teams], as they’re turning down money that these people are prepared to pay, is to raise the standard of the sport and make sure there isn’t money coming in from [bad actors].” 

House of Lords approves Football Governance Bill  

Historically, there has not been much regulation around the sport itself in the UK, but last year a bill was established in Parliament to build a regulatory framework that can govern football.  

The Football Governance Bill was initially introduced via the House of Lords in October, with the aim of establishing an independent football regulator to oversee the sport and handle issues such as club licensing.  

Law firm Pinsent Masons said the independent football regulator would oversee the licensing of football clubs in the top five flights in men’s football.  

In a blog post, dated 27 March, the firm said the entity would “ensure the fair distribution of revenue from football broadcasting deals and protect the interests of fans and communities”. 

In the final stages of House of Lords discussions, an amendment to enforce a ban on gambling sponsorships and advertising within the sport was suggested. But this was swiftly vetoed, by a clear majority of 339 to 74. 

The clause was put forward by Liberal Democrat politician Lord Addington in March’s round of amendments. 

“Duty to prevent advertising and sponsorship related to gambling in English football. English football must not promote or engage in advertising or sponsorship related to gambling,” the proposed clause said. 

Lower tier teams would suffer most from gambling sponsorship ban 

But members argued lower tier and non-league teams would suffer financially from the loss of gambling deals.  

Member Baroness Fox of Buckley asked: “Why would we cut off a perfectly legitimate source of funding in the form of lucrative sponsorship, which is what these amendments would do?”  

She also said a ban on gambling sponsorship would create a politically charged regulator, which was not the bill’s intention.

Both Alger and the lawyer are skeptical about whether a full ban will ever come into force.

“We’ve seen bans on branding from other sectors like alcohol and tobacco in sports,” the lawyer says. “But again, it’s usually the sports themselves that say, ‘This no longer feels like the right thing to do.’ There are different views on the health issues associated with gambling.”  

The bill has, at the time of writing, reached the committee stage at the House of Commons.  

For now, it looks like gambling sponsorships are safe from total prohibition. While the model is evolving, and new versions of legacy deals are coming to the forefront, the sector’s bond with English football is too deep-rooted to be totally scrapped.  

Pace points to mature markets like the EU having already taken steps to establish industry standards with regard to responsible and sustainable gambling, as well as how to report data and facilitate movement of information between regulators in the EU. This includes the 2021 data reporting standard ‘EN17531’.

But when it comes to the gambling sector, Pace notes regulations remain largely fragmented and this makes it difficult to adopt standards and practices across the wider industry. He believes the sector can solve that fragmentation by standardising up to 90% of technical requirements.

Global operators face difficulties in adapting to regulations across many markets, particularly in Europe. Pace is campaigning to end that fragmentation.

IGSA was founded in 1998 and brings together industry players from across 20 companies to develops standards and best practices for suppliers, operators and regulators. Members of the organisation include European gaming giants IGT, Merkur, Novomatic and Intralot.

IGSA miming to standardise 90% of technical requirements in gambling sector

“If we focused on getting 85% to 90% standardisation, it would have a tremendous beneficial impact on the industry. Then [regulators] can deal with the differences that exist as they emerge and as they continue to evolve,” Pace says.

“You’re never going to get [full] harmonisation. And I’ve given up on that a long time ago. It’s impossible, the world is so different, yet, I think we could achieve some level of sameness.”

To navigate these differences, IGSA provides regulators with standards across areas such as technical systems and player interfaces, gaming device standards and regulatory reporting interfaces.

Pace says individual markets present unique challenges specific to each country’s culture or governance. But these differences are such a small percentage of the challenges faced and formal structures can help mitigate a majority of the issues faced.

The IGSA communicates, and in some cases partners, with entities such as the International Association of Gaming Regulators, as well as regulators on an individual level to better understand and navigate their needs.

IGSA setting cybersecurity standards

Also at the top of Pace’s priority list is the sector’s protection against cyber threats. He says cybersecurity of gaming systems and online platforms remain a critical challenge for regulators and operators.

Pace tells iGB that cybersecurity audits are not a requirement in many markets. If they do have some checks in place, Pace says they can often be “rudimentary”. He is advocating for more stringent checks and standards to be put in place to better protect the entire technical supply chain.

Cybersecurity concerns have grown within the industry, as a number of high-profile cases rocked operators in the last couple of years. In September 2023, MGM was forced to shut down some of its systems after a number were compromised. The incident cost the operator up to $100 million in EBITDAR impact during the period.

A number of player data breaches have also compromised systems and resulted in player information being leaked on the dark web. In a KPMG webinar hosted in June last year, industry executives warned cyber threats “were a new norm” for the sector. State regulators in the US have been urged to take a more serious stance on technical requirements to ensure the sector is better protected.

Companies should be vetting every part of their supply chain

Some regulators, like Ireland’s recently formed entity have put in place requirements for licensees to adopt measures to protect customer data and the integrity of their gaming systems.

“If you think about cyber resiliency from an IT perspective, a lot of focus is pointed towards micro-segmentation of networks, understanding vulnerability points in terms of routers and other networking components. But they don’t go all the way back to the beginning, where the chip’s made,” Pace tells iGB.

Greater vetting should be applied to the companies providing the chips for land-based gaming machines, says Pace. As well as the facility that installs them on the printed circuit board integrators, and then into gaming machines or operator hardware.

There have been instances in the past where bad actors have infiltrated supply chains to interfere with chips before they have reached their final destination.

Gambling sector should be more aware of cybersecurity risks

Pace acknowledges that companies can’t prevent every possible threat but insists the sector should be better aware of the risks.

“If you are implementing a cyber resiliency scheme, here are some of the things that you ought to consider. That’s really what we’re creating in our cyber resiliency committee,” Pace says.

“A set of best practices to help regulators and regulatory authorities understand this very complex environment and focus them on the things that need to be done.”

Companies and regulators need to move beyond just penetration testing and standard vulnerability assessments, Pace adds.

They should look at what the onboarding process is, what the bring your own device policy is, what the contingency plan is when an attack occurs. Companies should also ensure regular audits are taking place.

Pace warns regulators despite being better prepared, they will never be able to fully prevent threat actors from causing damage.

“It’s impossible to prevent. The best that you can do is to try and improve on what you’re already doing. This is like building a better mousetrap. The bad actors will always try and find the weak link, you need to make it as difficult as possible for them to find that weakness. That’s all that you can do,” Pace states.

IGSA calls for greater transparency

IGSA also calls on industry stakeholders for more transparency across the sector.

“None of this ‘that casino got hacked’ and then six months later they say, ‘oh, yeah we got hacked’. There has to be a level of responsibility and a level of transparency to be able to share that happened [in real time]. Because, quite frankly, the bad actors talk to each other, the good actors sometimes don’t,” Pace warns.

There is a whole market of information exchange that cybersecurity threat actors engage in on a daily basis, where they sell or share system vulnerabilities or stolen credentials.

“If we are too ashamed because we got hacked and we don’t disclose the details, then we’re only making it worse for ourselves as an industry,” Pace notes.

IGSA AI guidelines and blocking fragmentation

Pace previously told iGB IGSA is preparing an ethical AI standards committee (AIC) to standardise AI technologies in the gambling sector. The working group is aiming to create a framework that demarcates how AI standards can be set out, as well as how regulators should approach AI.

“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 in March.

“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?’”

IGSA is expected to publish eight standards or “best practices” for AI deployment within the gambling sector this year.

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.

It first signed an online sportsbook partnership with Kambi in 2022 – a deal it extended last October as it prepared to transition from a DFS operator to a full-fledged sports betting site.

It is a strategy that has been hugely successful in the US for the two market leaders, FanDuel and DraftKings. Both evolved from DFS-focused operations to sports betting and igaming to the tune of a combined $10.6 billion (£8.2 billion/€9.6 billion) in FY2024 revenue.

The pair have impressively utilised the huge customer base they gained from their DFS days and  transitioned them into sports betting with the companies.

But Augusto says while Rei do Pitaco has followed much of the DraftKings and FanDuel playbook, it is not a case of simply “copy and pasting” the DFS-to-sports betting model in Brazil.

“We looked a lot at FanDuel and DraftKings,” Augusto tells iGB. “Other companies tried to build what FanDuel and DraftKings did in Brazil, but they failed.

“So we understood the behaviour of the fantasy fans and we decided to build a product from scratch and based on Brazilians.”

Augusto warns the advantage isn’t quite as large for Rei do Pitaco as it was FanDuel and DraftKings, with the two US companies having transitioned to a newly legal market after PASPA restrictions were struck down in 2018. Brazil had a grey market between 2018 and its 1 January launch.

“The advantage for DraftKings and FanDuel in the US was huge,” Augusto continues. “For us, not that much. But still, we acquired a lot of customers, a huge user base that gives us a really great advantage in the regulated market.”

Product and localisation the key

The differentiator of localisation is one that Rei do Pitaco  is leaning into, fitting into its data-driven approach led from the front by Augusto.

Augusto’s “product, product, product” strategy is one he hopes will end in Rei do Pitaco being seen as a second screen for bettors watching sports in Brazil, helping the company to achieve its targets.

“If we really are the best product in the market, I think market share is just a matter of time,” Augusto explains. “And that’s where we focus.”

Rei do Pitaco’s DFS origins means it already has a steer on Brazilian sports bettors’ preferences and, although igaming is still an option, it is sports that will ultimately drive its growth going forward.

“For us, the main thing is sports betting,” Augusto says. “It’s the product that we put the most effort into. It’s the product we allocate the most resources to.

“The sports betting side, it’s a product that’s a lot more complex to build. And that’s what we like, right? We like complex things to build.”

Outsmart, not outspend the mantra

Rei do Pitaco is entering the sports betting market as a local hero company alongside international giants, including the likes of Betsson and MGM.

Rei do Pitaco is a way away yet from competing financially with those whales, although its understanding of that fact is where one of the company’s mantras is derived.

“One thing we always say internally is we’re going to outsmart competitors, not outspend them,” Augusto says. “You have the likes of MGM joining Brazil and spending millions of dollars. We’re humble enough to say we’re never going to outspend those guys.”

Rei do Pitaco’s chief legal officer, Rafael Marchetti Marcondes, concurs with Augusto and believes that thanks to a data-focused approach to marketing, the company can still achieve impressive growth despite its current limitation on resources..

“This is quite a mantra for us,” Marchetti Marcondes adds. “Because we don’t have the same budget like big international companies, so we have to think outside the box to identify opportunities that nobody has identified.

“Every penny that we spend is monitored. We analyse the payback. Everything is on metrics, it’s on data and this is a way that we work and we do believe that maybe, even with less financial resources, we can expand our business.”

No fear over back taxes

The measured approach extends to Rei do Pitaco’s decision not to operate in the grey market prior to regulation.

That means it experienced a smooth licensing process, as well as avoided the concerns of other companies that could yet have to pay retrospective taxes for their activities during the grey market.

“We were the third company to apply, but I believe we were the first company to complete all the documents,” Augusto says. “So for us, we prepared ourselves for this moment.”

On avoiding back taxes, Augusto replies: “That’s something we are not worried about at all, because we’ve been paying taxes in Brazil since we founded the company in 2019.

“For other companies, yes, it’s a major thing. But for us, we’re fine.”

Building for the future

Marchetti Marcondes reveals the early signs for Rei do Pitaco are positive, with the initial figures matching the company’s expectations.

“The numbers are escalating quite well, especially when we compare with the fantasy market,” Marchetti Marcondes declares. “We are now serving in a much bigger market. So I think that for us, the expectations and the numbers are quite good.”

While Rei do Pitaco has taken inspiration from the success of FanDuel and DraftKings, the company believes its tailored approach to the Brazilian market will further enhance its capabilities, despite the strength of its competitors.

Its strong user base from its DFS days, Augusto’s commitment to product and the company’s mantra of outsmarting – not outspending – look set to position Rei do Pitaco as a formidable entrant to the Brazil betting market.

However, land-based gambling is facing similar delays to those that maligned Brazil’s journey to online regulation.

Despite the Brazil Justice and Citizenship Committee approving PL 2,234/2022 to legalise land-based casinos, bingo, jogo do bicho and betting on horse racing in June last year, the senate vote was postponed on numerous occasions.

Yet, the industry remains largely confident the land-based bill will finally be voted upon and approved this year, especially after the election of pro-gambling Davi Alcolumbre as senate president in February.

Alex Pariente, corporate senior vice president of casino and hotel operations at Hard Rock International, believes Alcolumbre’s appointment will help to finally get land-based legalisation over the line.

“Alcolumbre is not only a very experienced senator but is also very knowledgeable about the importance of legalising land-based entertainment,” Pariente explains. “So there’s good dialogue, there’s good collaboration. I think we have good sentiment towards advancing with this.”

Ari Celia, director at Brazil payments company Pay4Fun, isn’t so sure.

“The rumours are the government, the senate, is considering voting the bill that is sitting there in this first semester,” Celia says. “It’s politics. It may take longer. It may happen. We don’t know.”

Why is this attempt at land-based legalisation different?

Gambling was outlawed in Brazil in 1946. Although bingo was briefly legalised around the turn of the century, multiple attempts to pass land-based legislation have since failed.

With licensed online gambling now a reality, the industry believes brick-and-mortar betting should join digital wagering in the regulated sphere.

Hugo Baungartner, chief commercial officer of local operator Aposta Ganha, has been in the industry for 28 years and has observed numerous attempts to legalise land-based betting in Brazil come and go. However, he believes online regulation has brought a change in mindset in Brazil, one that will ultimately see land-based legalisation arrive in 2025.

“I think land-based regulation will come this year, because gaming is a reality in Brazil, number one,” Baungartner says.

“Number two, the mindset has changed since 2010, or 2000. People are different, people understand. People travel the world and they see everything. So I think the online regulation also will help politicians understand that the government has the powerful tools to control everything.”

The truth is, even without regulation, land-based gambling is happening in Brazil with jogo do bicho, a game of chance with a name that translates to “animal game”, hugely popular despite being banned in federal law since 1946.

“Jogo do bicho is over a hundred years old, so it would be very hypocritical to say that this is something that just erupted in the last decade or something like that,” Pariente continues. “It’s always better to regulate the industry than to just know the industry exists.

“There are no protections to the population because we don’t know who’s gambling, we have no control over currency movements or AML. We don’t even know who the customers are, but we know there’s an activity over there that is happening and the government cannot get a grip on it.”

Boosting tourism in Brazil

Beyond the enhanced player protection that regulation provides, land-based gambling could serve as a major boost for Brazil’s tourism industry.

Pariente notes “stagnation” in tourism in Brazil, which receives around six million tourists a year. In comparison, the Dominican Republic regularly breaks the 10 million barrier, despite its land mass fitting into Brazil approximately 175 times.

Even with the heavy investment stemming from major sporting events in Brazil over the past 11 years, including the football World Cup in 2014 and the Olympic Games in 2016, Pariente maintains the country is struggling to “even move the needle” in regards to foreign visitation.

Pariente says Hard Rock could help to move that tourism needle in Brazil, where it already has a number of cafes, as well as create jobs to further foster economic growth in the country.

“We are very keen on presenting an integrated resort as a bigger impact on the economy, because of the magnitude of the investment,” Pariente says.

“Building an integrated resort that could be a destination for tourists from the region and internationally could be very useful to pursue the government goal, which is to increase tourism. By the same token, with the job creation related to the sizeable investment of an integrated resort, you’re talking in the billions of dollars.”

Celia agrees land-based legalisation would provide Brazil’s economy, and particularly its tourism sector, with a welcome boost. “There are huge opportunities,” Celia says. “Brazil has many places like Rio de Janeiro, the rainforest up north, the beautiful beaches on the northeast of Brazil, they all can be improved with gaming.

“It’s a big economy thing and Brazil right now needs that. So I personally believe that it’s going to be a high-level discussion on tourism as well.”

The online effect

Will the discourse about online gaming boost land-based hopes? The second half of 2024 for Brazil’s soon-to-be regulated online sector was plagued by pressure from the public and politicians.

Such was the furore, a Supreme Federal Court hearing was held in November to determine whether the online betting laws were unconstitutional.

That decision is expected in the first half of this year, although few in the industry feel there’s a realistic chance of regulation being scrapped.

Brazil is somewhat of an outlier in regulating online betting before its land-based counterpart, with Pariente describing it as “building the roof before the foundations”. However, the negative discourse around the online sector and the regulation that came with it has quieted since the turn of the year. That appears to make land-based legalisation likely to happen although, in Brazil, nothing is certain.

Celia is confident, however, declaring: “To be very honest, I’m sick of this story, because it’s not true. Everybody knows there’s a small percentage, less than one per cent of the population, that’s subject to excessive gambling. But everybody else, they have the money, they know how to stop, they know how much they can bet.

“The good news is, since 1 January when the regulated market started, I talked to a lot of people. I have my feelings that this pressure has been lower and lower and I hope in three months, six months, it will disappear, because it doesn’t make sense. There’s no point in this kind of prejudice on gambling, in my opinion.”

Land-based potential for Brazil

The long delay between Brazil’s national congress first approving online betting legislation in 2018 and the final green light from the chamber of deputies in December 2023 led to a proliferation of betting sites as companies operated in the grey market. Player preferences have shifted towards online, so there is a question over just how profitable legal land-based gambling would be.

However, Pariente believes omnichannel provides an ideal solution to counter cannibalisation and any fears over not being able to entice Brazilians out of their homes to gamble.

“We have a lot of land-based operations in the US and what we’ve seen is that we were able to find an omnichannel solution for a guest,” Pariente says. “We find that customers didn’t stop coming to our land-based casinos. By offering this type of a mobile solution, we were able to keep the customers within the brand.

“I don’t believe one activity will have a damaging impact on the other one. I think it’s a win-win for the company, and operators will experience that in Brazil as well.”

Even within brick-and-mortar betting, preferences have changed since bingo was banned earlier this century.

“Brazil, originally, back in the late 1990s, always was a bingo country because, basically, we had a law for bingo, not for slots,” Baungartner explains. “It’s been 20 years since then; people change. The people that used to play bingo, they are now 50, 60, 70 years old. So everything changed.

“Will bingo be successful? I still think that there is a process and, from my personal perspective, I think bingo will be successful. And bingo halls only with bingo will be nice so people can also have a different game than slots, because for Brazilians at the moment, slots are more complicated, as they don’t understand too much.”

Land-based timeline

Baungartner and Pariente both believe the legalisation of land-based betting in Brazil will occur this year, with the country’s minister of tourism Celso Sabino previously predicting the senate vote will happen in H1.

Once the senate has approved the bill, it will be up to President Luiz Inácio Lula da Silva to sign it into law, with indications that shouldn’t be a problem.

Hard Rock will be one of those keeping a close eye on the specific details of the regulation and Pariente feels the company is ready to make its move.

“The brand is already prepared to take steps very quickly, provided the laws that we have and the regulations we have are fair,” Pariente adds. “Having a solid legal framework, very sound regulation and the feasibility on the project will be key, so we can deliver a project that will be in the country for decades to come.”

Pariente says any Hard Rock entry into Brazil will be conducted carefully to ensure compliance and ultimately aid Brazil with the key goals of land-based legislation, such as boosting the tourism industry and adding to the country’s economic coffers.

“From a company perspective, we continue to explore our possibilities in the market, to activate opportunities on the land-based side through an integrated resort,” Pariente says. “We continue exploring different opportunities on the digital aspect.

“But overall, we want to make sure that we do it in full compliance with all the rules and regulations of the country and we’re respectful of the process we’re going through right now.”

Cautious optimism over land-based legalisation

The general industry consensus is that legal land-based gambling will indeed return to Brazil this year, thanks to the new pro-gambling senate president and online regulation showing promising early signs in quelling fears over problem betting.

The momentum of gambling in the country is certainly growing and, although Pariente’s “roof before the foundations” analogy is a reminder that nothing is straightforward in Brazil, it appears the disappointment of previous failed attempts to legalise brick-and-mortar betting will be a thing of the past.

Pariente is anxious to see that process expedited, especially to avoid the problems with the grey market caused by the political delays seen on the online side.

“All these grey area (issues) that we experienced on the digital end are something that we could probably avoid, going into this evaluation of the land-based law,” Pariente notes. “We’ve seen the benefits of shortening the process. On top of that, we are going to leverage all the tough discussions we already had when regulating the digital world. And so I have to believe the processes will be a lot quicker.”

Brazil could benefit significantly from an economic standpoint, with the potential for a much-needed tourism boost and enhanced job creation undeniable, especially with giants such as Hard Rock preparing to make their move.

Utilising the lessons learned from online regulation, 2025 could indeed be the year Brazil finally welcomes a fully legalised land-based gambling industry, one that cements the country as a global betting powerhouse in both the digital and brick-and-mortar spheres.

Last year in Maryland, Live! Casino owner Cordish Companies testified in front of lawmakers that online gambling would be bad for brick-and-mortar operators, particularly impacting state tax revenues and employment. John Pappas, on behalf of the iDevelopment and Economic Association (iDEA) trade body, argued that Pennsylvania’s revenue report showed no such negative effect.

Entain and MGM Resorts JV BetMGM has been at the forefront of leveraging the latter’s rich casino guest database and brand presence in Las Vegas. As a combination of Entain’s online tech stack and MGM’s longstanding casino expertise, BetMGM is in a unique position to self-examine the topic of cannibalisation.

BetMGM single wallet proving omnichannel approach is successful

BetMGM claims to have been the first operator to launch an omnichannel betting wallet in Nevada ahead of last year’s NFL season, meaning bettors can access their wallet and account seamlessly both online and in a retail sportsbook.

Speaking to analysts during MGM Resorts’ 2024 earnings call in February, CEO Bill Hornbuckle said the development had helped drive a 60% increase in Nevada-acquired first-time depositors versus the prior NFL season. Clearly, BetMGM is benefitting from extensive efforts to cross-sell.

BetMGM CEO Adam Greenblatt says there has been a level of fearmongering by some in the retail sector on the issue of cannibalisation.

“The concerns around retail to digital cannibalisation, we believe, are totally overstated by the retail incumbents,” Greenblatt told iGB in a March interview.

“Cannibalisation scaremongering” exaggerates threat

The BetMGM chief notes a level of distortion, caused by the pandemic, led to lower attendance at casino venues, but longer-term trends have been “pretty consistent”. Igaming, where introduced, has expanded the tax bases in states that also have retail facilities, Greenblatt says.

“If you look at the underlying trajectory of the retail facilities in states where igaming has been introduced, [across] the really long-term trends, it’s been pretty much business as usual.

“The point here is, I think the scaremongering around cannibalisation is greater than the actual [threat],” says Greenblatt.

He understands why retail – and even some omnichannel – operators are pointing to the impact of cannibalisation, but notes MGM Resorts’ vision for the future is a combination of retail and digital. Hornbuckle has been vocal about his desire to bridge the gap between digital and retail casino innovation.

Hornbuckle noted previously that there is an experiential evolution taking place and the gambling industry is now in that phase.

“We went through the restaurant evolution, with world-class chefs coming, and then we went through the retail evolution, building out world-class shopping experiences, and now we’re in the entertainment revolution,” Hornbuckle said.

To foster this “revolution”, MGM Resorts/BetMGM has been promoting rewards programmes that see players earn credits across both channels. These can unlock invites to concerts and sporting events or simply just extended stays at MGM on-premise sites.

Greenblatt’s relocation and building an expat community

Greenblatt kicked off his gambling career in the UK as a corporate development director at Ladbrokes Coral in London from 2011 to 2018. He joined GVC upon the group’s acquisition of Ladbrokes Coral in December 2017 in a deal valued at £4 billion.

In October 2018, at the dawn of the betting bubble in the US, Greenblatt was among the first European gaming expats to relocate to the US, as he took the helm of the newly formed BetMGM JV.

In May 2018 a landmark Supreme Court ruling overturned the Professional and Amateur Sports Protection Act of 1992, which had effectively outlawed sports betting in nearly all US states. The long-awaited ruling ushered in a new era. European incumbents flocked to the US market, sending key strategic executives to New York and New Jersey to leverage the opportunity. This created a thriving expat community between New York City and gaming hubs in New Jersey.

Reflecting on a challenging entry into the US

Reflecting on that time, Greenblatt’s longtime friend and industry peer, ex-888 Holdings head of US Yaniv Sherman, said his friendship with Greenblatt was rekindled when the two relocated to the east coast to lead their respective companies’ entrance into the US.

“We’ve stayed in contact on and off, but when PASPA was repealed and we both moved to the US, that connection was rekindled. We arrived at different locations and very different set-ups. I was setting up a new market for what was a UK-focused plc and singular brand.

“Adam was stepping into the complicated role of a JV CEO, balancing between two major shareholders with dominant execs on both sides. We both had very limited US resources and generally our organisation’s ‘nerve centres’ were stretched through Las Vegas, Gibraltar, Israel and India,” Sherman tells iGB.

“He is one of a few executives that grew on the corporate development side and was able to transition to an operational role,” he adds. “Doing it with two shareholders that are not always aligned, to put it mildly, while building and growing a US igaming powerhouse is nothing short of incredible.”

US market presents greater opportunities

Speaking on the differences between his experiences of the US and UK markets, Greenblatt says while the UK is a mature market, the opportunities in the US are much greater.

“I will say in terms of the size of the pool, the depth of the US market is just staggering,” Greenblatt says. “The US just dwarfs everything else in a way that surprised me. You know, relative to London, I was like, ‘Whoa!’ I thought I knew what to expect, but that hasn’t been the case. It’s really orders of magnitude more significant.”

Retaining premium players and moving out of an acquisition phase

With no new gaming states immediately on the horizon, the group is looking to its current player base to determine how it can increase their value.

In its full-year results, BetMGM reported monthly users were up 55% year-on-year in Q4, while total monthly active users for the year hit 946,000, up 14% on the previous year. Both Greenblatt and Hornbuckle are extremely bullish on BetMGM’s turnaround and its efforts to improve product to increase player value.

During the JV’s earnings call in February, Greenblatt cautioned its player growth rate would likely slow in 2025 as it shifts from player acquisition mode to improving player retention. BetMGM is looking towards how it can best retain its premium players. Like other betting operators, it has leaned hard on live betting during the NFL and ongoing March Madness. 

BetMGM product is “twice as fast” as it was

Hornbuckle talked up the operator’s improvement efforts during a fireside chat hosted by JP Morgan in March. He insisted the firm had successfully “pulled back on marketing” and really pumped the product, including single-game parlay, omnichannel and its single wallet in Nevada. “We’re not the fastest, but we’re twice as fast as we were,” Hornbuckle added.

Greenblatt tells iGB part of this ongoing strategy is to give players a product experience that makes them feel recognised and rewarded. He noted that the approach includes premium experiences at MGM properties.

“We’re trying to [create] as close and connected an experience as possible,” he says.

These experiences include Super Bowl parties at MGM properties where BetMGM players are invited and looked after. Similar events are being hosted throughout March Madness.

Consumer confidence remains high for gaming

The US markets have recently seen some turmoil due to a nascent trade war, causing the potential for a weakened consumer base across all markets.

But Greenblatt says the gaming sector historically has not been impacted by waning consumer confidence. Despite widespread consumer dissatisfaction across the UK, the sector is not seeing any indication of consumer weakness.

“The demand side continues to be very robust. We’re seeing it both in bet count and handle, deposit patterns and deposit value. We’re not seeing any indication within bet size, like average bet size – it’s business as usual, frankly,” says Greenblatt.

For the year ended 31 December 2024, BetMGM posted group revenue of $2.1 billion (£1.69 billion/€2.03 billion), up 7% year-on-year. However, the group reported a negative EBITDA of $244 million, which marked a drop worse than its EBITDA losses of $62 million the previous year.

BetMGM committed to positive EBITDA forecast in 2025, cost-cutting under way

The BetMGM CEO stated that the group is committed to its full-year 2025 positive EBITDA target of $240 million. To achieve this target, the group has embarked on a cost-saving journey. As part of this, BetMGM decided to cut staff at its New Jersey headquarters in February by letting 83 people go.

“Yes, we did some cost cutting with a focus on efficiency,” BetMGM said in a statement sent to iGB. “After carefully reviewing our priorities for 2025, BetMGM made the difficult decision to reduce headcount across some divisions of the organisation.”

Similar cost-saving measures have been carried out at MGM Resorts. Hornbuckle noted in March various fees for hotel and resort goers had increased to plug a hole. BetMGM JV partner Entain has similarly sought to improve efficiencies and consolidate various departments to reduce expenses and return the company to growth over the last couple of years.

Looking forward, Greenblatt tells iGB that he is feeling “really good” about the BetMGM business’ underlying KPIs.

“We have a blueprint that we’re executing against and it’s working. So, unless something comes up which destabilises that, I feel pretty good about delivering against our commitments this year,” says Greenblatt.

He sees BetMGM as an educator for regulators and lawmakers in the US. It aims to help them understand the sector’s complex model and why blanket gambling tax increases are not the answer to increasing state revenues. As with many in the industry, the company says it wants to create and foster an environment that is “supportive” for regulated operators, as it believes that this is in the consumer’s and taxpayer’s best interests.

Is BetMGM expecting new igaming states in 2025?

BetMGM launched its sportsbook in two new US jurisdictions in 2024: North Carolina and Washington DC. However, with no likely new igaming licences on the horizon, the operator has been focusing on cutting costs and improving its product in the states it already operates in.

While Greenblatt tells iGB that he does not expect any new gaming states this year, he believes “winds are blowing” that indicate a change in momentum, ushering in a new era for the sector. The BetMGM leader notes that certain pressures and issues are becoming more visible, such as state level budget deficits, futures contracts, and the impact of sweepstakes.

“It feels like we’re moving towards like a big change in momentum, positively. I think what we’re going to see is the determination that gambling, sports wagering, futures contracts are illegal, except as regulated by states. This is a states’ rights item,” Greenblatt says.

He is critical of the rise of unlicensed betting-adjacent offerings like predictive markets.

Some states have already taken a hardline position. In March, the Maryland Lottery and Gaming Control Agency targeted unregulated sweepstakes casinos in the state. It sent a cease-and-desist letter to the operator Virtual Gaming Worlds, owner of sweepstakes sites Chumba Casino and LuckyLand Slots. Predictive markets providers Kalshi and Robinhood were also presented with cease-and-desist letters in Nevada and New Jersey in March.

Greenblatt says the journey ahead is one of heightened licensing and enforcement.

“There is a framework for this. Get a licence and you’re free to participate. I think that’s the only path forward. And then the question is, well, how aggressive will enforcement be, and what tools do they have, and what is their appetite?” asks Greenblatt.

Prime Minister Andrej Plenković has pledged he will tighten the nation’s laws on gambling in order to alleviate growing concerns over gambling addiction in Croatia.

The presentation cites data from the Faculty of Education and Rehabilitation, which suggests 72.9% of high school students have gambled at least once, with 12.9% meeting the criteria for high-risk gambling problems.

The planned changes focus heavily on tackling “aggressive” advertising, which the government believes is currently fuelling problem gambling in Croatia.

Government proposals include a ban on advertising between 6am and 11pm on the internet, radio and other channels and prohibiting use of famous people to market gambling. Ads must not be displayed to those under the legal gambling age of 18.

Other changes would include the introduction of a self-exclusion scheme and the prohibition of self-service betting terminals (SSBTs) in public venues, such as restaurants and cafes.

However, the tax system for operators will be tweaked to the system below:

Licence fees will also be heavily increased for both online and land-based casinos, as well as brick-and-mortar betting shops;

Why is Croatia reforming its gambling laws?

Speaking to iGB, Marko Tomic, partner at local law firm Siketić & Tomić, explains these reforms will mark the first changes to the Croatian gambling laws in over a decade.

The proposals come as Croatian gambling is in good health, as ex-managing director of MaxBet Lazar Miucin points to Entain’s 2022 acquisition of local operator SuperSport as an example of international giants taking interest in the market.

So why are the regulatory changes happening now? Tomic explains the reasoning is twofold.

The first is to protect minors from underage betting, with Tomic revealing political pressure has been growing, pushing for stronger regulation of the gambling sector.

The second reason, in Tomic’s view, is a desire to protect legal companies in Croatia from the black market.

“The second leg is of course the illegal operators and restricting them as much as possible in the market,” Tomic explains.

“[While], of course, protecting the tax revenues and the revenues of the regulated operators who are paying quite high fees for their licences here. This I think is the main focus.”

How could operators be impacted?

Both Tomic and Miucin predict the changes will come into force prior to the targeted 1 January 2026 date.

But while the true consequences for operators remain to be seen, Miucin anticipates the reforms could lead to consolidation as smaller operators look for a way to remain in the market.

“I’m expecting some M&A to happen because small companies, maybe they will not see any advantage of working alone,” Miucin continues. “There are one or two companies that are small for the market and are going to be extremely influenced by the law changes.”

However, Tomic disagrees, arguing the alterations to aspects such as tax rates aren’t enough to have operators reconsidering their presence in Croatia.

“I don’t think it would change anything, because operators here have invested a lot of money and resources,” Tomic says. “They are employing a lot of people, so of course it’s going to be a burden on them.

“I think the industry in Croatia is employing 7,500 people currently, so it is a significant number, but I don’t think it will impact them [to exit the market], since the market itself is growing each year.”

Protection from the black market

As Tomic explains, one of the government’s primary motivations for changes is the shared desire with operators to clamp down on the black market.

This is an objective for which an effective remedy has not yet been found in Croatia, with IP blocking failing to properly restrict illegal operators, despite efforts from the ministry of finance.

The government is switching its focus to financial companies, Tomic notes.

“The focus is going to be on the payment service providers. The tax authority will aim to basically prohibit any type of suspicious transaction, especially to these illegal providers in Croatia.

“Since the IP blockade was introduced, now currently there are over 900 websites that are blocked by the government order. But I think the main tool they are introducing is the control over the payments.”

While operators are facing licence fee increases of up to 50%, Miucin feels licensed companies will be more inclined to adhere to regulations and stay on the legal side of the Croatian gambling sector, under the new framework.

“It’s bad for everyone, but it’s OK if the rules are the same for everyone,” Miucin explains. “Let’s close down all the black markets.

“That’s the thing with regulation. ‘You want to charge me 20% extra tax? Not a problem. Let’s work together to block [black market operators]. Then I’m going to pay you 20% tax’.”

Could Croatian gambling law updates stunt growth?

The increased fees and restrictions on advertising will no doubt lead to increased expectations from operators concerning the regulator’s blocking of the black market.

The Croatian gambling sector has enjoyed solid growth in recent years, but the new law represents a significant milestone, which could mark a new era of enhanced protection for players, according to the government.

Croatia is prepared to join a number of European countries in tightening gambling laws, as the Netherlands also faces increased tax rates and the UK grapples with heightened protection measures.

But many stakeholders have argued in the past that tax hikes and tightened restrictions on advertising and player protection are causing black markets to thrive, as players seek out products with less friction and fewer requirements.

“When big IR operators realise the potential of Clark, if they step in the Clark market, if I’m not ready to compete with them, then all of the things that I have achieved will go down the drain. That’s why I have to push myself to the limit to expand and expand and expand,” the chairman and CEO of Hann Philippines says.

Han’s drive created Hann Resort, raising the bar with Clark’s first five-star properties – a third is under development – amid top shelf cuisine, retail and gaming.

In Clark Freeport, a special economic zone including portions of Central Luzon’s Pampanga and Tarlac provinces, Han is also developing multi-billion dollar Hann Reserve. This far more ambitious lavish living concept features a half-dozen luxury hotel brands, residences, golf, eco-tourism and education with the first phase due for completion next year. True to form, Han is expanding both trailblazing projects.

Second option, first mover

“As soon as you step into a business, there are basically two options. One, you just lay back, you see what other people are doing and then just try to follow them. If you choose this option, then sooner or later, your competitor will eat into your market and you die out. But you don’t need to have a lot of stress and you don’t need to take risks like a first mover.

“But the other option is if you want to be the first mover. It could be risky, in a sense that nobody has done this thing and you’re going to be the first one. You don’t know whether the market will accept this thing. That is the second option. Most times, I pick the second option.”

Han took that second option with Clark Marriott Hotel, the centrepiece of Hann Resort. “They didn’t believe the Clark market was mature enough to have this five-star hotel brand. But I insisted on the Marriott brand. At the time, I believed there was demand, but there was no proper facility that people can enjoy. When I opened this Marriott, they realised there is a nice place to enjoy in Clark instead of going to Manila,” Han says, noting that within a year, the hotel reached 80% occupancy.  

Following number one

Hann’s success hasn’t gone unnoticed. “If someone moves ahead and it works, other people realise, ‘It’s nice, so why don’t we do the same?’” Han says. “If you don’t follow number one, then you’ll die out. So they have to follow. Other developers are really trying to come up with something like better facilities in terms of quality and service.”

Indeed, in January, Belle Corp announced it is seeking an integrated resort site in Clark. Belle, owner of Melco-operated City of Dreams Manila, is the gaming arm of SM Group, controlled by heirs of Henry Sy, the richest family in the Philippines.

Clark catalyst

“It’s amazing to observe the state of energy and economic vibrancy to be found in Clark today following decades of recovering from the impact of the Mount Pinatubo eruption and departure of US forces in the early 1990s,” Marelene Phillips, who grew up in Pampanga in the 1960s and 1970s and has returned to visit family regularly while running a regional communications consultancy in Singapore since 2000, says.

