On the eve of Thanksgiving, plaintiffs from six states filed the civil lawsuit against Kalshi in New York claiming that the prediction market platform violated state gambling laws, engaged in illegal deceptive activity and unjustly enriched itself at the expense of its customers. Attorneys for the plaintiffs filed the suit one day after a Nevada federal judge lifted a preliminary injunction that previously enabled Kalshi to continue operations in the state. Kalshi indicated that it plans to appeal that judge’s decision.

Kalshi, which handled more than $1 billion in NFL event contracts in the first month of the 2025 season, described the class-action lawsuit as “meritless fiction”. In a statement released 26 November, Kalshi wrote: “This lawsuit demonstrates many fundamental misunderstandings about how federally regulated DCMs (designated contract markets) operate.”

The lawsuit appears to be the first of a class-action variety against a prediction market, an asset class that has grown rapidly over the last six months. The suit may trigger further debate on the role of market makers throughout the exchange trading ecosystem. Market makers are typically defined as firms that help facilitate the buying and selling of securities by providing liquidity.

Plaintiffs: Market makers benefit at expense of consumers

In April 2024, Susquehanna International Group (SIG) announced a partnership with Kalshi, under which it became the first institutional market maker to launch a trading desk dedicated specifically to event contracts.

Founded by billionaire Jeff Yass, SIG is a global quantitative trading firm that serves as a market maker for a wide range of trading products, particularly options and exchange-traded funds (ETFs). While Kalshi partners with other market makers beyond SIG, the prediction market has not disclosed the names of the other companies. SIG is widely viewed as Kalshi’s primary market maker.

According to the lawsuit, market makers benefit from their “unique contractual and technological integration” with prediction markets. The relationship, the plaintiffs contend, provides the market makers with unfair advantages such as reduced fees, differing position limits and enhanced access to the markets. Moreover, the advantages “greatly reduce” the market makers’ financial exposure, the plaintiffs allege.

“As a result, individual consumers hardly stand a chance, all the while thinking they are just betting against other consumers,” the lawsuit states.

A market maker essentially serves as a counterparty to ensure there is enough liquidity on the platform. For instance, a buy contract on the Detroit Lions to defeat the Dallas Cowboys this Thursday is priced at 61 cents on Kalshi (a payout of $164 on a $100 trade). For every trade, a counterparty must take the other side. At one point Tuesday morning, there were 138,689 contracts on the Lions at 61 cents for $84,600. However, a Kalshi user does not know if the counterparty is an institutional market maker such as SIG or another retail consumer.

Kalshi co-founder: An attempt to discredit prediction markets

Kalshi co-founder Luana Lopes Lara took exception with the lawsuit in a lengthy post on her X account. She called the allegations false, adding that any company with a large consumer base deals with lawsuits “that have no merit”. In addressing the market maker allegations, she stated that Kalshi is a peer-to-peer exchange that doesn’t have “a house”.

Along with SIG, Kalshi operates its own market maker, an affiliate called Kalshi Trading. The offering is a common practise within the industry, Lopes Lara said, emphasising that many financial exchanges have a similar setup. Last month, Kalshi Trading represented less than 6% of the platform’s making volume, she indicated.

She also criticised the author of a post on X who wrote that Kalshi misled users into adopting the belief that they wagered against other bettors, when in fact they wagered against the company. The author, who goes by the username @rawsalerts, received more than 460,000 views with the post.

“It’s not surprising that entrenched interests are seeding false narratives to discredit prediction markets: this is very similar to what the banks did to discredit the crypto industry (a good reminder not to blindly trust what you read online),” Lopes Lara wrote.

Alfonso Straffon, a prominent financial analyst in the sports betting space, wrote a letter to the US Commodity Futures Trading Commission ahead of a proposed roundtable on prediction markets. In a six-page letter, Straffon explained why betting markets on sports are driven by the same kind of economic forces and actors found in any financial market.

“In the business of sports betting, the bookmaker is no different than a market maker as defined in the world of financial markets, including those market makers authorized by the CFTC to provide liquidity on designated contract markets such as Kalshi,” he wrote.

Upcoming cases

Represented by three attorneys from law firm Lieff Cabraser Heimann & Bernstein LLP, the plaintiffs filed last week’s lawsuit in U.S. District Court for the Southern District of New York. After the New York State Gaming Commission sent Kalshi a cease-and-desist order from operating in the state, the company filed a lawsuit in October seeking to block the state from enforcing the order.

Besides New York, at least a half dozen other states have filed comparable orders against the prediction market site. The list includes New Jersey, Illinois, Nevada and Ohio, which all rank among the largest states nationwide in sports betting handle.

In September, Massachusetts Attorney General Andrea Campbell filed a suit against Kalshi alleging that it is operating in the state as an illegal sports betting platform. On 9 December, a court in Massachusetts will hold a hearing addressing the state’s preliminary injunction against Kalshi and the company’s motion to dismiss the case.

The new lawsuit comes as the nation’s top sportsbooks prepare for the debut of their own prediction markets. Both DraftKings and FanDuel plan to roll out prediction market platforms in the coming months. Soon after, they are expected to be joined by Fanatics, Coinbase and US President Donald Trump’s Truth Social platform. Kalshi is facing further pressure from news last week that SIG and Robinhood will form a joint venture to launch their own prediction market exchange.

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.

The trade-off is clear. Regulated businesses offer durable, if slower, returns and build genuine institutional equity value. Unregulated peers deliver rapid ROI but sacrifice longevity and rarely accumulate lasting equity.

For years, investors accepted this sustainability vs. speed equation. Recently, however, the “regulated markets offer certainty” argument has collapsed spectacularly.

Whatever happened to the grey?

The distinction between regulated and unregulated is now binary. Enforcement risk and institutional pressure have made operating in between untenable. Bet365 made headlines last May as bankers circled and liquidity-event rumours intensified. The backdrop: withdrawals from India in 2023 and China in 2025. Analysts estimated around £185 million in lost Chinese revenue – a trade-off the company appeared willing to accept to refocus on fully regulated markets.

Bet365’s retrenchment underscores that institutional-scale operators can no longer justify regulatory ambiguity – and how quickly crypto challengers move to occupy the space. Stake, BC.Game and other crypto-first platforms have expanded aggressively, serving global audiences from offshore jurisdictions.

Below is a Google Trends chart which shows a stark reality of the bleed from Bet365 to Stake over the past three years.

In 2025 we witnessed eye-watering valuations for unregulated crypto iGaming startups, often trading at parity or even a premium to regulated peers. Capital is impatient. With leverage expensive and M&A markets weak, allocators prioritise near-term cash generation. The traditional “safe” bet is being strangled by red tape and legal frameworks that squeeze onshore margins and stretch ROI timelines. As players and affiliates migrate offshore, liquidity and capital inevitably follow.

The protagonist: Tax and compliance burden

In key markets, the public take now exceeds 50% of GGR on certain products. Pennsylvania taxes online slots at 54%. New York takes 51% of sports-betting revenue. Germany taxes turnover on slots and poker, forcing operators to cut RTP and pushing players to unlicensed sites where their money goes further. The Netherlands hiked its online gambling tax to 34.2% this year and 37.8% in 2026. These policies wreck channelisation. Players chase value; affiliates chase traffic; investors chase cash.

Governments treat online gambling like tobacco or alcohol, forgetting that gambling lives on a borderless internet where VPN use is second nature (global data shows VPN penetration exceeding 40% in several key iGaming territories). Tobacco and alcohol cannot be consumed online (joking aside).

By copying policies built for physical vice markets, regulators ignore the elasticity of demand. When taxation and restrictions rise, players don’t stop gambling; they simply move to unregulated sites that offer better odds and familiar product features. Over-taxation and blunt restrictions will ultimately reduce treasury revenue while undermining player protection. Offshore operators often ignore responsible gaming tools and aggressively target vulnerable users. Until policymakers wake up, the gap between the regulated and unregulated sectors will only widen.

Reality cheque, please

Today’s hot thesis promises juicy yields, but is it worth the risk? Australia offers a sobering reminder. Since 2017, the ACMA has blocked approximately 1,000 illegal sites, resulting in more than 200 offshore exits.

One rule change or a coordinated payment squeeze can flip economics overnight. Crypto is no invisibility cloak – blockchains are traceable. The moment value hits a KYC off-ramp, identities attach. That limbo leaves a paper trail.

So why are valuation multiples converging? Two forces are at play: First, public-market compression: Regulated gaming stocks trade at roughly half the multiples of average tech peers, reflecting regulatory headwinds and slower growth. Private regulated deals anchor even lower. Public buyers can’t pay up without diluting their own stock unless synergies are ironclad. That structural ceiling compresses valuations across the regulated M&A chain.

Second, cash-yield hunger and scarcity. Unregulated valuations are driven by capital rotation and simple supply-demand dynamics. Investors are buying yield streams, not future listings. They price cash-flow yield, not blue-sky equity. The strongest bids go to businesses with high double-digit growth, minimal capex, unrestricted product features and borderless reach.

Unregulated assets can still sell, but the buyer pool shrinks with scale and multiples drop to low single digits. Policy sets the spread. Turnover taxes and GGR rates above ~35% crush onshore margins. Ad bans and product restrictions inflate CAC and shrink LTV.

Germany compounds the pain with stake limits and strict advertising bans, making market recovery nearly impossible. The result is more capital chases grey cash cows while they last.

The US has delivered shocks before: UIGEA (2006) and Black Friday (2011) reset online poker overnight. A similar jolt would reprice unregulated assets.

Operator signals matter. Tim Heath pioneered crypto-first betting withSportsbet.io and Bitcasino; his public pivot toward licensed frameworks is telling. If you want a strategic exit or institutional capital, play by the rules. The market ultimately rewards cash-generative and licensable over cash-generative and opaque.

What’s persistent, what’s transient?

Persistent (micro): As long as regulators overreach, then high taxes, blunt limits, weak channelisation and a vacuum remain. Nimble unregulated players will fill it, and risk-tolerant capital will fund them for yield.

Transient (macro): 2025’s volatility should fade (absent black swans). Falling rates and looser liquidity typically lift gaming equities. Cheaper capital also makes regulated cashflows more valuable, pulling pricing back toward licensed, auditable businesses. In the near term, quality assets may see narrow spreads; overtime, the premium should drift back to licensed operators as enforcement and traceability tighten.

As liquidity cycles turn, risk capital will again chase the highest yields, until policy/enforcement resets the spread. Each cycle brings the same lesson: yield can price anything until it can’t. Every yield has a half-life; know which one you’re buying.

Takeaway for capital allocators?

Don’t overpay for cash cows. If equity value and capital appreciation are capped, price for run-off, not fairy-tale exits. Price the licence. Value credible paths to regulated revenue; without them, expect earnouts and holdbacks. Audit the rails. Payments and AML posture determine bankability – weak rails mean a governance discount.

Assume traceability. The “anonymous” premium is gone. Investment always sits somewhere on the risk spectrum. Just make sure the reward justifies the ride.

BEN ROBINSON is managing partner of Corfai and an entrepreneur, investor and adviser with over 25 years of experience in iGaming, payments, tech and media. Since entering iGaming in 2009, Ben has led a global publishing business, co-founded and exited a crypto exchange and, through establishing RB Capital and Corfai, completed over 20 transactions and raised millions in investment capital.

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!

As part of Brazil’s Ministry of Finance, the Secretariat of Prizes and Bets (SPA) is taking a proactive role in shaping Brazil gambling regulations and establishing clear standards for a transparent industry.

Key points:

• The legalisation of Brazil’s iGaming market includes stricter online gambling regulations. 
• There are three major focuses for operators, namely anti-money laundering (AML), counter-terrorism financing (CTF) and the prevention of the proliferation of weapons of mass destruction.
• The SPA has outlined a set of robust AML and KYC requirements to verify player identity and ensure compliance with relevant regulations.
• Data centres and servers now have specific requirements to keep them secure and compliant with Brazilian gambling regulations.

For betting operators, the message is loud and clear. You need to have strong systems in place to prevent financial crime. Brazil’s gambling regulator, the Secretariat of Prizes and Bets (SPA), is raising the bar on compliance. Betting operators must now have robust policies in place for three key aspects:

• Anti-Money Laundering (AML)
• Counter-Terrorism Financing (CTF)
• Preventing the proliferation of weapons of mass destruction (PLD/FTP). 

Compliance is about building a culture that runs through the entire organisation. These rules require you to assess the risk level of every customer when they register and how you apply the same checks to employees and suppliers. 

AML rules under Brazil’s federal online gambling licence

The SPA enforces AML and KYC obligations rooted in federal AML legislation and COAF standards. Through Ordinance No 1,143/2024, the SPA translates these national rules into sector-specific procedures that operators must implement as part of their licensing and oversight.

Licensed operators must follow a strict AML/CTF framework, which is established under federal law and COAF rules and enforced by the SPA through sector-specific ordinances, to prevent money laundering, terrorism financing and the proliferation of weapons of mass destruction. This involves:

• Registering with the Council for Financial Activities Control (COAF)
• Implementing clear internal policies
• Conducting annual risk assessments. 

Related article:

• How to get a Brazil gaming licence

In addition to this, Law No. 14,790/2023 states that the authorisation to operate fixed-odds betting is conditioned upon the implementation of strict policies aimed at preventing Anti-Money Laundering (AML), Financing of Terrorism (FT) and the Proliferation of Weapons of Mass Destruction (PLD/FTP). SPA/MF Ordinance No 1,143/2024 mandates the policies, procedures and internal controls for the three aspects. A few key points to note are as follows: 

• Annual internal assessment to identify risks for AML & FTP
• Records and documents must be kept for at least five years
• Designated responsible person for Integrity and Compliance
• Annual report to be submitted to the SPA
• Providing regular training on the prevention of AML/FTP and other related crimes

KYC standards at the core of Brazil gambling regulations

Brazil’s iGaming regulations set a high standard for security and player protection. Strict Know Your Customer (KYC) procedures require bettors to verify their identity using their Individual Taxpayer Registration (CPF) number and facial recognition technology upon signup.

Operators must go further by rating players according to their risk profile. You will need to prevent prohibited individuals, such as minors, from registering. Don’t forget that electronic payments must flow through institutions authorised by the Central Bank of Brazil. Credit cards, cash and cryptocurrencies are completely off the table. 

Furthermore, licensed operators must submit detailed AML and CTF policies. Reporting suspicious transactions and screening for Politically Exposed Persons (PEPs) is also required.

What is Customer Due Diligence (CDD)?

On the other hand, CDD is a part of the KYC process, which mandates betting operators to gather necessary customer information in line with Brazil’s federal AML legislation, COAF requirements and SPA Ordinance No 1,143/2024. Similarly, there are a few points to pay attention to in the ordinance:

• Identification and validation: Identity must be verified and validated upon registration.
• PEP screening: Operators must verify if the bettor is a Politically Exposed Person (PEP) or a close associate, following the rules issued in this regard by COAF.
• Risk classification: Bettors must be classified into risk categories defined in the internal risk assessment.

Technical compliance requirements for the Brazil betting licence

The Brazilian government is now trying to shape its fast-growing gambling industry with an increasingly rigorous regulatory framework. As Brazil builds out its regulated gambling market, the focus is expanding beyond AML and KYC obligations.

Regulators are now placing equal weight on technical compliance, introducing strict standards for system integrity, data protection and operational security.

Federal licences require not only robust AML controls and mandatory KYC checks with facial recognition but also adherence to data centre rules mandating local hosting in Brazil and ISO 27001-certified infrastructure.

The regulatory discussion also reflects wider social concerns. Despite ongoing complexities, the industry is striving to balance its growth with a safer and more accountable betting ecosystem.

IT security and technical controls for the federal licence

First and foremost, the betting system, including the sports betting platform and online gaming platform, must be certified by a recognised certifying entity, as stated in the SPA/MF Ordinance No 722/2024. 

The certifying entity has to be recognised by the SPA, for example, Gaming Laboratories International LLC, Trisigma BV, Quinel Limited, eCOGRA Limited and BMM North America Inc.

Operators must revalidate the certification assessment reports annually and whenever there are changes to critical components. Operators should also have assigned a designated director for the operational security of the betting system during the application. 

Data protection and maintaining data integrity

Operators are required to maintain their betting systems and related data in data centres located within Brazil, as set out in Normative Ordinance No 722/2024. There is some flexibility if systems and data are hosted abroad in a country that has a joint civil and criminal International Legal Cooperation Agreement with Brazil. You must also meet all the cumulative conditions outlined in the ordinance.

As mandated in the aforementioned ordinance, all recorded data must be maintained and backed up for a minimum of five years. Data must be stored redundantly to prevent loss in case of component failure. Operators must also adopt a business continuity policy and a disaster recovery plan and ensure all systems are supported by an uninterruptible power supply to allow safe shutdown and data retention during power loss.

Data centre and server requirements for operators

The data centres that host betting systems must hold ISO 27001 certification. You must also store servers hosting betting systems in secure facilities and equip them with surveillance systems. They must be protected against alteration, tampering or unauthorised access.

Network and communications security standards

For licensed operators, there is a specific domain requirement. Fixed-odds betting sites must exclusively use the “.bet.br” domain registration. Domain Name System Security Extensions, also known as DNSSEC, are also mandatory for the domain registration for DNS security. 

Furthermore, all critical communication data and sensitive information must also be encrypted and protected. In order to prevent attacks such as Distributed Denial of Service (DDoS), an Intrusion Detection/Prevention System (IDS/IPS) is required and communications must pass through at least one approved application-level firewall.

Ensuring fairness in online games and live studios

The SPA has also imposed measures to ensure fairness in online casino games and live studios. Firstly, all online game results must be determined by a Random Number Generator (RNG). Secondly, it requires physical security controls to run live game studios. It is also a must to operate a continuous surveillance and recording system during live games. Recordings are to be maintained for at least 90 days. 

Key personnel roles required under SPA rules

According to the SPA/MF Ordinance No 827/2024, an administrator refers to a person who holds a management position, who is a director or equivalent, or a member of the board of directors of the applicant company. When submitting your application, you will need to name specific individuals responsible for the below areas:

1. Relationship with the Ministry of Finance
2. Customer service and ombudsman 
3. Accounting and finance 
4. Integrity and compliance 
5. Personal data processing and data security
6. Operational security of the betting system

Per the same ordinance, the people responsible for areas 1 to 4 must hold the title of director (or equivalent).

On the other hand, the SPA does not allow dual roles for people responsible for areas 2 to 6. In principle, you will need:

• 1 director – Accounting & Finance
• 1 director – Integrity & Compliance
• 1 director – Customer Service & ombudsman
• 1 director – liaison with Ministry of Finance (can be one of the above)
• 1 person – data protection (DPO-type role)
• 1 person – betting system operational security

Enforcement powers shaping Brazil gambling regulations

Brazil’s new betting framework gives regulators broad authority to supervise, audit and penalise licensed operators, if necessary. Multiple government bodies share oversight, with each playing a distinct role in maintaining market integrity, consumer protection and AML compliance. 

Operators must follow rules covering licensing, taxes, advertising and data protection. Several government bodies are involved in enforcing these requirements. Together, they shape how betting companies can operate in Brazil.

The Ministry of Finance

The Ministry of Finance serves as the central governmental body responsible for regulating fixed-odds betting operators in Brazil. The Secretariat of Prizes and Bets (SPA), a department of the Ministry of Finance, is Brazil’s federal gambling regulator. It was established by Law No 14,790/2023 in December 2023. Also known as “Lei das Apostas” or “Betting Law,” the law regulates the iGaming market nationwide, including both fixed-odds betting, virtual casino-style games and lottery.

The Ministry of Sport (MESP)

MESP is the governmental body responsible for defining, maintaining and updating the list of specific sports modalities and entities eligible to be the subject of fixed-quota bets in real sporting events. 

MESP carries out this responsibility mainly through MESP Ordinance No 125/2024, which clearly names the sports that can be bet on and prohibits betting on categories or events exclusively involving young athletes. 

Furthermore, MESP plays a crucial role in the overall regulatory ecosystem by confirming their approval after the SPA’s review of a federal licence application, before authorisation is granted. It assists the SPA in ensuring the integrity of sporting events.

Special Secretariat of the Federal Revenue of Brazil (RFB)

The Special Secretariat of the Federal Revenue Service (RFB) of Brazil is centrally responsible for administering federal taxes and the active debt of the Union, including establishing collection codes. 

From the fixed-odds betting lotteries perspective, the RFB has the authority to audit operations to ensure they comply with tax obligations, regardless of any licence or authorisation issued by the SPA.

Council for Financial Activities Control (COAF) 

The COAF is the central authority for monitoring and analysing operations to prevent anti-money laundering (AML), terrorism financing (FTP) and the proliferation of weapons of mass destruction (PLD/FTP) in betting operations.

As stated in SPA/MF Ordinance No 1,143/2024, operators must develop internal procedures to detect and communicate suspicious activity to the COAF via the Sistema de Controle de Atividades Financeiras (Siscoaf). The council also defines compliance standards, for instance, the criteria for identifying PEPs, as mentioned in the above KYC section.

Central Bank of Brazil (BCB)

The Central Bank disciplines payment arrangements to prevent transactions intended for unauthorised operators. Moreover, it grants authorisation to financial institutions and payment providers to manage monetary operations. While cryptocurrencies are not accepted in gambling payments, the Central Bank also supervises virtual asset service providers (VASPs).

Related article:

• Crypto gambling in Brazil: What new rules mean for operators

State-level authorities 

A federal licence from the SPA allows operators to offer fixed-odds betting services across the country, with an application fee of BRL30 million for five years.

Some operators have chosen to apply for state-level licences, such as those issued by LOTERJ in Rio de Janeiro, where the authorisation fee is BRL5 million. However, these state licences restrict operations to their respective jurisdictions and their validity outside those states remains under legal and regulatory discussion.

Consumer protection bodies 

As licensed operators, you will need to pay attention to customer relationships, as all bettors are assured basic rights under the Consumer Defence Code (Law No 8,078/1990). Licensed operators must structure a specific channel to address demands originating from the public bodies that are part of the National Consumer Defence System (SNDC). 

SNDC includes the National Consumer Secretariat (SENACON), which sets national policy. On the other hand, the local Consumer Protection and Defence Programmes (PROCON) handle day-to-day complaints. 

These agencies step in to oversee disputes as well as ensure promotional transparency and adherence to advertising standards. They are also responsible for enforcing responsible gambling tools, such as mandatory limits, pauses and self-exclusion.

Conselho Nacional de Autorregulamentação Publicitária (CONAR)

CONAR, a.k.a. the National Advertising Self-Regulation Council, establishes additional restrictions and guidelines with which companies voluntarily comply. It also issues specific recommendations regarding communication, publicity and marketing activities. 

In particular, CONAR published Annex X to its Advertising Code to ensure betting advertisements are responsible, focusing particularly on the necessity of protecting children, adolescents and other vulnerable persons.

Agência Nacional de Telecomunicações (ANATEL)

ANATEL is responsible for regulating the Internet service providers and telecommunications. It cooperates with the SPA to regulate unauthorised betting activities.

When the SPA identifies betting websites run by unlicensed operators, ANATEL has the authority to block the illegal websites upon the SPA’s instruction.

Autoridade Nacional de Proteção de Dados (ANPD)

The ANPD, a.k.a. the National Data Protection Authority, oversees compliance with Brazil’s General Data Protection Law (LGPD), ensuring gambling operators handle user data responsibly.

It enacts requirements around user consent, data security and breach reporting. Licensed operators must comply with ANPD standards when processing personal data or risk fines and other penalties. This covers information such as player registration (KYC), payment and banking details as well as responsible gambling records.

How CPI investigations influence industry compliance

CPI in Brazil stands for Parliamentary Inquiry Commissions. For example, the betting CPI was established to investigate the growing influence of online gambling on Brazilian families’ financial spending. 

The investigations have been shaping industry practices as they drive debates for stricter Brazil gambling regulations. Key issues such as misleading influencer advertising and money laundering were covered. The CPIs indeed increased pressure on operators for compliance. 

How to stay compliant with Brazil gambling regulations

As a potential applicant or a licensed operator, it is also important to stay updated with the latest news of the licensing framework. The Ministry of Finance website is an excellent resource for keeping yourself informed on Brazil gambling regulations. The ministry provides regular updates on aspects such as legislation and authorised certification bodies.

If you are interested in receiving regular updates and expert analysis via email, you might find signing up for our newsletter resourceful. You could also visit our Legal & Compliance section or check back in The Rulebook for essential updates. 

Brazil gambling regulation FAQs

From hearings and information demands to renewed pitches for the SAFE Bet Act, members of Congress are using cases involving MLB and NBA figures to argue that state-by-state oversight has left dangerous gaps in consumer protection and game integrity.

But operators and lobbyists counter that regulated books have helped uncover the misconduct now driving the headlines. They also see Washington’s partisan dysfunction as a major obstacle to any serious move toward a national sports betting framework.

“You have a situation where there is interest in the topic and will remain a lot of interest,” said Brandt Iden, vice president of government affairs at Fanatics Betting & Gaming and a former state representative in Michigan.

“Congress will do its job and there will be a committee hearing and air things out. What I hope is this is not a situation where it’s finger-pointing [and is instead] more a collaborative discussion on how it works. The reality is these things are uncovered because of the regulated market, and together it becomes an education process.”

Are more sports betting hearings coming?

In December 2024, the Senate Judiciary Committee held a hearing on sports betting that lasted approximately two hours and ventured off track into partisan arguments. Senator Dick Durbin, committee chairman at the time, said it was just the beginning of discussions on sports betting, but the committee did not hold another hearing.

Following the recent scandals, however, legislators are calling for information from leagues. The US Senate Committee on Commerce, Science and Transportation sent a letter to MLB Commissioner Rob Manfred with six questions. The committee set a 5 December deadline for response.

“MLB has every interest in ensuring baseball is free from influence and manipulation,” the letter reads. “But in light of these recent developments, MLB must clearly demonstrate how it is meeting its responsibility to safeguard America’s pastime.”

The MLB plans to cooperate in the questioning around Cleveland Guardians pitchers Emmanuel Clase and Luis Ortiz, who are accused of manipulating pitches to enable sports betting profits.

The same committee and members of the House Committee on Energy and Commerce also requested answers from NBA Commissioner Adam Silver. NBA staff members were reportedly on Capitol Hill earlier this month.

The House committee is also looking into the NCAA, which has had its own slew of sports betting scandals.

Could discussions highlight benefits of regulated market?

The sports betting scandals have caused lawmakers, as well as the general public, to question the integrity of sports and blame – at least in part – the widespread legalisation of sports betting. Many, including Durbin, have specifically called out the potential for manipulation of prop bets. Recently, major sportsbooks agreed at MLB’s urging to place a $200 cap on pitch-level microbets.

Some state regulatory agencies, including the Michigan Gaming Control Board, are reassessing the market and what bets should be available. MGCB Executive Director Henry Williams said the integrity of the industry requires “proactive safeguards designed to detect and deter misconduct before it occurs”.

Still, Williams stressed his belief that the regulatory system in place “prioritises transparency, accountability and consumer protection”.

Former New Jersey governor Chris Christie, who was the lead plaintiff in the 2018 PASPA case, wrote in an essay for The New York Times that legal sports betting strengthens integrity.

Iden said any discussions with lawmakers will likely be positive, because it will help them understand that the increase in legal sports betting and illegal activity is not the correlation it might appear to be.

“Too many lawmakers don’t understand how it works. It’s not a negative, just a fact,” Iden said, explaining sports betting is not a topic national lawmakers prioritise. “They want to be involved. They see headlines that there might be something there. We’ll see some committee hearings where leagues get up and provide public testimony.

“It’s a regulated system that works and it will likely happen again. If athletes continue to commit crimes, they’ll be uncovered. [Legal] sports betting is something that didn’t exist, and now it exists, and we’re uncovering nefarious activity that already existed.”

National framework unlikely to move

Lawmakers on Capitol Hill have filed numerous gambling-related bills over the past several years, but Congress has shown little interest in taking any up. That includes the SAFE Bet Act, first introduced last year by two Democrats, Paul Tonko in the House and Richard Blumenthal in the Senate. The pair held an event this month highlighting the human impact of sports betting.

“In order to truly address this rising crisis, the federal government must act to establish minimum safety standards. I’ll continue to highlight the importance of this issue to my colleagues and push for this common-sense legislation,” Tonko said in a recent statement to iGB.

State lawmakers and regulators are in a better position to alter existing laws and regulations. Ohio Governor Mike DeWine, who signed the law legalising sports betting in the Buckeye State, recently expressed regret about it to the Associated Press. DeWine also said the recent limits agreed to on MLB microbets do not go far enough. While he knows the votes to repeal sports betting in Ohio do not exist, he said he would sign a bill sent to him to do so. Lawmakers have filed bills in Maryland and Vermont to repeal their laws, but they did not advance.

One reason industry stakeholders are doubtful anything moves at a nationwide level is the divisive partisanship in Washington. When the initial NBA scandal broke last month, Congress was in a record-long shutdown.

“We have to put into perspective that we have a Congress that is basically not functional, and it’s not even functional when they have a government that’s funded,” one industry source told iGB. “There will be some congressional discussions. What that leads to in terms of federal solution, I think it’s unlikely in the near term.”

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.

With Texas lawmakers only convening in odd years, 2025 was a pivotal point in Sands’ expansion efforts. Sands’ controlling shareholder, Miriam Adelson, quadrupled her lobbying spend for this year’s session compared to 2023. Sands’ longtime government relations chief Andy Abboud told iGB in October 2024 that the chances of Texas gambling expansion were “greater than 50%”.

Lawmakers weren’t swayed, however, and any notion of legalising either casinos or sports betting was never considered. Sands’ highest-backed state Senate candidate also failed to even reach a run-off. Additionally, recent lottery scandals in the state have turned some officials further against gaming than before, and upcoming races for attorney general and lieutenant governor don’t look promising for the industry.

All of these developments have yet to deter Sands’ Texas casino dream. The company is again embarking on media campaigns, this time proclaiming that it could replicate its world-class Singapore resort Marina Bay Sands in the heart of the Lone Star State.

At the same time, Sands has this year given up hopes for a New York casino and abandoned its short-lived digital arm. Why, then, is Texas so enduringly attractive despite the lack of progress?

Texas has biggest pool of untapped population

The simplest explanation as to why Sands is still bullish on Texas is population. Its most recent estimates surpass 31 million residents, second only to California. The next most populous states, in order, are Florida, New York and Pennsylvania.

California and Florida are prohibitive to Sands, as both are markets where Indian tribes have exclusivity for Class III gaming. The company deemed New York to be unattractive due to the looming possibility of legalising iGaming, which is already legal in a Pennsylvania market crowded with all forms of gambling plus unregulated skill games.

Texas is both commercially untapped and conservative with gambling expansion, a perfect combination for a retail-only operator willing to make big investments.

“Looking at the US in general, Hawaii, Utah, downstate New York, Georgia and Texas are really the only greenfields left,” said Gene Johnson, executive vice president at consultancy Victor Strategies. “Texas is the biggest plum on the tree because of the lack of alternatives right now for the huge population and economic demographics.”

Johnson suggested that for Sands, the years of toil could be more than repaid by securing any kind of first-mover advantage. He surmised it’s “probably better to get half the pie in Texas” than a small slice of an existing or less attractive market.

Previous analysis from The Innovation Group estimated that the Texas casino market could generate $2.5 billion to $3 billion in annual tax revenue.

Market perhaps not as reliant on international traffic?

Another factor that could work in Sands’ favour is the idea that the Texas market might not be as reliant on international tourism as places like Las Vegas, Singapore and New York. Las Vegas stakeholders in particular have seen the headaches that a dip in international visitation can cause. Texas’ extensive population, which does have wealth pockets in tech and oil but is mostly local, could make for a “super-regional” type of property.

“I think it’ll be a great domestic market,” said Las Vegas-based consultant Brendan Bussmann of B Global Advisors. “Not just from pure population centres like Dallas and Houston, but also what you’re attracting from a regional setting.”

For years, neighbouring gaming states like Oklahoma, Louisiana and New Mexico have profited immensely from Texas’ lack of gambling expansion by welcoming Texans across their borders. If the state were to legalise its own offerings, some of that outbound traffic could stay local.

Bussmann guessed that a Texas casino could see domestic traffic rates of 92%-93%. There are no current comparisons to that sort of scenario, he said, but returns could be “exceptional” if major players like Sands get the green light.

Johnson noted that there are some international opportunities, but overall “the bigger opportunity is for the domestic customer, all this population in the Dallas-Fort Worth area and the Houston area, which you could serve with a very large integrated resort”.

Potential regulatory environment still very unclear

Perhaps the biggest unknown about a potential Texas casino market is the regulatory environment it would operate under.

Given how staunchly state officials have opposed gaming, it seems hard to imagine that the sector would be granted favourable regulatory conditions if it is legalised. But with limited competition, those factors might not be as important for Sands as it would be in other markets.

Johnson surmised that Texas casinos would face a “tolerable” environment, though Sands might be “willing to risk a pretty high tax rate” in exchange for growth opportunities. In Nevada, casinos face a tax rate of 6.75% but there is ample competition. New York has yet to issue licences for its pending downstate casinos, but the three finalists will see tax rates of at least 25% and 10% for slots and tables, respectively.

For Bussmann, the more important issue is crafting a message that resonates with lawmakers to even get the conversation moving in a positive direction, which has yet to happen. It may take more than one voice to get the ball rolling, a concession Sands might be loathe to relinquish.

“There’s a way to get this done, but it has to take a multi-pronged approach, not just a one-solution opportunity,” Bussmann said. “You need multiple operators coming in and saying, ‘Here’s a pitch,’ as opposed to, ‘Here’s one, and we’re gonna do everything we can to get it’. I just think you need multiple parties in the process to give different perspectives.”

However, despite these frequent interventions, breaches persist. The pattern raises a difficult question: why does non-compliance remain so endemic? The answer seems to lie in a complex mix of regulatory evolution, operational shortcomings and commercial tension between growth and governance. 

The numbers give an indication. A conservative estimate is that the total annual fines for regulated non‑compliance in the European gambling sector lie above €150 million per year. Spain is a leader among the European countries, both in number of non‑compliance cases and aggregate fines issued in recent years. The Spanish regulators imposed €142.7 million in fines on gambling and online gaming operators during 2024. 

According to Vixio’s AML Fines Outlook, regulators across Europe imposed more than €36 million in AML-related penalties alone between March 2024 and March 2025, underscoring the sector’s struggle to meet compliance standards that are tightening by the month. 

What’s happening across Europe?

In Britain, the Gambling Commission remains an assertive enforcer. Between April 2023 and March 2024, it issued £7.16 million in fines. Then for the period 1 April 2024-31  March 2025, the commission’s annual report revealed enforcement action against 24 operators led to £4.2 million in fines or regulatory settlements. A new seven-step process to calculate financial penalties was introduced by the Gambling Commission in October. They will now be based on a percentage of the offender’s gross gambling yield.  

In the Netherlands, the Kansspelautoriteit (KSA) introduced a tougher fining matrix for 2025, where Category 5 violations now carry penalties of between €2 million and €4 million. Last year, Malta-based online casino Gammix Limited was fined €19.7 million for unlicensed operations, one of the largest penalties ever imposed by a European regulator. 

Elsewhere – from Malta to Finland and Denmark – regulators are taking similar tough stances against regulatory non-compliance. Belgium’s Gambling Commission, for its part, handed out a record €4.6 million in fines last year. And in Italy, the regulator ADM imposed €1.35 million fines in advertising-rule breaches. 

Some industry stakeholders warn the black market will be the only beneficiary if enforcement becomes disproportionate relative to revenue. Regulators, however, counter that deterrence requires precisely that degree of financial sting. 

Compliance or competition? 

Industry observers note the longstanding compliance dilemma stems from competing imperatives. Regulatory requirements are complex and there is a tension between delivering commercial performance and meeting compliance obligations. 

“It is clearly obvious that the bar has been raised by regulators both in the UK and across Europe. The sharp increase of regulatory action we are witnessing, particularly around AML and social responsibility, paints a picture that all may not be as it should be in the regulated market,” says Victoria Reed, chief executive of Better Change. 

This friction is particularly acute in markets where margins are tightening. Melanie Ellis, a partner at Northridge Law in London, argues that investment in compliance infrastructure often competes with initiatives that promise faster returns. “The cost of compliance has increased massively. Operators are unable to divert sufficient funds to this function. In the UK, this particularly relates to the increased expectations in relation to customer monitoring and action.” 

She explains how it has become difficult to meet the GC’s expectations without significant investment in both software and personnel, particularly to enable immediate responses to indicators of money laundering or harm. 

That challenge is further complicated by demographic shifts – especially the rise of younger, digital-native gamblers – that put further pressure on operators to deliver seamless, instant experiences without breaching consumer-protection thresholds. 

Reactive to predictive

Britain’s Gambling Commission has sought to evolve from reactive enforcement to predictive oversight. Andrew Rhodes, its chief executive, told industry representatives at a briefing in November that nine operators had been suspended in recent weeks for “issues that we have repeatedly warned about – software provision and self-exclusion”. 

The commission’s new approach to non-compliance relies heavily on real-time monitoring through its Regular feed of Operator Core Data (ROCD) “Over 73% of last year’s consumer-protection assessments were rated good or satisfactory,” Rhodes explained. 

He credits the ROCD with allowing regulators to spot behavioural risk clusters – such as younger players who seldom set deposit limits yet reach thresholds of financial harm. The GC hopes this analytical capability will pave the way for “a truly risk-based regime”. 

Signs of progress 

Despite the headlines that non-compliancy makes in mainstream press, not everyone sees an unmitigated compliance crisis. Richard Williams, a specialist gambling, licensing and regulatory lawyer at Keystone Law, believes operators have made tangible progress. “If you go back five years and look at AML and social-responsibility compliance then versus now, the change has been huge – particularly around intervention when people are losing large amounts of money. Operators are far more responsible,” he says. 

The GC’s evolving stance also reflects a wider trend toward collaboration rather than confrontation. “We recognise there will always be tension between regulator and regulated,” Rhodes says. “But it doesn’t have to be adversarial. Working together productively has delivered progress.” 

Williams notes that regulators increasingly prefer structured action plans to outright licence reviews. “If improvement isn’t shown, then suspension or revocation can follow – but that’s becoming rarer,” he says. “It’s now more about raising standards than simply sanctioning operators.”

Non-compliance a fault of global expansion 

Nevertheless, non-compliance remains a concerning issue. Tamsin Blow, a lawyer at CMS London, observes why instances continue to occur: “Enforcement often results from operators grappling to understand and keep on top of multiple differing legal systems across jurisdictions, balancing parallel — and sometimes competing – obligations under AML, social responsibility, data protection and equalities law.” 

Breaches, in most cases, are not deliberate. “I’m sure it happens occasionally,” says Williams, “but I think it’s rare. If you look at the size of fines, which are often in the millions, and when you add legal fees, audits and licence conditions, it’s generally not profitable to be non-compliant. Most responsible operators don’t intend to breach rules.”  

According to Williams, the high number of compliance cases in the UK is a reflection of a particularly vigilant regulatory body. “Regulators in other markets doing only a handful of checks each year will naturally find fewer breaches.” Operators are being squeezed by rising duties, taxes and levies, he points out. “That pressure creates real challenges.” 

The Dutch toddler 

Taking a quick glance across Europe, if Britain represents regulatory maturity, the Netherlands is still finding its footing. Bjorn Fuchs, chairman of the Dutch trade body VNLOK, likens the market, which opened only four years ago, to “a toddler with a steep learning curve”. 

“The speed with which the bar has been raised, combined with multiple possible interpretations, can lead to misunderstandings, loss of oversight and sub-par execution,” he says. Operators, he adds, face heavy fines for responsible gambling lapses, particularly in self-exclusion and deposit-limit enforcement. 

Fuchs worries that “when regulatory burdens grow exponentially fast and become disproportionate, the legal market as a whole is at risk”. Still, he insists that genuine errors should be seen as part of a maturing ecosystem, not disregard of rules: “Operators that knowingly and structurally aren’t compliant should lose their licence to operate.” 

In Norway, where gambling remains a state monopoly, compliance takes a different form. Carl Fredrik Stenstrom, secretary-general of the Norwegian trade body NBO, says that “being the last-standing monopoly means the operator is under intense scrutiny. Even minor deviations are highlighted.” 

That scrutiny intensified after PwC’s 2025 audit of Norsk Tipping found “poor control and unclear leadership”, with excessive emphasis on innovation over quality assurance. For Stenstrom, the episode reveals that even monopolies are vulnerable to governance drift. “It’s very interesting that PwC issued such criticism for a monopoly company, which is supposed to just supply Norwegians with gambling products,” he notes. 

Trade bodies like NBO, he argues, are vital to maintaining accountability by providing a collective voice, engaging with politicians and communicating the industry’s perspective. He adds, too, that skilled regulators are essential. “Competent regulation ensures responsible and attractive markets.” Personal accountability for directors or turnover-linked penalties, he suggests, could complement strong institutional oversight. 

Reputational damage is another risk 

The financial cost of non-compliance is one thing, but reputational damage is another. Ellis warns: “When players, regulators or the public perceive repeated non-compliance, that can affect brand value and long-term profitability.” 

In markets such as the UK, where gambling advertising and social responsibility obligations are under constant political scrutiny, reputational harm can quickly translate into commercial risk, says Reed. “It is a huge reputational risk; we cannot portray the regulated industry as whiter than white and a safe place for people to play if the headlines continue to report huge fines as a result of failings,” she adds.  

The direction of travel, many agree, is toward data-driven, risk-based compliance. The UK’s ROCD system is a case study in how analytics can identify and mitigate risks. Similar approaches are emerging elsewhere: Sweden’s Spelinspektionen now ties fines to turnover, while the KSA in the Netherlands is experimenting with behaviour-based enforcement triggers. 

For operators, the challenge is to move to predictive oversight embedded in everyday operations. As Reed puts it: “The better operators understand the patterns regulators are monitoring, the better they can align their business practices and protect consumers – which benefits the industry as a whole.” 

The long game 

Looking ahead, Williams sees progress hinging on two fronts: “AML and social responsibility failings are often the same in not properly establishing a customer’s means or source of funds. But now there are far more mandatory limits, vulnerability checks and automated monitoring systems. Technology and machine learning have reduced human error, which was often the weak point.” 

He is skeptical about EU-wide harmonisation. “Each regulator wants its own rules. Harmonisation makes sense in principle, but in practice countries approach it differently.” 

Meanwhile, Blow believes enforcement has already peaked in Britain: between 2018 and 2023, annual enforcement cases ranged from 15 to 23; in 2024, they fell to around a dozen. “The market and the clarity of the regulatory regime have matured,” she says. “We may now see similar developments across Europe as other markets evolve.” 

Ellis adds that infrastructure will matter more than ever going forward. “Investment in compliance infrastructure would have the biggest impact on reducing non-compliance,” she says. “Unfortunately, this will be increasingly challenging if tax rates rise. Effective communication of expectations by regulators is also crucial.” 

Bjorn Fuchs argues for better balance: “The most effective lever for reducing recurring fines is a combination of strong accountability for operators and an effective dialogue between legislators, regulators and the industry.” 

After a decade of explosive growth and sporadic governance, Europe’s iGaming sector is learning that compliance must be built into the business model, hoping that compliance will shift from being a recurring headline to a quiet constant. Until then, the penalties – financial, operational, and reputational – will keep the conversation alive. 

Yet for all the industry’s twists and turns over the last decade – from the US opening its doors to online casino to the rise of crypto and 3D animations – there is still no shortage of industry chiefs who assume that what worked yesterday will keep working tomorrow.

Slots still dominate iGaming economics, sitting at the centre of every major platform as operators continue to invest heavily in the format. But the idea that player engagement will always orbit a single category should not be taken for granted. Digital entertainment has moved on, and audiences increasingly expect variety, progression and richer interaction than traditional one-dimensional gameplay alone can deliver.

Evidence is emerging in regulated markets too. In Pennsylvania, table-game revenue growth briefly outpaced slots during 2024, indicating that player appetite is widening beyond a single dominant format. Slots remain ahead by volume, but growth momentum in adjacent verticals signals a meaningful shift. Elsewhere, fishing titles and hybrid game types have gained ground, particularly in Asia and parts of Latin America, proving that alternative experiences can challenge long-established player habits.

The studios that adapt fastest to changing player preferences will be the ones that stay ahead. That philosophy underpins FA CHAI’s approach as the Asian-facing software developer accelerates its expansion into new markets.

Global mindset, regional depth

Founded in 2019, FA CHAI began life with a simple premise: combine global entertainment sensibilities with deep regional understanding. With a team holding over two decades of combined iGaming and casino games experience, the Asian provider quickly established itself across regional markets by prioritising art quality, unique game mechanics, and cultural storytelling. It has since expanded with GLI‑certified production, a global distribution footprint and a product cadence in line with top‑tier studios.

Crucially, FA CHAI has not built its brand on slots alone. While slot development remains one of its core engines, the company has deliberately structured its portfolio to include fishing, arcade and table titles.

“In an industry where hundreds of new titles launch every month, speed and sensitivity to market shifts make all the difference,” said Colbie Huang, head of sales and business development. “We constantly monitor player behaviour and regional trends in real time, designing content that feels both local and global at once. Our goal isn’t just to release games – it’s to deliver experiences that players remember.”

This approach – global scalability paired with cultural authenticity – sits at the centre of FA CHAI’s expansion strategy as it enters Europe and the Americas.

Expanding player choice

FA CHAI’s product portfolio spans four distinct content pillars: slots, table games, arcade experiences and fishing titles – with each category designed to serve specific player profiles.

Slots remain foundational, and the studio continues to refine and expand the category. Recent hit Sugar Bang Bang 2 exemplifies this evolution. The sequel retains a beloved symbol-transforming mechanic, but layers in elimination multipliers and an Extra Bet system that unlocks expanded boards and premium symbols. Every win advances the multiplier, creating accelerating momentum rather than static repetition. It is an example of how FA CHAI rethinks format depth without abandoning accessibility.

“In Sugar Bang Bang 2, we wanted to enhance the core mechanics, making every spin feel even sweeter,” the studio explained. “The refined multiplier system and special symbol transformations deliver more strategic opportunities and bigger, more rewarding wins.”

In fishing games, FA CHAI has seen exceptional traction. In certain countries, the studio’s fishing titles have overtaken slots on certain platforms. The flagship Gods Grant Fortune is defined by immersive 3D combat, cinematic effects and an upgrade path that supports meaningful player progression. A standout feature is the high-multiplier god-target system, capable of awarding players massive payouts. Elements such as timed vulnerabilities and strategic item deployment introduce bursts of excitement that naturally increase engagement and elevate play duration organically.

This success is not limited to Asia. During a recent event in Latin America, Brazilian operators and players consistently called FA CHAI’s fishing category the most eye‑catching at the show – a signal that the vertical has global expansion potential when paired with strong design and game mechanics.

Arcade experiences, anchored by the industry‑first Coin Dozer, bring yet another play style to the portfolio, while table games round out a well‑diversified lineup aimed at long‑term retention rather than single‑vertical concentration.

Diversification, for FA CHAI, is not about stepping away from slots; it is about widening the field. Operators gain more touchpoints, and players gain more ways to explore, progress and find experiences that reflect their tastes — whether that is a fishing title, a table game, or a slot with new rhythm and cultural texture.

Gamification designed for loyalty and longevity

FA CHAI recognised early that modern iGaming audiences value progression, collection mechanics and earned status. The company’s Level Achievement System and Card Collection Module are designed to deepen repeat play by building emotional connection with the experience as well as financial incentive.

Studies show that interaction with game elements facilitates basic psychological need satisfaction, while industry research suggests platforms adopting such systems can achieve satisfaction scores nearing 80%. FA CHAI’s results align: operators integrating its gamified systems report longer session times and higher return frequency.

“Engagement comes from emotional connection,” Huang noted. “These systems reward not only with bonuses and free spins, but also with progression and discovery. We want players to feel they’re part of something larger than a single spin – that sense of growth keeps them coming back.”

Guided by innovation and regulation

Entering regulated markets requires agility – both in technology and mindset. FA CHAI builds content to support compliance requirements across licensing frameworks while preserving creative identity and game mechanics integrity. GLI, BMM and Gaming Associates certification supports this, alongside a technical roadmap designed for modular feature deployment and fast iteration.

Regulation is seen not as an obstacle but as a design parameter. For FA CHAI, compliance shapes the creative process rather than constraining it, supporting innovation that is both responsible and market-ready.

AI is one of iGaming’s most disruptive forces, but FA CHAI sees balanced adoption as the key to protecting originality. The studio uses AI to streamline production and enhance testing efficiency, but narrative, structure and mechanics remain human‑crafted.

“AI helps us move faster, but it doesn’t replace creativity,” Huang emphasised. “Math models, feature design and art direction still come from human imagination. AI amplifies ideas – it doesn’t generate them.”

“We constantly monitor player behaviour and regional trends in real time, designing content that feels both local and global at once.”

Personalisation, hybridisation and cultural depth

Huang expects the industry’s next phase to prioritise adaptive game mechanics, personalised rewards and cross‑genre blends. FA CHAI is investing accordingly.

The studio is actively developing hybrid slots with adventure mechanics, fishing titles with tournament systems, and table games layered with achievement progression.

“The next wave of iGaming will be data‑driven and deeply personalised,” Huang said. “We are developing systems that adapt to player patterns, evolve difficulty dynamically and support more narrative progression.”

In a market where lasting success depends on keeping players satisfied, FA CHAI is proving that innovation grounded in culture and variety delivers results. Its approach offers a clear model for how iGaming can evolve without losing its appeal.

Colbie Huang, head of sales and business development at FA Chai

Several weeks after Truth Social disclosed plans to launch Truth Predict, a new prediction market platform, a Senate committee grilled Michael Selig on the controversial topic Wednesday. Asked by Senator Elissa Slotkin, D–Michigan, how he will respond if Trump advised him to design a carveout for Truth Predict, Selig indicated that he plans to follow the letter of the law in the applications process.

Selig, who is Trump’s second pick to chair the US Commodity Futures Trading Commission, made the comments at his confirmation hearing before the Senate Committee on Agriculture, Nutrition, and Forestry. Crypto.com, which will partner with Trump Media on the platform, received CFTC approval in September to hold a designated contract market licence.

In response, Selig stated that he will always “uphold and stick to the law”, adding that if President Trump remains in compliance with requisite ethics rules and submits an application, he would go “through the same process as everyone else”.

If confirmed, Selig will become the seventh chairman of the CFTC since 2000. The CFTC was established through the Commodity Exchange Act, a 1936 federal law that regulates commodity and futures trading.

The committee narrowly approved Selig’s nomination on Thursday afternoon. Selig advanced by a 12-11 margin, on a vote along party lines. Brian Quintenz, Trump’s previous nominee, testified before the Senate over the summer, but the nomination did not advance out of committee.

Latest moves by sports betting market leaders

The committee held the confirmation hearing on the heels of announcements by the nation’s two largest sportsbooks that they will roll out sports prediction markets in select states. The impending launches by FanDuel and DraftKings could raise the temperature in a heated battle on states’ rights versus federalism in the regulation of sports event contracts.

Both companies outlined plans to debut prediction markets on recent earnings calls. Following its acquisition of Railbird Exchange, DraftKings said on 8 November that it plans to launch a prediction market offering in the coming months. Days later, Flutter announced that it will offer sports event contracts on its new prediction market site, FanDuel Predicts. The offering will be available through Flutter’s partnership with CME Group.

As traditional sportsbooks prepare for their leap into prediction markets, the operators have cut ties with the nation’s largest lobbying group for the gambling industry. Both companies announced Tuesday that they are leaving the American Gaming Association, a casino trade group that opposes the proliferation of prediction markets.

HoldCrunch founder Tom Johnson discussed the impact of the impending launches this week in a meeting with Truist Securities analyst Barry Jonas. Although the listings in non-sports betting states will put FanDuel and DraftKings on the map, Johnson views the competitive landscape as an “open playing field,” with established companies such as Kalshi.

Also this week, CME Group issued a memo detailing the launch of several sports event contracts. Pending CFTC regulatory review, Chicago Mercantile Exchange, Inc. plans to list contracts on pro football, college football and pro basketball starting 6 December.

CFTC nominee punts to the courts

Selig, who serves as the chief counsel of the SEC’s Crypto Task Force, is in favour of principles-based regulations that will protect consumers from fraud and manipulation. While the committee spent a large portion of the hearing seeking his views on the regulation of crypto spot markets, he fielded several questions on sports event contracts.

The most heated exchange occurred during a line of questioning from Sen. Adam Schiff, D–California. One rule, CFTC Regulation 40.11, prohibits event contracts that violate a so-called public interest test, including those pertaining to war, assassination, terrorism and gaming. However, advocates of sports event contracts have a differing view on the treatment of the contracts.

Josh Sterling, an attorney who has represented Kalshi, has argued that while the activities are enumerated in the act, they are not expressly “illegal”. Speaking at a gambling industry event in July, Sterling stated that the activities are subject to review on whether they are contrary to the public interest.

Schiff criticised the CFTC for its failure to issue guidance on whether sports event contracts violate existing regulations. He also pressed Selig on whether contracts that involve “gaming” are in violation of federal law.

“These are questions for the courts,” Selig replied. “They are really complicated issues of interpretation.”

Further discussion on sports event contracts

Schiff was not the only committee member to address the topic at the hearing. Several others, most notably Democratic Senators Cory Booker of New Jersey and Amy Klobuchar of Minnesota, broached the subject. When asked to expound on the legality of sports event contracts, Selig noted on at least six different occasions that he will defer to the courts on the matter.

Booker, a former football player, spent a portion of his time discussing the sports betting scandals that rocked the industry in the last month. He credited several regulated sportsbooks for detecting suspicious activity that led to a slew of criminal charges. “Given these recent events, it’s all the more concerning that sports event contracts are being offered without the same monitoring,” he said. Kalshi maintains a partnership with integrity monitor IC360.

Klobuchar, the committee’s ranking Democrat, asked Selig if the CFTC has ample resources to regulate the new markets. The nominee replied that if confirmed, he will take a close look at the agency’s resources to ensure that it has enough to fulfill its mission.