Clark provides the special sauce spicing Han’s ambitions. Its countryside has for decades been a popular getaway for urban dwellers, similar to the Catskill Mountains north of New York City. Resorts and casinos have been part of the leisure landscape, along with fresh air and open spaces in the shadow of the massive US Clark Air Force base.

In 1991, amid volcanic ash from Pinatubo and a Philippine government decision not to renew the lease, US forces left the base that began as cavalry outpost Fort Stotsenburg in 1903.

The Philippine Air Force took over the military facilities and the government created a special economic zone of some 35,400 hectares (87,438 acres or 136.7 square miles) to promote foreign investment and create jobs, especially in export industries, overseen by the Bases Conversion and Development Authority.

Infrastructure improvements

Infrastructure projects to support those ambitions followed. Clark International Airport opened in 2004 and has undergone expansion over the past two decades, growing passenger capacity to 11 million. Traffic peaked at 4 million in 2019, rebounding to 2 million in 2023 and 2.4 million last year, 65% on international flights, consistent with long term trends. The airport, call letters CRK, had 19,221 flights last year, 47% domestic and 53% international.

When Han first saw CRK he noted: “I believed that someday, somehow the Philippine government has to find a way to utilise this Clark airport because it doesn’t have enough money to build a new airport for Manila.”

Indeed, Han’s instinct is proving correct as a high speed rail link between Clark and the capital region’s Ninoy Aquino International Airport rattles toward completion in 2027. The line will cut travel time between NAIA and CRK to less than one hour, facilitating flight connections and general travel to Clark. A new highway from Manila to Baguio will reduce road trip time to Clark.

Clark airport authorities are investing incrementally toward construction of a second runway, aiming to make CRK a major Asia-Pacific logistics centre as well as enhancing its role as a national gateway.

K-Vacay

For Hann Resorts, Clark airport provides a vital pipeline to guests from South Korea. “As far as headcount is concerned, we’re having 60% to 65% local and then the rest, 35% to 40%, is international,” Han says, with Koreans comprising more than 90% of international visitors.

Han, in his mid-50s, was born in Korea and got his start in the family construction firm that branched into development. Han’s knowledge of the Korean market, longstanding ties between Korea and the Philippines as the closest tropical vacation spot, a place to learn English and a business destination, plus easy access via CRK, make Hann Resorts a potent magnet for Korean travellers.

About 40% percent of Clark’s international flights serve Korea, and CRK is just a 10 minute drive to Hann Resorts. With a less crowded arrival experience than Manila, guests can be at their hotels within a half hour of touchdown. Hann Reserve will be similarly convenient to the airport.

Hann Philippines traces its roots to the Widus Hotel and Casino, opened in 2006. It grew into Hann Resorts with the addition of Clark Marriott and, in 2022, the Philippines’ first Swiss Hotel. The 11-hectare complex also features upmarket shopping at 8th Avenue and more than a dozen F&B choices that make it a culinary landmark in Clark. The gaming floor has 199 tables, 960 slots and 40 electronic gaming terminals.

Top of the game

Han claims Hann Resorts has grown its Clark gaming revenue share to “45%-46%, so we’re pretty dominant in the market.” Based on the latest available Pagcor reports, Clark GGR for the first three quarters of last year was PHP20.6 billion (US$350.7 million), which would put Hann Resorts’ GGR around PHP9.9 billion, extrapolating to PHP13 billion for the full year. Pagcor confirms that Hann Resorts has the largest GGR of any casino outside Metro Manila.

Clark’s January through September 2024 GGR rose 1.4% compared with 2023 as the entire Philippine market takes a breather from breakneck post-pandemic growth and domestic online gaming explodes.

Clark figures include a 17% decline in the third quarter that a senior Hann executive tells iGB resulted from a drop in junket play at other casinos that did not impact Hann. The executive says Hann Resorts’ GGR grew 9% in the first three quarters and it needs additional gaming capacity.

“Right now casino expansion is under construction,” Han says. “We’re going to inject more or less 500 slots and around 60 to 80 tables.” The 22,113 sqm, two-storey addition includes both mass and VIP gaming space. However the majority of added floor area will be dedicated to F&B with an emphasis on Korean, Chinese and Japanese cuisine. The first level is slated to open late this year with the upper floor due for completion in early 2026.

Breaking the billion barrier

Han says the US$250 million expansion will push total spending on Hann Resorts beyond US$1 billion. And there’s still more to come: Han told iGB the Intercontinental Hotel announced in July for Hann Reserve will instead be built at Hann Resorts.

The project, “a $600 million-ish investment”, is in the design phase, according to Han, with construction planned to begin in the middle of this year for a 2029 opening.

“I am investing back all of the money that I can generate from operations, hotel and casino operations, everything, 100%,” Han says. “Plus I’m having pretty strong support from local banks, unlike before. When I started the business around 18 years ago, it was very, very difficult to talk to local banks, but now they have seen the potential of the Clark area and the potential of my project. So they’re very supportive.”

In November, Philippine lenders Asia United Bank and Union Bank signed a PHP6 billion (US$103 million) deal to support the Hann Resorts expansion.

Han is also “modelling a stock market listing” in the Philippines. Other Philippine casino companies are publicly listed, most notably Enrique Razon’s Bloomberry Resorts that operates Solaire in Entertainment City and opened US$1 billion Solaire North in Quezon City last year.

Equity financing would help pay for Hann Reserve, the US$4 billion luxury mixed use project 12 kilometres from Hann Resorts. “Right now, I’m focusing on Hann Reserve,” Han says. “What I enjoy is building something different from somebody else.”

Going natural

Han acknowledges the success of themed resorts in Macau but sees a key limitation: “All of the attractions they can provide are inside the building. So I was thinking, in the Clark area we are surrounded by very nice nature.” He’s using that natural setting to differentiate Hann Reserve, with a particular emphasis on eco-tourism and golf.

“That’s why there will be three golf courses designed by Nicklaus Design, [Korean golf star] KJ Choi and Nick Faldo, and there will be a lot of outdoor attractions. All of the things in the development that we’re doing are nature driven.” Hann Reserve also strives for maximum sustainability through green architecture, efficient development in harmony with the natural landscape, appropriate local technologies and waste management.

In November, Hann broke ground on a 10-hectare public park combining eco-tourism, outdoor sports, fitness and Philippine folklore to be completed in three phases from late next year as part of Hann Reserve. On the golf side, Hann secured a Philippine exclusive to create a Professional Golfers Association of America (PGA) player development facility and it has high hopes of securing golf tour events.

“More than just a brand”

Overall, Hann Reserve will encompass 450 hectares, although Han tells iGB the project will ultimately reach 600 hectares. Phase one, due to open in 2027, includes a Banyan Tree hotel and residences along with the Nicklaus golf course amid mountainous terrain.

Future phases will include accommodations from Accor’s SO, Sofitel and Emblems brands and Marriott’s Westin and Luxury Collection. To further bolster Hann Reserve’s residential appeal, Han plans to add a “prestigious international school” along with a commercial centre.

Han’s ethos that more is better extends to the second N added to his company names. “The name Hann is more than just a brand,” he says. “It represents my vision of elevated experiences, luxury and innovation. The addition of the second N was a deliberate decision to create a distinct and impactful identity, one that reflects strength, balance and sophistication. It embodies our commitment to excellence and sets the foundation for world class hospitality and entertainment.”

Clark and Philippine gaming and tourism undoubtedly say “Amenn” to that.

Muhammad Cohen is a former US diplomat and current iGB Asia editor at large. He has covered the casino business in Asia since 2006, most recently for Forbes, and wrote Hong Kong On Air, a novel set during the 1997 handover about TV news, love, betrayal, high finance and cheap lingerie.

The market has grown significantly since then, attracting international operators such as RushBet and Betano. In 2023 H2 Gambling Capital forecast the nation’s gross gambling revenue (GGR) would surpass $2 billion by 2027. 

However, a huge disruption to the otherwise well-operated market appeared in September last year when the Colombia government announced it would assess proposals to introduce a 19% VAT on online gambling. 

Government passes gambling VAT via “exceptional measure” 

Although the initial attempt was quashed in December, in January this year the Colombian government implemented the tax on a temporary basis, with the 19% rate to run for an initial 90-day period. 

The government was able to do this thanks to an exceptional measure in Article 213 of Colombia’s Political Constitution.  

Speaking to iGB Carrasco, a partner at Bogota law firm Asensi Abogados, says this measure is typically used during severe public order disturbances that “threaten institutional stability, state security or citizen coexistence” and require solutions beyond the government’s normal powers. 

Yet, despite the so-called state of emergency, Carrasco tells iGB it is still unclear whether the new VAT on gambling Colombia relates to player deposits or turnover.  

After meeting with the Colombian finance minister Diego Guevara, Carrasco hopes the government now understands that it makes more sense to tax deposits than turnover. 

Carrasco says Article 420 of Colombia’s tax code should prevent the government from taxing turnover as it states: “The taxable base of the sales tax on games of chance and luck will be constituted by the value of the bet.” 

“With what is written in the law, [the tax] should be on deposits, because there are a lot of provisions and regulations that [suggest] that VAT on gambling should be over deposits,” Carrasco explains. 

Will the emergency measure be extended?  

However additional uncertainty lies in the “temporary” nature of the tax’s implementation, as according to Carrasco, the state of emergency’s initial 90-day timespan can be extended twice for a total of 180 additional days. 

However, he says the second extension will require approval from the senate, a process Carrasco doesn’t expect to be very “smooth”. 

The tax is under permanent review by the congress, but Carrasco has doubts over whether it will remain a temporary measure. 

“We know that regarding taxes nothing is more permanent than something that comes in temporarily,” he tells iGB.  

“I have seen this so many times in different jurisdictions and they say, ‘Oh no, this is a tax for a state of emergency’ and then suddenly you get through the tax code, and you’re done. It is permanent.”  

Why is the tax necessary? 

Alongside other taxes such as additional contributions from the oil and gas sectors, the Colombian government is hoping to raise COP1 trillion (£195.6 million/€234.3 million/$242 million) from the state of emergency tax.  

For Carrasco, the Colombian government’s actions reflect the country’s overall approach to politics today. 

President Gustavo Francisco Petro Urrego has been labelled Colombia’s first left-wing president and his tenure has been far from an easy ride with a distinct lack of political support from congress throughout his tenure.  

It is likely the gambling VAT could face the same fate as other policies that have been shut down by congress in Colombia. 

“This government is quite a mess, it’s not organised,” Carrasco says. “It’s just a general mess in most of the sectors of the economy, oil and gas, transportation, gambling in this case, even banking. They want to try to do very structural changes in the government, but without a real expert in the process.” 

Gambling regulator Coljuegos is proving unhelpful to the sector, Carrasco says, despite being a government institution, failing to represent the industry’s views on the matter of VAT.  

Players could turn to the black market  

The new VAT could be a huge blow to the gambling sector in Colombia, with the industry providing big benefits to the nation’s healthcare system.  

Coljuegos president Marco Emilio Hincapié previously stated the system would receive around COP419.5 billion in contributions from gambling licence fees across 2024.   

While Petro believes the new tax will add to that contribution, Carrasco warns it could in fact have the reverse effect, as players are driven to the black market.  

“Players will use VPNs and then play in many of those very well-known brands of the black market,” Carrasco adds. 

“We were expecting the regulator to say, ‘Hey, this will jeopardise our income, it will jeopardise the expected collection of gaming duties that are aiming to go to the health system.’ But they have not made any statement.” 

Another challenge for operators is that in order to collect the tax in the first place, they will have to amend their gaming systems, which then need to be recertified. If they fail to recertify, they risk breaching the country’s gambling laws. 

Therefore, Carrasco believes it’s crucial that a transition period is put in place for operators to adapt to the new tax. 

“It’s kind of like pushing the operators into the fence,” Carrasco says. “You need to collect these taxes, but you [don’t have the capability]. But if you don’t pay taxes, then you commit a crime. If you start collecting taxes after amending the system without approval of the regulator, then you’re breaching the law.” 

Is there hope? 

The new tax has sent shockwaves through the Colombian gambling industry and there’s real concern over its impact not only on gambling, but the sector’s contributions to the health sector. 

There could still be light at the end of the tunnel, however. In Colombia, the regulator is appointed by the president. With the current government’s term ending next year, change could be afoot. 

“We have the first left-wing government in our history and they are not doing great,” Carrasco concludes.  

“The expectation is that there will be a change in terms of political management. So probably we can expect that this regulator won’t last more than a year.” 

You’re welcome.  

A serial entrepreneur with a list of startups – in gambling and music – Eccles is clearly a diligent, hard-working, self-motivated success story.  

But here’s what you maybe don’t know. Nigel Eccles love dinos, military operations, ancient history, his dogs and his family.  

He also likes to run, mostly for the mental break it gives him – because “building start-ups is pretty stressful” – although he has done a couple of marathons.  

He also threw himself a 50th birthday with a 1920s theme, complete with games and magic. Think flapper dresses, gin Rickeys and levitation.  

So, he also likes… fun.  

How could he not? After all, this is a man who leveraged daily fantasy leagues and ultimately digital sports betting to build a fortune. He spent nine years building and innovating at FanDuel, before selling it a 58.7% stake to Flutter in 2018 for $589 million. In 2020, Flutter upped its stake in FanDuel to 95% and paid an additional $4.175 billion, according to Forbes. 

Since the 2018 sale, he’s tried his hand at a music startup, a sports group chat platform, fantasy sports platform Draftea in Mexico and the decentralised sports betting protocol BetDex.  

And now here we are. 

Pigs.  

End game is innovation 

Eccles laughs out loud when he talks about his newest venture, BetHog. The crypto casino isn’t legal in the UK or the US, but for the moment, that matters not. Because Eccles isn’t trying to make a quick buck. Just like with his foray into the sports betting world, he’s trying to build an innovative, game-changing product.  

With pigs.  

“We love gambling and we think it’s very fun and social offline,” Eccles said of himself and BetHog partners Rob Jones and Ryan Anderson. “But online, it isn’t. So, we said, ‘Let’s build a brand that accentuates the fun.’” 

Enter the pigs.  

BetHog debuted on 13 November 2024 in markets around the world from Canada (not Ontario) to New Zealand, Ireland to Asia, Latin America to Africa. It has six original titles and a crazy pig as the main character.  

BetHog raised $6 million in seed funding. The main investor is 6th Man Ventures (6MV) with contributions from angel investors Chris Grove and Josh Hannah, Advancit Capital, Bullpen Capital, Karatage and Will Ventures. 

Bacon, ham and hot dogs  

So, about the pigs.  

BetHog has six original games, including Hogger and Hodl!. The company’s main character is The Hog, an upright cartoon pig complete with tusks and stylish wardrobe. In the Bring Home That Bacon posts, The Hog is wearing a purple sports jacket and tie and has slicked-back purple hair. In another post, The Hog is casually dressed in a white button-down and mirrored sunglasses. In yet another, The Hog is wearing a chef’s hat and apron and is wielding a spatula while cooking… yep, bacon.  

Fun, right? 

The company’s X account features The Hog posts, game updates, tournament announcements and top-line sports posts. For example, on 8 December, the top post was of the first 12-team College Football Playoff bracket released in the US that day. Scattered throughout the timeline are American football posts.  

There are also some videos of Hogger and Hodl!, both featuring a streamer (a person playing the game while also interacting with others watching or playing). Eccles is also in the videos and he and the streamer are whupping and shouting as the streamer directs The Hog to cross the street in Hogger (and yes, it’s a play on the popular game Frogger).  

As The Hog makes his way across the street, tiny piglets – other players who have bet on whether The Hog will make it – follow. Unfortunately, The Hog and some of the piglets don’t make it, after being “squished” by a bus. When that happens, hot dogs and bacon and ham litter the street.  

Hodl! is a little less graphic and silly. But there is still much chuckling and chortling. It is a crash game built around the volatility of trading-meme coins. It is available in a traditional format and player versus player. Other titles are Thermonuclear Boars, in which players uncover rewards while dodging mines; Liar’s Dice, a bluffing, player versus player game; and Schrodinger’s Hog, a prediction dice game.  

BetHog is built on the blockchain platform Solana and the SOL is the main supporting token for player versus player games. BetHog also accepts Bitcoin, Ethereum and USDT. 

Let’s spice up the industry 

Pigs aside, when Eccles and his partners surveyed the gambling landscape, they were… uninspired.  

“We thought a lot of the games were really dumb and boring,” he said.  

They also thought it was interesting – or maybe astounding – that three decades after the first online casinos debuted in Antigua and Barbuda, the games being played haven’t changed, even though how digital casinos recruit customers has.  

And to date, no company has really figured out how to make online gambling the raucous, chummy, often emotionally charged social scene it is in person.  

“One of the things that has become really popular in social casinos is streaming, but the games haven’t really changed,” Eccles said. “We thought that was kind of weird… what if we think of streamers as customers, how would that change games? 

“We wanted to have a brand that makes people smile. The social part of it is something that people have thought a lot about, but we don’t think anyone has really captured that.”  

That is the first part of the idea. The second is the focus on cryptocurrency. Not a legal way to fund accounts in the UK or most US states, the digital currency has found utility in many business spaces. It is a decentralised currency built on blockchain. Cryptocurrency is owned by the consumer as opposed to by a government or bank.  

Eccles said he and his partners had experience with crypto through another startup and that the currency removes much of the friction operators struggle with when using more traditional funding methods. And it allows players to use their accounts virtually anywhere crypto is accepted without reregistering or funding an account.  

Crypto users, gamblers both embrace risk 

The marriage of gambling and crypto is, Eccles said, kind of a no-brainer.  

Serge Kassardjian and Mike Dudas of 6MV, a crypto investment company, agree. Kassardjian calls BetHog a “generational opportunity” that he and Dudas had been waiting for.  

“Crypto users have an appetite for risk and so do gamblers,” Kassardjian says. “When we looked at BetHog, Nigel is kind of the preeminent leader. When he was at FanDuel, he created fantasy and sports betting, then he created mobile – a whole new way to bet.” 

Kassardjian and Eccles crossed paths when Kassardjian was working at Google and Eccles was at FanDuel. “The product was so differentiated and innovative,” Kassardjian says of FanDuel.  He has described Eccles as “an incredible leader, a visionary”.  

Combine Eccles’ history for innovation and the desire to create a crypto gambling product and it was a fairly easy decision for Kassardjian and Dudas to invest. The pitch included videos of BetHog games as well as a demo.  

Grove is another investor whose experience with Eccles goes back to his FanDuel days.  

“I’ve always found him to be thoughtful and a generous guy,” Grove says. “I also think he has a good blend of an urge to innovate and practical experience in the gambling industry. As an investor, I often see founders with too much of one or the other.” 

Eccles agrees. That’s why, for now anyway, BetHog isn’t pushing to gain customers who are new to crypto. The platform features non-traditional games and non-traditional currency. Or, put another way, everything about BetHog is cutting edge. Trying to market to customers who are new to crypto would, in Eccles’ opinion, be too disconcerting.  

“I think today all of our players are already in crypto, so we don’t really worry about that much,” Eccles said. “So our original titles are really the thing that is new. Otherwise, if you are bringing too many things, it just confuses the player.” 

That said, Grove thinks the “next generation of online gamblers is interested in a fundamentally different game set.” And he believes that part of what could differentiate future innovation is crypto. 

“What I see in crypto is as much about culture as it is about utility,” he says. “Maybe even more so. Building a brand and a platform that resonates with crypto users offers a way to tap into that culture and community.” 

Who is the crypto casino customer? 

It’s a community that Eccles thinks will be massive, but that he is admittedly still learning about. It’s clear that those who use crypto and are into gambling are risk takers. Just like gamblers. But what’s not clear is their gender or age or location. Eccles said “crypto skews very heavily male and casino skews more female, so we don’t really know if our customers are male or female.”  

At the time of writing, BetHog had only been live for a month, so the company was early in the process of collecting data. The idea was to “swing the doors open and wait for people to show up”. 

Learning who BetHog will serve will, of course, be part of the adventure.  

In the meantime, Eccles and his partners are comfortable in the idea that crypto is the next big thing, so their job is to craft more fun, exciting, out-of-the-box games. The goal is to have a dozen original titles by this time next year. 

“I think that in five years, there won’t be ‘crypto’ casinos, because everyone betting online will be using crypto,” Eccles said.  

Another part – much further down the road – will be figuring out how to get into the UK and US. It’s not an immediate priority, but Eccles said that he thought it would be “weird” if crypto casino innovation happens completely outside of the UK and US, both of which have been on the forefront of online casino and wagering evolution. 

When the time comes, bringing BetHog to two of the inventive and expansive gambling markets in the world will be about education and engaging with regulators. But for now, BetHog will focus on building the brand and the product. 

Building a community  

Circling back to the pigs, what differentiates BetHog from a traditional online casino game isn’t just the crazy graphics and silliness. It’s the ability to participate. BetHog players can join the fun, and there are also player versus player options. 

With Flick, which combined betting and streaming, Eccles and his partners discovered “the power of social”. They came to understand that the transition from spectator to participant makes a player “very sticky”. With Flick, the struggle was to figure out “the core piece of content”. 

So, pigs.  

“Our twist is that you can bet on the streamer,” Eccles says. That’s a game changer because in Hogger “the streamer suddenly has all of this pressure when people are following him.” 

In the Hodl! game, players can be even more actively involved and can play against each other in a tournament. Eccles says they’re already witnessing player behaviour that indicates not just definitive player engagement, but also a change in tactics as the game goes on.  

“People play more aggressively if they are losing, they take more risks,” Eccles says. “And they play more conservatively if they are winning.” 

Those reactions mirror human nature. Think about what drives an American football coach to decide to go for it on fourth-and-one or for an investor to double down on a position or cash out. 

All of these things involve risk – and risk management. At the heart of crypto and casino is a taste for risk. For BetHog’s founders, there also has to be some fun. 

And pigs. Oink! 

However Rootz does have an ace up its sleeve, with a proprietary technology stack, and it is committed to increasing regulated revenue. However as more and more markets ratchet up controls on the industry, this goal is increasingly difficult to achieve.

“Some regulation is very geared towards the big guys and are not friendly towards tier two and below,” Brown explains.

“It’s about choosing the right market and working in a handful of markets where your EBIT can be positive,” he told PlayAGS’ Ebling.

More iGB@ICE Studio fireside chats, showcases and interviews can be accessed on the iGB Youtube. The ICE studio showcased industry thought leaders, giving them a space to discuss how they are navigating various nuances and challenges within their specific roles and sub-sectors.

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.

The legal betting market in Brazil launched with 14 companies initially receiving full licences, as well as 52 operators that were granted provisional authorisation. 

Provisional licences were granted to companies who are facing setbacks with their applications, such as certification delays. The extensive requirements relating to certification, as well as the huge number of applications submitted to the Secretariat of Prizes and Bets (SPA), have led to backlogs for the certifiers tasked with carrying out the assessments. 

Provisional licences will allow recipient companies to remain active for 30 days initially, although that timespan can be extended by another 30 days should operators receive support from certifying entities clarifying more time is needed to conduct full certification. 

One company granted a provisional licence is Stake, a predominantly crypto operator which has set its sights on regulated markets like Brazil as its next step. The company has also entered the neighbouring LatAm nations of Colombia and Peru recently.

Stake appointed Thomas Carvalhaes as its Brazil country manager in November 2024 to lead its charge into the market. Although the operator is still only provisionally authorised, Carvalhaes is expecting a full licence in the very near future. 

“In terms of the provisional licence, yes, we have a few documents on which we’re working, mainly around certifications,” Carvalhaes tells iGB.  

“It’s literally a matter of time. I’m sure that in less than a month, if not before the end of this month, we should be able to get the confirmed final licence.” 

How will first-mover advantage manifest itself in Brazil? 

A sports-loving country with a population exceeding 200 million people, Brazil’s legalisation of online gambling was always going to attract many international operators looking to get in on the action. 

But with that interest comes competition, making it even more important for operators to formalise their activities and localise their offering to the Brazil population. 

Being in that vanguard is crucial to operators such as Stake and Carvalhaes is aware of his company’s need to capitalise. 

“I think it’s truly important, because the market has shifted enormously,” Carvalhaes continues. We’re talking about a gigantic market. It is for a reason, of course, that all the major operators are here and pushing very strong.  

“Being at the front when it comes to acquiring a licence and being granted the permission to continue operating here, I think it’s a major competitive advantage.”

Approval a mark of credibility for KTO

KTO, meanwhile, was one of the 14 companies to receive a full licence on 1 January, allowing it to go live alongside brands such as BetMGM and Rei do Pitaco. 

For a company with plans to achieve a 10% market share in Brazil, achieving full licence approval shows KTO means business, according to the company’s founder and CEO Andreas Bardun. 

“It’s like a stamp of approval on how disciplined we are as an organisation,” Bardun says of gaining one of the first licences. “I think it gives trust to the customer base as well, seeing that KTO is a very serious company that is in the forefront because internally we have this goal to be the leading brand in Brazil, meaning showing a better way of how to do things. And I think this really showed that. 

“We always said when we entered Brazil, we were doing this for the long run. Everyone knows for sure that KTO is going to be here to stay and be very important for the Brazilian igaming market for the future.” 

Licensing process in Brazil a learning process

Brazil’s road to legal gambling has been far from straightforward, with five years passing between the national congress first approving online betting legislation in November 2018 and the chamber of deputies’ final green light for regulations in December 2023. 

Even the licensing process has been a challenge for operators, with Bardun highlighting issues in regard to communication with the SPA and the gambling application portal, although he does express sympathy for the regulator which he says is still finding its feet. 

“I’ll tell you that it was actually very stressful and there are many reasons for that,” Bardun says of the application process. “The regulator was also new in doing this, so they kind of moved the goalposts. Every time we thought we were ready and had done everything [required], they were asking for more documents or new requirements at the last minute that made us scramble. 

“It was very stressful, I would say. It wasn’t the most organised licensing process. But I do have some understanding because this is something completely new for the Brazilian government. And to be fair to them, they were working all Christmas and New Year’s Eve to help all the operators.”

Faith in the regulation 

Carvalhaes also empathises with the regulator, which he said took inspiration from more mature markets such as the UK to combine best regulatory practices from across the globe. 

“Look, I think it was a mutual learning [process],” Carvalhaes adds. “Of course, no regulation and no licensing process has been developed perfectly from the top. There hasn’t been one single jurisdiction that has had the process [working seamlessly] and well put together from day zero.  

“I think for governments, remember these guys are not gambling specialists, we are. So it’s very important that operators and associations are able to [use] common sense and find information exchanging [opportunities] to educate the government.  

“I can say I believe Brazil has a very good, decent, fair and regulated market, both for the operators and for the customers as well,” he insists.  

Big plans for KTO

With KTO fully licensed and Stake very much on its way, the companies’ full attentions can now turn to their pursuit of success in the hugely lucrative Brazil market. 

Betano has made waves with its sponsorship-first approach in Brazil, while the presence of other international giants such as Bet365 will further add to the market’s competitiveness.  

Bardun is not fazed by the size of KTO’s competitors and is confident the company will take a top spot.  

“I have always believed that KTO will be a major player in Brazil,” Bardun declares. “I want KTO to be among the top three brands. That’s where we need to be.” 

Stake pushing for excellence

Stake is also targeting a big slice of the market’s pie. And Carvalhaes believes a strong start is needed if the operator is to achieve its objectives. 

“In terms of market share, this year we’re really pushing and we want to be positioned at least in the top 10,” Carvalhaes says. “I think we have what it takes in terms of product, knowledge, people and background, to be in the top five. 

“In five years’ time in Brazil, if things continue the way they’re going, if we continue making the right choices when it comes to sponsorships and ambassadors and responsible gambling, and we continue being compliant to the regulator, I think we do have what it takes to be the top gambling and sports betting operator in Brazil. I feel very confident in saying this. Let’s be as ambitious as that,” he concludes. 

Perhaps the hottest story in gambling, Brazil’s legal market launch is certainly at the forefront of many operators’ minds as they battle to be at the sector’s summit. Bardun believes “the race is on” and, for early licensees such as Stake and KTO, they’re looking to shoot out of the blocks and set the standard for others to follow in what is sure to be a fiercely competitive market. 

One such operator was Flutter which invested an initial 37.2% interest in daily fantasy provider FanDuel in 2018 for $4.18 billion, before increasing its stake to 95% in December 2020.  

Looking to tap into Brazil’s equally tempting betting market, Flutter in September agreed to acquire an initial 56% stake in local operator Betnacional’s parent NSX Group for $350 million.  

The group is excited about the Brazil betting opportunity and has told shareholders it will continue to acquire local brands within its key market as part of its “local hero” brand portfolio.   

Analysts are extremely bullish on Flutter – Macquarie’s Chad Beynon in December predicted the group’s online market share in Brazil could grow by 150% in 2030 to 25%. This would likely put it at the summit of what is expected to be a hugely competitive market. 

Macquarie’s analysis shows the company has created ~$200 of incremental per share value for investors thanks to nine acquisitions since 2019. Alongside its Flutter Edge technology stack, the NYSE-listed group and its M&A work could reach a global market share of ~20%, according to Macquarie.  

The sudden rise in M&A activity in Brazil is hardly unexpected, as local expertise and products are hugely valuable in foreign markets. In May, Adam Patterson, an economist for the UK’s consul in Brazil, pointed to high regulatory costs as a driver for M&A in Brazil, while gaming advisory Ficom Leisure has highlighted access to local expertise and technological advancements as key benefits of entering the market via M&A.  

Gaining that local foothold through M&A is a key factor in Brazil as by law operators must have an on-the-ground representative to support their licence. While some are opening up their own offices across the country, acquiring already established operations could prove cheaper and easier to run.  

One M&A advisory source tells iGB that Flutter was unhappy about running its South American business out of an office in Portugal. Acquiring NSX Group has given them access to operations in Brazil and experts in the market.  

Ficom predicts three main categories are eyeing positions in the Brazilian market. These include European giants such as Entain and Betsson, as well as Asian companies that are either black market operators looking to reinvest in regulated markets or listed businesses aiming for international development. 

A cautious approach to entering Brazil’s betting space  

Then there’s the third cluster; North American brands looking to expand into Brazil as part of their international growth strategy and gain a foothold in a market that may mirror the US in some ways. 

However, the M&A advisor believes some of the US incumbents may be slow to enter the Brazilian market. DraftKings is one example, as it appears to have no immediate desire to move into Brazil.  

During its Q2 earnings call, CEO Jason Robins said there were no plans to enter the region organically or via M&A, although if the operator did it would be through M&A. 

“I’ve spent a lot of time talking to DraftKings and Fanatics and they have said, ‘we want to be [in Brazil] but do we need to be there for the opening? We’d like to know who’s going to be successful, rather than assuming that someone’s already been successful [in the grey market],’” the source tells iGB.  

It’s likely many have learned from their experiences in the US market and choose to take a cautious approach, after witnessing this year’s exodus of operators from the US. 

“I think you’ll see probably more M&A in Q2 and Q3 of next year. The North Americans will get their cheque books out and pay for certainty rather than gamble on uncertainty,” they add.  

Can the media partnership model work in Brazil? 

One US giant that has wasted no time in securing a position in Brazil is MGM Resorts International. In August the group entered into a joint venture with media giant Grupo Globo to launch its BetMGM brand in the country and benefit from the media group’s vast reach.  

Grupo Globo is the largest media group in Latin America, boasting a consumer network of around 70 million daily users across TV, digital, radio and print media. 

The deal reopens an interesting conversation around media partnerships with betting operators in Brazil, as the trend seemingly fell flat in the US.  

The Flutter-operated Fox Bet closed its doors in July 2023 after four years in operation, while Penn Entertainment relaunched its Barstool Sportsbook as ESPN Bet after selling its Barstool stake back to its founder Dave Portnoy in August 2023. Then there’s MaximBet, which barely got off the ground at all.  

In both of these instances, performance fell flat. Industry stakeholders have since argued that the media partnership model is not a sure-fire route to success, as consumers of sports media likely already have betting brands they are satisfied with.  

However, Sky Bet is revered in the UK, and many have attempted to recreate its hugely successful model. “It’s an interesting one,” says Andreas Bardun, founder and CEO of local Brazil betting brand KTO.  

“As always it comes down to execution. There’s probably a lot more situations where these kinds of partnerships have failed. If they can nail it, if they can be agile enough, they will be a really strong competitor in Brazil,” he says of MGM’s partnership with Grupo Globo.  

But Bardun acknowledges that often collaboration between two major corporations can be stifled by bureaucracy and negotiations. This appeared to be a factor in Fox Bet’s downfall. Flutter and Fox initiated a lengthy arbitration case over the media giant’s option to acquire a larger stake in the betting company when the former acquired the Stars Group. 

Public trust is crucial 

Bardun expects more deals to come in Brazil’s early days although he believes KTO will be among the market’s “big boys” as the company is targeting 10% market share in Brazil. 

“There will be a lot of partnerships in Brazil, a lot of big pushes moving forward and we would like to be among those.” 

Some have suggested KTO could be a prime target for future M&A in Brazil as it has built a decent foothold in the country through local and regional sponsorships.  

“KTO is one of the few [local operators] that a listed gaming company could buy [when considering] KYC and AML and all the other lovely anagrams,” the source says.  

Udo Seckelmann, head of gambling and crypto at Brazilian law firm Bichara e Motto Advogados, believes media partnerships can help enhance brand awareness and provide a high chance for success. 

Seckelmann says Grupo Globo’s long and rich history in Brazil could provide consumers with a strong connection to the BetMGM brand.  

“If we understand that these media companies have been around forever in Brazil, when people see that this brand is connected with one betting partner, I think this strengthens the brand and consumers may feel safer betting on these brands [over] others they’ve never heard of,” he notes.  

For Seckelmann, it also comes down to trust, which he believes is culturally more important for bettors in Brazil than in the likes of the UK and the US. 

This is especially important when considering the pressure Brazil’s online gambling sector has come under of late. A two-day hearing at the Supreme Federal Court (STF) in November sought to determine whether the betting laws in Brazil are unconstitutional following weeks of political backlash against betting. The outcome of this hearing will be announced in Q1 2025.  

This concern stems from a number of reports in the summer which suggested consumers could be spending more than they can afford on betting.  

This negative view of betting was made worse by the long delay between legalisation being approved to regulations being formally released this year. Many have argued this period massively drove up the proliferation of illegal sites.  

Trust in the legal market is therefore crucial for the sector to succeed and avoid further political pushback. “We cannot trust everybody and every brand,” admits Seckelmann. 

“I think if Globo and other media brands are coming to the sector and saying ‘okay, we’ve been here with you for the past 50 years, so you can trust us’, [this will be a differentiator for MGM].” 

The land-based opportunity 

It’s not only online where operators are looking to M&A as a means of entering Brazil, with land-based betting also offering intriguing possibilities. 

Although the senate vote to formally approve land-based gambling has been pushed back several times to 2025, it is still expected to go through.  

This provides an opportunity for the likes of Hard Rock International, which plans to enter both the land-based and online markets in Brazil. 

Alex Pariente, corporate senior vice president of casino and hotel operations at Hard Rock International, told iGB in September the group would likely move into the market via M&A.  

“It could be a joint venture, but it definitely will be a partnership of any kind because that’s a model the company has been pursuing in the past,” Pariente said.  

“We’re actively looking, we are following the process. I think it’s a bit early, but I think that’s very likely the way it will happen.” 

Without a crystal ball it is ultimately impossible to predict how the Brazilian betting market will turn out. But the emergence of similar jurisdictions like the US can give analysts an idea of the trends that have worked.  

It is likely that Flutter will gain an early foothold in the market, particularly with the support of its financial and tech firepower. Brazil could follow the UK and US and market share could be split between two or three top players.  

“It’s too soon to say who’s going to be successful,” the M&A advisor admits. “I think some of the niche guys who specialise in a particular area or particular demographic have got a good chance. But if you try to be all things to all people, you’re going to get absolutely flattened by Flutter and Betano.”

Betano was the first to apply for a licence back in May, with the company enjoying early brand awareness advantages due to its sponsorship-heavy strategy.

Making Betano visible across Latin America

Betano sponsored the Copa América football tournament over the summer, while it also sponsors the top-flight league in Brazil, as well as a number of clubs.

Dimarakis believes this has been crucial to Betano becoming front and centre in the Brazilian betting industry, telling iGB: “Sponsorships with top sports leagues and clubs are central to Betano’s strategy for building brand awareness and fostering deep connections with local audiences across Latin America.

“Major tournaments like Copa América offer continent-wide visibility, positioning us as a premium brand while generating strong emotional engagement as fans rally behind their national teams.”

It’s having an effect, too. In September, an OpenBet white paper using research from H2 Gambling Capital revealed Betano was leading the way with a 23% share of Brazil’s betting market.

However, Betano is taking a careful approach with its sponsorships to ensure it successfully carries out its corporate social responsibility (CSR) duties.

“We are selective about our partners, choosing only respected brands that align with our values for mutually beneficial relationships,” Dimarakis adds. “Beyond visibility, our sponsorships also support the sports ecosystem’s growth through CSR initiatives, helping strengthen communities and ensure long-term sustainability for the industry.”

Localisation vital for Betano in Brazil

Alongside sponsorship, Betano is also looking to localisation as a means of tapping into the immense potential of the betting market in Brazil.

It is set to be a hugely competitive market with international players such as Betano and Flutter joining local companies such as KTO and Aposta Ganha.

Therefore, competitive advantages will be crucial and Betano views fostering connections with Brazilians as one method of getting ahead.

“Betano’s success in Brazil comes from a deeply localised strategy that reflects Brazilian culture, sports passion and community values,” Dimarakis says.