Dina Titus, a congresswoman from Nevada who co-chairs the Congressional Gaming Caucus, also weighed in. In a statement posted on X, Titus wrote:

“CFTC regulations clearly prohibit event contracts based on gaming, and as such, the agency must crack down on platforms that improperly offer event contracts on sport outcomes. Failure to enforce these rules not only infringes upon the rights of states and tribes but also undermines market integrity and consumer protection in the games the public enjoys.”

Vote on CFTC nominee Thursday

Truth Social, an alternative social media platform, is owned by Trump Media & Technology Group. Before returning to office for a second term as president, Trump insisted that he would not sell his stake in the company. While Trump initially held a 52% stake estimated to be worth at least $2.3 billion, the company issued new shares that diluted his stake to about 41.5%.

Trump’s refusal to divest his stake has been met with criticism among some leading ethics groups. Citizens For Responsibility & Ethics in Washington urged Trump to divest his shares following his 2024 victory, citing the influence foreign governments could exert through investments in the company. The president disclosed several stock transfers in Trump Media over the summer in a 234-page list of public financial disclosures with the US Office of Government Ethics.

Truth Social is on track to become the first social media platform to launch a predictions market. Trump Media did not respond to a request from iGB for comment.

Brazil has captured much of the gambling sector’s interest this year after regulation launched on 1 January, with a number of international giants entering the market.

One such company was Flutter, which created its new Flutter Brazil business after acquiring a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional.

That deal was concluded in May and, in Q3, Flutter achieved $87 million in revenue from its Brazil venture. This was 412% higher than the $17 million it generated in the same quarter last year prior to the completion of the NSX deal, which largely came from its existing Betfair business.

But while Betnacional achieved record iGaming revenues in Q3, excluding M&A Flutter’s revenue during the quarter was actually down 18%, which Flutter attributed to the fact that Betfair Brazil was still continuing its recovery from the friction derived from the re-registration required at the start of regulation in January.

Despite the Betfair struggles, Flutter CEO Peter Jackson remains confident the company will succeed in Brazil.

“Brazil is an exciting growth opportunity for Flutter and we retain a strong conviction that scale operators with the best products will win the largest share of the market,” Jackson said in the Q3 report.

Entain hampered by poor sports margin

Entain, meanwhile, enjoyed a successful transition to the regulated market with its Sportingbet brand, reporting a 21% year-on-year NGR rise in Brazil during H1.

But Q3 was a different story, with NGR in Brazil down 11% despite 14% volume growth.

Entain deputy CEO and CFO Rob Wood put this down to “genuine bad luck from sports results”, stating the company is still trading on the right side of expectations when it comes to volume.

He expects sports margin to normalise over time, with the volume growth demonstrating why Flutter continues to be enthused about its future in Brazil.

It’s not just sports betting where Entain struggled during Q3, however, with Wood saying slow game authentication has hampered the company’s iGaming efforts in Brazil.

“iGaming is not particularly strong at the moment and all the growth is coming from sports,” Wood said on the earnings call. “We think this is a market-wide phenomenon, not just Entain.

“The good news is we think there’s a lot more growth to come out of gaming as we look forward. But so far in 2025, it’s been slow.”

BetMGM investing heavily in Brazil

Last August, MGM Resorts International struck a partnership with Grupo Globo, LatAm’s largest media group, to introduce the BetMGM brand to the Brazilian market as a joint venture.

The company has stated on a number of occasions that it is aiming to reach 10% market share in Brazil, and it reiterated this target in its Q3 presentation.

MGM achieved “strong growth” in Brazil during Q3 without giving direct figures. The company is focused on efficiently building brand awareness and customer acquisition, powered by its on-the-ground team led by MGM Brazil CEO Almir Ribeiro.

However, MGM Resorts International CFO Jonathan Halkyard said the company’s heavy investment in Brazil will likely lead to MGM Digital reaching an EBITDA loss of close to $100 million for the year.

Halkyard explained the company’s investment is in line with its roughly 50% stake in the JV, which is already showing positive signs.

“The venture has seen encouraging growth quarter-over-quarter throughout the year in active players, deposits and GGR,” Halkyard said on the company’s earnings call.

Record LatAm casino revenue for Betsson in Q3

Betsson continues to make significant efforts in LatAm, launching in Brazil and Paraguay during 2025 to add to its existing markets which include Argentina, Colombia and Peru.

It is proving a successful venture, with Betsson achieving year-on-year revenue growth of 10.2% to €76.5 million in LatAm over Q3.

This was powered by record casino revenue in the region, rising from €46.1 million in Q3 2024 to €56.6 million in the same period this year.

Casino growth helped to offset a year-on-year drop in sportsbook revenue from €23.1 million to €19.8 million. Betsson put this down to tough comparisons with last year’s Q3 which included the European Championship and Copa America football tournaments.

LatAm accounted for 26% of Betsson’s revenue in Q3, down from 28% in Q2.

Betsson CEO Pontus Lindwall pointed to Argentina, Peru and Colombia as key areas of focus, with the former continuing to show strong underlying growth in terms of deposits and turnover.

Codere Online positioned to become a leading player

Codere Online is currently operating in the LatAm markets of Mexico, Colombia and Panama, as well as certain provinces in Argentina.

Its current total addressable market (TAM) is €4.8 billion, although it noted in its Q3 presentation the combined TAM of online expansion markets, which includes Brazil, Peru and Uruguay, could be €8.4 billion by 2029.

In the presentation, the company said: “Codere Online is especially well positioned to become a leading player across the region.”

Mexico continues to be Codere Online’s biggest market, achieving market revenue of €26.8 million in Q3. This is ahead of the €22 million generated in its home market of Spain.

However, with Mexico’s government weighing up increasing the gambling tax rate from 30% to 50%, Codere Online said it may have to reconsider its investment into the market.

Outgoing CFO Oscar Iglesias, who will shortly be replaced by Marcus Arildsson, expects the tax to come in from 1 January.

“The discussions around capital allocation, I think, is a broader one, and it’s in the context of the discussions we’re having at the board level,” Iglesias told analysts.

“The tax obviously factors into … our appetite and willingness to invest into the market because it has an impact on the unit economics, the flow-through of every dollar of NGR to EBITDA in the business.  

“It’s still a little bit early to say what that means in terms of our plans for next year to invest in Mexico.” 

Codere Online is also working under the assumption that the 19% VAT in Colombia, which is set to end from the start of 2026, will be renewed.

Codere Online Executive Vice Chairman Moshe Edree explained the operator’s short- to mid-term strategy “does not include Colombia”, echoing CEO Aviv Sher’s post-Q2 comments that the company was pulling back in the market.

RSI confident Colombia VAT won’t be renewed

But while Codere Online is expecting the VAT to be renewed, Rush Street Interactive CEO Richard Schwartz said on the company’s post-Q3 earnings call that the business is predicting the tax will be scrapped.

Rush Street Interactive followed many other operators in absorbing the tax through player bonusing. This meant in Q3, while GGR from Colombia grew over 50%, net revenue was down 27%. Revenue across LatAm fell 11%.

Despite this, Rush Street Interactive believes it holds second place in Colombia, while it also claims to be among the top seven operators in Mexico.

Monthly active users in LatAm during Q3 were up 30% year-on-year to around 415,000.

Rush Street Interactive listed Brazil, Ecuador, Argentina and Chile as potential expansion opportunities.

When asked on the earnings call whether the situation in Colombia may dampen the company’s interest in further LatAm expansion, Schwartz responded by saying the company was still excited by the region.

“We believe those markets are at the infancy of growth,” Schwartz said. “And as we see in our growth ourselves, there’s lots of opportunity there, and it’s a very large population across Latin America that are in the process of or will be legalising online gaming in the future. So we certainly remain very excited for it.”

Kambi lowers FY2025 guidance due to slow Brazil progress

In its Q3 report, Kambi announced it was lowering its full-year 2025 guidance from an adjusted EBITDA of €20 million-€25 million to approximately €17 million.

The company said this was in part down to the Brazilian market developing more slowly than expected, with CFO David Kenyon stating the company isn’t seeing the growth in Brazil it had “hoped for”.

Kambi CEO Werner Becher said on the earnings call that while the Brazil market is continuously growing, he believes the overall pre-regulation market size was overstated.

“There’s a little bit of disappointment, I would say, in the entire industry about the Brazilian market,” Becher claimed.

“The legalised regulated market grew slower than expected because the black market is still very big there.”

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

The campaign is crammed with evocative imagery: coin-pushers on sea promenades, bookies wedged between the chip shop and the newsagent, fruit machines with glowing buttons that evoke the warm memory of holidays. The Sun’s 8.7 million daily readers are told this is not actually about taxation, but an attack on “our way of life”. 

It is safe to say that what began as a technical fiscal recalibration has become a noisy public brawl about British culture, high-street decline and, not least, the right to personal choice and a harmless flutter. 

As Matt Chapman, The Sun’s racing columnist, writes: “By slamming the betting industry government will indirectly be telling you how you can – or in this case can’t – spend your money.” 

Farage enters culture war 

For a long time, arguments over gambling regulations and taxation have been contained among think-tanks, industry consultants and the occasional treasury committee hearing. But now the Labour government’s plan to overhaul gambling duties and increase taxes on remote gambling duties – with proposals reaching as high as 50% of gross gaming revenue (GGR) – is drawing strong reactions. 

Part harm-reduction exercise, part revenue-raising manoeuvre has collided with national nostalgia and The Sun, never shy about riding a political wave – as seen in its successful pro-Brexit campaigning in the run-up to the 2016 referendum – is very much pushing the debate. 

Protecting high-street livelihoods

The newspaper has said its campaign is a defence of punters and high-street livelihoods. This is an argument in line with that of gambling industry bodies such as the Betting and Gaming Council (BGC) who have warned of job losses of up to 40,000 and a £3 billion blow to the economy if the proposed tax hikes come into force. The sector has also been extremely vocal about high-street bookmakers facing an existential threat if a higher Remote Gaming Duty is enforced.

The Sun’s ‘Save our Bets’ activism has immediately attracted support from the right of the political spectrum, most notably from Nigel Farage, whose Reform UK party is currently the most popular party in the UK. More than a third of voters have said they would vote Reform UK if there were elections today, according to polling data.  

Farage’s constituency of Clacton-on-Sea in Essex is a seaside town that very much thrives on summer tourism – ripe with bingo halls, slot machines and gambling opportunities that play an integral part of the town’s entertainment offerings. Farage has called Labour’s tax plans an assault on British culture. He believes a betting tax hike will do nothing to help problem gamblers. 

Leader of the Conservative Party Kemi Badenoch has also spoken out against Chancellor Rachel Reeves’ plans designed to help fill a financial black hole. Badenoch accuses Labour’s “fun police” of taking a “nanny state approach” to betting, which she said could kill off the industry. 

Sun’s campaign evokes mixed feelings 

But the campaign has not been received entirely well by some within the gambling industry. “I’m uneasy about how the debate has been positioned,” says Dan Waugh of Regulus Partners, one of the sector’s most respected analysts. “This childish idea that gambling is a battle between good and evil has taken hold.”  

But Farage’s involvement, he concedes, is legitimate – he leads the most popular party in the polls after all. And as Waugh points out: “The Liberal Democrats and the Greens, for example, have developed positions that are explicitly anti-gambling. It would be worrying if none of the political parties were prepared to stand up for people who enjoy betting, bingo and horse racing.” 

Waugh does not approve of the spectacle into which policy has been conscripted. “The issues are complex,” he says. “We’re not helped by the noise.” With The Sun’s campaign and the public debate growing louder, the situation could perhaps offer a chance to improve transparency and push for more evidence-based policy. It may also give the gambling industry an opening to publicly challenge the government’s tax proposals. 

Operator support for Sun’s ‘Save our Bets’

Neal Luke, a gambling compliance consultant, says the issue is twofold. While the Gambling Commission is investing heavily in data and research, most people will never read it. What matters is how that information shapes regulation – and how clearly the public can understand what’s been considered. 

“The public will only see headlines. It’s about making sure they know what’s been considered, in plain English, from a neutral place – not a political one.” Asked what a neutral source would look like, Luke argues that today’s opinions are shaped by short-form online content, making balanced communication more important than ever. 

Among operators there is a positive acceptance of The Sun’s war on the government’s plans and of Nigel Farage’s outbursts. For Betfred’s Head of Communications Mark Pearson, the message should be about one thing only. 

“For me this is not about media framing but getting the message across that the country’s betting shops are already in a very, very fragile position. Any hit on the high street is going to close betting shops with job losses and less money going to racing and the treasury. Once betting shops close, they are not coming back,” Pearson says.  

A spokesperson for Flutter UK&I also backs the media campaign. Putting taxes up for any business is not a free hit; it has consequences, he stresses. “It’s great to see The Sun’s ‘Save Our Bets’ campaign as it gives a voice to the customer – and customers have been overlooked in the debate driven by anti-gambling groups so far this year.” 

Think tanks push back industry claims 

The “anti-gambling groups” that Flutter UK&I refers to are primarily the think tanks The Institute for Public Policy Research (IPPR) and Social Market Foundation. Both are pushing hard for a higher gambling tax. And both are heavily supported by several influential political voices, such as former Labour prime minister and chancellor Gordon Brown, who believes that the tax hike could help end child poverty in the UK, making the tax hike not merely a regulatory tool but a moral undertaking.  

“We tax cigarettes at 80%, we tax alcohol at 70%, but the online gambling tax is 21%. So there’s a big case for change. I think the gambling companies could well afford to pay a tax – and I want that money to go to child poverty,” he told Sky News. 

Dan Waugh of Regulus Partners worries that the entire debate, including the industry’s approach, has lost its anchor in evidence. And, in the end, a campaign led by a tabloid newspaper may not make things clearer. “Public debate is chaotic,” he says. “Statistics are misused across the board.” 

The most talked-about levy 

Grainne Hurst, the BGC’s CEO, attended the Reform UK conference earlier this year and was photographed alongside Farage, who in spite of popularity remains a divisive political figure. 

“It was a pleasure to lead the Betting and Gaming Council team at the Reform UK Conference this week. We had constructive discussions with senior figures in the party about the importance of a strong, sustainable and well-regulated betting and gaming sector,” Hurst wrote in a post on her LinkedIn page.  

Explaining the reason for her presence she added: “I will always stand up for our industry – one that supports 109,000 jobs, generates £6.8 billion for the economy, contributes £4 billion in tax and serves the millions of people who enjoy a bet responsibly.” 

‘Necessary lobbying’ for the sector

Waugh sees Grainne Hurst’s presence at Reform UK´s conference as a necessary part of the trade body’s lobbying efforts. “Operators should engage with a wide range of stakeholders, in my view. If anything, the industry has been far too passive in recent years in the face of an orchestrated campaign to close it down.” 

Others, who prefer not to speak on record, are less cheerful, noting that any perception of ideological capture could backfire while Labour is weighing its final tax design. What happens next will depend on whether Chancellor Rachel Reeves allows public clamour to overshadow the data on her desk.  

The government knows the gambling sector billions in tax revenue; it also knows online gambling has grown rapidly and that harms persist. It must weigh those realities against the possibility of shuttered shops, reduced racing revenue and a migration to offshore operators. 

For now, the noise grows as The Sun has succeeded in making gambling tax the most talked-about levy in Britain. Whether this results in better policy in the eyes of the industry – or simply more polarisation – remains to be seen. 

Christie, a former New Jersey governor, served as the lead plaintiff in the 2018 PASPA case, one that led to the largest expansion of legalised sports betting in US history. Following 2017 oral arguments before the Supreme Court, Christie argued on the famed steps that the federal government overstepped the Constitution with its 1992 ban of sports gambling.

Now, as players from the NBA and MLB are facing a slew of criminal charges in connection with match manipulation, Christie contends that the system is working. The players are among more than three dozen defendants charged by the US Attorney’s Office of the Eastern District of New York in a sweeping illegal poker-sports betting case. Last week, Christie went on a media blitz to double down on his position.

In stating his claims, Christie wrote in a guest essay for The New York Times that when it comes to “ensuring the integrity of sports”, legal betting has achieved more in seven years than “prohibition did for decades before”.

Concerns about sports betting integrity

Last month, two days after the start of the NBA regular season, prosecutors from the Eastern District named 38 defendants in the comprehensive case, including three figures from the NBA. Among them are Miami Heat guard Terry Rozier, who is accused of deliberately underperforming in several statistical categories to ensure the outcome of a prop bet. Interim US Attorney Joseph Nocella Jr. described the case as the largest investigation of the sports betting market since the PASPA decision.

The Rozier case and others are not signs of a “system in crisis”, Christie wrote, but rather confirmation that proper mechanisms are in place to “catch the cheating”.

In response to the indictments, the US House Committee on Energy and Commerce wrote a letter to NBA Commissioner Adam Silver seeking information on the actions the league plans to take to limit the “disclosure of non-public information” for betting purposes. The committee is examining allegations of illegal gambling and sports rigging that resulted in “tens of millions of dollars in fraud, theft and robbery”, according to the letter.

The allegations raise “serious concerns about sports betting and the integrity of sport in the NBA, which harms fans and legal sports bettors”, stated the letter from congressmen Brett Guthrie of Kentucky and Frank Pallone Jr of New Jersey.

Tonko: Voluntary self-policing has failed

Since PASPA’s repeal, leading proponents of the regulated markets have called on the US Justice Department to crack down on betting in the offshore black market, where Americans still wager billions per year. Still, some argue that offshore sites maintain guardrails on betting that legal apps do not offer.

One insider, who spoke with iGB on Monday, said the limits for player props, if offered at all, are very low on the offshore sites. By comparison, the defendants in the current case allegedly placed five-figure wagers on a litany of props.

Representative Paul Tonko of New York has also contacted the NBA to express his discontent with the uptick in criminal allegations. Tonko, co-author of the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, has sought to establish a federal framework for the legal sports wagering market. Alarmed by the criminal accusations, Tonko contends that professional sports leagues have prioritised commercial partnerships with gambling operators over integrity.

“Claims of prioritising integrity ring hollow when leagues have sold credibility to gambling operators, integrated betting content into broadcasts, normalised wagering for teenagers, glorified it in advertising, and then failed to prevent criminal conduct from taking hold within the sport,” Tonko wrote in a series of letters to Silver and six other commissioners.

Tonko took it one step further, contending that the reliance on “voluntary self-policing” in the legal sports betting industry has failed. If the integrity of professional sports depends on federal law enforcement alone, the current system is already broken, Tonko mused.

“The choice before you is now explicit. Either engage directly with Congress to establish mandatory federal guardrails that restore integrity and protect the public, or stand in opposition and accept responsibility when the next scandal breaks and more families and lives are destroyed,” he wrote.

Pitch-by-pitch wagering

However, Christie countered concerns about integrity in his pointed op-ed piece, as he enumerated the detection capabilities at the disposal of sportsbook operators. In using sophisticated high-tech software, several sportsbooks detected unusual betting patterns in recent cases and flagged them to regulators, Christie wrote.

The former New Jersey governor also discussed the transparency of the regulated market in an interview on ESPN with Stephen A Smith. In the poker matter, three New York mob families backed the rigged games, then took a cut of the action, prosecutors allege. If an organised crime family detects illegal sports betting activity, it is foolish to believe that they will “pick up the phone” and call NFL Commissioner Roger Goodell, or his counterparts at the NBA and MLB, Christie argued.

After the NBA case broke, a judge unsealed further indictments that resulted in the arrests of two pitchers from the Cleveland Guardians. The MLB pitchers, Emmanuel Clase and Luis Ortiz, are accused of conspiring with gamblers to rig the outcomes of pitch-by-pitch betting props. The bettors won approximately $450,000 on the wagers in question, including roughly $38,000 on a single pitch from Clase, according to prosecutors.

“Regulated betting didn’t create these integrity issues, it has revealed them,” Christie stated.

NBA launches internal investigation

One defendant in the recent NBA sports betting case, former guard Damon Jones, has ties to the Los Angeles Lakers. A close friend of LeBron James, Jones served as an unofficial assistant on the Lakers’ bench in 2022-23. Jones is accused of disseminating non-public information of a James injury to a bettor, who capitalised on the inside info. Jones has pleaded not guilty to several felony charges related to the gambling probe.

The NBA has hired an independent law firm to investigate the allegations in the indictment. Multiple teams have been approached by investigators, including the Lakers, ESPN reported. In addition, a Lakers assistant trainer and an executive administrator voluntarily gave up their phones to investigators, according to The Athletic.

“As is standard in these kinds of investigations, a number of different individuals and organisations were asked to preserve documents and records,” the NBA wrote in a statement. “Everyone has been fully cooperative.”

Former college player admits to point shaving

On Monday, former University of New Orleans guard Cedquavious “Dae Dae” Hunter admitted that he manipulated the outcome of several games in the 2024-25 season. Appearing on ABC’s “Good Morning America”, Hunter explained that he devised code words with a teammate to indicate that they planned to shave points.

Hunter also admitted that he previously lied to NCAA investigators about his participation in the scheme. Investigators from the NCAA also determined that players from Arizona State and Mississippi Valley State allegedly took part in separate point-shaving schemes.

“I just had a child, and the school wasn’t paying me money,” Hunter said. “ I was trying to get money to actually take care of my child.”

While several defendants from the federal case based in Brooklyn have reportedly been tied to the college point-shaving scandal, Nocella said his office is not investigating the college probe.

Christie, meanwhile, appears to discourage the federal government from intervening in the legal sports betting market.

“New Jersey has built a system that doesn’t just collect taxes, it builds trust,” he wrote. “There’s no denying that sports betting is more visible than it was a decade ago – that’s by design. Legal markets bring sunlight, they create standards and they bring better accountability.”

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. 

The deal represents a significant shift for locals-focused Golden and allows VICI to penetrate further into the Las Vegas locals market, which has seen great success since the start of 2024. Under the terms of the deal, publicly traded Golden will now be taken private by chairman and CEO Blake Sartini.

Golden shareholders will receive a fixed exchange ratio of 0.9 shares of VICI stock and a cash distribution of $2.75 per share held at closing from Sartini. The overall consideration of $30 per share represents a 40% premium to its 5 November closing price, the day before the the deal was announced.

The company will continue its quarterly $0.25 per share dividends through closing, which is set for mid-2026. VICI agreed to pay up to $426 million of the operator’s current debt. Notably, the deal includes a “go-shop” clause that allows Golden to solicit “alternative acquisition proposals from third parties” through 5 December, the company said.

“We are pleased to combine our high-quality Nevada casino real estate with one of the most attractive experiential real estate platforms in the country and partner together to unlock value in our company and explore future opportunities,” Sartini said in a staetment.

VICI President John Payne added that his firm has “sought exposure to the attractive Las Vegas Locals gaming market since our inception”. He described the market as having “sticky, durable customer bases”.

Downtown and locals market increasingly attractive

The health and long-term prospects of Las Vegas’ economy have generated much debate in 2025. After multiple record years post-Covid, the city is feeling the effects of declining visitation and volatile gaming revenue. From a business perspective, perhaps the most notable trend to arise from these conditions has been a resurgence of the downtown and locals markets as consumers seek more value-oriented options.

According to the Nevada Gaming Control Board, downtown Las Vegas finished +2% year-over-year in revenue for fiscal year 2025, and the locals market was +5%. The Strip, by contrast, was -3%. Even when the Strip had its best year ever in FY24, downtown was still +2% and the locals market was +7%. Locals revenue in particular is nearing $2 billion per year, easily the second-biggest total in Nevada behind the Strip.

REITs like VICI and Gaming and Leisure Properties have amassed a large portion of Las Vegas’ casino assets through sale-leaseback deals in recent years. But as such assets become increasingly scarce, firms have had to devise new growth avenues and funding mechanisms. VICI’s portfolio features more than 50 casinos in 15 states, but in Vegas it had notably lacked a downtown or locals property.

“This transaction diversifies VICI’s real estate ownership in Nevada, an attractive gaming jurisdiction due to its stable regulatory environment and low tax rate,” the company said in a release. “The transaction also provides VICI with exposure to the Las Vegas locals market, which was the second largest gaming market in the US in 2024 by gross gaming revenue. The locals market has long been targeted by VICI due to its key characteristics of consistent and stable growth, strong demographic and demand tailwinds driven by population trends, and high barriers to entry.”

Will private ownership help Golden Entertainment?

VICI acquired the land assets for the following properties from the following markets:

• The STRAT Hotel, Casino & Tower, north Las Vegas Strip
• Arizona Charlie’s Decatur, locals market
• Arizona Charlie’s Boulder, locals market
• Aquarius Casino Resort, Laughlin
• Edgewater Casino Resort, Laughlin
• Pahrump Nugget Hotel & Casino, Pahrump
• Lakeside RV Park & Casino, Pahrump

In total, the properties include 6,000 hotel rooms, 4,306 slots and 78 tables. VICI is charging Sartini an overall master lease of $87 million per year, with a 30-year term and four five-year renewal options. The rent will increase by an annual rate of 2% starting in year three.

The STRAT is the highest-profile asset among them, though it has had something of a snake-bitten history. Since opening in 1996, the property’s famous tower has become a staple of the Las Vegas skyline. The 1,149-foot tower is the tallest free-standing observation tower in the US and the tallest structure in Nevada. But its location on the far north end of the Strip has always been its biggest hurdle, as it is essentially between the Strip and downtown.

Consultant and former regulator Richard Schuetz was brought in as president of the STRAT in its first year to help stabilise operations after a rocky opening. He told iGB that the tower is an “unbelievable” asset and tourist attraction, but that appeal might have a shorter lifespan than a typical resort that can remodel and reinvent itself more over time. Further, its location apart from the rest of the Strip means it “just doesn’t get that walking traffic” that feeds other properties.

“It’s kind of in no-man’s land,” Schuetz said.

Sartini will now try to maximise the properties’ value under private ownership. Golden’s casino-resort segment saw revenue and EBITDA declines in Q3 and its locals casino segment was flat.

Most locals operators have steered clear of REITs

By diving into the sale-leaseback trend, Golden Entertainment is breaking from its contemporaries. The other two main locals operators in the region, Red Rock Resorts and Boyd Gaming, have so far abstained from selling their real estate. Both companies have enjoyed massive success in the last two years with a notable lack of rent escalators.

Sale-leaseback transactions give operators a huge cash infusion that helps in the short to medium term, especially when multiple projects are in need of financing. But once that money is spent, the future expenses only go up. And most locals operators are inherently conservative, meaning their finances are not as stretched as might be the case for international firms.

“With the strength of our balance sheet, the strength of our cash flows and our ability to access other forms of financing, we just don’t have a need [for REITs],” Boyd CEO Keith Smith told the Nevada Independent in 2023.

Red Rock is even more opposed to REITs, as the company has long deployed the strategy of acquiring and holding real estate for future projects. According to its Q3 investor presentation, the company holds 461 acres of undeveloped land in Nevada worth an estimated $950 million.

Sartini and Red Rock are closely connected – the Golden CEO is the brother-in-law of Red Rock bosses Frank and Lorenzo Fertitta. Earlier this year, there was some intrigue about the fact that Red Rock launched a new tavern brand, called Seventy Six, which now directly competes with Golden’s tavern business.

When asked on an earnings call about the added layer of competition, Sartini said Golden’s “size and our brand is a significant competitive advantage”.

“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.

Across the iGaming industry, artificial intelligence (AI) has been heralded as a game-changer in terms of player engagement.

However, despite grand proclamations by many advocates of the technology, applications across the sector remain inconsistent and, in many cases, merely exploratory.

While an increasing number of businesses in the space are deploying AI across elements of their day-to-day operations — almost 90% by some estimates — many lean on light-touch, bolt-on solutions rather than fully embracing transformational AI-driven opportunities.

However, some are discovering that a more holistic approach is paying dividends, and accelerating their AI journey.

CyberBetX, a leading B2B solutions provider for gaming enterprises, has integrated the technology into the heart of the business – a strategy that it believes is helping to scale opportunities.

Embedded at the core

“At CyberBetX, we believe that live iGaming is no longer simply about the game mechanics – it’s about the entire immersive experience. That’s what led us to embed AI at the core of our operations,” Joe Wu, CyberBetx Manager, says.

CyberBetX has developed two standout AI-powered solutions designed to enhance live player experiences.

With the AI Green Screen Engine, the aim has been to transform how virtual studio production is undertaken – enabling real-time background removal, 3D scene integration and brand customisation.

Meanwhile, the AI Dealer Filter uses facial recognition and real-time enhancement to automatically adjust lighting and skin tone, preserving natural expressions while improving visual quality.

“Together, these innovations reflect our long-term vision: to elevate live entertainment in iGaming, making it more immersive, scalable and flexible for global operators and multiple languages,” Wu says. “By using AI not just as a support tool, but as a production engine, we’re positioning iGaming for the next era.”

Authenticity, fidelity and presentation

The overriding aim is to make the gameplay experience as natural, professional, engaging and immersive as possible.

On this point, CyberBetX stresses the importance of authenticity in AI-driven presentations and maintaining a consistency of brand across different lighting and environments.

“Our analytics show that players value visual fidelity and consistency as much as they value game mechanics,” Wu says. “Minor discrepancies in lighting, brand presentation or background context can influence their comfort and trust levels.

“These insights led us to prioritise the Dealer Filter’s facial-level correction and the Green Screen Engine’s rapid brand-asset switching capabilities. In development, we now treat presentation quality as a key product dimension alongside UI/UX and game logic – because players notice.”

Whereas some operators are harnessing AI to adjust game odds, for example, CyberBetX’s focus is on enhancing the presentation of gameplay and the player environment.

With the AI Dealer Filter, each session can dynamically adjust to platform conditions – giving players a more consistent visual experience regardless of device or location. Meanwhile, the Green Screen Engine enables brand-tailored or language-specific overlays to be incorporated, with the aim of delivering more relevant live experiences.

“Because the core game mechanics remain intact and fair, we ensure responsible gaming standards are upheld,” Wu explains. “Personalisation is about how the game is delivered and never about changing the playing field.”

One of the key challenges for any regulated iGaming enterprise is to balance AI-powered innovation while maintaining compliance, transparency and fairness. Given this, CyberBetX says that a principle of “augmented production, not black-box decisioning” is followed across all of the enterprise’s AI systems – including the Green Screen Engine and Dealer Filter.

“The AI is visible, controllable and auditable; it enhances what your team does, rather than replacing judgement,” Wu says. “This gives us two benefits: we keep our innovation cutting edge, but we also ensure full traceability, brand safety and regulatory alignment.

“For example, lighting correction or background rendering operate under clearly defined parameters; player outcomes or fairness aren’t governed by opaque models. This separation builds trust with operators, regulators and players alike.”

Driving revenues

The ultimate aim, of course, is to drive customer loyalty – underpinned by boosting retention and reducing churn. At the heart of this is a focus on understanding player behaviour by acting on data touchpoints, and tailoring experiences through production that will resonate with the end user accordingly.

“While the Green Screen Engine and Dealer Filter focus on production, they feed into our broader analytics and prediction ecosystem,” Wu says. “For example, by tracking viewer drop-off points tied to visual presentation changes, we identified that brief delays or inconsistent visual quality led to increased churn.

“By using our production AI to eliminate those friction points – via smoother backgrounds or consistent lighting – we have seen longer session durations and higher return rates among partner operators. In short: production quality powered by AI has become a real lever for engagement optimisation.”

“These innovations reflect our long-term vision: to elevate live entertainment in iGaming, making it more immersive, scalable and flexible for global operators”

Cutting costs

Whilst AI has been used to drive revenues, there have also been key cost savings by incorporating AI automation into live studio operations.

For instance, with the AI Green Screen Engine, CyberBetX has managed to reduce traditional set-up and post-production workflow by at least 60-70 per cent, leading to “significantly” reduced studio operating costs.

“Sessions that once required manual background switches, lighting fixes and brand overlays can now be executed in seconds with the correct operational set-up,” Wu says.

“The AI Dealer Filter automates lighting correction and facial tone calibration in-stream, removing the need for extensive manual retouching. Together, these efficiencies translate to higher throughput, faster brand roll-outs, and more flexible multi-brand and language live studio operations.”

Addressing the challenges

Inevitably, though, the integration of real-time AI across live gaming environments comes with some challenges. In a sector in which there is huge value placed on consistency of appearance and the gameplay experience, any unwanted delays can be hugely problematic.

“The single biggest challenge has been delivering real-time precision at broadcast scale, while maintaining zero or minimal latency,” Wu explains. “Live gaming doesn’t permit delays, and when you overlay AI tasks such as background segmentation in the Green Screen Engine or live facial enhancement in the Dealer Filter, you are operating at the intersection of heavy compute and strict performance thresholds.”

CyberBetX tackled the challenge by adopting edge-computing architectures, which process data near its source rather than it being processed via a central cloud or data centre. By optimising models for live streaming pipelines and building fallback mechanisms, the live feed can remain uninterrupted, even in testing conditions.

This focus on real-time precision feeds directly into CyberBetX’s broader modular architecture, designed in-house for adaptability and speed across markets.

“The AI Green Screen Engine combines computer-vision, real-time rendering and brand asset workflows in a unified pipeline – something few providers in iGaming offer,” the company states. “The AI Dealer Filter similarly integrates facial recognition, lighting correction and live streaming optimisation specifically tailored for live-dealer workflows.

“This integrated design means we don’t bolt on AI – we build it into every layer of the production stack, giving us agility, consistency and depth of control.”

The backbone of iGaming

While the consensus across the industry suggests that gaming businesses should avoid diving head-first into AI before they understand the related opportunities and challenges, few doubt that the technology will have a transformational impact.

Indeed, CyberBetX is certainly not alone in believing it will not only optimise operational efficiency, but will also redefine the player experience to fuel growth.

“We foresee AI becoming the invisible backbone of next-generation live iGaming,” the business states. “From dynamically customised virtual studios via the AI Green Screen Engine to human-centric live presentation via the AI Dealer Filter, AI will enable experiences that feel bespoke to the player, yet scalable for operators.”

In practice, this approach will result in personalisation on an unprecedented scale, based on data-driven player preferences.

“Operationally, studios will be able to switch themes, languages and brands in seconds; production pipelines will shift from manual to automated. For players, live sessions will feel more immersive, consistent and engaging,” Wu concludes.

“At CyberBetX, we believe that AI will be the defining enabler of how live entertainment meets scale, flexibility and human authenticity in the years ahead.”

As was the case in Q2, Wynn posted Las Vegas gains in Q3 while MGM and Caesars lamented soft conditions and chastised themselves for poor pricing.

Wynn’s Las Vegas casino revenue grew 11% year-over-year to $161.5 million for the quarter, and the company is now 15% ahead of where it was at this point last year. Its Las Vegas casino metrics were up across the board in Q3, including table game win (+11%), slot win (+10%) and poker rake (+11%). All three of those metrics are up at least 4% year-to-date.

By contrast, MGM’s Las Vegas casino revenue was down 5% in Q3, and while its slot win was up slightly (+3%), it was offset by a 6% slide in table game win. The company’s Las Vegas casino revenue is flat year-to-date. Caesars fared worse, posting an 11.5% YoY decline in Las Vegas casino revenue in Q3. This quarter’s results dragged the sector to -4% year-to-date for Caesars.

To this point in 2025, MGM’s stock is down 2.5% and Caesars has fallen 40%, whereas Wynn is up 55%. All three companies operate the same games in the same market, so why is Wynn winning while the others languish?

High-value clientele buoying Wynn in Las Vegas

Brand and clientele are perhaps the first reason why Wynn is outshining its Las Vegas casino competition. The company caters almost exclusively to the high-end luxury market, whereas Caesars and MGM offer a mix of higher- and lower-end properties.

One of the biggest trends for Las Vegas in 2025 has been declining visitation and volatile gaming revenue. Tourism has been down all year but revenue has vacillated up and down.

Macroeconomic pressures like sticky inflation and interest rates, high tariff costs and an ongoing government shutdown have impacted low- to mid-tier consumers, but the highest rollers are still showing up, which plays into Wynn’s strengths.

“Mass gaming and [average daily rates] are, of course, levered to visitation, because they’re both either demand-driven or correlate to the number of people that are coming through the doors every day,” Wynn CEO Craig Billings said on an earnings call last week. “High-end gaming, very different, right? That’s about the equity markets. It’s about host-to-customer relationships, one-to-one selling, the specific service in the building, that particular customer and what they’re doing.”

‘Unrelenting when it comes to value for their dollar’

Caesars and MGM must find ways to cater to all customers and provide value to each segment, but Wynn is able to fine-tune its approach to a select group. While there has been a lot of discussion this year about the “value” of Las Vegas, Billings said his company is the best at delivering on lofty expectations and justifying higher costs.

“Wynn Las Vegas is not necessarily built for those visiting Las Vegas on a tight budget,” he told analysts. “Our customer generally isn’t the customer who focuses on cost alone, but they are the type of customer who is really unrelenting when it comes to value for their dollar, right? Their expectation of that perceived value could not be higher.”

Slot consultant and retired casino executive Buddy Frank told iGB it’s surprising to see such strong relative casino performance in a particular market by one company over others. This is because “mass volumes and [hold] percentages tend to hold true over time”. However, this equation changes when the players are higher value.

“The exception to [that premise] comes from those casinos who have a strong percentage of what I call high-roller guests, or ‘whales’, and also those who have highly volatile games like baccarat,” Frank said.

While all of the Big Three would fit those definitions, Frank stressed that “a single player or group of players can have a dramatic effect on overall outcomes”. It appears that Wynn is having more success in finding and retaining those needle-movers than its competitors.

Most Las Vegas operators leasing real estate from REITs

From a business perspective, Wynn is also unique among Las Vegas casino operators because it has not followed the sale-leaseback real estate trend.

Most companies – especially MGM and Caesars – have opted to sell and lease back their properties from real estate investment trusts. Top gaming REITs VICI Properties and Gaming and Leisure Properties (GLPI) have long owned most of Las Vegas’ casino assets.

Under these arrangements, escalating annual rent becomes a huge expense that can be a drag on performance. Caesars, for example, leases a total of 24 casinos, 18 from VICI and six from GLPI. In its 10-Q form, the company said a “significant portion” of its liquidity needs are for “debt service and payments associated with our leases”. Its estimated lease payments to both companies in Q4 is $338 million.

MGM has been even more aggressive in selling its domestic real estate, including all nine of its Las Vegas properties. The company has paid $571 million in operating lease costs year-to-date, per its 10-Q, and it reports $25 billion in total operating lease liabilities. It expects to pay $460.7 million in operating leases in Q4.

Wynn still owns all of its Las Vegas casino real estate and therefore pays no lease costs in the market. Additionally, the company owns another 34-acre vacant plot on the Strip that it has not yet committed to developing.

Early moves saving money later for Wynn

Overall, Wynn has been very decisive in recent years about narrowing its focus to its core land-based markets. That decisiveness has streamlined its operations and reduced unnecessary expenses.

In 2023-24, the company exited the online gaming industry altogether by dissolving its WynnBet brand. And this year, it pulled out of the New York casino race before submitting an official bid, limiting its exposure and expenses in a process that Caesars and MGM ultimately exited from months later.

Caesars and MGM have both invested substantial resources and time in their online gaming divisions, though neither is close to matching sports betting and iGaming market leaders FanDuel and DraftKings.

Caesars Digital has seen growth in 2025 but is widely expected to be spun off or sold as it outpaces its retail division. BetMGM is having its best year to date in 2025 and is returning cash to parents MGM and Entain. Still, it has yet to record a profitable year since its formation in 2018.

In the New York casino licence race, Wynn had originally proposed a $12 billion mixed-use development in Manhattan, the biggest potential investment among those initially in the field. But it folded the proposal before jumping through any hoops, whereas Caesars and MGM both went on to file official bids and participate in the various rounds of consideration.

Caesars was eliminated from contention in September when rejected by a local community board, while MGM was considered a frontrunner all year before pulling out in October. In MGM’s case, such a late withdrawal resulted in $93 million in non-cash write-offs and a non-cash goodwill impairment charge of $256 million, per financial filings.

The charges against Emmanuel Clase and Luis Ortiz arguably represent the most serious gambling infractions against any Major League Baseball players since the historic PASPA decision in 2018. As set forth in the indictment, the defendants rigged specific pitches in advance of their appearances on the mound. According to prosecutors, the pitchers then provided non-public information to their co-conspirators, who used the information to place hundreds of fraudulent bets on the pitches.

On at least five occasions dating back to May 2023, Clase provided information to co-conspirators that was used to place thousands of dollars in bets. The bettors won approximately $450,000 on the wagers in question, with about $400,000 from information provided by Clase, prosecutors allege.

“When corruption infiltrates the sport, it brings disgrace not only to the participants but damages the public trust in an institution that is vital and dear to all of us,” said Joseph Nocella Jr, who serves as interim US Attorney for the Eastern District of New York. “Today’s charges make clear that our office will continue to vigorously prosecute those who corrupt sports through illegal means.”

Allegations of rigged microbets

Clase, a three-time MLB All Star, received American League Relief Pitcher of the Year honours in 2022, a season in which he led MLB in saves. Prior to that season, he agreed to a five-year, $20 million extension that included a $2 million signing bonus. It did not deter him from allegedly conspiring with a bettor as early as 2023.

In furtherance of the conspiracy, Clase informed an individual identified as “Bettor 1” of the type of pitches he planned on throwing at certain points of a sequence. In most cases, they agreed that Clase would miss the strike zone, usually on the first pitch when he entered a game. Before a Guardians game against the Mets on 19 May 2023, Clase provided advanced information to a bettor on a specific pitch that he intended to throw.

In many instances, Clase informed his co-conspirators of the type of pitch he intended to throw, enabling the bettors to win large wagers on a pitch speed prop. Against the Mets, “Bettor 1” and several other bettors won $27,000 by wagering that a pitch by Clase would exceed 94.95 miles per hour.

Deliberately hurling pitches into the dirt

According to the indictment:

– On  3 June 2023, Clase faced the Twins, the Guardians’ AL Central rival. The bettor and several co-conspirators won $38,000 on multiple parlays that Clase would throw a ball and his pitch would be clocked at under 94.95 mph. Federal authorities captured screenshots of the pitch that landed low and in the dirt.

– Nearly two years later, Clase “requested and received” a kickback payment in exchange for agreeing to throw certain pitches. On 12 April 2025, several bettors won $15,000 on a parlay that Clase’s pitch would be a ball and would be clocked at under 98.45 mph. Clase threw the pitch into the grass well before home plate. On the following day, Clase directed the bettor to send some of the winnings to the Dominican Republic.

– On 15 June 2025, Clase and Ortiz conspired to rig a pitch from Ortiz. Before the game, Ortiz agreed to throw a ball on his first pitch in the second inning. In exchange, Ortiz received $5,000, prosecutors allege. Under the arrangement, Clase also received $5,000. The bettors wagered approximately $13,000 on the microbet for a payout of $26,000.

A push to ban microbetting

The indictments were unsealed in the Eastern District of New York, which has become an epicentre for cracking down on illegal sports betting. Last week, the first of three NBA figures were arraigned in a dual sports betting-poker scheme that has rocked basketball. In light of the historic indictments, multiple federal lawmakers have called for a ban on prop bets.

Also this month, Ohio Governor Mike DeWine has resumed calls to prohibit microbetting on baseball. Over the summer, DeWine wrote a bulletin to the Ohio Casino Control Commission urging the regulatory agency to remove prop bets on “highly specific events” within games that are “completely controlled by one player”. During the MLB All-Star break, MLB Commissioner Rob Manfred remarked that certain microbets, specifically ones on pitches, are “particularly vulnerable” to manipulation.

MLB released a statement on Sunday that said: “MLB contacted federal law enforcement at the outset of its investigation and has fully cooperated throughout the process. We are aware of the indictment and today’s arrest, and our investigation is ongoing.”

The indictments represent the fourth integrity case against a major US sport over the last month, following stories involving the NBA, college basketball and the UFC.

A lengthy prison sentence

Both pitchers are facing several charges – including wire fraud conspiracy, honest services wire fraud conspiracy, conspiracy to influence sporting contests by bribery and money laundering conspiracy – for their roles in the alleged schemes. Ortiz, 26, was arrested on Sunday at Logan International Airport in Boston. The Guardians pitcher was scheduled to appear in federal court in Boston on Monday.

In a statement provided to ESPN, an attorney for Ortiz said that the pitcher is innocent of the charges and that he “would never improperly influence a game”. Chris Georgalis, an attorney for Ortiz, wrote that the charges relate to only two pitches thrown by his client.

MLB suspended both pitchers over the summer, pending further investigation. If convicted, the pitchers each face up to 65 years in prison. As of Sunday afternoon, Clase was not in US custody, according to a press release from prosecutors.

Like all sectors, iGaming is not immune to such internal contrasts and potential conflicts. Indeed, many believe that incorporating a variety of opinions into strategic planning ultimately pays dividends.

However, while clear points of alignment between C-level leaders and operational staff can ensure a cohesive and coordinated approach, some discrepancies can prove problematic.

Software development provider EvenBet Gaming’s  ‘iGaming Future 2026: Core Trends and Challenges’ report lifts the lid on such issues.

The latest edition of the in-person survey gathered the thoughts of more than 700 iGaming professionals – and uncovered some key takeaways for enterprises in the sector to consider as they navigate strategic, regulatory and operational tasks.

Unearthing marketing discrepancies

Within this complex landscape, the findings relating to marketing were particularly eye-catching, according to EvenBet Gaming CEO Dmitry Starostenkov, who highlights the information sources being used by respondents to gain iGaming industry insights.

“While the general picture might look somewhat similar, with social media and in-person networking and events leading for both the C-suite and general public, the devil is in the details,” he says.

“For example, while generally social media serves as the most important channel for 54% of respondents with significant leverage on everything else, for CEOs, the difference between social media, in-person networking, and events and conferences is barely noticeable.”

“Digital and personal connections are equally important at this level.”

Interestingly, the survey found that C-level executives in mature markets lean more on traditional information sources with, for example, 32% of European CEOs using email newsletters and 47% relying on online media. Conversely, in Asia, the share is only 24% for both channels.

Meanwhile, there are signs that iGaming leaders are ramping up their efforts to retain their top talent.

Decision-makers are paying significantly more attention to talent retention, innovation adoption, and market adaptation than before. In the previous edition of the report, all respondents ranked recruitment above retention, but in 2025 the focus appears to have shifted.

Facing regulatory challenges

However, for the third year in a row, across all those surveyed, one issue stood above all others as the most important challenge in the sector: gambling regulations.

Understandably, C-level executives were more likely to consider such issues as severe than other employees (23% versus 19%), while both segments ranked the second-greatest challenge – competition – with almost exactly the same degree of importance.

Starostenkov acknowledges that it is “no wonder” regulatory concerns appear “even more pressing” than before.

“The changes in regulatory policies are forcing them to reshape company strategies and invest in flexible business models,” he explains. To underline his point, Starostenkov cites the scramble from operators and providers to comply with India’s ban on real-money online gambling, the decline of POGOs (Philippine offshore gaming operations), plus numerous advertising and bonus restrictions, as well as tax increases, across Europe.

“These developments reinforce that success in today’s iGaming environment requires not only localization, but also proactive investment in compliance, technology, and stakeholder cooperation,” Starostenkov adds.

“The winners will be those who anticipate regulatory shifts – and this burden falls on the executive suite.”

Similarly, player safety and user experience are under increasing scrutiny. With this in mind, the results of the survey show that the pressure related to responsible gaming and compliance norms is shared across all operator and vendor teams.

Indeed, in her commentary for the report, Kimberley Broad, chief of public affairs at Games Global, highlights the ever-growing risks of mistakes, from fines and reputational damage to losing a licence.

“This is a concern not just for the leaders, but for the operational staff in marketing, financial, legal and even technical departments,” Starostenkov says.

Finding alignment on innovation

Despite the complexities of the space, there is a further degree of alignment when it comes to innovation.

“In our research, we focused on the innovations that companies actually implemented instead of measuring general interest, and the results were similar for all levels of respondents,” Starostenkov adds.

However, on this issue, there were some differences between industry verticals. For instance, affiliates led in terms of practical AI adoption, 5%-6% above all other respondents, while payment providers topped the standings in terms of personalised customer experience (28%) versus 18%-22% for others.

“Perhaps the most interesting finding lies in the contrast between Europe and Asia,” Starostenkov says. “In Europe, the innovations are customer-centric: personalised experience leads the way. Meanwhile in Asia, technology rules, with AI and machine learning being the most common.”

Addressing different perspectives

While the impact of innovation appears to be broadly acknowledged, discrepancies in opinion can lead in some circumstances to a damaging breakdown in understanding between colleagues.

In this context, surveys such as the one conducted by EvenBet Gaming help to address vital issues head on. This is particularly important given that gaps in perception between C-level executives and general industry professionals have grown across some areas year-on-year.

“Reports like this can help identify small inconsistencies which, taken together, could hinder the growth of the company, and build data-based strategies that would be aligned with both industry evolution and their teams’ challenges,” Starostenkov says.

For instance, there are contrasting opinions about what makes a company attractive for a potential employee – a vital factor contributing towards whether an entity will fulfil its growth potential. Executives appear to underestimate the importance of a competitive salary, while some groups, including tech professionals, rank it as a top-three factor.

Additionally, although leaders cite events as one of the main channels to get information about the industry, they do not prioritise such gatherings as marketing channels for their companies – and pay more attention to such tools as SEO (search engine optimisation).

Managing future expectations

However, expectations regarding whether relatively small differences of perspective may become chasms in the future are challenging to predict, and contingent on a cocktail of internal and external contributing influences.

“It depends less on the evolution of the industry in general, and more on the stage of the company’s growth,” Starostenkov says.

“Naturally, in the structured market, following expansion and M&A, more companies will face the problem of the internal informational gap. However, every organisation will do it in its own time.

“In a startup where literally everyone is involved in decision-making and strategic planning, there are zero perception gaps. The more complex the structure, the more indirect the information transfer within the company.”

Understanding the goals

This transition – from fast-growing startup to larger enterprise, where connections are naturally more disparate – is a challenge that resonates with Starostenkov.

“As EvenBet Gaming has doubled in size over the last five years, we faced this problem ourselves,” he admits. “We needed to create new resources for internal communication to make sure everyone – from the C-suite to office managers, accountants, and programmers, each working in their specific domain – understood the main company goals and position in the market.”

Such reflections and experience help to shape future strategies. However, the survey suggests that general iGaming strategies are now focusing more on a defensive rather than an aggressive approach.

“There is a clear shift from expansion into new markets and active user or customer acquisition to strengthening the position in the existing markets and focusing on retention and lifetime value,” Starostenkov says.

In such a landscape, it is more important than ever to ensure executives and frontline staff members in the same iGaming business are on the same page.

And what of the mindset shift needed in facing this landscape head on? “The iGaming industry has entered into the stage where there is no simple way to avoid competition,” he concludes. “The markets get saturated, the regulation tightens, and new opportunities become rare.”

A vertical coming of age

There are few other verticals that can claim the same acceleration as esports. What was once considered a niche has become a critical performance driver for ambitious, forward-thinking operators. Kambi has reported that betting volume on its esoccer product has grown to become a top five sport by both number of bets and turnover – a milestone that underlines just how far the category has come in terms of market maturity. The category’s wider cultural relevance is exploding too, with 50 million tuning in to the League of Legends Worlds in 2024.

Janér believes this shift to the mainstream stems from a blend of audience growth and product maturity. “Esports has been far more than just a niche for some time,” he says. “Its growth is being driven not just by player demand, but by operators and suppliers redefining what an esports betting product can be.”

“This evolution has transformed esports into a sophisticated, fast-expanding vertical that can no longer be considered niche.”

That transformation, he adds, has been led by a relatively small group of data-focused providers. While many sportsbooks still treat esports as filler content and deliver a limited, serviceable offering, companies such as Kambi and Abios are setting new standards and advancing beyond the market through advanced modelling, innovative market types and a goal to offer the same rich feature sets as on traditional sports.

Crucially, esports now provides the “always-on” content sportsbooks need to maintain engagement. Arguably, this offers operators a new means of driving ongoing customer interaction. The short, fast-paced format of esoccer and ebasketball fills calendar gaps, keeping engagement constant while offering familiar mechanics for traditional sports fans.

Building a foundation for scalability

Behind esports’ rise lies a significant technology story. Many operators have struggled to deliver competitive products due to a lack of dedicated data access and in-house expertise. Kambi’s 2021 acquisition of Abios addressed that challenge directly, bringing in what Janér calls “crucial esports DNA” and aligning the group with the steep growth curve of the vertical.

Abios arrived with established credentials, supplying data and infrastructure to betting operators, media companies, and esports teams alike. Within the Kambi network, its technology now powers a comprehensive offering that combines high-performance esports odds feeds with Bet Builder, player props, and diverse market types.

This offering is supported by access to official real-time tournament data from all relevant rights holders, ensuring both reliability of live coverage and higher uptime. The platform also includes data visualisation to deepen customer engagement, showing live scores, historical map performance and pre-match statistics tailored to each title.

The result is a system that supplies both the core betting product and the steady stream of “always-on” content, with esoccer and ebasketball matches typically lasting around 10 minutes. Combined with Kambi’s existing licensing and operational infrastructure, this depth of offering presents a structural advantage. As a result, the provider has now reported a 300% year-on-year increase in monthly events and a rapidly expanding coverage footprint across leading titles such as Counter-Strike 2, League of Legends and Dota 2.

Janér explains that the role of Abios as a dedicated esports division provides a significant operational benefit, ensuring focus. “No external priorities – whether it’s the World Cup or Super Bowl – will ever distract from our focus on evolving the esports product,” he says.

Matching a new generation’s expectations

A key challenge in esports betting has been the need to expand beyond a focus on coverage – with an expansion in product quality and customisation required to meet evolving demands. Today’s esports bettors are digital natives who expect the same interactivity and personalisation they find in mainstream entertainment apps.

Furthermore, the betting behaviour of the Gen-Z audience is notably different; they expect seamless navigation, prefer to engage on mobile devices, and expect unencumbered integration between content viewing and wagering.

User experience is increasingly the defining factor in operator success. Speed, therefore, is of the essence. The ability to offer features that match the complexity of the live gaming experience – such as combination bets and cutting-edge live engagement underpinned by high-speed data – is essential for capturing and retaining this segment.