“We also collaborate with local influencers and sponsor iconic clubs like Clube Atlético Mineiro, creating a strong emotional bond with fans. Our partnerships extend beyond sports, supporting communities through CSR initiatives.”

Dimarakis highlighted a number of initiatives, including working with Atlético Mineiro during ‘Pink October’ to raise breast cancer awareness, as well as its ‘Juntos em Campo’ programme with the Brazilian Football Confederation (CBF) to promote gender equality in sports.

“Betano has earned strong brand recognition in Brazil, becoming a top-of-mind choice for bettors,” Dimarakis explains. “We’ve built a deep connection with the market through strategic partnerships, local initiatives and a dedicated team based in São Paulo.

“This on-the-ground presence allows us to adapt quickly and align our offerings with Brazilian preferences, ensuring a personalised and locally relevant experience.”

Excitement for launch builds, but overregulation fears remain

The latter stages of 2024 for the Brazilian betting industry have been blighted by rising fears over gambling’s impact on the social and financial health of the population.

A ban on betting using social welfare looks to be coming, while advertising restrictions have already been adopted with the aim of protecting minors.

Brazil’s potential is clear, although Dimarakis warns the market may struggle to reach it if regulations become too restrictive.

“Brazil’s incoming gambling regulation signals significant industry growth,” Dimarakis explains. “With rapid economic development, the market holds immense potential for brands that prioritise responsible gaming and regulatory compliance.

“Finding a balanced regulatory framework will be critical. Overregulation could stifle growth, while supportive policies can create a sustainable, thriving market. By working closely with regulators, operators can ensure a fair, transparent and player-focused gambling environment.”

Most Influential Women is certainly a labour of love and an effort that will continue for many years to come at iGB. Here are the final three Most Influential Women 2024 winners:

Lois Bright  

Director of Africa & ME at The Conexus Group; co-founder of Initiate International; founder of Women in Gaming Africa

“When you’ve worked hard with your head down for a long time and the recognition comes you just feel a sense of elation,” says Lois Bright. And it’s well deserved. Bright is the driving force behind Women in Gaming Africa. 

It started off as an idea when she was flying out of South Africa for a sabbatical, she says. Born as a LinkedIn group sharing motivational quotes, it has snowballed into a 500-strong WhatsApp community and hosts a series of in-person events across the continent this year. Bright now plans to build out mentorship, leadership and learning programmes to further African women in the industry in 2025. 

Originally from the UK, Bright has lived in Africa since 2008. She joined what was then just Pentasia during a year in the UK in 2011. New to gaming, she says learning from founders Rob Dowling and Bruce Gamble was invaluable, but ultimately she opted to return to Africa, co-founding Initiate International, alongside Andrew Wicks. 

“I took the biggest risk of my life with the lowest salary I had ever earned,” Bright recalls. “It was basically a startup. I was coming in to build something up. It was a step into the unknown and obviously the first few years were hard graft, trying to make a name for ourselves, breaking down doors.” 

“But a lot of the gaming industry globally originally came from South Africa, such as the likes of Derivco and Microgaming, so I knew it was going to be a market that took off, although it took a lot of perseverance.” 

The next phase for Women in Gaming Africa

That growth created a new generation of industry executives and through Women in Gaming Africa, Bright is making sure a diverse mix of talent emerges. “It’s marrying passion with purpose,” she says, but she wants to take it further in 2025. 

“One thing I’d love Women in Gaming Africa to do is to have more funding to run really big drives to bring more people into gaming,” she says. “And to make it an industry that’s inclusive and safe for women to come into.

“We do see a lot of people leaving the industry in Africa, so we want to show that it’s a good sector for growth, a good sector for women and a place where women can progress quickly.” 

Next year, she hopes to be looking back on a series of major advances, whether that’s scholarships to send female African executives to the University of Nevada, Las Vegas, or bursaries and grants for these people to attend trade shows. “I want to give a platform to as many underprivileged women as we can,” she says. 

“We see a lot of people leaving the industry in Africa, so we want to show that it’s a good sector for growth and for women to progress quickly” 

Lois Bright 

Heidi McNeil Staudenmaier 

Partner, Snell & Wilmer 

The trophy cabinet of Heidi McNeil Staudenmaier may be stacked with acknowledgements of her work representing tribes, tribal entities and businesses who engage with them, but that doesn’t stop the high-flying attorney from continuing to push boundaries in gaming law and championing greater diversity in the industry. 

Staudenmaier has spent nearly 40 years carving a path for women in the sector. As a partner at Snell & Wilmer since 1985, she was pivotal in creating the firm’s nationally and internationally recognised gaming law practice. 

Her influence is far-reaching, representing tribes, vendors and sportsbook operators across the US and her work has garnered accolades from The Best Lawyers in America (six-time Gaming Lawyer of the Year), Chambers Global and Southwest Super Lawyers. 

Staudenmaier has also broken barriers in leadership, serving as the first and only female president of the International Masters of Gaming Law (IMGL). 

“The gaming business has historically been driven by men,” she says. But now, “women [are] achieving the C-suite, becoming CEOs and holding important roles across the industry.”  

Among her career highlights, Staudenmaier played a crucial role in negotiating Arizona’s gaming compacts, which introduced sports betting in 2021. “I represented our governor in negotiating new gaming compacts with our 22 tribes,” she recalls. 

iGB’s Most Influential Women campaign can help reinforce the importance of visibility for women in gaming, she says. Female leadership in tribal governance is one of her biggest inspirations. 

“The tribal culture is very much woman-run. The women really wield a lot of authority. I’m glad to see that the rest of the gaming industry is embracing that as well.” 

“The gaming business has historically been driven by men. But now women [are] achieving the C-suite, becoming CEOs and holding important roles across the industry”  

Heidi McNeil Staudenmaier

Jennifer Innes 

CEO, BettingJobs 

For Jennifer Innes, initiatives like Most Influential Women are an essential way to highlight the breadth of female talent in the industry and inspire the next generation of leaders. “When it comes to women in gaming, it’s really important to be able to see other leaders and shine a spotlight on them for support,” she says.  

This was something that Innes lacked when she secured her first job in the industry 18 years ago. Entering the gambling sector as a young graduate, Innes was the first female hire at BettingJobs, an experience she describes as “a real eye-opener”.  

Over her almost two decades in the industry, however, the recruitment expert has witnessed a number of changes in the treatment and perception of women. Within the past year alone, BettingJobs has seen a 15% increase in placements for women in gaming, with a growing number of women taking on executive roles.  

Innes also notes that the industry has cleaned up its image at trade shows in recent years, moving away from sexualised representations of women. “Gaming is much more modern nowadays and far more regulated, so there’s not all the scantily clad ladies at conferences and events,” she adds.  

Tackling work-life balance

However, Innes still believes there is work to do. As CEO of BettingJobs, she remains passionate about tackling the gender pay gap and believes that women need positive role models in their private and professional lives in order to reach their full potential.  

Her philosophy can be summed up in one key mantra: “If you don’t see it, you can’t be it.” For Innes, this means mentoring young women in her company to reach top positions in their careers, despite the challenges of working in a male-dominated industry. In her home life, it also means setting a positive example for her eight-year-old twins by showing that her role as a mother can be balanced with her role as CEO.   

“It’s important for me to balance having a career with the family, so my daughter Georgia can see that mum is still here, but mum’s also the CEO.” 

In terms of her own career, Innes is overawed and humbled by the success she’s achieved, from being nominated for prestigious awards to building a thriving company and a huge online following. Having her achievements recognised is “hugely meaningful” for Innes and also an important step in building stronger and better communities among women in the industry. This, for Innes, is one of the most important ways to foster change. 

“It’s important for me to balance having a career with the family, so my daughter Georgia can see that mum is still here, but mum’s also the CEO” 

Jennifer Innes

Over the course of this week iGB has released its full list of the 10 Most Influential Women in gaming for 2024. Catch part one and part two. This year’s judging panel can be found here and here.

The next four Most Influential Women 2024 winners are:

Rebecca McAdam Willetts

Founder, QueenBHive

The story of Rebecca McAdam Willetts’ career is one of transformation, advocacy and unwavering passion for creating a more inclusive environment within the gaming industry.

Her journey began with a love of poker coupled with her innate ability to craft compelling stories. “Moving from being a player and loving the game to being in media… was a lovely pathway to help companies understand how they need to communicate to be authentic and transparent,” she says.

McAdam Willetts’ personal experiences have often driven her professional crusades. A pivotal moment came at a poker table when a negative experience made her question how welcoming the environment was for women.

“If I’d been a new player at that time, I don’t know if I would have come back,” she recalls. This realisation sparked her dedication to making poker, and gaming overall, a more inclusive space.

Her advocacy grew even stronger during her first pregnancy when she realised the industry’s maternity and paternity policies needed urgent reform. “There was no pregnancy parking, no nursing rooms,” she says of her time working for The Stars Group, the former owner of PokerStars.

“I realised I could be a conduit for change between multiple departments. From the paternity policies to how women were represented in advertising. I wanted to make sure they were seen as competitors and not there as entertainment or interesting things to look at for the competitors,” she says. McAdam Willetts spearheaded initiatives that supported working mothers and ensured better representation of women across the company’s platforms. 

Adapting during Covid-19

The Covid-19 pandemic stands out too as a transformative period in her career. Her leadership shone during the difficult period as online poker was booming. McAdam Willetts navigated the challenges of a thriving poker scene with a deep sense of responsibility. 

“We had to be so careful and responsible in the way we communicated. But on the other side, I got to have loads of fun in getting more innovative in the things we did, so creating really interesting initiatives for charity. Using celebrity for instance,” she says. 

Her creativity led to impactful charity initiatives and celebrity partnerships, teaching her that “you don’t have to stay in your lane”.

Now as founder of PR firm QueenBHive, Rebecca continues to champion women in gaming. “I really believe in sisterhood and holding each other up. Campaigns like this bring visibility and an opportunity to do that.”

“I realised I could be a conduit for change between multiple departments. From paternity policies to how women were represented in advertising”

Rebecca McAdam Willetts

Kirsty Caldwell

Founder and CEO, Betsmart Consulting

In spite of her recent successes and accolades, compliance expert Kirsty Caldwell was initially taken aback when told she had made the Most Influential Women list. “This a really nice surprise,” she says. “I’m not the sort of person who usually puts themselves forward for stuff like this but running the business has forced me to put myself out there a bit more.” 

Since founding Betsmart Consulting just five years ago, Caldwell has emerged as a leading light in the compliance sector, earning her a reputation as an influential voice in the industry – and this year’s most-nominated Most Influential Women candidate.

Caldwell describes the recognition as “just amazing” and says awards like these are vital in celebrating the important and difficult work that compliance experts carry out every day in the industry. For women in gaming, they have also helped build a much better gender parity over the years. 

“When I started it was a hugely male-dominated industry, but I’ve seen some stats recently that say that it’s fairly balanced between men and women in the industry now, so I think campaigns like this have probably played a strong role in addressing that traditional imbalance,” Caldwell explains.

When it comes to boosting the profile of women in gaming, Caldwell has also played her own part, pushing for higher industry standards and raising awareness of compliance issues both in the UK and abroad. 

Joining the GC’s Industry Forum

Having grown her business from a handful of employees to one of the UK’s leading compliance and licensing partners, Caldwell was recently honoured with a spot on the Gambling Commission’s new Industry Forum. “That was really important to me,” she says. “I didn’t really expect to be awarded a place, but I was delighted that I was. I think it will play a pivotal role in the industry.”

Although it’s still early days for the recently established forum, the platform Caldwell has will help her continue the work of educating the Gambling Commission about the issues and challenges affecting operators. In future, the Betsmart founder would like to see more women in senior compliance roles recognised within the industry. 

“As a consultant, you’re stuck in the middle of keeping clients happy from a commercial perspective and ensuring they remain on the right side of the regulation – quite often, you’re delivering news or information that perhaps they don’t want to hear, so that can be difficult,” she says. “Recognition for people who are doing those kinds of roles day in day out I think is really, really important.”

“I didn’t expect to be awarded a place [on the Gambling Commission’s Industry Forum] but I was delighted that I was. I think it will play a pivotal [role]”

Kirsty Caldwell

Sarah Robertson

Chief commercial officer, Kambi 

Sales has historically been a male-dominated profession, says Kambi’s Robertson. And when she joined the sector in 2011, this was very much the case. “It’s good to recognise where we’ve come from as an industry. When I started at Kambi, or more importantly when I started in gaming, there were very few women in the industry, much fewer than there are today,” she recalls. 

“I look around today and see lots of talented women in this space. There is still a lot of work to do but I think it’s really nice to recognise the work already done to diversify in the space, especially in some of those more male-dominated areas like sales and commercial.”

Robertson joined Kambi’s senior leadership team last October alongside its new CEO Werner Becher, who took on the role in July. She says she is most proud of moving up the ranks of the commercial team and working across some of the supplier’s biggest deals to date. 

She says diversity is crucial to ensure success across all departments and roles in the sector and Kambi is leading the charge here. 

 “As you see more diversity in senior positions, that really helps you bring in more people, whether that’s more females or just more diversity in general into the space. 

“One of the things that Kambi really looks at is diversity and inclusion and making sure that we are hiring the right people for the right positions. But also attracting talent that is diverse,” she concludes. 

“It’s really nice to recognise the work already done to diversify in the space, especially in some of those more male-dominated areas like sales and commercial”

Sarah Robertson

Kathleen McLaughlin

Vice president of marketing & corporate sales, North America, Novomatic

Starting out in gaming in the 1990s, Kathleen McLaughlin has had a rich and diverse career in gaming, spanning roles on casino floors in Las Vegas to opening resorts in Macau for Las Vegas Sands. Speaking on her pivotal career moments, McLaughlin says the gaming sector has presented new and exciting opportunities throughout significant life changes. 

“I’ve been very fortunate,” she beams. “I’ve worked with amazing companies and amazing teams of people and my favourite thing is to see somebody that worked for me 30 years ago and now all of a sudden, they’re an EVP of a company and we’re still friends.”

Working in Asia is a highlight she reflects, on accepting an executive role during a time when female executives were uncommon. “I was one of the few, if not one of the only women over there in an executive role and we opened a 4,000-game property in a very short period of time, and that changed the course of gaming in Asia.” 

Shocked and thankful

McLaughlin was shocked after receiving news of her inclusion among this year’s Most Influential Women and says it has taken some time for the news to sink in. “Being a [female director] was not common [throughout my career in gaming],” she adds. “I still think we’re really behind and I get excited when I see other women doing well and I don’t even know them, but I don’t care because I know however they got there, their struggle was somewhat similar [to mine].” 

It’s for this reason the nomination took her by surprise and she is very thankful for the acknowledgment. Today she is vice president of marketing & corporate sales, North America for gaming technology provider Novomatic, where she relishes the challenges thrown at her. 

“I believe you can do anything you want to do in gaming. You just need the tenacity and the guts and the experience and support to be able to accomplish the things you want,” she says.

“I get excited when I see other women doing well and I don’t even know them. I know however they got there their struggle was similar [to mine]”

Kathleen McLaughlin

Over the course of this week iGB will release its full list of the 10 Most Influential Women in gaming for 2024. Part one features Grainne Hurst, Purity Wahiu and Erica Okerberg. This year’s judging panel can be found here and here.

From PR and comms, to gaming law, marketing, recruitment and sales, these women come from all walks of life but have come together under the common theme of influence and inspiration among their colleagues. 

When approached, our winners were all particularly humbled to be recognised in this seventh annual edition of the list. The call for submissions this year was launched in October and a highly reputable panel of judges was formed.

When submissions closed at the end of October, we decided to switch up the judging process and adopt a scoring system that considered how shortlisted nominees had enacted change within their roles both at a company and industry level. 

Judges were also tasked with rating their visibility within the sector and their respective companies and finally their capacity to enact change in the future. The panel was impressed with the quality of candidates and largely agreed on the final 10. 

Thank you to all those that submitted nominations, to our judges for their time and efforts and to those listed this year for forging change and influence within our sector.

Our first three Most Influential Women 2024 winners are:

Grainne Hurst

CEO, Betting and Gaming Council (BGC)

Hurst is one of the most recognisable names on the list, thanks to her hugely visible role at the helm of the UK gambling industry’s leading trade body. The BGC is at the heart of UK gambling in its role as the industry’s representative. 

Hurst was welcomed into the position in September and hit the ground running. Shortly after her promotion, the group published its first report on the scale of the gambling black market in the UK. In it she calls for a more holistic approach to tackling the problem, as enforcement is “only part of the solution” she said at the time. 

She transitioned into the role during a truly pivotal period for gambling, particularly in the UK, where the sector is grappling with deep-rooted reforms introduced by the previous government’s white paper. 

“There is a huge amount of work ahead of us, not least delivering and implementing the outstanding proposals outlined in last year’s white paper, many of which our members called for,” Hurst said upon taking the helm at the BGC. 

“Our members are rightly proud of their vital role in the UK entertainment industry, and the significant part they play supporting the local and national economies through tax and high value jobs.” 

Black market battle

Intercepting the black market is at the top of Hurst’s to-do list. “My priority is ensuring we do everything in our power to do our job on this,” she told iGB in a November interview. “We have to be continually promoting and enhancing the BGC’s member’s role in the leisure, entertainment and tourism sector and ensuring policymakers and the wider public recognise there is a huge difference between us and the unsafe, unregulated gambling black market.” 

It’s an overwhelming undertaking for Hurst, BGC and the sector as a whole, as many enforcement efforts have so far not been successful in mitigating black market activity. However, Hurst is wasting no time in taking on the issue and believes a unified approach will be beneficial in this battle. 

“We can also work with partner trade bodies abroad, because fundamentally, this is an international challenge. I was proud this year to sign a Memorandum of Understanding with the American Gaming Association and the European Casino Association. I am excited to see where that takes us and what outcomes it secures,” she added. 

“We need to keep the pressure on and keep raising this issue [of the black market] in the media and with policymakers, and ensure those other stakeholders are aware they have skin in this game too.”

Career preperations

Hurst jumped into action quickly in her role with the BGC. Her background in the civil service as an advisor and her subsequent work in corporate affairs for UK gambling powerhouse Entain prepared her for life as a prominent figure, where scrutiny from the sector and the public is often part of the role. 

But Hurst is not afraid to stand her ground and, over her time in gambling, she has gained the respect of her peers. Elsewhere, she is a board member for Global Gaming Women (GGW) and is an active participant in its events. In 2023 she was honoured with the group’s Patty Becker “Pay It Forward” award for demonstrating “outstanding commitment to the development and advancement of women, GGW and the community” the group said at the time.

“There is a huge amount of work ahead of us, not least delivering and implementing the outstanding proposals outlined in last year’s white paper.”

Grainne Hurst

Purity Wahiu

Director and managing partner, Stellar Bets

Purity Wahiu took her first gaming job in late 2017 and has enjoyed a meteoric rise since. She currently serves as director and managing partner at Stellar Bets, having made the move over from Palms Bet in November 2024. Her gaming career started as a retail training specialist at Betin, taking in stops at operators such as Inbet and DafaBet as it evolved and expanded into online.

It all comes down to the strength of her network, she says. “Building a network is very important,” Wahiu explains. “[But] as much as having network is important, integrity is the key thing.

“If you do the right thing at the right time in the right way, people will think highly of you,” she says. “As much as you have that network, it depends on what you put into that network.”

The odds were not in her favour, she says. “When I joined, no one believed I would make it. But it just takes one person to believe in you.” And she wants to continue that cycle and ensure the industry is inclusive and diverse.

“We are in an era where there is so much innovation and what I want to achieve in my career is encouraging a generation that never shies away from taking on a position, especially women.”

A new generation of women in gaming emerges

And she sees a new generation starting to emerge. She picks out esports pioneer Faith Dorothy Ahurira, founder of Gamer Girls Uganda, as someone who has climbed all hurdles in her path as an esports athlete and advocate for women. Then there’s Emily Asava, currently at SA Gaming, as someone she sees as an emerging industry talent.

Wahiu aims to foster that inclusive culture by bringing in more talent, using her training skills to encourage more women to join gaming from other industries. “I feel women need to be heard and need to be included,” she says. “My biggest achievement will be mentoring that next generation.”

To be recognised for her efforts and named one of iGB’s Most Influential Women for 2024 is “a huge honour”, she says. “I’m so grateful; I didn’t know that people from all over the world would know my name and that I’d be in this position one day.”

It’s her network that ultimately brought her into the industry. She had left a role in procurement, when a call from a former client led her to Betin. That network may have brought her into the industry, but it’s what she’s put in to supporting the companies and people within it that’s made her a key industry figure.

I want to encourage a generation that never shies away from taking on a position, especially women.”

Purity Wahiu

Erica L Okerberg

Vice chair gaming practice and shareholder, Greenberg Traurig

“It’s a privilege to be recognised alongside the incredible women listed in this year’s iGB Most Influential Women campaign,” Okerberg enthuses. “The calibre of previous winners is impressive so it’s quite an honour to be included for the same recognition.” 

The legal space is ever evolving,and varied cases and projects have kept Okerberg on her toes throughout her career. She has advised and worked for land-based and online casino operators, as well as sports wagering operators and private equity funds and thus has a wide-reaching understanding of the sector’s legal complexities. 

But Okerberg says mentorships have helped propel her through her career. “Mentorship (both formal and informal) has been vital to helping me grow and build my career within the industry. The support that I’ve received [from within the sector] and especially from some key mentors has been wonderful,” she recalls. 

Her goal is to repay that favour and foster a nurturing environment for other women through mentoring young women entering the industry and advocating for continued growth in diversity.

Celebrating women’s successes

“I love seeing women’s successes highlighted in an industry where we are building presence and leadership. Reading about other women succeeding in their business endeavours promotes gender diversity, creates bonds and strengthens our culture, and inspires future women leaders,” says Okerberg. 

Okerberg has received a number of accolades for her work within the sector, including GGW’s Patty Becker “Pay It Forward” award, a listing in Chambers USA’s Best Lawyers in America campaign and the 2024 Vegas Inc “40 Under 40” List.  

She names previous Most Influential Women winner and FanDuel CEO Amy Howe as a shining beacon of inspiration and influence for her, as “she is a great leader and a champion of women in the industry.”

“The calibre of previous [MIW] winners is impressive so it’s quite an honour to be included for the same recognition.”

Erica L Okerberg

Over the course of this week iGB will release its full list of the 10 Most Influential Women in gaming for 2024. This year’s judging panel can be found here and here.

“That’s where the the business world is evolving,” she says. “Now there is just so much more scrutiny, willingly or not, we will all sooner or later need to comply with ESG-related requirements.” 

Gambling, Tesarovoa points out, is an industry people used to consider a sin industry – some still see the industry in this light. Therefore, sustainability plays a role in educating different audiences to look at the nuance throughout a sector. 

After all, she continues, the larger operators in the industry are on a par – if not better – than other sectors when it comes to ESG. Not only is it subject to stringent regulatory compliance conditions, but it is also particularly sensitive to what is relevant and important to different stakeholders, Tesarova adds. It is a service industry after all.

Las Vegas Sands’ approach to sustainability: Planet, people and communities

“Thus, we perhaps a react a little bit faster to the needs and the expectations of these stakeholders.”

However, Las Vegas Sands doesn’t approach ESG precisely aligned to the traditional pillars. “We organise it along areas people can understand.”

That means a foundation of governance supports three pillars – planet, people and communities.

“The reason for that is that while in the investment space, people understand ESG, all the other stakeholders, of which our team members are the most important one for implementing sustainability, they don’t respond.

“They don’t know what ESG is, but if we frame it that we care about the planet, we care about people, we care about the communities and that it’s very important for us to do business in an ethical way that is something that people can stand behind.”

That also sets out a framework for prioritising different ESG factors based on how they impact the business. And no matter the jurisdiction, whether there are reporting requirements in place or not, the entire business must meet the sustainability requirements set out. 

That strategy, as with many in the industry, started out as a series of isolated projects and initiatives across the industry. Tesarova and her team created an ESG framework, then unified the existing projects that fit into that structure in one coherent strategy. 

It was a case of determining which initiatives were important enough to retain and which were most deserving of resource. “[This] helped us have a little bit of a lens on which things we should do,” she says. “But I think that the key ingredient in all of this is that we’ve always had support from the leadership. The leadership always saw this as an important thing.

“In general, the principles around sustainability just make a lot of good business sense. So there was always leadership support behind that.”

That support from the top ripples throughout the organisation. “Once people see there is a support at the highest levels in the organisation, they know this is important.”

“Companies that have strong ESG performance also perform better”

That, of course, translates to the investment community she continues. “Anecdotally companies that have strong ESG performance also perform better,” Tesarova explains. “There is some kind of a correlation.

“I was thinking about that correlation and especially for our industry; I say that if we do good by our stakeholders, it creates value for our shareholders.

“If our team members, our employees, believe we are a company that cares about the planet, that cares about people, that cares about their communities, about their neighbours, about the wellbeing of the people around, then they feel more aligned with our business, our company and end up delivering better service. This then results in return customers or higher span and that returns more value to shareholders.”

Tesarova is “incredibly honoured” for recognition from FiNTEL Sustain, topping its Sustainability Plus rankings. “I am so proud of the company, the team, the team members that come up with the programmes, that implement the programmes and they do it in a way that then translates to something that people can see. 

“I recognise we, from the beginning, took an approach of not talking a lot about our sustainability strategy. I’m not a communications person.

“We did not spend a lot of time creating the sustainability story, but rather we worked on the projects and programmes and initiatives. The fact that this work was done well enough and that it was seen and recognised by outside organisations and stakeholders is incredibly rewarding because we didn’t do it for that.”

This year iGB has run down the highest ranked companies in FiNTEL Sustain’s Sustainabilty Plus rating system. See the full list here. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

“It is an essential part of our long-term commitment to the communities within which we work and live and a key way we serve our customers and players by improving our business and the broader industries in which we operate.”

Sustainably is embedded in the Aristocrat business in different ways, depending on the area of focus, he explains. For example there are enterprise-wide policies supported by awareness activity and training for responsible gambling, privacy, cyber, modern slavery and anti-bribery and corruption.

Diversity, equity and inclusion targets are integrated into hiring processes. At executive and board level there are additional, targeted programmes. 

Commitment to sustainability trickles into supply chains

And this extends beyond the internal operations, Ashton explains, and throughout the entire Aristocrat value chain.

“For example, we engage closely with our supply chain through surveys and requiring compliance with our supplier code of conduct,” he says. “We engage with customers on responsible gameplay technology and do awareness campaigns and surveys for our players.”

This ultimately reflects the growing importance of sustainability across the gaming industry. For the largest operators and suppliers it’s already a non-negotiable he says.

However ESG maturity varies depending on the geography and market segment in such a global industry, he adds, even if the expectation for action is increasing. That means integrating sustainability into business strategies and decision-making processes, not to mention enhanced reporting.

Crucially, it factors into growing investor engagement, for whom ESG is an increasing focus. Aristocrat has gone as far as holding an investor day focused on ESG issues and outlining its approach. “That level of transparency and communication aims to foster investor confidence,” he adds.

A new three-year cycle for ESG

As with many companies in the FiNTEL Sustain top 10, Aristocrat’s strategy started by bringing together a range of strategies into a more coherent approach. “As our programme has matured there has been increasing ownership operationally and now the overwhelming majority of priorities are executed by the business – not just the sustainability team,” Ashton explains.

“It’s work that is mainstreamed into our core systems, processes and practices, with priorities captured in many people’s annual performance goals.”

But it’s coming to the end of a three-year cycle for its FY22-24 ESG strategy and it has completed a comprehensive double materiality assessment for the next iteration. This will underpin the next three-year strategy, due to be published later this year.

“Over the coming years, we will also be expanding our sustainability disclosures as we look to meet evolving stakeholder expectations and the introductions of mandatory sustainability reporting,” Ashton adds.

“As such, we have taken steps to further integrate sustainability considerations into key areas of our organisation, including with finance and data teams and through operational practices.”

And to be ranked second in FiNTEL Sustain’s inaugural Sustainability+ rankings, Ashton credits the “passion and commitment” of the Aristocrat team, not to mention the support and endorsement of its leadership and board.

“Despite the recognition, we know that this is a journey of continuous improvement, so I think it’s important that we don’t get ahead of ourselves,” he adds. “We know that stakeholder expectations are constantly changing and we look to tailor our ESG programme to respond accordingly.”

Over the next few days iGB will continue counting down the remaining highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

For Caesars, sustainability efforts stretch back decades. The strategy began as a way of fulfilling different needs across various parts of the business. “However, over time, we learned that formalising our governance structure and centralising our approach to aggregating best practices was a better way to ensure programmes, initiatives and engagement happened more uniformly across the organisation,” Dominguez adds. 

Today sustainability is aligned with Caesars’ core business, making it a strategic imperative embedded into Caesars rather than a short-term programme or initiative with a limited shelf life, he explains. 

Dominguez sees ESG as essential to all industries, including gaming, and for Caesars it’s structured around the PEOPLE PLANET PLAY framework, with a focus on acting with integrity and care for its team members, communities and the environment.

“We believe it’s imperative that our ESG programming is ingrained in our everyday business and that all operators and suppliers figure out how best to integrate sustainability into their businesses,” he continues. “The challenges we face are real and will take solutions and actions by our industry and beyond to make a difference.”

Deploying science-based goals globally at Caesars

By embedding sustainability across all aspects of the business, it also makes it more scalable across the Caesars portfolio. This means efforts such as its HERO volunteer programme or efforts to reduce greenhouse gas emissions by investing in energy efficiency measures – “goals that align with science,” Dominguez notes – can be deployed globally.

That focus, he says, speaks to the investment community. “Being a responsible business means more than delivering solid returns to shareholders – it also means caring for our guests, team members and communities.

“It means recognising that too much of anything can be a problem and understanding that the planet is facing challenges and it’s important for us to do our part to mitigate such risks.”

The investment community understands responsible businesses are smart businesses, Dominguez continues, which perform better over time. Sustainability, he argues, is not only an important aspect of managing risks but also creating a culture committed to delivering exceptional outcomes. 

Being ranked in FiNTEL Sustain’s top 10 therefore reinforces the fact that programmes and actions embedded in PEOPLE PLANET PLAY are working and delivering more, he says. “We recognise there’s more to be done but with the support of our leadership team and our 50,000+ team members, we’re confident our work in this area will continue to progress.

“And we’re hopeful Caesar’s successes will encourage others in our industry and beyond to embrace sustainability and ESG efforts as many of the challenges we collectively face will take a village to tackle.”

Over the next week iGB will be counting down the remaining highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

Its strategy spans a number of facets, from fostering diversity, equity and inclusion within its workforce to actively engaging with the communities where it operates, as well as complying with global regulations and reducing its carbon footprint.

This all forms a strategy centred around the acronym SPORT. Sustainable, People, Oversight, Respect and Technology-led.

The programme has developed at pace. For example, Sportradar undertook its first company-wide survey to better understand its environmental impact in 2023. This informed its efforts to migrate internal workload to AWS and away from physical data centres, with 85% of workload transferred to the cloud. It aims to increase that to 90%. Lease renewals are now informed by sustainable office developments and ultimately saw 520 employees in the Philippines relocated to more sustainable office space in December last year.

Training reigns supreme

When it comes to diversity, equity and inclusion, Sportradar reported a 100% completion rate for its equity and diversity workplace training, supported by four Employee Resource Groups (ERGs); Women in Tech, Sportradar Pride and the Neurodiversity and Multicultural ERGs, both formed in 2023. 

And for a business in which sporting integrity is a key tentpole, complying with the highest possible standards of oversight and governance is a key tenet of its ESG strategy. Again, it boasts 100% completion rates for its modules on its code of conduct and insider trading. That integrity business also provided 2,270 pro bono hours of prevention, detection and investigation support in 2023. 

Technology underpins all of Sportradar’s efforts. Whether that is constantly updating and refreshing its security standards or maintaining the highest possible protocols for data privacy, the supplier applies the same drive to enhance and improve its products and underlying technology to the sustainability strategy.

“These are not corporate obligations,” Koerl writes. “This is a moral imperative that drives us to create lasting value for all stakeholders – our investors, clients, partners, employees and the communities in which we live and work.”

Over the next two weeks iGB will be counting down the ten highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

“I think for the bigger operators that have institutional investors, we’re definitely getting a signal from the market that it’s important,” Gulich says of sustainability. “I think in some ways it is our social licence to operate.”

MGM’s Focused on What Matters platform, for social impact and sustainability, is a “foundational value” for the operator, he continues. “We have aggressive goals. We have good corporate support and we have good visibility with our executive leadership and our board.”

He is responsible for a critical mass of operations in southern Nevada including Las Vegas, seven regional US properties, two in China and a Japanese resort under construction in Osaka. 

“We’re a long-time operator in these communities and so we’re deeply invested in the health and the resilience and the sustainability of these communities for a number of reasons,” Gulich says. “Probably first and foremost is it’s where our staff live. Literally, it’s where we live. And we’re invested in the success of these communities. 

“From an environmental sustainability perspective, we see that through the lens of energy and carbon, water and waste.”

Conservation key to sustainability in LV desert

After all southern Nevada is on the frontline of climate change, he says. “I’m sure you’ve heard the saying that if climate change were a shark, that teeth would be water.”

Living and operating in the driest desert in North America means MGM has set corporate goals covering energy, carbon, water and waste. Gulich and his team are responsible for crafting that strategy and launching the initiatives. 

It’s a research-driven approach. The team writes white papers to define the issues facing the business. This starts initially on a global level then narrows to a regional and local focus. It benchmarks against MGM’s peers and assesses internal data and ultimately maps strategies and actions against the points of biggest leverage. 

MGM leadership allows for aggressive goals

Gulich’s team at MGM has aggressive goals, supported by a commitment from its board of directors and leadership team. Executive compensation is also tied to social impact and sustainability goals. 

But essentially, it’s change management. “[And] change management is difficult,” Gulich says. “It doesn’t matter whether we’re talking about sustainability or any other kind of change management. There’s a certain organisational momentum of ‘doing things the way we’ve always done things’.

“You come in with a with an idea for change, you want to affect some different outcome than the status quo. And there’s often some outpouring of negativity that you have to endure and listen to. And once you get over that it’s a little easier to have a conversation.”

“We control nothing and we’re trying to change everything”

He says it’s important for his team to listen. “In sustainability teams we say we control nothing and we’re trying to change everything. We’re not leading with authority in that regard. We’re not direct supervisors of these staff; we don’t control their budgets and we’re not necessarily decision makers in their areas of operation. But what sounds like resistance, I think is often really, really important feedback that we can learn how to integrate the things we’re trying to do with our business.”

For MGM, being ranked in FiNTEL Sustain’s top ten for sustainability is a sign that the approach is working.

“We’re not doing it for the awards or for the rankings, right? I mean but it’s helpful and I think it’s another signal to us that we’re heading in the right direction.”

Over the next two weeks iGB will be counting down the ten highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

“The gaming industry is starting to realise it needs to be a priority,” she says. “Our customers, being the casinos, are demanding it as well, as they are prioritising it; for that reason we should as well.” 

This transition has been developing over the past decade and, for the largest companies it’s now a key priority and a key part of growth strategy, she explains. 

Light & Wonder is in a unique position. As Scientific Games, it was a company with decades of industry heritage across lottery and gaming. Three years ago, it divested lottery and sports betting to become a pure gaming business. This reset was “an amazing experience” Skenandore says. “It allowed us to look at what ESG is, what it means to us, to our people, our industry and customers. 

“We did significant surveys to establish a new foundation for ESG and the commitments we want to prioritise as a company. That has been embedded in our strategy and our priorities globally.

“We’re still fairly young in our ESG journey, as many of our industry peers are, and because of that we felt we had to establish an internal governance structure. We have such a wide, such a global footprint, so how do we engage our customers in any given market?”

“Gone are the days of greenwashing”

Under an ESG council that reports to the Light & Wonder board, there are established committees for social impact; diversity, equity and inclusion; environmental sustainability; responsible gaming and a supply chain committee. 

These developments have been “hugely helpful” she says. “We’re more aligned, can maximise investments, can invest more where we want. It’s really a good model that I highly recommend for any organisation to consider. When you have a broad footprint like we do, without that structure and without establishing those working groups, how do you mobilise?”

It’s not just Skenandore and her team trying to find the answers. “I have no competitors in ESG, I just have partners,” she says.

“There’s a beautiful collaborative space that has been born where peers, competitors and customers are coming together and going on this ESG journey as one,” she continues. “Sure, we have our own company priorities, but it’s been amazing to see in the last couple of years how open the companies are to collaborating, to have double the impact.”

Light & Wonder investors taking interest

And the interest from investors is growing. Skenandore says Light & Wonder is taking a lot more enquiries from that community. 

“I do dozens of phone interviews throughout the year with investors who want to know our commitments to ESG, to understand our data and our commitments. 

“I welcome those conversations,” she says. “The days of greenwashing, of corporations claiming they are doing all these wonderful things with no proof, that era is behind us. People want proof and I welcome that – it evens the playing field not just for gaming but any corporation, so we’re all building the same foundation and are all held accountable in how we invest in ESG.”

There are millions of dollars available from ESG investors but, ultimately, it’s the right thing to do, Skenandore says. “We firmly believe that, end of story. Investing in social impact, investing in sustainability, investing in responsible gaming, it’s the right thing to do for our people, our company and our customers where we work, live and play.”

“Industry is now prioritising ESG”

To be ranked in FiNTEL Sustain’s top ten companies in gaming, shows how the industry is prioritising ESG, she says. “It really is a testament to gaming suppliers, operators, whichever side of the industry you are in, it’s a new day. We all should be prioritising ESG. 