Kambi’s recently launched Counter-Strike 2 Bet Builder illustrates one way the company is responding to that demand. “The modelling behind our CS2 Bet Builder allows the same combinability seen in soccer or the NFL,” Janér says – unlocking a strength of UX not seen before in esports betting.

“That level of sophistication keeps audiences engaged while setting a new benchmark for product depth.”

Beyond odds, modelling and live data, presentation matters. Abios has built a unified product suite with consistent functionality across all titles, ensuring bettors experience the same visual quality and responsiveness regardless of the data source while giving operators the flexibility to build bespoke user experiences true to their established brands. This coherence is a key factor for digitally native users who value usability and consistency.

On the operational side, compliance and integrity are integral to the product. Bettors must have total trust in the integrity of an event if they are to place a bet on it, and Kambi’s 24/7 sportsbook control team applies the same monitoring systems used in its traditional sports portfolio to identify irregular betting patterns, helping to protect events from manipulation. This process is heavily supported by the extensive data sets Abios provides, enabling automated event filtering and jurisdiction-specific compliance checks that reduce manual workloads and scale regulatory adherence.

Global growth and the LatAm connection

For those limiting their view to Europe, there’s now a far greater market on the stage that will drive esports into its next phase. LatAm is proving to be one of the world’s major drivers of esports’ growth, given its significantly digital-native population and a strong, pre-existing culture of competitive gaming built on free-to-play titles. For operators, esports offers an immediate way to engage a large, as yet untapped audience that may not have traditional betting pedigree.

A recent partnership with Brazilian fantasy operator Rei do Pitaco showcases that reach, with Kambi’s esoccer product, which covers more than 20,000 matches each month, powering Rei do Pitaco’s fantasy esoccer offering. The collaboration reflects Kambi’s modular approach, positioning esports alongside products like Odds Feed+, Bet Builder, and Front End within a portfolio designed to suit different operator strategies. “It underlines the adaptability of our esports offering,” Janér notes, “and highlights how it complements diverse sportsbook models”. Kambi partners are also able to straightforwardly expand their coverage with different sports through one integration, delivered through the provider’s Odds Feed+ API.

Esports’ popularity in LatAm predates regulation, and Brazil remains a focal point. The country ranks third globally for active Counter-Strike players, with mainstream sports icons including professional footballers Neymar and Casemiro boosting visibility by investing in esports organisations and publicly backing their favourite teams.

Kambi’s footprint in the region extends beyond Brazil, powering Colombia’s two market leaders BetPlay and RushBet, and operating in Argentina, Mexico and Peru. While Brazil’s regulatory rollout has faced hurdles, esports have proven a crucial revenue driver, with Kambi partners such as BetMGM, BetWarrior, KTO, Stake and Rei do Pitaco all taking advantage.

Data holds the key to unlocking scale

We’re now in an era of adapting or being left behind, and with esports offering an increasingly significant opportunity for revenue diversification. Kambi was arguably ahead of the curve with its Abios acquisition back in 2021, and the company has continued to invest in the product. This effort means expanding coverage, refining existing features, and leveraging the sheer scale of the Kambi network – which now supports more than 50 partners and processes over $17 billion in annual liquidity.

This scale provides a data advantage that drives continuous improvement across pricing models and product development. Few competitors, Janér suggests, can access that level of behavioural and transactional insight to inform their strategy.

“Over the next five years, esports will evolve into a mature, data-driven sports vertical with betting experiences that rival – and in some cases surpass – those of traditional sports.”

 “Our technology is designed to deliver an ultra-low-latency experience that allows bettors to engage with confidence and precision,” he says.

For suppliers, the direction of travel in esports is clear. It is evolving into a fully-fledged, data-led vertical defined by reliability and innovation. “By combining Abios’ deep data portfolio, proprietary modelling, and esports expertise with Kambi’s scale and infrastructure, we’re helping define how the next generation of fans will experience wagering,” Janér concludes.

“The line between esports and traditional sports betting is disappearing – and we intend to stay ahead of that curve.”

Anton Janér, founder and managing director of Abios

The combination will, on paper, create a €6.4 billion-revenue European champion, according to Banijay’s own pro forma figures. But the significance of the transaction lies less in its scale than in what it reveals about the industry’s direction of travel.  

“This deal represents a significant convergence of the media and gambling industries. It combines entertainment content with sports betting,” says Gabriele Stark-Lütke Schwienhorst, senior associate at CMS Germany.   

The deal, he says, also reflects the trend of vertical integration, whereby content producers leverage their media assets to boost customer engagement and stand out in highly competitive betting markets. 

It signals a shift towards cross-media ecosystems in the European gambling industry and a clear strategy for Tier 1 operators towards continued consolidation in heavily regulated European markets.

Banijay-Tipico’s combination proves entertainment, data and gaming are beginning to interact and integrated digital experiences could become more common.

Last week on Banijay’s Q3 earnings call, CEO François Riahi dismissed analyst suggestions the group could go all-in on gaming and look to wind down its media business. “The Tipico acquisition was a very major event for us and we stick to our strategy here for growth in gaming,” he told analysts.

“However, we also believe that we have very positive opportunities on the content side. So no, we don’t have any plans to sell this division.”

Banijay-Tipico: A strategic marriage 

Banijay’s €3 billion financing package will buy out CVC Capital Partners’ majority stake in Tipico, uniting two complementary businesses: Betclic, a digital specialist with leading positions in France, Portugal and Poland; and Tipico, a dominant omnichannel operator across Germany and Austria. The result is a combined force in six regulated markets, serving 6.5 million customers and operating over 1,200 betting shops. 

For Banijay the rationale is diversification. Long known for producing shows such as “Survivor” and “Big Brother”, the Paris-based group has been edging steadily into gaming. With Tipico, gaming becomes the majority of Banijay’s revenues.

Vaughan Lewis, a veteran gambling strategist, calls it a “transformational deal, creating a leading betting and gaming operator across key European countries, and one of the largest in the world”. The logic, he says, is “further evidence of the ‘local hero’ consolidation strategy, combining market-leading brands while benefiting from group economies of scale”. 

Risks and legal challenges 

The transaction’s stakeholders all emerge with distinct advantages. Betclic gains access to new markets in Germany and Austria, while Tipico inherits a continental platform and capital backing for expansion.

“Big tech synergies should drive better operating margins for the buyer group,” notes Paul Richardson, managing partner at Partis Capital. For CVC, the deal is a well-timed exit after a recent refinancing of Tipico. “This is a great result for them and shows it’s somewhat opportune versus planned.” 

For Banijay’s shareholders, the financial story is equally compelling. The company expects to generate around €100 million in annual synergies in the medium term, while raising profitability from 18.7% to 21.6%.

“Banijay’s gaming division doubles to become the majority of the group,” Lewis adds, suggesting that “there is potential for an IPO or spin-off of the gaming or media unit to unlock further value”. 

The Banijay-Tipico deal will impact the broader gaming landscape for the European sector, remarks Paul Richardson, as “it stops Flutter moving into Germany, as there is very little else to buy of scale in the market”. 

For all the enthusiasm, integration risks remain. Banijay will have to harmonise corporate governance across two highly regulated jurisdictions, reconcile technology stacks and manage cultural integration between a French tech-driven operator and a German retail-anchored one. As Stark-Lütke Schwienhorst points out, “aligning licensing and compliance could be complicated”, since Tipico operates under a German licence.  

And cross-border fiscal implications may also give rise to further legal issues for the Banijay-Tipico transaction, warns Stark-Lütke Schwienhorst. “Chief among these are regulatory and competition law issues, given that the deal is likely to be scrutinised under the EU Merger Regulation and potentially by national competition authorities.” 

Banijay will need to navigate Germany’s Joint Gambling Authority, one of Europe’s strictest regulators, as well as obtain approval from EU competition authorities. Completion, expected in mid-2026, hinges on those approvals — and on Banijay’s ability to integrate entities with very different operating cultures, experts point out. 

Consolidation will continue to drive the sector 

The Banijay-Tipico union is the latest chapter in an accelerating wave of European gambling consolidation – following on from Allwyn´s takeover of OPAP only a few weeks ago. Operators are racing to gain scale as taxes rise, margins narrow and regulation tightens across the continent. “Consolidation will continue to drive the sector, driven by margin pressure from regulation and operating costs,” says Richardson.  

The logic is simple: compliance costs and marketing restrictions are squeezing smaller firms, while established players look to spread fixed costs across wider revenue bases. As in other industries, bigger increasingly means safer. “Scale and resilience to regulatory shocks is key to long-term success,” Richardson observes. 

Lewis agrees, describing the Banijay move as a new template for consolidation across regulated European markets.

The shift, he argues, is away from chasing high-risk grey markets and towards mastering complex regulated ones. “This demonstrates that significant value creation is being driven by regulated markets,” he says. “Regulatory challenges create barriers to entry, which tends to increase the value and sustainability of the leading operators.” 

The French paradox 

That dynamic explains an irony not lost on observers: with Banijay’s gaming division and FDJ United’s acquisition of Kindred Group earlier this year, Europe’s two largest gaming empires are now based in France — a country with punishing tax rates and no legal online casino sector.  

“France’s market is indeed highly regulated and heavily taxed, yet certain operators demonstrate a sophisticated regulatory resilience,” says Stark-Lütke Schwienhorst. 

Their compliance expertise, financial strength and institutional relationships provide a competitive edge as other jurisdictions tighten controls. “Ironically, being forged in a tough market like France or Germany could become a strength when expanding across Europe,” he adds.

Lewis goes further. “France as a hub for Tier 1 operators despite regulatory challenges shows that domestic-based companies are proving operational excellence in challenging environments,” he notes. Any expansion of regulation of online casino in France could significantly grow the total potential market size, he points out.  

For investors, this resilience carries appeal. France’s high tax environment might deter weaker players, but for those that master it, it creates defensible, sustainable competitive advantage. The same logic underpins the position of the state-linked FDJ United, which completed its purchase of Kindred in 2024, adding Unibet’s pan-European presence to its lottery backbone. 

Continental realignment 

The broader picture is of a sector reorganising across the whole continent. The UK – once Europe’s undisputed iGaming powerhouse – is increasingly constrained by a tightening regulatory regime, rising tax burdens and curbs on cross-vertical marketing.

The Netherlands and Sweden are following suit. And last month Denmark announced new tightened rules regarding advertising. In contrast, continental European groups are quietly consolidating strength in markets with stable, albeit strict, regulatory frameworks. The sector is entering a phase of regulatory convergence and market cleansing, suggests Stark-Lütke Schwienhorst.  

“Smaller operators will struggle with rising taxes and compliance costs, leading to further consolidation. Larger, well-capitalised groups with diversified portfolios are best positioned to adapt. There is a good chance that the future European landscape will favour integrated entertainment ecosystems, not pure betting operators.” 

Banijay’s move follows a pattern seen before. Richardson compares it to Flutter’s acquisitions of Sisal and Snai. “A large multinational buying market leader in a local market. In both cases, the buyer had bought into an omnichannel operation and is now exposed to retail,” he says.

Lewis draws parallels with the Sky Betting & Gaming sale to The Stars Group, where CVC also exited.  “That was also CVC selling a market-leading position in a key country to a more diversified leader,” he notes. “FDJ and Kindred had some similarities too. So did the Allwyn/OPAP merger and the Intralot/Bally’s deal.”

Such comparisons underscore how Europe’s betting landscape is becoming a handful of regionally diversified conglomerates — Flutter, Entain, FDJ United, Banijay Gaming and Allwyn are among those.

The road ahead 

Analysts see the Banijay-Tipico deal as an early sign that additional similar deals are coming. 

“This is likely to be a trigger for further M&A across regulated markets,” predicts Lewis. “The industry remains fragmented and relatively immature. Scale is critical, as demonstrated by the €100 million synergies here.” 

Richardson foresees “other private-equity or former PE single-market operators like Lottomatica needing to buy international diversification at scale and get more ‘baskets for their eggs’”.  

Stark-Lütke Schwienhorst, meanwhile, expects a wave of smaller acquisitions: “We can expect continued consolidation, especially targeting small- to mid-sized operators in Europe.”

Acquisitions in RegTech and FinTech will likely also rise, driven by the need to automate compliance and improve efficiency. The broader trend also points toward media-gaming convergence where entertainment companies seek audience monetisation through gaming and betting firms seek audience engagement through content, Stark-Lütke Schwienhorst points out. 

The consensus among experts is that the next phase of European gaming growth will not come from regulatory arbitrage or from unregulated grey zones, but from disciplined execution in challenging jurisdictions.  

Therefore, future growth in Europe’s iGaming industry won’t come from taking advantage of loopholes or operating in loosely regulated markets, but instead from doing business well in countries with strict rules. 

“Operators that thrive under strict regimes such as Germany or France develop advanced compliance frameworks, responsible gambling systems and scalable tech infrastructures,” says Stark-Lütke Schwienhorst. “These conditions foster innovation and credibility, enabling them to outperform less mature competitors. In short, regulatory maturity breeds operational excellence.” 

Lewis concurs: “Betclic and Tipico have shown that operators with strong brands, effective operations and a clear strategy can build a highly profitable and sustainable business in mature, regulated markets.” 

The outcome, if Banijay’s bet pays off, could be a new European order in gaming – one where stability and compliance, not aggression and opportunism, define leadership. The entertainment conglomerate from Paris will need to prove that it can integrate Tipico smoothly. But if it succeeds, the combination of storytelling, data and betting could reshape not only Europe’s gaming industry but its entire digital entertainment economy. 

In the digital era, the race to personalisation in betting and gaming is accelerating rapidly. 

While more than three-quarters of consumers express frustration when companies do not provide customised interactions, in a space as inherently personal as iGaming, a tailored approach by operators is becoming indispensable. Indeed, four out of every five gamblers rate personalised offers and bets as “valuable” or “very valuable”. 

While operators increasingly recognise the importance of personalisation in their player-facing interactions, though, customisation comes in different shapes and sizes. 

Some proactive operators are now exploring AI-driven recommendation engines, adaptive interfaces and regional content studios to meet growing player expectations for tailored experiences. 

However, despite the countless data touchpoints available through digital gaming, many operators have only scratched the surface with relatively generic offerings that rely on basic, top-line data – providing minimal differentiation. 

Making the case for hyper-customisation 

According to Hayk Tovmasyan, head of live casino at CreedRoomz, a leading live casino provider, such surface-level localisation will not be sufficient in the battleground for attention. 

Instead, deeply immersive, culturally attuned, and interactive player-driven experiences will only grow in importance. 

“In the fiercely competitive landscape of live casinos, mere presence is no longer enough,” Tovmasyan says. 

“To truly capture and retain players, providers must forge deep, meaningful connections. At CreedRoomz, we believe the key lies in hyper-customisation – a strategy that goes far beyond simple translation to deliver experiences that resonate profoundly with players on a cultural, linguistic, and even emotional level.”  

With this in mind, Tovmasyan’s business is positioning itself not only as a live casino provider, but also as a creator of tailored entertainment ecosystems that put players firmly in control. 

For CreedRoomz, advanced customisation has become more than just a feature and is now a core pillar of the provider’s competitive strategy, and a fundamental driver of engagement and retention.  

To this end, CreedRoomz combines native-speaking dealers with bespoke, branded environments to create a personal and authentic experience. On top of this, thematic game shows and tailored engagement tools – including those with unique multiplier features and intuitive, localised interfaces – optimise engagement. 

Cultural connections 

Connecting on a cultural level is described by Tovmasyan as the provider’s “most impactful hyper-customisation strategy”.  

He adds: “Our commitment to not only language-oriented but also native-speaking live dealers immediately bridges cultural and linguistic gaps.  

“Players feel more comfortable, understood, and connected when interacting with a dealer in their own language. This fosters trust, enhances the social aspect of the game, and makes the experience feel truly personal, mimicking the best of a local land-based casino.” 

The aim is to give operators the power to extend their brand’s identity directly into the live casino. In order to achieve this, fully customisable halls and tables can be presented so operators can replicate the ambiance of a casino, as well as their colour schemes and brand. 

“This bespoke environment creates a strong sense of belonging and loyalty for players,” Tovmasyan says. 

Empowering operators and players 

While empowering operators is one part of the equation, there is also a focus on empowering the players themselves by giving them not only more control, but also a more active role in the live casino experience.  

The Side Bet Gamble mechanic in CreedRoomz’s popular Cashout Blackjack game, for example, puts players in the driving seat while amplifying emotional investment at a highly engaging moment. Unlike traditionally passive bonus rounds, players are presented with two active choices – to Gamble or Skip – during a rapid five-second countdown.  

The feature update has followed a significant user interface (UI) redesign and key gameplay enhancements, with Tovmasyan underlining the importance of “dynamic, data-driven design” for helping to shape the user experience. 

“This bespoke environment creates a strong sense of belonging and loyalty for players”

Additionally, Aurum Mode is another innovative feature from CreedRoomz that provides players with an optional, customisable experience within roulette games that can lead to enhanced multipliers. When a player activates Aurum Mode, they enter a distinct, golden-themed interface that overlays the standard roulette table. This new UI is designed to be more visually striking and focused on the feature’s core mechanics. 

“This mode offers a dual advantage: it provides a fresh, visually appealing UI for players seeking a different experience, while also offering them the chance for much larger, more exciting payouts on winning bets,” Tovmasyan says. 

Putting players in control 

The “hybrid concept” that underpins the ‘Mr. First Live’ game show is another prime example of giving players the autonomy to shape their own gaming experiences. When players qualify for a brand-new bonus round, the game’s fast-paced bouncing ball-inspired format transforms into a sprint race to collect rewards and multipliers. 

“This unique two-part experience encourages longer session times and builds strong player loyalty,” Tovmasyan explains, highlighting the game’s multiplier-related features and multiple bonus ticket levels that are “designed to drive exceptional player value”. 

The value element of a tailored engagement strategy is certain to resonate with players. According to extensive research into attitudes towards personalisation, the opportunity to enhance value, enjoyment and convenience are the three most important reasons why consumers like customised interactions. 

Overcoming the hurdles 

Inevitably, creating hyper-personalised environments at scale presents both technical and creative hurdles.  

“On the technical side, the main challenges are building infrastructure that can manage and process massive amounts of real-time data, while simultaneously rendering and delivering unique content to millions of users without lag,” Tovmasyan says. 

“Creatively, the biggest challenge is maintaining quality and a coherent narrative. Our main goal is to avoid content that feels repetitive or impersonal, ensuring that every player’s unique experience still feels handcrafted and engaging.” 

This focus on the player experience is essential in terms of personalisation. Interestingly, research shows that two-thirds of consumers in general have endured at least one personalised experience with a brand that was inaccurate or invasive. 

Many such incidents have led to individuals unsubscribing or disengaging with a platform or service. 

The challenge therefore is to balance impactful – but not intrusive – personalisation with scalability in iGaming, especially as live casino expands into new markets.  

Modular approach 

Turning this vision into reality in the iGaming sector requires a “modular and flexible” approach, allowing for rapid localisation with native-speaking dealers and culturally relevant content, according to Tovmasyan. 

“This makes it possible to enter new markets like LatAm and Asia without rebuilding the entire system,” he adds. “This approach provides a personalised feel for players while allowing the business to expand efficiently.” 

Such a measured approach also gives iGaming operators the opportunity to adapt to new trends and influences, especially as the gambling and media sectors continue to converge under the broader ‘entertainment’ umbrella.  

“The future of live casino engagement will be defined by a new wave of technologies that create more immersive, personalised, and interactive experiences for players,” Tovmasyan explains.  

“The line between live casino and entertainment will continue to blur with advanced gamification and interactive game shows, offering sophisticated bonus rounds and social features that create a sense of community and competition.” 

With modular systems facilitating quicker market entries, the drive to personalise player experiences is leading to increasingly tailored entertainment ecosystems, which in turn boost customer loyalty and strengthen operators’ bottom-line performance. 

Hayk Tovmasyan, head of live casino at CreedRoomz

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.

On Tuesday, voters across the US headed to the polls for the 2025 elections with several issues of interest to the gaming industry on the ballot, namely key races in current or prospective gaming jurisdictions.

The New York City mayoral election was a major storyline for the casino industry, which has three finalists vying for three downstate licences to be issued in the state by year’s end. Nearby, gaming-forward New Jersey elected Democrat Mikie Sherrill to be the state’s next governor, over Republican candidate Jack Ciattarelli.

In Texas, a state Senate race monitored by Las Vegas Sands is headed to a runoff without the Sands-backed candidate. And in Pennsylvania, the state’s Supreme Court retained its 5-2 Democratic majority as the casino industry continues its legal battle against so-called skill games.

Mamdani the biggest headline of 2025 elections

Democratic socialist Zohran Mamdani won the election handily over former New York governor Andrew Cuomo and longtime political activist Curtis Sliwa. Mamdani’s election as NYC mayor is notable for multiple reasons.

At 34, he is the city’s youngest mayor in over 100 years, and he is the first Muslim to hold the office. His far-left policies have rankled the city’s business and financial communities, as he proposes funding the bulk of his initiatives through higher taxation of the wealthiest New Yorkers and businesses.

All of the downstate casino finalists – Bally’s Bronx, Resorts World NYC and Metropolitan Park – are proposing multibillion-dollar developments that could see impacts from Mamdani’s politics.

Bally’s bid was significantly buoyed by outgoing mayor Eric Adams, who withdrew from the race in September. Metropolitan Park, the most ambitious project ($8 billion), is backed by Steve Cohen, who is a major donor to the Democratic Party to which Mamdani belongs. But Cohen’s ties have mainly been to Governor Kathy Hochul, who originally opposed Mamdani but ultimately endorsed him.

As a Muslim, Mamdani is opposed to gambling, which is forbidden under the faith. But his stance on the downstate process specifically is neutral, with the caveat that it is largely out of his control.

“I’ve been open about my personal skepticism, and yet I also know this is the law,” Mamdani told The New York Times in August. “The siting and the choices of which casinos will open, that pertains to the state.”

Prior to running for mayor, Mamdani served in the state Assembly since 2020. His district was in Queens, which is where the Metropolitan Park and Resorts World downstate bids are located. Resorts World is going above and beyond to secure a licence, offering the highest licence fee ($600 million) and tax rates (56% for slots, 30% for tables). Cohen and Metropolitan Park, by comparison, are offering the minimum licence fee ($500 million) and tax rates (25% for slots, 10% for tables).

Cuomo oversaw major gaming growth as New York governor

The gaming industry might have preferred a Cuomo victory, given previous expansions under his tenure.

Cuomo was governor in 2013 when voters passed Proposal 1, which allowed for a total of seven commercial casino licences throughout the state. Four licences were awarded upstate in 2014-15, leaving the three remaining in the current downstate process.

Cuomo was also governor when New York legalised online sports betting in early 2021, before resigning in August of that year in part because of a sexual harassment scandal. Cuomo drove the online NY sports betting process, making clear he would not sign anything but a robust tax rate. Bidders ultimately proposed the 51% tax rate that is the nation’s highest, and led to New York becoming the biggest OSB market in the US by handle and tax revenue.

New NJ governor takes reins of major US market

New York’s casino expansion is likely to have ripple effects for New Jersey, which has positioned itself as one of the major gaming states in the US. Outgoing governor Phil Murphy oversaw numerous gaming-related developments in the Garden State since his election in 2017.

There are three central gaming issues that the incoming Sherrill might face in the next four years.

The first and perhaps most controversial is indoor smoking in casinos. New Jersey has become a key battleground for advocacy groups like Casino Employees Against Smoking Effects and Americans for Non-Smokers’ Rights (ANR). Murphy said he would sign a smoking ban bill if it reached his desk, but none did, as the casino lobby has successfully dug in its heels to this point.

At an event in 2024, Sherrill said that proponents of indoor casino smoking were choosing a “weird fight to have”. That sentiment drew praise from ANR, but Sherrill did not publicly take a stand on the topic during the gubernatorial campaign.

The other two Garden State issues pertain to casino expansion and tax rates. New Jersey officials have posited the idea of expanding casinos in the state beyond Atlantic City, but it has yet to gain traction. That could change meaningfully, however, during Sherrill’s tenure once the New York expansion begins.

With regard to tax rates, Sherrill is taking office on the heels of an increase championed by Murphy. New Jersey’s sports betting and iGaming tax rates were increased this year to 19.75% from 13% and 15%, respectively. Murphy originally proposed 25% rates.

It seems unlikely Sherrill would push quickly for further hikes, but other states like Illinois and Ohio have seen multiple increases approved or proposed in short succession.

Sands’ Texas hopes fall flat, again, in 2025 election results

Texas is opposite to New York and New Jersey in many ways, but it too has been grappling with casino expansion for years. Las Vegas Sands has keyed in on the Lone Star State as its next untapped gaming destination. Sands’ controlling shareholder, Miriam Adelson, has been a huge presence in Texas politics for several cycles. She also purchased the NBA’s Dallas Mavericks franchise in 2023 and installed Sands COO Patrick Dumont as governor.

Earlier this year, the company was charging hard for a prospective casino-resort development in Irving, a suburb of Dallas. The project narrowly secured local zoning approval, but Sands pulled the casino component after fierce pushback from residents and tribal casino interests in neighbouring states. Additionally, previous progress in the state legislature was sharply cut down by anti-gaming officials this year. Texas lawmakers will not convene again until 2027.

Adelson still spent aggressively in the 2025 elections, as she put in $1.2 million backing John Huffman in the race for Senate District 9. A related interest group contributed an additional $2 million, per NBC Dallas. Huffman’s opponent, Leigh Wambsganss, was funded by conservative interests, including Lieutenant Governor Dan Patrick, who controls the Senate and has blocked previous gambling-related legislation.

In the end, it was a third candidate, Democrat Taylor Rehmet, who was the top vote-getter (48%). Wambsganss finished second (36%) and Huffman was far below both in third (16%). Because Rehmet fell short of a majority, he and Wambsganss will now have a runoff election at a later date. Huffman was snubbed altogether, another setback for Sands’ Texas efforts.

Pennsylvania court that ruled for skill games upheld

Lastly, Pennsylvania’s gaming stakeholders were keyed into elections for three state Supreme Court justice slots. All three Democratic incumbents – Justices Christine Donohue, Kevin Dougherty and David Wecht – retained their posts, meaning the court will maintain the party’s majority. Wecht and Dougherty received new 10-year terms, whereas Donohue will serve until she reaches mandatory retirement age in 2027.

This is perhaps unnerving for state casinos, which have lobbied for years against the proliferation of “skill games”, or unregulated slot-like games, in small businesses. But state courts, including the Supreme Court, have repeatedly ruled in favour of skill games and their manufacturers.

In March, the Supreme Court ruled that state gaming regulators erred in denying gaming licences to businesses that offered skill games. Regulators argued that such behaviour violated a “good character” clause in the licensing application. The court disagreed and largely avoided the question of skill games legality altogether.

Per the Altoona Mirror, Wecht ruled that businesses had a right to believe skill games were legal because of “court rulings” and “the representations of the device manufacturers and their lawyers”.

“Given this landscape, it is reasonable for these individuals to believe that they are doing nothing wrong,” Wecht continued. “It is, thus, excessive and unfair for the board to declare that every individual involved in this industry lacks ‘good character, honesty and integrity’ merely due to their involvement in the industry.”

What was once a familiar fixture of local life and working-class leisure could soon become a casualty of what the gambling industry has called a shortsighted fiscal ambition. 

Even before the threat of new levies, the retail segment was faltering as the nation’s gambling habits migrated largely online. Quarterly updates from Entain – with over 2,000 stores across its Ladbrokes and Coral brands – have repeatedly described retail as a “stable” but low-growth segment, although the group insists it “treasures” its shops as the backbone of its brand.

Major operators have issued stark warnings against a hike, insisting the impact could wipe out retail betting in the country, with thousands of jobs and hundreds of shops at stake. Aside from Flutter’s recent closures, Evoke, which operates 1,300 William Hill outlets, has also threatened to close as many as 200 shops – 15% of its estate – if taxes rise. As have Entain and Betfred.

“If [the tax rate] went up to anywhere like 40% or even 35% there is no profit in the business,” Betfred founder Fred Done said in an interview with the BBC on 19 October. “We would have to close it down … probably 7,500 job losses.”

Speaking to iGB, a spokesperson for Flutter UK & Ireland reiterates the impact a rise could have on its retail business, noting it has already had to close shops even before any tax increase. “We unfortunately had to close 57 Paddy Power shops last month – and that’s before any increase in gambling duty. Any tax increase on business isn’t a free hit, it comes with consequences,” they warn.

Tax hike will ‘devastate’ UK high street bookmaker jobs

A rise in gambling duty will have a significant effect on jobs and sports sponsorships, as well as offering a huge boost to an illegal black market that has almost tripled in size in the UK in the past three years. 

A report commissioned by the UK’s Betting and Gaming Council (BGC) in October claimed such a “tax raid” could wipe out £3.1 billion from the UK’s economic output and threaten more than 40,000 jobs.

The analysis by EY found that once lost employment, reduced corporation tax and lower National Insurance contributions are considered, the Treasury’s net gain from the proposed UK gambling tax hikes could fall below £500 million.

“Further tax hikes would devastate jobs, reduce Treasury revenues and drive billions into the hands of the black market,” the BGC tells iGB.

The impact of a possible UK gambling tax rise on the already suffering retail sector has been clearly outlined by stakeholders, but some parliamentarians appear skeptical of the sector’s warnings.

Treasury committee doubts impact of remote tax hike on retail

During a Treasury committee session held in Parliament on 28 October, committee members probed BGC CEO Grainne Hurst and the trade body’s tax policy advisor, Stephen Hodgson, on the issue, seemingly expressing doubts over the sector’s threats that retail would take a hit even if remote taxes were to increase.

Hurst confirmed that UK gambling companies operated a “circular economy” and a single profit-and-loss model, meaning any impact to one side of the business would inherently be felt across the group.

“They will be reinvesting money they make in one part of their business into another. And so if we see any additional further tax increases on any part of the sector, it is likely to have an effect on the retail side of the business,” Hurst told the panel.

“These are businesses that operate in an integrated manner. So if you were to increase remote taxes and leave land-based taxes untouched, you would still see a consequence on the overall ecosystem,” Hodgson added.

“If you look at some of the larger businesses the BGC represents, they are quite integrated. That’s how they manage to achieve economies of scale and become the large, successful businesses they are. And they will look at costs across the board.”

Could the retail sector be shielded from the impact?

Elsewhere, the panel discussed the potential of specifically shielding the retail sector from any tax increase by establishing a separate rate for online and retail betting activities.

Currently the sector pays a flat 15% General Betting Duty across profits made from bets made both online and in-person. But during the meeting Paddy Power co-founder Stewart Kenny proposed a separate lower rate for retail activities to help protect high street bookies from extinction.

“I believe there should be provisions in any taxation [model] that betting shops will be lower, because I think they can be a real social [hub] for people who don’t drink, to have fun. Betting shops do have a future, but obviously like [everything] on the high street they are going to suffer,” he said.

A social institution under threat 

Operators have equally raised concerns over the human impact of shop closures. In an interview with The Times, Entain CEO Stella David said closures would be a blow to community identity. “We don’t want to close shops,” she said. “These are part of Britain’s cultural fabric – not just places to bet, but places where people come together.” 

The sense of loss is echoed across the industry, says Bethan Lloyd, senior associate at Wiggin LLP who previously worked in William Hill’s legal team. She points to the special place the high street bookmakers hold in the lives of punters.  

“Many of these bookies serve as something of a social base for their regular customers; it is sad that this will be taken away,” she notes.

“Many of our shops play a central role in communities and we are committed to our retail estate, but clearly any duty rise in the upcoming budget could impact our plans,” the Flutter spokesperson adds.

Dan Waugh, a partner at Regulus Partners, believes the disappearance of the betting shop will have real social consequences. “Millions of people choose to bet and watch racing in shops despite the fact they can do both at home. A meaningful number of consumers will find their lives negatively impacted by the withdrawal of an activity that brings them pleasure,” he says. 

Impact on mental health 

Mark Pearson, Betfred’s head of corporate affairs and communications, stresses there is a lot more at stake than just a line on a balance sheet. “Retail is the very heartbeat of our business,” he says. “Fred [Done] started with just one shop in 1967. Betting shops are a massive part of communities and high streets.”

He also warns the knock-on effects would be profound. An impacted retail sector would mean reduced investment in horse racing and sport, and not least “a free pass for the black market that offers no protection for vulnerable players.” 

The BGC estimates that 1.5 million Britons stake up to £4.3bn annually with unlicensed operators in a growing black market.

Dan Waugh at Regulus Partners also adds a sobering warning that funding for treatment of gambling disorders, as well as harm prevention initiatives and research, is at risk of falling too. Under the new statutory levy, around 90% of funding comes from betting shops, online betting and online gaming.  

“If consumer spending in these channels falls as a result of tax increases, then we may see essential mental health treatment services collapse.”

The human cost 

The threat to the UK land-based gambling sector is not just about betting shops. The proposed UK gambling tax structures from think tanks such as the IPPR and Social Market Foundation (SMF) would hit all land-based gambling venues – from casinos and bingo clubs to seaside arcades.

Dan Waugh believes the SMF and IPPR reports which propose more than doubling current UK gambling tax rates are of “extremely poor quality”.

“Neither think tank appears to have considered the impact of shutting down large swathes of the land-based industry,” he laments. “Clearly, omnichannel incentives will be far less relevant if there are far fewer shops,” he says of crucial player retention strategies that operators have built over years.

But Lloyd acknowledges that successfully converting customers between online and retail has been a challenge for all the major operators. She says many retail clients don’t regularly bet online and stricter marketing rules have added a layer of complexity to omnichannel approaches.

Behind UK high street bookmakers lie thousands of British employees, many of whom have spent decades in the same communities and companies. Lloyd notes the personal cost is that these staffers will unlikely be redeployed as the industry is tightening its belt across the board.  

UK high street bookmaker employees won’t be redeployed

This will also negatively impact the consumer experience, Lloyd says: “This route will be minimised or removed, and with it, the grassroots knowledge of the punter and the product.”  

Waugh agrees that political advocates of the tax hike underestimate this disruption. “It is easy for people in Westminster think tanks to say that betting shop employees can easily find work elsewhere,” he says. “This ignores the fact that unemployment is rising, that in some parts of the country jobs simply aren’t there.”  

The industry’s geography aggravates the issue. “Online gambling – as with ecommerce in general – tends to concentrate employment in a small number of locations,” Waugh notes. “There might be some opportunities for shop workers in places like Stoke-on-Trent and Leeds, but these are exceptions.” 

The end of an era? 

Retail betting shop closures could have a ripple effect across British racing and related industries. A quarter of racing turnover occurs in betting shops, meaning their disappearance would erode media rights revenues and levy receipts.

“Racing will be the most impacted,” says Lloyd. “Given the demographic of the shops’ customers and their betting patterns.” 

As the chancellor’s autumn budget approaches, the industry’s lobbying has reached fever pitch. Entain’s David has urged policymakers to look beyond short-term revenue. “When you start damaging the regulated market, you don’t get less gambling, you just get less safe gambling,” she has told the media.

The image of the British bookmaker has endured for decades. But it now stands at a crossroads. Taxation that aims to boost public finances could instead hollow out the very communities it is meant to serve and, if the environment becomes unsustainable for the operators, policymakers may soon witness the disappearance of one of Britain’s last surviving high street institutions.  

Apprehension started to mount in February over the possibility of Ohio Republican Brian Quintenz becoming the next chair of the CFTC. Quintenz, a former CFTC commissioner nominated that month by US President Donald Trump, had direct ties to prediction markets as a sitting board member for Kalshi. Additionally, Quintenz publicly advocated for another exchange, ErisX, in its failed attempt to offer sports contracts in 2021.

Now, Quintenz’s nomination has been pulled after multiple hiccups, and Trump this week announced a new nominee: Michael Selig. Selig’s expertise is cryptocurrency, from both a regulatory and legal perspective.

While the gaming industry has been focused primarily on prediction markets, the Quintenz-Selig shuffle could signify that crypto is the real prize at stake. Yet with Quintenz also heavily involved in crypto himself, it could also just be more of the same.

Who is Michael Selig, the new CFTC chair nominee?

Selig currently serves as chief counsel of the Securities and Exchange Commission’s Crypto Task Force and as a senior advisor to SEC Chair Paul Atkins. Back in 2014-15, Selig also worked in the office of former CFTC commissioner J Christopher Giancarlo, per LinkedIn.

Giancarlo was a commissioner at the time Selig worked for him, but he went on to become CFTC chair in 2017 during Trump’s first term. He has since adopted the nickname “Crypto Dad” for his support of digital assets and published a book under that title in 2021.

David Sacks, Trump’s so-called “AI and Crypto Czar”, said in an X post that Selig has “been instrumental in driving forward the President’s crypto agenda” at the SEC, adding that he and Selig will “deliver on President Trump’s promise to make the US the crypto capital of the planet”.

In response, Selig posted that he would “work tirelessly to facilitate Well-Functioning Commodity Markets, promote Freedom, Competition and Innovation and help the President make the United States the Crypto Capital of the World”.

Quintenz nomination lost early momentum

Quintenz’s candidacy, if charted on a prediction market, might look like something of a bad beat. It started strong, but the longer his nomination dragged on without confirmation, the more things started to unravel.

Quintenz faced questioning during a Senate hearing in June and his confirmation vote was twice delayed afterward, both times abruptly and at the last minute. In July, the release of internal CFTC emails through a FOIA request from The Closing Line newsletter suggested undue access for the yet-unconfirmed Quintenz.

Then, billionaire crypto twins Tyler and Cameron Winklevoss got involved, leading Quintenz to distance himself in September by posting threatening messages he had received from Tyler. The messages claimed the CFTC “abused” its power in previous legal action against Gemini, the twins’ crypto trading platform.

“It’s my understanding that after this exchange they contacted the president and asked that my confirmation be paused for reasons other than what is reflected in these texts,” Quintenz posted on X.

The White House pulled his nomination on 30 September before nominating Selig weeks later.

CFTC chair candidates share multiple similarities

Between the two nominees, Selig has fewer direct connections to prediction markets than Quintenz. But there are some connections, and Quintenz’s crypto experience ultimately could make the two more similar than not.

According to InGame, Selig’s name appears on a July 2024 letter submitted by venture capital firm Paradigm Operations to the CFTC in support of Kalshi’s legitimacy as a prediction market.

Kalshi had not begun offering sports contracts at the time, but Paradigm argued that “the CFTC’s characterisation of political contests, awards contests and sporting events as forms of ‘gaming’ is arbitrary and capricious”. Selig was among three attorneys from the firm Willkie Farr & Gallagher LLP representing Paradigm. The VC firm would go on to invest in Kalshi this year.

Quintenz, for his part, is also heavily involved in crypto. He became an advisor to Crypto.com months after leaving the CFTC in late 2021, and he spent the past four years at Andressen Horowitz (or a16z), a crypto-focused VC firm. Since late 2022, Quintenz has served as its head of policy for crypto. His tenure as a CFTC commissioner also aligned with Giancarlo’s tenure as chair.

Based on these points, it remains to be seen whether gaming stakeholders would view Selig as a more favourable candidate by comparison.

Regulatory questions at play for CFTC, SEC

Since Trump took office for his second term in January, crypto advancement has been a key goal for the administration. The GENIUS Act, the most significant regulatory bill for digital assets introduced in the US to date, was signed into law in July. Another similar bill, the CLARITY Act, passed the House in July but has been sitting in the Senate since September.

Prediction markets have not seen the same level of legislative or regulatory clarity. Acting CFTC Chair Caroline Pham hosted a meeting with tribal gaming stakeholders earlier this year but did little to assuage their concerns. In an advisory issued in late September, the CFTC gave no concrete guidance and essentially said it has yet to determine the validity of sports contracts.

In the meantime, the influx of new crypto rules could put the SEC and CFTC in tough spots with regard to oversight and delineation. The agencies have historically been independent of one another. As their names suggest, the SEC primarily oversees securities like stocks and bonds, while the CFTC oversees commodities and derivatives.

Various forms of digital assets like crypto might not fall neatly within one box or another. Notably, Selig has had intimate dealings with both agencies in his career thus far.

The two agencies in September held a unique roundtable discussing possible regulatory synergies. Among the panellists were Kalshi’s Tarek Mansour and Polymarket’s Shayne Coplan, although neither participated much. Crypto interests were also well-represented by officials from Crypto.com, Robinhood and Kraken.

Before Selig’s nomination, a sense emerged among observers that the SEC’s Atkins was gaining momentum as a potential CFTC chair candidate as well. Such a consolidation would have been unprecedented, but the subsequent roundtable was perhaps an indication that their relationship is aligning closer.

Crypto interests dwarf prediction markets

The true breadth of the CFTC’s remit was perhaps best shown in Quintenz’s Senate hearing. For almost two hours, lawmakers presented questions about agriculture, ranching, commodities, crypto and, to a much lesser degree, event contracts on prediction markets.

That divide in priorities seems to be more apparent as the saga plays out. It was the crypto-focused Winklevosses, not the collective furor of the regulated gaming industry, that proved to be Quintenz’s downfall, and perhaps for good reason: the crypto market this summer eclipsed a total market value of $4 trillion.

By comparison, nationwide gross revenue this year from casinos, sports betting and iGaming combined was $51.1 billion through August, per the American Gaming Association. Sports betting, the vertical most closely associated with prediction markets, accounted for $10 billion of that.

Prediction markets are also small in scope when compared to crypto’s trillions. Leading exchanges Kalshi and Polymarket are garnering multibillion-dollar valuations but there are few other significant players as of yet. Additionally, gaming companies like FanDuel, DraftKings and Robinhood have already launched or are planning to launch prediction markets, which could saturate the market.

Prediction markets make money off trading commissions and other transaction fees. As such, the exchanges often see billions in weekly trading volume (not directly equivalent to sportsbook handle) but their revenue is only a small fraction of that.

Notably, though, prediction markets do not have to pay state gaming or federal excise taxes, nor do they have responsible gaming obligations to answer for.

Trump administration connected to both sides

The connections to both crypto and prediction markets are everywhere in Trump’s administration. Donald Trump Jr is an advisor to both Kalshi and Polymarket, having endorsed them after they correctly predicted his father’s election victory last November. 1789 Capital, a firm backed by Trump Jr, invested in Polymarket this year.

Things went a step further this month with the announcement that Trump’s media arm will offer prediction markets through a partnership with Crypto.com. The contracts will be available to users directly through Trump’s Truth Social platform.

Trump is constructing a $300 million ballroom at the White House that was privately funded by 37 donors. The donor list featured some traditional gaming stakeholders but is littered with crypto connections, including:

• The Winklevoss twins
• Coinbase, a crypto exchange platform
• Ripple, a blockchain payments network
• Tether America, a blockchain payments network
• Charles Cascarilla, co-founder of blockchain payments network Paxos

If you can’t beat ’em, join ’em?

An ironic part of the prediction market-crypto discussion is that the regulated industry would likely pursue both verticals if their licences would not be at risk by doing so. The push by some companies to enter the prediction market space is evidence of that, and those that have not have largely blamed regulatory uncertainty.

Caesars Entertainment CEO Tom Reeg said this week his company won’t put “any licences” at risk to pursue prediction market deals. He also asserted Caesars “is preparing and would be prepared to go down that path” if clarity comes.

Mike Dreitzer, chairman of the Nevada Gaming Control Board, indicated earlier this month he would be open to bringing prediction market technology under state law if able.

There are similar feelings for crypto, which is a popular payment method for younger players. At the ICE Barcelona conference in January, a panel of three international CEOs – Per Widerstrom (Evoke), Gavin Isaacs (Entain) and Fabio Schiavolin (Snaitech) – all lamented that unregulated platforms can utilise crypto while they cannot.

“All three of us would dream to be in the unregulated market just for a day,” Schiavolin joked at the time.

FanDuel founder now leaning into crypto

Those who are venturing into crypto despite the regulatory gruff are seeing the benefits. Nigel Eccles, co-founder and former CEO of FanDuel, has started a new crypto-based iGaming venture called BetHog.

The platform is not licensed or available in the US, but Eccles has embraced crypto as the new frontier, much like he did with daily fantasy sports in the early-to-mid 2010s. DFS is where FanDuel and DraftKings got their start, which at the time was also unregulated. Both have since grown to become the biggest regulated sports betting and iGaming companies in the US.

“We’ve got a very clear signal from the federal government that [crypto] is a technology we should embrace,” Eccles told iGB. “We’ve got really clear operator interest. And so I do feel at a state level, a state regulator level, it is only a matter of time” before the benefits outweigh the risks.

Eccles said security and anti-money laundering risks are the biggest barriers holding crypto back from gaming. But he argued the traceability of crypto makes it more secure than fiat currency, and individualised wallets help protect against fraud and chargebacks.

From a functional standpoint, Eccles contends that operators would save tremendously on money-moving fees, which eat away at margins. This, in turn, could allow for more bonusing to players or other similar benefits.

“Instead of giving 15% of our revenue straight out the door to Visa and MasterCard, we can actually give a chunk of that back to the player and say, ‘Look, you can have a better experience’,” Eccles said.

At the heart of the debate is Morten Rønde, director of the Danish trade body Spillebranchen and managing partner at Nordic Legal. Speaking to iGB on the immediate impact of the changes, Rønde did not mince his words.  

“I am shell shocked to say the least,” he says, capturing the uncertainty and frustration spreading through the sector.  

For more than a decade Denmark has been viewed as a model for balanced gambling regulation – strict enough to protect consumers yet flexible enough to sustain a competitive licensed market. That balance, according to Rønde, has been the key to its success.  

Regulator’s relationship with the sector

In August, Denmark achieved gambling revenue of DKK 714 million – both a year-on-year and month-on-month increase. Sports betting and iGaming markets posted double-digit growth compared to the same month last year. 

“I think the key is that Denmark has struck a balance where you have strict consumer protection and kind of strict, but still pragmatic, rules that are possible to comply with for the operators,” Rønde says. The model, he added, maintained a structure where the regulator has been working “in a very open-minded way”. 

This dialogue-based relationship between the regulator and licensees – praised in a recent comparative report between Sweden and Denmark, ordered by the Swedish trade body BOS – has long been a cornerstone of Denmark’s success.  

Rønde insists the Danish Gambling Authority operates as “the glue in the system”, maintaining trust through direct, transparent communication. “Each operator has two contact persons assigned,” he adds, “a legal contact and a technical contact. So that creates a more personal approach in dialogue with the regulator.” 

A turning point for Denmark’s gambling model 

But that finely tuned balance has come under strain. The government’s new gambling agreement marks a decisive shift. Minister for Taxation Ane Halsboe-Jørgensen of the Social Democrats said it marked the beginning of a reckoning with a gambling industry “that has, for far too long, taken up too much space”.  

She said the new measures were to prevent entertainment “from turning into addiction. It requires both responsible operators, stronger regulations and a sustained political effort.” 

The government claimed nearly 500,000 Danish adults experienced some extent of gambling problem in 2021 – a figure that has doubled since 2016 – with almost 30,000 experiencing serious gambling problems. Twenty-five thousand Danish children and young people have experienced some degree of gambling harm, according to government data. 

“I’m really pleased that we’ve reached a broad agreement that, above all, ensures we can now protect our children and young people much better from advertising for gaming and gambling,” Jan E Jørgensen of the Liberal Party, Venstre, said. 

Denmark gambling addiction debate intensified

As public debate around gambling addiction intensifies in Denmark – fuelled by high-profile media stories about widespread gambling addiction among younger men and political pressure – Rønde argues that the measures being implemented are not evidence-based. 

“There’s been a rise in gambling addiction,” he acknowledges, “but based on a study that is now three years old and had quite inconclusive findings.” The government, he said, is acting largely because “people are just sick of all the gambling adverts, which we agree with – there are too many of them. They are overexposed in the market.” 

Rønde is certain the arguments put forward in the political decision-making process were not supported by meaningful evidence. “In all the proposals that are made, there’s no link to any evidence that this is something that will help gambling addiction. And I am pretty sure that it won’t,” he says. 

In his view, the only sustainable path forward is to manage the balance between consumer protection and an attractive regulated offer. “Advertising in Danish media is the only advantage that a licensed operator has. Because otherwise it’s just restrictions and taxation. When you are [no longer] allowed to advertise, you lose that competitive advantage,” Rønde explains.  

If those advantages continue to erode, he warns, “there’s nothing left other than the branding you can put on your website that says you’re regulated by the Danish authorities.” Outlining the broader risks, he insists restricting the legal market too heavily will tip the balance. 

“And it becomes unviable for the operators, but also for the consumers in Denmark. That leads to leakage in the market and consumers going to the black market. And again, in turn, it would lead to more addiction and more gamblers who get in trouble.” 

Total ad ban threat and the risk of market leakage 

The new rules, agreed to by a broad coalition of political parties, will prohibit betting advertising during live sports broadcasts, restrict outdoor advertising within 200 metres of schools and impose new limitations on bonuses. This could indicate the end of outdoor advertising in Denmark’s major cities.  

Still, Rønde warns the outcome could have been worse: “It looked worse at one point; a complete advert ban was discussed, but it’s still not great where we’ve landed.” The political appetite for stricter measures remains strong. “There are several political parties in Denmark who are in favour of a full advertisement ban,” he notes.  

“What happens if you do impose a ban? Those countries who have tried like Italy and now the Netherlands have seen an explosion in illegal gambling offerings.” He points out the Italian government is now rolling back part of its advertising ban because it was creating too many illegal gambling offers for Italian players. 

Denmark could follow the same path – undermining its once-enviable rate of channelisation. “It’s impossible to block operators from the market,” he says of illegal offerings. Black market presence in the market is heightened by a lack of popular products like crash games and virtual betting, as well as various casino games that are banned.  

H2 Gambling Capital data shows Denmark’s channelisation rate has fallen to 72%, the same as Sweden. It was historically among the highest in Europe, sitting at around 90% in 2022. Rønde attributes much of the decline to player interest in the aforementioned banned verticals.  

Mounting economic consequences 

In terms of economic consequences for the sector, Rønde can’t put a figure on it, but insists the sum of the 20 or more new measures will have a big impact. The trade body is considering what these changes will mean for the industry. Most concerning is the likelihood that operators will exit the market in response. “It will severely impact the market and the whole business of being in Denmark,” he laments.  

TV2, the biggest commercial TV channel in Denmark, which holds the licence to show matches in the Danish football Superliga, said it expects revenue to drop due to the gambling ad ban – potentially up to €12 million per year. “It should be no secret that the regulation comes with significant financial consequences,” TV2’s commercial director, Stig Møller Christensen, said of the impact. Previous government calculations pointed towards a loss in tax revenue in the hundreds of millions in Danish Kroner for the state.  

Denmark was the industry’s ‘beacon of light’ 

In neighbouring Sweden, gambling trade body BOS has been watching Denmark’s developments closely. Gustaf Hoffstedt, BOS’ secretary general, voiced concerns that the new Danish direction could undermine a system long seen as a model for Europe. 

“It concerns me,” he says, “because Denmark, together with the United Kingdom, have been the two beacons of light in Europe when it comes to safeguarding the licensing market.” According to Hoffstedt, H2’s revised estimate of 72% channelisation for Denmark is “totally dissatisfactory”.  

Like Rønde, he warns against measures that risk driving consumers toward unlicensed gambling: “Denmark should pay more attention to how to create an attractive legal licensed market than to implement measures that will scare away more consumers. After all, that’s the number one consumer protection measure that you can take.” 

Hoffstedt cautions that Denmark’s reputation as a regulatory role model is now in question. “Denmark has at least up to this moment been possibly the best example in Europe,” he notes. “Yes, I’m afraid it will change – that Denmark is also choosing a path that in the long run may lead to them crawling in the mud, just as so many other European jurisdictions.” 

The message is clear: tightening regulations without maintaining a viable, competitive legal market risks undoing years of progress in consumer protection and channelisation.

As Denmark’s gambling restrictions move toward implementation in January 2027, time will tell whether one of Europe’s most admired regulatory systems can preserve its balance – or whether it will become, as Rønde fears, another example of good intentions gone awry. 

After months of breakneck pace and a flurry of news from applicants, the process has largely ground to a standstill, at least in public view. Bidders have made their final offers and the many hours of public input from previous rounds have been replaced by closed-door meetings of the GFLB.

The GFLB’s first meeting 8 October was just 15 minutes and was largely organisational. But the rest have run for multiple hours, and although the virtual meetings are open to the public, the audio and video are disabled when the board is in session. Only the opening and closing of the meetings are viewable.

None of the five board members has experience in or connection to gaming, to help ensure neutrality. Four of the five were appointed just this year, the most recent on 30 September.

The board is working toward a 1 December deadline to submit licensure recommendations to the New York State Gaming Commission (NYSGC). So far, a weekly cadence has been established for its meetings. That would indicate that there is a maximum of five more meeting opportunities before the deadline, including Wednesday.

What criteria is NYC casino board considering?

Once its recommendations are submitted, the commission will have final say on the licensing outcome. Regulators could issue all three, less than three or award some at a later date. When the upstate New York casino process was conducted in 2014-15, four casinos were recommended by the GFLB but only three were licensed initially. The fourth licence, which went to Tioga Downs Casino Resort, was issued a year later.

Following a surprise exit by MGM Resorts earlier this month, three applicants remain for the three downstate licences:

• Bally’s Bronx
• Metropolitan Park
• Resorts World NYC

The bidders submitted their final, amended applications to the GFLB 14 October. Each project is being reviewed based on four weighted criteria:

• Economic activity and business development (70%)
• Local impact siting (10%)
• Workforce enhancement (10%)
• Diversity framework (10%)

Bally’s busy across the country

All three bidders have been active as the process unfolds. Bally’s in particular is stretched coast to coast, with ongoing projects in Chicago and Las Vegas in addition to its $4 billion Bronx proposal.

Its Chicago project has seen multiple roadblocks, including recent pushback from lenders financing the project. Bally’s is obligated to open the $1.7 billion casino by 9 September 2026 under its host city agreement but is currently projecting a fourth-quarter opening. The company did not respond to a request for clarification on this point.

On the Las Vegas Strip, Bally’s unveiled new renderings and broad construction timelines this month for its 26-acre plot next to the under-construction A’s MLB stadium. Preliminary plans include four construction phases that would begin as early as April 2026 and finish by March 2029.

The spacing is somewhat condensed, as Phase 1 is slated to open alongside the stadium in spring 2028. That timeline would leave just one year to complete the remaining amenities. Phase 1 only includes infrastructure, dining and retail spaces. The casino, two hotel towers totalling 3,000 rooms, and a theatre would come in Phases 2-4.

Bally’s has faced immense scrutiny for its highly leveraged business model and consistent debt manoeuvering. Much of its funding has come through Gaming and Leisure Properties, which has not ruled out the possibility of investing in a New York project. Bally’s has said its reverse-merger with Intralot reset its balance sheet with  “more than $1 billion of cash and available credit facilities”.

Unlike other New York casino bidders, however, Bally’s would owe an additional $115 million to the Trump Organization if awarded a licence. That controversial kicker was included in the sale agreement from 2023.

Resorts World, Hard Rock all-in as well

Resorts World is also doing some shuffling as it angles for a New York casino licence. Parent company Genting Berhad is attempting to buy out its Genting Malaysia subsidiary for $1.6 billion, to help consolidate its capital structure. A previously announced sale of its Resorts World Catskills property to Sullivan County in upstate New York is on hold until the merger is completed.

With regard to the downstate process, Resorts World remains the most committed bidder in the field. It is proposing the highest licence fee ($600 million), the highest tax rate (56% for slots, 30% for tables) and the fastest speed to market (July 2026). The project received unanimous approval from both the public and its appointed community board. In addition to $5.5 billion in capital investment, Resorts World is pledging $2 billion worth of community benefits.

Metropolitan Park’s casino partner, Hard Rock International, has been the quietest of the three finalists by comparison, though it has several ongoing projects of its own, including a Las Vegas Strip resort. Its finances are perhaps most secure for a New York casino, given the project’s connection to Steve Cohen. Cohen is the owner of the New York Mets and is listed as the 101st-richest man in the world by Forbes.

The company made headlines last week for its donation to a $300 million ballroom project at the White House. No comment was given and no amount was disclosed, but Hard Rock Chairman Jim Allen was previously an executive for the Trump Organization.

MTA counting on a lot of New York casino money

There are two factors at the state level that might complicate the licensing process. The first is the fact that New York’s Metropolitan Transportation Authority (MTA) has long earmarked licence and tax revenue for future budgets. Its projections indicate an expectation that all three licences will be awarded, and quickly.

According to an MTA financial outlook from the state published this month, the agency is depending on “$500 million annually during 2026 and 2027, $600 million in 2028 and $200 million in 2029” from casino licensing and tax revenue. That totals $1.8 billion, and the exact figure that will come from licence fees is still unknown.

Resorts World and Hard Rock are pitching a combined $1.1 billion in licence fees, while Bally’s did not indicate a fee preference. The $500 million minimum indicates the total would be at least $1.6 billion, but there is no guarantee that all three bidders will remain in consideration following several withdrawals by other major gaming companies. Time is also of the essence for the GFLB and the NYSGC to make their decisions by year’s end.

“Any delay in the approval would lead to a delay in the MTA receiving license fee revenue and then recurring gaming tax revenue — opening potential budget gaps,” the report said.

New York state already faces a $34 billion cumulative budget gap over the next three fiscal years.

Kalshi lawsuit now top-of-mind

Adding to the New York casino intrigue is a new lawsuit between the state and the prediction market Kalshi. The NYSGC last week became the eighth state regulator to send a cease-to-desist letter to the controversial platform, and Kalshi sued in response. The company is now involved in lawsuits with a total of six states: New York, Massachusetts, Ohio, Nevada, Maryland and New Jersey.

Tribal groups in California and Wisconsin have also filed suit, and several other states have sent warnings or notices to sports betting licensees.

New York has substantial turf to defend as prediction markets expand in scope and prevalence. The Empire State boasts the biggest online sports betting market by revenue and tax generation in the US. Its running total of both retail and online handle is nearing $75 billion, with almost $3.5 billion in tax revenue.

Sports event contracts on prediction markets, including parlay-type offerings, could affect New York more than any other wagering market based on revenue and taxes. This significance has fast-tracked these lawsuits in other markets, meaning there is no time to waste for state officials in the wake of the licensing saga. It remains to be seen what kind of strain this added pressure might have on the downstate process.

Jones, a former teammate of the NBA’s career leader in points, allegedly disseminated non-public inside information on an injured player to a betting syndicate in February 2023. While the Lakers forward is not named in the indictment, the unnamed player fits the profile of James based on the fact pattern enumerated in court filings. Hours after Jones’ arrest on 23 October, a federal prosecutor urged a Nevada judge to impose restrictive conditions on his pre-trial release. The strict conditions stem from the ex-NBA player’s “serious gambling problem”, noted Clay Plummer, an assistant US attorney, at last week’s hearing.

Given the immense publicity the case has received, Jones’ compulsive gambling habits could serve as a mechanism for convincing others to seek help, according to several leading specialists in the field. Jones, who amassed NBA career earnings of nearly $22 million, told the judge last week that he could not afford to hire a defense attorney.

“If Mr Jones does in fact have a serious gambling problem, I hope he knows that help and hope are out there and that recovery is possible,” said Brianne Doura-Schawohl, CEO of Doura-Schawohl Consulting LLC, a boutique global government relations firm that specialises in problem and responsible gambling policy. “It would be nice if his story served as an inflection point for change.”

Saddled in debt

While Jones ended his NBA playing career more than a decade ago, he has remained in close contact with James. During the 2022-23 NBA season, he served as an unofficial assistant coach with the Lakers, where he had pre-game access to the NBA star. Jones allegedly provided a tip to a syndicate that a player would miss a 9 February 2023 game against the Bucks. For his efforts, Jones received a payment of $2,500, court filings state.

Since Jones’ arrest, a narrative has formed around his proclivity towards heavy gambling. One professional gambler told the New York Post that he witnessed Jones betting thousands of dollars per hand on dice at a Las Vegas casino. Michael Osborne, the bettor, added that Jones was a fixture at the ARIA’s high limit room where he sought out players who rode a hot streak. On occasion, Jones would solicit the players for loans to finance his gambling habits, Osborne told the Post.

As many individuals with a serious gambling problem get into significant debt, the bettors search feverishly for a way out, noted Keith Whyte, former executive director of the National Council on Problem Gambling. When the losses accumulate, bettors may increase the volume of wagering, which only lands them in deeper trouble, Whyte explained.

“This desperation phase of a gambling problem can lead to a host of negative consequences – from chasing losses to committing financial crimes to compromising the integrity of the game,” he told iGB.

Increased funding for treatment

In the wake of last week’s arrests, the advocacy groups remain hopeful that legislators will use the case as impetus to direct additional funding into problem gambling outreach. The NCPG recommends that states allocate at least 1% of sports gambling proceeds to prevention and treatment, a target it believes that most states do not meet. 

John Millington, director of strategic partnerships at Epic Global Solutions, outlined a bevy of potential initiatives last week, most notably conditions that establish mandates for “ring-fenced funding”. Those programmes compel gambling operators to make contributions dedicated exclusively to education, prevention and support services in the area.

Doura-Schawohl is pushing for stronger restrictions on gambling ads that feature celebrities, while Whyte recommends efforts that will make outreach more accessible for those struggling with a gambling addiction.

“Stories like this can serve as a cautionary tale for other athletes,” said Whyte, who launched Safer Gambling Strategies, a problem gambling advocacy site. “Legalised gambling generates far too much revenue for problem gambling resources to be so scarce.”

Plummer, the assistant US attorney, asked a Nevada judge to impose certain conditions on Jones that restrict him from taking part in online gambling under his pre-trial release. Jones is facing charges on wire fraud conspiracy and conspiracy to commit money laundering. The NBA has issued a memo to players, according to ESPN, articulating the “dire risks that gambling can impose upon their careers and livelihoods”.

This rising sophistication is only part of the problem. Many iGaming operators still view fraud prevention through a narrow lens – as a defensive measure rather than a strategic advantage. Manual reviews, outdated triggers and siloed teams are able to intercept attacks, but they also risk alienating legitimate players.

Nearly half of European iGaming operators believe fraud cost them more than 10% of their revenue last year. A further 15% put the figure at more than 20% of their total revenues, with 83% of operators claiming the issue had grown year-on-year.

With fraud accounting for industry-wide losses reaching tens of billions of euros in 2024, it’s clear significant resources must be directed toward protecting businesses. Yet the question remains whether prevention can also drive growth. Could anti-fraud technology move from being a cost centre to becoming a catalyst for profitability?

Volodymyr Todurov, CEO at Frogo, believes it can. “Fraud management shouldn’t be seen as a cost centre any more,” he said. “It’s a profit enabler. Every threat we eliminate, every customer we protect, every second we save in the payout process – it all translates directly into growth.”

From protection to performance

Frogo was founded by iGaming professionals who saw that existing fraud systems focused too heavily on blocking activity rather than understanding it. The Cyprus-headquartered fraud prevention and risk management service provider’s mission is to protect operators without slowing them down, ensuring genuine players can transact freely while threats are detected early.

Frogo’s multi-layered AI framework continuously assesses and learns from behavioural patterns. It analyses transactions in real time, identifying deviations without disrupting normal player journeys. The result is a blend of automation and human strategy that reduces false positives while streamlining legitimate activity.

“The biggest issue I see is that too many systems punish good customers by mistake,” said Todurov. “A few failed deposits might look suspicious in isolation, but without context, you are treating a loyal VIP like a fraudster. That’s not just a bad experience – it’s lost revenue.”

Data in, insight out

At the heart of Frogo’s technology lies what Todurov calls “data enrichment with purpose”. The platform uses device fingerprinting, AI-powered scoring, and graph-based forensics to create an evolving profile of each user. By combining IP data, payment details, device signals and behavioural history, even without receiving any personalised data, Frogo produces a holistic picture that makes fraud easier to detect and genuine play easier to verify.

“The more data we have, the better our accuracy,” Todurov explained. “Fraud prevention is not just about detection; it is about understanding behaviour. With rich data, we can lower false positives dramatically. Without it, an operator might check 11 or 12 genuine customers to catch one fraudster. With the right data, we can find a balance between the client’s risk appetite and the accuracy of the risk model to achieve maximum performance/effectiveness.”

This precision brings commercial as well as operational benefits. Faster payouts and fewer false alarms translate into higher player trust and stronger retention. “When players see that their transactions are smooth and safe, loyalty goes up,” the CEO added. “That is how fraud prevention directly contributes to retention.”

Automation that pays for itself

As well as better detection, Frogo’s proposition is built on measurable financial return. iGaming operators that integrate the platform often see results within weeks, thanks to high automation and speed.

The system can be implemented in as little as two weeks, operating at sub-second response times. By automating tasks that previously required manual oversight, operators can redeploy their teams more efficiently. For instance, automated withdrawal scoring removes the need for financial managers to review every transaction individually, significantly reducing operational costs.

“When we talk about return on investment, we’re not talking about small percentages,” said Todurov. “It is often tenfold or twentyfold depending on transaction volume and integration level.”

Crucially, Frogo’s scoring data also supports wider business functions.

“If a returning player forgets their password and creates a new account, our system spots the connection and alerts the VIP team,” Todurov said. “Instead of blocking the player, the team reaches out to restore their existing account. That saves money on KYC and preserves the relationship.”

The human touch behind the AI

While Frogo’s platform is powered by AI, their valued clients’ security is not delegated to cyborgs. For Frogo, human expertise remains essential, with algorithms alone unable to define a client’s risk strategy. “AI is a tool, not a replacement,” Todurov added. “It can process millions of data points, but it cannot decide your strategy. Humans still design the policies, interpret results and understand business risk.”

Frogo’s team works alongside clients to tailor scoring models and adapt them over time. Frogo regularly analyses operator feedback to refine trigger accuracy and reduce false positives. “If your fraud policy triggers 800 times and you only block 10 actual fraudsters, that is 790 unhappy customers,” Todurov commented. “We analyse those outcomes and adjust the logic to improve conversion.”

This ongoing collaboration between people and technology ensures that anti-fraud systems evolve in lockstep with the threats they are designed to combat.

Future-proofing against AI fraud

Frogo is closely tracking trends such as the rapid evolution of fraud as generative AI becomes more accessible and widely used. The company notes that operators must now prepare for a new class of threats driven by automation, synthetic identities and the growing complexity of payment ecosystems. The expansion of crypto and digital wallets, combined with increasingly advanced fraud tactics, is redefining how risks must be managed.

Deepfake IDs, identity  biometrics and AI-generated liveness checks are now capable of bypassing conventional verification methods. Todurov warned that passing KYC no longer guarantees trustworthiness. “AI can forge documents and fool liveness checks,” he said. “That means we need to rely more on behaviour than on appearance.”

Frogo’s system focuses on the unique patterns of activity that distinguish real users from synthetic ones. “Even if you can fake a face, you cannot fake a person’s digital rhythm,” said the CEO. “We look at velocity, timing, device switching and gameplay behaviour – things that reveal the human behind the data.”

The company’s adaptive approach also addresses the rapid expansion of alternative payment methods. As crypto and e-wallet transactions become mainstream, old rules around payment frequency or wallet count no longer apply. “Having multiple wallets is not suspicious anymore,” Todurov said. “Fraud detection must evolve from static thresholds to dynamic baselines that reflect real customer behaviour.”

Real-time resilience

Frogo’s latest innovation is a real-time alerting system that gives operators instant visibility into emerging threats. Whether detecting abnormal traffic, spikes in failed deposits or subtle shifts in betting activity, the feature ensures teams can respond immediately.

“Speed is crucial. Fraud does not wait for manual review. If something is wrong, we help teams act before it spreads.”

The platform also connects departments that historically worked in isolation. Anti-fraud, payments, affiliates and compliance teams can now share intelligence through unified alerts. “Fraud protection should not happen in silos,” Todurov added. “When teams act together, you are not just stopping fraud – you are improving overall performance.”

Redefining the cost centre

Todurov believes the operators that will thrive in the coming years are those that treat fraud prevention as a driver of performance, not merely a line of defence. “When a tool such as Frogo is fully utilised – both for fraud detection and for generating insights about potentially high-value clients – your return on investment increases proportionally to Frogo’s integration depth with your product.”

“Payouts are processed faster, customer satisfaction improves, and staff workloads are reduced.”

Frogo’s infrastructure runs on secure Amazon cloud architecture, compliant with GDPR and ISO 27001 standards, with PCI DSS certification scheduled for 2025. Each client environment is isolated, ensuring full data protection and regional compliance.

“Our mission is straightforward,” concluded Todurov. “We want to make fraud prevention invisible to the player and invaluable to the business. The smarter it becomes, the more iGaming operators can focus on what truly matters – growth.”

On 20 October, about 150 California card room employees, city officials and labour organisers gathered outside Attorney General Rob Bonta’s office in downtown Los Angeles to protest two sets of proposed regulatory changes related to blackjack-style games and player-dealers. The changes, if enacted, could significantly affect revenue and future growth for the sector.

Armed with picket signs and bullhorns, protestors chanted “fight for our jobs” and “save our cities”, buttressed by honking support of cars and city buses passing by. The demonstration as a whole lasted about an hour.

The aesthetic of the rally was the Monopoly board game. A “Monopoly man” mascot posed for photographs and rained fake money that featured Bonta’s face, with the words “Supporting CA Tribal Monopoly, Destroying our Communities”.

Several elected officials spoke against the proposed regulations, including representatives of nearby cities Hawaiian Gardens, Compton, Commerce and Bell Gardens. All of those cities feature card rooms that provide revenue to fund municipal services.

In Bell Gardens, for example, more than 40% of the city’s general fund comes from card room revenue. Parkwest Bicycle Casino in Bell Gardens is the third-largest card room in the state by table count. For others, like Hawaiian Gardens, that percentage is even higher, reaching 70% or more in some years. Bell Gardens Councilwoman Francis de Leon Sanchez told iGB at the protest that the regulations would “tremendously affect” her city’s services and residents if enacted.

“A lot of jobs are going to be lost,” Sanchez said. “I come from a very hardworking Latino community, and a lot of our residents do work at the casino, so they’re going to have to find other sources of income. It’s going to be devastating.”

The California Nations Indian Gaming Association (CNIGA) did not respond to requests for comment. Tuari Bigknife, the attorney general for the Viejas Band of Kumeyaay Indians who has advocated for tribes on this issue, also did not respond to requests. The Indian Gaming Association declined to comment.

How did California card room fight get here?

The protest was the latest round in a fight that has been ongoing for decades. Indian tribes have exclusivity for Class III gaming in California, which includes slots and house-banked table games (player vs the house). This was granted through the passage of Proposition 1A in 2000.

As such, card rooms are only able to offer player-banked, or peer-to-peer, gameplay. The revenue-generating differences between the two styles is stark, with the advantage going to Class III.

Per the National Indian Gaming Commission, California tribal casinos generated $12.1 billion in gross gaming revenue in fiscal year 2024, up 1% year-over-year. There is less available data for card rooms, but a 2019 study estimated their total economic impact to be about $5.6 billion annually.

The complex system of TPPPs in California card rooms

In late 2007, card rooms deployed what are known as third-party proposition players (TPPPs). State regulations require dealers in card rooms to offer players the opportunity to act as the bank after every hand or round. Most players do not have the funds or desire to act as the bank in a peer-to-peer setting, which can stifle gameplay.

TPPP entities are licensed contractors whose employees work in card rooms as designated player-dealers. They take up the offer to bankroll gameplay repeatedly and are funded by their employers for that purpose. Card rooms utilise this system to help run Class III-style games like blackjack and baccarat.

Tribes have long contended that this is simply a workaround to offering house-banked games that violate their exclusivity. Proponents point to regulations that stipulate TPPP providers must be financially independent from card rooms. This separation is what stakeholders say delineates the games from house-banking. They argue that the games have been operating in accordance with state law for nearly 20 years now.

“Let’s be clear: these are legal, licensed and regulated games,” Hawaiian Gardens Mayor Dandy de Paula said at Monday’s protest. His city is home to Gardens Casino, the state’s second-largest card room by table count.

Despite the independence requirements, the web of connections between card room owners and TPPP providers is deep and complex. Further, the original idea for TPPPs is widely credited to Bob Lytle, who served in the AG’s office as the state’s top regulator before resigning to work for a card room.

Lytle sent a letter to two card room lobbyists days before resigning that outlined his interpretation of player-dealers under state law, and TPPPs emerged shortly after. Lytle was later banned from the state’s gaming industry for tax fraud and other charges in 2016.

Tribal suit bill passed, but lawsuit dismissed

TPPPs have been controversial since their inception but tribes had limited avenues of enforcement. Previous legal action in state court had been unsuccessful because of tribes’ lack of standing as sovereign nations. However, both legal and regulatory pathways emerged in recent years.

The legal front started with the bill SB 549, also known as the Tribal Nations Access to Justice Act, which was introduced in the state Legislature in 2023. Its passage in 2024 provided tribes with a unique, one-time carveout to sue card rooms over the banked-games issue. That suit was filed in January of this year but ultimately dismissed this month.

Sacramento County Superior Court Judge Lauri A Damrell ruled that the case was preempted by the Indian Gaming Regulatory Act, which is federal law. Tribes immediately signalled intent to appeal, and the matter is still yet to be fully determined.

“I may be wrong,” Damrell said during the hearing, per Casino Reports. “And I expect there will be an appeal. And so, I welcome the guidance from the Court of Appeal on this as well and we’ll see where it goes.”

The dismissal was a notable setback for tribes, who so far have successfully defended every challenge to their exclusivity post-Prop 1A.

In 2022, Indian Country defeated Proposition 27, a mobile sports betting initiative backed by commercial bookmakers that became the most expensive ballot fight in US history. This year, the state legislature unanimously approved a ban on sweepstakes sites, a prohibition sought by tribes. And Bonta’s office in July published a long-awaited legal opinion declaring essentially all forms of daily fantasy sports illegal in the state. DFS has long been in tribes’ sights as well.

Regulations promulgated by Bonta, regulators

As lawmakers were debating SB 549, Bonta and the state’s Bureau of Gambling Control (BGC) also initiated the rulemaking process that ultimately led to the proposed regulations on the games and player-dealers. The BGC is the state’s gambling law enforcement and investigative arm, separate from the California Gambling Control Commission.

Public comments from both tribes and card rooms were collected in October 2023, and official notices of proposed rulemaking for both sets of rules were published 11 April 2025.

The proposed changes to player-dealer regulations include:

• The player-dealer must be seated at the table at all times and the position must be offered to all players before every hand. This offer shall be “visible to surveillance cameras”.
• Each table must post the following notice: “Any player can assume the player-dealer position when it is offered. The player that assumes the player-dealer position cannot win or lose more than the amount they wager.”
• The role of player-dealer must rotate to “at least two players other than the TPPP every 40 minutes or the game shall end”.
• If the TPPP is serving as the player-dealer, the next rotation must be to another player.
• Additionally, TPPPs would only be allowed to accept and settle wagers when they are serving as player-dealer.
• Only one TPPP would be permitted per table.

Huge changes to blackjack-style rules

The proposed changes to blackjack-style games would render them virtually unrecognisable from a gameplay standpoint.

They include:

• Games would no longer be able to have a “bust” feature, where a player or dealer automatically loses if their total exceeds 21. Rather, wins and losses “shall be determined solely by whether the total points of a player’s hand is closer to the target point count when compared with the total points of the player-dealer’s hand”.
• The target point cannot be 21.
• With the absence of a 21 target, players or dealers would no longer automatically win a hand with that combination.
• In the event of a tie or “push”, players would win, instead of the usual non-action.
• No games shall feature the words “21” or “blackjack” moving forward.

While the player-dealer changes would be significant, the blackjack rules drew the most scrutiny from demonstrators at the protest.

“Why should [tribes] have the exclusive right to blackjack, when cities across LA County depend on this revenue to survive?” Compton Mayor Emma Sharif said. “For families across LA, this isn’t just about a game. It’s about our jobs and our people.”

Tribes accused of pushing for new regulations

The protestors and speakers accused tribes of being the motivating force behind the new rules. Most of the changes appear to align with tribes’ longstanding objections. In its published notices, the BGC indicated that the rules were being introduced to help clarify and enforce existing regulations.

“The regulations will benefit the public’s health, safety and welfare and the regulated industries because they will ensure that the public does not engage in, and the regulated industry does not offer, any form of gambling prohibited by Penal Code section 330 and the State Constitution,” the BGC’s notice said in part.

Bonta’s office told iGB it is unable to comment during rulemaking processes, other than to confirm the review is ongoing. The office said the process must be completed “within one year from the date of notice publication”. That would mean 11 April 2026.

Political spending from tribes, card rooms

Both card rooms and tribes are heavily involved in state politics and lobbying, though the latter have more spending power. According to CalMatters, tribes donated $23.5 million to candidates for state offices from 2014-24.

Card rooms, by comparison, donated $3.8 million in that timeframe. Notably, card rooms ramped up lobbying after the passage of SB 549 and managed to unseat three officials who had voted in favour of the bill.

Bonta accepted donations from both sides during his 2022 AG campaign, per state records. Tribes were the bigger contributors, however, including out-of-state tribes from Montana and Oklahoma. His 2022 campaign grossed $7.1 million in total donations, while his 2026 reelection campaign is currently at $6.7 million.

Opposing sides share reliance on gambling

Perhaps the most striking aspect of the debate is that the warring sides share many similarities and desires. Both groups rely on gaming revenue and casinos as their communities’ main sources of funds and employment.

For many tribes, gaming has transformed life for members in just a few generations. In 1990, when tribal gaming was in its infancy, the poverty rate among California Native Americans was 34%, per UCLA. A University of California study from this year pegged that rate at 18%.

Tribal casinos have grown to become some of the state’s largest employers and community partners. Their facilities are consistently recognised with top hospitality and gaming honors. USA Today listed three California tribal properties in the top five of its 10 best casinos outside of Las Vegas.

“We are very much focused on being good community partners and having that positive view of our industry,” CNIGA Chairman James Siva told GGB in 2024. “As we look forward to the expansion of gaming, at the end of the day, it will be about defending our sovereignty, and tribes will be willing and are willing, and in the future we’ll continue to fight in any way we need to defend that.”

‘Without our card room, I don’t think I would be here’

Card rooms, by comparison, are also mostly located in minority communities. The cities of Commerce and Bell Gardens, for example, are both more than 90% Hispanic, per census data. Compton’s population is 70% Hispanic and 25% African-American.

Nary Chin is a dealer at Gardens Casino, having worked there since immigrating to the US 27 years ago. She told iGB at Monday’s protest that the casino provided her with everything she hoped for when she first arrived in the country. It has come to represent her version of the American dream.

“There was a time where I only wanted to commit suicide – I had no way out,” Chin said. “This is the first time I’ve got a job, made good money, and I told my children, ‘We don’t have to go through hard times anymore. We’re gonna be OK.’… The card room provided me all of that.

“Every time they want to shut down the place, they want to take blackjack-style games away, for me, I cannot handle that…They tell you, ‘Oh, it’s just a job, you go there to make money.’ But it’s a job that cares. Without our card room, I don’t think I would be here today, honestly.”

At stake is whether Estonia – already one of the world’s most digitised economies – can convert its technological advantage and forward-thinking tax policies into a credible and sustainable hub for online gaming. 

“Estonia is indeed moving toward positioning itself as a more attractive and competitive jurisdiction for gambling operators,” says Margus Reiland, partner and head of regulation, gambling and tax at Tallinn-based Law Firm Widen. 

Reiland explains that Estonia’s new gambling bill currently being debated in Parliament represents the most significant update to Estonia’s gambling framework in more than 15 years.  

New measures being considered

Among its key measures are: 

• Updated definitions of remote and additional gambling. 

• Broader scope for licensed operators to offer support services such as IT and accounting within the same group. 

• Mandatory audits of annual financial reports. 

• Clearer anti-money laundering data requirements for licence applications. 

• The Tax and Customs Board becoming the single point of contact for licences. 

• Tighter rules on gambling venues located near youth facilities. 

• Tenfold increases in fines and penalties. 

• Perhaps most importantly, a reduction in the remote gambling tax rate. 

According to the bill’s explanatory memorandum, its aim is to “modernise rules that have remained largely unchanged for over 15 years, strengthen supervision and improve the reliability and transparency of the gambling sector”. 

“In other words,” Reiland adds, “the reforms aim to encourage licensed operators to base their operations in Estonia instead of elsewhere in the world.”  

The timeline for reforms remains uncertain but Reiland says the bill is currently under parliamentary discussion and has not yet been adopted. “That being said, if the government coalition remains stable and continues to support the proposal, it is likely that the amendments will eventually pass,” he adds.  

Estonia new gambling bill’s tax reform 

One of the headline changes is the proposed lowering of Estonia’s gambling tax. For Reiland, this sends a clear strategic signal. The proposed bill by MPs from the Eesti 200 and the Reform Party would gradually reduce the remote gambling tax rate by 0.5 percentage points per year, aiming to reach 4% by around 2029.  

“From a regulatory standpoint, the intent appears to be to strengthen Estonia’s position in the gambling sector,” Reiland says. “And that intent is without a doubt positive.” 

Operators have largely welcomed the move, viewing it as recognition that “their long-standing concerns and challenges are being acknowledged by policymakers,” says Reiland. Although he also points out that the wider political debate “has been more divided”.  

The main question seems to be whether lowering the gambling tax truly benefits the wider economy or primarily favours the operators. 

The most prominent opponents are members of the centre-left opposition party Keskerakond The underlining sentiment is that the proposed gambling regulation is a lobby project, with no real positive effect. Industry insiders, however, are cheering the direction of travel.  

In an October blog post, Tim Heath, founder of crypto-driven gaming giant Yolo Group, praised Estonia’s new gambling bill, noting: “Only a year ago, the plan was to raise taxes. Proposing a different course took serious courage, and it shows the Estonian government understands how our industry really works.” 

Yolo has been headquartered in Estonia for years. Lower tax friction, Heath argued, would attract more operators, which in turn could bring “more investment, more jobs and, ultimately, more tax revenue. By going down this path, Estonia is choosing to grow its share of the pie rather than fight over the crumbs.” 

Digital credibility as a competitive edge 

Reiland believes Estonia’s strengths go beyond gambling taxation. “Obtaining and maintaining a licence in Estonia is already relatively fast, cost-efficient and administratively straightforward,” he explains. 

On top of that, “Estonia has strong IT infrastructure, robust cyber security standards and a well-developed anti-money-laundering framework. This raises the regulatory credibility to a high level.” 

In his view: “Estonia has always been a solid and effective choice for getting a licence – it just hasn’t received the same level of international attention as some other jurisdictions.” That could soon change. Estonia’s X-Road data-exchange system – a secure interoperability platform connecting public and private databases – underpins much of the nation’s digital governance and has become a unique asset for regulators. 

“It’s not just used in gambling supervision,” Reiland notes. “It’s also in data exchange across government agencies, health service providers and many private sector stakeholders. I wouldn’t go as far as to say it is a branding exercise but a widely used system that does actually support regulatory efficiency.” 

Yolo Group’s Heath agrees that this technological backbone gives Estonia an advantage few others can match. The market’s use of crypto as a payment method for gambling is a huge benefit to the group. “Estonia’s embrace of crypto in this new regulation helps cement its reputation as the world’s most digital country,” he wrote. “It encourages operator transparency and turns it into a national advantage.” 

Crypto and compliance in the EU  

Unlike many European jurisdictions tightening their stance on digital assets, Estonia is keeping cryptocurrency as an approved payment method – albeit under strict AML and KYC rules. 

“The Estonian approach allows crypto as a payment method for Estonian licensed operators,” Reiland explains. But he cautions that since MiCA – the European Union’s comprehensive legal framework for crypto-assets, designed to bring consistency, consumer protection and financial stability to the crypto sector – it is still a novel regulation and national practices differ.  

“It should be analysed under other target market jurisdictions whether all necessary requirements have been met,” says Reiland. In practice, he says, “the key question isn’t whether to use crypto but whether the operators know how to apply the highest standards of AML, KYC, enhanced due diligence etc under self-regulation principles”. 

In his blog post Heath echoed this pragmatism, arguing that Estonia’s openness “aligns with MiCA and EU best practice”. The integration of blockchain analytics tools such as Chainalysis, he suggests, allows for “real-time tracing and risk-scoring of crypto transactions,” thus enhancing transparency rather than undermining it. 

Crypto casinos, which are largely unlicensed or illegal across most European markets, are gaining rapid popularity among younger players. Last month Yolo announced it would be leaning entirely into regulated markets, and in another blog post Heath said he believed crypto was becoming “mainstream”.

Predictability and digital expertise 

Some in the industry remain cautious of Estonia’s new gambling bill and point to last year’s short-lived proposal to raise gambling taxes as a sign of political volatility. But Reiland dismisses this concern. 

“Estonia has had a very stable regulatory framework for a long time,” he insists. “The only real changes have come in the past couple of years, largely because different interests were competing over how to modernise the system. Right now if the bill is passed, the expectation is that the framework will remain generally stable for many years and the likelihood of a reversed course is very low in my eyes.” 

That sense of predictability – combined with Estonia’s digital expertise – could be decisive in drawing operators who are increasingly weary of the administrative burdens in older licensing hubs. The draft bill also introduces modest reforms to responsible-gambling measures, including expansion of the Estonia´s self-exclusion register, HAMPI. 

“There were different ideas floating on the self-exclusion list amendments but right now the latest parliamentary bill seems to be quite conservative,” Reiland notes. “It is my view still that probably the HAMPI regulation will be overhauled pretty soon since the existing system has been in place for quite some time.” 

Heath, meanwhile, highlighted this as one of the most important improvements, arguing that the reforms “lay the foundation for a safer, fairer environment – one where players can simply enjoy the thrill of the game, confident that they’re spinning in a trusted, regulated space”. 

Estonia’s new gambling bill a blueprint for Europe? 

If Estonia succeeds, could its model influence EU-wide discussions on digital gambling regulation? Reiland is cautiously optimistic. “Hopefully, if Estonia’s system proves effective, it could serve as a model for EU discussions rather than an outlier,” he says.  

“The underlying logic is not to prohibit or overregulate, but to use IT systems and secure information exchange to support legitimate business while maintaining continuous oversight.” 

Marriage of innovation and integrity could pay off 

For now, Estonia’s new gambling bill’s parliamentary journey continues. “It might be expected that after this bill has been adopted, the Ministry of Finance might also present a bill covering the remaining issues,” Reiland says – mentioning future clarification on crypto and the HAMPI system as likely priorities. “No seismic changes are to be expected.” 

As Heath of Yolo Group put it: “What Estonia is proposing right now could become a blueprint for how small, smart countries lead global industries – by marrying innovation with integrity.” And with legal experts like Reiland pointing to stability, efficiency and credibility as the cornerstones of the new framework, Estonia’s gamble on innovation might just pay off. 

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

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

Marantelli’s wagering pedigree

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

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

Edge in exchanges

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

Scoop 6

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

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

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

Player to product

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

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

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

White Swan a further pursuit of wagering edge

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

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

Texas Showdown

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

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

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

iBankroll

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

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

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

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

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

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

Power of the network

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

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

Pitch Waterhouse VC

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

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

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

This week’s revelation that Playtech commissioned a secret and seemingly invasive investigation into Evolution proves that competition among games developers has reached a tipping point.  

 “We are seeing an upward trend in IP disputes because people see huge value in this space. There is a lot to fight over,” says Joel Vertes, partner and co-head of Intellectual Property at CMS in London. 

His team, which is one of the largest IP practices in Europe, regularly deals with disputes involving game developers, platforms and even individuals accused of IP infringements or misappropriation of trade secrets. Vertes highlights the rapid expansion, advanced technology and vast variety as key drivers. “The gaming sector as a whole has just exploded in the last 10 years,” he adds.  

How the Spribe/Aviator case broke new ground 

One case in particular crystallises how IP disputes manifest in the sector. It is the recent high-profile legal battle between the two game developers Spribe and Aviator LLC, which involves Spribe’s award-winning crash game Aviator. 

The dispute started in Georgia last year, in a case that resulted in Spribe being found to have registered Aviator LLC’s trademarks in bad faith. This year the dispute resurfaced in a UK High Court, and in August Spribe won a UK injunction against Aviator LLC, blocking it from producing a copycat crash game and the use of Spribe’s trademarks. 

Although Aviator filed for permission to appeal in the Court of Appeal on 11 September, the application was abandoned on 8 October, and the court dismissed it the same day, having criticised Aviator’s conduct as “petulant”.

The case highlights the UK’s strong enforcement of IP rights. Proceedings regarding the same case are ongoing in other jurisdictions, including the EUIPO. The UK trial is expected to be heard in either 2027 or 2028.  

Protecting IP is challenging 

Vertes underscores the importance of interim injunctions in IP disputes: “Even though temporary, they can be decisive. If granted, the defendant is blocked from acting and many disputes settle shortly after.” 

He explains that in Europe, game mechanics are difficult to protect directly. “Generally, you’re looking at a bundle of rights. So, you’re looking at the brand, and you’re looking at underlying copyright in the source code,” Vertes says. The “general look and feel” of a game, along with registered design rights over graphical user interfaces, have become key IP battlegrounds. 

“The work we’re doing a lot of at the moment is in design rights,” he adds, pointing to how in the UK and Europe, design protection offers a whole new angle to fight over. The increasing speed of game development cycles – accelerated further by AI technology capable of generating code and imagery rapidly – adds urgency to IP vigilance. 

Richard Williams, IP lawyer at Keystone Law in London, emphasises the strategic importance of brand and trademark protection in gaming: “Clearance is a critical step. If you don’t check, you might be blocked from a market or subject to costly litigation.” 

An example of this is the backstory to the dispute between Spribe and Aviator LLC. In its Georgia case Aviator LLC claimed the rights to the name and logo created in 2017.

Williams stresses that smaller markets can still have a huge impact. “This insight reveals how early trademark clearance – often overlooked – can make or break international expansion.” 

IP disputes are being weaponised 

In Europe, legal frameworks around IP protection are more uniform than in many regions, but still complex. Vertes advises that those involved in the industry must become “IP-savvy quite quickly,” ensuring their names, designs and coding practices do not infringe on others’ rights. 

There is agreement among experts to whom iGB has spoken that IP cases are being weaponised in a competitive market. “Obviously, even if the IP dispute isn’t successful, it’s a good way of trying to keep competitors out of the market for as long as possible,” says Richard Williams. 

Joel Vertes agrees that it does happen: “I don’t see any reason why you shouldn’t weaponise your IP. If you’ve filed a patent over some mechanics in a game, or you’ve registered designs over the graphic user interface, why would you not go out and enforce it?” In the end, it is all about upholding brand and technology exclusivity in a highly competitive environment.

“It’s not about squishing small companies from entering the market – they’re perfectly entitled to compete. But that doesn’t mean they’re entitled to step on others’ toes to do it.” 

Across the Atlantic is a different picture 

Across the Atlantic, the situation is notably different, as the US is largely shaped by distinct legal doctrines and litigation cultures. Steven Caloiaro, an intellectual property litigator at the Reno office of Dickinson Wright, offers a contrasting perspective. 

Caloiaro observes that patent litigation in the US gaming sector has actually declined over the last decade. He attributes this to pivotal Supreme Court decisions like Bilski vs Kappos in 2010 which narrowed patent eligibility for software innovations.  

“Bilski made it very difficult to successfully litigate software-related patent cases,” Caloiaro explains. Since many iGaming innovations revolve around software – such as progressive jackpots, reward systems and bonus mechanics – the impact has been significant, he explains. 

“For the established gaming community, litigation has been down – specifically in the iGaming sector.” 

Instead, the rising trend in the US is “softer IP” disputes covering trademarks, trade dress and trade secrets, as evidenced in recent cases like Light & Wonder vs Aristocrat. In that case, a game designer’s movement between companies raised trade secret concerns—a classic scenario in the tight knit industry.

Non-compete enforcement has also increased in the US as companies seek to indirectly protect IP by limiting employee mobility. Caloiaro notes: “Non-competes can serve as a workaround to protect IP.” Despite challenges from the Federal Trade Commission, gaming companies have actively sought to enforce these clauses, he says. 

Fundamental distinctions between Europe and the US

When it comes to enforcement remedies, Caloiaro contrasts the US and Europe: “In the UK or EU, if you win, you’ll almost certainly get an injunction. In the US, it’s not guaranteed, which can reduce the value of a win if you’re trying to keep a competitor off the market.”  

Moreover, damages awarded in US courts tend to be significantly higher, but litigation is also more costly and carries higher risk since parties usually bear their own legal fees regardless of the outcome. 

Outlining other fundamental distinctions between European and US IP enforcement, Vertes says the biggest difference is the size of damages. “US claims can be worth far more than European ones. So if you’re chasing a big monetary win, the US is [more] attractive,” he explains.  

Vertes also points out the value of “design rights” in Europe, a somewhat underutilised protection in the US, where trade secrets and trademarks dominate the softer IP landscape. The Aviator injunction highlights how UK courts actively protect registered trademarks and associated branding.  

By contrast, Caloiaro notes that US patent law’s challenges in protecting software-based innovations tend to reduce patent suits but encourage a focus on trade dress – the visual appearance of a product – and trade secret claims.  

AI’s rise complicates the IP picture on both sides of the Atlantic. Caloiaro agrees that AI lowers barriers to entry and blurs lines between inspiration and infringement, although US patent offices require a human inventor, limiting AI-generated patent claims. 

Best practices moving forward

Both European and US experts emphasise proactive IP management. Vertes urges companies to “choose a name, make sure you’ve cleared it, that you’re not infringing on others”.  

“Talk to your developers. Make sure they’re not just going online and scraping or copying. There’s no rule that says if you make five changes from a copyright work, it’s suddenly okay. It doesn’t work like that,” he says.

Caloiaro stresses the importance of understanding the different IP types – trademarks, copyrights, patents – and filing registrations and documentation accordingly.  Both lawyers are in agreement that, in today’s fiercely competitive and fast-moving iGaming market, a sophisticated IP strategy is essential for any company to survive. 

The acquisition supports DraftKings’ broader strategy to enter prediction markets, while expanding its addressable opportunity through regulated event contracts, the company noted in Tuesday’s statement. As part of the announcement, the company confirmed plans to launch DraftKings Predictions, an app that will enable customers to trade regulated event contracts on real-world outcomes in areas such as finance, entertainment and pop culture. Other product details, however, remain uncertain.

For instance, the announcement shed little insight on whether or when DraftKings will consider a potential addition of sports event contracts. The company did not address whether it will offer those contracts on a limited basis in states without legal sports wagering, nor did DraftKings answer if it will set limits for certain contracts, a critical question for high-worth customers who engage in price discovery.

The “offering may expand into additional categories over time, deepening customer engagement and extending DraftKings’ addressable audience”, the company wrote in the statement.

Railbird Exchange is a federally licensed exchange designated by the US Commodity Futures Trading Commission.

DraftKings playing 4-D chess with prediction market move?

Prior to Tuesday’s news release, Truist Securities analyst Barry Jonas issued an earnings preview for the third quarter of 2025. In the research note, Jonas wrote that the emergence of sports prediction markets “dominated the narrative” over the three-month period ending on 30 September. At this month’s Global Gaming Expo in Las Vegas, BetMGM and Caesars Entertainment noted that they would not pursue the launch of sports event contracts, he added.

But for FanDuel and DraftKings, the two market leaders in sports betting, there are other considerations at play when mulling the addition of the derivatives on sports. Unlike the two casino giants, the digital companies do not have a retail presence in Nevada, where the state is embroiled in litigation with Kalshi and recently issued warnings to sports betting licencees considering prediction markets.

A group of 36 states, led by Ohio Attorney General Dave Yost, filed an amicus brief over the summer urging an appellate court to side with New Jersey in a lawsuit against Kalshi. The prediction market is facing a wave of litigation on the legality of sports event contracts in states where sports betting is legal. It might explain why Flutter, the parent company of FanDuel, initially decided to focus on non-sports event contracts upon the rollout of a new prediction market.

Earlier this month, Flutter and DraftKings saw double-digit stock declines after Kalshi introduced a new same-game parlay product for sports events.

“The 4-D chess continues as digital operators continue to weigh the pros and any cons of offering predictive sports,” Jonas wrote in a 21 October note. “We remain buy-rated on both with recent share weakness likely overdone.”

Nation’s most populous states in play

Given the duo’s brand and technology leadership, Jonas still expects DraftKings and FanDuel to be long-term winners in the wider space. Jordan Bender, an analyst with Citizens JMP, told iGB Tuesday that product and technological innovations will likely be the “key ingredients” in the battle to win customers.

If the companies begin to offer sports event contracts, they will enter a crowded space with the likes of Kalshi, Robinhood and Crypto.com. One option for the operators could be to launch sports event contracts in the 11 states that have yet to legalise sports betting. Those include the two largest, California and Texas, which have more than 70 million residents combined.

“You’re essentially adding 50% of the population overnight,” Bender told iGB, referring to non-legal states.

Without mentioning any states by name, DraftKings CEO Jason Robins suggested last month that the total addressable market for sports derivatives in those jurisdictions could be “very significant”.

The rise of prediction markets has created a fierce turf war over regulations for sports derivative products. This spring, MGM Resorts CEO Bill Hornbuckle opined that the derivatives could be the “concrete” that enables the federal government to intervene in the gambling industry.

Stock moves following Railbird acquisition

Following the announcement, DraftKings surged 6% in Tuesday’s after-hours session to $36 a share. Before Tuesday’s news, DraftKings fell approximately 25% over the prior 30 days due primarily to prediction market concerns. Jonas reiterated a $50 price target and a “buy” rating on DraftKings.

Chris Krafcik, managing director of Eilers & Krejcik, wrote on LinkedIn that the acquisition of Railbird buys the company and its stock a bit of “breathing room” amid a punishing, narrative-driven hype cycle.

Sullivan & Cromwell LLP served as legal counsel to DraftKings. Moelis & Company LLC served as financial advisor to Railbird. Miles Saffran, Railbird CEO, described the announcement as a “transformational moment” for the company. Proskauer Rose LLP and Kirkland & Ellis LLP served as legal counsel to Railbird.

The companies engaged in negotiations over the summer, according to Front Office Sports. Terms of the deal were not disclosed.

Yet, the revenue being generated through the “proliferation” of betting houses in the southern African nation was not flowing directly into the treasury, as punters’ winnings were untaxed. To formalise the industry and help boost revenue collection to meet “pressing budget needs”, he introduced the 10% withholding tax on gross sports betting winnings, one of only four taxes that he announced on that day.  

The tax, which came into force on 1 January, applies to winnings at all local betting shops and via online platforms operated by land-based bookmakers.

The Herald, a local daily, reported on 13 March that Zimbabwe’s gambling industry had generated about $120 million in revenue in 2023, with the online segment contributing $45 million.  

Ncube previously projected the economy could collect up to $15 million annually via the punters’ tax, based on his forecast of $150 million gross winnings in 2025. He said about 300,000 locals engaged in online betting in 2024, up 15% on the prior year, with 60% of bettors being between 18 and 35 years old.

“This growth has been fuelled by rising internet penetration and the accessibility of smartphones, with over 5.2 million devices in use nationwide,” the paper wrote.

Zimbabwe withholding tax will prove costly for operators

To comply with the new tax collection system, Marvellous Tapera, the founder and managing partner of WTS Tax Matrix, a leading Zimbabwean tax consultancy, said bookmakers were required to set up or upgrade their transaction and reporting systems to automatically calculate and withhold the 10% levy on all winning payouts across points of sale and online wallets.

“They also had to enhance accounting and reconciliation workflows to produce accurate monthly returns for ZIMRA (Zimbabwe Revenue Authority), train staff on tax procedures and customer communications, improve cash management and banking for timely remittances, and often consult tax or legal experts to ensure full compliance,” he tells iGB.

“Although feasible, these changes were operationally demanding and particularly costly for smaller operators, requiring significant time and financial resources,” Tapera adds.

Citing an anonymous operator, The Herald’s article reported Zimbabwe’s withholding tax would require a system upgrade costing up to $50,000 per platform. This is in addition to the $20,000 the average bookmaker spends on tax reporting yearly.

Tapera observes the betting tax’s flat structure raises fairness concerns. In its current form, he argues, the tax “is socially regressive” as it affects low-income and casual bettors compared to wealthier participants. It has the potential to squeeze operators’ profit margins and cause them to adjust odds to make up the losses.

“Applying a uniform 10% withholding tax without any exemption is regressive in a low-income economy like Zimbabwe’s, as it risks burdening poorer bettors and driving gambling activity to unregulated platforms,” Tapera adds.

He advises the government to adopt a more nuanced structure like the one proposed in South Africa, which is based on the amount and frequency of players’ winnings.

What can Zimbabwe learn from other African markets?

“South Africa’s model – a 15% withholding tax applied only to winnings above R25,000 – demonstrates how such a safeguard can protect casual players, and Zimbabwe would benefit from implementing a similar threshold or accompanying social protection measures,” Tapera suggests.

“Introducing a minimum exemption threshold or adopting a more progressive structure would make the system fairer while still capturing significant revenue from larger winnings.”

In a release on 5 September, Stats SA, South Africa’s national data agency, said the gambling sector generated $3.4 billion in GGR during the 2023-24 financial year. The latest figures from the National Gambling Board (NGB) in October reported an increase to $4.3 billion for the financial year 2024-25.

South Africa’s government announced the proposal to introduce a tax on winnings in 2011, with the aim being to start collecting it in the following year. The levy targets professional or regular bettors, while seeking to exclude casual punters.  

However, according to Deloitte, the government had not yet implemented the tax in February, due to staunch opposition from the local industry. 

Withholding tax must account for inflation

“The current economic climate, characterised by high unemployment and cost of living, calls for a balance between revenue generation and social protection,” the consultancy said in a 10 February note.

“A withholding tax on individual winnings may provide this balance if carefully structured. The minimum value for taxation should be reconsidered, taking into account inflation over the last 13 years since the first proposal. This will ensure that those gambling to supplement their low income are kept out of this tax net and do not turn to illegal gambling activities, which are completely out of SARS’ (South African Revenue Service) grasp,” the note said

In October, the Kenyan government similarly introduced a 5% withdrawal tax to replace its previous 20% tax on net winnings. It expects to collect about $74 million in the 2025-26 fiscal year, more than double the $35 million it collected previously.

Rapidly growing mobile penetration leaving land-based betting behind

Commenting on the new Kenyan model, Parliament’s “The Budget Watch 2025” document said a blanket tax rate could discourage casual participants and push actors from regulated platforms to offshore ones.

An official at one of Zimbabwe’s largest land-based operators expresses a similar concern to iGB. Speaking off the record, he says the withholding tax came into effect at a time when a large number of local punters is increasingly switching to unregulated and offshore operators.

“One now needs a mobile phone, a computer and an internet connection to start betting online,” he says.

“Some workers have been disciplined by their employers for participating in online gaming and betting using their employers’ computers and internet. And this [is on] platforms not subject to local regulations, including the new tax. 

“There are some people who used to visit brick-and-mortar branches who are now not doing so as frequently. [Zimbabwe’s witholding] tax will hasten the traffic to online platforms, leaving physical betting halls empty or for the few that don’t have smartphones and mobile data, and the old, technologically less-experienced ones.”

The Postal and Regulatory Authority of Zimbabwe said in its latest quarterly report in October that the nation’s mobile penetration rose from 101.39% in the first quarter of 2025 to 102.64% in the second.  The internet penetration also jumped from 76.19% in March, to 81.83% by June.

The newly combined business is valued at around €16 billion. In an era when European gambling operators are scrambling to keep pace with regulatory changes, technological disruption and the need for scale, this deal could be seen as both a defensive manoeuvre and a bold strike forward.

Although anticipated – Allwyn first invested in OPAP in 2013 – the full buyout marks a watershed moment not only for the companies involved but for the European gambling sector as a whole.

As Ben Robinson, an M&A advisor at Corfai Capital, puts it: “This is a mega-deal in a sector that has historically been sleepy. Allwyn is proving that a lottery company can act like a high-growth tech firm.”

The deal transforms Allwyn, which changed its legal status to a Swiss-based entity in October 2024, from a regional lottery operator into a vertically integrated, multi-product juggernaut with operations across Europe and ambitions to conquer the US.

It becomes the second-largest listed gaming group globally with pro forma EBITDA of €1.9 billion amid double-digit growth. It trails only Flutter Entertainment, whose 2025 EBITDA is projected at around $3.3 billion.

A decade-long courtship

Allwyn’s relationship with OPAP spans over a decade. The group, formerly known as Sazka, took an initial stake in 2013 and gradually deepened its involvement before increasing its stake in OPAP to 48.1% in 2022. This full acquisition is not a shotgun marriage but, as Robinson called it, “a decade-long courtship” during which Allwyn dissected OPAP’s business and built a shared technology roadmap.

Ed Birkin of H2 Gambling Capital frames the move as a natural evolution rather than a surprise. “They already owned 52% of OPAP, so acquiring the remaining 48% isn’t something that is overly surprising or unusual,” he says.

What matters is not the transaction itself but what it enables: a strategic leap forward. Birkin notes: “This is the logical next step in the transformation of Allwyn from a Czech lottery operator to a truly global powerhouse in the gambling sector.”

One brand, one tech, one team

At a joint presentation held between Allwyn and OPAP’s exec teams on 12 October Allwyn CEO Robert Chvátal framed the takeover as a milestone in the group’s journey.

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

OPAP’s CEO Jan Karas echoed that ambition, adding the new deal was a springboard for innovation. “This exciting combination creates a leading gaming company with strong Greek heritage, as well as a continued presence and listing in Greece,” he said.

“Building the portfolio of attractive games that customers appreciate and bringing innovations is something that we leverage not only from best practices but also practical solutions.”

He also highlighted plans to adopt AI processes across multiple disciplines, noting: “Adopting AI for us is going to happen across multiple disciplines, ranging from customer solutions to platforms and internal productivity.”

The emphasis, according to both executives, is on operational integration: “one brand, one tech, one team.”

Financial appeal for OPAP investors

The detail around tech integration caught Robinson’s attention – particularly Allwyn’s plan to roll out in-house AI and data analytics platforms across OPAP’s retail operations.

This, he says, could potentially edge out longtime technology partners like Intralot and give Allwyn tighter control over its customer engagement and operational costs.

For OPAP shareholders, it’s not just a change of ownership but a change of trajectory. Robinson points to the dividend yield as a key part of the financial appeal.

“Management promised a minimum €1/share from FY 2026. With OPAP shares trading around €18.7 and a current dividend yield of ~7.6%, this implies a forward yield of about 5% – higher than many US blue-chip dividends,” he explains.

Global listing part of Allwyn‘s global transformation

Allwyn’s takeover of OPAP exemplifies a wider trend of consolidation in the gambling sector, driven by tighter regulations and challenging market economics. Across Europe and beyond, operators are seeking scale and diversification to maintain competitive advantage.

“It’s a smart piece of finance,” says Paul Richardson, an M&A specialist at Partis Solutions. “It ticks a lot of boxes for what they want, which is a listing for Allwyn and then the ability to do bigger and better things in other markets.”

A public listing in Athens gives Allwyn the liquidity and equity currency to pursue more deals, with a possible secondary listing elsewhere on the horizon. During the presentation, Allwyn said it would look to New York or London for its second listing.

Richardson estimates a six‑ to nine‑month window for a US listing, but points out that first the group must prove that the business is well-executed and actually achieving the promised benefits before attempting an IPO abroad.

Strengthening OPAP’s position

The deal also strengthens OPAP’s position, says Birkin. “With the market consolidating to a number of large, global operators, being part of this is going to position them better for the future than being a standalone single market leader.”

But he believes the actual acquisition of the remaining 48% of OPAP is “pretty irrelevant” in a European or global context.

“I wouldn’t compare this to past deals [of similar size] such as Bwin and PartyGaming, Ladbrokes and Coral, Ladbrokes Coral and GVC, Paddy Power and Betfair – all of those were pretty transformational deals for the industry at the time,” says Birkin.

“For Allwyn, the key part here is that, on the back of its acquisitions of Novibet and PrizePicks, and the other M&A it’s done in recent years, to consolidate the extra earnings from OPAP combined with the public listing, this now really puts them on the map as a global powerhouse,” he adds.