“It’s a testament to the work we’ve put in to really drive ESG, drive awareness within the organisation, within our culture, within our investment group and across our customer base as well. It’s such a simple thing if you take a step back – how can you be a driver of each pillar. 

“But our journey is just beginning – we firmly believe we have opportunities to drive growth in ESG and we’re committed to it,” she concludes. 

Over the next two weeks iGB will be counting down the ten highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

Safeguarding players is at the core of Playtech’s sustainability ethos. The gaming giant is harnessing technology to increase and improve player protection efforts, she explains. This includes investing in and expanding its suite of safeguarding tools, data analytics and player engagement solutions, to ensure they provide as much protection from harm as possible. 

“Technology continues to have a profound effect on the gaming world, as the development of tools, software and artificial intelligence provide new ways for the sector to enhance the player experience and material sustainability issues more broadly,” Iannarone explains. 

Sustainability makes good business sense

But player protection is just one aspect of Playtech’s sustainability strategy. Being sustainable and responsible is smart business for Playtech, Iannarone says. “By championing sustainability and operating responsibly we are striving to make a positive impact on our customers, colleagues, communities and planet,” she adds. 

Sustainability is deeply embedded in the company’s culture, she continues. That’s thanks to a clear and concise approach to governance driven by the executive team. “One of the most important ways we are embedding sustainability into our culture is through strong governance and tone from the top,” she notes. 

It’s both top-down and bottom-up. Employees are empowered to change and improve processes. Playtech also encourages and supports its staff in developing the right skills and knowledge to make a positive social and environmental impact. 

“Our governance framework supports transparent decision-making processes and aligns with our commitment to ethical practices and regulatory compliance,” says Iannarone. This approach is supported by five formal committees established by Playtech’s board. Each focuses on a specific area of expertise. At the heart of this framework sits the Sustainability Committee, responsible for reviewing ESG policies. 

Its role is to help implement plans, corresponding business commitments and targets, monitors the strategy’s progress and keeps track of stakeholder engagement. “By ensuring robust oversight and accountability, we can effectively integrate sustainability into our core business strategies,” Iannarone says. 

A non-negotiable in gaming

Iannarone believes sustainability is becoming a non-negotiable in gaming and Playtech is planning ahead and considering how regulation will cover environmental, social and governance topics in the short and long term. 

On being recognised for its achievements in sustainability by FiNTEL Sustain, Playtech is honoured Iannarone says.

“We see this recognition as a true testament to our leaders and colleagues who have championed sustainability and are helping us deliver on our commitments today and into the future,” she concludes. 

Over the next two weeks iGB will be counting down the ten highest ranked companies in FiNTEL Sustain’s Sustainability Plus rating system. Watch FiNTEL Sustain founders Robert Montgomery and Steven Myers share the rationale for creating a gaming-specific rating system in this exclusive interview.

It has been a huge year for gambling in Peru and thanks to recent online regulation, industry commentators foresee it becoming the third largest online betting market in South America. Law No 31557 to regulate online sports betting and igaming in the country came into effect last February, having been signed off by President Pedro Castillo in 2022.  

The betting regulator in Peru, the Ministry of Foreign Trade and Tourism (Mincetur), started taking online licence applications in February and the market’s potential encouraged top-tier operators such as Betsson, Rush Street Interactive and Stake to apply. By 21 March 2024, 145 applications had been received.  

The regulatory framework set out in Law No 31557 has been described as favourable for operators, not least because it features an acceptable 12% tax on gross gaming revenue (GGR) for them. It also sought to kill a 1% consumption tax on the value of every bet. 

The market’s actual launch date is disputed as operators already in the market when the law was enacted were able to continue operating during the licensing period. Gonzalo Perez, CEO of leading Peruvian operator Apuesta Total, says those already in the market had to have their platforms certified to continue trading. Mincetur set a deadline of 15 November for this to happen. 

All was seemingly going well in the Peru betting industry and Perez said back in September that he believed the market, as it was, would experience fierce competition between operators. But a previously discussed consumption tax, which would require operators to pay a 1% levy on the value of every bet, quickly dampened interest in the sector.  

The proposed levy was reintroduced last September via Legislative Decree 1644, published by the government. On 14 December, a press release from the Peru government confirmed the selective consumption tax (ISC) will come in from January. 

According to EY executive director of international tax and transaction services Ramon Bueno-Tizon, the Peruvian Executive expects to collect around Sol 110 million (£22.7 million/€27.4 million/$29.2 million) a year from the consumption tax. 

Perez feels a 2024 adoption is unfeasible as operators will need time to tweak their systems and calculate the tax. “I don’t think that’s going to be possible because if we take into consideration how it’s written right now, we have to deduct 1% for every bet,” he says. “[To accommodate this] we’ll have to make some adjustments on our systems and our platforms. We’ll need to recertify our tech and start all the processes again. And we all know that it’s not going to happen fast.” 

Spiking the rapid growth of Peru gambling 

Perez has two key concerns about the decree. The first, he explains, is the prospect of double taxation on operators. He says the 1% rate on turnover is “crazy” and shows how the Peru government does not understand the betting sector. He believes the tax will ultimately cost companies like Apuesta Total more than the existing 12% GGR tax, in effect doubling the current tax rate.  

In a Linkedin post following the government’s confirmation of the tax’s introduction, Perez explained more on how operators may struggle to adapt to the new tax, expecting laboratory recertification to take between eight and 12 months before the tax can be transferred.

“Let’s remember that we are one of the few industries, or perhaps the only one, that operates with a platform certified by a state-approved laboratory and that operating without certification and homologation not only carries fines but can also mean the withdrawal of authorisation,” Perez said.

“Complex weeks are coming for the industry but the technical arguments support us. We expect wisdom on the part of the government so as not to affect the expected collection.” 

Potential resurgence of illegal operators 

The tax could have a hugely detrimental impact on what has largely been a smooth route to regulated gambling in Peru.

The existing regulatory framework in Peru has been praised as one of the strongest in LatAm, particularly compared to Brazil, which is currently facing strong pushback from governmental entities who are calling for its betting laws to be reviewed and ruled unconstitutional.

Brazil’s legal betting market will launch on 1 January 2025 and could quickly become the biggest legal betting market in South America. 

Zoran Milosevic is CEO of MeridianBet, an operator that has been in Peru for about 10 years. For Milosevic, a key factor in the country’s continued success will be the regulator’s ability to stamp out the black market. Perez fears its activity could increase as players and operators alike look to circumvent the new tax. 

Nicolás Samohod Rivarola, head of gambling and betting at the Vidal Caceres law firm in Peru, shares Perez’s concerns that the “very unfavourable” consumption tax could drive players and operators away from the legal market. 

“It would take the tax impact on [licensed operators] to high and burdensome levels, bordering on unconstitutional. And it would make many [stakeholders] think about evaluating their [presence] in the Peruvian market,” he says. 

“What would be worse and more serious is that [operators and players] could then explore unregulated options that are illegal.” 

How big will the impact be? 

The full impact of the consumption tax remains to be seen, although Perez warns it could be a “nightmare” and lead to Apuesta Total cutting jobs. 

On the other hand, MeridianBet’s experiences of tightening regulations in Europe, where many believe it is becoming increasingly difficult to operate as taxes increase, mean Milosevic is less concerned about the situation in Peru. 

In fact, Milosevic believes it could ultimately end up being a net positive by cutting some of the competition. He accepts the tax increase and urges Mincetur to effectively clamp down on illegal operators. 

“It’s nothing difficult,” Milosevic explains. “It’s nothing we don’t see across Europe. The days of low or medium taxation in gambling are over. 

“Our personal analysis tells us that actually we will benefit, because if you paid no tax, you will be competing against 600 companies,” he continues. “We expect 50 companies [to operate once the tax is implemented] so the number of competitors could drop up to 90%.” 

Perez is unsure how operators will recover these extra costs and suggests they could pass them on to customers to minimise the impact. 

“In theory, a consumption tax has to be paid by the consumers,” he declares. “The thing is that commercially, I don’t know if every operator will pass [the costs] on to the final consumer. I think for at least the first year the tax will have a very big impact on every operator’s numbers.” 

What can be done? 

Rivarola is calling on the government to alter the framework so that it is easier for operators from abroad to thrive in Peru’s market.  

“Tax regulations must definitely be issued to make things easier for non-domiciled foreign companies who do us the honour of coming to invest and start a business in my country,” he notes. 

As the tax is a government decision, Mincetur has no jurisdiction over it and cannot influence the legislation. 

“They (Mincetur) helped us last week to have a meeting with the economy minister,” Perez says. “They heard us, but they said, ‘OK guys, there’s nothing we can do.’ 

“They understand the impact of the situation. They understand there might be some people that go to the illegal market, meaning there is less gambling tax for the country.” 

Stumbling block or fatal blow? 

The truth is even experienced veterans in Peru’s gambling industry such as Perez are uncertain over just how large the impact of the new consumption tax on the market will be. 

But considering Peru’s route to regulated gambling has been largely plain sailing, this will serve as a valuable reminder of how precarious betting regulation can be. 

The reemergence of unregulated operators remains one of the industry’s biggest fears and, without an effective effort from Mincetur to curb offshore gambling, the tax and its subsequent impact on the black market could well become a key sticking point to the growth of Peru’s market. 

The implementation of the tax could prove to be a pivotal moment in whether Peru becomes a top three market in LatAm or risks facing the black-market challenges of so many of its peer nations in the region.   

In 2016, during Abe’s tenure, lawmakers passed the IR Promotion Act, followed by enabling legislation in 2018. The government planned to award three licences in the first round of bidding, with the possibility of more after the industry launched.

Analysts soon dubbed Japan “the next holy grail of gaming”. The most optimistic projected revenues of up to JPY6 trillion (£30.8 billion/€36.7 billion/$40 billion) at maturity. Some, like Morningstar’s Dan Wasiolek and Chesley Tam, reined in those outsized expectations. The team called for a $25 billion opportunity: $19 billion per annum in gaming and $6 billion in non-gaming.

Even so, global operators jockeyed for position. Wynn, LVS, Caesars, Genting, MGM and Melco were all-in at the start. Macau concessionaire Galaxy Entertainment Group Ltd proposed building two IRs.

IR interruptus

But within a year, the process was derailed by Covid-19 and many of those operators ran for cover. In the end, only two consortiums placed bids – MGM in partnership with Orix Corporation in Osaka prefecture and Casinos Austria with local partners in Nagasaki.

Ultimately, only MGM got the OK. The US gaming giant is now building a $10 billion showpiece on Yumeshima Island in Osaka Bay. Originally, MGM pushed to open in 2025, in time for the World Expo. But that date has been repeatedly pushed back. The resort is now expected to debut sometime in 2030.

Meanwhile, momentum toward a Japan casino industry has withered. “Gaining approvals alone was somewhat of an arduous process,” observes Steve Gallaway, managing partner at Global Market Advisors. “Many operators began to suffer investor fatigue.”

But once again, the industry is showing signs of life.

Will bidding reopen this year?

In January, the World Financial Review reported that Japan’s Casino Regulatory Commission could reopen bidding for the remaining licences sometime this year.

The election of a new prime minister in September also sparked hopes that the plan would get back on track. Shigeru Ishiba is said to have supported IRs in the past. He’s also pledged to maintain his predecessor’s economic policies. And former prime minister Fumio Kishida was a fan of IRs, calling them “a necessary initiative in promoting our country as a tourism-based nation”.

However, the new PM has more pressing problems: three decades of deflation, national security concerns and widespread public distrust in politicians, including those in his own Liberal Democratic party. Ishiba got off to a bumpy start, according to CNN. He called for a snap election that cost the LDP and coalition partner Komeito their majority in the lower house.

MGM as bellwether

For all the slings and arrows faced by Japan’s IR industry, Gallaway believes there’s a market for additional casinos “with the right location and local support”.

“MGM demonstrated staying power and I believe will ultimately be successful,” he says. Its success could ease lingering fears about the perils of casino gaming, such as gambling addiction and other social ills.

“As we’ve seen in other jurisdictions, many often have a fear of the unknown,” Gallaway continues. “With casinos, people often conjure up images and situations that occur in poorly regulated jurisdictions [and] give our industry a bad reputation.”

MGM’s performance could allay those concerns. “As it demonstrates its ability to act as a strong member of the community, provides good-paying jobs and is sensitive to the needs and wants of the local population, people’s fears of IRs will dissipate and there will be a push for additional development.”

A changing landscape

Ben Lee, managing partner at iGamiX, isn’t so sure and cites shifts in the Asian gaming landscape since Japan legalised IRs. That includes Beijing’s renewed scrutiny on Chinese punters who go abroad to gamble.

Casino proponents in Japan “never meant to target locals, which is why they adopted Singapore-style levies and South Korean-style restrictions” on monthly visitation, says Lee. The intended target market was Chinese VIPs. “We can safely say that segment would no longer be available given geopolitical considerations and recent crackdowns on money channeling and the Chinese junket operators.”

With MGM “the only one left standing” and a completion date six years away, “operators are free to pursue the biggest potential new jurisdiction – the Thai market.”

Journalist and industry commentator Muhammad Cohen is equally pessimistic. “No Japanese national politician has shown any inclination to expend an ounce of political capital on the IR issue since Shinzo Abe brought it up,” Cohen says.

“Beyond Japan’s internal factors that shovel sand into the gears, with the way the world has changed unless Tokyo or Hokkaido become available [as a location], no one will take a chance, given the required investment. The ROI just won’t be there.

“I’m afraid the issue is moot at this point.”

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.

Rather than predict a high-scoring contest, Chiles put it in different terms that caught many off-guard.

“If you bet, take the over,” said Chiles.

A starting QB making a blatant sports betting reference in front of the media generated a storyline that those within the walls of the NCAA offices would rather not deal with.

Chiles’ remarks are just another example of how much sports betting has become a mainstream topic. Such is the case when promotions from the national sportsbooks have become ubiquitous during game time.

As for the impact of these advertisements on those actually participating in the games, the NCAA and its member schools have taken a public stance that student-athletes are insulated from the influences through campus educational campaigns.

There are other recent examples before Chiles. Kayshon Boutte was accused of gambling while at LSU and Iowa State’s DeShawn Hanika was charged with making improper wagers in 2023. Together they seem to indicate the wall between players and the sports betting world isn’t as well constructed as hoped.

Anonymity offered in exchange for honesty

In an effort to understand the current climate on college campuses regarding student-athletes and sports betting in a post-PASPA world, I interviewed a number of Division I administrators and coaches as well as football, basketball and baseball players on the topic. The goal was to look at this subject not just when a controversy sparks attention. Rather, to look at it in a broader sense to see how aware and interested student-athletes are with sports betting.

All respondents were given anonymity to elicit honest answers and prevent their schools possibly being cast in a negative light.

Finally, respondents were not asked if they have personally wagered on any games. A question related to self-incrimination provides little validity. The goal of this piece is to assess the exposure college players have to the growing presence of sports betting, not to out any of them.

Read the full story here.

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That 1% consumption tax was removed from legislation in July 2021. However the Peru congress is now discussing its reintroduction, with the potential rate not yet confirmed.

Perez fears this could be hugely detrimental to the licensed gambling industry and is urging the government to reconsider. “The consumption tax is, depending of course on the percentage they will apply and depending on the base fee, very harmful for us,” Perez tells iGB. “We are trying to reach the government to talk, to explain the possible impact.

“The proposed 1% consumption tax discussed in congress was crazy because it’s a pretty high percentage. So, we are trying to reach them and argue with them about how harmful that tax could be if it’s not correctly applied.”

New taxes could slow Peru gambling market momentum

Perez’s frustration over the proposed consumption tax partly stems from his belief that the current regulation in place in Peru is favourable compared to other LatAm markets.

Perez feels Mincetur is doing a “great job”, he says. It is quick to respond to industry queries and issue clarifications, meaning the regulatory process has moved quickly.

The consumption tax would risk Peru losing ground in LatAm, which is currently one of the most exciting regions for gambling growth in the world Perez says. “I think that we in Peru have a good thing in that we can be very competitive in terms of the region,” he explains.

“Because for example, if you take into consideration the taxes that you have in Argentina or that you will have in Brazil or that they were discussing in Chile, which is a nightmare, we’re really good. They will say we’re very competitive.”

Perez is urging the government to leave the regulation as it is, much like the laws on land-based gambling largely have since brick-and-mortar casinos were legalised in 1979.

On the current online regulatory framework, Perez explains: “I think it’s very good, let’s not touch anything! If it’s working, let’s not move it, which is the strategy the land-based casinos have been applying for many, many years.”

Rising popularity of online gambling in Peru

Apuesta Total has long been a big player in the legal land-based market in Peru and the company now has over 500 retail betting locations across Peru.

But with the online sector newly regulating, digital offerings could be set to challenge the land-based alternative, with Perez believing it could be a 75%-25% split in favour of online.

Apuesta Total has already observed that growing online popularity, especially as a result of the Covid-19 pandemic. “Before the pandemic, we used to be 60% retail and 40% online,” Perez says. “Now it’s 25% retail and 75% online.

“Of course, retail has been changing for us. It’s a channel that is decreasing. Not too much, but it’s decreasing. But the online, it’s growing really, really fast. It’s crazy how fast it’s growing.”

That doesn’t mean retail won’t continue to play a key part of Apuesta Total’s strategy, however.

“It’s a very good channel of acquisition, it’s a very good channel of giving trust to the people, it’s a good channel for paying in cash as well, to top up your account for the withdrawals. So, it’s very good and relevant for our company.”

Can Mincetur effectively combat offshore operators?

Similar to operators in Peru’s next door neighbour Brazil, concerns in newly regulating markets centre around how authorities will block black market operators.

After Law no 31557 came into effect, Mincetur warned operators who were already active in Peru and didn’t apply for authorisation that they could be subject to a fine of up to Sol990,000 (€245,394/£212,401/$257,838) or criminal prosecution.

Perez has confidence in Mincetur’s ability to stamp out the black market. “Mincetur said that they will start chasing [illegal operators] in October,” he says. “As there is this window of time where everybody is applying and stuff like that, it means Mincetur is not so involved in that.

“But they told us that they will start chasing them in October. They know how important it is to chase them, so they will be in touch with the minister that is in charge of taking down the websites and I am really confident that they will do their job good.”

New tax risks denting Peru market

Perez’s labelling of the proposed consumption tax as “crazy” is a stark comparison to his praise over the regulatory framework set out in Peru.

He is concerned that the additional tax will only serve to harm the strong work carried out by Mincetur, which he holds a lot of confidence in to communicate with operators and deal with the black market, one of the industry’s core fears.

Whether congress decides to pass the consumption tax remains to be seen, but Perez’s comments should serve as a warning as to how it risks limiting the potential of what could be the third biggest gambling market in LatAm.

Operators active in Peru before the announcement had until 10 March to submit a licence application. Gambling regulator Mincetur warned those who did not comply could face a fine of up to Sol990,000 (€245,394/£212,401/$257,838) or criminal prosecution.

According to the law, Mincetur will process licence applications within 30 business days of submission. Perez said operators have a 15 November deadline to submit final certifications for their platform and content. Failing to meet that deadline could result in authorisation being revoked.

During that initial window in March, 145 licence requests were submitted. Meanwhile new entrants to Peru were given a longer period to apply, although Perez believes the deadline for this has not been clarified.

Rush Street Interactive is one international operator to have entered the market, while Betsson has also been granted a licence for its Betsafe brand which was present in the market prior to regulation. It secured a second licence through its acquisition of the locally-based Inkabet in 2021. Crypto gaming specialist Stake.com has also submitted an application.

Perez expects Peru to become a highly competitive market with international and local brands fighting for single-digit market share.

“I don’t think there’s going to be room for everyone,” Perez tells iGB. “We’re not going to have 50 big operators.

“The market and it’s going to be like any other country with three or four bigger operators and the rest are going to be struggling to get to the top.”

Perez expects a “battle” over market share in Peru, noting the competition will increase online gambling’s popularity. He says Apuesta currently has a 25%-30% market share.

Competition will strengthen the market

Sportingtech CEO Tom Ustunel previously told iGB he anticipates Peru will become the third-biggest market in LatAm. The sector has experienced a double-digit growth rate over last five years.

“It’s going to be good for the market because they will of course spend a lot of money on marketing,” Perez continues. “I think we saw in the past that when someone does that, the market grows.

“People use what they have on their mind, the brand that they have on their mind and so we take advantage of that investment that the other brands are doing.”

Omnichannel key for establishing trust with players

Perez is confident in Apuesta’s omnichannel offering powering its success. In July, 70% of the company was acquired by Cirsa in a deal that will strongly support Apuesta’s growth targets in Peru.

Alongside its digital betting, Apuesta Total was powered to a gross gaming revenue (GGR) exceeding €100m in 2023 by its physical betting locations,

Perez feels Apuesta’s over 500 retail betting locations across Peru has helped establish trust with locals.

“Having this retail branch helps us a lot to give confidence to the customers in Peru because I think that for many years they didn’t trust online services,” Perez explains.

Sponsorships driving brand awareness

Apuesta Total’s popularity has also benefitted from its sponsorship strategy, which involves working alongside clubs to boost the country’s football ecosystem.

In 2021, Apuesta Total signed five-year deals with Universitario and Alianza Lima, two of the biggest football clubs in Peru.

The long-term nature of the deal protects the operator from inflated sponsorship prices observed in Peru and its neighbour Brazil.

For Perez, it’s imperative the operator supports clubs initiatives to build connections with teams and bettors.

“We have seen and we expect some inflation [of sponsorships],” he said. “But of course, we have also been very good at maintaining our relationships. I think they feel that they have a partner with us.”

Remaining at the top the challenge for Apuesta Total

Apuesta’s efforts to maintain its position among growing competition in Peru will be challenging in the face of growing competition from international giants with sufficient financial and marketing firepower.

“We need to keep being the number one. For us we have it very clear, but it’s a very big challenge,” he concludes.

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.”

PL 2,234/2022 was approved by the Justice and Citizenship Committee in June, although it only passed narrowly by a vote of 14 to 12. The bill was then passed to the senate plenary, which was expected to vote on it following its return from recess on 1 August, although it’s now September with the bill still unattended to.

But there does now appear to be an urgency for the vote to happen. Senator Irajá Abreu has pushed in recent weeks for the senate to finally legalise land-based gambling activities, claiming he has the required votes to do so.

In an interview with Poder360, Iraja said: “The text is ready to be assessed and voted on. I am convinced that we already have the votes to approve the project, which is important for Brazil.”

The time is right

Alex Pariente, corporate senior vice-president of casino and hotel operations at Hard Rock International, agrees now is the right time for Brazil to legalise land-based casinos, with a general industry consensus that with bricks-and-mortar gambling already happening without regulation, a more coherent law is necessary to protect bettors.

“I think we are at the point right now, again, anything can happen, but that everybody understands that it’s better for everybody to be given an opportunity to come up to the surface and formalise their businesses, contribute their taxes and adhere to the responsible gaming practices to protect the population,” Pariente told iGB.

Pariente also noted comments from Fernando Haddad, the minister of finance, as well as President Luiz Inácio Lula da Silva expressing support for PL 2,234/2022. If the bill passes the senate, it will be down to Lula to sign it into law, something Pariente feels would be a foregone conclusion.

“I’ve been following this process over the last 20 years and in the last five years with a lot of intensity,” Pariente added. “We’ve never been this close.

“The debate has been very intense. I’ve been myself in the senate a couple of times and I think it’s a very healthy thing to happen before we go into more concrete actions. So I’m positive and I think you’re going to see results very soon.”

Could the narrow passage indicate future roadblocks?

Some have raised concerns over how narrowly PL 2,234/2022 passed back in June.

However, as Aposta Ganha chief commercial officer Hugo Baungartner explains, the upcoming vote will be the entire senate rather than a special commission. He is also confident the bill will pass.

“The 14-12 was in the particular commission,” Baungartner said. “Now, going to the whole senate, it might be different. I think we have more votes in favour than against.

“The thing is, everything that goes to a special commission, every time we talk about gambling it’s very tight, the difference. Now going to the senate, we have more possibilities to work with.”

What are the benefits of land-based gambling for Brazil?

Pariente described the government’s desire for tourism as the “backbone” of the arguments for land-based casinos, with Brazil’s figures consistently lagging behind those of much smaller nations.

He used the example of the Dominican Republic, where Hard Rock has an integrated resort. Despite its land mass fitting approximately 175 times into that of Brazil, the Dominican Republic welcomed over 10 million tourists in 2023 to Brazil’s approximately six million.

Pariente believes the introduction of land-based casinos could prove a welcome boost to Brazil’s tourist economy, something he feels Hard Rock will be able to play a big part in as one of what Pariente expects to be around 34 integrated resort licensees.

“Brazil is an absolute beautiful country and very diverse,” Pariente continued. “There’s absolutely everything there is to see in Brazil, but yet we don’t have a clear tourism policy that has been developed and has been sustained that can be consistent with attracting tourists into the country.

“We’re not building an integrated resort to use the local person as a customer on an exclusive basis. We want to be a destination that attracts regional tourism, that attracts international tourism.”

Those economic benefits are already manifesting themselves on the online side. The number of digital licence applications from operators currently sits at 114 and, with a hefty BRL30m (£4.1m/€4.8m/$5.3m) licence fee for successful applicants, the Brazilian government could be set to raise BRL3.4bn from those alone.

It’s likely to be a hugely profitable industry for both operators and the state, with a recent International Betting Integrity Association (IBIA) study estimating Brazil’s sports betting market could reach $2.3bn in gross win for 2025 with a tax rate of 12% of gross gaming revenue (GGR). The Brazilian state’s additional legalisation of land-based casino could further boost those tax coffers.

Aspects still to be ironed out

But while Pariente praised the efforts of the Brazilian government in its efforts to legalise land-based gambling, he also feels there are still “wrinkles” in the proposals that need fixing.

For instance, Pariente and others are seeking clarity over Article 45 of PL 2,234/2022, which states 40% of the revenue from electronic gaming and betting machines will go to the leasing company or manufacturer, with the remaining 60% going to the operator.

“That’s something that doesn’t sit very well with most of the big operators,” Pariente explained.

“And don’t get me wrong, we want and do a lot of business with the equipment manufacturers. We’re probably one of the biggest customers they have today. But at the same time, we need more clarity on what the article means.”

Hard Rock’s plans

Should the vote pass as expected, Hard Rock’s extensive knowledge of integrated resorts will likely serve it well as it sets out plans for Brazil.

One region it’s particularly setting its sights on is the state of São Paulo, which has a population nearing 45 million. Hard Rock chairman Jim Allen has been open about the company’s plans to build an integrated resort in the state.

Those plans will also likely coincide with a digital Hard Rock presence and Pariente is confident the company’s previous experiences in the US will give the business a head start.

“The company has the ability to create relationships with the local entrepreneurs, whether those are construction companies or banks or the company and the brand,” Pariente said. “We love this partnership in destinations where we intend to put our projects.

“I can only imagine it would be the same in Brazil. We’re not coming there to impose our will or whatever. We’re coming there just to build the perfect team that will ensure we’re going to have a successful property that will serve the purpose that both the government and the company are pursuing.”

Another landmark moment for Brazilian gambling

After finally getting over the online gambling hump, Brazil also now looks to be in the final stages of getting land-based betting legalisation across the line.

Pariente is anticipating it to be a top-three market globally. Although he acknowledges the regulation isn’t perfect currently, it represents a crucial step towards establishing a regulated environment that benefits both the industry and the Brazilian economy.

If the land-based gambling vote passes the senate as the industry largely expects, the country could soon have one of the most thriving betting markets in the world, with immense potential to attract tourism and international investment from giants such as Hard Rock International.

“Now we see a wider distribution of bets into more entertainment-like products [such as] bet builders and SGPs (same game parlays), as [users consume] different types of statistics. People follow the sports in a much deeper way than they used to.”

With this evolution of betting behaviours, users have developed an almost insatiable demand for content Sadi explains. “Producing this, almost to individual needs, is expensive to be able to deliver at scale.”

Like others, LiveScore sees generative AI as a solution to satisfying that consumer demand.

Can generative AI drive convergence?

Its media offering has a global reach and its performance in different markets helps dictate its betting product’s expansion. Sadi believes his 25 years of experience in sports media has provided a key competitive advantage for the convergence of media and betting. “It’s created a moat so others are not able to enter,” he says.

“How do we customise our app more to [suit] an individual’s behaviour? And how do we deliver a single personalised app to every fan around the world? I think we’re not too far away from being able to do that at scale with the use of genAI.”

Delivering that personalised experience to users is crucial in bridging the gap between media and betting. Although separate product and marketing teams work across the two product arms, Sadi says the the product suite is viewed as a single ecosystem to ensure a seamless experience.

The impact of overregulation

Currently LiveScore Bet is available in the UK, Ireland, Nigeria and the Netherlands. Sadi is eyeing expansion into South Africa and Eastern Europe, but its growth in new markets has slowed since 2022 and the cost implications of overregulation could further delay its expansion.

LiveScore Bet was among the first to enter the Netherlands’ licensed online gambling market in September 2021. However tightening regulations on advertising and tax hikes have created an increasingly onerous burden for licensees.  

The LiveScore CEO admits he may not have entered the market under its current regulatory regime. “Single-digit market share owner operators are on the brink of being exited from the market due to regulation” he says. Each additional layer of compliance brings its own additional costs and Sadi believes the current business model is becoming too expensive for mid-tier operators to navigate.

“Making decisions to enter a market rely on complex models towards investment and, at some point, reaching profitability. If the fundamentals change over time, you need to revisit and refinance your business and question whether there is long-term viability in the market,” Sadi says.

“The most damaging regulatory environment is one that is full of uncertainty.

Sam Sadi, LiveScore Group CEO

“The most damaging regulatory environment is one that is full of uncertainty. Making decisions to enter a market rely on complex models towards investment and at some point, reaching profitability.”

Thanks in part to the success of the LiveScore media business in Africa, Sadi has set his sights on expanding its betting operations on the continent. Africa’s “advanced and sophisticated” regulatory landscape strikes a good balance between consumer protection and allowing operators to grow.

South Africa – where LiveScore acquired platform specialist WonderLabz last year – is another country the company is eyeing for a future betting launch. And Sadi is also confident about opportunities in Kenya and Ghana as “well established, regulated markets”. On Nigeria he admits: “we haven’t seen than much traction, but that’s because we haven’t prioritised this market yet. As the market shifts more from retail to online, we’ll be there to leverage that opportunity.”

Competition in convergence – but will they succeed?

The rise of convergence apps clearly reflects the wider behavioural shift in players, but it’s an expensive model to operate and the industry has seen a few offerings fall by the wayside already.

Penn’s Barstool Sportsbook was a prime example. After securing a majority stake in Barstool in 2020, Penn sought to combine the online sports community with its interactive betting solution. It ultimately sold the business back to founder Dave Portnoy in August 2023. The US gambling giant subsequently initiated a new media partnership with ESPN. That new venture experienced a slow start, leading to speculation of rival operators bidding to acquire Penn.

“Not every type of sports media has the propensity to converge,” Sadi says. “Barstool Sports is really a social community. Do people use that community in a betting context? Is that why they are on that platform? ESPN is in contrast, it’s a pure sports product.”

“[Convergence is] a term used a bit too loosely in our industry.”

Sam sadi, livescore group CEO

The LiveScore CEO says he doesn’t view similar convergence products as direct competition. “It’s a term used a bit too loosely in our industry.”

DAZN, The Score and Fanatics are all navigating convergence in their own unique way. Indeed, Sadi says the former is targeting a slightly different audience to LiveScore and he believe its betting offering is supplementary to their media capabilities.

“We don’t focus on the [other] convergence operators much. Some are different in terms of the audience they target.” Instead, the target audience is LiveScore media consumers that are betting across different apps. “We need to see if there is a way we can deliver better value to them.” This is particularly relevant in the UK’s mature and highly competitive betting landscape.

“At the receiving end of that audience you need to have a sportsbook that is just as good or better than the market leaders. Just because your audience loves your brand and spends time consuming your content, [they won’t] downgrade their sports betting experience.”

The 90-day initial window of preference opened in May. For a while, it appeared the number of applications would fall well short of industry expectations with just Kaizen Gaming-owned Betano applying by the end of June.

However, the publication of the remaining ordinances sparked an acceleration of requests, with 108 of the 113 applications coming after the final ordinance on sanctions was announced on 31 July. Notably, the much-awaited Normative Ordinance No 1,207 on online games clarifying which games would be allowed was one of the last to be published.

The total number of applications fell short of the 134 operators who expressed their interest in gaining a licence earlier this year. However Neil Montgomery of Brazilian law firm Montgomery & Associados believes the government will still be delighted with the figure.

“The prizes and betting secretariat (SPA) of the ministry of finance must have released fireworks in Brazil when the tally of applications for a federal licence comfortably surpassed 100,” Montgomery tells iGB.

“The total number of applications exceeded multiple times the SPA’s expectation of receiving around 40 applications. This is, therefore, very good news for the federal government, since it will show a sound interest in the Brazilian regulated market.”

Significant interest in Brazil betting market

The Brazil gambling industry is set to be one of the most exciting in the world, with a recent International Betting Integrity Association (IBIA) report predicting the market could hit $34bn (£26.8bn/€31.1bn) in sports betting turnover by 2028, with an onshore gross win of $2.8bn.

The high number of applications is made even more significant by the obstacles facing operators, including a BRL30m (£4.2m/€4.9m/$5.5m) licence fee and intensive regulations on accreditation and maintenance.

Such regulations caused some industry concern over whether there was a place for smaller operators in the market. Yet Bichara e Motta Advogados’ head of gambling & crypto, Udo Seckelmann, believes the tally of requests indicates the potential is just too vast to ignore or delay entry.

“This clearly shows that the igaming industry in Brazil craves for a professional environment, with clear rules and legal certainty,” Seckelmann says.

Will the review process run smoothly?

However delays have often slowed Brazil’s journey to legal betting. It’s therefore understandable the industry holds some reservations over whether the application review process will complete by the 1 January 2025 launch date.

The final regulations were published within three weeks of the 20 August deadline, and the large tally of applications will need to be processed within just over four months.

According to Montgomery, the SPA has plans to deal with the sheer number of requests.

“In a recent meeting I had with the federal regulator and his team, I was informed that the SPA will reach out to applicants within 35 days of their applications being submitted to let them know whether the documentation submitted is in order or whether anything needs to be adjusted or supplemented before the ministry of sports receives the application to give its opinion on the same,” he explains.

Seckelmann believes there may also be flexibility over the “transition period” for operators to gain authorisation so the regulator can apply the necessary scrutiny to applications.

Challenges and concerns

In addition to how the Brazilian government handles the review process, some in the industry are also concerned over whether the regulation will stamp out the black market.

IBIA’s study warned stringent market restrictions in Brazil could lead to $18bn a year being wagered offshore, to the detriment of player protection. This could also result in over $1bn in lost tax revenue between 2025 and 2028.

Seckelmann is keen to see how effective the Brazilian government will be at handling offshore operators. Normative Ordinance No 827 clarifies those active without a licence by the start of the New Year will face sanctions.

“We will have to wait and see whether the federal government will stick to its promise of fiercely enforcing the current legal framework against the black market as from 1 January 2025,” Seckelmann states.

“The SPA has publicly said that it will have the necessary tools to do so. We will simply have to wait and see.”

Ongoing opportunities

Montgomery was shocked by the large number of applicants due to the “very demanding compliance structure”. One of his clients, a large multinational group, decided not to progress its application due to the high costs and licensing requirements he says.

Operators will still be allowed to apply for a licence, although they may miss out on the initial betting interest that usually comes with the launch of a legal market, especially one the size of Brazil.

Montgomery feels some are simply biding their time, preferring a patient approach.

“We are bound to see important players not having applied at this point, which does not necessarily mean that they will not apply at all,” Montgomery continues. “It may well be that they will wait to see what happens next before taking the decision to file their application.”

Are Brazilian state lottery licences an alternative?

An intriguing alternative to the federal licence is a state lottery licence. While states including Parana and Paraiba have certified sports betting and gaming operators, Rio de Janeiro’s state lottery Loterj dominates these discussions.

Loterj has come under fire from some in the industry for what is seen as overstepping its reach. It allows those with a Loterj licence to operate nationally through what Montgomery describes as a “much cheaper and less demanding licence”.

Montgomery feels it’s an attractive route that some operators will take. And Loterj reportedly received close to 50 requests by the time its latest application window shut last week, despite an ongoing court case contesting the legality of the lottery’s actions.

“While Loterj’s ‘extraterritoriality’ is currently being challenged in court, it may well be that a long time will pass until the matter is definitely settled by Brazil’s high courts, which could well mean that such a state licence has the potential of providing its holders with the expected returns,” Montgomery explains.

“For those not interested in the federal licence, it may be that Loterj will be opening another licensing window in the near future, especially to attract such type of operator.”

Brazil government’s revenue targets

Amid evangelical opposition and fears over gambling addiction, one of the key points for proponents of legal betting in Brazil lies in the economic benefits.

While the tax revenues won’t be fully experienced until 2025, the licence fees alone will prove beneficial for the government.

“In general terms, if all licences are ultimately approved and issued, this will represent a significant financial contribution to the federal government’s coffers still in 2024,” Montgomery says.

“I am sure the Brazilian government will be pleased with the number of applications and the initial revenues they will generate, remembering that each licence costs BRL30m.”