But Robinson does believe that Allwyn´s takeover of OPAP could affect the European market and may force Europe’s state lotteries to either privatise or partner up.

“The line between public lotteries and private bookmakers is blurring. Expect a more competitive, tech-driven European market.”

He compared the deal with France’s FDJ acquisition of Kindred for €2.45 billion in terms of expanding beyond its domestic market, and DraftKings’ $750 million acquisition of digital-lottery courier Jackpocket.

Legal obstacles

If the industry is moving towards scale and diversification, Allwyn wants to lead the charge. The strategy is to position itself as a 360-degree gaming and entertainment platform, combining national lottery licences with sports betting, fantasy and casino offerings.

“By controlling national lotteries, Allwyn secures a wide moat and an easy marketing journey,” says Robinson. “By adding high-growth verticals, it chases Flutter-like multiples.”

PrizePicks, Allwyn’s recent US-focused acquisition, which enters the group into fantasy sports, is part of that ambition – although is not without legal obstacles. The company ceased paid contests in New York because of regulatory issues and paid a $15 million fine. It is also facing a class-action lawsuit in Massachusetts.

Robinson notes: “While the acquisition is a catalyst, Allwyn must navigate legal headwinds before touting PrizePicks to US investors.”

But the stakes are rising. A New York listing is being explored, although the group previously stumbled in the US in an abandoned SPAC attempt to become listed on the NYSE.

That was back in 2022 when it struck a deal with Cohn Robbins Holdings Corp. The reverse merger was cancelled later that year, as both sides cited unfavourable market conditions. A traditional IPO is more likely today, particularly given the equity value of the €16 billion OPAP deal and its recent foothold in US fantasy sports.

Debt is manageble

The group’s potential global reach, vertical integration and AI capability positions it well for expansion but execution remains the hardest part. Integrating technology stacks, aligning regulatory frameworks and blending corporate cultures are all challenges that must be addressed, industry observers have said.

Debt is manageable for now: pro forma net leverage is around 2.7x EBITDA, with a target of 2.5x. CEO Chvátal reassured investors during the deal presentation that “the secondary listing in Athens will not involve new equity issuance” and that free float – the amount of stock available to the public – will stay about the same.

More takeover deals and buyouts may follow in Allwyn´s quest for domination. As Richardson admits, “I expect Allwyn to carry on doing M&A.”

With OPAP under full control, Allwyn has the scale, story and strategy to compete on the world stage. Now it must deliver.

The company’s $2.3 billion plan to renovate and expand its Empire City racino in Yonkers was long considered to be a favourite for one of the three available licences. But the perceived economic return from the project, MGM said, declined over the course of the process to the extent that it warranted withdrawal.

Now, only three applicants remain in contention, all of whom submitted revised bids to the state this week:

• Bally’s Bronx
• Metropolitan Park
• Resorts World NYC

Bally’s projected construction cost is $4 billion, followed by $5.5 billion for Resorts World and $8 billion for Metropolitan Park. Resorts World, like MGM, is an existing racino and proposes an initial casino launch in July 2026. The other two are greenfield projects that would take multiple years to build and longer to reach profitability.

There is no timeline in Bally’s submission and Metropolitan Park only notes that construction would begin in January.

The state’s Gaming Facility Location Board (GFLB) is tasked with reviewing the remaining bids under various financial, environmental and workforce criteria. Its deadline to submit licensure recommendations to the state is 1 December. State regulators may then choose to award up to three licences by year’s end.

MGM bid underwhelming from the start?

With a July 2027 opening date, MGM’s bid was the second-fastest in terms of speed to market but featured few other standout details when compared to the field. The proposal did not include a resort hotel, public park spaces, housing commitments or similar benefits featured in other projects.

The New York casino consideration process once included 11 downstate proposals, and MGM sat lowest of all in terms of confirmed capital investment. A casino atop the Saks Fifth Avenue retail store in Manhattan might have been lower in terms of cost, but those stakeholders never announced concrete details and didn’t submit an official bid.

The pool was whittled down to eight after a first-round deadline in late June. Of those eight, MGM was the only bidder that did not make a presentation to its appointed community advisory committee (CAC) during its initial meeting.

Despite this, the project had solid backing and was squarely in contention at the time of withdrawal. The CAC approved the bid unanimously and both MGM and local officials adopted the messaging that the property needed a commercial licence for survival.

MGM said so in its own application materials and sent dozens of employees to testify in support of the project to the CAC. James Cavanaugh, the chair of the committee, said that the “aging slot parlour” would “wither and die” without a full licence. Yonkers Mayor Mike Spano lobbied for the project for years. But instead of revising its application and proposing a custom tax rate, MGM pulled out altogether.

The company said the “newly defined competitive landscape – with four proposals clustered in a small geographic area” – was cause for concern investment-wise. Its bid was also “predicated on the receipt of a 30-year commercial casino licence” rather than 15 years, which is what it qualified for based on capital expenditures.

Northfield Park sale announced days after New York exit

Two days after the New York announcement, MGM made more racino news by selling the operations of MGM Northfield Park in Ohio for $546 million to private equity firm Clairvest Group. MGM originally acquired the racino’s operations for approximately $275 million in 2019, the same year it purchased Empire City.

CEO Bill Hornbuckle said in a statement that Northfield Park is “a great property with great opportunity ahead”. Yet he also asserted that his company is “focused on growing our digital business, developing our international expansion opportunities and continuing to invest in our leading integrated resorts domestically”.

This seems to be further indication that MGM could also sell Empire City in the near future, but its statement announcing the New York casino exit denied such intentions.

“We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities,” the company said.

On condition of anonymity, multiple industry sources indicated to iGB that MGM still has time to make a decision. It would be a few years before the downstate licensees really start to compete, sources said, and the property should still perform well in the meantime.

Empire City generated $607.4 million in net win, or hold, in fiscal year 2025 (April-March). The property is slightly ahead of that pace in FY26, generating $311.7 million in the first six months of this fiscal year.

Withdrawals highlight ongoing issues in NYC casino process

MGM was the third major casino operator to voluntarily withdraw from consideration in 2025, joining Wynn Resorts and Las Vegas Sands. The withdrawals all cited different reasons for their exits and each of those reasons would still ostensibly impact any bids that reach fruition.

Sands was the first to exit the race in April. Its primary concern was “the impact of the potential legalisation of iGaming on the overall market opportunity and project returns”. New York legislators have rejected multiple attempts to legalise iGaming but it could gain traction in future years, especially after the downstate licensing process is complete. The state faces a $34 billion cumulative budget gap over the next three fiscal years and could turn to iGaming to help drive tax revenue.

Wynn was next to drop out, in May, citing bad politics related to the rezoning process. It ultimately saw downstate New York to be “an area in which we, or any casino operator, will face years of persistent opposition despite our willingness to employ 5,000 New Yorkers”.

Not alone in political controversy

Both Bally’s and Metropolitan Park have also seen political controversy.

New York City Mayor Eric Adams assisted the Bally’s bid twice in city council, vetoing one vote and lowering the threshold for another. Metropolitan Park owner Steve Cohen sidestepped local Senator Jessica Ramos in favour of Senator John Liu after Ramos refused to endorse its zoning legislation.

MGM’s competition concerns would also still apply to the remaining applicants. All three are within 30 miles of each other.

In a statement following the Tuesday bid deadline, Bally’s told iGB it was “ready and willing to bet on the Bronx”. Resorts World in a release said its proposal was “a promise kept to the people of New York”. Metropolitan Park’s casino partner, Hard Rock International, declined to comment on its bid.

Casino bidders prepare balance sheets, lenders weigh risks

The remaining applicants face uncertainty related to building costs and timelines. From a macroeconomic perspective, rising tariffs, sticky inflation and slow job growth could significantly affect new construction. Bidders must also have the ability to fund or finance such projects, which is no small task for three companies with multiple projects ongoing.

Bally’s, above all, has faced skepticism over its leveraged business model, although the company said its recent reverse-merger with Intralot provided it with “more than $1 billion of cash and available credit facilities ready to commit to the project”. In addition to its interest in New York, Bally’s is building large-scale projects in Chicago and Las Vegas.

Its lenders for the Chicago project are pushing back on Bally’s attempts to modify certain aspects of its $1.9 billion loan term, which could be a sign that its constant debt manoeuvring is running out of room. To this point, the company facilitated much of its growth through financing from Gaming and Leisure Properties (GLPI). Bally’s revised New York casino application said it had a “$2.5 billion investment commitment” from GLPI.

GLPI’s senior vice president of corporate strategy, Carlo Santarelli, clarified to iGB that “there are rarely formal negotiations between the parties nor is anything agreed upon” when including such statements in applications. The company will await the final licensing outcome before making any commitments, he said.

Santarelli added that GLPI “would be willing to work with other bidders and was in fact working with other bidders, whose projects did not advance to this stage of the process”.

Costs, timelines likely to rise amid economic turmoil

Resorts World parent company Genting Berhad has also been aggressive in rejigging its balance sheet this year. It sold its Resorts World Catskills property to Sullivan County in a complex transaction and is in the middle of a $6.8 billion expansion of its flagship Resorts World Sentosa resort in Singapore. The broader Genting is pushing to buy out its Genting Malaysia subsidiary for $1.6 billion, in efforts to better facilitate these growth plans.

Metropolitan Park is perhaps the safest economically despite the high price, as owner Steve Cohen is listed by Forbes as the 100th-richest person in the world, with a net worth of $23 billion.

Duane Bouligny, managing director for Wells Fargo Securities, said that current downstate New York casino projections are “aggressive”. But every lending opportunity is itself a gamble, he said, and banks must have faith in operators’ ability to execute.

‘What we’ve found is that the properties actually get there, it just takes longer to get to those cash flow numbers in their projections.’

“So it’s not year one, might not be year two, it might be year four, year five … it takes time to get there,” Bouligny said. “So we have to have faith from a balance sheet perspective that they’re going to get there at some point.”

His belief is that costs will “go up, not down” based on the current economic landscape.

Battle of New York casino tax rates, licence fees

Another major component for the remaining applicants will be tax rates. The state allowed bidders to pitch their own, with a minimum of 25% for slot revenue and 10% for other gaming.

According to materials posted to the GFLB website, the three bidders proposed the following rates:

• Bally’s Bronx: 30% for slots, 10% for tables
• Metropolitan Park: 25% for slots, 10% for tables
• Resorts World NYC: 56% for slots, 30% for tables

The downstate licence fee was set at a minimum of $500 million but bidders were free to offer more. Metropolitan Park offered $500 million, Resorts World offered $600 million and Bally’s did not indicate a fee preference. As MGM noted, bidders learned in August – after official submissions were due – that licence lengths also would depend on capital investments.

The structure is:

• Total investments under $1.5 billion get a 10-year initial licence
• Investments between $1.5 billion and $5 billion get a 15-year initial licence
• Investments between $5 billion and $10 billion get a 20-year initial licence
• Investments above $10 billion get a 30-year initial licence

Based on cost projections for the finalists, Bally’s would qualify for a 15-year licence, whereas Metropolitan Park and Resorts World would qualify for 20-year terms. Only two downstate proposals – Wynn’s Hudson Yards bid and Soloviev Group’s Freedom Plaza – would have eclipsed the $10 billion threshold to unlock a 30-year licence, but neither is a finalist.

New York gaming regulators now in spotlight

The five-member GFLB now becomes the centre of the New York gaming universe. None of the five appointees are familiar with or have experience in gaming, although that was by design to ensure neutrality. Board Chair Vicki Been took it a step further, telling Bloomberg this summer that casinos are “nowhere I want to spend my time”.

Four of the five members were appointed to the board this year. The most recent was Cindy Estrada, who was appointed on 30 September, the same day as the CAC deadline. Only Been has served for more than one year, having been appointed in 2022.

There have been two GFLB meetings this month – the first on 8 October and then again on 15 October. The 8 October meeting ran for just 15 minutes and was largely organisational. There is no available archived audio or video from the 15 October meeting, which was scheduled for three hours.

The next meeting is set for 22 October at 2pm EDT.

At last week’s Global Gaming Expo (G2E), a trio of compliance officers made the case for why their casinos are more equipped to thwart pernicious threats of money laundering and other financial crimes. Over the last six months, the casinos have significantly revamped their compliance programmes after multiple illegal bookmakers exploited vulnerabilities in the systems to launder millions of dollars in ill-gotten gains.

In the first half of 2025 alone, the Nevada Gaming Commission reached settlements with three casinos – MGM Resorts, Resorts World Las Vegas and Wynn – to resolve charges of widespread anti-money laundering deficiencies. Since then, the companies have implemented considerable remedial measures such as extensive staff training, enhanced Know Your Customer (KYC) protocols and periodic reviews from regulators.

But one measure is conspicuously absent: adding independent anti-money laundering monitors inside the sanctioned casinos. For now, none of the casinos appear to be champing at the bit to add the proactive measure on their own.

“I hate to say everybody needs a government monitor,” said Omar Khoury, chief global compliance officer at Wynn Resorts. “Nobody wants a government monitor, but we’re doing it on our own.”

Costly measures for a casino to absorb

In May, the Nevada Gaming Commission approved a $5.5 million fine against Wynn Resorts. The settlement paled in comparison to the $8.5 million and $10.5 million fines levied against MGM Resorts and RWLV, respectively. A year ago, Wynn forfeited $130 million in a non-prosecutorial agreement with the US Justice Department to settle charges that it had conspired with numerous unlicensed money transmitting businesses worldwide.

Khoury stated that any determinations of whether to instal an independent monitor should be made on a “case-by-case” basis. In Wynn’s case, he explained that the company is engaging with a third-party auditor on an annual risk-assessment programme. Since the results are reported back to the casino’s compliance committee, Khoury views it as a hybrid approach for mitigating risk.

Barak Cohen, a former prosecutor with the US Department of Justice, agrees with Wynn’s strategy. Now a partner at Washington DC firm Perkins Coie LLP, Cohen said his firm served as an independent monitor in a major case. It does not mean that he is in favour of the measure. In many instances, monitorships are expensive and a proxy for prosecutors, he emphasised.

“If you can do it for yourself without having the government impose monitorship, then that’s fantastic – monitorships suck,” Cohen said bluntly, while drawing laughter from the audience.

Monitorship costs for a large investigation can run up to $5 million annually, according to Cohen. Moreover, such monitors might search feverishly for problems that in some cases do not exist.

It can lead to aggressive tactics from investigators who are figuratively “kicking in doors” in an attempt to find various issues, according to Cohen.

“If a company can avoid a monitorship, they should,” he told iGB.

Comparisons with the banking industry

Others view monitorship as a much-needed layer of protection for casinos under sanction. The topic of monitorship came up at the Indian Gaming Tradeshow & Convention in April. Anne Layne, senior manager at Grant Thornton, described the monitors as a “fantastic” resource for AML teams to detect real-time activity.

Independent monitoring also received support from several panellists on an AML panel at the Canadian Gaming Summit in June. In the banking industry, K&L Gates has described independent testing as one of the five pillars for AML enforcement.

Last October, TD Bank agreed to pay approximately $3 billion in a historic settlement with US authorities. In one instance, a defendant used the bank to launder roughly $470 million in drug proceeds, while bribing bank employees with some $57,000 in gift cards.

The bank’s AML programme also had “significant deficiencies” in monitoring a classification of high-risk customers, a group that includes internet gambling organisations, foreign casinos and virtual currency exchanges, according to the US Treasury Department.

Under the settlement, TD Bank agreed to appoint an independent monitor to review the bank’s AML programme for a period of four years. It marked the first time that the Treasury’s Financial Crime Enforcement Network (FinCEN) imposed an accountability review that tasked an independent monitor with evaluating such a programme.

Asked if the casino industry should adopt the same measures in AML settlements, MGM Resorts Chief Compliance Officer Stephen Martino responded that he is not familiar with the case. Martino said, however, the company feels “very positively” about its culture of compliance in response to the settlements.

Dreitzer on fines

It should be noted that none of the casinos that settled with Nevada in 2025 were accused of laundering proceeds for narcotics traffickers. In 2013, though, Las Vegas Sands forfeited $47.4 million in a settlement with the Justice Department. The settlement relates to a series of suspicious deposits made by Ye Gon, a Mexican entrepreneur with suspected ties to an international cartel.

Of the three Strip casinos ensnared in this year’s investigation, only RWLV has yet to reach a settlement with the federal government. According to Nevada regulators, RWLV failed to substantiate the sources of funds for Matt Bowyer, an illegal bookmaker who accepted $325 million in wagers from the interpreter at the time for baseball star Shohei Ohtani.

Bowyer, who pleaded guilty to laundering millions through Resorts World, began serving a 12-month prison sentence last week. Since his sentencing, Bowyer has gushed that he is the one mostly responsible for the revamped KYC standards across the Strip.

At G2E, one of the world’s largest gambling conferences, some questioned if monetary penalties are enough of a deterrent. Mike Dreitzer, the newly appointed chairman of the Nevada Gaming Control Board, addressed the matter on the opening day of the event.

“Fines make headlines, but it’s more important that licensees are acting in a corrective way,” Dreitzer said. “Certainly, we are not afraid to continue to ramp up enforcement.”

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

The tension in the room was palpable. Operators, lawyers,and regulators gathered in a large hall: 16 tables, two companies per table, with KSA staff mingling at the edges.

When the Dutch remote‑gambling market launched in 2021, licences were granted for five years. The first 10 operators – TOTO, FPO, Holland Casino, NSUS Malta, Play North, Tombola Malta, Hillside, Bingoal, Betent and LiveScore Malta would face renewal in October 2026. Both LiveScore and Tombola exited the market in 2024.

With that date approaching, speculation had grown that the KSA would tighten rules – making the relicensing process laborious and punishing. Many feared a reset, rather than a renewal, that would overwhelm even well‑established operators.

‘Past behaviour’ requirement sparks concerns among operators

The anxiety was partly caused by statements made before 1 October. The KSA chair had hinted that it would look into past behaviour when considering new and reapplications for gaming licences.

In its public announcements, KSA said: “Providers that made mistakes in the past five years must explain during the application process how they have learned from previous mistakes and how they intend to prevent recurrence. If we find this explanation insufficient, the permit may be denied or additional conditions and restrictions may be imposed.”

Bjorn Fuchs, chairman of VNLOK – the Dutch iGaming trade body – confirms that wild rumours circulated among operators prior to the meeting.

“We [thought we] were going to be punished for bad behaviour. Maybe we get five years, maybe one year, maybe we lose it altogether. These were some of the concerns,” he says.

Operators also feared that every facet of their business would be re-scrutinised. Would new demands be imposed on advertising, addiction prevention, AML and player funds? Might entire chunks of existing policy be deemed insufficient?

What came out of the operator KSA licence renewal meeting?

But after the meeting, as Fuchs recalls: “There was a sigh of relief going through the room when it was presented,” although the tension was not entirely dispelled.

Rather than a crackdown across the board, what is emerging is a more regulated renewal framework.

Fuchs summarises: “If you have a clean sheet, there are some hoops, but for various modules you can just send a declaration which states that you’re compliant.”

He emphasises the new system will make burdens less demanding than before, but the new “exit plan” requirement and sharper duty‑of‑care definitions do bring some added complexity.

Justin Franssen, a regulatory lawyer and partner at Franssen Tolboom, likewise tells iGB the KSA is not imposing extreme hurdles on existing licensees, as some had feared would be the case.

Although new measures such as more comprehensive responsible gambling policies and civil judgment compliance are being introduced, these largely build on existing structures, he explains. “The gambling authority strives to make the reapplication process as smoothly as possible,” Franssen says.

The formal session on 1 October opened with KSA addressing submitted questions across various licensing modules. A detailed programme had been circulated in advance.

Operators asked pointed questions: How much weight will prior fines carry? How is behaviour/activity abroad assessed? When does the new licence take effect relative to the old one?

Various operators and law firms pushed hard for more clarity, Fuchs said, and the KSA acknowledged that need for clarity.

Unpacking the KSA’s exit plan requirement

Most notably, all submissions must now include the aforementioned exit plan – a new obligation that applies across the board. This requirement, intended to ensure orderly market withdrawal, marks a move toward embedding long-term risk management into the licensing process.

It requires operators to describe in detail how they will responsibly wind down their operations should their licence not be renewed or be revoked. Or if they decide to leave the market midway through the five years between renewals.

In short, it is to ensure players are not left vulnerable in the event of sudden market withdrawal. This includes ensuring proper handling of player balances, communication strategies to customers, technical shutdown procedures and data retention compliance.

In another marked departure from previous practice, the breach-prevention module (overtredingspreventie) is no longer confined to new entrants. Existing licensees seeking renewal must now also submit detailed protocols on how they proactively prevent regulatory breaches.

Several modules, including those related to financial security, player fund provision and internal oversight, can now be approved through signed declarations rather than full evidence-based submissions. Should doubts arise, the KSA may demand supporting documentation.

Non-compliance with KSA licence renewal rules could end in licence revocation

Other areas are heading in the opposite direction. The Central Data Bank (CDB) module has seen a notable hardening of requirements: operators must now submit a detailed control plan, present evidence of system conformity and provide a test programme.

Meanwhile, advertising and recruitment remain documentation-heavy areas, showing little regulatory leniency amid public and political sensitivity about consumer protection and market integrity.

Background checks have also become more intrusive in the KSA licence renewal process. The reliability assessment now obliges applicants to disclose previously unreported persons – individuals who were involved with or connected to the gambling operation but were not disclosed in earlier applications – or past behaviour linked to the operation and to map out corporate and personal affiliations.

Perhaps most consequential is the now-strictly enforced clause on civil judgment compliance. Operators who have failed to comply with enforceable rulings – be they related to player winnings, losses, or data subject access requests – could have their licence revoked.

As Franssen warns: “If an operator does not comply with civil judgments, they will not get a licence. The licence can be pulled.”

Political pressure on the market

Overall, the feeling among operators is that the regulatory changes reflect a market recalibrated for oversight and accountability.

As chair of the trade organisation, Fuchs’ stance is a mix of cautious optimism and realism. In his view, many new demands are not radically burdensome.

He notes that operators may now submit declarations in many modules rather than full packages, reducing paperwork in some cases. The real burden falls on areas like exit planning and the finer detailing of duty of care.

But Fuchs worries about one big overhang for the online market: political pressure. He described how for years in the Netherlands, gambling had “no friends in politics” and was subject to opinion-driven restrictions by Christian and socialist parties.

Those parties, such as the Christian Union and SP, have steadily pushed for tighter regulations or even prohibition. The coalition politics of 2021, reliant on such parties, suppressed the fact-based dialogue and liberal push-back, Fuchs expressed. The result: increasing constraints and shrinking product flexibility for legal operators.

Deregulation in Netherlands is ‘unrealistic’

Fuchs believes a turning point came earlier in 2025, when Parliament and a government roundtable began acknowledging how large the unregulated market had become and how detrimental that is to regulation and player protection.

Anti‑gambling voices like national addiction rapporteur Arnt Schellekens – who has previously been very vocal about banning online play – have moderated, admitting that prohibition would only drive players towards the unregulated market.

“The National Rapporteur is not in favour of a gambling ban, because it would drive people into illegality,” Schellekens said recently. Fuchs thinks that outright deregulation is politically unrealistic, even if opposing parties gain influence.

Franssen accepts that new entrants to the market will face burdens – even more than in 2021 – but he doesn’t expect the KSA to place unachievable demands on existing licence holders.

He warns, however, of “overarching playing limits” in the pipeline. Currently, deposit limits are set operator‑by‑operator. A regime to enforce a limit across all operators would devastate monetisation, he said.

Overall, Franssen calls the market situation in the Netherlands “a death by a thousand cuts”. Some smaller operators, he predicts, will drop out or be consolidated.

No friends in politics – but hope

Gambling remains a topic fraught with moral questions in the Netherlands, and few parties risk openly embracing it. For the operators, the tax hikes and tightening of regulations reflect more political caution than logic.

The gaming tax, starting at 29% at market launch, has climbed to 34.2% and is expected to reach 37.8%. The media, social pressure and anti‑gambling campaigns reinforce a political narrative that gambling needs constant control, stakeholders tell iGB.

Fuchs argues that the political tide appears less venomous now, as serious attention is turning to illicit gambling growth and the limits of prohibition. Yet he is aware that “gambling has no friends in politics” – and that upcoming elections may again bring forward stricter stances rather than liberalisation.

Franssen echoes this: many of the restrictions, such as advertising bans and deposit limits, were quickly introduced after the 2021 launch in response to political backlash. Any operator considering entering the Dutch market now must weigh a difficult climate of political fragility, he explained.

Fuchs hopes that in the future, fact‑based regulation replaces stacking of new burdens. “If you keep squeezing the legal industry, people go to the illegal offering,” he adds.

Indeed, many in the sector point to the growth of the unlicensed or offshore market and remain skeptical of early KSA claims that channelisation was 80–20. He believes the illegal sector was always larger, and that recent tight regulation has driven more players outside KSA’s purview.

Still, the hope among operators is that if KSA gets relicensing right – clear, proportional, consistent – they may strengthen legitimacy and player trust in the long run and could gradually push out illegal operators.

Particularly on the brick-and-mortar side, stakeholders have long racked their brains to answer the central question: How do we facilitate synergy between digital and retail gaming?

While a range of different strategies have been deployed, the pressure to get creative is starting to mount as the rate of online revenue growth has soared far above its retail counterpart for many months.

In August, for example, four of the seven US states with legal iGaming – Michigan, New Jersey, West Virginia and Delaware – reported all-time monthly digital revenue records. All seven markets reported growth of at least 25% year-over-year for the period. Comparatively, retail casino revenue across the entire US grew 2.5% YoY through the first seven months of 2025, per the American Gaming Association.

By now, many retail companies have made their omnichannel stances known. Casino-centric operators such as Wynn Resorts, Churchill Downs, Monarch Casino and, most recently, Las Vegas Sands, have curtailed, avoided or abandoned online growth efforts. The National Association Against iGaming, an organisation opposed to digital expansion composed mainly of smaller casinos and labor unions, debuted in February and has grown in membership.

Meanwhile, other legacy operators like MGM Resorts are embracing the challenge and trying new splashy investments. All the while, the supplier sector is working to facilitate the technology needed for omnichannel gaming growth, in whatever form that might take.

Asked where his company stands on a scale of 1-10 in terms of investing in omnichannel gaming, Aristocrat chief product officer Matt Primmer said, “It’s probably not that myopic.”

“But we’re definitely towards the end of investing in it,” Primmer said. “Alignment of tools, alignment of structures, alignment of portfolio planning and strategy, is all shifting in that direction.”

Bringing the studio to the casino floor

One such effort is taking place on the casino floor of the MGM Grand, which at roughly 171,000 square feet is among the largest on the Las Vegas Strip. Dropped into the centre of the floor is MGM’s “Live from Vegas” production studio, a high-tech glass box from which dealers broadcast live table game play to iGaming customers in 10 international, regulated markets.

During broadcasts, patrons and passersby stop and watch from outside to take in the spectacle while being unable to partake directly. Inside, the studio is like a Hollywood control room, tightly packed with broadcast equipment, switches and, of course, dealers and tables.

The outfit is a partnership involving MGM, game supplier Playtech and Fremantle, which owns the IP rights to “Family Feud”. A gambling version of the popular TV show is among the games broadcast from the studio. Others include standard table games like roulette, blackjack and baccarat.

MGM operates mobile sports betting and iGaming in the US and internationally through BetMGM, but that company is not involved in the project.

Launched in late August, the physical studio is a massive expansion of the “Live from Vegas” series, which rolled out in June 2024. That first phase saw streaming cameras placed at designated tables on the floors of MGM Grand and Bellagio, and those games are still broadcast as well. According to Vik Shrestha, vice president of online gaming at MGM, the studio is the next step in fostering that omnichannel synergy.

“We launched the studio with, let’s say, Version 1.0,” Shrestha told iGB. “So the next idea is, ‘How do we start capturing Vegas some more?’ We have these games that Playtech is known for, so we’re taking these same games into the same markets, so we have to start differentiating by tying in Vegas.”

How MGM is trying to attract guests through live studio

The Las Vegas connection and interaction with the real MGM casino floor is a focal point of the project. Most live dealer iGaming content is filmed in warehouses and nondescript office buildings, which makes it difficult to cross-market to would-be retail casino players. But Shrestha said that the live external shots and human elements are “the little engagement opportunities that are going to work for us”. 

Streaming to international players in hopes of drawing them to Las Vegas is now a critical mission, with overseas traffic down significantly in 2025. Ontario and the United Kingdom are the two biggest markets for “Live from Vegas” content, Shrestha said. The former is especially encouraging for stakeholders, as Canadian approval rating of the US and President Donald Trump is in the doldrums.

Studio workers and employees stationed nearby are equipped with talking points to help educate interested guests and start conversations.

“We’ve seen that quite a bit actually, where it’s like, ‘Oh I’m from … the UK, can I play?’ And we’re like, ‘Yes! Yes you can,'”  Shrestha said.

The same is true for domestic patrons, especially as iGaming expansion has ground to a halt in recent years. No new markets have come online since Rhode Island in mid-2023. While iGaming legalisation is unlikely in Nevada, it still allows MGM to introduce the topic in a somewhat natural way.

“I love it when you have people who can’t even play the games, because Nevada doesn’t have iGaming, of course,” Shrestha said. “But they’re checking it out, they’re watching it. Can we tap into that from an MGM Rewards perspective? There’s a lot there that we can use in terms of activations, so those are all things that we’re exploring.” 

From Sands Digital to sans digital

MGM’s bullishness contrasts with the likes of Sands, which pulled the plug last week on its short-lived Sands Digital Services (SDS) arm.

The company was among the biggest historical opponents of iGaming in the industry, largely stemming from late founder Sheldon Adelson’s disdain for the sector. SDS was not formed until 2022, a year after Adelson’s death at 87 years old.

In the relatively short time since, the company deemed that the venture was not worth the additional resources. According to the Las Vegas Review-Journal, Sands President and COO Patrick Dumont told employees in an internal letter that “further pursuit of this business was no longer aligned with the company’s core long-term objectives”.

Its core focus will remain on its land-based resorts in Macau and Singapore. Real-money iGaming is not legal in either jurisdiction.

The move came six months after the company pulled out of the New York casino race over concerns “about the impact of the potential legalisation of iGaming on the overall market opportunity and project returns”. Its proposal at the site of the Nassau Coliseum on Long Island had a projected cost of $7.6 billion, on the higher end of the field of bids.

Supplying omnichannel picks and shovels

While operators pursue various plans, suppliers are working in tandem to support those efforts. Aristocrat Gaming, the top land-based game supplier in the US by machine count, is investing heavily in its distribution capabilities to stay in lockstep with customers.

“We know that omnichannel launch is important for many of our customers, so our job is to ensure that when it’s important to them, it’s important to us, and we’re really focused on driving that capability more and more through our portfolio and ensuring that we’re the best partner we can be,” Primmer told iGB.

Last Wednesday, the company announced the acquisition of Awager, an Israel-based “provider in the fast-emerging and regulated Live Slot Streaming segment”, per a release. While Aristocrat has not commented on the deal yet, Awager’s website says its technology allows users to “experience the authentic sights, sounds and excitement of casino gaming from anywhere”.

In considering the needs of operators with varying omnichannel goals, Primmer noted that his team has to “walk that tightrope” in making their own calculations, but constant collaboration is key.

“For us, it’s about a true partnership, it’s not about us imposing our will,” Primmer said. “We think our job is to create the option to deliver across channels, whenever that right time is.”

What Gambling Commission GSGB numbers say

The 2024 GSGB shows a decline in past-year participation, from 61.5% in 2023 to 59.6%.

“Problem gambling” prevalence, defined as PGSI scores of 8+, rose slightly from 2.5% to 2.7%, while moderate-risk gambling fell from 3.7% to 3.1%. For certain groups, harms appear to be easing: the proportion of gamblers reporting severe adverse consequences declined, particularly among women, where it fell 18%.

Serious financial harm indicators dropped by nearly a quarter, and more than halved among 18–24-year-olds.

However, other harms moved in the opposite direction. Reported rates of harm to “affected others” (such as partners, families and friends), including violence and abuse, increased.

These complexities are often lost in the headline framing: the figure that has dominated media coverage is the 2.7% PGSI rate, extrapolated to imply 1.4 million “problem gamblers” in Britain.

From caution to ‘official statistics‘

Until this year, the Gambling Commission had insisted on a health warning: GSGB survey data could not be scaled up to national totals due to methodological uncertainty. That caveat has now been removed, with the regulator describing the survey as “official statistics” and encouraging licensees to use the figures in risk assessments.

Melanie Ellis, partner at Northridge Law, believes this shift was a mistake: “It was premature of the UKGC to call these ‘official statistics’ and to take away the health warning, without sufficient scientifically rigorous testing to give confidence that the data is accurate,” she says.

Ellis stresses that while the commission was right to modernise its GSGB survey methodology, it failed to pause when early results diverged drastically from NHS health survey benchmarks. “The regulator blinkered itself to the impact these figures would have on the industry,” she adds.

Gambling Commission’s GSGC ‘an almighty headache‘

Dan Waugh, partner at Regulus Partners, is even more blunt. He describes the GSGB as the regulator’s HS2, an over-budget, politically committed project that cannot be reversed even if flawed.

“The survey has uncovered a previously unheralded huge degree of gambling participation overall. … It suggests a massive unlicensed market which was not picked up in the health survey. So, either the commission has not understood the market it is regulating, or it has let rampant gambling disorder flourish,” Waugh warns.

The removal of caveats, he argues, creates “an almighty headache for DCMS” as campaigners will now lobby ministers armed with the regulator’s own statistics.

“This will absolutely feed into the discussion on tax,” he adds. “You will see intense lobbying over further ad bans. And it will effectively have the GC’s badge on it.”

Bias, capture and sunk costs

Regulus’ own analysis frames the GSGB controversy as a case study in regulatory bias and institutional inertia.

The Gambling Commission, it argues, has shown a willingness to find vindication where none exists. Researchers at the London School of Economics conducted inconclusive experiments comparing survey modes, yet these have been cited as justification for lifting safeguards.

“The willingness of the commission to find vindication where none exists smacks of a prior bias,” Waugh wrote in an analysis sent to Regulus clients. “The alacrity with which some academic researchers have abandoned previously held views may indicate the presence of ‘in-group bias’ or worse.”

The problem is compounded by selection bias and self-reporting inconsistencies. Hard industry data on actual participation often fails to align with Gambling Commission GSGB responses. Waugh suggests in his written analysis that there are three possible explanations:

1. The survey overstates gambling prevalence due to selection bias.
2. There exists a vast unlicensed market previously undetected.
3. Respondents misunderstand questions or answer inattentively.

None of these explanations, the consultant argues, inspire confidence that the GSGB can yet serve as a sound basis for policy.

Industry in denial?

Another theme emerging from Waugh’s critique is industry complacency. For years, operators have dismissed or downplayed research framing gambling as an “unhealthy commodity” akin to tobacco. By failing to engage seriously, they now face the risk of punitive tax rises and stricter controls.

“Within the next 12 months, UK Research & Innovation will start to distribute £20 million a year in levy funding, with gambling described as a ‘health-harming industry’,” Waugh notes. Without a coordinated response, the industry faces “over-taxation and over-regulation”.

Waugh suggests that operators have failed to mount a serious challenge. “The industry has just sat there and done nothing,” he says. “I can’t see that this will not negatively affect the industry.”

Black market blind spots

For Ellis, the critical missing piece is the role of unlicensed operators.

“If [the Gambling Commission] wants to assess whether player protection measures imposed on the licensed industry are effective, it urgently needs to be able to segment its GSGB data into customers using licensed and unlicensed operators,” she notes.

The commission has acknowledged this challenge but progress is slow. Without it, assessing whether regulatory interventions reduce harm risks becomes meaningless. Worse, restrictions on licensed operators may push consumers into the unregulated sphere, undermining protections altogether.

From survey to supervision

For licensees, the key issue is how the Gambling Commission GSGB will be operationalised. Commission CEO Andrew Rhodes has “strongly encouraged” firms to use GSGB data to assess risk within their customer bases.

Does this mean operators must assume that one in 10 online sports bettors are “problem gamblers,” as the GSGB suggests? If so, this would transform the expectations around customer monitoring and affordability.

Yet ambiguity persists. Ellis cautions that if the commission bases enforcement on GSGB-derived thresholds, “it must ensure that decisions are defensible and acknowledge methodological caveats”.

The politics of harm

The political consequences are already visible. The Guardian and other outlets have amplified the “1.4 million problem gamblers” figure, fuelling calls from campaigners for advertising curbs and affordability checks.

Ministers such as Culture Secretary Lisa Nandy have been attacked for not moving faster, while the Treasury eyes potential increases in Remote Gaming Duty.

For campaign groups, the GSGB is a gift: the regulator’s own data, stripped of caveats, can be used to push for prohibitionist-style measures. For operators, the risk is being judged and punished on contested statistics.

An unstable foundation

The GSGB represents a landmark for UK gambling regulation: a home-grown survey, positioned as the definitive evidence base. But critics warn it has an unstable foundation and is vulnerable to bias, misinterpretation and political misuse.

For Ellis, the task is ensuring accuracy and distinguishing between licensed and unlicensed activity. For Waugh and Regulus, the concern is deeper: that the commission has locked itself into a flawed survey, driven by sunk costs and institutional bias and, in doing so, has unleashed a wave of political and fiscal risks for the sector.

What seems certain is that the GSGB will dominate the debate for years to come. The challenge for the industry is not to deny its existence, but to engage critically, demand transparency and prepare for a regulatory environment shaped by numbers that – for better or worse – now carry the imprimatur of “official statistics”.

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.

Key points:

• Gambling with cryptocurrency is no longer available according to Normative Ordinance No 615/2024. 
• H2GC pointed out that crypto gambling in Brazil accounts for only a minor share.
• The ban is part of the Brazilian government’s broader effort to create a structured and regulated gambling market.

Although the regulation closes the door on crypto payments, it also demonstrates Brazil’s dedication to fostering transparency and upholding market integrity. What does this complex and evolving situation mean for operators and players alike?

The status quo: Crypto transactions banned

Normative Ordinance No. 615/2024 states that operators must not accept payments in the form of cryptocurrency. The ban took effect alongside the launch of Brazil’s legal iGaming market. Operators can only accept payments via electronic transfer. 

The Brazilian government is committed to establishing an era of safer online betting. With the ban on cryptocurrency in online betting transactions, the government aims to gain better control over financial flows. 

Industry experts such as Dmitry Starostenkov note that crypto transactions provide less regulatory control than fiat payments despite being traceable. The ban is part of broader efforts to combat the black market in betting.

There is also concern that banning the use of crypto in betting could drive players back to unregulated offshore sites, while some might argue that an outright ban on crypto is more effective.

Related Article:

• Understanding Brazil’s regulated betting payment methods

Has cryptocurrency affected the Brazilian iGaming market?

Prior to legalisation, some operators in Brazil used cryptocurrencies for online gambling on offshore websites, facilitating peer-to-peer (P2P) transactions that circumvented local authorities’ verification.

Alongside Brazil’s high digital penetration, the lack of a regulated iGaming framework gave rise to crypto’s prominence. Crypto casinos quickly gained popularity in Brazil between the initial legalisation of sports betting in 2018 and the final framework, Law No 14,790, in December 2023.

However, as noted in Episode 14 of our podcast, “Right to the Source”, Ed Birkin from H2 Gambling Capital mentioned that crypto is not a significant part of the Brazilian gambling market. He reinforced it by stating that only 0.7% of transactions went through crypto.

Is crypto gambling in Brazil changing the industry?

Brazil appears to be moving toward a crypto-free market. The new regulatory framework has introduced targeted enforcement mechanisms against both illegal gambling and cryptocurrency use.

For example, the Central Bank now monitors crypto exchanges to flag suspicious payments linked to unlicensed platforms. Yet, some industry voices caution that the ban could drive players back toward offshore crypto sites.

Licensed operators, by contrast, are doubling down on localisation and strict KYC measures to build trust and channel players into the regulated ecosystem – a key goal outlined in Brazil’s new licensing framework. (See our Brazil gaming licence guide for details.)

Although the ban on online gambling with crypto marks a turning point in the industry’s operational and regulatory landscape, industry figures note this is not expected to set a global precedent in the near term.

In the same episode of the “Right to the Source” podcast, Birkin estimated the true size of the global crypto gambling market at roughly $3.5 billion based on actual crypto transactions, which is well below the often-cited $81.4 billion figure.

While crypto only makes up a small slice of gambling activity in Brazil, the government’s hard line reflects a broader effort to control financial flows and tighten control over the country’s illegal betting sector.

Frequently asked questions on crypto gambling

Key points:

• Brazil bans high-risk payment methods like credit cards, cash and cryptocurrencies to protect players and reduce fraud.
• The SPA only permits electronic bank transfers through Central Bank-authorised institutions. 
• Operators must use approved gateways such as Pix and TED to remain compliant.

The use of betting payment methods: Dos and don’ts

To ensure traceable payment methods are in play, Brazil’s iGaming regulations ban the use of the following for gambling transactions:

• Credit cards
• Cash
• Cryptocurrencies
• Cheques
• Payment slips 

Since electronic bank transfers are the only acceptable way for deposits and withdrawals, it means funds must move directly between players’ registered bank accounts and operators.

Accounts for both sides must be held with financial institutions authorised by the Central Bank of Brazil. This would create a closed payment loop, strengthening oversight and reducing risk.

In view of this, the regulator (the SPA) now restricts all transactions to bank-to-bank transfers. The intention is to reduce opportunities for fraud. The rules strengthen anti-money laundering safeguards and improve financial transparency by providing a clearer framework.

Why does the SPA ban credit cards in gambling?

Credit cards remain one of the most widely used payment methods worldwide. However, when it comes to gambling, this might no longer be the case.  

Credit card gambling can lead to debt as it depends on funds that are not yet available in your wallet. Debt situations might even spiral into worse financial problems for vulnerable individuals.

Therefore, the government has banned credit cards as one of the betting payment methods to protect players from financial harm. The ban now serves as a defining measure within the new online betting framework in Brazil.

In the eyes of regulators, it is of paramount importance to build a sustainable and trustworthy iGaming market. Therefore, restricting high-risk payment methods is more than a compliance rule. 

Approved payment systems for gambling in Brazil

Since only electronic transfers via Central Bank-authorised institutions are permitted for deposits and withdrawals, the majority of gambling operators use Pix, Brazil’s instant payment service controlled by the Central Bank.

It handles 96% of transactions in the market, since it is exclusively supported by platforms for legal operations. It is also a tool for the Brazilian government to combat illegal gambling in the black market. The Central Bank has the power and systems to communicate directly with commercial banks and licensed payment providers. 

Therefore, the government has the authority to halt Pix payments to operators not licensed by the Secretariat of Prizes and Bets (SPA). Because of this, betting transfers via Pix had increased by 200% in Brazil in 2024 alone.

How to offer the right online betting payment methods

As an operator, you are required to follow strict rules on permitted transaction types, set out in Normative Ordinance SPA/MF Nº615/2024.

Players must make payments for deposits, bets, and withdrawals exclusively through electronic transfers. The permitted methods include: 

• Pix
• Transferência Eletrônica Disponível (TED)
• Debit cards or prepaid cards
• Transferencia nos próprios livros (book transfer)

All deposits and withdrawals must take place between a bettor’s registered bank account and the operator’s transactional account. In that case, it ensures every transfer runs through a regulated channel, creating a closed-loop system to strengthen oversight and reduce fraud.

Related resource:

• Learn how to meet licensing requirements and obtain a Brazil gambling licence.

Frequently Asked Questions

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.”

With the introduction of Gibraltar’s new Gambling Act 2025, the jurisdiction is embarking on a broad reform of its regulatory framework – designed to reflect the realities of a fast-evolving gaming industry in a post-Brexit landscape.

This legislative overhaul replaces the long-standing Gambling Act 2005, and aims not just to modernise but to reposition Gibraltar as a top-tier regulatory hub, after it was recently removed from the European Commission’s list of high-risk jurisdictions.

According to Victoria Reed, a regulatory consultant and founder of Better Change, the 2025 Act – effective since 1 October with a transitional period of six months – represents a “substantive and directionally aligned” leap forward.

”Gibraltar was one of the first jurisdictions to build a reputation as a credible, well-regulated hub. We’ve got a low corporate tax rate, access to skilled people and, crucially, a regulator that struck the right balance between commercial awareness and strict oversight which undoubtably helped attract many of the industry’s biggest brands,” she tells iGB.

Its close link to the UK gave operators access to the market, which cemented Gibraltar’s importance for many of the UK’s tier one players.

”After Brexit though, it lost the ability to passport licences across the EU, so its value became even more tied to its guaranteed UK market access. That shift meant Gibraltar had to double down on reputation and substance and the new act is designed to do exactly that,” says Reed

The framework, she explains, expands scope, embeds economic substance, strengthens oversight of the full value chain and maintains an active enforcement stance.

What’s included in Gibraltar’s new Gambling Act?

The new Gambling Act is comprehensive, placing new classes of businesses under supervision, introducing individual accountability for senior managers and enforcing real local economic presence.

As Andrew Lyman, head of Gibraltar’s Gambling Division, puts it: “Any gambling business now managed and controlled in or from Gibraltar potentially falls within scope.”

Key innovations within the new act include:

• Substantive presence requirements: Licensees must now demonstrate real economic substance in Gibraltar – through staff, offices, infrastructure and local tax contribution. The goal is to eliminate “brass plate” operations that offer little benefit to the jurisdiction.
• Expanded licensing perimeter: The act creates distinct licences for B2C, B2B and “Gaming operator support services”. Activities such as marketing and CRM, managed trading and software hosting now require their own approvals.
• Approved persons regime: For the first time, senior decision-makers will require personal vetting and licensing, similar to the UK’s Personal Management Licence. This enhances accountability at the individual level.
• Marketing oversight: All marketing activities conducted “in or from Gibraltar” will be subject to new regulation – bringing affiliates, group marketing hubs and even creative agencies into scope.
• Enforcement powers: The Gambling Commissioner’s powers are significantly bolstered. The commissioner can now issue administrative fines, cease-and-desist orders, conduct inspections and impose suspensions where warranted.
• Digitalisation and reporting: Operators must prepare for increased digitised reporting, particularly in relation to AML, financial disclosures, technical standards and safer gambling initiatives.

Gambling Appeals Tribunal introduced to review regulatory enforcements

Crucially, a Gambling Appeals Tribunal is being introduced. The independent body established under the updated Gambling Act is designed to hear appeals against decisions made by the gambling commissioner. These may include licence refusals, suspensions, revocations or other enforcement actions.

The tribunal’s creation marks a key milestone in Gibraltar’s broader regulatory reform, legal experts have said, reinforcing its position as a jurisdiction committed not only to robust regulation, but also to fairness, transparency and legal accountability.

Ultimately, it adds another layer of trust that should help to attract serious operators to the market.

Gibraltar’s new Gambling Act: Impact on stakeholders

Steven Caetano, partner at Isolas law firm, notes: “The act raises standards for all stakeholders, with the greatest operational impact on operators and their key personnel.”

Operators must overhaul their group structures to map out which business units will require licensing. For multinationals, this may mean multiple licence applications and reorganised internal governance. B2B providers and third-party support services – including marketing, technology and CRM services – must now assess whether they require standalone licences.

Similarly, senior personnel face new responsibilities, with the “Approved Persons” regime emphasising personal accountability front and centre.

Regulators gain more authority – but also a heightened responsibility to ensure fair, consistent and transparent enforcement.

In the end, players stand to benefit through stronger consumer protections, responsible gambling requirements and greater market integrity.

Navigating the challenges

Stakeholders have welcomed the new regulation, but it doesn’t come without significant challenges. Among them are increased compliance costs as new licence applications, reporting obligations and staffing requirements will drive up outlay – especially for smaller operators or those transitioning from leaner compliance models.

If the new act succeeds in attracting more business to Gibraltar, there will likely be demand for more local staff, though a relatively small labour pool in Gibraltar may pose recruitment challenges.

However, the anticipated UK-EU border agreement is expected to ease the movement of frontier workers from Spain, by removing the need for border checks between Spain and Gibraltar.

There is also a degree of transitional complexity. Although current licensees will be “grandfathered” into the new system, they will still need to undergo fresh applications within six months of the Gambling Act’s commencement.

Uncertainty around licensing categories in Gibraltar’s new Gambling Act

Speaking to iGB, legal experts agree there is a level of uncertainty around how some of the the new rules should be implemented.

Victoria Reed points to the uncertainties around licensing categories: “The government has said marketing carried out ‘in or from Gibraltar’ will generally need its own licence but has also indicated it may carve out some intra-group activity on a case-by-case basis. Until more secondary rules and precedents are published, operators can’t be entirely sure which affiliates, agencies or shared-service teams fall inside scope and which don’t.”

She also highlighted new rules around support services leaving room for interpretation.

”The act lists functions like managed trading, RNGs, hosting and advertising as ‘support services’, but leaves room for interpretation,” Reed adds.

”Multinational groups will need to decide whether in-house teams that straddle multiple hubs — for instance a centralised risk team partly in Gibraltar — require licensing.”

Caetano flags additional guidance could be needed to clarify B2B versus B2C licensing:

“The distinction between B2B and B2C activities is clearer, but some hybrid or cross-border models may require further guidance.”

In essence, it is unclear if dual licensing is needed or whether it could be covered under one tailored licence.

Credibility in a crowded field

Gibraltar’s iGaming sector, which employs more than 3,200 people across 54 operators, continues to be a cornerstone of the peninsula’s economy, generating 20% of its GDP.

Last year the sector contributed £110 million in corporate tax and £40 million in PAYE contributions. There are currently 83 licensees appointed – 49 B2C and 34 B2B.

In a reality where jurisdictions like Malta, the Isle of Man, and emerging offshore hubs are all vying for operator attention, Gibraltar’s message is clear about its brand: credibility, not convenience.

Where a place like Malta offers flexibility, and the Isle of Man applies rigid structure, Gibraltar positions itself in the middle as a risk-based market, but also with regulatory discretion and pragmatism, Reed explains

As Gibraltar’s Minister for Justice, Trade and Industry Nigel Feetham noted in his recent parliamentary budget address, Gibraltar has never operated a “no-questions-asked” model and the jurisdiction expects its licensees to respect local laws in other markets and take local licences where appropriate. This ethos is embedded in the 2025 Act.

“If we drive business away, it will be business we don’t want,” Lyman notes.

The real test begins now, where both regulators and businesses will be adapting to the new act, but the tone is optimistic.

“We’ve already seen renewed interest in the jurisdiction,” says Lyman. Caetano agrees the act “ensures Gibraltar remains at the forefront of the global online gambling industry for years to come”.

This year alone, three major casinos reached settlements with the Nevada Gaming Commission to resolve charges related to AML deficiencies at their properties. Ahead of next week’s Global Gaming Expo (G2E) in Las Vegas, the American Gaming Association released a comprehensive guide to best practices for developing a robust AML framework across the gambling industry, not just in Las Vegas.

The association, which represents the $329 billion US casino industry, sponsors the expo each year. G2E annually ranks as one of the largest gambling conferences around the world.

The 64-page guide provides a roadmap for commercial sportsbooks on how to mitigate the widespread risks of money laundering. As gaming transactions through virtual currencies proliferate, the AGA devoted a lengthy section to best practices on combating crypto laundering.

To discourage illegal financial activity and safeguard the integrity of the gaming industry, casinos must develop effective risk-based programmes that ensure compliance with the legal requirements of the Bank Secrecy Act, according to the AGA.

Heightened AML risks through sports betting

The binary outcomes offered through various sports wagers make the bet types a popular vehicle for money launderers, the AGA stated in the memo. As with games such as baccarat, craps and roulette, sports betting gives a customer the option to wager both sides as a way of laundering funds.

For example, if a bettor uses dirty money to wager $100 on a home team, then $100 on the other side, the bettor would only lose the vig, while receiving a clean payout from the casino.

According to the AGA, similar risks may arise when a patron places a bet with a legal sportsbook on behalf of an unidentified third party to conceal the source of funds. In gambling parlance, the practice is known as wagering through a “beard”.

AML best practises have received added scrutiny over the last 24 months in the wake of multiple convictions of illegal Southern California bookmakers during that span. In August, Matt Bowyer received a sentence of approximately one year in federal prison in connection with operating one of the nation’s largest illegal sports betting rings. Bowyer is the bookie who accepted roughly $325 million from Ippei Mizuhara, the former interpreter for baseball star Shohei Ohtani

In Las Vegas, Bowyer laundered millions of dollars through Resorts World Las Vegas. Beside Resorts World, MGM Resorts and Wynn Las Vegas also reached settlements with Nevada regulators this year to resolve AML charges.

In March, the Nevada Gaming Commission approved a $10.5 million settlement with Resorts World, the second-largest in state history. The NGC also levied fines of $5.5 million and $8.5 million against Wynn and MGM Resorts, respectively.

Challenges in enforcing crypto money laundering

Two other bookmakers in the case, Wayne Nix and Damien LeForbes, are awaiting sentencing. LeForbes, a pro poker player, also allegedly laundered millions in a casino purported to be Resorts World. In a 38-page federal plea agreement, prosecutors document a conversation LeForbes had with one of his betting clients.

Concerned that law enforcement might find a way to monitor the transaction, the client sought advice from the bookie. In response, LeForbes instructed the client to structure the payment by sending the debt to several different addresses: “I’d send $100K at a time to different addresses. You can create a different address in a wallet every time. Just don’t send [it] to an exchange.”

Authorities seized two Trezor wallets from LeForbes’ residence during a search on 22 December 2023.

When applying best practices for crypto transactions, the AGA advises that any virtual currency should be converted to US dollars prior to use at a sportsbook. Upon conversion to dollars, the transactions will be subject to the same Suspicious Activity Report reviews as other cash activity within a casino, according to the AGA.

Next week, several panels during the G2E conference will be devoted to AML practices throughout the industry. Compliance officials from MGM, Wynn and Resorts World will appear at a session early next week.

Key points:

• To successfully start a gambling business in Brazil, you will need to secure a federal licence that costs BRL30 million.
• The licence allows a five-year operating period and up to three brands.
• Brazil gaming licence requirements include AML, KYC, CTF measures and use of ‘.bet.br’ domains.

An overview of Brazil’s online gambling market

It took nearly seven years to successfully legalise online gambling in Brazil. Indeed, the process of legalising Brazilian betting has been far from straightforward. After overcoming delays caused by shifting priorities and political uncertainty, the regulated online market finally launched on 1 January 2025. 

International betting operators appear to have a massive interest in Latin America’s largest regulated betting economy. The pace of growth in licensed operators has been remarkable. At the beginning, there were 14 licensed operators on the launch date. By August 2025, the number of licensed operators had increased to 78 already.

The large sports fan base in Brazil and high internet penetration rates give rise to a fertile environment for new entrants. If you want to start a betting business in Brazil but are new to the market, here’s a detailed beginner’s guide on how to properly set up a Brazilian gambling business.

Brazil gaming licence at a glance

The government has officially set the rules for its sports betting and online gaming industry. Operating as a department within the Ministry of Finance, the Secretariat of Prizes and Bets (SPA) is responsible for regulating the legal online betting market in Brazil. 

Not only does the SPA award federal online betting licenses, but it also plays a central role in the implementation and enforcement of Law No 14,790/2023.

Law No 14,790/2023 is pivotal in the development of Brazil’s gambling landscape. As the legal basis for regulation, it outlines how to apply for a Brazil iGaming licence. 

To apply for the licence, your company must be established in Brazil with at least 20% Brazilian capital and undergo a rigorous technical certification process for your betting systems. There will also be ongoing audits to maintain compliance. 

The application fee for a federal betting licence in Brazil is BRL30 million. It lasts for five years and allows for up to three brands. After getting your licence, you are also mandated to implement the following:

• Anti-Money Laundering (AML)
• Strict Know Your Customer (KYC)
• Counter-Terrorism Financing (CTF) 
• Exclusively ‘.bet.br’ domains
• Restricting payments to electronic transfers
• Prohibiting credit cards and cryptocurrency

Related Article:

• Understanding Brazil’s regulated betting payment methods

The development of the Brazil gaming licence

Historically, gambling has been considered illegal. For example, “jogo de azar” (games of chance) and the popular “jogo do bicho” remain explicitly illegal under Decree-Law 3,688/1941 and Decree-Law 6,259/1944.

Religion has also shaped the direction of Brazil’s gambling laws. It has influenced both historic bans and illicit modern-day debates. Reportedly, President Eurico Gaspar Dutra outlawed gambling in 1946 at the urging of his deeply religious wife, shutting down casinos and entertainment venues. 

Ever since, the betting scene in Brazil has largely existed in the shadows for 80 years. Decades later, Senator Eduardo Girão also claims online betting has “destroyed lives” and fuelled money laundering, as he called legalisation a “mistake” that should be reversed.

Fast forward, the Brazilian government put forward Law No 13,756 in 2018 to create fixed-odds betting as a legal option in the country. They later established Law No 14,790/2023, setting the regulatory framework for their sports betting and online gaming industry, as well as how to get a Brazil gaming licence.

Brazil gambling market snapshot

Brazilian players are the world’s largest source of gambling website traffic. As of 2024, they accounted for 15% of global visits. Before regulation, experts estimated the value of Brazil’s grey market for online betting and iGaming to be $3.4 billion (£2.6 billion/€3.0 billion) in November 2024.

After regulation, the Q1 2025 estimation of the legal market was around BRL3.1 billion per month. Supported by data from H2 Gambling Capital (H2GC), a market intelligence report by OKTO and iGB projects that the Brazilian online betting market could reach BRL64 billion in GGR by 2030 in view of the increasing competitiveness of the market.

Is online gambling legal now in Brazil?

Yes – online gambling is now legal in Brazil. The regulated online betting market officially launched on 1 January 2025 after an 80-year gambling prohibition. The legalisation of online gambling in Brazil has, in fact, faced several delays since its initial approval by the National Congress in November 2018. These delays include persistent political opposition and pushback from various sectors, including gambling addiction and religious opposition.

After seven years, the Brazil market finally received the final green light in December 2023 and is now open to regulated operators. Operators have to follow a strict licensing process and compliance audits to secure a Brazil gambling licence.

What are the different types of Brazil gambling licences?

There are currently three types of online gambling licences available in Brazil. Betting operators must also undergo strict certification processes to apply for and maintain the federal licence. To name a few:

• Technical certifications for betting systems and servers, such as ISO-27001
• Payment systems that meet Sicoaf/Bacen standards according to Portaria SPA/MF 1,143/2024
• Certifications issued by third-party certifying entities such as Gaming Laboratories International (GLI) and Gaming Associates Labs (GA Lab)

Type 1 – Federal licence

This is the primary licence issued by the SPA. The five-year licence allows operators to run up to three “skins” or brands. International betting brands, such as Bet365, Betfair and Betano, have all secured this licence early to take on the market. All licence applications are to be submitted via the SIGAP portal to the SPA.

Type 2 – Provisional licence

The SPA also grants provisional licences to companies that have paid the BRL30 million (£3.9 million/€4.7 million/$4.8 million) licence fee but are facing delays with their technical certifications or other application issues. These licences typically last 30 days. Further extensions are available if the companies require additional time to complete the full application.

Type 3 – State or municipal licence

Some state lotteries, such as the Rio de Janeiro State Lottery (Loterj) and certain municipalities like Bodó have also issued their licences. These state and municipal licences are generally less expensive than the federal licence issued by the SPA. Therefore, the final cost of a licence depends on the scope of your business.

How to obtain a Brazil gaming licence?

Unlike some emerging markets, Brazil allows a full suite of wagering products. Therefore, you don’t need separate licences for sports betting and online casino operations. Instead, a single federal licence covers both fixed-odds sports betting and online casino games. Games such as slots and crash games are also included. Below are the steps to obtain a Brazil gaming licence.

Brazil gambling licence requirements

You must meet strict requirements across legal, fiscal, financial and technical aspects in order to obtain a federal licence for fixed-odds betting in Brazil. You must demonstrate financial stability, technical proficiency and compliance with Brazilian law to operate an online betting business in Brazil.

How to submit the application?

To obtain a Brazil gambling licence, you will need to submit an application to the SPA. You must submit all application forms and supporting documents via SPA’s electronic platform, the SIGAP (Sistema de Gestão de Apostas). 

The application will then be reviewed and, if approved, a licence will be issued. It is important to comply with all regulations and requirements to ensure a smooth and successful licensing process.

The SIGAP has provided a step-by-step guide for you to complete your application. One thing to note is that you will need an e-CPJ or an e-CNPJ digital certificate to access or log into the portal.

What’s the timeline?

The official launch date of the legal market was 1 January 2025. The initial application window for the first batch of federal licences opened in May and closed on 20 August 2024.

The 90-day window of preference after the release of Ordinance 827 allowed applications to be prioritised and proceeded with before the market went live on 1 January 2025. 

Expect the process to take up to 180 days if you apply after the August deadline. The SPA usually replies within 150 days of submission through SIGAP. Once you get approval, you’ll have 30 days to pay the BRL30 million concession fee.

Another key deadline to remember is that if you are granted a provisional licence, you will have 30 days to submit your required documents to the SPA. 

You can apply through SIGAP whenever you like, but it’s important to plan ahead with the timeline above.

How much does a Brazil gaming licence cost?

Getting started costs BRL30 million for a five-year licence. After that, operators face a 12% tax on Gross Gaming Revenue (GGR) plus a 34% corporate tax on profits, along with other contributions. When you add GGR tax, corporate tax, social contributions and municipal levies, the total tax burden can climb to nearly 50%. 

Comparing Brazil’s gambling licences: Which one is the most affordable?

You might wonder – is it worth getting the federal licence in this case? Here’s a breakdown of the two main licences for betting operators.

Step-by-step application process

We know getting a licence could be an exhaustive process. Operators need to meet a high standard of requirements to get a licence approval. Here’s a breakdown of the key steps involved in obtaining a gambling licence in Brazil.

1. Register a business

This is the initial foundational step, as you must legally establish your company in Brazil based on the criteria we discussed above before commencing the licensing process.

2. Gather documents

The SPA will thoroughly evaluate your legal qualification as well as financial and technical setup to ensure adherence to its regulations.

You may refer to Portaria SPA/MF nº 827/2024 for the full list of required documents.

3. Submit your application

Once you have gathered all the necessary documents and met the prerequisites, you can then submit the application online. The SPA only accepts electronic submissions through the System for Management of Betting (SIGAP).

4. Review and verification

After you have submitted the electronic application, the SPA has up to 150 days to review the request. In case of insufficient and incomplete information, the SPA may request complementary documents at any point during the evaluation.

After the SPA’s preliminary review, the Ministry of Sport (MESP) has up to 45 days to approve the application.

5. Get the licence

The issuance of the licence marks the final stage of the application. Once the SPA has given the green light to the initial documentation, they will notify you to pay the licence fee of BRL30 million. You will then have up to 30 days to submit the payment receipt and any remaining pending documents.

The SPA would grant provisional licences to applicants that have met most requirements but have pending documents, such as technical certificates. The provisional licence usually lasts for 30 days. You may extend your authorisation once again for 90 days. However, if you do not meet the deadlines, the SPA may suspend or revoke your provisional authorisation.

The regulatory landscape in Brazil

Having gone through an 80-year grey period, Brazil’s online betting market has undergone a comprehensive regulatory overhaul. It has transformed a historically largely unregulated environment into a federally licensed and closely monitored industry.

What are the regulatory bodies and their respective functions?

The main regulatory bodies for online betting in Brazil and their key functions are as follows:

• The Ministry of Finance:

The central governmental body responsible for regulating and supervising fixed-odds betting operators in Brazil. The Secretariat of Prizes and Bets (SPA) serves as Brazil’s federal gambling regulator. It was established by Law No 14,790/2023 in December 2023. Also known as “Lei das Apostas” or “Betting Law”, the law regulates the iGaming market nationwide, including both fixed-odds betting, virtual casino-style games and lottery.

• The Ministry of Sport (MESP):

MESP must confirm their approval after the SPA’s review. They play a crucial role in upholding the integrity of sports events and betting. 

• Special Secretariat of the Federal Revenue of Brazil (RFB):

The RFB is responsible for revenue collection and tax codes related to lotteries and prizes.

• Council for Financial Activities Control (COAF): 

The COAF is responsible for collecting information regarding anti-money laundering (AML) and the prevention of terrorism financing (FTP). 

• Central Bank of Brazil (BCB):

The Central Bank disciplines payment arrangements to prevent transactions intended for non-authorised operators. 

• State-level authorities (e.g. LOTERJ):

LOTERJ, on the other hand, is a state-level licensing entity whose mandate was historically limited to state lotteries. On 2 January 2025, Brazil’s Supreme Federal Court (STF) barred Loterj-licensed brands from operating beyond Rio de Janeiro’s borders. It was a setback for certain operators, especially when it costs less at BRL5 million than the federal licence for the same timespan.

Why get a Brazil gaming licence?

Aside from the fact that it’s illegal to operate without a federal licence now, obtaining a gaming license in Brazil serves as a “stamp of approval” from the Brazilian government. As an operator, you can show your commitment to the market, which is vital for gaining customer trust. 

If you have eyes on sponsoring top football clubs in Brazil, getting a Brazil gaming licence is also a must for you. This is because only licensed operators with the required ‘bet.br’ domain are permitted to sponsor teams or sporting events.

The GGR projection of the Brazilian market

Brazil is one of the world’s largest economies and is anticipated to become a major global gambling hub. Its regulatory launch has opened up immense potential, driven by its large population, vibrant sports culture and expected substantial revenue generation. 

• Top Global Market: Brazil is poised to become a top-three global market for online betting.
• GGR Projection: H2 Gambling Capital (H2GC) forecasts the online Gross Gaming Revenue (GGR) of the regulated Brazilian market to reach $10 billion in GGR by 2029. 
• Sports Betting Dominance and iGaming Growth: Sports betting is the superior vertical currently, forecast to account for 55% of online GGR in 2025, with football driving 86% of the sports betting GGR, according to H2GC. 
• Land-Based Potential: There have been ongoing discussions regarding the legislative action to approve land-based casinos. 

Key consideration

Despite the vast potential in the Brazilian market, there are a few things you need to consider. The decision to apply for a Brazil gaming licence involves navigating a complex landscape defined by intense market competition and taxation unpredictability.

Profitability is also uncertain, as operators must contend with a non-refundable licence fee of up to R$30 million, mandatory financial reserves and an effective tax burden approaching 50%, which industry groups warn could push activity toward unregulated channels.

Brazil Gambling Licence FAQs

The core problem, according to many industry analysts, lies with inflexible, monolithic legacy systems that are ill-equipped to handle the demands of today’s digital bettors. These older platforms often struggle to support the huge volume of concurrent players, resulting in performance issues, system downtime and a frustrating user experience. How do operators solve these fundamental, and legacy, inefficiencies?

According to Emil Hakobyan, CTO at iGcore, overcoming these hurdles requires a sophisticated and systematic approach. He notes that simply layering new features on top of outdated infrastructure is not a sustainable solution. Instead, the focus must be on building a foundation that can grow with the market. “Achieving stability at scale requires a highly coordinated, systematic approach to both infrastructure and development,” Hakobyan explains.

Designing a better future

iGcore’s response to this challenge is a modern microservice architecture. This design is built on the principle of breaking down the platform into a collection of smaller, independently deployable services. This structure allows for instant, dynamic scaling based on real-time traffic, ensuring reliability and consistent uptime even during peak betting events such as major football matches or tournaments. Crucially, it also means that individual services can be updated or expanded without disrupting the entire system, a level of agility that stands in stark contrast to legacy platforms where a single change can risk an entire system crash.

“By embracing this modular design,” Hakobyan explains, “we achieve the optimal balance between development quality, deployment speed and scalability. This empowers operators to remain competitive and meet evolving market requirements with unmatched agility.”

He adds that iGcore’s relatively young age as a company has been a distinct advantage. “Our seven-year journey has been a masterclass in real-world application. We’ve amassed a significant portfolio of clients and gained extensive hands-on experience, which critically informs our forward-thinking decisions and allows us to solve challenges with remarkable speed.”

A saturated market ripe for disruption

With a multitude of platforms and providers, the sportsbook market is often described as saturated. Hakobyan agrees with this assessment, but he also points out that the sheer number of options does not guarantee quality. He suggests the myriad of choices makes the process of selecting a technology partner a highly strategic decision for operators, as many platforms fail to meet the complex demands of both players and operators.

Differentiation, then, is key. iGcore believes its competitive edge comes not just from technology but from its personalised approach to client relationships. “The relatively small size of our company allows us to maintain a highly personalised approach to every client,” Hakobyan says.

“Our strong technological foundation ensures unmatched stability and performance, and this combination enables lightning-fast and efficient feedback between bookmakers and risk management, helping operators respond instantly to any challenge or opportunity.”

“We also focus on innovative gamification elements, such as achievement-based rewards and personalised challenges, with bonuses that make the betting process more interactive and fun.”

The industry is also clearly moving towards an “entertainment-first” model, where the betting experience transcends simple transactions. This is a trend iGcore has closely followed, but they stress a cautious and considered approach. “It is absolutely vital to smartly integrate these entertainment elements into the betting experience,” Hakobyan explains. “They should enhance, not overshadow, the core functionality of traditional sports betting, which will continue to play a key role for the foreseeable future.” He adds that providers who successfully combine innovation and entertainment with strong, stable technology are the ones who will ultimately succeed.

On a mission to attract Gen Z

The rise of Gen Z as a consumer demographic is forcing betting operators to rethink their platforms. This generation of “digital natives” expects a mobile-first, social media-like experience that is highly interactive and gamified. Various studies cite this demographic as using their mobile devices for over 6 hours a day, on average. iGcore aims to address these demands with specific features designed to create a more engaging environment.

One such element is its live chat functionality, which allows for real-time, in-play communication and community building between users. The company is also focusing on gamifying the player experience – a crucial edge in today’s market. “We also focus on innovative gamification elements, such as achievement-based rewards and personalised challenges, with bonuses that make the betting process more interactive and fun,” Hakobyan says. Looking even further ahead, the company is “exploring novel features like virtual ‘missions’ tied to live sporting events, giving users extra incentives to stay active and involved”.

And the key to unlocking this audience? Well, iGcore says continuous market research and strategic planning will make the difference in resonating with Gen Z bettors. Fresh thinking, fresh innovation and a highlights driven UX will both attract and retain this dynamic demographic.

The road to 2030: AI, esports and beyond

AI and machine learning have well and truly landed. They’re no longer theoretical concepts for the gambling industry. Instead, operators are asking how they integrate these technologies as foundational elements of modern platforms?

iGcore is leveraging this technology to create a more intelligent sportsbook. “Our technology personalises content by predicting user preferences and tailoring offers, markets, and promotions to individual betting behaviours,” Hakobyan states. Beyond personalisation, the company has implemented AI to automate and accelerate the detection of unusual betting patterns, a crucial function for fraud prevention and real-time odds optimisation.

Another key area of focus is esports, a segment that is proving hugely popular with the Gen Z demographic and as a result – seeing explosive growth in the industry. The company is actively supporting this trend by continuously adding new markets and titles based on regional demand. The technology for esports wagering is distinct from that of traditional sports, with a greater emphasis on speed, interactivity, and engagement to cater to the unique preferences of its audience.

When asked about the single biggest technological shift he foresees in the next five years, Hakobyan believes the answer is not a single factor but a combination of forces. “I strongly doubt there may be a single defining shift, as the sportsbook industry is highly multifaceted,” he notes. Instead, he sees the most significant drivers of change as “the creation of unique, engaging content, the introduction of new and diverse markets, the evolution of payment methods, and the continuous refinement of technology and features.”

Channelling this spirit of constant improvement will drive tomorrow’s winners, today. By focusing on these core areas, iGcore aims to retain its status as a sportsbook provider focused on innovation, delivering solutions that provide lasting value to both operators and players in a market that continues to redefine itself.

Emil Hakobyan, CTO at iGcore

The passive approach of “set it and forget it” is no longer viable in an industry that is rapidly evolving. As ReferOn’s General Manager Alex Bukin comments: “The iGaming affiliate sector has changed dramatically, especially in recent years. 

“There are three key shifts that define this evolution: increased regulatory pressure, which necessitates accurate and audit-ready data; industry consolidation, which requires managing larger portfolios; and a heightened focus on data, as affiliates now seek actionable insights, not just payouts.” 

These changes highlight a stark reality: the traditional affiliate management model is broken. Operators are losing out on significant revenue and efficiency because their systems can’t keep pace.

The outdated model and its hidden costs

The vast majority of affiliate programmes are built on legacy technologies that were never designed for the complexities of modern iGaming. These platforms, often patched together or built on outdated codes, create a domino effect of problems. 

They lack the real-time reporting capabilities that both operators and affiliates now demand, forcing teams to rely on static, historical data. This leads to data fragmentation, where crucial metrics are siloed, making it impossible to gain a holistic view of performance. 

Moreover, it creates scaling inefficiencies: as the portfolio of brands and affiliates grows, what initially seems like a positive development often leads to an increasing number of manual tasks – such as creating tracking links, updating reward plans, and chasing invoices.

As ReferOn’s Operational Lead David Harris points out, there is a common industry misconception. He says: “There is a general idea that affiliation is easy – you set the deal and wait for money to come in. This should not be the case.” 

Without a robust platform, operators are unable to track crucial metrics; directly impacting the operator bottom line and profitability. These inefficiencies don’t just affect the operator; they directly impact the affiliate model. 

A clunky, opaque system with delayed reporting creates a lack of trust and a frustrating user experience (UX), leading to a high affiliate churn rate and the loss of high-quality traffic. The problem, therefore, is not just about technology; it’s about the friction that poor technology creates in what is fundamentally a partnership business.

Harris also cautions that losing sight of a portfolio’s fluctuations can seriously impact both profitability and affiliate relationships. Common operational challenges such as manual workflows, outdated reporting and compliance blind spots often lead to delays and disputes, which ReferOn was designed to resolve.

ReferOn’s new way forward: Creating a platform built for growth

ReferOn’s key differentiators are designed to solve the pain points that have long plagued the iGaming affiliate sector. As Bukin explains, the company’s value proposition is built on an intuitive, flexible and transparent platform that delivers “scalable, enterprise-grade performance”.

One of the most significant advantages is a seamless user experience (UX) for both operators and affiliates. Head of Product Vlad Bondarenko stresses the importance of this, explaining that by providing a streamlined UX, the platform “removes friction points, freeing managers to focus on high-value work like building deals, optimising portfolios, and detecting fraud”. The platform’s new Async Tasks and Affiliate-Controlled Postbacks, for example, enable faster, more autonomous operations without overloading the system.

Another key differentiator in an industry more regulated than ever before, is transparent, real-time data and analytics. 

Legacy platforms often rely on lagging, static reports, which are a significant pain-point for a fast-paced industry. ReferOn, in contrast, provides a consistent, dynamic reporting system that gives users immediate insights into performance trends. This includes a clear view of performance across campaigns, geos and traffic sources. Bukin states that this transparent reporting “reduces disputes and creates immediate clarity for affiliates and operators”, which is crucial for building and maintaining trust.

The provider’s forward-thinking approach also ensures that operators excel in the automation of repetitive tasks, saving both hours and money, at a time when margins have never been more competitive. 

“There is a general idea that affiliation is easy – you set the deal and wait for money to come in. This should not be the case.” 

For example, ReferOn has an API-first architecture which allows for seamless integration with existing operator systems. By automating these processes, ReferOn allows operators to grow their affiliate programmes without needing to proportionally increase their headcount.

The provider’s automation also offers centralised control over multiple brands. To highlight this level of evolution, Harris notes that they have gone as far as to build its own set of features specifically designed to solve the problem of managing too many accounts, which had led to complications for affiliate managers and login issues for affiliates – a pain-point that has been prevalent for far too long. 

The untapped power of strategic data and trust

The true value of a platform designed for the future is its direct and measurable impact on the bottom line. Investing in modern affiliate technology is not just about improving workflows; it’s about driving significant financial results. Data, and automation, makes this possible.

By providing deep insights into player lifetime value by affiliates, ReferOn shifts the focus from simply tracking clicks and commissions to understanding the quality of traffic. 

As Bondarenko notes: “This kind of visibility shifts affiliate management from reporting to decision-making. Operators can now ask, should we double down on this segment, renegotiate that deal, or reallocate budget? This data-driven approach allows for smarter decisions that directly increase the long-term value of each player.”

Underlying all this, the foundation of a successful affiliate programme is no doubt trust. By providing affiliates with real-time, accurate data and fair payouts, the platform fosters stronger, more collaborative relationships. This, in turn, leads to higher-quality, long-term traffic, which is essential for sustainable growth.

Ultimately, as Bondarenko concludes: “With the right platform, affiliate management becomes a strategic asset, not just a cost centre.”

Pioneering the future of affiliate technology

ReferOn’s roadmap is focused on addressing emerging trends and challenges to ensure its clients are always at the forefront of the industry. The platform’s strategic development is centred on five key zones: stronger governance, deeper automation, next-gen payments, affiliate-centric UX and AI-readiness. 

The increasing importance of AI showcases just how far ahead ReferOn is looking into the future. The platform’s standardised data pipelines are being specifically designed to unlock the power of AI in a way few others have achieved so far. 

By merging both human abilities and the potential of automation, the aim is to provide the tech equivalent of an “AI-powered junior affiliate manager” – acting as a direct second brain for operators, detecting traffic anomalies, suggesting offers and generating tracking links.

The platform’s focus on robust governance, including role-based access models and audit layers, ensures operators can maintain control and security. 

This is especially crucial in emerging markets such as LatAm, with its unique challenges with fragmented payments and variable regulations. 

To achieve this, ReferOn provides flexible compliance layers that can be toggled per market on a micro level. As Bondarenko adds: “This mix allows operators to expand aggressively while staying compliant and affiliates to feel confident working in new territories.”

In conclusion, ReferOn is more than just a software provider; it is a strategic partner for operators navigating a complex and competitive vertical. The era of the outdated affiliate platform is over. Investing in robust affiliate technology is no longer a luxury, but an essential strategy for maintaining a competitive edge and driving sustainable revenue growth.

David Harris, ReferOn’s operational lead

Vlad Bondarenko, ReferOn’s head of product

Alex Bukin, ReferOn’s general manager

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.

Indeed, while gambling regulations can bring significant benefits in areas such as safer gambling, fairness, data protection and tax revenues, compliance is widely viewed as a major headache that can monopolise resources, derail plans and curb growth. 

Even operators in long-established gambling markets are not immune from such challenges. In the UK, for instance, analysts expect increasing regulations to be one of the key factors that could stifle the sector’s expansion. 

From geolocation and fraud prevention to anti-money laundering (AML) and Know Your Customer (KYC) checks, operators face an increasingly stringent checklist to avoid falling foul of the watchdogs. 

Proactive compliance is the holy grail  

However, amid this complex space, in which operators from across the globe have faced eye-watering sanctions, there is increasingly a shift from a reactive to proactive approach.  

For an industry that is used to predicting outcomes and setting odds, operators are now betting that anticipating regulatory headwinds and preparing for the compliance requirements could be a huge commercial enabler.  

This transition is supported by enterprises like Vector Solutions – which has operated as multi-sector compliance specialists since the late 1990s and established five offices across the United States. 

In April, Vector, which already worked with more than 350 casinos on AML compliance, acquired ArdentSky – which has been providing compliance technology solutions to the gaming industry for over 15 years. 

ArdentSky has a huge portfolio spanning global gaming manufacturers, operators, and suppliers. Its established client list includes the likes of DraftKings, FanDuel, BetMGM, IGT, Aristocrat, Playtech and Rush Street. 

According to a Vector Solutions spokesperson, there are several reasons for the transformation that is taking place with how gaming organisations are handling gambling licence requirements, risk management and compliance training. 

The primary reason is the expansion into new and stricter markets, each of which comes with its own complex licensing rules, meaning operators must juggle more licences, deadlines and regulators than ever before.  

Simultaneously, digital transformation has fundamentally shifted the way organisations operate, with compliance systems moving away from manual, paper-based processes towards centralised, automated platforms – a shift that has made it easier to track requirements and delivery.  

Meanwhile, regulators are also intensifying their scrutiny, with even relatively minor lapses punished severely. Additionally, vendor oversight has become more important, with jurisdictions like Nevada requiring background checks on suppliers, forcing operators to be responsible not only for their own compliance but also for third parties. 

Driving cultural change 

However, according to a Vector Solutions spokesperson, the biggest change is cultural. 

“Compliance is no longer a defensive exercise; it’s becoming a business enabler,” the spokesperson says. “Companies are embedding compliance into their strategic planning, so licensing and risk processes actually support faster expansion.  

“The entire industry is moving from reactive, manual compliance toward proactive, digital, and integrated approaches – and of course the past 18 months in AML enforcement have really underscored the stakes.” 

MGM Resorts and Wynn Las Vegas are just two major operators that have faced multi-million-dollar financial penalties so far in 2025 – and regulators are increasingly holding both executives and companies liable. 

“The shift toward formalised, risk-based AML programs, expanded KYC, and attention to global networks like Chinese Money Laundering Organizations means compliance has to be smarter, more tailored and more technology-driven,” the spokesperson adds. “It’s no longer about ‘checking the box’. It’s about protecting both the business and its reputation.” 

Innovating under pressure 

In light of record enforcement actions, squeezed budgets and heightened scrutiny, many compliance teams are being asked to do more with fewer resources.  

Moreover, hiring the right individuals to join the compliance team can take time – leading to a greater risk of missing filings or leaving auditing gaps. 

“There’s no question compliance teams are under pressure,” the spokesperson says, adding that gambling compliance jobs increasingly cover a broad range of areas, ranging from AML to health and safety to cybersecurity. 

“When you add in staffing shortages, the burden becomes almost impossible to sustain, and it shows up in turnover. Casinos end up spending heavily on recruitment and onboarding, only to risk losing talent because compliance budgets and salaries often aren’t commensurate with their value. This is despite the fact that a strong compliance team and programme can save companies millions in avoided fines.  

“But there are opportunities, too. The pressure is forcing teams to innovate. We’re seeing more automation, tighter integration with other departments, and smarter use of data analytics. In some cases, being leaner pushes compliance to align more closely with business goals. Those organisations that adapt will end up with more resilient, efficient, and strategically integrated compliance programmes.” 

Facing a unique challenge 

With more than a quarter of a century of experience in regulatory compliance, Vector Solutions, with ArdentSky under its wing, is well placed to offer its perspective on the unique challenges of the gaming industry. 

According to the spokesperson, the patchwork nature of gaming regulation means licensing is unlike almost any other industry. 

Additionally, the practicalities of obtaining a single gambling licence can be daunting, with applications that can have hundreds of pages and forensic background checks that extend beyond the company and to its shareholders, executives and employees.  

Given the complexities of these processes, approval times can be wildly unpredictable – dragging on for months or even more than a year. 

“For vendors entering new markets or operators looking to expand partnerships, those delays can put major business plans on hold.” the spokesperson says. “Licensing issues with vendors can affect an operator’s licence, so the responsibility is shared on both sides.”  

Licensing management as a strategic imperative  

When compliance failings occur, the fallout can be disastrous for a business, draining resources and driving up legal costs.  

“From a reputational standpoint, regulators lose trust quickly when they see sloppy licensing practices,” the spokesperson says. “That leads to slower approvals, stricter oversight and less flexibility in the future. In a highly regulated industry like gaming, even one publicised violation can undermine brand credibility with customers, partners and investors.” 

Furthermore, there are ongoing reporting requirements for vendors and operators, including deadlines, renewals and mandatory disclosures of any regulatory action.  

“If a licence is suspended, even temporarily, it can shut down operations in a key market. That means refunds due to lost deals, or even breach-of-contract claims,” the spokesperson adds. 

“The bottom line is that licensing management isn’t just an administrative task – it’s a strategic function. Done well, it enables growth. Done poorly, it can cripple both operations and reputation.” 

Implementing role-specific training 

Organizations can take a big step in the right direction by investing in training that is “comprehensive, ongoing and impactful” to satisfy watchdogs, rather than the box-ticking exercise of years gone by. 

“We’ve seen enforcement actions where failures were tied directly to weak or inconsistent training,” the spokesperson adds. “Regulators expect training to be risk-based and role-specific. A VIP host faces very different scenarios than someone in accounting, and the training has to reflect those realities.”  

“The threat landscape is evolving too quickly for static, annual training – and the personal accountability piece cannot be overstated. We’ve already seen executives criminally and civilly penalised for Bank Secrecy Act violations. That raises the stakes dramatically.” 

Above all, training programmes must ensure the organisation is proactively working to prevent issues – and not just reacting to them. 

“Compliance is no longer a defensive exercise; it’s becoming a business enabler”

“By dedicating time, resources, and commitment to training, casinos demonstrate that compliance is a priority at every level. That message resonates with both regulators and employees,” the spokesperson says. 

“It builds trust and reinforces accountability – and culture really does start at the top. Regulators assess not just policies, but leadership’s commitment to compliance.” 

Built into the process 

Whether it is an operational function such as hiring or onboarding, or market expansion, the key is for compliance to be integrated into existing systems from the outset so that licensing checks, risk reviews and training requirements can be built directly into the process. 

For example, integrating human resources platforms with learning management systems can enable new hires to be automatically assigned the right AML training from day one.  

“Triggers and automation can ensure that new employees, vendors, or market expansions immediately prompt the right compliance steps,” says the spokesperson, who also underlines the importance of communication.  

“Compliance leaders need to frame requirements not just in regulatory terms but in business terms – how compliance avoids fines, speeds up launches, and strengthens partnerships.”  

From a training perspective, onboarding represents a prime opportunity to get ahead of the curve and mitigates the potential for future problems. 

“Role-specific modules deepen that understanding, and refresher courses or check-ins after onboarding help with retention,” the spokesperson adds.  

“Ultimately, aligning compliance with operations reduces risk and builds efficiency. It transforms compliance from being seen as a hurdle into being recognised as a core part of the employee experience and the business’s strategic growth.” 

But the long-awaited update is unlikely to solve some of the market’s deeper-rooted struggles relating to the proliferation of illegal gambling.

The changes were proposed by the Ministry of Finance’s investigator, Marcus Isgren, who authored the report outlining amendments designed to strengthen the regulatory framework.

If enacted, the changes – scheduled to take effect on 1 January 2027 – would represent the most significant reform of Sweden’s regulated gambling regime since its re‑regulation in 2019.

The proposal would redefine which gambling services fall under Swedish law, significantly expand the administrative tools available to regulators, and shift responsibility for compliance from the state to the operators.

A positive response to Sweden’s Gambling Act update

For a market grappling with falling channelisation since 2019, this could be a turning point.

Anna Johnson, CEO and president of Svenska Spel, the state-owned operator, celebrated the report, as have other prominent stakeholders in the market.

“The investigator’s proposals are long-awaited and welcome. We have long pointed out that the regulations around illegal gambling need to be tightened. It’s about improved protection for consumers, but also about safeguarding trust in the entire Swedish gambling market. Ensuring that gambling is conducted in a responsible and sustainable way is the very foundation of our operations,” Johnson said.

A spokesperson for the Swedish Gambling Authority, Spelinspektionen, similarly praised the government’s review. In a comment to iGB, the regulator said: “We have brought to the government’s attention the need to amend the scope of the Gambling Act with regard to online gambling. We therefore view the investigator’s proposal positively, as it strengthens our ability to work more effectively against unlicensed gambling.”

Change is positive

One of the architects of the longstanding industry pressure that led to this reform is Gustaf Hoffstedt, CEO of industry trade body BOS. Speaking to iGB, Hoffstedt struck a positive tone, even if it is unlikely the law will come into force for at least another year.

“I’m all fine with my patience right now, when I can notice that we are ticking boxes during the path. I don’t have a problem with waiting until 1 of January 2027, because, as an ex-politician myself (Hoffstedt represented the Moderate Party in the Swedish parliament between 2010 and 2015), I am fully aware that the legislative process takes that time. What was so frustrating was the initial five or six years, when nothing happened,” he said.

Hoffstedt supports the shift to a participation-based model, but his optimism is measured. The reform, he estimates, might improve channelisation – but not enough to meaningfully stem the flow of Swedish players to unlicensed sites and barely making a dent in the current leakage to the unlicensed market.

“From the industry’s point of view, we are quite certain that it will substantially contribute to a strengthened channelisation. However, substantially means maybe two or three percentage points. Even if this reform is successful, it certainly doesn’t solve the general problem.”

Consumer appeal the real challenge

According to Hoffstedt, the deeper issue is not legal enforcement, but consumer appeal. Sweden’s licensed market, he says, lacks the attractiveness needed to retain players – especially in a sector driven by thrill, incentives and fast-moving innovation, with offshore platforms offering more bonuses, more games and faster payouts.

“We have an alcohol monopoly in Sweden that is easier to uphold since alcohol is a physical product,” he notes. “But I can just take my smartphone and gamble on hundreds of illegal, unlicensed gambling companies.”

The legislative instinct across Europe, he argues, is to build legal walls – through DNS blocking, payment restrictions and repressive licensing regimes. But this alone won’t work.

“This review was a niche product. But we’re now advocating for a general, broad inquiry into how to improve the channelisation of the Swedish gambling market.”

He hopes the government will launch such a review before the next general election in September 2026. “That could be the most valuable contribution to a functioning market.”

Reframing the law: what’s in Sweden’s Gambling Act update?

Under current law, online gambling operators fall under Swedish jurisdiction if they target the Swedish market. This so-called “riktningskriteriet”, or “directional criterion,” relies on visible cues – such as use of the Swedish language, local currency (SEK), or Swedish branding – to establish intent.

However, many foreign operators have circumvented the rule by offering platforms in English, using the euro, and avoiding overt national markers. In doing so, they’ve been able to legally accept Swedish players without a licence – remaining outside the regulator’s reach.

For years, this loophole in Sweden’s Gambling Act has enabled player leakage to unlicensed operators. According to BOS, which represents 19 gambling companies operating in the market, prior to the re-regulation, channelisation was slightly below 50%. Immediately after the re-regulation it was plus 90%. But those numbers quickly dropped.

Spelinspektionen currently estimates it to be at 85%. Channelisation for online casino in Sweden is estimated at 72%–82% – a number which BOS describes as “catastrophic”.

In comparison, channelisation in neighbouring Denmark, where the market is significantly more liberal, is estimated at around 90%, with an equal distribution between different product groups.

The core reform is a shift from asking whether a gambling site is targeting Swedish users to whether people in Sweden participate in the game. Under the new law, it wouldn’t matter how the site is marketed – if someone in Sweden can play, the law applies.

From intent to activity

Effectively, the legal burden would shift from proving intent to target to proving active exclusion. Operators wishing to stay outside Swedish jurisdiction must implement “appropriate and effective measures” to block Swedish residents from accessing their platforms. Even sites with no Swedish branding or language – if accessible to Swedes – could face legal action.

These are the key enforcement shifts in the amendment:

• Responsibility: Operators will be required to take “appropriate and effective measures” to prevent Swedish residents from participating – not only to avoid targeting them.
• Exemption test: To fall outside the law’s reach, an operator must show that exclusion measures have been implemented – not merely that they do not target Sweden.
• Promotion ban expansion: The prohibition on promoting unlicensed gambling would extend to payment processors, financial services, administrative or technical support and other intermediaries facilitating unlicensed operations.
• Presumption of participation (for payments): Payment intermediaries that handle transactions linked to unlicensed gambling must assume Swedish residents are participating from Sweden unless clear evidence suggests otherwise.
• Criminal liability adjustments: The criminal provisions of Sweden’s Gambling Act would be updated to explicitly cover unlicensed gambling and the promotion thereof, under the new participant‑based framework – potentially expanding liability to those who knowingly facilitate unlicensed activity.

Is there an appetite for deeper reform?

According to Hoffstedt, a big issue is also that unlicensed operators are sophisticated enough to mimic the branding of legal operators, so that even well-meaning consumers are gambling on illegal sites without knowing it.

“That’s one of the main problems in Sweden,” he said. “And it’s actually not easy to solve, because crooks can, for instance, just steal the sign of the Swedish Gambling Authority and place it on their homepage.”

And while the government has run limited public awareness campaigns, Hoffstedt believes more could be done.

“The Gambling Authority launched one or two such campaigns, but I do think we should do more – perhaps within the industry as well. I know the Danish trade association launched their own campaign. Maybe that’s something we should look at too.”

If passed, as is expected, the new law would nevertheless mark a major turning point in Swedish gambling enforcement. But its true effect remains to be seen.

Without reforms that make Sweden’s licensed market more attractive to consumers – alongside stronger enforcement – the most muscular legislation may still prove leaky, he stresses.

“The proof of the pudding is in the eating,” Hoffstedt said.

With a general election in Sweden looming next year, the political appetite for deeper reform may soon be tested.

However, although AI has been deployed across multiple operational areas by numerous gambling businesses, there have been hurdles on the roadmap – and the technology’s revolution has endured a somewhat stuttering start so far.

Anecdotally, AI adoption has been relatively sluggish in comparison with other sectors – although context is crucial.

While chief executives in the wider business world almost universally view AI as a potentially transformational tool for their enterprise, two-thirds of them still do not have an operating and business model fit for an AI-driven world.

That’s according to Gartner, who conducted a survey that found less than 30% of AI leaders reporting that their CEOs are happy with the return on AI investment so far, although this was partly attributed to staff skillset shortfalls.

Additionally, a new study by the renowned Massachusetts Institute of Technology (MIT) revealed that only 5% of AI pilot programmes achieve sharp revenue growth, with the vast majority delivering negligible impact on the bottom line.

Inevitable growth

However, few disagree that AI’s omnipresence in business is inevitable – and sports betting will be no different.

A recently published UNCTAD (United Nations Conference on Trade and Development) report projected that the global AI market will rocket from $189 billion in 2023 to $4.8 trillion by 2033 – a 25-fold increase in just a decade.

Furthermore, even if betting operators have been relatively cautious about the impact of AI, there is growing evidence that bettors are increasingly interested in arming themselves with the technology.

A new study by YouGov found that one-third of 18 to 34-year-old bettors had used AI over the past year to help make ‘gambling-related decisions’, with a further 19% of the age group saying they will consider doing so.

When questioned specifically about utilising AI for sports betting, a whopping 43% of 18- to 34-year-old bettors said they are likely to use AI for wagering decisions in the next 12 months. Indeed, this was not an approach adopted solely by younger bettors, with a quarter of 35- to 54-year-olds in agreement.

Gauging the appetite

Given this backdrop, and the scalability challenge that every operator faces in an increasingly cluttered and competitive landscape, it is inconceivable that AI’s influence will not grow considerably in the coming years.

Real-time sports data solutions provider LSports is one company that is well positioned to gauge the increasing appetite – and need – for AI. According to LSports’ newly released Quarterly Data Report, global sports betting data consumption soared by 19% year-on-year in the second quarter of this year, largely thanks to emerging leagues and esports, illustrating the scale of the growth in the space.

LSports’ chief product and technology officer Daniel Netzer believes the trajectory is clear – and those who remain reliant on traditional, manual systems will ultimately be left to count the cost of their caution.

“Traditionally, the gambling industry has moved at a slower pace,” Netzer says. “Compared with other tech-driven sectors like cyber, the risk of losing customer trust has often outweighed the potential benefits of innovation. That’s made operators cautious, preferring stability over radical change.

“But in recent years, technologies like computer vision, machine learning, AI, data analytics and personalised engagement are forcing the industry to adapt much faster. I believe we’re reaching a tipping point where operators must be at the cutting edge to deliver superior experiences. Those relying on legacy systems will be left behind.”

Different expectations

There are, of course, countless examples of AI being utilised in the gambling industry, with early adopters of the technology having been investing in such innovations for several years.

“We already see it everywhere, from player engagement and personalisation to sportsbook and mobile apps that adapt to user preferences,” Netzer adds. “At LSports, we use AI in trading operations, fraud detection and automating repetitive, high-volume tasks.

“Where a sportsbook might once have offered 100,000 events a year, some now offer over two million. That scale requires AI at every level: player segmentation, customer service, chatbots and more.”

With AI’s tentacles stretching into an ever-increasing array of operational areas, it is only a matter of time before its deployment stretches more consistently into a customer-facing setting – particularly among younger gamblers in sports betting.

“Gen Z users are coming into sportsbooks with very different expectations,” Netzer explains. “They don’t want to sift through an entire esports or sports event – they want highlights, push notifications and data-driven insights linked to key moments.

“AI is the only way to process tens of thousands of events in real time, surface those insights and deliver them instantly to players. On the operator side, as in-play betting grows, AI will ensure prices remain accurate, risks are flagged and any anomalies are corrected in real time.”

Keeping the human touch

One challenge facing operators – and indeed any business – is to strike the right balance between innovation and maintaining control. There is a broad acknowledgment that losing the human touch would be potentially problematic, and therefore AI should be used to augment human decision-making, rather than replacing it.

For instance, Netzer believes AI sports betting will not completely replace traditional manual sportsbook systems.

“As a technologist, I’d love that idea, but I have to be realistic,” he says. “The risk of relying entirely on automation is too high. The expertise of traders and risk managers is not something AI can replace overnight.

“AI will certainly replace many traditional processes in terms of speed, accuracy and scalability. But in a highly regulated industry like gambling, a full replacement isn’t likely in the near future. What we’ll see instead is AI handling core processes – automated odds calculation, risk flagging, alerts – and surfacing insights to human experts, who then make the final calls.”

Finding the ‘sweet spot’

Netzer adds that the “sweet spot” should be to use “AI for efficiency and humans for empathy”, with the latter focusing on relationship-driven work like VIP management, dispute resolution and strategic decisions that require cultural or ethical judgement.

“AI should automate data-heavy, time-critical tasks like large-scale player behaviour analysis,” he says.

“I expect to see more human-AI feedback loops, where AI provides insights and humans validate and contextualise them. That way operators achieve operational excellence while still building trust through human engagement.”

Netzer cites cybersecurity and healthcare as examples of sectors that are navigating the challenge successfully.

In cybersecurity, trust and customer success depend on strong human engagement, while the software itself has to be “bulletproof”. Meanwhile, he adds, gambling can learn about transparency and ethics from healthcare, with operators building trust through responsible practices to ensure data is safe, compliance is rigorous and customers are protected.

‘Gen Z users are coming into sportsbooks with very different expectations’

Future-proofed for AI

For sportsbooks planning ahead for such opportunities, the priority is to ensure they have a flexible, data-rich infrastructure so that their platforms are future-proofed for sports betting AI.

“Operators need unified data sources, high-quality data, cloud-based architectures for rapid deployment and modular systems where AI components can be added or swapped easily,” Netzer explains.

“At LSports, we’ve spent the past three years future-proofing our infrastructure and architecture so we can adopt new technologies quickly and deliver benefits to clients as soon as they emerge.”

Netzer adds that removing restrictions around official data rights would be a significant step, unlocking opportunities for innovation.

In July, LSports CEO Dotan Lazar insisted that the exclusive agreements that underpin the sports betting data battleground need to be scrapped if the space is to become sustainable for sportsbooks, sports rights-holders and the data providers themselves.

“It would be similar to what we’re seeing in generative AI, where open-source models have driven incredible innovation,” Netzer explains. “In just six months, the progress has been equivalent to a decade of advancements in other technologies.”

Embedded at every level

With next-generation solutions on the horizon, AI is set to become a foundational layer in every sportsbook’s strategy, from pricing models and personalisation to real-time engagement and predictive analytics.

The onus is on sportsbooks to establish the infrastructure, nurture the talent and build the trust required around emerging technologies to maximise the opportunity at hand. 

Five years from now, Netzer believes AI will be “embedded at every level” of sports betting – from automated trading desks settling bets in milliseconds to hyper-personalised customer journeys that anticipate needs before they are expressed.

Responsible gambling is also expected to shift from a reactive to predictive footing, so that operators can identify at-risk players early and intervene appropriately. Meanwhile, compliance will become continuous and automated, reducing errors and improving reporting.

Netzer is particularly excited by the opportunity to leverage AI in combination with other technological innovations.

“With advances in augmented reality and virtual reality, fan engagement will be far more immersive,” he says. “AI will be invisible to the user, but indispensable as the ‘co-pilot’ behind the scenes.”

Daniel Netzer, chief product and technology officer at LSports

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.”

The Nevada Gaming Control Board announced on Friday that the state reaped $1.22 billion in gross gaming revenue, a 5.5% increase over last August. After a slow FY25 snapped a streak of three straight fiscal year records, Nevada is about 5% ahead of last year’s pace.

Clark County, which includes Las Vegas and surrounding areas, was up 5% YoY as a whole. However, the performance of individual sectors is indicating that the Las Vegas Strip is reclaiming its dominance over the locals market, which enjoyed massive success over the last 18 months as a value proposition to the increasingly costly Strip experience.

On the Strip, America’s gaming capital was also in the 5% growth club, jumping to GGR of $679.3 million. Its year-to-date performance is coincidentally also up 5%. Conversely, the locals market fell 1% to $142.3 million, and is down 2% for the fiscal year, the worst of the state’s major markets. For much of 2024 and early 2025, those roles had been reversed.

Baccarat performance on the Strip has become the key driver for the region and, subsequently, the state. In August, the Strip won $114.4 million on the game, a 51% upswing YoY. That is more than any state sector generated as a whole, except for the Las Vegas locals market. It has become common to see massive month-to-month swings in baccarat; for the previous three months, the Strip is up 29% on the game, but for the previous 12 it is down 3%.

Visitation numbers continue to slide in 2025

While the increasing gaming revenue is a positive sign for the industry, the continued lag in Las Vegas tourism is what has captured national headlines for months.

According to the Las Vegas Convention and Visitors Authority, the city’s visitor volume was down 6.7% to 3.1 million in August. Every month in 2025 has seen a YoY visitor decrease of at least 1%, with most ranging from 5%-10% or more. The last increase of more than 1% came in September 2024.

Convention attendance, which had been the lone bright spot for the region this year, was also down 8% because of rotating show schedules. However, big upcoming shows like the Global Gaming Expo in October, the Consumer Electronics Show in January and the industrial Con/Agg show in March will boost future totals.

Harry Reid International Airport announced on Wednesday that domestic and international air traffic through Las Vegas declined 6% and 3.7% in August, respectively. The latter has been the biggest point of concern for stakeholders, especially as US President Donald Trump continues to ruffle feathers with aggressive tariff hikes and foreign policy.

Historically a top feeder market, Canada has been especially affected, seemingly in part from Trump’s “51st state” comments earlier this year. Traffic from WestJet and Air Canada plummeted 33% and 40% in August, respectively. Mexican airlines like Volaris and VivaAerobus performed better by comparison, but this was offset by huge struggles domestically from bankrupt budget carrier Spirit Airlines (down 46%).

Sin City’s glass half-full or half-empty?

The confluence of business and travel factors make it increasingly difficult to analyse Las Vegas.

On one hand, gaming revenue is up and businesses are doing well, while most operators posted solid Q2 results with optimistic future outlooks. The AGEM Index, an index of stocks from 10 leading gaming suppliers, was up 5% month-over-month in August and 32% YoY.

Additionally, numerous ongoing projects are expected to contribute to future success. The former Mirage will reopen as the Hard Rock Las Vegas in 2027 and add more than 3,500 rooms back to the Strip.

Work has begun for the Las Vegas A’s new Major League Baseball stadium on the Strip, with another resort primed for the same lot. The third annual Las Vegas Grand Prix, a catalyst international Formula 1 racing event, returns in November. Off the Strip, locals-focused operators are enjoying their best stretch of performance in several years.

On the flip side, the factors that fuelled the Las Vegas tourism slide do not appear to be fading. The Federal Reserve cut interest rates one time in 2025 and cautioned against future cuts. On Friday, the personal consumption expenditures price index reported a 2.7% YoY increase in August, the highest monthly increase since February.

Operationally, casinos are paying markedly higher labour costs as new Culinary Union contracts take effect this year. Overall, union wages have gone up 10% and will increase by 32% over the life of the contracts. Most are also now leasing their real estate from REITs and are subject to annually increasing rents.

LVCVA looks to reinvigorate Las Vegas tourism

While CEOs and local officials largely downplayed these concerns earlier this year, most now acknowledge at least some uncertainty for Las Vegas. However, MGM CEO Bill Hornbuckle said at a recent Bank of America conference that it is on the industry to change the narrative.

“To the idea that Las Vegas is dead, I would say this: We are putting a push on, because we let the narrative get away from us, in the context of value,” Hornbuckle said. “So we are out pushing that Las Vegas is a huge [value] and remains a huge value for consumers at all levels.”

The LVCVA launched a multimillion-dollar ad campaign to mixed reviews and is rolling out new deals. This week was the agency’s first-ever city-wide promotional discount, the “Fabulous 5-Day Sale”. Under the programme, operators and businesses from around the city pledged more than 100 deals.

In recent weeks, agency reps also travelled to Canada in the hope of coaxing would-be guests to come back to Sin City. LVCVA CEO Steve Hill said at the time that a lot of Canadians “are not happy with us right now” and that “we understand they may not be ready” to return. Overall, though, Hill is leading the optimism for the region.

“I’m betting on Vegas,” Hill said in August, per CDC Gaming. “Las Vegas is still the Entertainment Capital of the World. We’re all confident in the future of this city. We’ve met over the last couple of weeks with virtually every property and we’re excited about what we’re hearing. The city is taking steps to address (the downturn).”

Tapped by the White House to head the US Commodity Futures Trading Commission, Quintenz has seen his nomination stall amid urgings from the Winklevoss twins to delay the process. If Quintenz is passed over, the move could deliver a major blow to prediction market supporters given his association with Kalshi. Quintenz, a former CFTC commissioner, has largely indicated that sports event contracts fall under federal jurisdiction, rather than with individual states.

Ahead of next Monday’s anticipated roundtable on cryptocurrency and prediction market regulation, speculation has intensified that Quintenz will be replaced by the White House. Last week, Bloomberg reported that US President Donald Trump is mulling potential replacements for the position.

So who might be the next CFTC chair?

Could the new CFTC chair be a former director?

Josh Sterling, a partner at Washington DC-based firm Milbank LLP, is being vetted by Trump’s administration, Semafor reported this week. For prediction market detractors, Sterling would not be the preferred choice.

For one, Sterling has represented Kalshi in numerous cases over the past 18 months. At Jones Day, Sterling’s previous stop, he represented the prediction market in KalshiEx LLC vs CFTC. There, attorneys for Kalshi argued that so-called Congressional Control Contracts should not be prohibited by the derivatives regulator.

The trades gave customers the ability to predict which political party would gain control of the Senate and the House of Representatives in the 2024 election. Kalshi eventually won a stay in US District Court that allowed the site to offer contracts on the presidential election. Weeks later, Kalshi began listing the contracts on sports.

What Sterling said at gaming legislation conference

In July, Sterling made an appearance on behalf of Kalshi at the National Council of Legislators From Gaming States summer meeting in Louisville.

At the event, the former CFTC director mused that it is not up to the courts to decide whether market participants are using the contracts to engage in speculation or hedging.

Sterling also drew a comparison between sports contracts and derivatives on commodities such as WTI oil futures. As of 2025, no states have imposed regulations on wheat derivatives, he noted.

“How many contracts are event-dependent – oil, wheat, interest rates, or foreign exchange rates?” Sterling told iGB following the panel. “This is an industry-wide issue that has very little to do with events.”

A Sterling appointment as CFTC chair should largely be viewed as a favourable development for prediction markets. As an agency director, Sterling oversaw approximately 3,300 financial firms that registered with the CFTC to participate in the global derivatives market, according to his LinkedIn page.

During Sterling’s tenure (2019-21), he expanded the agency’s oversight, examination and enforcement referral programmes with those firms and completed more than 60 major rule and relief initiatives, the attorney wrote on LinkedIn.

Beyond Sterling, there are strong indications that the other candidates are under consideration for their experience in crypto matters.

Crypto-friendly lawyer under consideration

In comparison with Sterling, Mike Selig’s expertise on prediction market litigation and regulation is more limited. The SEC appointed Selig as chief counsel of its newly Crypto Task Force in March, one tasked with “creating workable solutions to difficult crypto regulatory problems”, according to then-SEC Commissioner Hester Pierce.