For Montgomery, the number of requests is an indicator of the effectiveness of the implementation of regulation, especially in regards to the objective of generating state contributions.

“This is confirmation that the Brazilian government has done a good job in attracting as many players to the regulated market as possible,” Montgomery suggests. “They will certainly be on the right track to meet their tax revenue targets.”

This is only the start, though, and despite the excitement over the Brazilian legal market, the US may act as a cautionary tale. High profile operators such as 888, Super Group, Wynn and Kindred, are now tapping out after heavy investment did not translate into a profitable share of the market. This should serve as a helpful warning that exciting new markets don’t always play out as smoothly as predicted.

“Now, we have to wait and see whether those operators will be successful and maintain their operations in Brazil,” Seckelmann concludes.

“I believe anyone should aim to have at least 10% market share in Brazil long term and we aim to be a market leader,” Bardun explains. “To be considered among the top brands, I think you need to have at least 10%.

“We know we’re probably far off that at the moment, but if you consider pound for pound what we have done in Brazil because we are coming from very humble backgrounds with very small investment into the company and to be able to compete with the big boys, we are very confident that we can achieve this.”

KTO filed its betting licence in July, within the initial 90-day window of preference which closes tonight (20 August). This means it will be among the first licences approved and launched by the 1 January 2025 target date.

Brazil is set to be a hugely competitive market, with giants such as Betano, Bet365 and Flutter’s Betfair joining KTO in the list of companies that have applied for a betting licence.

A March International Betting Integrity Association (IBIA) study estimated sports betting turnover could reach $34bn (£26.8bn/€31.1bn) by 2028, with onshore gross win potentially standing at $2.8bn.

KTO exits Peru and Chile to focus on Brazil

ENV Media published a survey on brand recognition and market share among betting brands in Brazil in July, placing KTO as the third most well-known and trusted brand for 9.1% of its surveyed readers.

ENV analysed operators’ social media followings, website traffic and keyword prominence on Google to determine its results. The data did not take into account actual account users and active players across the brands surveyed.

KTO fell only slightly behind Betfair (9.5%) and Betano (9.4%) in the survey.

To reaffirm it is focusing all efforts on Brazil ahead of its licensed betting launch, KTO pulled out of both Chile and Peru earlier this year, although Bardun said he could reconsider launching a regionally licensed product in Peru in 2025.

Bardun believes the headway the company has made in Brazil already stands KTO in good stead to progress, particularly on the recent growth of online casino.

“[Igaming] is growing and I think it will continue growing because the Brazilian market is still in its infancy at the moment,” Bardun says.

“It’s still learning about betting and we can see the the growth of online casino over the last two years. Betting now is turning more to casino, so I think there’s a lot more room to grow and mature.”

Hard work pays off in Brazil

Bardun believes the company’s humble origins and clear localisation strategy mean it is well-placed to gain market share.

“The one thing I am most proud of is that we are outworking everyone,” Bardun says of the group’s determination.

“It’s about outworking everyone because, if you can’t outspend, you have to outsmart and outwork. And I think that’s what we have managed to do so far.”

Delays to regulation could hinder larger operators?

Brazil’s journey to a legal market certainly hasn’t been straightforward and the final regulations were published within just three weeks of the 20 August deadline for prioritised applications.

In Bardun’s view, the 90-day window wasn’t long enough and instead should have been “at least 180 days” and preferably six months.

Earlier this year, over 130 companies expressed interest in the market although, with hours to go until the deadline, it looks unlikely to reach that figure. Latest government data showed less than 100 applications had been submitted at the time of writing.

“There’s a huge laundry list of things that needs to be done before 1 January,” Bardun declares. “And we are lucky because we are only operating in Brazil at the moment so we can put all our resources into this, but I can imagine the complications there for big organisations that have massive road maps planned ahead.”

And yet, such a historic footballing nation has seen its most treasured sport thrown into disarray of late.

The row erupted when American businessman John Textor, owner of Botafogo de Futebol e Regatas, made allegations of match-fixing against São Paulo players. Textor claimed he had evidence they were bribed in a game against Palmeiras in which they lost 5-0. In addition, the owner said he had a recording of a referee being bribed.

Textor’s accusations sparked a furious response. Senator Jorge Kajuru asked federal police to summon Textor within 24 hours, claiming he would “have to be arrested” if his evidence wasn’t sufficient.

A parliamentary inquiry commission (CPI) on sports betting was set up to investigate match-fixing allegations. After Textor reiterated his claims, Palmeiras president Leila Pereira said the Botafogo owner should be banned if he didn’t present evidence. Kajuru went one step further, saying he should be expelled from Brazil altogether if the allegations weren’t found to be true.

This took a turn in July, when the Superior Court of Sports Justice (STJD) dismissed Textor’s allegations as “worthless”. The Botafogo owner came back claiming the auditor that produced the response was biased.

A real spat then, and one that comes after Brazil ranked third for suspicious sports betting alerts in the International Betting Integrity Association’s (IBIA) 2023 Integrity Report with 11 notifications, all of which came from football.

Storm at an inopportune time

The ongoing controversy over match-fixing is made even more tumultuous when considering Brazil’s status as an upcoming regulated betting market.

After years of delays, Brazil is finally set to launch its legal sports betting market on 1 January 2025. Unease over the integrity of Brazilian sports is therefore hugely worrying for regulators and other stakeholders in the market.

Rafael Marchetti Marcondes, chief legal officer at Rei do Pitaco as well as the Brazilian Institute of Responsible Gaming (IBJR), believes such concerns could harm the overall health of the market, calling for immediate action.

“The manipulation of results, if not fought efficiently, tends in the medium and long term to generate a discrediting of Brazilian sport,” Marcondes tells iGB. “After all, manipulation removes from sport a central element: the unpredictability of the result.”

For operators, harm to the market would potentially cut into profits from what is set to be one of the most exciting sports betting jurisdictions worldwide.

A recent IBIA study estimated sports betting turnover in Brazil could reach $34bn (£26.8bn/€31.1bn) by 2028 with an onshore gross win of $2.8bn. The state would also be missing out, with the IBIA predicting tax contributions could hit $2.3bn in 2025, which is expected to be the first year of legal operations.

Why is Brazil seen as prone to match-fixing?

To find out how to fix manipulation issues, the ‘why’ of Brazil’s perceived problem comes into focus.

In 2016, the Brazilian Football Confederation (CBF) carried out a study on player’s salaries. The survey found 82% of players earned a maximum of BRL1,000 (£139.08/€161.82/$176.76) a month.

While it’s reasonable to expect wages to have progressed since 2016, Sportradar’s integrity partnership manager for Brazil Felippe Marchetti believes they are still a match-fixing factor.

“Economic instability at clubs and leagues and its resultant impact on the salaries and well-being of players, coaches, officials and even club executives can make them more susceptible to match-fixing approaches by organised crime groups and other opportunists as a means of making up for lost revenue,” Marchetti explains.

IBIA CEO Khalid Ali agrees low salaries make Brazilian players more vulnerable. Making players aware of the risks of manipulation is therefore crucial to solving the problem.

“Educating players and match officials is vital,” Ali explains. “IBIA is very aware of the positive impact this has from the many education projects we have been involved in, notably across Europe, and more recently North America with our commitment in Canada.”

Is it that bad?

It must also be noted however that Brazil is not the only country facing problems with match-fixing.

The UK for example led the way for suspicious alerts in the IBIA’s 2023 Integrity Report with 31, while the Czech Republic was second with 18, seven ahead of Brazil.

However Marcondes suggests criminal action relating to manipulation in Brazil seems higher than other places due to the sheer amount of games played in the country.

Ali agrees that Brazil’s role as a footballing powerhouse is largely responsible for its perception as having problems with match-fixing. “Brazil has a huge football pyramid which results in a much larger number of games being offered for betting relative to most other countries,” he says.

“Those matches are offered in betting markets around the world; it isn’t the availability of markets that is the issue, in fact the oversight it provides is part of the solution.”

For Marchetti, the lack of previous attention granted to prevention of manipulation has led to the ongoing problems.

“A lack of constant preventative measures, and the lack of historical regulation over sports betting in the country, plus the domestic set-up of football in Brazil, has enabled it to become a target,” Marchetti explains.

“The fact is that football in Brazil is now understanding that measures can be put in place and the football authorities are looking to deal with the issue more seriously in collaboration with other organisations.”

How is it rectified?

With a legal sports betting market coming soon, an understanding of how Brazil solves its problems with match-fixing becomes vital.

The CPI on sports betting is a step in the right direction and its president, Jorge Kajuru, says it will undertake the necessary work in collaboration with the Executive’s regulation to try and stamp out manipulation.

“The CPI can only have a positive impact,” Kajuru claims. “After all, the objectives of the two powers, of course, are the same, to ensure the integrity of football, an immense Brazilian cultural heritage.”

Kajuru agrees the number of games played in Brazil is a factor in its higher occurrences of match-fixing. He also feels though that punitive measures will not entirely solve the issue. “It’s a significant number [of allegations], which requires investigation so that the evidence is confirmed or not and those involved punished rigorously,” he continues.

“Punishment does not necessarily prevent the commission of a crime. This is part of the human condition. But the existing punishments are strict.”

For others, such as Marchetti Marcondes, the establishment of the CPI is just the first step necessary to fight match-fixing fears.

“We have to see the CPI only as a beginning of work, which should involve many other bodies, such as the federal police, the public prosecutor’s office, federations that organise the sport, clubs and society in general, in addition to the sports betting regulator.”

Sportradar’s match-fixing assistance

Sportradar is one of the companies leading the fight, including providing its bet monitoring services to Brazil’s top two divisions in both men’s and women’s football, as well as the Copa do Brasil tournament.

Such is Sportradar’s work in Brazil that Marchetti was called in front of the CPI in June as a witness to discuss match-fixing.

In his appearance, he highlighted education for players as a key solution, while notably saying Sportradar found no anomalies relating to manipulation in the company’s analysis of the games that Textor claims were fixed.

“As I stated to the CPI senators, I trust the Sportradar Integrity Services method, academically validated by CAS (Court of Arbitration for Sport) and The University of Liverpool,” Marchetti says.

“According to our methodology, nothing was found in the matches in question.”

The education Marchetti is calling for is already underway. In June, for example, Genius Sports launched an initiative with Botafogo, Textor’s team at the heart of the match-fixing controversy, aiming to inform players of the related risks.

Is enough being done to stamp out match-fixing in Brazil?

While the CPI is a sign of progress, with the legal sports betting market potentially less than five months away there’s a pressing need for match-fixing fears to be alleviated.

The IBIA’s work is a “clear and effective deterrent” in Ali’s view. It’s also been made mandatory for sports betting operators to join an independent integrity monitoring body.

For Ali, though, there’s still more to do in terms of interested parties working together.

“That must be underpinned by a wider collaboration between all key stakeholders to ensure that we are clear about the challenges and able to develop solutions,” Ali says.

Marchetti Marcondes believes it won’t be an easy fix, with further help needed for regulators to combat the issue.

“Today, the regulator’s major challenges are twofold.

“One is lack of resources to be able to invest in technologies that allow for more efficient combating of cases of manipulation, and two is lack of personnel and qualification for the team responsible for the subject. It will be necessary to invest time and resources to overcome these problems.”

Data and technology the weapons to fight match-fixing

A common belief is that technology and data is perhaps the most prominent and convenient tool available to ensure sporting integrity.

This forms part of Sportradar Integrity Services’ “holistic, multi-faceted” three-stage life cycle of how to approach match-fixing.

Prevention is the start of the cycle, with education given to outline the dangers. Second is monitoring and detection, where technology such as Sportradar’s AI is able to process over 500 data points a game using betting data to confirm “otherwise undetectable” suspicious betting activity. The final step is intelligence and investigation, for which Sportradar has a dedicated unit.

That three-pronged strategy is no doubt useful, although Marchetti is keen to emphasise the importance of other stakeholders’ own strategies to help in the overall battle for sporting integrity in Brazil.

“These three solutions are vital components to a successful strategy against match-fixing. However, it is the way that the specific sporting federation, or preferably a national regulator, implements their strategies that has the greatest impact.”

The fight against match-fixing in Brazil continues

While it may be Brazil’s footballing-mad culture itself that leads to its high number of detections, even one case of match-fixing is too many, especially when trust in a high-potential sports betting market is at stake.

There is a general optimism though that Brazil is on the right path towards stamping out cases of manipulation.

Regulation will help, as will the type of collaboration seen recently with Genius Sports announcing a global sports integrity partnership with the IBIA.

The acknowledgement that there is indeed a problem with match-fixing in Brazil is a key step and Marchetti gives the government credit for taking action that is already paying dividends, albeit on a short-term basis.

“So far, we have good news,” Marchetti says. “In the first half of 2024 there was a 60% reduction in the number of cases compared to the same period last year. We hope that our work and the awareness of those involved will contribute to the growth of these positive numbers in the country.

“Politicians are showing that they are concerned about the problem and that they want to collaborate to protect one of the cultural heritage of the country, football. Moreover, increased visibility of the topic and deepening investigations tend to ward off manipulators from the country.”

Brazil’s football betting market is at a critical juncture with match-fixing allegations threatening its integrity. However, with efforts from the CPI and various stakeholders, there’s optimism that collaborative measures and technological help will safeguard the market’s exciting future.

Does the gambling industry need another group that purports to fulfill some major role, but in reality does very little? Surely that box is ticked by most of the trade associations? It seems that the ROGA may be a different beast, so the answer could be yes.

ROGA started in March with seven members – BetMGM, Bet365, DraftKings, Fanatics Betting & Gaming, FanDuel, Hard Rock Digital and Penn Entertainment. Bally’s joined in June. It’s basically most of North America’s heavy hitters. But can they achieve anything, or is this just another smoke-and-mirrors group designed to make it look like the industry is behaving responsibly?

The group points to five pillars on which it is built: research, consumer and industry education and awareness, promoting best practices, building an independent data clearinghouse and creating an independent certification programme.

Dr Shatley’s credentials are very impressive, with 25 years in the responsible gaming (RG) field. As she explained, she spent “17 years at Caesars as their vice-president of responsible gaming policies and compliance; I created everything that they do across all of the casinos and then in the online spaces that were there at the time.”

Shatley, Caesars “trailblazers” in responsible gaming at Caesars

Is time served enough to impress? For much of Dr Shatley’s service to Caesars, the focus was on the land-based customer. She didn’t spend much time considering online gambling, which is where the US is seeing mounting issues and opposition.

Dr Shatley says that because of her varied background, she sees the responsible gaming through many lenses. This will be invaluable because ROGA is committed to pioneering research for the sector. She said: “I understand responsible gambling from an operations perspective, which I think is important: how do you action research? How do you translate it into that space? I was fortunate enough to do a lot of things first in the field; things we take for granted in RG today we started at Caesars.

“For example, proactively engaging with guests around responsible gaming, having conversations with them to try and change behaviour, because it’s all about prevention; the first technology, the first RG-specific ad campaign… I’m not going to say we were pioneers because that makes me sound old! But we were trailblazers.”

Dr Shatley brings multiple views to RG

Dr Shatley’s history of ploughing new furrows bodes well for the organisation, certainly. Too many conversations around responsible gaming now are the same people and groups having the same conversations, but in different locations. So what of the doctor’s lenses?

Dr Shatley brings experience in research, worked at the International Gaming Institute and has a PhD in public policy. Those experiences, along with working in the problem-gambling arena give her a unique set of perspectives.

“What should we be doing not only in venues, but outside of platforms and operators?” she asks. “I’ve also been the president of the Nevada Council on Problem Gambling for quite some time. So I also look at it from an advocacy perspective as well. I have a lot of different lenses.”

$20m in funding seems like a good start

With this kind of depth to her background, it certainly appears that ROGA might be different. The group started with a declaration of $20m in funding from the original seven founding companies. Dr Shatley did explain to us how the funding was divided between the contributors. Where it would be spent was yet to be properly decided. When we spoke, the association was in only its first few weeks of life. But $20m seems to be enough to get through year one and have an idea of where to place funds for maximum efficacy in future.

One of ROGA’s core tenets is research and with eight operators now on board, the potential for research data is colossal. Dr Shatley agrees.

“How do we move knowledge forward?” she says. “How can we enhance programmes with these evidence-based best practises? And to do that it’s driven by research.

“We’re also looking at building a data clearinghouse to see how we can share data, not only among our members but among the research community. How can we better protect consumers? There’s a lot of things we have to work through in anti-trust, privacy laws, confidentiality, jurisdictional issues.… But we are on a long-term vision and looking at how we share information across a variety of platforms so we can enhance these programmes.”

Sharing information crucial

Dr Shatley believes the US is a challenge because each state has its own laws and regulations.

“So we will be working with regulators and legislators to see how we can best share information,” she explains. “Overlaid on that are federal rules on confidentiality, privacy and those things, there are layers to this that we will have to work through. But it’s an important component and we have to understand it in order to better share data.

“There are some movements in the US of regulators trying to work together more and so we would definitely want to work alongside them to see how we can navigate some of these legal hurdles and put in more robust sharing mechanisms.”

ROGA already moving forward, but research takes time

As for when we might see some returns on this, how long is a piece of research?

“We have five pillars, there is a lot of work going on to move these forward,” she says. “We’re working on the research framework and getting some research moving. But it will take time, obviously, and this one will take a little more time because we have to rely on conducting research to understand what those best practices are. We can look at existing research as well and start the development of that. But we’re moving forward with all of our components and initiatives.”

There are many critics of responsible gaming as it currently exists, with many recovering addicts particularly scornful for a number of reasons. Effective marketing and communications is giving the right message in the right language and right media, at the right time. But I’m not sure RG efforts at present are hitting any of these, never mind all of them.

Responsible gaming must be tailored to online space

Is there the potential for ROGA’s work to address this? Dr Shatley says: “Absolutely. That’s one of the driving factors as to why ROGA was created. This is an incredibly important issue and I have dedicated my career to it, it’s a fascinating and complicated field.

“Our members understood that they could do more to advance the field collectively than individually. And we’re not looking at keeping the status quo. We’re really focussed on research because we want meaningful initiatives and we want to enhance what we’re doing. We don’t want to just take what’s historically been done in a land-based environment, we want to understand how to better tailor these programmes and create best practices specifically for the online space and look at how you integrate this more into the customer experience, instead of it being a stand-alone programme.

“Responsible gaming is constantly evolving and we should be innovating and looking at how we can evolve and enhance along with the knowledge base – but we have to build that knowledge base.”

Responsible gaming tools should be for prevention

One major issue for RG tools is that they’re incorrectly seen as resources for people struggling. They are viewed as being for those who already have issues developing, rather than to be used as prevention tools.

“The idea is, all customers should be engaging in these responsible gaming programmes, they’re the target, these are designed to prevent problems from developing and not waiting for a problem to develop,” Dr Shatley adds. “But because of the way they have been branded and positioned, the majority of customers ignore these programmes because they think it’s about problem gambling and it’s not relevant to them.

“How do we position these so people understand they are for everyone, they’re not just for people who are already struggling.”

To a large extent, this is also how the tools are treated by operators. This is demonstrated most fully by not incorporating them into the sign-up process for each player. Is there scope for something as bold as this to be undertaken by ROGA’s founders?

Goal is to do better than just what is required

Dr Shatley shies away from anything so direct.

“It’s a variety of things for interacting with and educating consumers around this, but policy is extremely complicated,” she said. “We have to understand, if we are putting things in place, are they having the effect that we want? There has been research that has shown mandatory tool usage has caused people to set limits that are considerably higher than they normally would play and that can lead to them playing more as a result.

“That’s an example of nuance and why research is incredibly important. If we’re putting things into place we need to understand the effect they will have – a positive effect, an unintended negative effect, or none. We need an evaluation framework for this, to be able to adapt things if they are not working, so being more nimble. Not, when something is set in policy, doing that regardless.

“What we are trying to do with ROGA is create those evidence-based best practices. I don’t believe in just operating to compliance and I never did that at Caesars; we always operated well above any regulatory framework and that way, no matter what market we went in to, we were able to exceed expectations and that’s what we’re looking at with ROGA. How can we raise the standards for our members and also raise standards for the industry?”

Research should focus on those who gamble without issue

There is research out there (by Dr Michael Auer and others) showing that operators and players can have a longer relationship without addiction issues when players are “cared for” by the operator. But that seems to be ignored by many in order to meet quarterly profit reports and dividends.

Dr Shatley shared this insight when I put that question to her: “I do believe that historically, when we have been developing responsible gambling programmes, we have been looking at those that develop problems and trying to back into prevention programmes.

“I do agree that what’s missing in research and one of the areas that I would like to focus on, is looking at those individuals that do not develop problems; those that are engaging in a way that’s not harmful. What can we learn from them in a prevention perspective? What are their protective factors? Are there messages that resonate with them? What can we build prevention programmes around?”

At the same time, the programmes in place should also include a way to act on concerning behaviour.

“Once you identify [risky behaviour], you need to do something about it. What are the best things to do? We need to understand that. And AI is developing, there is a lot of potential there but we need to understand what it’s identifying, how and how to use it in an ethical way.… There are so many factors.”

Players are also responsible for their actions

Sustainability is a critical piece to the long-term success of the industry. But to Dr Shaley the responsibility doesn’t just fall on the shoulders of operators.

“The individuals also share a role in the decisions they make,” she says. “It’s something we should be driving with evidence, research and understanding what all of these different intervention methods should be, the consumer behaviour around them because that can be tricky as well… it’s a multi-faceted issue and there are a lot of things to look at.

“But that’s the exciting part of ROGA as we delve into these things. We want to delve into the research, we want to move forward these best practices and understand how to do this better. That’s what we are gearing up to do.”

Fellipe Fraga, chief business officer at local operator EstrelaBet, predicts operators may be waiting for the final regulations to drop in July before formally applying for a licence.

“There are still important topics that need to be discussed in the process of obtaining the licence,” he says.

“The remaining ordinances will contribute to the definition of the strategies that companies will adopt in the regulatory process.”

Fraga says EstrelaBet is seeking further explanation from the ministry of finance’s secretariat of prizes and bets (SPA) on how to achieve a safe and responsible betting market before it submits its application.

“It is still necessary to wait for important confirmations from the regulator, especially regarding the understanding of some points and concepts that will allow greater clarity as to the necessary steps and intended advances so that Brazilians can have fun with the games, always responsibly,” Fraga explains.

The companies that apply within the 90-day initial window, which shuts on 20 August, will be placed at the front of the queue for assessment and ensured that their application is processed by 1 January 2025. After that, punitive action will be taken against active operators that are yet to gain a licence.

Kaizen’s first mover advantage in Brazil

At the time of writing, Greek operator Kaizen Gaming was the only operator to have submitted its application.

Hugo Baungartner, CCO of Aposta Ganha, notes Kaizen’s leading position in the country’s grey market. “They wanted to be the first,” he says. “I know because they’ve preparing everything since forever.”

Kaizen signed on as a sponsor for the Copa America football tournament this summer via its Betano brand, to boost its growing presence in LatAm. It also sealed a sponsorship deal with the top football league in Argentina, in May.

Uncertainty and compliance delaying the process

Overall, Baungartner anticipates between 20 and 25 operators will apply for licences before the August closing date, believing the 90-day period given by the SPA is enough time for companies to get their affairs in order.

“The homework is doable and operators still have time to show certification, so I think 90 days is enough time,” he says.

“[Although some operators] want to make sure all the ordinances are published by the government before the final date for applications.”

He says the remaining 43 days of the window for priority should be long enough for operators.

But, on the World Series of Politics podcast, Baungartner said some of the smaller operators would not be able to afford the BRL30m (£4.3m/€5.1m/$5.9m) licensing fee, noting that the grey market would always be present in the country.

“Some of them don’t have the $5.9m to apply and they are comfortable as they are. I think the grey market will always be there,” he says.  

Many industry commentators have expressed concern that the application process requires extensive input that could delay operators beyond the 90-day window.  

Fabio Ferreira Kujawski, lawyer and partner at Mattos Filho, believes the 90 days is insufficient considering “the series of bureaucratic obstacles” operators face.

There is also some general confusion around exactly what the specifications for applying for a betting licence are. 

“In my opinion, the understanding should be changed so that companies that have not formally requested their authorisations by 31 December 2025 should be considered irregular (illegal).”

Hurdles to overcome

These “bureaucratic obstacles” for applicants include a local headquarters, a local subsidiary with a Brazilian national holding a minimum of 20% of the share capital (for international firms), and a financial reserve of at least BRL5m ($915,719) beyond the licence fee.

The ordinance on licensing also outlined an extensive series of technical and security requirements.

Baungartner points to the upcoming publication of the online gaming ordinance in stage three of the regulatory rollout as a key tipping point for licence applications, as it will provide clarity around which online games can be legally offered.

He also believes the extensive compliance required by the regulator is warranted as it “wants to do things right”.

“They’re making sure labs that are approved for the Brazilian market know exactly how to certify the games included in the ordinance,” Baungartner declares.

Fraga expresses sympathy for the regulator and the complexities around introducing a legal betting framework, but he also feels further delays could prove detrimental to a responsible industry.

“It is possible to understand the regulator in this process,” Fraga continues. “However, any day less [until regulation] harms the country itself, leaving it further away from obtaining the resources from the taxes and also having the rules defined for the market to start fighting practices contrary to what is expected of good behaviour.”

The requirements

To acquire a licence, operators must satisfy a number of requirements outlined in the published ordinances. These include;

• BRL30m licence fee must be paid. Licences last five years and allow for three skins
• Must be headquartered on Brazilian soil
• Foreign companies must have local subsidiary with a Brazilian owning a minimum of 20% of share capital
• Must have documentation proving its legal right to operate in Brazil
• Must submit compliance declaration for payments regulation with certification from the Central Bank of Brazil
• Joint certificate from the Special Secretariat of Federal Revenue and the Attorney General’s Office of the National Treasury for tax purposes
• All core personnel and beneficiaries must have clean criminal record
• Projected cash flow for next two financial years, signed by finance director or equivalent

Start of 2025 the target for launch

The regulator is confident legal online gambling will go live in Brazil on 1 January 2025, when punitive measures for unlicensed operators will come into force.

Udo Seckelmann, head of gambling & crypto at Bichara e Motta Advogados, said he expects up to 60 operators to apply in the first wave.

“Some of them because of fear of missing out on that first wave,” he says.

“You have to apply and see what’s going to happen because Brazil is the flavour of the month and some of [the operators] are not very certain but they say ok, let’s start this process, see what’s going to happen and eventually if it doesn’t make sense and then we’re not profitable, then we can leave at any time.”

Seckelmann expects mostly foreign operators will make up the majority of the first wave of applicants, followed by local operators in the second. He says overall, up to 70% of betting licence applicants will likely be companies foreign to Brazil.

Confidence remains in Brazil 

While Kujawski, Fraga and Baungartner all pointed to the ongoing regulation rollout as a key reason for the lack of applications, confidence remains in Brazil that an increase in licence requests should be imminent. 

In January, the ministry of finance revealed 134 local and international operators had indicated their interest in a licence by signing pre-market ordinance measures.

Baungartner says Aposta Ganha will apply in the first week of August. EstrelaBet, meanwhile, will apply “when the time is right for the company” according to Fraga.

So, while the scramble for licences hasn’t yet materialised, it does seem the industry is expecting applications to flood in once regulation is fully established, after a long and often drawn-out journey to legalisation. 

The Euro 2024 kicked off on Friday and the Copa América starts this week, while the Olympic Games is set to take place in Paris as of 26 July with Wimbledon and the US Open to come in July and August.

The opportunity for the sports betting sector is clear, as more traction from these events will lead to increased activity across betting sites and ultimately more financial gain.

According to French gaming regulator L’Autorité Nationale des Jeux (ANJ), the country could see close to €1bn (£851.4m/$1.1bn) wagered on the Euro 2024 tournament alone. The German Sports Betting Association (DSWV) also stated up to €1bn will be bet on the competition in the tournament’s host nation.

Kambi head of soccer Jonathon Hurst highlights the huge potential of both the Euro 2024 and Copa América events occurring simultaneously and how it can attract customers.

“Both are expected to generate substantial betting interest for Kambi and our partners, as these tournaments are crucial for customer acquisition, as seen with Euro 2020 when 78% of [betting] newcomers during the tournament had a Euro 2020 bet on their betslip,” Hurst tells iGB.

“Notably, both finals fall on the same day as the Wimbledon men’s singles final, making Sunday 14 July a potential betting bonanza for sportsbooks,” he added.

Best-in-class experience

The surge in betting interest means an uptick in competition across the industry, so the ability to stand out from the crowd becomes increasingly important for companies.

Rachael Kane, spokesperson for Flutter, agrees: “Major sporting events are the pillars around which we pivot. We build our activity around all of it and with so much action ahead of us, we’ve got all hands on deck to make sure we are capitalising on every single one of them, and then some.

“It takes an extraordinary level of skill to pull all of this off, but we’ve got a highly skilled workforce, all personally invested in delivering a best-in-class experience for customers across all touchpoints,” Kane adds.

“Behind the scenes, a huge amount of research, time and energy goes into having the right ingredients to ensure our products are on the cutting edge of what punters want. We engage with them on a daily basis across retail, online and via our social media channels and know them intimately. “

How will companies capitalise?

Betfred is aiming to leverage the UK consumer’s Home Nations interest by offering top price on England to win the competition and on Scotland to qualify from the group stage. Even before that, the launch of a new platform earlier this year has sought to ensure a quicker and easier user experience with Betfred.

But it’s not only the user experience that companies are looking to improve. Companies are also keen to excel at the breadth of unique betting offerings and novelty markets also available this summer.

“There’s so many more markets than there used to be,” Betfred’s head of media Mark Pearson says.

“The build-a-bets are getting more and more popular as well. But what you will find during the tournament, your traditional bets of first goalscorer and correct score bets will be very popular alongside all these innovations as well.”

Home Nation interest

The value a major football tournament provides Betfred is huge as a bet on England to win the World Cup in 1966 helped founder Fred Done open his first betting shop in Salford the following year.

Pearson compares Euro 2024 with the Grand National, noting new customers tend to place bets following the hype surrounding these events.

Both England and Scotland will play in this year’s tournament and Pearson says the presence of those Home Nations is only adding to the expected betting interest.

“You do see the occasional gambler will come in and have a flutter around these big tournaments, especially for the Euros,” Pearson explains. “It makes a massive difference for turnover and obviously England doing well is fantastic for turnover.

“Some of the punters who may only have a bet once or twice a year will come out for a big Home Nations game and maybe have a first goalscorer bet because they’re planning to watch it with a big group of friends.”

Euro 2024 and Copa América offer unique opportunities

Betfred, Kambi and Flutter all point to the summer’s two major football tournaments as the standouts for increasing business across their products.

However, Pearson also highlights Royal Ascot as a key event for the firm as Betfred is its official betting partner.

“Even in a general election year, the Euros can end up dominating the news,” Pearson explains. “It’s very much at the forefront of people’s minds. I think everyone knows that if England do well, the nation gets behind them, interest gets higher.

“Don’t forget Royal Ascot. It’s five days, all the races on ITV as well, so Royal Ascot would be a big focus for us as well.”

Football tournaments are also hugely important for Kambi, with the Euros and Copa América its main targets from a revenue perspective.

However, Hurst expects the revenue disparity from the Euros to the Copa América to be different this year due to Kambi’s growing LatAm focus.

“While the Euros has previously been the clear number one, our recent expansion into Latin America means it should be much closer this year,” Hurst declares.

While the Euros “takes the cake” for Flutter, Kane says the operator will pay close attention to the array of other events this summer.

“That’s not to say we won’t have one eye on everything,” Kane states. “If we see an opportunity arise that feels right for our brand, we are always ready to jump in with both feet. We pride ourselves on being slick, agile, reactive and precise.”

Retention key for future success

The raft of new customers will be a huge bonus for operators and suppliers this summer, but once the final whistle blows on some of the higher-profile events, the ability to retain those customers will be the next battle.

It’s a challenge Kane believes Flutter is up to, even with the wide array of betting options available to customers.

“The industry has become a bit like Tinder,” Kane says. “We’ve got nothing against a summer fling, but once they’ve swiped right on Paddy Power, we want our customers to feel they’ve hit the jackpot, found their perfect match in our brand, fallen head over heels with us, and want to get married on a beach in the Bahamas.”

Products crucial for retention

Kambi has enjoyed previous success in maintaining the activity of customers acquired during major tournaments. The company’s data showed 76% of first-time bettors from Euro 2020 used the supplier again.

Hurst notes the key to aid operators’ own retention strategies is delivering a top product.

“This includes ensuring that any new bet offers launched specifically for big tournaments like the Euros and Copa América are also available for bettors once the events are over and the new domestic seasons start,” Hurst continues.

“It’s also important to showcase excellence across the whole sportsbook, not just for soccer. In order for sportsbooks to retain players they must ensure bettors also enjoy the rest of the sportsbook, where retention rates can be even higher, during and after the tournament.”

Pearson agrees the ability to retain customers Betfred has acquired comes from giving them the best experience throughout the tournament to hopefully entice users back, especially those who aren’t major bettors.

“That’s the key for all online businesses, isn’t it?” Pearson explains. “To give good offers, good customer service, good experience and then hopefully they’ll come back.

“Some of these will only be football punters, so hopefully they’ll come back when the Premier League starts in August.”

Prioritising the punters

Aside from its betting offering, Flutter’s Paddy Power has become known for its tongue-in-cheek marketing. It has kept true to its nature this summer, with a new campaign featuring Danny Dyer humorously playing on the reputation of England’s football fans in Europe.

That consistent tone of voice is key to Paddy Power, with Kane believing the operators’ ability to tap into consumers’ humour sets it apart.

“The guardians of our brand do an unparalleled job in ensuring Paddy’s unique tone of voice remains a consistent source of razor-sharp wit,” Kane explains.

“We seek out those lovely topics making sparks fly among fans. Once we’ve identified them, we dose them in petrol, strike a match, throw it and run away as fast as we can to admire the blaze from a safe distance!”

Alongside its marketing strategies, Kane says one of the keys to Paddy Power’s success is making consumer interactions with the operator as enjoyable and unique as possible. For instance, it held a penalty shootout event in London, flying the five best penalty takers out to Germany for the Euros.

“We put our punters first,” Kane declares. “If they’re entertained, feel informed and feel they can trust us to see them right, we know we’ve done a good job.”

Kambi partners with LiveScore Bet

Kambi is looking to take a multi-pronged approach this summer to achieve its primary purpose of serving its operator partners with a top product.

“Our offering includes new and fully combinable bet types, such as player assists, goal methods such as headed goal and even woodwork-related bets,” Hurst adds.

“To keep things fresh and to capitalise on emerging storylines, Kambi is also offering a large number of daily special markets for each competition throughout the tournaments which can be a powerful tool for operators to acquire and retain customers.”

One of Kambi’s partners is LiveScore Group, supplying its sports betting solution to LiveScore Bet when it rolled out in the UK and Ireland in May, having entered into a sportsbook partnership in October 2023.

“Kambi views our partners as far more than clients to be managed,” Hurst explains.

“Collaboration is key and we work closely with them well before the tournaments begin to understand their goals and develop strategies to achieve them.”

Companies must be adaptable

For the more experienced companies in the industry, their ability to meet and satisfy demand this summer is boosted by learnings from previous major events.

That need for adaptability can be called upon within tournaments. Hurst points to the rise in additional time at the 2022 World Cup as an example of Kambi updating its models in real time, made easier by the wealth of experience the company has.

Help comes in the form of technology, with Kambi highlighting its AI-powered trading division Tzeract as the “driving force” behind its pre-match offering.

“Launched before the 2022 World Cup and now implemented across all major soccer leagues, Tzeract leverages learnings from hundreds of millions of bets to deliver a superior offering during the tournaments,” Hurst notes.

Prior tournament experience is also crucial in informing Paddy Power’s strategy this summer.

“This isn’t our first rodeo,” Kane says. “Having experienced a Winter World Cup in Qatar, another in Russia and several monumental changes such as Brexit and Covid in what feels like the past five minutes we’ve learned to buckle up, be brave, hold on tight and know when to run for your life if you haven’t got a firm grip of things.”

Opportunities aplenty

While the attention of many will be who wins on the pitch or court, gambling companies will be hoping for their own off-pitch success.

As Kane outlines, it’s certainly not the first rodeo for the likes of Flutter, Betfred and Kambi, all of whom boast a wealth of experience that has set them up to attack the packed summer sporting schedule.

The real outcome of the summer of sports for betting firms and suppliers will come to light much later in the year as public companies release earnings reports reflecting on the busy period. For most, marketing, product innovation and thinking outside the box around customer engagement are key to ensure continued increased performance amid a packed sports schedule.

The announcement caused immediate uproar across the UK. For the gambling industry specifically, questions arose about how this might affect the roll-out of the policies outlined in the Gambling Act review white paper, the long-awaited policy document that promised to bring the industry into the digital age.

Despite a number of tedious delays, since its publication in April 2023 there has been notable progress for its proposals.

The GB Gambling Commission opened the first round of consultations in July 2023, targeting four of the most pressing proposals. These were affordability checks, online games design, improving consumer choice on direct marketing and strengthening age verification for land-based operations.

At the beginning of the month, the Commission released the next steps for these proposals. They will be introduced between August 2024 and February 2025. And last week, the department for culture, media and sport (DCMS) published its consultation response for retail-centric measures, confirming that it would remove the current ban on gambling with debit cards.

The general consensus is that the Commission, DCMS and the UK government have made a reasonable amount of progress with the white paper proposals in the last 13 months. But with the ruckus of a snap general election looming, could the temperamental policy timeline be thrown off course?

Bacta throws weight behind land-based proposals

When the white paper was first published, John White, CEO of the British Amusement Catering Trade Association (Bacta) highlighted the removal of the 80/20 ratio as a standout feature.

This rule – included in DCMS’ consultation response last week – will allow casinos under the 1968 Act to raise their number of gaming machines to 80. But this is only if the premises meet the criteria for the sizing conditions of a small 2005 Act casino.

Last week, John Bollom, president of Bacta, urged his members to contact their local parliamentary candidates regarding land-based reforms.

“A snap general election was always the biggest risk to getting the gambling white paper reforms passed into law,” he said. “I am asking every Bacta member to contact their parliamentary candidates – especially the Labour party candidates – to encourage them to support the land-based gambling reforms.

“We will be issuing advice to members on how to do this in the coming days.”

He added that it is crucial that if Labour is ultimately voted into power, they continue the progress of implementing the land-based proposals and supporting “modernisation”.

“It is imperative, if there is a change in government, that Labour finishes the job and supports modernisation of our sector to support both the high street and seaside towns,” Bollom continued.

“The reforms are so vital for our sector. I like to think they may have been delayed, not derailed. Our campaign continues.”

BGC looking forward to working with “whichever party wins”

The Betting and Gaming Council (BGC) extolled the white paper after it was released, calling it a “once in a generation moment for change”. At a committee session in July 2023, Michael Dugher, then-CEO of the BGC, asked MPs to consider the potential impact on the wider industry, as MPs kicked off a review of the white paper.

In a statement to iGB, a BGC spokesperson affirmed that the body will continue its work with the industry to enact white paper policies, despite the looming general election.

“The BGC and our members continue delivering on the measures outlined in the white paper, which was rightly called a once in a generation moment for change for the regulated betting and gaming sector,” said the spokesperson.

“While we await the outcome of the general election, the BGC will continue its mission to raise standards and looks forward to working with whichever party wins at the polls.”

Progress depends on how policies are implemented

It’s important to note that the Commission is not completely in charge of putting the white paper into action. As mentioned above, some policies fall under DCMS, while others will require thorough parliamentary discussion.

David Zeffman, partner at CMS law, says that any progress, or lack thereof, would likely not be affected by whoever is voted in at the general election.

“In principle, there is not a huge amount of difference between the Conservative and Labour parties’ policies on gambling which ought to mean that there should not be a material impact on the white paper’s policies,” he says.

“However, it depends on how the particular policy needs to be implemented. Where implementation is in the control of the Gambling Commission – for example, through changes in the LCCP – then there is no reason why the policy outcome should be affected.”

Measures outside the Commission’s remit were already projected to take more time to implement, as they would need to be brought before parliament. So the announcement of a general election is unlikely to slow things down further, Zeffman continues.

“But where the policy outcome requires parliamentary time, either primary or secondary legislation, there is no guarantee that gambling will be high on the agenda of the next government,” he explains.

“A good example is the government’s recent consultation response on land-based gambling where the proposed reforms are very welcome for land-based operators but those reforms mainly require legislation and it is now not at all clear if or when that will happen.”

Land-based reforms most likely to be impacted

Bahar Alaeddini, partner at Harris Hagan, says the white paper was deliberately drafted so that minimal legislation would be required to implement it. Moreover, the most pressing issues – like affordability checks – don’t require any legislation.

“There is no reason why a new government, which is in broad agreement, should not continue to work through their implementation with the Gambling Commission,” Alaeddini proposes.

But even with these allowances, land-based reforms are most likely to be impacted by the general election, she says.

“Even that limited parliamentary time has proved insufficient and the reforms most immediately impacted by the general election will be the land-based liberalisations – casinos, gaming machine entitlements and cashless – online slot stake limits and the statutory levy,” she continues. “If elected, we understand Labour would be broadly supportive of the white paper reforms, but it will surely have bigger priorities.”

Elizabeth Dunn, partner at Bird & Bird’s, agrees that the Labour party will have more pressing priorities if voted into power.

“We are also unlikely to see a Labour government taking a more liberal position on gambling reform than the current government and so the changes to the land based sector could be at risk,” she says.

Which proposals will be prioritised?

While an all-out stoppage of white paper policy progress is improbable, the general election will have a lasting effect on how it plays out, Alaeddini continues.

“The white paper was a big moment in the evolution of this industry and, while the reset button has certainly not been pressed, the critical and delicate balance that it achieved, between consumer freedoms and choice on the one hand and protection from harm on the other, is at risk of disturbance or delay, with unpredictable consequences.”

The reforms that require legislation might not see progress until September, says Melanie Ellis, partner at Northridge Law. But with so long to wait, which of the proposals are likely to be prioritised?

“I anticipate the new government will want to proceed fairly quickly with the £5 stake limit for online slots, which only requires regulations to be presented to parliament to impose a new licence condition on operators, although the September implementation date will be pushed back,” Ellis suggests.

“I also expect the new government will want to press ahead with the statutory levy. This also can be implemented through secondary legislation, although in this case the structure of the levy needs to be finalised.”

Groes, of course, sits at the head of the table as group CEO. When EveryMatrix was a centralised platform business that meant he was the man in charge.

But that operating model is gone – EveryMatrix now functions as a series of independent business units. This means it spans everything from the core casino business to new verticals such as live dealer and lottery. Each has its own infrastructure and P&L and is at a different stage of growth.

The approach means Groes and his fellow CEOs can offer the sort of vertically integrated solutions others have tried and failed to build. In other examples from gaming, vertical integration tended to involve multiple products existing uneasily as part of a single unit. Say an online casino arm was struggling, for example, the channel-specific unit would drag down performance.

Groes’ approach with EveryMatrix essentially lets these businesses sink or swim as independent entities. They can operate independently, sell independently, but if the BU isn’t performing, EveryMatrix can kill it independently. All this comes without disrupting other units.

“It damn near killed us”

According to Groes, this modular model, which allows EveryMatrix to spin out a range of different vertical-specific businesses, is unique. However, that’s in part because it’s not easy to do.

To restructure EveryMatrix under this vertically integrated model, there were effectively two businesses. One working on developing a new infrastructure for the new model and one servicing the existing customer base.

 “It is really quite tricky,” Groes says.

“You have to keep them happy and essentially run two development teams. One servicing the old product and platform, making sure you still make money and keep clients satisfied,” he explains.

“At the same time, you’re building something completely new. It was very complicated and it damn near killed us.”

Once the redevelopment was completed, though, the reward soon followed: EveryMatrix signed its first Tier-1 client in Norsk Tipping. “This of course was the entire ambition and very gratifying,” recalls Groes.

Structuring a decentralised EveryMatrix business

“Signature wins” such as Norsk Tipping, Groes says, validate the investment and work that goes into the different BUs’ efforts. The individual teams can build towards these deals with a huge deal of autonomy, EveryMatrix chief operating officer Alina Alexandru says.

“They own their products, with their dedicated people to deliver against their roadmap. That removes the long decision chain you go through in a normal IT organisation or software provider. This is where resources are harder to come by because everything reports into one person in the CTO.

Flexibility is built in, she explains, and it’s something gaming businesses need. “We have to change plans quickly. We have to adapt to regulatory frameworks, to new markets being open, or new markets growing or declining over time.

“This means we have to be able to make changes rapidly, adapt and be flexible. I see this organisational structure as allowing us to do that,” Alexandru adds.

But what role does a group COO play in a business with multiple management teams? In effect, as the point of connection between the different BUs, she says.

While each unit has the autonomy and resource to operate independently, Alexandru and other key group executives, such as chief architect Tim Walls, work across the functions. In Alexandru’s case that entails overseeing project management and processes.

Put simply, she’s the point of connection for projects involving multiple BUs, facilitating the strategic goals for more of Groes’ signature wins.

TippmixPro: Sportsbook’s signature win?

While OddsMatrix was the supplier’s first product, EveryMatrix is perhaps best known for its casino and games offering. The sportsbook offering went through a wholesale rebuild from 2018 onwards. Last year’s Tier-1 deals for the Hungarian national lottery’s TippmixPro and Betclic Everest Group’s Bet-at-home arguably provide the same validation as the Norsk Tipping agreement in 2016.

As head of sales for OddsMatrix, Ivan Rozic is tasked with taking the refreshed and renewed product offering and building a customer base. As a challenger to the established sportsbook providers, OddsMatrix is “trying to be as disruptive as possible and bring something to the table nobody else can provide” he explains.

Deals such as TippmixPro highlight the sort of partnerships Rozic seeks. “We’re looking for long-term partners, long-term commitments, relationships where we have a synergistic approach.

“We’re not going to be jumping at every single opportunity,” he continues, arguing the high-profile client wins and technology offering gives OddsMatrix that luxury.

Crucially, the decentralised structure means Rozic leads a dedicated sales team, which is highly educated about the products it sells.

“With other providers, you might have a single sales team covering all of the components, which often enough leads to conversations where you don’t have the answers right away,” he says. “I get feedback from companies that we’re talking to; some of them become our partners, some of them don’t. But everybody claims that they are very happy with the level of conversations that they have with our sales team because they can get the answers there and then.”

Under the BU structure, sales become product experts, he says, to really understand a client’s needs and the nature of the partnership and ultimately whether it’s a fit for OddsMatrix. “This is what’s going to drive us forward, being able to judge from both sides if this is a project we’re both willing to go in on and if it’s going to bring value for both sides involved.”

A concerted push into lottery

The fact EveryMatrix’s two signature wins for sports and casino were lottery operators makes that vertical a natural next business unit to build up. And, reflecting the approach of building around product experts, Nikolina Gabelica joined as head of lottery in January this year.

Gabelica is an established lottery professional. With more than 20 years at Croatia’s national lottery Hrvatska Lutrija in positions such as head of igaming, deputy director and most recently director of business development and marketing.

That B2C experience, she says, gives her an understanding of client needs that helps set the strategic direction for LotteryMatrix. “When you are a pure B2B provider and you don’t have experience of client operations, you lack understanding of the features, the ways of working and the client needs.”

That grounding in the vertical could be key, according to Groes. He sees LotteryMatrix as a potential disruptor to the sector’s biggest names such as IGT and Scientific Games. “That might be me being overconfident on the back of a very good year, but what we can see is this sector is underexposed to competition,” he says. “This is quite clear. The number of operators is not big enough and agile enough to incentivise newcomers in.

“[But] it’s only when we reached our current size that we can realistically say we can take on projects like this.”

Being unique at EveryMatrix

In a sector more traditional and less advanced in how products are marketed there’s more pressure to present something unique, exciting and modern, essentially similar to a casino operator. “[Lotteries] are not keeping up,” Groes says. “They know that very well; they’re not idiots.

“Unfortunately for them they just don’t have the products that allow them to compete.”

EveryMatrix’s decentralised structure comes into play again here. The strong performance of the other divisions such as casino provided the financial muscle to work on the lottery project. That also brought in the lottery client wins such as Norsk Tipping and Veikkaus. “[Then] we said, ‘well if I can handle five or six lotteries, why not also aim for the core product itself?’”

Lottery may be the next big launch, but with a live dealer product already in development, EveryMatrix is continually expanding and evolving. What succeeds becomes a new driver of growth. What fails is shut down with little damage or disruption to the wider business.

As many big businesses row back from a flurry of M&A in pursuit of a simpler business structure, the received wisdom is an end to vertical integration due to the challenges it brings. But EveryMatrix appears to have created a blueprint for tackling that sort of complexity.

“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.”

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.

The end to front-of-shirt sponsorship deals in England’s top division will impact the West Ham partnership, but such a long relationship is increasingly rare. Only three other Premier League teams – Liverpool, Manchester City and Arsenal – have remained with a sponsor for longer.

“I can remember how excited everyone in the company was when we signed the Cheltenham and West Ham United deals,” Super Group chief executive Neal Menashe recalls. “Although nearly a whole decade has passed, that same sense of excitement is in the business.” 

Betway’s gambling sponsorship portfolio is now global. It works with over 60 partners including the NBA’s Chicago Bulls, Premier League side Arsenal and the NHL’s New Jersey Devils. 

According to Menashe, sponsorship delivers an “enviable” level of brand awareness, which in turn helps amortise sponsorship costs across a range of global markets. He estimates almost 60% of all Premier League matches broadcast will showcase the Betway brand in some way, for example.

“The business challenge is how to convert those eyeballs into meaningful customer engagements,” he continues. “Put simply, this industry is all about managing the marketing budget against NGR return. 

“While we are never going to spend 100% of our marketing budget on sports sponsorship, it is imperative to have them from a brand awareness perspective.”

Converting eyeballs to engagement

Super Group must harness this top-of-funnel engagement to turn that user into a recurring customer. Revenue of €1.4bn for 2023 – an 8% rise year-on-year – suggests it is doing something right.

Multiple factors play into this process, Menashe explains, most importantly his Super Group team. “We are innately competitive people who get up every day looking forward to the next challenge,” he says of his colleagues.

“We’re lucky to have a brilliant team that have an unrelenting focus on our customers. In this industry you have to eat, sleep and breathe the customer journey and that is what we do 24/7.”

A long-serving team means there’s an experienced and dedicated group of executives setting the tone. Menashe has been at Super Group since the early days, when what was then Betway Group acquired his marketing, CRM and technology business Win Technologies in 2011. 

His executive team has equally impressive staying power. President and chief commercial officer Richard Hasson has been in position since 2012, while CFO Alinda van Wyk joined back in 2007.

That longevity makes for an effective unit. “The complicated part of any CEO role is that it’s your job to make the hard decisions,” Menashe explains. “Indecision is your enemy. We’ve been in the industry for more than 20 years; we’ve seen a lot and have experienced most things this industry can throw at you.”

This hasn’t bred complacency, rather increased the team’s desire to win, he adds. 

Africa emerging as a crucial region

That winning mentality is critical as Super Group competes on a global scale. With a foot in just about every market, in Q3 its Africa and Middle East segment in particular stood out. North America’s contribution was the largest in the first nine months of 2023, but Africa and Middle East followed with revenue of €298.3m.

“Africa continues to go from strength to strength,” Menashe says. “We now have a footprint of seven regulated countries with a very healthy pipeline [of new opportunities].”

A breakdown of revenue by region for the 2023 financial year isn’t live yet. However, Menashe expects to set new records for African customer numbers, deposits and net gaming revenue. Many markets across Africa are rapidly growing but the continent’s gambling market is “in its infancy”.

“There is immense scope for growth in every market, not just sportsbook but icasino as well,” Menashe explains. “We spotted the opportunity a number of years ago and have carefully built a healthy footprint in key markets and the right team to take advantage of the emerging opportunities. 

“With such rapid population growth, alongside economic advancement, there is significant room to grow both the number of markets and market share, so we expect this growth to continue for many years to come.

“We listen to our customers and ensure that our product reflects their needs. We have experienced local teams who also deliver specialised knowledge to their own product teams to ensure we keep innovating while offering a market-leading service.”

Will Africa become the blueprint for LatAm gaming?

Speaking on Super Group’s 2023 results call, Menashe suggested parallels between Africa and Latin America’s emerging regulated market, a small but growing region for the operator. 

“We’ve been there a long time,” he told analysts. “We are likely to see what the regulations mean in each of the countries, if it is Chile, Brazil or Peru. 

“For us, it’s an important market and the software we use is very similar to Africa. It all bodes well,” he added.

Middle Eastern promise

In these emerging regions, fans watch football. Betway’s partnerships in the Premier League afford it brand visibility around the world, so the company’s investment in England has a net benefit globally. “There are so many benefits from being part of long-term relationships with the teams and leagues we sponsor,” Menashe says. 

But these relationships only work provided the agreements generate returns so Super Group keeps a keen eye on proceedings. “We make a detailed evaluation of any potential deal and continue to do so ahead of any renewal,” he continues.

Menashe applies that same critical eye to new market opportunities, including in the United Arab Emirates where there could be a massive market developing covering land-based, online gaming and lottery. Menashe is keeping an eye on the opportunity but remains noncommittal until he sees the operating conditions. 

“The level of growth will be directly dependent on the tax and regulatory regime that they put in place,” he says. “If they are structured in a way that creates sustainable competition, and access is smooth and transparent, then it has everything in place to be an exciting new market. 

“Indeed, the potential of the UAE, and wider Middle East, despite the obvious challenges, is significant.”

Making the right calls

But a CEO’s job is to make the difficult decisions, he says. That means knowing when to stick and when to twist. 

Many believe India is a sleeping giant for gambling. Its population tops one billion and there’s a huge audience for sports, especially cricket. Considering Super Group’s sponsorship portfolio already includes cricket competitions in South Africa, India feels like a natural fit. 

However, the revamped Goods and Services Tax (GST), set at 28% of turnover, prompted Super Group to pull out of the country. “It’s quite simple,” he says. “We have to make calls when we’re not seeing returns. It is uneconomical to have Indian GST at 28%.”

Some operators invest for the future. They maintain a presence in difficult markets in the hope of conditions improving or lawmakers amending legislation. At Super Group ROI is the watchword, hence its withdrawal from India. 

In Germany, high taxes on casino games prompted changes to its games to ensure an economical return, Menashe adds. “Every market has its own process that you have to go through. And that’s fine as long as you then regulate the unregulated.

“[But] there is no point in putting pressure on the regulated sector if customers are going to decide to go to a sportsbook or casino that doesn’t comply with the rules.” 

Regulation is ultimately inevitable, he says. Super Group welcomes the oversight: the market functions and regulators take effective measures against illegal activity. 

Building a global brand from scratch

Alongside the 10th anniversaries of its Champions Chase and West Ham deals, Super Group also celebrated two years as a listed business on 28 January. It’s an anniversary of sorts for the industry as a whole, too. The first online casino went live 30 years ago, in 1994.

Beyond the inevitability of regulation, what does he see driving progress as online gaming moves into its fourth decade? 

Artificial intelligence (AI) is, of course, one of the key elements of gaming’s future. “We are just in the foothills of understanding what these technologies can do, but I have no doubt that they will have an impact on the way gaming businesses are run and how we evolve interactions with our customers,” he says.

But Menashe is unsure which brands will be around then. The pace of deals picked up in 2023 and in 2024 that pace is likely to quicken. 

“I predict that the industry landscape will be fundamentally different in five years’ time,” Menashe explains. “Although it is imperative that healthy levels of competition are maintained to ensure our ongoing attractiveness to the existing and potential customer base.”

Super Group will remain part of the industry landscape whatever form it takes, he argues. As Menashe says sonsorship brings an international audience to Betway, giving it significant staying power. And there’s room to grow further as more markets regulate. 

After more than two decades at Super Group, he is still up for the fight. 

“We’ve built a global business from scratch,” he says. “A culmination of over two decades of return on marketing spend. Who else can say they’ve done that?”

The National Council on Problem Gambling (NCPG) launched PGAM in 2003 with the aim of raising awareness on the issue. Since its inception, and particularly post-PASPA, the event has marked an important month in the calendar in the fight for responsible gambling (RG). 

Chrissy Thurmond, head of RG relations at DraftKings, hails the influence of PGAM in helping the gambling industry to combat irresponsible play. 

“One of the things that has been really beneficial for the whole industry to see is the impact that PGAM has had across the board, not only with operators, but with academics, with clinicians, with people who engage in the online space in particular,” Thurmond explains.  

“Across the US, I think the knowledge about PGAM and the information around PGAM has really gotten to a place that is quite embraced and people look forward to really engaging with that across the US.” 

This year’s edition also marked something of a milestone for the industry. On Wednesday (27 March), Thurmond’s DraftKings was among seven leading North American operators to join forces and launch the Responsible Online Gaming Association (ROGA).  

DraftKings, along with fellow giants such as FanDuel and Fanatics Betting & Gaming, is committing upwards of $20m (£15.8m/€18.5m) over the first year to support ROGA’s aims of promoting best RG practices and education on the topic. Jennifer Shatley, an RG pioneer who worked on Caesars’ first responsible gambling programme in the late 80s, serves as executive director. 

The beginnings of the gaming expansion backlash 

Not everybody is effusive in their support for ROGA and, as betting availability increases across the US, so does the criticism of the industry.

The Campaign for Fairer Gambling (CFG), for instance, is questioning whether ROGA will make attempts to support the Gambling addiction Recovery, Investment and Treatment (GRIT) act, which aims to allocate 50% of preexisting sports betting excise tax towards problem gambling help. 

A CFG tweet describes ROGA as a “desperate response” to mounting media pressure on operators to do more in the fight for RG. This forms part of a wider backlash from the pressure group looking to slow the pace of gaming expansion, involving targeted press criticism similar to reform campaigners in Great Britain.  

Its ultimate goal appears to be a push for federal oversight, in spite of PASPA’s repeal ultimately making sports betting a states’ rights issue.  

To accept CFG’s arguments is to accept the industry simply can’t do enough to protect its consumers. However, there is a concerted effort, spanning multiple operators, to ensure a higher level of protection.  

Stigma putting the brakes on RG progress 

First, it’s important to consider the challenges operators face in reducing gambling harms. Perhaps the highest obstacle to overcome in terms of US problem gambling is the stigma surrounding the issue. For all of the heightened awareness, levels of problem gambling won’t alleviate if player attitudes aren’t changing towards the adoption of RG tools designed to help players betting beyond their means.

One of the dominant viewpoints raised is that RG tools are seen as only applicable for those with a problem, as opposed to all players utilising them to maintain an entertaining outlook on gambling, rather than a hobby that can get out of hand to financial and personal detriment. 

Rachel Gundy, head of product at Betr, says: “How we’ve historically talked, particularly in the US, is that responsible gambling has been used to refer to problem play.   

“It’s important that we start to reframe or rebrand responsible gaming and player protection so that it means a toolkit and a strategy for everyone, wherever you fall on the spectrum of risk.” 

Rise in awareness a positive

For Jessica Feil, vice president of regulatory affairs and compliance at OpenBet, the rise in awareness of the dangers of problem gambling in the US can only be a good thing as players move from the “shadows” of the black market into regulated play. 

“We’ve seen the biggest expansion of gambling in US history and that has led us to a lot of information and learning a lot about the levels of problem gambling in the US,” Feil says. 

Data pushed by reformists suggests there is a rise in unhealthy gambling behaviours. However, Feil argues this misrepresents the issue.  

“We’re seeing more prevalence of [problem gambling]. Not because there is more prevalence, but because we’re identifying it better, and that’s a good thing because that means we can then take the next step as an industry to get people help and resources that might not have been available to them before.” 

State collaboration can ensure national coverage 

The strongest gambling regulatory regimes in the world largely have overarching rules across entire populations. But the bigger the market the more difficult these are to impose, especially in the US’ framework of 50 sub-jurisdictions.

That may suggest an absence of more comprehensive measures, bringing a number of complexities to the surface. 

Gundy and Feil both highlight the lack of a national self-exclusion list, meaning those who live near borders and self-exclude can often simply cross a state line and gamble somewhere else. 

Betr has its own solution to that problem, however “Betr takes a hard line, so if you are excluded in one state, we exclude you nationally,” Gundy explains. But that’s not mandated by regulations, and it’s an area where states could work together more effectively to protect vulnerable users she suggests.  

Feil adds there is a vast array of different helplines designed to help problem gamblers in their time of need. 

“When you see an advertisement for sports betting on TV or something here in the States, you might see 12, 13, 14 different numbers for help,” she says.  

Progress is being made, through the 1-800-GAMBLER helpline. Operated by NCPG, 1-800-GAMBLER now covers all 50 states and US territories and generally recognised as the national helpline number for problem gambling in the US. 

All about the evidence: The need for further research 

But these solutions are targeting a problem without fully understanding its scope.  

The Gambling Survey for Great Britain (GSGB) was partly designed to ascertain the levels of problem gambling in Great Britain. In other European countries such as Germany and France, extensive surveys have been carried out to establish the number of black market players. 

In the US, though, the NCPG has carried out just two national surveys on gambling attitudes and experiences since 1999. The last came in 2021 and it’s currently unclear when its next research will take place.  

In Thurmond’s view, this is an area that needs rectifying if the US is to fully clarify how common problem gambling is. “Research is a core tenet of a responsible gaming programme and I think supporting research is imperative,” she says. “It’s one of the ways that we are going to be able to understand and glean valuable insights to what is actually happening in the US. 

“We really feel that, in order for us to have an impact and move the needle, we need to be doing what we say we’re doing, which is supporting evidence-based research and supporting the researchers that do that hard work.” 

Research provides the foundation

Gundy believes research on the number of problem gamblers will provide the platform to really drive RG efforts in the US. However, she also feels there should be further studies into aspects such as early education, the effectiveness of specific RG tools and how operators can best communicate with gamblers to drive the most engagement with players. 

For Feil, this research “helps us understand prevalence. It helps us understand trends. It helps us understand who’s most vulnerable and the best ways to support them and help people when they need it. 

“But at the same time, we need to know that they’re effective and that we’re reaching the right people. So, more research is going to continue to be really important so that we can get better at quickly identifying that problem gamblers are getting the support they need.” 

How are companies tackling the problem gambling issue? 

Betr, DraftKings and OpenBet are among the US gambling companies hoping to lead the way in the fight for a safer gambling environment for players, with all three running initiatives to combat problem play. 

DraftKings, for example, has engaged in two RG-driven moves within PGAM alone, looking to help players better analyse their play and overcome the issue it sees in players not having easy access to RG tools. 

The first saw the launch of its My Stat Sheet tool, a resource designed to clearly outline players’ habits and help them to make data-driven decisions in regards to RG. The second was the expansion of its link with Kindbridge Behavioral Health, which will provide clinical help to bettors facing problems. 

Thurmond explains the importance of the two deals in DraftKings’ aim to spearhead the fight for RG. “We feel that this has really planted the flag in the environment so that we have been able to set the standard and really set the pace so that our peers across the industry will join and engage with us.” 

Suppliers take the lead on RG

While OpenBet is a supplier rather than an operator it is taking an active role in reducing gambling harms. Last June it acquired responsible gambling, anti-money laundering (AML) and fraud detection technology specialist Neccton as it bids to expand its RG efforts by overcoming the lack of research on the topic to make it easier to identify problem play. 

Europe-based Neccton has been operational for over 15 years. Feil trusts that experience will prove hugely beneficial to OpenBet’s key company pillars of protecting players, especially in the US. 

“The best thing about it is that Neccton is all driven by academic research and evidence,” Feil says. “You can identify trends and sort of spot what the trouble issues are going to be and start working with them to make sure that they stay on the safe side and make sure it stays entertaining for them. 

“The product has been live in Europe for over a decade. And we’ve been working to educate US regulators and the US industry about the power here and what we could do and how much we can do to really make RG a normal part of player behaviour.”

Embedding RG in onboarding

For Betr, co-founded by influencer Jake Paul, the operator is aware of its particular appeal to younger audiences and has subsequently taken action to safeguard that potentially vulnerable sector since its inception in 2022. 

For instance, Betr prompts all users to turn on RG tools during onboarding, and for those aged 21-25, a monthly deposit limit is set automatically when joining. Bettors are prohibited from using credit cards, while the operator leverages its media arm to push player protection efforts. 

Betr’s efforts are working to some effect, too, with a third of its user base actively using RG tools, showing that stigma can be overcome, especially among younger bettors, by simplifying access. 

Additionally, Gundy explains the advantages of Betr’s recent deal with Birches Health, where players can use a direct link via the settings section of the operator’s app to access betting limits, RG resources and a connection with professional support. 

“It was an opportunity for a really fruitful partnership where if you need to get off this app, we want to get you off the app and get you help,” Gundy outlines. 

Innovation and collaboration can drive RG progress 

Technology is key tool in how companies can identify problem play in a more efficient manner while meeting players in a familiar online environment. 

However, both Gundy and Feil believe there is still potential for technology usage to improve further to help combat problem gambling. 

“We’ve fallen into a historical bias where we’ve had a standard set of tools for a long time,” Gundy says. “We’ve failed to ask the question of if they are still the right tools even though our audience has changed.” 

Feil adds: “It’s a learning process for every company and something we’re constantly inspecting. I think beyond just sort of taking and bolting on these new technologies and things like that, it’s about going back to your core technologies and saying, ‘Right, what does and doesn’t work?’” 

How can operators work together? 

Any successful RG strategy spread across a nation as vast as the US requires collaboration between gambling companies to piece together a safe environment for players to enjoy betting. 

This is an area where Thurmond is of the opinion that real progress has been made, with would-be competitors working towards a common goal, much in the way that ROGA will attempt to do. 

On education, though, efforts must be stepped up between operators in Gundy’s view. 

“The awareness for gambling has risen, but our early education efforts have really remained flat, specifically around player protection,” she declares. 

“So, for me personally, this is an operator call to action where we need to find ways to be advocates and partners with the regulator to drive these early education efforts.” 

“Little steps” of progress 

While Thurmond, Gundy and Feil all agree that progress has been made on RG in the US, they are under no illusions that it’s a constantly evolving process in which there’s still work to be done. 

For Thurmond, technology is set to be the area in which DraftKings focuses its efforts. 

“I do think that DraftKings are innovators,” Thurmond concludes. “I think it will be ever evolving, but I’m really optimistic about the future.  

“I’m really hopeful and very positive in the way the US is taking a look at responsible gaming and incorporating it and I’m looking forward to seeing how innovative we can get.” 

Feil believes every company can always do better, but acknowledged progress can only be made in “little steps”. 

Optimism seems to be high among US gambling companies in the fight against problem gambling, even at a time when the industry faces its first backlash.  

By the time PGAM rolls around again in just over 11 months, there’s a belief that those “little steps” Feil referenced will have been made to further protect vulnerable players with movements such as ROGA.  

Eagle1 Acquisitions Corp, the group of backers for a proposition to legalise sports betting in California, had made several amendments to its ballot initiative in December in a bid to gain increased tribal support, however the efforts ultimately failed.

In response, the California Nations Indian Gaming Association (CNIGA) stated the failure should serve as a warning against future attempts to legalise sports betting in the state without tribal involvement.

However, Giles believes there could be more success when the next chance to launch a legalisation effort comes around in 2026, pointing to the 2027 Super Bowl in Los Angeles as a key reason to get a sports betting bill over the line before then.

“There is most certainly a path to online sports betting in California – and it starts with the tribes,” Giles told iGB ahead of the Indian Gaming Tradeshow and Convention, set to be hosted at the Anaheim Convention Centre in California between 8-11 April. “I don’t think it is inevitable as some people have said recently, but we are seeing positive signs, such as the decision by FanDuel and DraftKings to engage with us at our trade show in Anaheim.

“We are not putting a timescale on when tribes will exercise their sovereign authority and look for that path forward with the state, commercial gaming and the tribal community. It is more important to put measures in place that maintain the sustainability of our communities and the tribal gaming industry.”

2023 a crucial year for tribal sovereignty

The year 2023 proved to be key in the tribal nations’ fight for sovereignty in the US as state governments looked to increase their control over Indian country.

Tribes earned a key victory during the summer as a federal appeals court reinstated a compact between the state of Florida and the Seminole tribe, effectively creating a tribal monopoly in the state for statewide mobile sports betting.

In September, the full US Court of Appeals for the District of Columbia opted against rehearing that case, and the Seminole tribe relaunched mobile betting in Florida in November with its operator Hard Rock Bet. The Florida Supreme Court then rejected a motion from pari-mutuel betting operator West Flagler Associates to suspend Hard Rock Bet.

Tribes then received another big boost in February 2024 as the Department of the Interior (DOI) announced updated federal regulations, similar to those seen in Florida, that boost the “clarity and transparency” of Indian gaming compacts.

Giles hailed the impact of the DOI’s move, stating: “We are pleased that the Biden-Harris administration is demonstrating commitment to Indian country. We’re also very hopeful that they will provide a strong platform for business growth.

“Indian Country is stronger than ever and will, through our tribal leadership, continue to defend the rights of tribal communities.”

The future of tribal gaming

The National Indian Gaming Commission’s annual report showed revenues in 2022 rose 4.9% to $40.9bn (£33.0bn/€38.2bn). That $1.9bn year-on-year gain is the highest ever recorded.

Tribal gaming has certainly bounced back from the impacts of the Covid-19 pandemic, setting the sector up for a prosperous future.

Giles is confident tribal gaming will continue to fare well, while outlining it will work with those who respect its values and offer new ideas.

“Tribal gaming will remain strong through a robust regulatory framework and by taking a sustainable, long-term approach to the industry’s future,” Giles added.

“Tribal communities are open for business and open to new ideas and innovation. We are looking to work with companies who not only understand Indian Country, but who can bring new ideas and new technologies so that we can continue to offer world-class experiences for customers.”

Tribal protection

Despite the continued strength of the Indian gaming sector, fears are still lingering over politicians and other commercial gaming interests looking to get in on the tribal success.

For Giles, however, he is steadfast in his confidence that tribal gaming will continue to fend off its competitors, as long as the community works together.

“Protection will be at its strongest if tribes remain united against anyone who seeks to undermine tribal sovereignty,” Giles continued. “The tribal gaming industry is very successful and has built a highly sustainable industry.

“That isn’t to say that we are not interested in speaking to these companies and their representatives. I firmly believe that a co-operative approach borne out of a respect for our tribal governments and institutions will be beneficial to everyone.”

Visitors included commissions from competitor jurisdictions, advisors to operators and operators themselves, all seeking clarification on what exactly lies ahead for Curaçao. In part, this stemmed from misinformation circulating on the transition process.

“That’s why I’m very happy for us to be here at ICE,” Pietersz began. “Because then we get the chance to provide the right information and set the record straight.”

Setting the record straight is of critical importance for Pietersz. After all, it was incorrectly reported that Curaçao’s parliament had flat-out rejected the incoming LOK. But why did this happen?

This was because communication from the Council of Advice – where all draft laws must be sent before they go to parliament – had suggested that the LOK could not be presented to parliament. This communication was first issued in June 2023, but it was not published until January 2024, which might have led to the misreporting.

Curaçao spent much of last year preparing for the LOK, the legislation that will implement the region’s new regime. Currently, it still operates under the National Ordinance on Offshore Games of Hazard (NOOGH).

As we speak, the LOK is chugging through Curaçao’s parliament, where it was submitted in December. If all goes to plan, it will go to the “full” parliament for more hearings, before being passed. Then the law will be signed and published.

Improving Curaçao’s reputation

Earlier this month, Javier Silvania, Curaçao’s minister of finance made an impassioned speech during the legislation’s first reading. He implored parliamentarians to consider the benefits the LOK could have for the wider economy – and Curaçao’s reputation.

This is a central focus of the LOK, as Curaçao has garnered a reputation for lax anti-money laundering (AML) and know your customer (KYC) policies. Pietersz says the law gives the regulator an opportunity to bolster monitoring in these areas.

“[The law] provides us with the possibility to issue direct licences to operators,” Pietersz explained. “That’s step one. And step two, the law also gives us the toolbox to supervise those entities, especially given the areas of concern, which are AML, KYC and responsible gaming.”

“This was very important to us from the toolbox that we provide.”

So, we see clear benefits for Curaçao’s economy and reputation. But what’s in it for operators?

For Pietersz, it centres on two aspects – firstly, communicating that operators can also benefit from Curaçao’s improved reputation.

“We want to improve our supervision,” he stressed. “That improvement, together with the law and also improving the regulator itself with better staffing and resources; it’ll be to the benefit to the country reputation-wise, but also to the operator.

“It’ll be of value if the operator can say, ‘I’m properly regulated’.”

Secondly, squaring up to competing jurisdictions, such as Malta and the Isle of Man.

“What we want to do is, we want to provide operators the possibility of having a direct licence from the regulator,” Pietersz continued. “If they go to our neighbouring competition there, they can have a direct licence, but we are setting out the record that we can have a direct licence also in Curaçao from the Gaming Control Board.”

Fine detailing crucial for LOK success

Pietersz was keen to confirm the process hopeful licensees must follow to be active in Curaçao’s new-and-improved market. With January’s misreporting, you can’t really blame him.

You also can’t blame him from an operational standpoint. If the industry doesn’t listen up, they could see major licence-holders become suddenly – and technically – illegal in Curaçao.

“From a Curaçao standpoint, it doesn’t benefit the country to have illegal operators,” Pietersz declared.

Here it is, in black and white. Operators that want to continue operating in Curaçao must be registered on the GCB portal by 31 March. After this date, it will no longer be possible to register sub-licences or apply for a direct licence under the NOOGH, if this is needed. And that will be a tedious problem to fix.

“Imagine that you have a sub-licence of a master licence holder, whose licence expires on 31 August,” Pietersz offered. “That means if you don’t apply and it’s 31 March, you can continue operating on your licence.”

“But after 31 August, which is the date of the expiration of your master licence, you will be operating illegally because you don’t have a sub-licence and you don’t have a licence from the Gaming Control Board.”

A waiting game

Those that don’t follow the process will be required to cease all operations and request a licence. That’s not to mention the “three to four months” of “zero revenue”.

All of this relies on when the LOK will come into force. Pietersz noted that if an operator doesn’t register for a licence before 31 March, and the LOK is enacted in June, the operator becomes illegal from the June date. “Why? Because the law has passed and then the master licence agreement is not enforced anymore.”

Introducing a new regime is no easy task, but there’s no need to complicate it further. Pietersz emphasised that this way of implementing the LOK is simply the easiest for all involved.

“It’s very important to know if [sub-licence holders] receive a licence that it would be based on the current legislation,” he explained. “But the terms and conditions of that licence will mimic the new legislation.”