Before joining the SEC, Selig served as a partner at Willkie Farr & Gallagher, a leading international law firm.

Selig, who began his career as an intern at the CFTC, is a protege of former chair Chris Giancarlo, the author of 2021 book “CryptoDad”.

Notably, the Winklevoss twins made an appearance at a Manhattan event celebrating the book launch. Giancarlo, who lauded Selig for the appointment, provided an insider’s account of the rise of cryptocurrencies in the book.

While with Willkie Farr, Selig discussed leveraged trading activity as futures contracts in a 2022 memo. If no exception applies to such transactions, then retail commodity transactions must be traded on a designated contract market, the memo states. In CFTC parlance, a designated contract market is also known as a prediction market. Opponents of prediction markets likely would prefer the appointment of Selig over Sterling.

Another CFTC chair hopeful from crypto space

As with Selig, Tyler Williams’ bailiwick is crypto regulation, not prediction markets. In February, the Treasury Department appointed Williams as a counsellor to Secretary Scott Bessent on digital assets and blockchain technology policy. Prior to joining Treasury, Williams served as global head of policy at Galaxy Digital, a digital assets and data centre infrastructure business.

Williams’s views on prediction markets are largely unknown. In June, Williams spoke to FIA Market Voice, a futures’ industry podcast.

The conversation centred on stablecoins, digital assets and future use cases of blockchain technology. Prediction markets were not covered.

Also this summer, Williams sat down with TRM, a blockchain intelligence company, for an extensive chat on crypto policy. The discussion focused on a landmark White House report on digital assets released weeks earlier.

The 166-page report referenced DCMs 10 separate times, but it did not mention sports event contracts.

Other trading regulator chair candidates

Earlier this week, an attorney from crypto law firm Brogan Law wrote in a blog that SEC Chairman Paul Atkins has emerged as a potential candidate. The author, Veronica Irwin, wrote that multiple sources told her that Atkins is “first in line” for the position.

Such an appointment would be unlikely under the auspices of the Securities Exchange Act. According to the 1934 law, the SEC wrote that “no commissioner shall engage in any other business, vocation or employment than that of serving as commissioner”.

Caroline Pham, the interim chair of the CFTC, already announced that she intends to leave the commission when a successor is appointed. Former US President Joe Biden nominated Pham to the commission in 2021.

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.”

For most of us, we get the joy of basking in that feeling for a while. Following the event, my company, iGP, was clearly on an upward trajectory and I was privileged to lead a highly capable team into exciting waters. 

Yet, within 24 hours of this year’s event finishing, I found myself in the starkly contrasting environment of a Barcelona police station.

I won’t go into great detail about the petty theft I had been a victim of. While this was no doubt problematic, it was secondary to the profound sense of violation and loss I had suffered. The small items, the laptop, the phone, the money, these were all easily replaceable. However, the loss of a collection of personal mementos, accumulated over years of travel that remind me of home and my loved ones, hit me like a ton of bricks.

These kinds of experiences inevitably prompt a period of self-reflection. Leadership is a daunting and often tiring task that can destroy your spirit as quickly as it can lift it.

The constant cycle of highs and lows, the intricate project planning, the ongoing professional development, the never-ending conveyor belt of client and supplier meetings, not to mention the need to maintain personal relationships with your team. The thought of a simpler, less-demanding path always lingers in my mind, and I often ask myself: “Is it all worth it? Why do I do this?” 

The underlying principles

The modern-day, LinkedIn-friendly version of a CEO is all about approachability and creating a familial and open work environment. However, the reality for many CEOs is very different.

The sheer mention of the word CEO can spark a reaction in people. Colleagues will inevitably act differently when you are around. Upon achieving my promotion, it became apparent that people were conscious of CEOs in a way I had never experienced before. 

This, in itself, can feel isolating. The ability to shift resources, alter policies, adjust budgets and make critical hiring and firing decisions carries a profound responsibility and the pressure of this can feel enormous. There is an unspoken rift between CEOs and their team, no matter how hard they try to bridge this gap. 

Of course, while people may react differently to you, a professional image is a major part of your job. You need to ensure you smile at everybody, have your office open for discussion at all times and never show any signs of weakness. Bottling up negative thoughts and stress becomes a part of your role as a leader, and ensuring this does not manifest in other aspects of your life can be a challenge. 

This can all sound terrifying and, in truth, sometimes it is. However, these pressures also provide you with the power to create and to inspire. Through my role as CEO, I have achieved things I never thought I could, and that desire to build something new and break boundaries is ever-present.  

This feeling is unrivalled in the professional world – it is something that keeps me focused despite all the challenges and the isolation that the role presents. The company has become like a child and I feel an immense sense of pride whenever we achieve any significant milestones. 

The hidden sacrifices 

Through all the C-suite level professionals I have dealt with, it has become clear that the journey to becoming a CEO, or any C-suite level leadership position in iGaming, is rarely linear or effortless.

It involves years of dedicated work and perseverance, as well as a lot of personal sacrifices. For me, my journey to the top began on the ground floor, gaining invaluable insights from working in multiple different jobs across the industry. 

This hands-on experience has proved crucial as I have ascended the corporate ladder. Thanks to it, I could take Bragg Gaming, formerly Oryx Gaming, from a small, agile team to a publicly listed company with over 200 individuals on its payroll, establishing myself as a respected name within the industry in the process. It has since continued this meteoric rise, now having over 500 staff members and counting. 

Advice to aspiring leaders

Over the years, I have learned and am continuing to learn that leadership is a multi-faceted role. It is undoubtedly a privilege and a responsibility, but it can also become a burden.

The sense of isolation often associated with leadership stems not from a lack of colleagues but from the unique weight of the responsibilities carried and the personal sacrifices often made behind the scenes. You need to be able to make decisions that nobody else wants to and this will often come at a big cost to yourself and those around you. 

To those aspiring to leadership positions: ensure that your ambition is driven by a genuine desire to build something meaningful and to make changes. If you are driven purely by money, then you are going to find those long nights even more difficult. Ask yourself, are you prepared for the profound impact that the role will have on your professional and personal life?

In short, make sure you have a definitive reason to keep you going, because otherwise, you will be asking more questions than you will find answers for.

Jovana Popovic Canaki is the CEO of iGP, a leading iGaming platform and aggregator powering operators worldwide with secure, scalable and innovative technology. With over a decade of industry experience, she has held senior roles across operations, commercial strategy and partner success.

Before iGP, Jovana was VP partner success at Aspire Global (NeoGames Group, now part of Aristocrat), CEO of Masterpiece Gaming and director of iGaming platform and services at Oryx Gaming (Bragg). Renowned for her strategic vision and operational leadership, Jovana is also one of the few female CEOs leading a major B2B provider, setting an example for the next generation of leaders in iGaming.

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.”

The unidentified associate hit a five-leg football parlay for $220,000, according to Hanson, delivering the former tight end one of the sharpest defeats in his young bookmaking career. The loss planted the seeds for Hanson’s association with the cartel, triggering a downward spiral that nearly cost him his life.

Soon thereafter, Hanson began moving vast quantities of cocaine to Australia, engaging in a pattern of high-risk activity that placed him under the radar of international authorities.

Hanson hit rock bottom in 2017 when a judge sentenced him to 255 months in federal prison for running an international drug trafficking, sports betting and money laundering operation. But ever the entrepreneur, the USC business major conceived an ice protein popsicle company from behind bars. Hanson also had his sentence commuted in 2024 in exchange for cooperation with Australian authorities.

Months after his release from a Los Angeles halfway house, Hanson’s story is being chronicled by Amazon Prime in “Cocaine Quarterback”, a three-part docuseries that debuts on Thursday. Directed by Jody McVeigh-Schultz, the series is produced by Mark Wahlberg’s Unrealistic Ideas.

“I shouldn’t be here today. I should probably be dead but someone is looking after me from upstairs,” Hanson told an audience in person at Sunday’s premiere viewing. “But I am blessed for everyone who has participated in this journey.”

Hanson’s transition from walk-on to kingpin

A former Trojans volleyball player, Hanson won a national championship with USC in 2005 after joining the football team as a walk-on. Moments after USC’s 55-19 thrashing of Oklahoma, Hanson stood directly behind coach Pete Carroll on the championship podium. As Carroll thrust a crystal football trophy into the air, Hanson celebrated with his friends on the star-studded team.

While Hanson rarely made it onto the field, he received team MVP for his contributions off the gridiron. Reputed to be the social king of the team, Hanson supplied teammates with steroids and recreational drugs, according to federal prosecutors.

A scene in the opening episode depicts Hanson acting as a mule as he snuck hundreds of dollars in drugs past a border agent by concealing them in his pants.

At USC, Hanson befriended the team’s top stars, including Heisman Trophy winners Matt Leinart and Reggie Bush and running back LenDale White. White made an appearance in the three-part series, while Leinart attended Sunday’s premiere in Santa Monica. Although Leinart declined to comment, his appearance exemplifies the team’s loyalty toward Hanson. Brandon Hancock, a fullback on the national title team, visited Hanson several times in prison.

“I would have him in my foxhole any day,” Hancock told iGB.

After Hanson’s football career ended, he worked briefly as a real estate developer, a job that dried up during the era’s financial crisis. Soon after, he connected with Macho Sports, an illegal sportsbook that became the target of an FBI investigation. Around that time, Hanson met Matt Bowyer, another California bookie.

Hanson’s relationship with Bowyer

Hanson worked initially as a sportsbook agent with Macho Sports, a multi-national gambling operation, before branching out on his own. The FBI arrested 14 individuals connected with the ring in 2013, while foreign counterparts arrested co-founder Erik Portocarrero in Norway. By then, Hanson ran his own book, BetODog.com.

Based on a recommendation from a bookie, Bowyer placed a $75,000 bet with BetODog, a bet he won. But days later, Bowyer endured a disastrous week dropping $100,000 on BetODog, while losing heavily to customers on his own website. When Hanson demanded immediate payment, Bowyer gave him his home address. Impressed by Bowyer’s chutzpah, Hanson not only paused the debt, he made Bowyer an offer to join his gambling enterprise.

“I’ve never met anyone who had the balls to talk to me like that, giving me their home address. I came here so we could meet face to face,” said Hanson, according to “Recalibrate”, Bowyer’s 2025 memoir. “We’ll work it out. I think we can do some business together.”

The two bookies’ mutual respect led to a longstanding friendship that continues today, Bowyer wrote. While Hanson was a neophyte in the booking industry at the time, Bowyer had several years of experience under his belt. Bowyer, who attended Sunday’s premiere, indicated that he provided Hanson tutelage to help him learn the ropes of running his own book.

Bowyer, who accepted $325 million in bets from baseball star Shohei Ohtani’s ex-interpreter, pleaded guilty last year to three federal charges, including transactional money laundering.

Bowyer had visited Hanson in prison, bringing him a care package and some cash for the canteen. Now, the roles are reversed as Bowyer is set to report to prison next month to serve a sentence of approximately one year.

Wild bets

Bowyer and Hanson often engaged in high-stakes wagering on the golf course, at times betting upwards of $10,000 a hole.

In one notable incident, Bowyer got up-and-down from a bunker on the par-3, 17th at Pebble Beach, winning $85,000 from Hanson. The two also competed in a 40-yard dash at Shadow Creek in North Las Vegas, another bet won by Bowyer.

“If we went 20 metres farther, he would have won,” Bowyer told iGB.

The bet paled in comparison to the six-figure win recorded by the cartel figure on the aforementioned parlay. The cartel associate closed out the bet with a win on the Raiders, Hanson said in an interview with iGB.

Hanson’s business acumen apparently impressed that associate enough to recruit him to his criminal business. Hanson began by moving money throughout California for the cartel before he assisted with operations in Australia, where he sold cocaine at a threefold premium to the rate in the US. At one point, Hanson believed he would be killed by the cartel after a botched transfer from the Star Casino in Sydney resulted in the loss of $2.5 million.

Hanson’s risky operations came to a head on 9 September 2015 when the FBI arrested him on a golf course in Carlsbad, California. One member of Hanson’s crew, the late Charlie D’Agostino, committed suicide when faced with potential time in jail. As a close friend dating back to high school, Hanson said he still carries immense guilt from D’Agostino’s death.

Resonating with the public

Others in Hanson’s betting enterprise, including Bowyer, were unaware of his drug business, but there were months of uncertainty whether they would be implicated in the probe.

Ultimately, the government found that Hanson’s downfall brought down others. Their association with Hanson “turned gamblers into bookies, drug addicts into dealers, and friends into felons”, the US Attorney’s Office for the Southern District of California wrote in 2017.

While Hanson notes in the Amazon series that approximately 20 NFL players wagered on his site, he did not mention any by name. Ahead of the premiere, Hanson sat down with iGB for a 90-minute one-on-one interview. Asked what main takeaway viewers should glean from the series, Hanson responded that it will show the public that the events actually did occur.

“It would discredit Unrealistic Ideas if they didn’t tell the truth – everything has to be spot on,” Hanson said.

Hanson is in the middle of a major rehabilitation project. Chiselled with the frame of a bodybuilder, Hanson has teamed with several Miami-based investors to launch California Ice Protein, a frozen popsicle company. While incarcerated, Hanson learned how to mix the concoctions using a janitorial mop bucket.

Hancock, the former fullback from USC, believes that Hanson is making positive steps on the road to recovery.

“It doesn’t stop here, I can’t wait for the next chapter for him,” Hancock told iGB. “The fact is he circumvented all of these things and he’s still here to breathe. I know in his heart he’s a good man – he’s reformed and atoned.”

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.”

Across European markets, governments are imposing or proposing steep gambling tax hikes on operators, many of which last year contributed €3.8 billion in taxes to the European economy as a whole, according to the European Gaming & Betting Association (EGBA).

In most cases, policymakers have said they are turning to the sector to help plug budgetary holes. And gambling is a seemingly easy target for governments that can play into the public health argument against the industry.  

“Gambling has traditionally been viewed as a good source of relatively painless government revenue. Tax policies in European countries are also increasingly focusing on excise taxation, particularly environmental and public health excise duties, to raise much-needed public revenue,” explains Virve Marionneau, associate professor and tax expert, as well as director of the Centre for Research on Addictions, Control and Governance at Helsinki University. 

However, the returns from these gambling tax policies are uncertain and are likely to negatively affect the broader sector. So, what lies behind the political decision-making? 

Netherlands gambling tax hike impact already being felt

Let’s first take a look at what’s going on in the Netherlands. Lawmakers there approved a sharp increase in gambling tax, from 30.5% to 34.2% of GGR, starting in January 2025, with a further rise to 37.8% in 2026.

The Dutch Treasury had expected an additional €200 million in tax revenue annually, but figures from the licensed Dutch online gambling providers, represented by VNLOK, suggest that GGR in the first half of 2025 will be down 25% compared to the previous year, resulting in a shortfall of €200 million. 

Both VNLOK and the Dutch regulator KSA have expressed concern about the government’s plan for a further tax increase. 

When taxes increase on gambling operators, they often pass additional costs on to their customers. This could manifest in higher betting odds, higher fees or less attractive bonuses and promotions. As a result, players may turn to the more lucrative but also riskier unlicensed market. 

“The tax hike will have a negative impact on our market. Channelisation rates will decrease. We are worried about that, because we believe a strong legal market is key in combating illegal offerings,” Marloes Derks, spokesperson for KSA, tells iGB. 

Despite this, the Dutch government has stated that its tax policy will not change, even though expected revenue is falling short of expectations.

In accordance with budgetary rules, windfalls and shortfalls in tax revenue are reflected in the balance after policy is adopted. Therefore, the revenue shortfall, from this perspective, is not seen as grounds for a compensatory policy, according to State Secretary for Taxation Eugène Heijnen, who addressed the Dutch parliament earlier this month. 

A strategy doomed to fail 

The Dutch tax hike has drawn attention from other markets. 

“As I understand it, the message from Dutch politics is that they consider the concept of channelisation to be irrelevant. They simply ignore it in favour of various moral views on gambling. And then, of course, it becomes easy to raise taxes,” says Gustaf Hoffstedt, secretary general of BOS, the Swedish Trade Association for Online Gambling. 

He observes a trend across Europe of tightening conditions for licensed gambling companies, with tax increases being just one example. 

“An important component of that trend is the lack of interest in how such deteriorations affect the ability of licensed gambling companies to keep out unlicensed competitors,” Hoffstedt says. 

In his home country of Sweden, the Ministry of Finance was expected to raise €50 million a year through an increase in tax from 18% to 22% on GGR, effective from July 2024. But Hoffstedt – who calls the political reasoning behind the tax hike “profit hunger” – believes those figures are more likely to be around €20 million-$40 million. And it will come at a cost, he adds. 

“Reduced channelisation and around a thousand new gambling addicts as a result of the transition from licensed to unlicensed gambling,” he predicts. 

Trend across Europe 

Looking toward Eastern Europe and Tier 2 markets, Romania has imposed a 27% GGR tax on online operators from July 2025, up from 21%, and is also introducing higher licensing fees.

In the Czech Republic, the government increased the GGR tax for online betting, bingo and poker from 23% to 30% in 2024 to fund public spending. 

In Slovakia, where activity in the online casino market rose by almost 30% year-on-year in 2024, Environment Minister Tomáš Taraba has called the gambling industry “profiteers of human misery”. The government has proposed raising the tax rate for online gambling to 30%. 

Meanwhile, in Germany, every euro wagered on slot machines and poker faces a 5.3% levy. Because of this rule, up to 80% of online slot play now takes place with unlicensed operators, estimates the German Online Casino Association. German online casino tax revenue saw a decline of 16% in 2024 and, since 2022, there has been a 47% drop. 

France is already one of Europe’s most expensive markets to operate in, but the government is planning to expand GGR taxation and charges. It aims to generate an additional €1.6 billion in gambling-related revenue. 

“A few European jurisdictions like Malta and Estonia stand out with exceptionally low tax rates to attract onshore gambling operators. Other countries, like France, use high tax rates as a means to control entry to the market. The aim of French gambling policy has been to keep the number of licensees low,” says Marionneau, tax expert from Helsinki University. 

UK gambling tax decision will affect the whole sector 

And then there is the UK – Europe’s biggest market for online gambling – and for a long time, known in the industry as the voice of reason in Europe when it comes to a balanced approach to gambling regulation. However, for the industry, that perception may be about to change.

In April, the UK government proposed bringing the current three-level tax rate system for remote gambling under one consolidated rate. 

The industry has expressed concerns over the changes, believing it could result in all gambling verticals facing a 21% duty.

Several voices are pushing for a much bigger tax increase on the gambling sector. Among them, former Prime Minister Gordon Brown and the Institute for Public Policy Research (IPPR). They argue that a tax increase on the sector should be used to help fight the rising child poverty in the UK.

IPPR has recommended increasing remote gaming duty from 21% to 50%, and machine games duty from 20% to 50% of operator profit. General betting duty would rise from 15% to 25%, estimating that this could generate around €1.5 billion. 

The UK government is expected to present its plans in the 2025 autumn budget on 26 November.

UK government sending mixed signals

The UK’s Betting and Gaming Council has called the proposal “reckless” because it will drive players toward the unlicensed market, a claim that IPPR has chosen to dismiss. 

“There appear to be three drivers here: the economy, policy and politics. HM Treasury keeps all taxes under review and we know that it has been looking at online gambling for a while. It may take the view that the online gambling market can sustain higher levels, which will be unresented by the population at large,” says Dan Waugh, partner at Regulus Partners. 

The government is sending mixed signals regarding its attitude toward the gambling industry, and this has raised alarm bells, he says. 

“The Department for Digital, Culture, Media and Sport (DCMS) adheres to the traditional view that gambling is a legitimate pastime that can involve negative health consequences. It therefore favours a balance of freedom and protection. The Department of Health and Social Care, on the other hand, perceives gambling as the ‘new tobacco’ and wishes to do various unspeakable things to it enroute to prohibition.  

“Prudent operators will be looking at how they can mitigate the costs of any tax increases.” 

Whatever happens in the UK will affect the entire market in Europe, says Hoffstedt. 

“The UK, together with Denmark, has been able to show that it is possible to combine high channelisation with high consumer protection. If channelisation in the UK declines in the future, it will negatively affect all gambling markets in Europe.” 

Hoffstedt hopes that governments will eventually recognise the negative consequences. 

“In the end, it becomes obvious to everyone that a gambling market that lacks consumers – when they’ve gone to the unlicensed gambling market – lacks relevance and legitimacy. It is a strategy that is doomed to fail in every jurisdiction that uses it.” 

Of the eight total proposals vying for three licences, the first two to come to a vote — Caesars Times Square and Avenir — were rejected swiftly by their appointed community advisory committees (CAC). Both six-member committees voted 2-4 on the projects, below the threshold of four “yes” votes needed to advance to the next round.

The two CAC meetings, held about an hour apart at the same location Wednesday, lasted less than 30 minutes combined.

Positive votes would not have been the final step to licencing, as projects that move on still must clear the New York Gaming Facility Location Board and the state’s gaming commission. As such, some bidders might have sensed that CACs would approve most projects to avoid the burden of decision-making or to keep the pool of applicants as wide as possible.

Yet after last week, the remaining bids up for consideration by end of the month face new uncertainty. Freedom Plaza is up for debate Monday, while MGM Empire City and Resorts World NYC receive consideration Thursday.

(Editor’s note: Freedom Plaza became the latest voted down on Monday.)

Which NY casino projects face next votes?

Of the three bidders next to face votes, Freedom Plaza is perhaps the most at risk based on the first two rejections. Despite the fact that the $11 billion mixed-use complex is the largest by cost and scale, its CAC hearings were similar to Caesars in terms of length. The level of pushback was perhaps not quite as high for Freedom Plaza, but was still present.

For Caesars , the Broadway and theatre industry were opposed; for Freedom Plaza, it was residents in the immediate area. Neither Caesars nor Avenir appeared to have a marked advantage in local support throughout the process, which could be an ominous sign based on the first two votes.

By contrast, MGM and Resorts World might still have reason to feel confident. The strength of those two bids has been perhaps the consensus opinion among industry observers in the downstate race. Both are existing video lottery terminal facilities with significant speed-to-market advantages over greenfield projects and both established years worth of community relations and partnerships. Resorts World’s hearings were glowingly positive, while MGM’s featured a moderate level of local opposition.

In theory, the state could grant those two licences to ensure that tax revenue comes in as quickly as possible, and then decide on a preferred greenfield from those bidders approved by their local committees. Yonkers Mayor Mike Spano has been advocating for this approach for several months.

Upstate licence outcome an example of unpredictable nature

But New York casino stakeholders have learned that outcomes can be uncertain, with the upstate process being the chief example. That saga began in 2013, when voters approved Proposal 1. This amended the state constitution to eventually allow for up to seven commercial casinos throughout the state.

Four of the licences were earmarked for upstate, with the remaining three left for the downstate region. Upstate went first, in efforts to boost that area’s economy. The region was split into three main development zones outlined in the graphic below.

One consultant involved with both the upstate and downstate processes who spoke to iGB on condition of anonymity explained that the consensus opinion at the time was that two of the four licences would go to the Catskills/Hudson Valley zone, that being the closest to New York City. There were nine bidders in the zone as a whole and six within Orange County specifically, out of 16 total.

But ultimately state regulators threw a curveball and Orange County was passed over entirely. Instead, three licences were awarded in 2015 to Rivers Casino & Resort in Schenectady, Lago Resort & Casino in Waterloo and Montreign Resort Casino in Monticello, which later became Resorts World Catskills. Tioga Downs Casino Resort in Nichols was also recommended for licensure by the GFLB but was not awarded its licence until 2016.

This time, the source noted that the downstate request for applications (RFA) asked bidders for projections based on scenarios where one, two or three licences were awarded. This precedent, added to the scenarios outlined in the RFA, might give more credence to the idea that not all three downstate licences will be awarded, or perhaps not at the same time.

State faces budget gap, but other factors remain

One key difference between the two cases, however, is the potential benefit to the state. For the upstate casinos, the licence fee was $70 million. The downstate licence fee is a more robust $500 million.

The question of whether decision-makers would decline to award all three licences and miss capitalising on $1.5 billion in immediate combined income, regardless of other issues, remains open. New York faces a cumulative budget gap of $34.3 billion through fiscal year 2029.

At the same time, there are additional external factors that must also be taken into account. Macroeconomic fears related to rising US tariffs and reduced international travel could result in added construction costs and longer timelines for any projects that would be approved, with declining visitation once they’re open.

This is coupled with the fact New York City is headed for a significant mayoral election in November. Democratic socialist candidate Zohran Mamdani is considered a heavy favourite, and business leaders do not know how his policies could impact the city’s economy, although he has said he will not block casino developments.

So you’re saying there’s a chance …

Las Vegas-based consultant Brendan Bussmann of B Global Advisors told iGB there is “definitely a chance” that the downstate licencing outcome is a surprise, either in the number of licences awarded or to whom.

He pointed to Japan as an example, which started its licencing process in 2019 with great enthusiasm and three available licences only to issue one thus far, to MGM Osaka in 2023.

Bussmann noted that the Empire State is a particularly challenging gaming market, with very high tax rates for both mobile sports betting (51%) and casino gaming (10-30+%). Caesars, Sands and Wynn were on the short list of operators capable of executing such a high-level New York casino project, and all are now out of contention.

“This has been an extraordinarily lengthy process, and yes it is complex, but when you have over 1,000 questions in your RFA, it really makes you scratch your head,” Bussmann said. “Have we done this process right from the beginning? This process seems designed to weed everybody out and hopefully get down to three in the end.”

Do quick rejections show what’s next in New York casino race?

Each CAC had until 30 September to vote, yet the first two decisions were made with almost two weeks to spare. Both Caesars and Avenir submitted last-minute amendments in the days prior to their votes, but none were accepted by the CACs.

Some members disagreed with how the process unfolded.

Angel Vasquez, an Avenir CAC member, said its vote should have been postponed because conversations with the applicant were “incomplete”. Those conversations were ongoing up to the previous night before the vote, he said.

Laura Smith of the Caesars CAC and Nabeela Malik of Avenir’s, appointed to their committees by New York City Mayor Eric Adams, came to their votes with identical statements alleging that certain unnamed CAC members requested to move the votes up, despite the extra time available for deliberation. Neither the names of the members who requested this nor alternate vote dates were revealed.

New York casino licence denial surprise to Caesars, partners

Following the Caesars vote, SL Green CEO Marc Holliday confronted committee members directly, saying his company’s bid “met the standard and then some”. He applauded the two yes votes as the only ones “with courage to stand up”.

“Go run and hide, because what you did, the benefits you denied this community and this city and state, you have to live with that history forever,” Holliday shouted as members filed out.

The Caesars Times Square group then put out a fiery joint statement, calling the bid a “visionary proposal that aimed to address long standing challenges through meaningful private investment”.

“We’ve built strong relationships with a community that is eager for progress, and we hope that those who opposed this project — both in the public and private sectors — will now bring the same energy and resources to solving the very real challenges facing Times Square,” the statement concluded.

Caesars itself had a more muted response in a statement to iGB, extending “sincere gratitude” to the CAC for their “thoughtful consideration throughout the evaluation process”. The company pointed to its ongoing and future operations in the state.

“While we are disappointed by the outcome, our commitment to New York remains unwavering,” Caesars said. “We are proud of our strong partnerships across the state as anchored by our Caesars Sportsbook platform, where we continue to invest and innovate to serve New Yorkers.”

Avenir CAC made ‘significant request’ prior to denial

The Avenir rejection also seemed to surprise its stakeholders.

On the day of the vote, the group issued a statement reiterating the concerns that Vasquez voiced to the committee. The statement alleged the CAC had “made a very significant request” at 10:50pm the previous night, without proper time for consideration. This, they said, “taints the CAC process” and should have postponed the vote.

On the state’s website, the materials for both the Avenir and Caesars proposals have since been removed. It is unclear what request was made to the Avenir team.

“We’re putting forth a project in a location which could really use this type of complex jobs, housing, a hotel, restaurants,” Silverstein COO Dino Fusco told Spectrum News NY1 after the denial. “These are all things that we heard from the community, both in advance of putting together our proposal and then again, at the public CAC meetings that were held over the past month.”

As a comparison to Avenir, the Bally’s Bronx CAC also made significant amendment requests and held a separate meeting for the purpose. The list of requests was long, but Bally’s was given time to submit a response before Friday’s deadline, which it did, indicating some willingness to continue negotiations.

What Caesars, Avenir projects would have done

Caesars Times Square, a joint effort by Caesars, SL Green and Roc Nation, would have renovated an existing office building at 1515 Broadway into a $5.4 billion casino-resort in one of America’s tourism hubs.

Silverstein Properties’ $7 billion Avenir bid was also in Manhattan, near the Javits Center. Plans called for a New York casino operated by Rush Street Gaming, a 1,000-room Hyatt hotel, a ground-level community art gallery spanning 11th Avenue and more.

To this point, four significant bids have been eliminated or voluntarily withdrawn:

• Avenir
• Caesars
• Las Vegas Sands’ Long Island proposal
• Wynn Resorts’ Hudson Yards proposal

Sands’ projected cost was $7.6 billion and Wynn’s was $12 billion, meaning more than $30 billion in potential development has exited the New York casino race, with more hurdles still to go.

ESPN reported recently that the two sides finalised the settlement in early 2025. The network also reported last year that the Jaguars made a request to FanDuel to repay a portion of the embezzled funds. Securities filings indicate that the settlement may be easier for FanDuel to swallow in comparison with initial projections.

Earlier this year, FanDuel finalised the agreement with the Jaguars to compensate the NFL club for approximately $20 million in stolen funds that the employee deposited at the sportsbook. But in a series of legal matters where requested damages by the employee stretch to $250 million, this Jaguars settlement looks relatively smaller, especially compared to the company balance sheet.

During the second quarter, Flutter produced revenue of $4.19 billion for the three months period ended 30 June. In the US, Flutter generated revenue of $1.79 billion, with sportsbook revenue of $1.22 billion.

A FanDuel spokesman did not respond to a request for comment.

Jaguars legal costs not broached in Flutter filing

Amit Patel, a former Jaguars executive, pleaded guilty in 2023 to misappropriating $22 million from the team’s Virtual Credit Card (VCC) programme in a brazen bid to fuel his gambling habit. Patel, who served as the sole custodian of the team’s VCC system, received a 78-month prison sentence last year on several charges, including wire fraud.

The exact timing of the settlement is unclear, but it appears to have been reached around March when FanDuel parent Flutter released a Form 10-K filing with the US Securities and Exchange Commission.

The filing, which covers Flutter’s annual report for the 2024 fiscal year, contained a series of potential damages regarding pending litigation against the company.

While Flutter informed the SEC of litigation on several continents, the section on legal contingencies did not contain any matters in North America. The section included:

• Alleged German and Austrian player claims for the reimbursement of historic gaming losses.
• A tax dispute with Italian authorities over Pokerstars server infrastructure.
• An investigation into historical underpayment of a goods and services tax in India.

Of the three, the lowest contingency is the Italian tax settlement for €8 million ($9 million), Flutter disclosed. Flutter strongly disputes the European matter and wrote that it was unable to determine a reasonable estimate on a range of potential losses in the India case.

How FanDuel settlement could cut off potential harm

Thus far in 2025, Flutter has released quarterly filings in May and August for the first six months of the year. Flutter did not alert the SEC of the Jaguars settlement in either filing.

But that does not necessarily mean FanDuel is downplaying the gravity of the case.

In a parallel matter, Patel filed a $250 million federal lawsuit against FanDuel, alleging that the company took advantage of his gambling addiction. Diagnosed with a gambling disorder a month after his termination by the Jaguars, Patel claimed that FanDuel should have known that he was a compulsive gambler since he made more than 1,000 deposits of at least $20,000.

In the annual report, Flutter stated that the company will likely face “increased scrutiny” related to responsible gaming in the relative near future. While Flutter asserted that it implemented safer gambling measures designed to protect customers, if the perception develops that the company fails to adequately protect vulnerable players, it may suffer from reputational harm.

Since her appointment as CEO of FanDuel in 2021, Amy Howe has asserted that the company strives to “lead the industry” in responsible gambling.

In one month alone, Patel made $5.6 million in fraudulent transactions, an amount that exceeded the cap of the VCC programme, court records indicate. Patel indicated in an interview with law enforcement that he artificially inflated legitimate expenses and generated fictitious charges under the scheme.

The NFL encouraged the Jaguars and FanDuel to reach a settlement, but it did not participate in the negotiations, according to ESPN. Last July, the Jaguars filed a lawsuit against FanDuel in Florida state court seeking damages of $66.6 million.

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.

Dynasty leader Thaksin Shinawatra, jailed for twelve months on 9 September, tried to introduce casinos during his 2001-2006 tenure as prime minister. That tenure ended with a military coup. In August 2023, after his return from 15 years of self-imposed exile, Thaksin became a principal cheerleader for the IR drive under the new prime minister – his daughter Paetongtarn Shinawatra. 

Paetongtarn was suspended as prime minister in July and removed by the Constitutional Court in late August over a fawning phone call with former Cambodian leader Hun Sen amid military conflict between the two nations. Meanwhile, Thaksin’s sister Yingluck Shinawatra, prime minister from 2011-2014, remains in exile. 

Fresh beginning … in a coma 

“This is a fresh beginning for Thailand,” Bangkok-based hospitality advisor James Kaplan says. “It will be looking at integrated resorts with a fresh perspective, hopefully a balanced and more constructive perspective.” 

New Prime Minister Anutin Charnvirakul has declared his opposition to casinos. The leader of the Bhumjaithai Party, Anutin promises parliamentary elections by early next year, although they are not legally required until June 2027. 

“Gaming legislation is not dead, but it’s in a coma. It could reawaken after the election,” says Kaplan, a board advisor to Bangkok Land, which owns Impact Convention and Exhibition Center, a potential IR site. 

“Some observers suggest the [casino legalisation] agenda might reemerge under revised regulations to protect existing arrangements or create new bargaining space, although it is equally possible that shifting political priorities will push it aside,” Maverick Consulting Group partner Ben Kiatkwankul says. “Either way, the debate around [integrated resorts] is likely to remain a tool of political and economic manoeuvring in the months ahead.” 

Too hard to rock 

The political maelstrom has cost Thailand at least one top tier global casino operator. In an exclusive interview, Hard Rock International Chairman James Allen told iGB his company has “zero interest” in a Thailand IR at this point due to “instability”. (More from that interview will be provided in upcoming coverage.) Hard Rock had considered options in Thailand including a convention-based IR in Phuket. 

With falling tourism numbers, a rising currency and mounting debt, the case for entertainment complexes – Thailand’s chosen term for integrated resorts – has never been more compelling. The challenge amid political polarisation and distrust is to rebuild the consensus that produced near unanimous parliamentary support for casino legalisation in March last year. 

In some ways, that proposal became victim of its own success. Citing the Thai proverb “ten fires don’t compare to the harm of a single act of gambling”, Kiatkwankul says, “The near unanimous parliamentary approval in March – we saw some of conservative parties raising hands for the bill – only fuelled speculation about behind the scenes political manoeuvring.” 

Family affair 

When Paetongtarn Shinawatra replaced Srettha Thavisin as prime minister in August last year, she elevated IRs to a cornerstone policy of her Pheu Thai Party government, even though it had not featured prominently in its election platform. IRs came to be viewed as a Shinawatra family initiative. 

“I have found that no matter how the media spun it, 50% of the politicians and 50% of the populace supported the Shinawatras. It’s a shame because this means that the remaining 50% did not,” Checkmate Mitigation senior advisor David Leppo says. “How can there be any political congruency with a landscape like that?” 

Public distrust deepened with Paetongtarn’s political troubles and Bhumjaithai’s subsequent withdrawal from the ruling coalition. “Their immediate distancing from the bill only reinforced perceptions of political instability and potential hidden agendas,” Kiatkwankul says. 

The new government without Shinawatras up front resets the IR issue. “Thaksin is fatally damaged as is his party, and he was the main [IR] promoter,” longtime Bangkok corporate communications consultant Julian Spindler says. “There’s little the foreign players can do to change this political situation, but they should use this downtime to educate the Thai public as to the required regulatory environment à la Singapore.” 

Pokies in every pot 

“They’re hearing this idea that Thailand is going to have a pokie machine in every lavatory and every 7-11, à la some other countries – my own Australia being an example,” Silq Law founding partner Paul Crosio says. 

Leppo, a longtime sports book operator in North America and Asia, sampled public attitudes at anti-casino demonstrations in Bangkok. “About 70%-75% of the people I spoke to felt that the industry would attract an undesirable demographic, laying the foundation for organised crime to thrive, when in fact, in jurisdictions like Singapore, casinos have had the exact opposite effect. 

“These same people also had the misguided opinion that casinos would lead to problem gambling, when in fact, just like Singapore has proven and delivered, programmes like Gamblers Anonymous are funded by Singapore’s casinos, which could be mirrored here in Thailand.” 

Striking a balance 

“Problem gaming is not a solely Thai phenomenon,” Kaplan says. “Governments such as Singapore recognise the need to strike a balance between tourism relevance, job creation and tax revenue while mitigating the challenge of problem gaming. Just because Thailand delays implementation of the gaming bill doesn’t mean people won’t gamble. They still will, and they’re taking the money outside country.” 

A recent study estimates Thailand’s underground gaming economy at more than US$30 billion annually, including domestic underground casinos, border casinos in Cambodia, Laos and Myanmar plus online gambling. 

How much of that money legalised Thai gaming would capture depends on the regulatory scheme. Under the Pheu Thai government, cabinet ministers proposed an entry requirement for Thai nationals of 50 million Thai baht (US$1.6 million) in bank deposits alongside a THB5,000 entry tax. The mooted THB50 million entry requirement highlights conflicts in Thailand’s casino legalisation objectives and an under-informed approach to gaming regulation.   

Only a handful of Thailand’s 70 million citizens would qualify for casino entry under the THB50 million rule. That scenario would satisfy underground gaming interests currently catering to Thai gamblers, while placating groups that don’t want more Thais (openly) gambling. However, making Thailand a virtual foreigner-only casino market would limit international operator interest and IR investment, paradoxically making any IRs less tempting for tourists, decreasing potential tax revenue and employment. 

Regulatory irregularity 

The draft regulatory scheme placing the prime minister and cabinet members at top of the pyramid ignores international best practices and lacks social safeguards. Thai officials reportedly did not consult with other jurisdictions or international experts when drafting gaming regulations. 

“The regulations need to be sound and transparent. They need controlled and trusted supervision of a gaming board,” Global Chain Ltd managing partner Harmen Brenninkmeijer says. “There are enough examples around the world of what makes IRs work. Investors know the potential, but the regulatory and judicial climate need to support their investments, and they need to feel protected. If not via the judiciary, the gaming board can take that role solely.” 

“They need to establish a regulatory committee of gaming professionals and gaming legal scholars to outline and deliver a legal mantra that will ensure groups like Sands, Wynn, Genting, MGM, Galaxy, et al feel comfortable investing here in Thailand,” Leppo says. 

Simultaneously, Thailand needs to placate current stakeholders in its underground and cross-border gaming sector, as well as ease public concerns over problem gambling and other social impacts. 

Lonely in the middle 

This challenging agenda amid political turmoil has convinced many that Thailand will abandon casino legalisation. However, the conditions that led the kingdom to consider and, at least briefly, embrace IRs have become more acute. 

On the tourism front, Thailand now sees itself occupying uncomfortable middle ground between cheaper alternatives such as Cambodia and Indonesia – particularly as the baht rises to post-Covid highs – and upmarket destinations like Singapore, South Korea and Japan. 

As of 7 September, foreign visitor arrivals had fallen 7.1% from a year earlier to 22.3 million, 25% below 2019 figures. Visitor expenditure has fallen more sharply with the drop in high-spending Chinese tourists; Chinese arrivals this year are nearly 1.5 million below last year’s level. 

Thai tourism ‘sliding downhill’ 

“The Thai tourism industry is going in reverse, sliding downhill with increasing speed, which should worry policymakers, especially as this industry makes up roughly 18% of direct GDP,” Kaplan says. “The knock-on effect to the broader already weak economy is a serious concern. The situation is expected to become worse during the high season due to the irrationally strong baht, regional instability with Thailand’s neighbours and call centre scams putting people off visiting the country.” 

Thailand’s economy is projected to grow 2% this year. That is half the rate of fellow ASEAN members Philippines and Indonesia. Ahead of Anutin forming his government, Thailand’s main stock market index was Asia’s worst performer this year, down 10% versus a 17% rise in the regional benchmark. 

Gaming taxes would provide the Thai treasury with much-needed revenue amid ambitious economic stimulus plans following Covid relief spending. Thailand’s tax revenue is estimated at 15% of GDP, three percentage points below the ASEAN average. 

Human face of debt 

Thailand’s public debt, 67.9% of GDP, has drawn a warning from the International Monetary Fund.  The spending plan approved by parliament early this month projects a THB860 billion budget deficit, 4.3% of GDP. 

“Integrated resorts are part of a broader solution needed to stimulate the Thai economy with significant direct foreign investment, employment and tax revenue,” Kaplan says. “If you look at the big picture, household debt and public debt are totally out of control. Car loan defaults are at new records, shops are vacant and businesses are closing down at increasing levels. It’s bad. You can see it on people’s faces. 

“I am not saying legalised and regulated gaming is the solution to this economic malaise, but instead IRs should be viewed as part of the solution in the context of rejuvenating, stimulating and, most importantly, sustaining the critical tourism industry in a competitive world.” 

Polishing the gem 

An IR “is something that Phuket needs to stay the gem in the crown of Thai tourism,” says Crosio, who splits time between Bangkok and Phuket. “The client base in Phuket is much more upscale than it would be in other locations. So it’s ideal here.” 

Crucially, leading Thai business groups remain enthusiastic about investing in IRs. “I firmly believe that Thailand can be compared with Mexico and what I believe will be eventually Brazil: the casinos and ownership – surely the majority – is to be in the hands of locals to keep the money within the country,” says Brenninkmeijer, a senior advisor on SkyH’s IR proposal near Bangkok’s gateway Suvarnabhumi Airport. 

He describes SkyH as “an entertainment complex designed to attract local investment, with every aspect of its design and planning tailored to meet Thai expectations. The complex will feature a central, unified theme that blends luxury with a wide array of entertainment options. It is poised to become a major attraction for tourists, driving increased visitor numbers.” 

Electoral elephant 

Whether IRs get beyond the drawing board soon awaits the outcome of the next election. Casino legalisation will likely be the elephant in the ballot box, with no party making IRs a major plank in its platform. 

In 2023 lower house elections, the progressive Move Forward Party won the most seats but was thwarted by conservative forces in its attempt to form a government. Move Forward was subsequently ordered to disband and its leader barred from politics, leading to public outcry and reduced faith in the political process. The upcoming election, with Move Forward reconstituted as the People’s Party, could yield similar results with comparable controversy. 

It’s worth noting that despite the discord surrounding the 2023 vote, lawmakers across party lines did join hands to embrace IRs, at least momentarily. The same thing could happen again. After all, every major Thai political party was for integrated resorts before it was against them. 

Full disclosure: Author Muhammad Cohen has signed client referral agreements with Maverick Consulting Group and Checkmate Mitigation.

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 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.” 

Nigeria’s gaming industry is one of the most exciting frontiers on the continent: vibrant, fast-growing and fuelled by a youthful, digital-first population. It is also a market still finding its footing, balancing innovation with regulation and global ambition with local culture.

Unity Nwanze, business operations & country manager, Score7bet 

For Unity, gaming was never the plan. It quickly became a calling. 

She describes Nigeria’s market as being on a “strong upward trajectory” with local developers creating culturally relevant games, esports gaining serious momentum, and jobs being generated.

Her long-term goal is clear: She wants to empower and mentor the next generation of gaming professionals. “Building a strong talent pipeline that will grow the industry is the legacy I hope to leave behind,” she adds.

Gift Tuadibofa, executive secretary, Association of Nigerian Bookmakers 

Like many others, Gift’s journey into gaming was unexpected, but it became a platform for impact. 

She highlights trust as both the greatest challenge and the greatest opportunity. “Operators feel misunderstood, regulators feel unheard, and players often get caught in the middle. Yet within that tension lies the opportunity. We are not just hustling, we are building, often with little recognition.” 

Her ambition is to help create an industry defined by trust and responsibility. “I want to leave behind an industry that people can trust, where gaming is enjoyed responsibly and no one feels taken advantage of,” Gift concludes.

Adenike Oyebamiji, legal compliance (West Africa), Velex Advisory 

With roots in litigation, Adenike made a deliberate shift into gaming law, a decision that has defined her career. 

She points to vast opportunities in Nigeria, from localising games to the adoption of blockchain, crypto and virtual reality. Crash games, esports and digital-first innovations are already reshaping the market. 

Her vision is ambitious yet pragmatic: “I aspire to see a thriving, well-regulated gaming market that competes with the top jurisdictions globally. My vision includes eradication of illegal gambling and increased adoption of responsible gaming practices.” 

Goodness Ohanyere, product designer, Betsson (Malta) 

For Goodness, a childhood love of mobile games became the foundation for a career in product design. She quickly recognised the need for innovation in player experience. 

She sees Nigeria’s market as “messy, exciting, and full of opportunity all at once”, a young and vibrant ecosystem hungry for better experiences. Beyond her work at Betsson, she is committed to collaboration and diversity. “I want to see an African gaming industry where everyone has a seat at the table, especially women,” Goodness notes.

Nengi Akinola, head of marketing, BetKing 

Marketing leader Nengi was drawn to gaming by its unique combination of creativity, innovation and community. 

She believes Nigeria’s future growth lies in mobile-first design, culturally relevant virtual sports and the rise of esports and influencer-driven betting. Her ambition is not only commercial but cultural.

“I would like to be remembered for creating platforms, campaigns and experiences that made gaming more inclusive and culturally relevant. More importantly, I want to prove that great original case studies can come out of Africa, showing the world that our innovations do not just follow trends, they set them.,” Nengi adds.

Together these five women illustrate the energy and ambition of Nigeria’s gaming sector. They remind us that this is not simply a market with potential, but one already shaping Africa’s gaming future.

From compliance to creativity, mentorship to marketing, their leadership demonstrates that Nigeria is not only keeping pace but setting the stage for global recognition. 

About Women in Gaming Africa 

We are a community dedicated to empowering and amplifying the voices of women across the African gaming sector. Through mentorship, leadership programmes, networking, and events, WiG Africa connects women, allies, and organisations to accelerate action and create lasting impact. 

If you would like to support our mission as a member, partner, or sponsor, visit [Women in Gaming Africa] or connect directly with me, Lois Bright, founder of WiG Africa and managing director of Initiate International. Together, we can ensure African women in gaming are not only seen but celebrated. 

Check out last month’s WiG column celebrating Women’s Month in South Africa.

Patrick, who presides over the Texas Senate, has repeatedly blocked sports betting and casino bills in recent sessions. He has said measures need majority Republican support in the Senate before he will allow them to be heard.

While the gambling industry has considered Patrick to be the major foil to gambling issues, he has offered little public commentary on his personal or political stance toward gambling. But the Dallas Morning News recently reported it may be a mistake to view Patrick as the sole obstacle.

“If I was the Sands Corporation, I’d be trying to count my Senate votes and quit worrying about Dan Patrick,” Austin-based consultant Mike Lavigne told the newspaper. “Patrick is not as big a problem as the rest of the Senate is. And if they had the votes in the Senate, Patrick wouldn’t be a problem.”

As an incumbent, Patrick is unlikely to face opposition in the Republican primary next March, according to local media.

Previous Texas sports betting efforts

The Texas legislature meets every other year. This year, sports betting and casino gambling bills were effectively dead on arrival, as Patrick said they would not be considered in the Senate. There was also a group of a dozen House lawmakers who said they would oppose “any attempt to expand gambling” earlier this year.

Before Patrick and the bloc of House lawmakers announced their opposition, industry proponents were fairly bullish on legalisation hopes in 2025.

That followed an effort in 2023 that saw sports betting make its way through the House with a two-thirds majority. Gambling expansion requires a constitutional amendment, meaning it needs approval by a two-thirds majority in both chambers and a majority of Texas voters at the polls.

Following the House passage in 2023, Patrick doused hopes of sports betting legalisation via a comment on Twitter and the Senate did not hear the bill.

“Texas is a red state,” Patrick said in the post. “Yet the House vote on sports betting was carried by a Dem majority. The Texas Senate doesn’t pass bills with GOP in the minority. The GOP majority guides our path.” 

Texas coalition continues push

Texas Governor Greg Abbott has said he has no objection to gambling expansion and a University of Houston poll reported that 60% of Texans support online sports betting. If it approved legalisation, Texas could become the largest legal sports betting market in the US.

The Texas Sports Betting Alliance is an organisation that represents major sportsbook companies and the state’s professional sports teams. Team owners, like the Dallas Cowboys’ Jerry Jones, have sought to sway Patrick’s opinion.

Heading into this year’s legislative session, gambling interests poured millions into Texas. Las Vegas Sands owner Miriam Adelson donated nearly $14 million to legislators during 2024. Adelson purchased a majority stake in the Dallas Mavericks last year.

Despite some of those contributions going to Patrick, he continued to repeat there was not enough support for the issue and the Texas GOP platform opposes gambling expansion.

Patrick told WFAA in November 2024 that gambling backers “spent millions and millions of dollars and just think that magically it happens. It doesn’t.”

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.”

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

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

Billion dollar validation

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

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

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

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

Distribution advantage

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

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

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

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

Market makers

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

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

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

Predictable pushback

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

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

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

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

AI engagement boost

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

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

A long-term compliment

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

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

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

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

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

Since inception in August 2019, Waterhouse VC has achieved a gross total return of +3,597% (annualised at 83%), as at 31 July 2025, assuming the reinvestment of all distributions.

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.”

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

Who regulates the Eurojackpot draw?  

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

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

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

How did Norsk Tipping respond to the Eurojackpot scandal? 

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

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

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

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

An argument against gambling monopolies

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

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

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

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

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

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

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

Contributors:  

Mika Kuismanen – CEO, Finnish Trade Association for Online Gambling 

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

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

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

Total visitation to Las Vegas has seen year-over-year declines every month this year, and Wynn, MGM and Resorts World have faced multimillion-dollar AML fines in 2025. As such, modernising salon rules could be a way to counteract both.

In gaming parlance, “salons” are private gaming rooms separate from public casino areas, including high-limit areas. Prior to 2001, Nevada law forbade any private gaming, but amendments were passed that year for the creation of salon regulations.

This was done, as Nevada Gaming Control Board Chair Mike Dreitzer explained Wednesday, to attract high-value customers to the state at a time of economic uncertainty post-9/11. The original rules surrounding salons were quite stringent, including a $500,000 deposit or credit minimum for prospective players.

This barrier was so high that only the biggest Las Vegas Strip casinos could field them. That is still largely the case; to this day, there are no salons at all in northern Nevada. Legally, they may only operate in “resort hotels”, defined in Nevada as those with gaming, 200-plus rooms and at least one bar and restaurant. Operators must apply and be approved for a salon licence.

In 2008, the economic uncertainty of the Great Recession motivated regulators to lower the threshold to $300,000. Then in late 2024, the NGCB embarked on another round of consultations regarding salons, again in response to economic uncertainty and the desire to keep Nevada relevant amid casino expansion elsewhere. A workshop was held last December to begin the process of amending salon regulations for a third time.

Several changes for salons recommended for approval

Feedback from that hearing was incorporated into a draft amendment to salon Regulation 5.200, which was presented by the board Wednesday. After two hours of further debate with stakeholders, the board unanimously recommended a number of changes, some of which include:

• Lowering the baseline deposit/credit threshold to $20,000.
• Allowing operators to apply for the right to set their own minimums based on proven salon experience.
• Establishing poker as a game eligible for salon play.
• Establishing a $20,000 buy-in minimum to commence a poker game, including a $10,000 minimum buy-in per player.
• Lengthening the period that a salon patron’s guest may play in a salon without the guest present from six to 24 hours.

The Nevada Gaming Commission will consider the amendments for adoption on 25 September.

Potential answer to Las Vegas tourism drop, AML issues

If Nevada casinos are freer to offer private gaming, that could attract more customers who previously went elsewhere for such experiences, stakeholders argue. Additionally, security in salons is higher than the main floor, and the gameplay would be more scrutinised.

Casinos have advocated for discretionary minimums to account for a larger number of business opportunities. For example, picture a celebrity passing through Las Vegas: they want to play a little, but don’t want to be bothered on the main floor or undergo the strict salon financial checks currently in place. Perhaps the CEO of a convention wishes to entertain some guests who are not high-rollers, but the casino wishes to thank them for the business they bring and offer them a private salon.

Loosening the regulations would allow more of those types of situations to be facilitated. In theory, this could lead to more revenue and return trips from high-value customers to combat the Las Vegas tourism drop.

Balancing collaboration and enforcement in Nevada casinos

The board, though, must balance those opportunities with realistic enforcement abilities. Opening the floodgates and setting no statutory minimum could create more problems for the state’s pool of regulatory resources.

Dreitzer acknowledged that operators’ eagerness is “well taken”, but constantly stressed the need for balance. He was deferential to the board’s enforcement chief, Kristi Torgerson, who advocated for a minimum of least $10,000.

“You must respect the fact that there’s a bit of an unknown here,” Dreitzer said to those in attendance. “And I understand we have checks along the way, but you know how that goes. There’s always sort of a push towards the lowest number at every level.”

Casinos eager for new offerings to battle Vegas spending lag

For the industry, there is heightened pressure to sustain what has been a record-setting stretch of performance post-Covid. The state set three consecutive records for fiscal year gaming revenue coming out of 2020, but was slightly (-0.79%) off that mark in FY25. The Strip, however, was -3%, the worst of the state’s major markets.

Las Vegas has increasingly invested in non-gaming entertainment, especially sports. In the last 10 years, the city added the Aces (WNBA), Raiders (NFL) and Golden Knights (NHL) franchises, and it will welcome the Athletics (MLB) in 2028. The annual Formula One Las Vegas Grand Prix is also contracted through 2027.