“That means that they can continue operating without any problems when the new law gets into force.”

With just weeks to go until the all-important 31 March deadline, whether operators will adhere to the GCB’s warnings remains to be seen.

Although it’s some way off being implemented, the LOK has already proved that Curaçao is ready for change. It’s a piece of legislation that will open up a new era for the region – one where its notoriety might finally be diminished.

Quite the set of results then for Betsson. According to Lindwall, the positive outlook for the company looks set to continue, both short- and long-term. The CEO is delighted with the group’s performance, comparing the operator to a well-oiled machine.

“Of course, we’re very happy with the outcome of 2023,” Lindwall told iGB. “It’s a record year by far for the group. It’s nice to finish off so strongly with the record quarter as well.

“I think we have a strategy that has played us well as we are pretty diverse in terms of geography and we have our organisation in great shape. I think that transpires to good output in terms of results.”

Expansion across the globe

For Lindwall, expansion is set to be one of the key factors that will help Betsson with its global plans in 2024. Like most operators seem to be, Betsson is eyeing LatAm as a particularly attractive market for the near future.

Lindwall and co are well-placed to profit from LatAm opening up, too. Having already gone through the challenging regulatory process in Argentina, where a licence is required for each province, Betsson is also present in Colombia. Lindwall pointed to Peru as another country where Betsson is looking to make a mark once regulated.

After sports betting and igaming were finally legalised in Brazil in December, its 220 million-strong population is expected to have a legal gambling market in the latter stages of this year.

Lindwall is both thrilled and relieved that the Brazilian market is finally opening for regulated business. This is especially the case after igaming was re-included in Bill 3,626/2023 following its prior removal by the senate.

“The regulatory process has been back and forth, one step ahead, two steps backwards,” Lindwall commented. “When we heard igaming is not included, of course that’s very negative for the regulation.

“We are happy that it’s back again. Let’s hope we don’t get too many negative surprises on the regulatory process going forward. There’s a massive list with huge interest in that market from all our competitors.”

France another target

France is another market that Lindwall and Betsson are setting their sights on. The company launched online casino in neighbouring Belgium with Betfirst earlier this month. Its €27.5m acquisition of Holland Gaming Technology and Holland Power Gaming has also boosted Betsson’s presence in the Netherlands nearby.

There is growing expectation that France will have online casino legalised in the near future. If that market does indeed become available, Betsson’s partnership with French casino operator Groupe Partouche will provide a swift first-mover advantage.

Betsson also secured a licence to offer online sports betting in France in September 2023 and Lindwall is “really excited” over his belief that there are steps being taken behind the scenes towards a regulated online casino market in the country.

“I hope that it will [be legalised],” Lindwall declared. “I was at ICE a couple of weeks ago and that was the big question – “have you heard anything about France?” It’s in the air, but nobody knows anything.

“Obviously, something is going on and it’s a question of time of course. France has a large number of land-based casinos. There’s a big history of casino gaming, so I think it’s very natural that casino would get regulated in France.”

Challenges of expansion

Expansion can throw up problems, though, particularly in regards to licensing. This often drawn-out process is one that Betsson now has plenty of experience in given Argentina.

However, Lindwall believes it’s this previous experience that will allow Betsson to successfully navigate the tricky waters of regulation in new markets. “I remember from the first licence in Argentina, it was a large amount of paperwork and work to get that licence. It’s massive work.

“It’s the same for everyone in the market. We managed to handle it because we have so many licences that we have done it so many times. We know how to do it.”

Once regulated in a new market, Betsson then has the task of trying to scrap and fight for market share. In such a competitive environment as Brazil, which is rumoured to have over 150 legal operators applying, as well as vast black market interest, that can prove a tricky assignment.

Lindwall is confident however that Betsson will thrive in new markets. He cites the company’s policy of offering a localised offering. This is rather than a one-size-fits-all strategy, with that localisation proving to be a real edge.

“We have a strong organisation and we’re very local in all the countries where we act,” Lindwall continued. “I think it’s very important we don’t try to create one global experience and believe that will work on every single market.

“We’d rather look at every single market, how it behaves, what the competition looks like, what do the customers expect in this market and then we try to fulfil that. If we manage to do that, I think we’re in a great position to keep on growing and be successful in the market.”

Casino success in Q4

That localised policy is particularly evident in casino, which was a core driver in Betsson’s record Q4 2023.

Casino revenue shot up by 25.1% year-on-year to €182.8m, representing 72% of group revenue. In Q4 2022 it accounted for 66% of group revenue. Casino revenue from mobile devices was €157.8m, 86% of total casino revenue.

Lindwall again pointed to Betsson’s adaptability across markets as the reason for its casino results, stating the company has placed more importance on combining local offerings to better target each country’s demographic.

“We managed to showcase the games that people prefer in local markets and that may have helped a bit,” Lindwall stated. “Every market is different.

“We’ve got machine learning, which presents games which are the most popular, and there are certain automatic procedures in that as well. But I think there’s a portion of manual work that goes into that as well.”

Black market competition

Alongside the regulatory issues, the growing presence of the black market in some regions is a looming threat against legal operators, unable to compete in the face of overregulation in the form of marketing, product and tax restrictions.

Lindwall believes overregulation completely misses the point of what regulation is expected to achieve, highlighting Germany as one nation that fits those criteria. A November study found close to half of all online gambling in Germany takes place with unlicensed operators, with players driven to the black market by excessive stake limits and ease of access to unregulated gambling.

“Looking at Germany, it’s a large country with a comparably strong economy and yet there’s hardly any business to be done there by regulated companies any more,” Lindwall says.

“You have to ask yourself, in the regulator’s view, 90% of the population doesn’t fit into this view and uses other offerings – so, is that successful regulation? If it was regulations on speeding traffic, would it be acceptable if 90% of the drivers didn’t follow the rules? There needs to be a better balance.”

Lindwall believes Germany is an example as one of many European countries that have overregulated, decimating the competitiveness of legal operators and hurting channelisation across the continent.

Reasons to be cheerful

Despite the challenges, Betsson has plenty of causes for optimism, both looking in the past at its outstanding 2023 figures, as well as the future with a busy 2024 sporting calendar on the cards.

The 2024 European Championships, starting in June, is an event that is particularly piquing Lindwall’s interest, labelling it as the primary event of the year and one that will boost activity in more than just sports betting.

“We expect a spike across all verticals because the whole activity goes up,” Lindwall said. “We have more customers coming in and, even though it’s sports betting mainly, it spills over to other products.

“I think as well, you can say that our industry ends up in the spotlight during those tournaments. We get some great exposure in the press, which is nice.”

Betsson’s strong 2023 financial year will also allow it to further pursue its mergers and acquisitions (M&A) strategy that has been evident in Belgium and the Netherlands in recent months.

Lindwall will not change a winning formula, explaining: “I think we will continue to look at similar to what we’ve done so far, smaller acquisitions that fit the strategic purpose, companies we can take in that give us market entry such as Betfirst in Belgium.

“We have also done some strategic acquisitions of products like payment companies in LatAm. We have a strong balance sheet, we have a strong financial position and the ability to do M&A.”

Bright 2024 for Betsson

In summary, 2023 was a superb year from a Betsson perspective. Its strong balance sheet should tee up the company for what happens next, which will put the company ahead of much of its competition in new markets.

Lindwall concedes that following up such a successful year could be difficult, but with the company on a strong upwards trajectory and the “tailwind” of a packed sporting calendar coming up, the chief executive remains confident of more Betsson prosperity across the globe.

“It [LatAm] is going in the right direction,” Lindwall declared. “We have a strong footprint; we have done strong sponsorships over time and there is a huge interest in soccer. So that is one I’m also very excited about for the year.

“We have just started up our business with Betsson.fr, our French offering for sports betting, and we are really excited about the market. It’s a large one and it’s going to be very interesting to see how it develops.

“I think we’ll continue as we do today. We will work towards our vision which is the best experience for the end user and we are not there yet in all markets. We still have things to work on and we can always add things to make the experience even better.”

More of the same seems to be the strategy for Lindwall and, with Betsson coming off a record year and showing few signs of slowing down, it’s a tactic that is hard to argue with.

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.

In 2017, he took on a second C-level role as chief games officer, where he steers the strategic direction of the games portfolio, including production, sales and operations. 

The two positions tend to sit separately in Greentube’s peers. But there’s a strategic thread connecting the pair, Bauer says.

“While my career background is in finance, I have focused on strategic rather than day-to-day aspects of operations,” he explains. “This means I have typically been dealing with M&A activity, or entering new markets, from a financial perspective. 

“These skills and experiences complement the requirements of the CGO role.”

Since 2017, the supplier has been expanding into different markets around the world. “Whenever this process takes place, there is always a lot of structural groundwork in terms of finding out the size and potential of the market, the operator landscape and obtaining licences,” he adds. 

For each market, Bauer must devise a business plan, assess the competitive landscape and set targets for revenue and client wins.

The product side of his role requires that same level of data-driven expertise. “I have always been very interested in looking at each game and analysing its performance,” he says. “Certain game types work better in some markets than others and it’s a very numbers-driven process. 

“We can very quickly see which mechanics players in particular markets enjoy by learning to read the statistics and this is where my expertise comes in.”

Innovate or die

In 2022, Gil Rotem of IGT told iGB that “content is king” when it comes to games development today, but “data is the queen”. Bauer adopts that same perspective: closely studying and interpreting data helps slot providers design games for different player cohorts. 

But it’s not a case of only playing the hits. Greentube dedicates a percentage of its new game and platform development budgets to innovation. The new concepts it brings to market “can flop completely”, he admits. Or they can offer an excellent player experience that disrupts the market and draws in consumers. 

There is joy to be found in simple titles and Bauer is fond of the slots in Las Vegas’ downtown casinos. “I find it interesting how much entertainment you can have with just a few reels and a few paylines,” he says. “These games can still be every bit as exciting as a video slot. While they don’t have slick animations, what they do have is that repeat play appeal because the mechanic is really strong.”

Equally, he’s also impressed by video slots such as Light & Wonder’s Rich Little Piggies Meal Ticket or Invaders from Planet Moolah also impress him. 

And looking at competitors’ successful games and copying them can be a safe bet, provided they’re supported by proven mechanics which appeal to players across multiple markets. It could even generate decent revenue. “But at the same time, you will never have a hit game,” Bauer warns. 

Greentube isn’t interested in playing it safe, he continues. Instead, it wants to define how the market develops. “This means investing in innovation and new games and new mechanics. This approach must be balanced and only encompass a certain percentage of new releases, otherwise the financial risk becomes too high.”

So how does Bauer inspire his team to build market-defining content?

Building a cooperative working culture at Greentube

Bauer’s career spans multiple industries. He started out at one of the Big Four audit firms working on consulting across multiple sectors before moving into the construction industry. A short period working for the German Stock Exchange was followed by a brief stint in the automotive industry – “although ironically, this was less fast-moving” – before he moved into gaming.

His career has taught him the importance of working hard. Gaming is a results-driven business after all. Equally, though, he wants people to enjoy their work. 

“We make sure that we strive to meet objectives that have been set and if we don’t manage this, then we need to make sure we come up with a plan to rectify the situation,” he says. “We always want to grow and collective hard work enables us to make sure we are performing better than the competition. 

“This is a key element because if you just sit down and do nothing and rely on past successes, your rivals will take over.”

But having a fun job is just as important as work-life balance, he argues. A boring or unsatisfying role can weigh on someone’s mind and, in turn, eat into free time. 

Does he feel he’s achieved a successful balance? “I have three kids and they all want a piece of me, so of course, I try to be there for my family and limit work-related travel to what is strictly necessary,” he says. 

“Let’s say I’m not travelling just for fun. It is still a lot of work and probably doesn’t leave quite as much time as it might for family and bedtime, but at least at the moment the balance is a good one.”

Balancing the best and the worst of game development 

While Bauer sees his roles as fun and fulfilling, he’s equally aware that he has a responsibility to the player as well as the balance sheet. Gambling can be perceived as predatory, he says. 

Greentube is a slot developer, so he works one step removed from the end consumer. But he’s aware Greentube sits within a much larger business in Novomatic. As such, Bauer sees the effort taken to set out clear and strict rules for responsible gaming, affordability and marketing promotions. 

“Over the years, we have built up not only a big team but also efficient processes,” he explains. “We ensure we are not targeting players who might have a gambling problem, or players who cannot afford to play. We do go that extra mile so that problem gambling is kept to a minimum.”

The industry has come a long way since the dot.com days. Affordability checks and new ways of detecting problematic behaviours put operators and suppliers “light years” ahead of what came previously. 

Greentube’s global expansion drive

The shrinking of dot.com gambling also opens up significant new opportunities for suppliers such as Greentube. North America, since the repeal of PASPA in 2018, is now a key strategic market for suppliers. 

Canada is also becoming a key battleground. Ontario launched the country’s only open, competitive market on 4 April 2022. Greentube is already live in the province with a range of partners, with Entain the first client to go live. 

Through partnerships with British Columbia Lottery Corporation and Loto-Québec Greentube is expanding its reach. Bauer is confident of its future prospects. “The key to success in this region is local content, local networks and local relationship building,” he says. 

South of the border, where only six states enjoy legal igaming (with Rhode Island set to follow), Bauer preaches patience. Processes take much longer in the US, he stresses, from licensing through to signing contracts with clients.

“When things take longer, of course it means you need more money in the interim period,” he adds. “The upside in the US is the scale of the opportunity that makes getting through the pain points worthwhile. 

“The potential within the country is also amplified by public opinion on gambling, which is very different compared to in Europe. Over there, it is seen as entertainment first and foremost.”

Looking ahead: Disruption, consolidation and surprises

If the US opportunity requires some patience, how does Bauer see the wider market developing? He admits it’s difficult to predict its future, as technological advancements can prompt a sudden change in direction. 

What could be even more disruptive is new competition. “Imagine the impact if companies like Microsoft, Google and Amazon decided to enter this space,” he says.

These mega brands could move into gaming through building an entirely new product offering, or snapping up some of the market leaders. Even if they continue sitting on the sidelines, in Bauer’s opinion consolidation is unlikely to stop. The biggest industry brands will continue to get bigger through M&A activity.

This won’t simply leave fewer players on the field, however. “Whenever this happens, people will start to leave such companies, creating spinoffs and new challenges and ventures, be it as a game supplier or other operation,” he says. 

“If they successfully create a USP, then they will again be successful. There will always be a certain level of competition, even if consolidation is ongoing. From a supplier perspective, this puts pressure on margins and the challenge is to counter this through innovation.”

But there could be another sudden development, in Europe, the US or Latin America where Brazil’s betting and igaming regulation will shift the industry’s focus. Or even new markets or regions opening up – after all, few in the industry expected the United Arab Emirates to become a regulated proposition. 

In his position, straddling Greentube’s finances and games strategy, Bauer is ready for the upheaval. 

“New market dynamics are forming all the time,” he adds. “It’s up to suppliers like Greentube to meet the challenges presented.”

David Brown, a UK bookmaking industry veteran since 1976, and ex-trading director for William Hill, Coral and LadbrokesCoral, is certainly worried. 

“I’ve been in the industry for 47 years and this is the most pessimistic I have ever been over the health of the UK sports betting market,” he states.  

2023’s earnings: A sign of things to come  

Earnings reports throughout 2023 have arguably precipitated this decline.

What should have been a record-breaking period – first the 2022 World Cup and then a packed holiday season of horse racing – instead became grim reading.

Bet365, the UK’s largest online operator by market share, raised the first warning flag. In a trading update issued at the beginning of 2023, the company announced operating profit was down by 88% over the last financial year.

The second major warning came from 888/William Hill. In publishing its Christmas and World Cup earnings at the start of 2023, it went to great lengths to omit like-for-like gross win performance compared to Russia 2018. 

Throughout the year UK-listed Entain, once one of the industry’s brightest prospects, has also seen its outlook worsen.

With its growth slowing in each quarterly earnings report throughout 2023, its outlook is not bright. In November, investment bank and financial services giant Goldman Sachs downgraded Entain to “sell” from “buy”.

Amid concerns over business growth, it now also forecasts Entain’s pro-forma online growth to be negative in Q4 of 2023 and H1 of 2024.  

The UK white paper: Creating a cloud of uncertainty 

Dismal operator earnings, however, only form part of the picture. The fallout from the white paper, published in April 2023, presents the bigger issue. In particular, affordability checks being introduced in 2024.

In their present form, these checks greatly risk sending punters to the black market due to their intrusive nature.

The issue, as many see it, is the increasing polarisation of views between the GC and the industry.  

For example, it has been previously claimed by the GC that only 3% of accounts will be subject to affordability checks. Much of the crux of the current debate has been centred around whether this figure is actually correct. 

The GC’s own measure of how many betting accounts would be subject to affordability checks has been roundly criticised as inaccurate by many commentators.  

“Rhodes now introduces another measure, ‘gambling at the time’, to support his own data but without definition of what that exactly means,” comments David Brown.  

The issue, in short, is that many of the accounts included in the other 97% belong to “occasional” punters.

These include those who only bet on major events, such as the Grand National and thus are unlikely to place another bet for 12 months.  

Inevitably intrusive checks, if they continue as planned in 2024, will see many regular punters, who form much of the backbone of the industry, stop using regulated online bookmakers.  

The rise of the black market

With this, comes the rising spectre of the black market. UK black market gambling operators are increasingly targeting vulnerable players, according to new data published by Yield Sec.

The intelligence platform, led by CEO, Ismail Vali, recently published findings that the number of illegal operators in the UK have increased “fourfold” between 2021 and 2022.

That number doubled again to 231 during 2023. In total, more than 1,000 affiliates helped to publicise illegal operators.

According to Yield Sec, this means that illegal gambling now makes up 4% of the UK’s online gambling market share and gross gaming revenue (GGR).

This results in a significant drop in tax revenue, as well as funding for responsible gambling initiatives such as GAMSTOP.

Via its latest research, Yield Sec has recorded Google searches bidding to aid the avoidance of self-exclusion.

By January 2024, Yield Sec detected millions of “not on GAMSTOP” and other similar Google search results. This allows vulnerable gamblers to bypass self-exclusion strategies with legal operators.

As a result, at-risk players are falling through the “trap door” of looking to bet with illegal and potentially dangerous operators, who are not monitored by tools such as Yield Sec and GAMSTOP.

The Yield Sec platform also reveals a far more extensive, largely unmonitored landscape where illegal operators are strategically exploiting vulnerable audiences as a basic tenet of their go-to-market strategy.

At the heart of this disconcerting trend are two pivotal metrics: Cost per Acquisition (CPA) and Revenue per Player (RPP). Illegal operators navigate the acquisition landscape by targeting audiences shunned by the legal industry, effectively minimising their costs. 

Commenting, Ismail Vali, founder and chief executive of Yield Sec, stated: “Our surveillance highlights the disturbing and cynical growth of a certain type of illegal operator present in the UK over the past three years.

“The evidence of illicit gambling options that seek to cynically work around and enable vulnerable problem gamblers to avoid GAMSTOP self-exclusion is distressing and demands immediate and meaningful intervention.”

Navigating 2024: Focusing on the positives    

The UK, however, has proven itself extraordinarily resilient in the past and can do so again. 

The first bright prospect for growth in the regulated sector is the re-emergence of UK retail. Playtech Sports is fast making it a rival to online sportsbooks.  

At the forefront of this digital revolution are the company’s Self Service Betting Terminals (SSBTs), which are experiencing double-digit growth.

SSBTs now offer everything a punter can find online, with the same transactional speed.   

“We’re seeing everyone wake up to terminals in betting shops. This has been particularly evident since Covid”,  says Lee Drabwell, managing director for Playtech Sports.   

The key to retail’s rise in popularity, as Drabwell sees it, is the ability for Playtech Sports to offer speed and convenience, and the ability to place a bet as quickly as online.

“Gone are the days of customers asking for a price at the desk. Everything they want online is now available in a betting shop via terminals. All operators are fully engaged with this and we’re seeing a significant increase in retail traffic as a consequence.”  

Drabwell is fully confident that Playtech Sports’ SSBTs have a major role to play in 2024. It is clearly a case of supply meeting demand.

“As long as that investment by operators continues in 2024, we’ll continue to see increased traffic. BoyleSports for example, have expanded into the UK and are doing very well,”  Drabwell states confidently.

“JenningsBet is another great example of investment and expansion and we are now seeing nearly 100% of independent operators taking our terminals.”  

Retail: A bright future   

So how much potential for growth do we see for this in 2024?

“There is plenty of potential for more growth,” Drabwell says with the full confidence of an industry veteran with close to 35 years’ experience.

“There’s clearly market demand for this. The realisation is that if you don’t harness the digital experience and give customers an engaging and seamless experience, then you’ll struggle.

Take in-play betting for example, we now offer a massive range as part of the betting shop experience.” 

“We’re now seeing over 40% of football bets taking place through in-play. Of course, the only way you can do that in a betting shop is via a terminal. 

In total, about 80% of all in-shop football bets in shops take place via terminals and I am confident that this will grow to nearly 100% in the next two years.  

“Our Betbuilder for football is also performing particularly well in shops. This an excellent example of digital demand transferring to shop success.” 

The ability to innovate and offer the same as online is what is driving demand. Not only that, but it’s also attracting plenty of new customers.

“This is the great thing about making the betting shop experience digital-first. In effect, we’re taking everything that’s available online and delivering it to the world of retail.” 

The pitch is simple, catering to those who like that tangible feeling of the cash-based win twinned with a simple mechanic to bet.

Playtech Sports’ technology and tools also give operators the ability to deliver all customer safeguarding measures in a responsible manner. This makes it a win-win for both market demand and regulation.

“We’re seeing plenty of new sports driving popularity too.” He adds. “Baseball, cricket, American football and basketball are all growing in popularity. These are just a few examples of betting events that are drawing customers into the shop.

“Again, it’s another area where our Betbuilders are performing well, with a full range of betting opportunities for NFL, tennis, basketball – and baseball to follow soon.” 

So, which operators will be best placed to lead in 2024? “It’s definitely a case of those who invest the most will have the most success,” highlights Drabwell.  In short, bet on any UK operator investing in retail and especially Playtech Sports’ SSBTs.   

Investing in brand loyalty will be key 

Going above and beyond for the customer will be another key indicator of operator performance in 2024. Star Sports is an excellent example of this. By focusing on the customer experience, they are bullish on their outlook.  

“We have made great progress in 2023 with our online product (app), acquired more retail estate and stood at more tracks than ever before,” says Flynn Goward, head of operations at Star Sports.

The company has been quick to capitalise on demand, staking its claim on new pitches on racetracks. The first at the Newbury National Hunt and the second at the Ascot National Hunt.  

“We’re now standing for approximately 150 days a year across horse racing and greyhound racing.

Our space in the market currently is to lay some of the largest bets around, while ensuring we give the best service possible for whatever size of punter.” 

Where others see crisis, Star Sports sees opportunity. This aggressive approach is paying dividends. “We are trying to be present in as many areas as possible. As other firms are leaving the high street and on-course, we are buying up retail and pitches.”  

As Goward has noticed. “Bigger punters are now roaming the betting rings,” he says. “We are seeing larger cash-based bets now on-course compared to previously when affordability checks weren’t being mentioned.

“I’m assuming the on-course bookmakers have been left alone so far, as they only present a limited opportunity to bet (typically six or seven races that day) and possibly the away meetings.”  

Indeed, the thought of making affordability checks happen at the likes of Cheltenham in March will be almost insurmountable. “I’m unsure how we would manage this when the punters are climbing over each other to get the price they want in the Champion Hurdle!” Goward adds.   

Investing in success  

As a customer-focused operator, Goward is very proud of just how much Star Sports has carved out a niche for itself in retail, on-course and online.

“In terms of the online product, I believe we offer the best service around.” He states with pride. The final piece of the puzzle in Goward’s view, is all about having a presence. When asked for his key takeaway, he summarised it shortly. 

“Part of our success is by not being faceless. You will often see myself, or Ben Keith (our owner), standing at the big meetings or at the Greyhound Derby,” and it certainly goes a long way.

“We like to think we have a personality, which is backed up by the service we strive to give via our knowledgeable and friendly team at Star. 

“We also want to give back to the game. Sponsoring the Brighton Summer Racing Festival (we are Hove-based) as well as sponsoring the Greyhound Derby for years now, which is very close to Ben Keith’s heart.  

This rings especially true when it comes to future investment and they have high hopes to continue increasing market share throughout 2024.

“We are always looking to improve our product offering, overall betting experience and reach within the marketing space. This is a huge focus for 2024. Hopefully meaning more customers will find us at Star but more importantly will stay loyal to us as their go to betting firm,” Goward finishes.   

Bridging the divide between the GC and the industry  

Unfortunately, however, innovation and pro-activity – such as that which Playtech and Star Sports have put on the table – will not be enough to ensure that the UK industry can weather the storm in 2024.

The increasing polarisation between the Commission and the industry needs to be solved. David Brown, with almost 50 years’ service to the industry, is doing his best to offer a solution to bridge this gap.

“There is a perception within many betting operators, especially racecourse bookmakers, that the GC doesn’t quite ‘get’ betting or understand how bettors think and behave. So, it’s a little surprising that of the seven newly appointed commissioners, none of them have any experience of the betting industry.”  

So, what steps can we take to ensure this can be done in 2024? For Brown, the first step is to agree what can be agreed on and then focus forensically on where the differences occur and where obstacles lie.

“I have been involved in this industry for nearly five decades and it is resilient. It has emerged from challenging times before and I have little doubt it will do so again. Leaders, please step forward.” 

Indeed, this resilience is what will be key. Goward certainly agrees. “At Star we will always be resilient, but it would be naïve of me not to recognise the potential risk to the gambling/racing industry with regulation.

“We all want people to gamble safely and abide by AML regulation, but we need really clear guidance on what this looks like.”  

Now, it’s over to the GC for the next move. 

With a series of flashy sponsorships that have well and truly put BetMGM on the map in the UK, its Las Vegas ties have been put on show for all to see. Despite the high expectations, BetMGM has still managed to surpass Behar’s initial lofty projections.

“It’s been an unbelievable first five months entering the UK – especially given the way we did,” Behar says. “We had a unique ambition to make things work and we’ve certainly made a big splash, which is excellent.

“Of course we always thought it would, but it’s made a much bigger impact than even we could have anticipated and, even though we had high hopes, we even exceeded those expectations. It’s fair to say punters really like our product, especially the Vegas experience that we’ve brought to the UK.”

So how has BetMGM managed to make such a huge impact in such a short period of time? Research is the answer, as well as a strong emphasis on providing what the UK market has lacked in recent years – entertainment and engagement for punters.

“We are a very data driven business and we employed a significant amount of data to make our decisions,” Behar adds. “We’re seeing punters particularly engaged by our exclusive content, such as the MGM Grand Gamble slot game, which is a very exciting development. This is particularly the case given our position in sports betting.

“To be able to position things like that in the market means we’ve got a real ability to engage customers. Once you put all that together, you’ve got so many ways to engage customers across multiple verticals.”

BetMGM brings Vegas to the UK

BetMGM has a hugely iconic brand in the US, boasting especially strong ties to Las Vegas, where the MGM Grand and Bellagio continue to flourish.

However, Behar is keen to emphasise BetMGM UK’s need to build its own separate identity, while also maintaining the brand pillars that have made it so successful in the US.

“Our goal is to bring the US elements over while building our own UK-based identity,” Behar states. “Of course, customers really like the glitz and Americana. Ultimately, our goal is to create a new golden era in the igaming space.

“We’re looking to bring something bigger, bolder and more exciting for the UK. We truly believe this is one of the biggest launches the UK has seen in the last 15 years and we’re here to make a difference.”

A typically ostentatious advert, featuring comedian Chris Rock and a lion on a golden speedboat going down the River Thames, marked BetMGM’s arrival in the UK, certainly leaving an impression. For Behar, though, the advert also highlighted exactly what BetMGM’s brand is hoping to be in the UK.

“Looking at our launch ad, I think overall it’s a fairly transparent gap that we believe we’re filling,” he continues. “No one is as entertaining as we are. We believed everyone needed a brand like ours.

“We want to cater to everyone; our aim is to build a product that can entertain all of the UK. In short, we want to offer a proposition that others can’t in the UK.”

BetMGM’s product focus

Putting out the best product possible is one of BetMGM UK’s core objectives, with what Behar labelled a “golden offering” allowing the brand to better engage with UK customers and help to pry them away from the clutches of operators already established in the market.

“When we’re turning up with the best prices in the market, as well as with industry-leading promotions, including golden prices, price boosts, acca bonuses and Golden Goals to the UK market – which offers the chance to predict six games across the Premier League with a £2m (€2.3m/$2.5m) prize – you can see why we aim to be the biggest in the UK.

“On top of that, our US background, along with our world-class mobile UX from LeoVegas, which has won multiple awards and is developed using our in-house IP, and we start to have a real differentiator.

“Add in our acquisition of the studio Push Gaming last year, as well as our price point and promotional schedule along with one of the best loyalty programmes, and you can see how we’re making something special.”

Sponsorship and casino a focus

Making an entry into such a well-established market like the UK can be daunting for operators, as they look to compete with brands such as Paddy Power, Sky Bet and Bet365.

But looking at the sponsorships that BetMGM has already managed to agree, it already appears that Behar and co have made a dent. Again, BetMGM is looking to align itself with not only the best, but also the most entertaining sports clubs and brands in the UK.

“We want to be as memorable as possible before the whistle goes off,” Behar adds. “We have deals with Premier League clubs Manchester City, Wolves, Brighton, Aston Villa and Newcastle. You’ll see the MGM brand at all of those stadiums.

“On top of that, we are also the title sponsor of the darts Premier League. This was a deal we were working on for a while and, now that we can see the popularity of darts over Christmas at the World Championship, it’s easy to see how we’re looking to align with the best entertainment possible as well as supporting UK sport.”

BetMGM’s deep casino history is a real key differentiator for Behar, believing the operator’s offering is the best in the UK.

Behar highlighted the BetMGM Millions jackpot that is currently the world’s biggest available online casino jackpot, as well as the Golden Wheel promotion, which offers punters the chance to win a trip to Las Vegas.

“Without a doubt, the Vegas proposition is a real strength of ours,” Behar stated. “We’re seeing multiple different types of users engaging with what we have to offer and our strength of brand opens up so many new types of audiences to that conversion.

“Once you combine entertainment, with that classic element of Americana, you’ve got every reason to use sports, casino and the live element too.”

BetMGM looking to shake up UK market

The UK market’s rapid growth of yesteryear has stalled somewhat, with giants such as 888/William Hill and Bet365 announcing disappointing financial reports, reflecting a wider stagnation in Europe.

Too many operators neglecting the purpose of entertaining punters is the answer for that in Behar’s view, identifying a clear gap in the market for BetMGM to make its mark.

“We can see that the UK has turned very stale over the last five years, with most tier one operators acting like financial services brands,” Behar says. “We’re changing that and no one is as Vegas as we are.

“Looking at our legacy, it’s easy to see what a core differentiator that can be or, as we say, ‘What happens in Vegas is too good to stay in Vegas’. We represent the golden era that made that city great and we’ve carried it over here.”

That strategy is proving fruitful too, with Behar confident that BetMGM’s early success will continue in 2024 and beyond by sticking close to its principles of providing a fun experience for punters.

“We’ve got everything we need to succeed,” Behar added. “We have the strength of brand and product, as well as the ambition and capital to invest.

“We’re hugely confident that our customers enjoy the fantastic entertainment we have to offer and we are fully confident that the amazing success we have seen thus far will continue.”

BetMGM well-placed to deal with white paper uncertainty

The release of the Gambling Act review white paper in April 2023 was a landmark moment for the UK industry. But the proposed introduction of affordability checks and stake limits led some to be concerned over the future of UK gambling.

For Behar, though, he still sees the UK as a market with big potential, with BetMGM well-placed to deal with new measures should they come in thanks to its strong relationships with regulators, as well as its previous responsible gambling work.

“Given we launched here six months ago, we definitely believe that the UK is a growth market,” Behar says. “Looking at the market it can certainly be called saturated given the amount of operators we have here, but there’s also plenty of potential, just as we have seen with the success of our launch.

“If you can work collaboratively within the framework outlined by the Gambling Commission (GC), you can certainly thrive, just as we are doing.

“When it comes to affordability checks, we jumped the gun on this one and put this in place at the very start. We have a close relationship with both the GC and the Betting and Gaming Council, as well as a dedicated responsible gambling team working with our customers.

The future

So how does BetMGM aim to build on its exciting first five months in the UK? The answer to that is threefold for Behar, who is keen to continue BetMGM’s product-led strategy in order to grow its engagement with punters and become one of the “UK’s best entertainment brands”.

“The first is to continue strengthening our position in the UK as well as building out the market share we’ve already acquired,” Behar declared.

“The second is to continuously develop our product offering. At our heart, we’re a tech business. A third of our group works in product and technology and it’s our mission to ensure everything we develop is from a customer-first basis.

“Third, the acquisition of Push Gaming means that we have a unique position to grow and develop, as well as having our very own games studio to entertain the UK with proprietary content.

It’s still early stages for BetMGM in the UK, but it’s fair to say the initial signs have been positive, with fans seemingly enticed by the glitz and glamour of Las Vegas that Behar and BetMGM have managed to bring over.

Behar’s “showtime” remark serves not only as an exciting declaration of intent from BetMGM in the UK but also as a reminder that the existing UK market may have to buck up its ideas in order to match BetMGM’s entertainment factor.

Slaney rocketed up the gaming ladder since starting as executive vice-president of gaming at NYX Gaming Group. When Scientific Games acquired NYX, he progressed to senior vice-president of gaming at SG Digital. Scientific Games then went through a significant overhaul. This included divesting its sports betting and lottery divisions and carrying out a high-profile rebrand. 

Light & Wonder emerged from this process as a leaner, more focused gaming business across three divisions. Land-based, social casino arm SciPlay and iGaming – the division Slaney leads as CEO – reports to group chief executive Matt Wilson. 

Essentially with one employer Slaney has progressed through three major strategic evolutions and is ready for more. “Leading the igaming business is a privilege and one I am very proud of every day,” he says. 

Increasing complexity in igaming

Light & Wonder has undergone wholesale change and the industry Slaney entered in 2017 is markedly different. A sector where dot.com markets once loomed large was reshaped by a wave of dot.country regulation. This is to the extent countries such as the US and Brazil – once seen as completely off-limits – are now major growth opportunities. 

“As we only operate in regulated markets, for every market we operate in we must tailor our offering according to those regulations,” Slaney explains. “This can dictate anything from spin speeds to bet limits and reporting, for instance.”

This adds a new level of complexity to Light & Wonder iGaming’s business. Although with the ultimate goal of better protecting players, Slaney points out. “Keeping players safe from potential harm is a great benefit of regulated markets and we offer our full support to this endeavour.”

But there has to be balance, he argues. “Too much regulation drives the wrong outcome. Low stake limits, to give one example, ultimately drive players into the black market. 

“That is not a good outcome for players or the industry. When it comes to enhanced controls for responsible gaming, such as affordability checks which the industry has embraced, again these have to be balanced and measured,” he continues. “Only then can we all ensure that players who do play responsibly can continue to enjoy the best of what this amazing industry has to offer.”

Innovating around regulation

In Great Britain, Light & Wonder takes an active role in developing and reshaping the market. It led the Gambling Commission’s working group on an industry code for product design alongside Playtech.

By potential changes, brought in through the Gambling Act white paper and resulting consultations, it aims to build new products factoring in a new era for UK gambling. 

“It’s been interesting to see how different brands and types of content would be impacted and also how players play different types of content in terms of session lengths, stake levels and so on,” Slaney says. 

Light & Wonder’s Wonder 500 series is the result of this research. Stakes are limited to £2 per spin. Wins are also capped at £500 and there is a more frequent bonus hit rate, balancing the lower stakes model. “The impact has been very positive, with players responding really well to this new game style.”

Igaming races forward

Regulation is reshaping the industry, but a fresh wave of complexity comes from evolving player expectations. And coming from customer data science specialist Dunnhumby – UK readers may have heard of one of its projects, the Tesco Clubcard – he’s aware of the level of sophistication that goes into retaining and engaging consumers in other sectors.

“The biggest trend we are going to see impacting igaming over the coming years is enhancing player engagement through additional features that sit on top of a core game,” Slaney explains. “We have already seen a number of these hit the market, but offerings like multiplayer, personalisation and unique rewards will be what players will increasingly want and expect from their igaming experience. 

“They have this today in other digital verticals and it will become something they will demand more of.”

Content remains crucial just as it does in console gaming or other forms of entertainment. But being able to do more, or get more, from the experience will shape the next phase of gaming, he adds. 

For example, ELK Studios, a business acquired by Light & Wonder two years back, has enjoyed a record-breaking year thanks to the CollectR payout mechanic. This is featured in its Pirots and Pirots 2 titles. 

“Both of these games set new records and Pirots 2 is the best-ever launch we have seen in the UK and EU,” Slaney says. “Seeing how players responded to this new mechanic, how these games have created a real franchise and watching new players play Pirots for the first time, has been intriguing.”

It’s an example of two forces converging. Strong content dovetails with new mechanics, to fuel player engagement. 

Light & Wonder’s growth arm

As CEO of Light & Wonder iGaming, Slaney is tasked with driving that growth. The supplier’s refocused outlook makes online a key component of its future prospects. With revenue up 21% year-on-year in Q3, it’s the fastest growing division, outpacing SciPlay (up 15% in Q3) and Gaming (up 11%). 

However, with Q3 revenue coming to $70m, it still lags behind SciPlay ($196m in Q3) and Gaming ($465m). There’s work to do for Slaney’s strategy of combining unique content with new ways of engaging consumers. 

Distribution deals with the likes of crash games pioneer Spribe and unique content including a Squid Game slot – Netflix’s first gaming licensing deal, to be rolled out as a land-based machine first – certainly help. There’s also significant competition in the market, including online-only peers without the level of compliance guardrails a fully regulated provider such as Light & Wonder faces. 

If Slaney and his team face a hard road ahead, it’s something he welcomes. “I’m a firm believer that from every win or good decision you learn something but from every setback, failure or bad decision you learn even more,” he says. 

“You must teach yourself to truly go back and learn why something didn’t work, do something different next time and take ownership of things you are accountable for. I learned this very early on from a great mentor and it is a principle that has helped me throughout my career.”

What drives Light & Wonder iGaming’s CEO?

This belief in accountability and treating every success and failure as a learning experience was instilled in Slaney from a young age. 

“I’ve shared this before with a number of my colleagues but never externally. I have never known my father and grew up with my mum, the real inspiration, and sister in a single-parent household,” he explains. 

“My mum had, and still has, real steel and an attitude that you go out and earn everything in life. You put in the hard work, you don’t look to others and you set your own destiny. Nobody else in life defines who you are going to be.”

This mindset has shaped his career and his life, he says. “It’s the one thing I hope [my three daughters] have in their DNA: never take anything for granted and go and be the best they can be.”

Equally it’s an ethos he instils in Light & Wonder iGaming and how he leads that business. “We have this ‘never settle’ value that I always gravitate towards and it’s from that DNA that drives me and our business forward.” 

That drive is vital in an industry like gambling, especially online. The sector is unrecognisable from the one Slaney joined in 2017. “The industry evolves at such a pace, with new regulation, new markets, fresh innovation and new competition constantly cropping up,” he says. “It never stops and you have to embrace the pace and learn to like it.”

Some aren’t going to enjoy that pace and Slaney acknowledges this: “It’s certainly not for everyone. However, it’s also a huge positive and one of the biggest reasons I tell people to come and join this industry. 

“It never stops and constantly changes and challenges you.”

Established by Xuereb and CEO Max Meltzer, both veterans of the post-PASPA gold rush, Strive knows the market. Coming in three years after the first bets were placed, it has watched what works and what doesn’t. 

“We had the advantage of understanding the state-by-state nuances in each market,” Xuereb continues. “We had the opportunity to do our research and ensure we built a product that meets not just the current state, but the future state or requirements, as and when we roll out into more and more states.”

Strive is building a future-proofed offering as the US market works to wean itself off promotional activity and bonuses as drivers of acquisition and retention, to focus on developing a product that resonates with the consumer. “Seeing the challenges that our competitors and operators have in the market; we are able to address that,” Xuereb explains. 

“We’re also able to drive real value for [a business]. Utilising our Infinity Rules Engine really gives operators the opportunity to drive higher lifetime values through personalisation and contextual engagement. This also allows them to run their gaming operation with lower overheads through automation and build contextual campaigns across all verticals and channels.”

A focus on North America

Crucially, the Strive platform was built for the North American market. It’s a product designed to solve the nuances and challenges of regulatory demands, player journeys and a player experience unique to the region. Its management team of Xuereb, Meltzer and CMO Jamie Shea will not lose focus as opportunities emerge in other jurisdictions. 

“We won’t get distracted by other regulations,” Xuereb says. “We’re not chasing the regulated market in Brazil, we’re not chasing the Dutch or German markets. 

“That means our business and our product will continually evolve around the North American player experience.”

That positions Strive for North America’s product-focused evolution. “Players do mature, player experiences do change and it is the operators’ responsibility to ensure they engage their players with meaningful experiences.

“We are seeing a trend of new, non-traditional enterprises enter the gaming space as well as major brands moving into sports betting and igaming, including those with backgrounds in broadcasting and merchandising as well as businesses with complementary assets,” he says. “The new age of PAM is to extend outside of conventional gaming verticals and to unify the operators’ assets, creating an intelligent ecosystem built around player behaviour. 

“Consumers shop a brand, not a channel. As a technology provider it is our responsibility to ensure a consistent experience for the players.” 

Three years, eight clients

Xuereb prides himself on the diversity of partners Strive launched over the past three years. It started out launching Desert Diamond and Golden Nugget Online Gaming – part of DraftKings – in Arizona. There’s also Betsson’s Betsafe, PointsBet in Canada and, most recently, the Pokagon Band of Potawatomi Indians’ Four Winds. Further clients are signed up and yet to be announced.

Its roster ranges from locally established tribal operators to international competitors, with a US market-leading client thrown in for good measure. In each case this requires a migration; PointsBet, for example, is supplementing its own tech. Four Winds is replacing another PAM. Why go through the process to extricate themselves from a platform and move to another, with all the inherent risks?

“We’re seeing our operators gain meaningful market share,” Xuereb says. “Desert Diamond in Arizona is a local tribal operator and they’re really mixing in with the big hitters in the space, beating out some of the national guys. With the right technology behind a brand, local operators can compete.”

Single-state operators have struggled to compete with the market leaders, but Xuereb argues this is exactly what Strive aims to help them do. 

“We want to enable operators to compete at that level,” he says. “It’s not just about earning a sliver of market share. Small operators deserve a bigger slice of the pie, especially when they can offer a local flair and an equally player-friendly experience.

“We know not all customers are going to have the marketing budgets of the big guys,” he continues. “That means we need to do more as a platform provider. We need to work harder, smarter. We need to provide our operators with all the tools that enable them to really compete.”

Doing something different

This could be through real-time bonusing, deep integrations with sportsbooks, cross-selling from different verticals, or running unique promotions in partnership with local brands.

“Differentiation is key,” Xuereb says. “If everybody had the same product, it would just become a race to the bottom. 

“This is really where we want to encourage our operators to reward differently, to reward smarter. Ensuring you reward the right players is key, and reward them at the right time with the right amounts.”

A cookie-cutter marketing plan only serves to raise the risk of bonus abuse, he says. Instead, Strive aims to help partners refine and adapt their strategy to genuinely connect with their players in each market. 

Again, it all comes down to the importance of evolution, Xuereb says. “Strive brought technology to market that solves some of the fundamental challenges for operators when they are looking to launch a brand. 

“But our investment didn’t just stop there, our product has continually evolved.” Its roadmap is influenced not only by its experience of the market but by what customers want to achieve, “whether it’s offering different front-end experiences, different cashier options, whether it’d be our hybrid cashier or working with preferred partners to create a unified waterfall experience in the payment space.”

The omnichannel evolution

As a three-year-old business in a six-year-old market, Xuereb sees huge opportunity to grow. Sports betting may be in 36 states, but icasino is only in seven. As the market expands, players will mature and market sizes will increase. 

“We’ll continue to see more positive datasets come from the market around the halo effect that digital has on land-based,” he predicts. The most progressive operators will work to create a unified omnichannel experience, to unlock hidden value and grow player loyalty. 

“This is really the space where Strive can help operators stand out, whether it’d be integrated into their land-based system, or through creating a single sign-on, or even creating of a unified loyalty scheme across both land-based and online. 

“So I very much expect to see operators really harmonising their ecosystem and in creating these consistent omnichannel experiences.”

Xuereb wants to redefine what a PAM provider is to an operator. Having established itself in a region dominated by brands with in-house technology and multinational competitors, Strive is proving first-mover advantage isn’t as strong as an optimised, North America-centric product.

“We have a unique asset in our Infinity Rules Engine, which can unify whatever the channel, whatever the vertical, and can even extend outside of non-gaming verticals,” he adds. Now it’s established, Strive is gearing up to lead a new phase of growth.

But days later, New York’s governor, Kathy Hochul, decided not to include igaming in the state’s $232.7bn (£183.73bn/€214.70bn) budget for 2025, throwing cold water over the whole affair.

This is not uncommon in the US, where states dedicate years to advocating for a specific type of betting to be introduced. Just a quick glance at California’s legislative sports betting record will tell you that. So what’s the big deal about getting igaming to New York?

According to Howard Glaser, head of government affairs and legislative counsel at Light & Wonder, New York has the potential to become one of the most prolific igaming states in the country.

“If New York state adopted igaming, that market would be one of the biggest gaming markets in the world, period,” he says. “This is a state with 20 million people, 14 million adults, and it’s really just a robust environment for gaming.”

Success across the terrain

Even more convincingly, other states have modelled the introduction of igaming with great success for revenue.

“You have models in New Jersey, Pennsylvania and Michigan which are just extraordinarily successful,” Glaser explains. “In New Jersey and Pennsylvania, they’re running at $1.5bn, $1.7bn over the last 12 months each, with the associated tax revenue. Michigan is close to that level as well.

“There really isn’t any question about whether the model can be successful.”

It’s essentially a sure thing, which should be music to a lawmaker’s ears. So why hasn’t it stuck in the legislature thus far? The issue lies in straightening out the igaming issue politically, according to Glaser. “The challenge is solving for the politics in the US, both within the industry and some external factors as well,” he notes.

“This bill has been introduced; it’s the second year in a row. A few changes were involved in it – not too extensive changes. It’s really the beginning point for this conversation; it’s an attempt to keep the momentum alive to get another significant US state in play.”

What can Senate Bill S8185 offer New York?

Addabbo describes it as just that: a starting point for the igaming conversation.

“It’s a starting point for what I hope to be negotiations during the budget process here in New York for igaming and ilottery,” he says. “It sets up the parameters which I envision and hopefully my counterpart in the other house, the assembly, will.”

The bill’s highlights include a 30.5% tax rate. It also proposes a $25m fund to protect current jobs in existing casinos and an $11m fund for problem gaming programmes. And of course, ilottery.

“This new bill is improved from the bill introduced last year,” he explains. “This bill does include ilottery this time and this bill does include again a $25m fund to protect jobs. This is because we do not want igaming to cannibalise any of our existing brick and mortar casino jobs.”

Generally, the bill has been well received – or at least, the state senator hasn’t yet encountered an unfixable problem.

“We have those who are advocating and they love the idea of igaming and ilottery in New York and there are those who have concerns and I’ve heard many concerns,” he admits. “And there’s no concern yet that I have heard that can’t be overcome or can’t be addressed legislatively with the bill or with a variation of the bill.”

Governor Hochul’s budget throws a curveball

The absence of igaming in the 2025 New York budget, however, naturally presents a challenge. But this wasn’t a shock for Glaser.

“This is the game they play. In New York in particular, but in most US states, the governor will propose a budget which is below the level of spending that the lawmakers would like.”

Then the pressure is passed on to legislators. If they want to spend more money, they’ll have to find it first.

Naturally, Addabbo would have preferred igaming to be in the budget – and he’s not prepared to back down just yet. His tactic is to keep an eye on the executive budget.

“[The executive budget] tells us what she [Hochul] wants to do… what direction she wants our state going. But as for how we get there, how we pay for these things, that’s what the months of January February and March are for, for the budget negotiations.

“I’ll still remain optimistic that we can have a discussion on it during the budget process.”

What lies ahead for igaming in New York?

So it’s safe to say New York’s igaming dream is still alive and well. As Glaser says, this is just the first step in the process.

“We’re just at the very first inning of the process; the governor’s just kicking it off,” he explains. “I have no doubt that if the legislature put it in their versions of the budget, the governor would sign off on that.”

The biggest stumbling block, he continues, is the state’s labour unions. One unique aspect of Addabbo’s bill is that, in order to qualify for an interactive gaming licence, those operating a live dealer game must agree to a labour deal with a union.

“The challenge though – as it is in other places as well, all the states have unique challenges – New York is a big labour union state,” says Glaser. “The land-based casinos are all unionised. Those unions are concerned about the impact on their members in land-based casinos.”

Work must be done to convince land-based venues that igaming will help, not hurt, the casino market in the state. “The entertainment marketplace is largely digital, and if the casinos don’t have a digital component, they’re not going to be able to see the kind of growth they’ll need, either at the land-based level or the igaming level without it.”

For Addabbo, New York needs a sure thing and this is exactly what igaming and ilottery will provide.

“I remain optimistic, only because our New York State Comptroller – who looks at our finances – tells us we have a bad fiscal situation this year and it only gets worse 2025-2026,” he explains. “So you do need that sustainable revenue. Not these one-shot gimmicks, but sustainable revenue going forward. And that’s igaming and ilottery.”

New York’s igaming journey has been nothing short of a rollercoaster ride. But there’s light at the end of the tunnel and a long drop down to the end.

Revenue for the third quarter of 2023 showed growth of 12.8% to $731m, aided by record returns from igaming and social casino games. It’s the fifth consecutive quarter of year-on-year, double-digit growth for the supplier.

But in chief executive Matt Wilson’s eyes, companies can only be world-class at a limited number of things. “We said we can’t be the best lottery company and the best sports platform and the best social casino company and so on – you just can’t do all those things. So we chose to be a content company keeping three very complementary businesses.

Light & Wonder: The first of many?

“It’s very competitive out there and those throwback ’80s-style conglomerates where lots of different businesses doing different things are rolled up together only fit in a portfolio because the same owner owns them,” Wilson adds. “That model doesn’t work.”

Light & Wonder is looking like a trendsetter in that regard. IGT is running a process to divest its Global Gaming and PlayDigital arms, to focus on its lottery business. Recent reports suggest Playtech may shift its focus to B2C – a bid for 888 failed earlier in the year – and divest B2B operations. 

If Light & Wonder scored a competitive advantage by stripping back, others are cottoning on. 

In the case of IGT, Wilson sees similarities and wholly endorses a simplified strategy. “We unlocked a huge amount of value,” he says. And if competitors are watching Light & Wonder closely, they may follow its other strategic moves. 

Heading Down Under

The supplier went on to secure a secondary listing on the Australian Stock Exchange, opening up access to new capital. Such was the interest 15% of Light & Wonder’s market cap now trades on the ASX – well ahead of management expectations. 

“We thought there was some interest down there for the Light & Wonder story, but as soon as we listed, we activated a huge amount of investors,” Wilson says. 

He has form in this regard, having gone through the process during his tenure at Aristocrat. It’s home turf for him, so he’s well known in the Australian investment community, but points out it’s a vastly untapped public market for gaming.

“There’s a superannuation programme in Australia where every employer has to put money into the markets for their employees.” That means there’s billions of dollars looking for a home every quarter. A quick skim down the ASX register shows a lot of mining and banking companies. Light & Wonder, on the other hand, offers a technology investment with a global addressable market. 

“I think we were pushing against an open door,” he adds.

Could another company emulate that strategy? As a company with Australian management, business in the country and a track record in the market, Wilson believes Light & Wonder had an ace up its sleeve. “But I could see other gaming businesses looking at that market as a potential investment opportunity,” he adds. “I wouldn’t be surprised if someone emulated the same strategy.”

Light & Wonder’s opportunities in the Far East

The ASX secondary listing provides a firmer foothold for the Asian region. Macau remains the main event, but the Asian opportunity is expanding into Japan, Thailand and Vietnam for land-based and, with Philippines igaming thriving, there’s a huge opportunity spanning multiple markets. 

Having lived there between 2007 and 2012, Macau is close to Wilson’s heart. He recently went back, for the first time in a decade and sees a can-do attitude that matches somewhere like Las Vegas. “When I was living there they even said they’d build a bridge from Hong Kong to Macau, which was an hour’s ferry ride, 30 miles away. And they build a bridge. 

“You underestimate China at your peril; they do things on such a big sale I think Macau’s getting back on its feet.”

However he believes the biggest story in Asia is the Philippines. “The chairman of Pagcor wants to double gross gaming revenues in a short window of time. That’s ambitious; you have to do things differently to unlock that. 

“That comes with a lot more integrated resorts. I think they’re purchasing a lot of equipment for their own sites. He’s gone on the record saying he’ll buy 3,000 gaming machines starting in January 2024.”

Wilson admits he didn’t understand the scale of the Philippines opportunity before he visited. Now? He believes it’s aiming to create a gaming hub rivalling Macau.

Building from a strong base in Asia

Light & Wonder owns around 50% of the Asian machine market, Wilson says. It has another ace up its sleeve for the region. Wilson credits its dominant position to the game developer behind 88 Fortunes, Qin You who “really mastered the art of building games for the Asian population. We love her,” says Wilson. 

You understands intrinsically what works appeals to the Chinese audience, as a native, creating authentic titles that position the supplier to profit from opportunities in the region, Wilson says. 

But Light & Wonder is an omnichannel business today, with thriving online and social arms. Considering Pagcor is preparing to launch its own online casino, is there hope for a meaningful online push?

That would require more legal certainty around the streaming model – where a physical device broadcasts through a web browser – as Light & Wonder takes compliance and its regulatory condition very seriously. “We’d only ever launch that market if the regulations were really clear and we could do it in a way that wouldn’t jeopardise anything.”

But as digital-first suppliers step up plans for world domination, Light & Wonder is coming up against rivals without the same compliance obligations. Without the obligations and revenue coming from land-based operations, igaming suppliers can – and have – taken a more relaxed view to what constitutes grey or black markets. 

Suppliers’ white, grey and black conundrum

At a time when the traditional land-based giants are digitising their portfolios, can they really compete against rivals that can pursue growth wherever and however they see it?

“I think we are disadvantaged, if I’m honest,” Wilson says bluntly.

“We’re competing with companies taking bets in black markets where they’re not paying taxes, margins are better so they’re better capitalised to make investments,” he explains. “Regulators need to take a long hard look about who’s operating in their ecosystem and whether they are comfortable with that.”

The general response from regulators is that their remit only covers a small patch of territory. Light & Wonder wants to change that. It’s outlined its position and Wilson believes it’s having an impact. “I think you’re starting to see some traction with new states looking at legislation that says to operate here you can’t be in black markets – the regulators can’t be seen to be supporting black market activity.”

Is 2024 the year US igaming breaks through?

If Matt Wilson has succeeded in shepherding Light & Wonder into its new, simplified era, as well as unlocking new capital and, potentially, new markets, US igaming remains a work in progress. 

Mature markets in Europe and the UK, he explains, are now digital-first territories, where players’ first exposure to gambling happens through a computer or a smartphone. Online is the players’ path to market.

In the US, the players’ path to the online market takes them through the casino floor. As the only show in town for the past 40 years, players are “already a bit conditioned to like certain types of games”. Wilson points out Light & Wonder specialises in these titles and franchises, although he’s confident there’s room for digital-first titles to win out over time.

“There’s still lots of space for lots of different types of games, but these kind of tentpole franchises players have been playing for many years win out,” he says. “Blazing Sevens is a brand in our portfolio. It’s been around for 40 years. We are reviving that from the land-based business to move into our digital ecosystem.”

Moving players into the omnichannel ecosystem

While the casino floor is what the US player knows and loves, that doesn’t mean there’s no interest in other channels. Light & Wonder’s research shows land-based players tend to dabble in social casino or igaming, where permitted. 

“When you look at the younger demographic, that younger cohort of players, they’re almost demanding it. You have to be digitally enabled, otherwise you’re going to miss out on the opportunity.”

Even if it’s one that hasn’t quite emerged just yet. Wilson admits it’s “not moving at the pace we’d like, but you have to believe in the next five to 10 years, there’ll be a huge step forward in the digitalisation of gaming markets all over the world – because it’s happening in black markets.

“It’s already happening. Let’s regulate it, for tax that drives benefits for states, drive some responsible gaming initiatives around it. 

“You can do it in a healthy way, in a protected way. I think as governments become more comfortable with that, you’ll see further and further regulation.”

Now that Light & Wonder is thriving across all three verticals, should the US and Asian opportunities open up in 2024, it’s hard to argue Wilson has brought the sparkle back to the business. 

But as this week’s partnership to power PointsBet’s igaming offering in Canada shows, it can take on the biggest competitors and win.

A team of industry pioneers

It’d be easy to position Strive as an industry upstart, but with a leadership team featuring a trio of US betting pioneers, it comes with strong pedigree. CEO Max Meltzer and president and CCO Damian Xuereb were responsible for a flurry of deals in the wake of PASPA’s repeal during their time at Kambi. CMO Jamie Shea oversaw the launch of New Jersey’s first mobile sportsbook at DraftKings.

“The platform is designed around our industry experience,” Meltzer says. “We have more B2C operational experience than any other player account management (PAM) and we recognise what’s needed to be a success: to deploy quickly, to have a configurable solution, move state to state for customers from the same single office.”

Even its client base, in the early stages of its growth, includes names that will make larger platform providers envious. It already supplies DraftKings, via Golden Nugget Online Gaming, Betsson’s Betsafe and Desert Diamond in Arizona. PointsBet expands the list of high-profile partners further, thanks to a four-year deal to deploy Strive’s PAM platform for its igaming offering. 

PointsBet deal “a natural next step” for Strive

To chief executive Meltzer, it’s the right time for Strive to take on a client of PointsBet’s size in Canada. 

“It’s a natural next step for us,” he explains. “Over the the past two years we have been establishing ourselves, proving we can be quick to market, scalable and without tech debt, which has really resonated [with the industry]. 

“Since then we’ve vastly built out our Vancouver, Newcastle and Malta offices, to build a really slick operation. It makes sense to take on such a large multi-state operation.

“It’s a very significant moment for us. We’ve been planning for this [size of client] since day one.”

Are North American operators rethinking their partnership rosters?

The announcement also comes amid a flurry of bed-hopping across the industry. This is as operators switch suppliers, acquire systems or even build their own. In some ways, this opens up new doors for Strive in that there’s more scope to entice organisations away from their existing partners. In others, it potentially raises risk levels as companies look to control their own tech stack. 

However Meltzer argues there’s increasing scope for outsourcing expertise. There’s plenty out there to suggest a vertically integrated proposition is “not necessarily the way to win in the long term”, he points out. 

“There’s not enough strategic value in buying businesses. The market has told us that. You need to show success from the bottom line, with a product that’s sticky and drives long-term value,” he explains. “That’s exactly where we fit.”

To put it simply, Strive offers an edge on the competition. Meltzer claims it’s integrated with more sportsbooks and casino vendors than any other PAM. It also offers a host of payment providers, KYC solutions and geolocation services. 

Lifting the hood on Strive’s PAM

Strive’s gaming platform offers something that is very hard to replicate, Meltzer continues. Building anything in-house would take years. 

Operators built out hefty player bases in the acquisition spree that typified the early years of US sports betting. As the focus turns to retention, they need a product that keeps them engaged and playing.

“Our platform is laid out for operators to track customers from a single back office, moving from state to state with a single wallet,” he says. 

Its infinity engine automates workflows to better engage customers, while a dedicated data analytics team is building out AI models. This use of data is “a key battle for the industry”, utilising data to keep customers engaged and playing responsibly. 

Laser focus on North America

But Meltzer believes Strive’s “laser focus” on North America gives it an additional advantage. 

“The global regulatory landscape is becoming more and more complex, whether you’re looking at the UK, or Germany, or Brazil, through to North America,” he explains. “It’s a complex landscape of regulatory and technical requirements, meaning there are companies out there, even with their own gaming platforms, that use our PAM. 

“Betsson has its own internal PAM, but recognises that using ours in North America makes sense, for example.”

Rival suppliers, meanwhile, may spread themselves too thin. “It’s difficult to focus on a launch in Pennsylvania or Ohio while trying to make sure you’re ready to be in Brazil, Peru, Germany or the Netherlands, so from a development focus it’s difficult to be spread across all these jurisdictions.”

This means “it hasn’t proven that difficult to be in the conversation if people want to outsource their PAM”. 

“People know it’s incredibly complex. It’s not the most exciting part of the business so operators might want to look at more creative elements such as the front end or marketing. We provide the expertise so they can build on it.”

Will a lack of progress for online casino regulation slow growth?

But while Strive is targeting growth across all verticals, two of its major deals in Golden Nugget Online Gaming and PointsBet focus on icasino. Early hopes of a wave of legalisation to take the vertical into more than its current six states in 2023 have been dashed in the current legislative session. 

For Meltzer, online casino “is a highly engaging and profitable area for our industry and [operators recognise] its not enough to offer sportsbook alone”. 

The lack of progress in 2023 doesn’t bother him, however. It gives the industry time to test and prepare for 2024. 

That year, he predicts, will be “a huge year for sports and icasino approvals. Next year will be the wave, where we see something exciting happen. This year has given everyone an opportunity to get their product ready. My boldest prediction is something to happen with icasino in New York.

“In my previous business, I worked to get people live, but people were focused on speed rather than quality. 2023 has been the year of quality, where you’ll see which casino games work. There are differences between the states so we should be learning as much, testing as much and getting as much content through.”

Creating an ecosystem around gaming

Adding online casino to the mix also expands the gaming ecosystem, something Meltzer believes is a key point of differentiation between North America and Europe. 

“From the way [operators] approach things, it’s not so much how they differentiate the sportsbook product, but how they differentiate the whole experience.

“DraftKings has sportsbook, daily fantasy and casino, then acquired Golden Nugget Online Gaming and built out their NFT marketplace. Fanatics is just at the precipice of what they’re trying to achieve, in combining sports betting with merchandise.”

This approach of incentivising players through non-cash bonuses is being replicated across other providers, such as Prizeout, where vertical integration is less about owning the tech stack and more about piecing together the products and prizes. 

“That’s the way I see [North America] going; obviously there’s differences in their proposition, but it’s not sticking to the traditional way of rewarding players from a technical standpoint,” he says. “They’re going to be able to reward dynamically and that’s what I perceive the big players to be doing. 

“It’s exactly what we’ve designed our platform for. It’s not just an igaming platform, it’ll grow depending on what people want to add in.”

The client base grows

And there are more clients already lined up. Meltzer says multiple deals have been signed already, and not yet announced. 

“Even Ontario who we are going into with PointsBet, we’ve gone in with other customers. Customers unannounced include those ones that own property assets such as tribal operators, clients launching new brands, some of the big operators and hopefully in the coming months we’ll announce those.”

There are multiple gaming platform providers fighting for clients, not to mention the additional challenge of operators taking tech in-house. Meltzer and Strive are working to prove there’s room for more. 

Such is the case with sports betting, where gamification is inherent to the way the industry operates.

Historically, gamification has been an umbrella term for sub-content aimed at acquiring and engaging players.

As the industry evolves, so too do approaches to gamification. Many companies are trying to shift game elements in the betting space to give players better options and help operators build and retain audiences.

Vettese and Smith both work in the space. They each see gamification as a crucial tool all betting operators should leverage.

Where we are

Gamification elements vary widely and the outlook of the concept as a whole is hard to pin down.

“Today, players and bettors want to feel loved, valued and appreciated and that their custom and money are not taken for granted,” says Smith.

He emphasises that operators know this, but they have trouble maximising the opportunity.

“Gamification can be boiled down to two key elements,” he says. “Gameful thinking and incentivisation. It’s a way of enhancing the loyalty of customers and it can create a sense of progression to make the experience more enjoyable and immersive.”

Vettese says previous definitions and understandings of gamification are old hat.

“Gamification, as it was, is dead,” he says. “It has evolved to become about harnessing the power of next-generation gamification systems that deliver improved conversion rates and data-led insights.”

Before, Vettese posits, gamification was about simulating the betting experience and – hopefully – getting players to sign up for a sportsbook.

“By offering a variety of customisable game types for sports fans to interact with, sportsbooks can open up new engagement opportunities, particularly with the hard-to-reach casual player segment.”

Where, then, does gamification stand and what purpose can it serve in an era where sports betting is more accessible than ever?

“We are seeing that the number of people in each state interested in sports betting has plateaued somewhere between 25% and 30%,” says Vettese. “We think modern gamification can play a role in educating and nurturing new audiences for sportsbooks.”

From Xtremepush’s perspective, Smith says: “A gamification strategy has become a business-critical element of the product mix for any serious brand or operator. It should incorporate player acquisition and daily retention, plus cross-sell from one vertical to another and – perhaps this goes without saying – loyalty programmes.”

Where we’re going

The future of gamification is malleable and both Vettese and Smith have distinct visions for how it can take shape.

“Spending thousands of dollars on player acquisition is of little long-term value if it’s not accompanied by a marketing plan to keep the customer happy,” says Smith.

“Operators should work with players, providing them with content they enjoy. They should also personalise the experience through rewards, promotions and offers. That can pay huge dividends.”

This approach, according to Smith, can galvanise players to evangelise a brand. “They become flag-bearers,” he says. “A positive experience for one person can lead to sign-ups from a host of friends, who abandon less engaging sites.”

Vettese sees an opportunity to build audiences by attracting casual players who historically haven’t jumped headfirst into the sports betting craze.

“Gamification 2.0 comes into play by understanding how best to engage with the casual sports fan,” he says. “You have to throw out the old F2P model. The next generation of gamification products is designed to generate first-party data and insights, enabling sportsbooks to build actionable, segmented audiences that convert at double-digit levels.”

He cites Tally’s Game Center product as an example. The tool “aggregates multiple game types into one solution to connect with multiple audiences.”

Smith’s take on free-to-play is different. He views it as a viable option, with some tweaks to the existing formula.

“Using F2P as a standalone site, not attached to the main brand website, can create a playground where players can be nurtured across various areas. These include showcasing a brand and what players can expect to see once they become a customer.”

The personalisation aspect

From there, it’s a matter of using the data and insights to create personalised offers and showing players how the betting experience can be fun.

Both Smith and Vettese touch on a concept that can be intrinsically tied to gamification if done right.

Vettese mentions education and Smith mentions nurturing players. Gamification can be a low-stakes way for players to get involved in an otherwise intimidating space.

Novice bettors might not understand how odds work, or how to build a parlay, or many other aspects of betting. A gamified experience that doesn’t require real money upfront and eases them into it can create a bettor where there once was none.

“Sports betting is still a new form of digital entertainment and a certain degree of education is required,” says Vettese. “By offering free games and building up a relationship with casual players, sportsbooks are in a much better position to convert them into active customers.” 

The education piece is big, but it focuses mainly on bringing new players to a platform.

Given the high saturation of betting apps in legal markets, acquisition isn’t as big a priority as it once was. For bettors who already have sportsbook accounts, retention is the focus and gamification can help with that.

“Personalisation is key,” says Smith. “Provide a Knicks fan with an offer to bet on their own team, but not a casino offer if they have shown zero appetite for it.”

Vettese agrees. “Offering sports fans content that resonates with them is a quickfire way to get them engaged.”

Broaching new approaches

As gamification expands to include a wider variety of elements, new ideas are popping up.

Smith and Vettese have seen unique examples of the practice inside the betting industry and well beyond it.

“I like when a consumer brand sponsor is included in the game the same way they’re involved in the day-to-day sport,” says Vettese. “It brings a level of authenticity to the game and can add to the consumer rewards. Game Center offers thousands of game types that include leaderboards and challenges, all customisable to carry operator or sponsor branding.”

For Smith, the best gamification elements are the ones that create “surprise and delight” moments and, simply, “cool stuff”.

“If it’s missing, you can bet your bottom dollar a competitor is doing it,” Smith says, adding: “These elements should be personalised to a brand and the player. Otherwise, it’s just a template the bettor can get at any competing site.”

Smith continues, drumming up an example on the spot: “A player might have lost three or four sports bets in a row – as I know from experience – but by sending them an ‘in-session’ push notification that they have won a free-to-play gamified reward, they will feel slightly better.”

“The game doesn’t have to be about giving them an offer to bet more money – that would be counterproductive – but it can be about winning points on a leaderboard, which in turn can give them money to spend at the end of the month for rewards.”

Staying ahead of the game

Any stakeholder looking to infuse gamification into their product can see success in other industries.

Vettese stays close to the betting industry, citing sports as a prime example. “In basketball, the LA Lakers recently launched their game centre, Lakers Arcade, that invites players to engage with various game types that carry their iconic branding.

“We’ve also seen NFL franchises such as the Buffalo Bills, Green Bay Packers and Los Angeles Rams take advantage of newly launched prediction and trivia games to attract and engage with fans in the lead-up to the 2023-24 campaign.”

Smith, meanwhile, says there are three key learnings from other industries that sports betting operators should consider.

First, it should be personal and brand-specific. Second, it should be built to work for players and not force players to adjust to the gamification elements.

Finally, he says: “Use it as both a loyalty and an educational programme. Look at the airline industry for a great, longstanding example. Who hasn’t heard of air miles?”

Looking ahead, Smith and Vettese see a bright future for gamification and the companies that embrace it.

“It’s a case of evolution over revolution,” Smith concludes. “Operators need to understand more about how gamification will retain, reactivate and reward players, rather than just seeing it as an F2P game to acquire new bettors.”

“At the heart of it is the underlying objective of keeping customers happy and giving them what they want.”

To be named successor to Fred Done – at a company that bears his name – shows how highly the Betfred founder values group chief executive Joanne Whittaker. Their working relationship dates back 20 years, covering two tenures at the operator and Whittaker’s own businesses, including childcare voucher specialist Fideliti and financial adviser Angel Advance.

“I have been able to understand our business from the ground up, as well as going away and developing my own businesses, experiencing the highs and lows that this brings,” Whittaker explains.

Her management style is simple: “I am known for saying it as it is, being persistent (some may say relentless), asking stupid questions to ensure I understand exactly what I am being told and working hard. I really believe that if you work hard, you can achieve whatever you want.”

She has no interest in living up to any stereotypes, and believes the secret to success is simply hard work and determination. “I am used to being either the only female, or one of a small number, in the room. It is important people are recognised for the work they do and the value they add; this is the culture I feel we have within Betfred and it is something I am proud of.”

Away from the office Whittaker is a mother of three, with her husband handling the day-to-day childcare duties, a setup she says works well for the family as she looks to build on a successful 2022 when turnover grew 37.5% year-on-year to £723.2m. This means she spends more and more time travelling as the business expands in markets such as the US and South Africa. “But I always plan my work diary so I am at home every weekend,” she says.

Clearly delighted to be named one of iGB’s Most Influential Women in Gaming for 2023, Whittaker says there’s an emerging female leadership class in the industry today. She’s proof of that.

Jonna Danlund
Head of sustainability, Betsson

For Jonna Danlund, being named as one of iGB’s Most Influential Women is testament to her leadership in championing environmental, social and governance (ESG) initiatives in the workplace.

For Danlund, it’s all about establishing a place where talent can flourish. “It’s essential to create an environment that can cater to many different people and talent types,” she says. “To paraphrase a Swedish idiom, not all flowers bloom under the same conditions.

“Any strides a company takes towards sustainability need to happen out there in the organisation; it’s not a one-woman show. On the contrary it’s all the competent people at Betsson who drive sustainability within their respective fields, where diversity is one such key area.”

Jonna has been instrumental in the creation of – and is the driving force behind – Betsson’s Sustainability Framework. This strategic framework is made up of five crucial focus areas: responsible gaming, business compliance, employee impact, social impact and climate impact – with long-term goals and KPIs for each area.

“Every organisation needs a platform to help promote and support talent and, just like with any project, you need to have a unified philosophy and goals to drive the company forward,” she says.

“At Betsson, we have a number of supporting policies and procedures for diversity, inclusion and belonging and equal opportunities. But, more importantly, we have a culture that celebrates diversity.”

Danlund explains that Betsson is represented by 70 different nationalities across 2,000 employees. For her, this means “diversity is something we celebrate every day of the year”.

“We believe that diversity is the basis for an innovative company culture and we are committed to raising further awareness around DEI.”

Ultimately, Jonna partly attributes her success to the people around her. “If you’re lucky enough to be surrounded by a group that helps you, lifts you up and encourages you, then that makes all the difference.

“Because the thing is, you can be hardworking and talented and it might still not be enough. No woman, or indeed person, is an island – you don’t get anywhere without other people.

“On the contrary it’s all the competent people at Betsson who drive sustainability within their respective fields, where diversity is one such key area.”

Cath Burns
COO, Anaxi

As chief operating officer for Aristocrat-owned Anaxi, Las Vegas-based Cath Burns leads a team of 800 with a mission to expand the games provider globally, applying over 20 years of experience to her role.

At the forefront of Anaxi’s stellar progress over the past year, Burns has overseen deals with the fast-growing company’s expanding list of new partners, including BetMGM, FanDuel, Caesars and Penn Interactive.

Despite the company only being a year old, her influential leadership has ensured that Anaxi has become one of the most-sought after providers in North America.

Burns started her career in gaming at Bally Technologies as vice-president Asia Pacific back in 2006, where she established the company’s Asia Pacific head office in Macau. As well as holding key roles at Scientific Games, TCS John Huxley and Aristocrat, she has worked across Africa, South America and Europe.

As COO of Aristocrat’s newest business unit, Burns leads a strong team of leaders ranging from CXS to igaming, product, commercial, technology, content, communications and corporate affairs. As referenced by her own team, Burns’ dedication and valuable skills have made her the ideal leader to ensure Anaxi can truly establish itself on the global stage.

Her company mission has been to bring new games and innovative online experiences to players and customers every time – a proposition she has evidently succeeded in, given the company’s outstanding success over the past 12 months.

Under her leadership, the organisation has created a global team of creators and innovators to drive and inspire what they believe will be the next frontier of online gaming.

Ones to watch:

1. Danielle Calafato, chief commercial operator, Gaming Corps

2. Katie Kohler, igaming communications manager, BetMGM

3. Claudia Heiling, COO, Golden Whale Productions

4. Maria Loumpourdi, head of talent development, Betsson Group

Read parts one and two of our Most Influential Women 2023 countdown.

Profiles by Robin Harrison and Nick Brown