Virginia Valentine, president and CEO of the Nevada Resort Association (NRA), told the board this “evolution from the gaming capital of the world to the sports and entertainment capital of the world has changed the definition” of what a high-value customer is. To assuage concerns over a “proliferation” of salons and potential problems, she noted any new salons or modifications must be approved by the board anyway.

“Nevada is the regulatory gold standard. We would also like to be the gold standard of gaming experiences,” Valentine said.

Also making appearances Wednesday in support of loosening salon regulations were:

• Charlie Stone, EVP of casino operations and marketing for Wynn Las Vegas
• Chandler Pohl, VP and legal counsel for MGM Resorts
• Joe Lupo, president of Hard Rock Las Vegas, currently under construction

As mentioned, Wynn and MGM were among the three AML fines administered this year. Hard Rock also fired a top executive, Alex Pariente, this month over an AML scandal at the company’s casino in the Dominican Republic.

Poker in salons could fight Las Vegas tourism drop

The inclusion of poker as a salon game was notable, and something the NRA lobbied heavily for.

“We are aware that there are card games going on in other states, and possibly even here,” Valentine said Wednesday. “Those card games are happening out of sight, if you will. We are asking to kind of level the playing field because that’s what we’re competing with.”

While it was allowed, it was given somewhat stricter guidelines. For a salon poker game to commence, all players must submit to financial checks instead of just the main patron. Additionally, the board kept the $10,000 buy-in minimum per player, whereas the NRA had asked that one player be allowed to bankroll the entire $20,000 table minimum.

In a statement to iGB, Valentine applauded the board, both current and past, for “reviewing the matter and listening to the industry” to create new guidelines that “meet today’s environment”.

“The proposed regulations going forward to the Gaming Commission reflect a balance of needs for the industry and for regulators. That’s key to creating any effective public policy,” Valentine said. “We look forward to the discussion with the Gaming Commission.”

To Valentine’s point, it is no secret that Nevada casinos compete with a sizable legal and illegal poker market, especially in neighbouring California. The state offers legal poker at both tribal casinos and licensed card rooms. Its concentration of wealth and celebrities also makes it a hub for high-stakes underground games.

In one example, former NBA star Gilbert Arenas was among six charged in an illegal poker ring bust in July. The operation allegedly ran out of an Encino mansion owned by Arenas, with influence from Israeli organised crime.

Chip policies already changed this summer

Poker seems to be a focal point for the NGCB under Dreitzer’s tenure, which began in late June. The game can be a target for bad actors, as it is an environment in which players swap chips and cash back and forth with less casino involvement than other games.

In mid-July, several major Strip poker operators — Wynn, MGM, Caesars and the Venetian/Palazzo (Apollo Global) — changed their chip cash-out policies.

The companies will cash chips only from their own properties under the new rules. In other words, players are no longer able to cash Wynn chips at an MGM property, or vice versa. This appeared to be a coordinated company-level rule change rather than a regulatory change, as with salons.

“We believe this change was a good idea and a great example of our industry actively addressing [anti-money laundering] concerns,” Dreitzer told the Las Vegas Review-Journal 14 July.

Las Vegas tourism seeks stability from board in flux

For the three-member board, it is a tough job to foster innovation while also attempting to create a sense of stability. Dreitzer is the fifth NGCB chair to take office since January 2019.

He inherited a partial term from previous chair Kirk Hendrick; Hendrick took over for Brittnie Watkins, who was serving on an interim basis after Brin Gibson resigned in November 2022; Gibson took over for Sandra Douglass Morgan, who resigned in November 2020.

Currently, former Las Vegas judge George Assad is the most senior board member, appointed in January 2023. Former Reno city attorney Chandeni Sendall was appointed this January. Dreitzer’s appointment was welcomed because of his experience with both the state and the industry.

Prior to the NGCB, he held senior roles at Gaming Arts, BMM Testlabs, Ainsworth and others, but he began his career as a deputy attorney general. Stakeholders are hopeful this industry insight can result in better collaboration with the board.

Assad, who also worked in the casino industry for eight years, passionately advocated Wednesday for no salon minimums. While noting the importance of AML concerns, his view was that salon restrictions were a regulatory overreach. Dreitzer listened respectfully to these tangents, before returning to his core message: balance.

“That [minimum] creates a barrier to entry, frankly, related to individuals who think they can run a salon, but ultimately can’t,” Dreitzer said.

York, vice president of government affairs at the American Gaming Association, appeared on a prediction markets panel at last week’s Saratoga Racing and Gaming Conference and apologised to a large crowd before crossing the proverbial Rubicon.

Days after a second arrest that involved someone throwing an adult toy on or toward a WNBA court, York criticised an offshore prediction market for offering event contracts on the strange trend.

York made reference to a series of contracts at Polymarket that enabled users to trade on whether the object would land on a court during a live game. The AGA official made the comments on 11 August, the first day of the Saratoga conference. On the same day, Polymarket handled more than $70,100 on a binary contract to choose whether a fan would successfully launch a toy onto the court in that evening’s Connecticut Sun-Golden State Valkyries contest.

In a summer when integrity concerns about live betting markets have intensified, York questioned the appropriateness of such contracts.

“I’d be real curious to hear what the economic utility is for that type of behaviour, because it’s pretty pathetic to me,” he said on the panel.

Another panelist, David Aron, a special counsel at Lowenstein Sandler with prior experience working for the US Commodity Futures Trading Commission, agreed that there’s no “economic utility” in the “wacky contracts”.

Staking money on adult toy tosses

Phoenix police arrested Kaden Lopez, 18, on 6 August after he attempted to throw an adult toy onto the court at the Phoenix Mercury’s home game versus the Sun. The throw by Lopez didn’t land on the court, instead hitting a spectator who attended the game with his nine-year-old niece.

On the same night, a fan hit Indiana Fever guard Sophie Cunningham on the leg with a bright green toy, another act in a string of boorish activity.

On Polymarket, one event contract gave users the opportunity to trade on the colour of the next adult toy to reach the court. The structure of the contract, York suggested, creates an incentive for a syndicate to stake an individual to throw a green toy onto the court.

For arenas with a no-bag policy, there is a lower likelihood that a fan will sneak in the device, he explained, raising further integrity concerns. The markets on the Polymarket website generated considerable liquidity, with one user netting a four-figure profit.

York made the comments several days after the founder of a crypto meme took responsibility for the pranks in a post on X. The individual, who goes by the name Lt. Daldo Raine on X, noted that the group committed the acts in an attempt to market a crypto coin created by his online community.

In spite of the admission, Polymarket continued to offer the markets through 12 August. However, as of Thursday, the exchange did not have a live offering for the WNBA adult toy contracts.

A Polymarket spokesperson did not respond to a request from iGB for comment.

Applying an economic purpose test to adult toys

The concerns raised by the adult toy contracts are the latest in a contentious debate over the regulation of prediction markets by the Commodity Futures Trading Commission, which has had considerable turnover this year. Several leading prediction markets announced plans this month to offer various event contracts tied to the upcoming football season.

At the moment, prediction markets do not face the same regulatory and tax burdens as legal sportsbooks. As a result, some gambling industry groups believe those companies are operating on an unlevel playing field. Following the 2018 repeal of PASPA, those groups contend, the states are in better position to regulate sports betting than the federal government.

Last year, the CFTC approved a noticed of proposed rulemaking aimed at overhauling the agency’s process for regulating event contracts. The proposal sought to restore an “economic purpose test” for evaluating whether the contracts are contrary to the public interest.

On Wednesday, meanwhile, FanDuel announced a partnership with the CME Group to develop a new event contracts platform.

The event contracts will be subject to the rules of CME Group exchanges, pending CFTC review, the companies wrote in a joint statement.

Further integrity measures

Also on the Saratoga prediction markets panel was John Berlau, a senior fellow at the Competitive Enterprise Institute, a Washington DC-based think tank. Berlau did not opine on the adult toy contracts, but he noted comparisons with a fan who grabs a foul ball simply to win a legal sports bet. He also disagreed with arguments that place prediction markets at fault for bad behaviour of certain customers.

“It’s a slippery slope to try to blame this on a prediction market venue or on actual sports wagering,” Berlau said.

The panel was moderated by Michelle Cohen, a partner at Ifrah Law and counsel at iDEA Growth. Cohen emphasised that bettors cannot wager on everything on the regulated markets, noting that legal bets must be approved through state event wagering catalogues.

“It sounds like we need some additional integrity-based tools,” Cohen said.

While designated contract markets such as Kalshi are permitted to self-certify under CFTC regulations, Kalshi says it has taken steps to add protections for customers. In March, Kalshi announced a partnership with integrity monitor IC360, which CEO Tarek Mansour said will enhance its “ability to prevent bad actors” and report them to sports leagues and regulators.

Unlike Kalshi, Polymarket is not available yet in the US. Last month, however, the Justice Department concluded an investigation of Polymarket without bringing any charges. Roughly a week later, Polymarket completed the acquisition of CFTC-licensed exchange, a move CEO Shayne Coplan said paves the way for its re-entry into the US.

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

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

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

Sky Bet taps Orange’s development team 

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

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

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

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

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

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

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

Spotify tribes model and maintaining agility  

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

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

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

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

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

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

Replicating the Sky Bet model 

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

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

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

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

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

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

From SBG to FBG: Fanatics leveraging Leeds’ talent pool 

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

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

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

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

Sky Bet’s Leeds legacy

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

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

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

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

For a long time, the influencer space was reserved for other industries, such as fashion, makeup or fitness. However, the online world has become saturated with content creators marketing gambling brands in the last couple of years, and that is here to stay.

The emergence of a generation native to social media as a commercial force, the opening of the North American markets and the increased focus on streamers have all played their part in this, but where does this new marketing era leave traditional gambling affiliate sites?  

Changes in consumer habits 

One of the biggest factor driving the change is how people consume information. We live in an age of instant gratification and quick results, where attention spans are shrinking and snappy, visual content is king. The rise of content platforms like TikTok and YouTube Shorts perfectly embodies this and it will only continue to evolve, with more and more platforms adopting similar strategies.  

Long-form written content, traditionally the backbone of SEO and affiliate success, has taken a backseat. This type of content is now reserved for only the most dedicated iGaming enthusiasts –the ones who are actively involved and passionate about online play and want a deeper analysis of games. 

This presents traditional affiliate sites with an existential crisis. Those who are committed to only producing traditional, long-form written content will find themselves in an increasingly difficult battle for the attention of a shrinking audience. Unfortunately, many of these companies don’t have the abilities or resources to pivot towards video content or a complete change in strategy, so what is the solution?  

This is where the creator economy steps in. The rise of micro-influencers and content creators has changed the game, and it now offers affiliates a bridge to tap into a wider audience, through collaboration, without compromising their written content,

A trusted source 

Hit the rewind button a few years and this would never have felt like a viable option. Micro-influencers and content creators were still viewed with scepticism by broader audiences, affiliates and brands. Today, however, consumers have a lot more faith in the recommendations of content creators. Many argue that they trust these more than traditional advertisements.  

Unlike traditional advertisements, content creators and gambling influencers tend to offer a much more honest appraisal of products, and this authenticity goes a long way with the buying public.

This goes even further in the gambling industry, where some customers have an inherent distrust of products or brands they are not familiar with. Content creators are viewed as peers offering genuine insights, not just a money-driven ad campaign that sounds too good to be true.  

Content creators also possess a power that many affiliates do not: they can shape player interest and drive attention to different types of games. Streamers, for example, have driven players more towards crash games in recent years in a way that affiliate sites could not, and this ability makes partnerships even more attractive for traditional affiliates.  

This relationship between audiences and creators also tends to ensure that audiences are not recommended poor products. Gambling influencers spend a long time creating and nurturing their communities.

Trust is an essential part of this; by advocating for poor products, they risk sabotaging that. Authenticity is key in the content creator world, which can only be good for product endorsements and affiliates.  

Was the rise of gambling influencers inevitable?

The partnering of affiliate marketing and content creators was inevitable. These gambling influencers have the ability to tap into huge audiences and hold massive appeal. Affiliates can incentivise them with good conversion rates and give them the freedom to be honest about the products they are reviewing, which adds an extra level of authenticity.  

Of course, throwing money at any old influencer or content creator is not going to suffice. As we have seen with written content over the years, you need to find creators who are passionate about the industry and willing to get creative with the content.  

The latter point is essential. Customers’ demands are changing so rapidly that you need to have a conveyor belt of content ideas ready to go. Gambling influencers and streamers, for example, have been extremely popular over the last few years, with live streams and edited short clips from those streams being an effective way of reaching an audience.  

Likewise, we are now seeing an increase in popularity for live event streaming and short-form content. This is perhaps more relevant in sports betting, where content creators attend live events and share their wins and losses in real time.  

In both instances, these highlight the kind of interactive, engaging experiences people want right now, and a long-form casino review does not provide that to a wider audience.  

Learning to co-exist with gambling influencers

However, let’s not underplay the power of traditional affiliate sites here. There will always be an appetite for rich, in-depth content that offers insightful thoughts on products, even if it is smaller than it once was. Comprehensive game reviews and guides will always have a place in the iGaming industry, and the affiliates who survive will be the ones who carve themselves a niche as experts on their topics.  

There are also plenty of excellent ways of making long-form content more engaging. In recent years, the use of informative charts, graphs and visuals has become increasingly common in the space, and many now release video reviews alongside their written ones.  

Affiliates and content creators must also consider responsible gambling messaging. In the last couple of years, we have seen several instances where a content creator has inadvertently advertised an unlicensed product in a key market or where an affiliate has had their hands burned by dealing with streamers who promote irresponsible gambling habits.  

Working through the growing pains

The industry will need to work through these growing pains. Like all new developments, these things will take time, but we can expect to see a few bumps in the road as this new relationship forms and industry regulators attempt to understand it.  

Notably some regulators are clamping down on influencer marketing in the sector as many openly promote illegal sites, either knowingly or unknowingly. Brazil approved new regulations to ban influencers from promoting gambling in May.

Ultimately, nothing brings out the doomsayers quite like the winds of change. Critics have been ringing the death bell for SEO for years, while you only have to take a quick scroll down your LinkedIn feed to find someone saying that AI will take all content jobs in the next two years.

Now it is the turn of traditional written content. The reality for affiliates, as it is in many other spaces, is that those willing to adapt and work with these new forces will be the ones who survive.  

The future of affiliate marketing does not lie in totally abandoning long-form content or burying your head in the sand about the changes that are coming. Instead, it lies in a clever, strategic blend of the old and the new.

Traditional affiliate sites should welcome a more diverse content strategy that embraces short-form videos, engaging visuals, and content creators and micro-influencers. However, they should also stick to their roots and leverage their established trust and credibility to keep their traditional audiences happy and continue to wave the flag for in-depth, informative content.  

The latest chapter in a scandal that has marred the sport appears to be focused on multiple Division I programmes located in the Southern region of the nation, a source told iGB Thursday on the condition of anonymity.

On Thursday, SI.com reported that the Eastern District of Pennsylvania has broadened its investigation into point shaving in the sport, a harbinger that the probe could lead to multiple indictments. There are further indications that federal law enforcement officials enlisted agents to speak with multiple players under investigation for potential match manipulation, iGB has learned.

The district covers nine counties in the Keystone State, most notably Philadelphia County, home to the city’s “Big 5” NCAA basketball programmes: Villanova, Drexel, Temple, Saint Joseph’s and the University of Pennsylvania. However, investigators instead appear focused on several schools in the South, a development that tracks with previous reporting that several schools in that region are under scrutiny in a broader investigation on anomalous betting patterns.

Another source independently confirmed on Thursday night that the investigation in the district has advanced. When reached by iGB, a spokesperson from the Eastern District of Pennsylvania declined to comment.

Alleged mastermind behind college basketball betting scandal

Thursday’s reports provide the latest twist in a summer rife with disconcerting headlines on the state of sports integrity. Last month, ESPN reported that a bettor in Mississippi placed more than two dozen bets involving NBA guard Terry Rozier in a span of 46 minutes. Rozier is one of three NBA players being probed in a parallel investigation in the Eastern District of New York, along with former Raptors centre Jontay Porter and ex-Pistons guard Malik Beasley.

In January, federal law enforcement agents apprehended a Las Vegas man before he boarded a one-way flight to Panama, en route to Colombia. Prosecutors described the defendant, Shane Hennen, as the alleged architect of a multi-million dollar illegal sports betting ring.

Since his arrest, Hennen’s exact involvement in college basketball remains unclear. However, the ring is reportedly under federal investigation for suspicious activity related to both NBA and college hoops, according to multiple outlets. For instance, earlier this year, ESPN reported that betting accounts linked to the illegal ring placed wagers on three mid-majors college basketball programmes under investigation in the probe.

All told, at least five Division I schools (Eastern Michigan, Temple, Loyola of Maryland, North Carolina A&T and Mississippi Valley State) have been named by various outlets in connection with suspicious wagering activity. Another programme, the University of New Orleans, suspended four players last season for potential NCAA violations related to sports betting.

A source who spoke to iGB on Friday on the condition of anonymity said the current investigation could be one of the largest on record in the post-PASPA era.

Hennen’s NBA betting ties explained

According to a complaint, Hennen helped orchestrate a fraudulent sports wagering scheme involving an individual identified in court records as “NBA Player 1”. While Porter is not identified by name in the complaint, the fact pattern in the indictment matches his identity.

This week, Michael Porter Jr, Porter’s older brother, broke his silence in the case when he told a podcast that the hazards surrounding sports betting will only “get worse”.

Hours before a 26 January 2024 NBA game, the player presumed to be Jontay Porter texted two defendants, identified in court filings as Co-Conspirator 1 and Co-Conspirator 2.

On the same date, Porter removed himself from a game against the Clippers with a self-reported eye injury. Porter finished scoreless with three rebounds in four minutes. Prior to the game, Co-Conspirator 1 forwarded a message to Hennen from the NBA player, the complaint states.

“I told [Co-Conspirator 2] no blocks, no steals. I’m going to play first 2-3 minute stint off the bench then when I get subbed out, tell them my eye killing me again,” the player wrote.

A network of proxies in betting scandal

Following the text from the NBA player, CC-1 allegedly sent Hennen two screenshots that appeared to be betting slips for Player 1’s statistical performance in the aforementioned game, according to an affidavit from an FBI special agent. After receiving inside information on the player’s intended underperformance, Hennen, acting through a series of proxies, placed bets on the NBA player’s “unders”, the agent wrote.

In a 13 January letter to Nevada prosecutors requesting Hennen’s detention, a US attorney in Brooklyn wrote that the government had developed “substantial evidence” that Hennen conducted illicit financial transactions and fraudulent sports wagers totalling millions of dollars, including through a network of proxies and straw bettors located across the country, such as his co-conspirators.

“The proof of his guilt is overwhelming,” wrote then-Acting US Attorney Caroline Pokorny, citing witness testimony, betting slips and other financial records.

Months later, on 22 July, a federal judge in the Eastern District of New York granted an order that allowed attorneys in Hennen’s case to extend plea negotiations until late September. It marked the fourth time that the parties had received a continuance to extend the negotiating window.

Prior to the final continuance, iGB contacted a Las Vegas-based attorney who represents Hennen. A message left with the attorney was not returned.

Hennen’s ties to City of Brotherly Love

Todd Leventhal, Hennen’s attorney, told SI.com in February that the government painted a “very vivid picture” of the alleged scheme. Often, major federal investigations can be complicated by a lack of cooperation from authorities in multiple jurisdictions. The latest wrinkle raises the question of why the investigation progressed in Pennsylvania.

Documents obtained by iGB indicate that Hennen maintained multiple residences in Philadelphia over a five-year period through 2023. Hennen, a professional poker player, apparently relocated to Las Vegas in December of that year.

In the same piece, a sportsbook manager at Rivers Casino in Philadelphia told SI that Hennen had gained a reputation for placing heavy wagers. At one point, Hennen, the proprietor of tout website SugarShaneWins.com, was ranked as the book’s largest customer, SI reported.

Expertise in other complex gambling matters

Prosecutors from the Eastern District of Pennsylvania have experience in handling complicated illegal gambling matters related to sports betting. In 2020, a holding company for offshore sportsbook 5Dimes paid a fine of more than $46.8 million to settle charges with the office.

An inquiry from the federal prosecutors in conjunction with the Department of Homeland Security Investigations spent several years investigating 5Dimes for a litany of federal crimes, including but not limited to illegal gambling, money laundering and wire fraud.

As part of the investigation, federal authorities determined that the offshore book designed incentives for customers to utilise Amazon gift cards as a withdrawal vehicle, while offering a 10% premium for selecting the method.

Several 5Dimes customers funded their accounts and placed illegal sports bets while located in the jurisdiction, according to prosecutors.

NCAA president’s testimony on college betting

More recently, NCAA President Charlie Baker made an appearance on Capitol Hill to discuss the potential perils of sports betting. Baker was one of several witnesses who testified last December before the Senate Judiciary Committee at a hearing titled  “America’s High-Stakes Bet on Legalised Sports Gambling”. 

Following his testimony, Baker declined comment when asked by iGB if he had any updates on the college basketball investigation.

An NCAA spokesperson did not immediately respond to a request for comment from iGB on Friday. But a source familiar with the broader investigation told iGB last month that the NCAA is doing its best to unravel the complex intricacies of the case.

In written testimony provided to the committee, Baker wrote that the NCAA partners with an integrity monitoring service that examines more than 22,000 contests per year. In addition, the former Massachusetts governor – who supported legalisation of sports betting in his home state before becoming the NCAA’s top official – noted that the association keeps open lines of communications with numerous state regulators and participates in the FBI’s Sport Integrity Working Group.

“It’s clear that significantly more attention should be dedicated to the collegiate sports betting environment by state and federal lawmakers, regulators and betting operators to protect collegiate athletics competitions and student-athlete wellbeing from the dangers of pervasive sports betting,” Baker wrote.

But this week, the Brooklyn Nets swingman broke his silence on the case and spent a considerable amount of time discussing the perils of sports gambling. Jontay Porter, his younger brother, is awaiting sentencing in December on federal gambling charges. The younger Porter admitted to manipulating his statistics in two NBA games in the 2023-24 season while providing inside information to a syndicate that looked to profit handsomely from the intel.

Michael Porter discussed the possibilities for such underhanded arrangements on the One Night with Steiny podcast this week.

“Think about it: If you can get all your homies rich by telling them ‘Yo, $10,000 on my under. This one game, I’m going to act like I’ve got an injury and I’m going to sit out. I’m going to come out after three minutes,’” the seven-year veteran said. “That is not OK, but some people probably think like that. They come from nothing and all their homies come from nothing.”

NBA players under investigation

Jontay Porter pleaded guilty last July to one count of conspiracy to commit wire fraud in connection with defrauding two sports betting companies. Porter, a former centre with the Toronto Raptors, deliberately underperformed on at least two occasions, leading to his permanent expulsion from the NBA. The first occurred on 26 January 2024 against the Los Angeles Clippers when Porter left the game after three minutes with an apparent eye injury.

Porter also left a game prematurely on 20 March 2024 versus the Sacramento Kings when he feigned a stomach illness. In both cases, Porter’s co-conspirators hit the under on a variety of statistical props.

The Porter case is part of a larger investigation undertaken by the US Attorney’s Office for the Eastern District of New York. Two other players, Heat guard Terry Rozier and former Pistons guard Malik Beasley, are also reportedly under investigation.

Last month, ESPN reported that a Mississippi bettor placed 30 wagers on Rozier-related props over a 46-minute period. The bettor hit all 30 bets on 23 March 2023, when the guard left that night’s game with an apparent foot injury.

Shortly before the start of the NBA free agency window, reports surfaced that federal prosecutors had also placed Beasley under investigation. His attorney, Steve Haney, told iGB weeks later that Beasley deserves a “presumption of innocence”.

Michael Porter addressed the broad investigation in his comments on the podcast.

“Obviously, my brother is in his situation, Malik Beasley is going through his situation, Terry Rozier is in hot water. But the whole sports gambling entity, it’s bad and it’s only going to get worse,” said Porter, adding that he has anecdotal evidence of players who have received death threats from aggrieved bettors.

Industry focus on match manipulation

The convergence of scandal across the sports betting industry has been in the news this summer. Beyond the NBA-related allegations, two Cleveland Guardians pitchers have come under investigation for gambling-related matters.

After Major League Baseball placed Guardians pitcher Luis Ortiz on non-disciplinary paid leave in early July, the league disclosed a separate probe of star reliever Emmanuel Clase and placed him on leave as well.

Ortiz is reportedly being probed for suspicious activity related to several microbets on the outcome of his next pitches.

At a recent gaming-related conference for state legislators, West Virginia Attorney General JB McCuskey bemoaned the rise of microbetting during a keynote address. Since then, Ohio Governor Mike DeWine has endorsed a ban on bets tied to players’ game performance.

At this week’s Racing and Gaming Conference at Saratoga, meanwhile, a panel tackled a litany of issues tied to money laundering in gambling, including risks associated with financial crimes facilitated via cryptocurrency.

Heightened risks

As a gambler, Jontay Porter received status as a preferred bettor with FanDuel’s VIP programme. Porter wagered millions of dollars with the operator, including a number of large wagers with its Colorado online sportsbook.

Dan Hartman, former director of the Colorado Gaming Commission, attended the conference in Saratoga. Michael Porter Jr spent his first seven NBA seasons with the Denver Nuggets, while Jontay briefly played for the Nuggets’ summer league team in 2022.

Hartman is a proponent of using AI and other sophisticated technology for the detection of nefarious schemes in sports betting. The tools can be useful when those with criminal intent engage in structuring or spread their action to approximately a dozen operators in attempts to evade authorities.

“There is so much data to comb through, you need AI tools, you need something that can chew up a lot of data really fast and see the anomalies,” he told iGB. Hartman added that the tools are valuable not only from an enforcement standpoint, but for risk evaluation because law enforcement, integrity monitors and other stakeholders are analysing patterns across so many disparate areas.

In the Jontay Porter case, the conspirators allegedly wagered $80,000 at one sportsbook on a series of Porter unders that paid out $1.1 million. The wager was subsequently frozen, according to media reports. As of Wednesday, six defendants have been charged in the widespread conspiracy.

Jontay Porter is scheduled to be sentenced in Brooklyn on 10 December.

LatAm continues to be perhaps the hottest region in the gambling world, with Brazil seven months into its regulated online market. Meanwhile tax concerns in Colombia and Peru continue to impact operators’ strategies.

Flutter made vital inroads into Brazil in 2024, acquiring a 56% stake in NSX, the parent company of Brazil-facing brand Betnacional. It has formed a new Flutter Brazil business, which will also encompass its existing Betfair Brazil brand.

The NSX acquisition is already paying off, with Brazil revenue growing 144% during Q2 to $44 million, offsetting a slight year-on-year decline for Betfair Brazil. This decline Flutter attributed to adverse sports results and re-registration friction from new KYC requirements.

With Brazil Flutter’s fastest-growing market in Q2, Group CEO Peter Jackson was asked whether further LatAm expansion was in the company’s plans.

Jackson responded: “When we sit here and evaluate what the opportunities are around the world, we think about Latin America, we think about many markets where we’re not operating. There’s some interesting opportunities there.

“They’re all in the mix as we think about where we’re going to be deploying our capital. Clearly, the team are thinking about other opportunities around the world in Latin America.”

Jackson and Flutter recognise the scale of Brazil’s potential, saying: “We retain a strong conviction that the market opportunity will be very significant, and that those operators with scale and the best product will win the largest share of the market. Our strategy is to elevate our Brazilian proposition.

“We’ve targeted quick wins in product and marketing, which we expect will deliver significant improvements to the customer proposition on both sportsbook and iGaming over the next 12 months, which we believe will place us well for future success.”

Entain ‘on track’ in Brazil

Entain reported a 21% year-on-year uptick in Brazil NGR during H1, in line with the company’s expectations after a successful transition to the newly regulated market.

Brazil was Entain’s fastest growing market outside the US, powered by strong results from the Club World Cup football tournament, which saw record player activity and turnover.

Brazil accounted for 5% of Entain’s H1 NGR, although CEO Stella David conceded the journey had “not always been plain sailing”, with compliance proving difficult as players of its Sportingbet brand had to re-register to satisfy new KYC requirements.

Tax in Brazil also led to a £28 million ($38 million) hit to Entain’s group EBITDA, with David also warning about the potential for black market growth. This warning comes as the country weighs up making a provisional GGR tax rise from 12% to 18% permanent, as well as new ad restrictions.

“I’m just saying there’s a lot of volatility and that means that we have to be agile in our approach to the market to make sure we navigate the right line,” David said.

BetMGM sets sights on 10% market share in Brazil

In August last year, MGM Resorts International partnered with Grupo Globo, Latin America’s largest media company, to launch the BetMGM brand in Brazil.

In its Q2 presentation, MGM reiterated its desire to reach 10% market share in Brazil through BetMGM, believing its deal with Grupo Globo will allow for greater flexibility in regards to marketing and investment.

“Our launch is making great strides as we are seeing all key measures increasing, including strengthening player fundamentals,” MGM Resorts International CEO Bill Hornbuckle said. “Our bullish long-term view of the Brazilian market remains unchanged.”

BetMGM is investing heavily in Brazil, with that spend focused on product in Q1. It will then shift to marketing in Q2 as the business looks to grow its brand awareness in the market.

“[In] Q2, we turned on the marketing with a reasonable level of aggression and we’re very happy about what we’re seeing,” MGM Resorts International Interactive president Gary Fritz explained.

“Player values are strong down there. We see nothing to give us any concern about the TAM and the long-term health in the market in Brazil.”

Betsson reaches record LatAm revenue in Q2

Betsson enjoyed a hugely successful Q2 in LatAm, with revenue in the region up 35.4% to a record €84.7 million ($99.3 million), driven by high customer activity and record deposit levels.

LatAm accounted for 28% of Betsson’s Q2 revenue, having been responsible for 25% of its revenue in Q1, with Peru and Argentina particularly singled out as key growth markets for the group.

“It is gratifying to see how we continue to strengthen our leading market positions in these countries through both strategic and tactical market activities as well as targeted product development,” CEO Pontus Lindwall said.

Sportsbook revenue in LatAm increased from €22.3 million in Q1 to €33.2 million in Q2, offsetting a slight drop in casino revenue from €52.2 million to €51.4 million.

Despite the record quarter in LatAm for Betsson, the company did also note significant headwinds in the region, with further ad restrictions and tax rises seemingly on the way in Brazil. Beyond this Peru and Colombia are also increasing their tax burdens.

However, Lindwall said the company’s view on Brazil hadn’t shifted, saying: “We remain with our view that in any newly regulated market, it’s a little bit shaky initially in terms of competition, marketing spending, potentially regulatory changes.”

Discussing future M&A, Lindwall explained: “We are a careful company. We don’t jump in, we don’t buy the first one we see there. We want the dust to settle a bit and then we will, of course, be ready for both our own expansion and M&A in Brazil.”

Codere Online cautious on Brazil, Mexico performance strong

Codere Online remains hesitant to enter Brazil, despite fellow LatAm market Mexico continuing to prove fruitful for the company in Q2.

Mexico revenue for Codere Online reached €29 million in Q2, 2.8% higher than the €28.2 million reported in Q2 last year, while adjusted EBITDA in the market also edged up from a €0.2 million loss in Q2 last year to a €0.2 million profit.

In the earnings release, CEO Aviv Sher said: “In Mexico, we were successful in growing net gaming revenue despite the 19% devaluation of the Mexican peso and grew our portfolio of active customers in the country by an impressive 36% versus Q2 2024.”

But while the company continues to flourish in Mexico, Sher reaffirmed the company’s caution on Brazil, telling analysts: “We took some of our experience in Spain and took it to Mexico, so we have already proven we are able to replicate our strategy and grow a market.  

“I’m sure that Brazil will come up in this call. To replicate [our model] in Brazil, we would need a lot of money.”

In the company’s Q1 results, Codere Online noted it was pulling back in Colombia due to the impacts of the 19% temporary VAT. Sher reiterated this on the post-Q2 earnings call, saying operations had been reduced in the market “to the bare minimum”.

RSI flourishing in Mexico, but Colombia headwinds remain

Rush Street Interactive highlighted Mexico as a particularly strong growth market in Q2, although concerns persist over the tax situation in Colombia.

Monthly active users rocketed nearly 42% across the LatAm region to 403,000 in Q2, with Mexico proving especially fruitful. Revenue from the market here was up 125% year-on-year, as well as increasing 40% from Q1 this year.

Rush Street Interactive CEO Richard Schwartz expects Mexico to become one of the company’s largest markets, saying: “We are very optimistic and continue to believe that it can be a very significant market for us for many years to come.”

However, the VAT in Colombia continues to prove troublesome, with Rush Street Interactive’s decision to offset the tax with a bonusing strategy damaging the company’s profitability in the market.

This led to Q2 net revenue from Colombia remaining flat, despite Rush Street Interactive’s GGR from the market rising by over 70%.

With the temporary VAT set to expire at the conclusion of 2025, CFO Kyle Sauers believes the company’s profitability in the market will reignite from the start of 2026.

Further LatAm expansion could be coming, too, with the company listing Chile, Ecuador, Brazil and Argentina as potential opportunities to add to its existing markets of Colombia, Mexico and Peru.

Super Group LatAm revenue nearly halves after Brazil exit

Elsewhere, Super Group reported declines in LatAm revenue, dropping to $5 million in Q2 from $9 million in the same quarter last year. Across H1, revenue in the region also fell from $16 million to $10 million.

Super Group attributed this to poor performance in Mexico, as well as the withdrawal of its Betway brand in Brazil.

For Kambi, the regulated market launch in Brazil helped the supplier to increase operator turnover in the Americas by 3.4%, despite a “slower than expected start”.

The Club World Cup proved particularly popular in LatAm for Kambi, driving approximately 80% of bets across its global network.

Reporting its H1 results on Tuesday, this is the first time the London-listed operator provided a breakdown of topline earnings excluding US operations. In this case, group NGR (not counting BetMGM) was up 3% (6% cc) to £2.6 billion.  

Online NGR grew 14% including US and 8% excluding US, while retail NGR remained flat.  

While growth slowed in some online markets like Australia (-7% YoY) and Poland (+2%), group revenue was buoyed by a surprising performance in Spain (+39%), thanks to an effort Entain CEO Stella David described as “awakening a sleeping giant”.  

This, David said, was down to an executive team reshuffle in Spain last year and a reviving of the Bwin brand in the market through a targeted marketing campaign. David said she was confident Bwin could return to a podium position in Spain.  

Mikel López de Torre, former JDigital chairman and digital director for Entain’s Spanish JV Sportium, joined Entain as head of Iberia in June 2024 to lead the Bwin and Party brands across Spain.  

Meanwhile, Entain’s core UK and Ireland (UK&I) segment “outperformed the market”, the operator said, as revenue grew 21% in the six-month period.  

David put this down to growth across volume of players and increased player value. She told analysts once again that product improvements like increased app speeds and a new bet builder offering had positively impacted its performance in the UK.  

Retail remains sluggish, UKGC reviewing AGCs’ impact on operators  

Meanwhile, the UK&I retail business remained flat as revenue decreased 2% compared to last year.  

Despite continued revenue decline across UK retail, CFO Rob Wood told analysts during the earnings call he was happy with the segment’s performance and it had improved slightly in Q2 compared to the first quarter.  

He said there was a continued uptick since “sluggish numbers in Q3 last year” that had coincided with an acceleration in online revenue.  

Wood previously blamed Adult Gaming Centres (AGCs) for stealing market share from retail gaming operations in Q1, but he said on Tuesday the Gambling Commission was taking “a much closer look” at these AGCs.  

Despite slowed revenue growth, he said retail was still positively contributing to online growth. “It’s a pleasurable business for us to run and a really valuable asset,” Wood said.  

“UK retail [employee engagement] scores have never been better and turnover has never been lower.”  

Poland woes down to increased competition on iGaming hopes 

Turning back to online, Entain H1 8% CEE growth was powered by a 14% uptick for NGR in Croatia, but was impacted by flat revenue in Poland.  

When asked what had set Entain back in Poland, David said the market had become increasingly competitive as the sector prepared for potential iGaming regulation. She said heavy bonusing and a tax on winnings had resulted in a challenging period. This was further exacerbated by the prospects of legal iGaming disappearing for now.  

David said the operator would not run a race to the bottom by competing aggressively in the short term. “Poland is a long-term attractive market,” she added.  

Wood said although revenue here dipped, EBITDA in Poland had increased. “Sometimes you have to decide between topline and EBITDA and we’re actually growing EBITDA year-on-year.” He said only two operators were profitable in the market and Entain was number one on the list.  

Entain H1: Brazil ‘on track’ for full-year expectations

Entain’s Brazil business marked its first six months of operation with a 21% year-on-year uptick in NGR. David said that, while the business launched on day one of the market (1 January), the journey had “not always been plain sailing”.  

Compliance efforts had proved a mammoth task as players of the Sportingbet brand had to be re-registered to meet regulatory requirements. David said the operator had seen strong results from the Club World Cup tournament with record player activity and turnover reported.  

While the market is highly competitive, Wood said it was on track to meet expectations for the full year.  

AUSTRAC mediation under way 

Prior to questions from analysts commencing during the call, David addressed the elephant in the room – Entain’s ongoing legal proceedings with Australia’s AUSTRAC. 

Proceedings were initiated in December over “serious and systematic” non-compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws at Entain.  

David described a £50 million balance-sheet provision (about AU$100 million) as an accounting measure rather than a specific provision allocated as a potential penalty.

“The provision is purely accounting driven,” she said. Mediation between the two parties commenced in July and is still in motion, David noted.  

There will be no update on the proceedings until discussions have concluded, she added.  

AUSTRAC documents filed in April said the two parties were required to attend a mediation before 4 August and, if the matter is not resolved by then, Entain would need to file its defence by 12 September. 

How much cash will Entain receive from BetMGM this year?  

Cash flow was a hot topic during the Entain H1 analyst call, as Wood noted BetMGM’s plans to return cash to its parents this year, upon reaching a positive EBITDA of $150 million.  

As of the end of H1, adjusted cash flow for Entain sat at £80 million, compared to a deficit of £35 million last year. This is expected to be “broadly flat” for the year.  

When pressed on what the returns from BetMGM could look like in 2025, Wood said nothing had yet been agreed with the JV, but he hinted the amount could easily be calculated by taking BetMGM’s EBITDA guidance for 2025 and deducting its capex, then dividing by two and converting to GBP.  

“To give a feel for it, we came into the year with a good amount of cash on the balance sheet. We’ll probably want to leave a reasonable amount for year-end as well in order to allow for working capital cycles and so on,” Wood said of Entain’s cash flow plans for the year.

Underlying EBITDA across the group hit £583 million in H1, up 11% from last year. Meanwhile, gross profit rose 3% to £1.6 billion.

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.”

Curated by Lois Bright, founder of Women in Gaming Africa, this column will spotlight the people and stories powering industry growth in Africa; from regulators and entrepreneurs to marketers, developers and rising talent.

Based in Cape Town, Lois brings years of experience in iGaming and recruitment across the continent, along with a deep passion for building inclusive, community-led spaces within the industry. 

To mark the start of this partnership, we’re celebrating five standout women in South Africa’s gaming space – each representing a different corner of the industry. Their stories are personal, powerful and rooted in purpose.

Through their reflections, we explore what Women’s Month means, what legacy they hope to leave behind and how Africa is rising — not only as a market but as a force in the global gaming narrative. 

The voices behind the movement 

Jodi Scholtz 

Commissioner, National Lotteries Commission 

As commissioner of South Africa’s National Lotteries Commission, Jodi Scholtz holds one of the country’s most influential regulatory positions and brings to it a clear vision of progress, equity and structural change. She sees Women’s Month as a time for recommitment — to create an inclusive industry that works not just for women today, but for future generations. 

Jodi’s proudest milestones include launching the NLC’s digital modernisation programme, securing an unqualified audit opinion, and strengthening the commission’s mandate to support South African communities. She is also proud to lead with what she calls “an African lens,” shaped by a Cape Flats upbringing rooted in empathy and collective advancement. 

“My legacy should reflect the values of ethical leadership, empowerment, joy and sustainable development. And it doesn’t hurt to have some fun while working!” 

Thandokazi Mkiya 

CRM Campaign Manager, SunBet 

With over 12 years in iGaming, Thandokazi Mkiya has made her mark in retention marketing, promotions, and customer engagement. Her rise through the ranks is a testament to consistency, adaptability and resilience — qualities she believes are essential for women to succeed in this industry. 

For Thandokazi, Women’s Month is about honouring progress while staying focused on the road ahead. She’s particularly passionate about seeing more African women in strategic and creative leadership roles.

“Gaming is changing — and African women are not waiting for permission to be part of it.”

Looking back, she’d tell her younger self: “Trust your vision, take up space and know that even small steps forward count. Your consistency is your superpower.” 

Judith Benetello 

Marketing & Strategy, InsaGames 

Judith Benetello brings soul and strategy to her work in marketing and brand building. She sees Women’s Month as a time to pause and honour the complex roles women play, not only in business, but in families, communities and personal lives. “It’s about visibility — not just for where we’ve arrived, but for how we got here.” 

She finds the most joy in mentorship – recently guiding a young intern who reminded her that growth is contagious when nurtured intentionally. “Seeing another woman thrive because you made space for her … that’s legacy.” 

Judith is inspired by the momentum in Africa’s gaming industry, especially among women who are reshaping it with ethics, creativity and community at the centre. “There’s a very African kind of leadership rising, and it’s powerful to witness.” 

Prakashnie Govender 

General Manager, Kingdomslots (Sun International) 

A chartered accountant by training and a changemaker by nature, Prakashnie Govender has had an extraordinary career spanning gaming, conservation and executive leadership. She proudly wears many hats: GM, mentor, mother, board chair and advocate for youth development. 

Women’s Month, to her, is a time to reflect on how far we’ve come and where the glass ceilings still need to be shattered. “There are so many women running sites and operations across KZN, it’s time their stories are told too.” 

She’s passionate about shifting public perceptions of gaming — showing its role in job creation, education funding, and social development. “We’re not just a gaming business – we are an ecosystem that uplifts communities.” 

Boipelo Lencwe 

Technical Compliance Manager, BMM Testlabs SA 

Boipelo Lencwe’s 25-year career has taken her from a casino floor host in Johannesburg to a senior technical leader helping shape regulation across the continent. She was one of the first female technical shift managers in South Africa, breaking barriers in a male-dominated space and proving women can lead in tech, too. 

Now at BMM Testlabs, Boipelo works across jurisdictions to raise compliance standards, protect players and educate regulators. “My mission is to ensure integrity is non-negotiable, and that young women see this industry as a place where they belong.” 

She is particularly passionate about creating access points for women, through internships, mentorship and technical upskilling. “It’s not just about representation. It’s about being resourced, respected, and ready.” 

These five women offer just a glimpse into the power, passion, and progress unfolding in Africa’s gaming industry. As markets evolve and new opportunities emerge, the global gaming community would do well to look toward the continent; not as a developing market, but as a partner, innovator, and growing influence. 

At Women in Gaming Africa, we’re committed to building visibility, representation, and opportunity for women across the continent and this monthly column is just one part of that mission. 

Want to support women driving Africa’s gaming future? 
Partner with us, sponsor our mission, or get involved: 
  www.womeningamingafrica.org |  hello@womeningamingafrica.org

This monthly column is curated by Lois Bright, founder of Women in Gaming Africa 

Numerous examples come to mind, some of which ended in victory while others fell just short. Think of the Indiana Pacers’ memorable run to a Game 7 of this year’s NBA Finals, or Leicester City’s 2015-16 Premier League title, or the Boston Red Sox’ historic comeback from down 3-0 against the Yankees in the 2004 ALCS.

In gaming, the notion of wins and losses is far less binary. Nobody is hoisting a casino championship trophy or parading down the Las Vegas Strip. But if there were ever an example of an improbable team that continues to outkick its coverage, it would be Bally’s Corp.

The Rhode Island-based company is a corporate entity cobbled together in such a way that Doctor Frankenstein himself might have second thoughts. It is financially stretched tighter than a snare drum and has not hosted an earnings call with analysts for multiple quarters. Its interests are flung far and wide from Las Vegas to Chicago to New York to Australia, with holes that can be picked apart in every example. And yet, things have had a way of working themselves out.

A substantial funding agreement with Gaming and Leisure Properties effectively saved its Chicago and Las Vegas interests. A reverse-merger with Intralot provided critical funds and disposed of its international digital business. And, most recently, its New York City bid was saved by Mayor Eric Adams while its Australian subsidiary stumbled into re-acquiring substantial assets.

Bally’s ability to find answers, however convoluted they may be, is undeniable. The question now is just how long the company can continue this uphill tightrope sprint.

Boogie down Bronx

Perhaps nothing highlights this Bally’s phenomenon better than its New York casino bid. Bally’s is proposing a $4 billion integrated resort on a golf course it owns at Ferry Point in the Bronx. The project, for various reasons, has always been considered a long shot.

One reason is the cost – the company is struggling to stay on track with its Chicago casino, which costs less than half (about $1.8 billion) what it says it would spend in New York. In Q1, Bally’s reported $209 million in cash versus net debt of $3.4 billion, although that was multiple transactions ago by now. In addition to the massive development costs, the New York licence fee is also $500 million, up front.

For Bally’s in particular, winning a spot in New York would be costly for another reason. The company purchased the golf course from the Trump Organization for $60 million in 2023. If the project is awarded a licence, Bally’s is obligated to pay an additional $115 million kicker, meaning its pre-construction costs would actually be at least $615 million. This connection to US President Donald Trump has been among the biggest criticisms of the project, but it hasn’t been enough to stop it.

Before the 27 June deadline to submit its casino application to the state, Bally’s needed key zoning approvals from the city council and state legislature. In late May, the council tabled a vote on the matter, setting up a last-minute dash throughout June. Bally’s Chairman Soo Kim told the New York Post the council’s action showed that its members were insinuating that “‘If Bally’s wins, Trump benefits’. That’s crazy.”

From the top rope, twice

At the time, it seemed as though the obstacles in New York were mounting too quickly for Bally’s to overcome them. The company needed a “home rule” vote on its zoning bill, meaning that the council needed to approve it before the legislature could. That required a two-thirds majority vote from the council, until Adams intervened.

Prior to the vote, Adams submitted a letter of support for the bill, lowering the threshold to a simple majority. The final vote came in at 32-12, with seven abstentions. Adams has maintained that his actions are not an endorsement of the project. Rather, he says he wants to keep the pool of applicants for the three available casino licences as wide as possible.

“It does not matter which proposal is selected by the state so long as it’s in New York City,” his office said at the time. “We would be supportive of more than one selection in New York City, but that requires more than one competitive proposal.”

After Bally’s officially lodged its bid, it had to go back before the council for another, specific municipal zoning item. That 15 July vote was a resounding defeat, with 29 against versus just nine in favour. Again it seemed that the project was all but dead.

No appetite for a fight

But there again Adams saved the day, as he vetoed that vote on 30 July and sent it back to the council, where it now sits. This has prompted fresh criticism over the connections between Adams, Bally’s and Trump.

According to Spectrum News NY1, Vito Pitta, Adams’ election attorney and head of his legal defence fund, is a lobbyist for the Bally’s proposal. His campaign chairman, Frank Carone, is a consultant for the company, although both connections have been downplayed.

And perhaps most notably, Trump’s Justice Department permanently dismissed significant federal corruption charges against Adams earlier this year, which many feel has made the mayor subservient to the president’s wishes.

In any case, the council could technically override the veto with a two-thirds majority vote by 11 August, but that now appears unlikely. City and State NY reported on Tuesday, citing unnamed sources, that council members “didn’t have the appetite to take up a veto override fight”. Their hope is that the project is simply left out of the ultimate licensing decision by the state.

A local community advisory committee meeting for the Bally’s project is now slated for Friday afternoon. It is unclear whether the company will make a presentation then or await further clarity.

Thunder down under

While the New York saga has become increasingly complicated for Bally’s, the same is true some 10,000 miles away. For multiple years running, beleaguered Australian operator Star Entertainment has been battling with bankruptcy, such that the company became increasingly desperate from January onwards.

As a significant employer and tax contributor, Star fought to the end to stay independent, but its financial troubles coupled with a litany of regulatory violations were too much to bear. That’s when Bally’s stepped in.

Bally’s swooped up majority control of Star in April in an AU$300 million takeover bid. The company again struck what seemed to be a miraculous deal and it was also able to reduce the investment by AU$100 million by offloading that stake to existing Star shareholder Bruce Mathieson. At the time the deal was struck, Star had just two properties in its portfolio, Star Sydney and Star Gold Coast.

Days before Bally’s submitted an initial offer in March, Star had announced its intention to exit its Queen’s Wharf Brisbane joint venture and sell its stake back to the project’s other two partners. The multibillion-dollar mixed-use development was poised to become Star’s biggest asset, but was too expensive. The deal was struck primarily to get out of equity and debt contributions.

Not so fast

Bally’s made clear that it did not support the Queen’s Wharf exit and it sought to keep all assets together. For months it appeared that the withdrawal was in fact final, until it wasn’t.

Star announced on 30 June that certain requirements had still not been met, which prompted the partners to retract the deal. An extension was subsequently granted through July but that too was unsuccessful. The agreement was officially dissolved on 1 August.

To be clear, the dissolution of the agreement is not necessarily a full positive. Star now faces additional financial penalties for not finalising the terms and is again saddled with big financial commitments at a time when every dollar counts. It is also under a federal money laundering investigation that could result in hundreds of millions in further fines.

In spite of all of that, Bally’s got what it wanted and, in a way, it could make its purchase more prudent. The company essentially bought when the value was lowest and gained a massive asset through no work of its own.

Bally’s declined multiple requests for comment for this story.

One man’s vision

In all, the breakneck flurry of activity for Bally’s has accelerated since its buyout last July from Standard General. SG is a New York-based hedge fund also run by Kim. Kim had tried twice before to buy out the company, significantly lowering his bid each time. Ultimately, the final price was $18.25 per share, down from the initial 2022 offer of $38 per share.

As part of the deal, Bally’s was merged with Queen Casino and Entertainment, a regional operator also owned by SG. This brought the total Bally’s US portfolio to 19 casinos across 11 states, although Bally’s itself is the former Twin River Holdings with the Bally’s name purchased from Caesars. This highlights the company’s ability to grow like something of a corporate snowball, largely inorganic yet effective nonetheless.

While the company is mostly silent to the media and financial analysts, Kim has become the face of the brand, regularly giving direct interviews and quotes about the company’s doings.

Some comments haven’t been received as well as others – like when he told the Chicago Tribune that his company was “going to be eating a lot of people’s lunches” in the market – but that too has not prevented Kim from securing a litany of deals across the world.

On Wednesday, Bally’s announced that it will report second-quarter earnings after the market closed on 11 August. Its stock was up 2% to $9.48 at closing, but is down more than 50% year-to-date.

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.” 

The intersection between sports betting and fantasy sports has created a subset of sports fanatics with a dedicated interest in both. Internal research from ESPN Bet indicates that a user with a fantasy team is about three times more likely to place a wager on sports than a non-fantasy player.

Penn Entertainment, which has a partnership with ESPN through which it brands its online sportsbook, is about to take advantage of that tendency.

On Monday, the operator announced the imminent launch this summer of FanCenter, a personalised hub within ESPN Bet that will allow customers to easily find wagering markets based on their favourite teams, players and fantasy football rosters.

With the imprimatur of the Worldwide Leader In Sports, ESPN Bet and Penn Entertainment believe the product offers bespoke integrations that have not previously been available on the market. A fantasy football user eager to whet their betting appetite will soon discover a slew of customised wagers on the ESPN Bet platform based on their weekly fantasy lineup.

“FanCenter introduces a completely new level of personalisation for ESPN Bet players and represents our biggest product leap yet,” said Aaron LaBerge, Penn’s chief technology officer.

How it works

One of the key features of FanCenter is immediacy. Take the first week of the NFL regular season, for instance. Let’s say your fantasy team includes Saquon Barkley, Ceedee Lamb, Justin Herbert, Brock Bowers, Jordan Addison and the Kansas City Chiefs defence. In that example, your fantasy team will have players performing in games on four different days of the opening week from Thursday 4 September to Monday 8 September.

Instead of waiting for the result of the fantasy matchup on Monday night, ESPN Bet will offer a number of customised parlays with the potential for quicker payouts. You might receive a three-leg parlay option containing a Barkley anytime touchdown, the “over” on Lamb at 100.5 receiving yards, and a Chiefs defensive turnover. A winning ticket could be cashed by Friday. Using the same example, another parlay may add legs on Herbert to finish with at least two touchdown passes and Bowers to score against the Pats.

Bespoke integrations

While ESPN Bet teased its new offering last fall, the operator preferred to wait until this summer for the ideal launch point. Over the last several months, the product team has honed FanCenter for increased app speed and a sleeker look.

The offering also builds on an account-linking initiative that enables bettors to jump from the ESPN main app to ESPN Bet in a matter of seconds.

The launch of account-linking last November drove an uptick in betting volume and engagement, ESPN Bet’s Mike Morrison noted at the time. Linked accounts also produced a “stickier” customer, Barclays analyst Brandt Montour wrote in a research note, resulting in added time spent on the app, increased bet frequency and a higher parlay mix. Morrison is optimistic that FanCenter will do the same.

“FanCenter is the perfect combination of fandom, fantasy and personalised betting all wrapped into the ESPN Bet betting experience,” said Morrison, vice president of ESPN Bet and ESPN Fantasy.

“FanCenter showcases how we can serve fans across our platforms in a way that nobody else in the market can because of our industry-leading ESPN fantasy platform and account-linking capabilities.” 

Driving customer acquisition

Based on the sophistication of the product, LaBerge views FanCenter not only as an acquisition tool for new users, but a retention vehicle for current ones.

ESPN Bet debuted in November 2023, and the new product should appeal to those who tried ESPN Bet before the current upgrades, LaBerge said. ESPN Bet will attempt to re-acquire those customers through FanCenter.

The next cohort comes from what LaBerge described as a “fanatical group” of core users that he predicts will love the new product. He anticipates that those players will continue to use ESPN Bet as their primary sportsbook. The final cohort comes from “new user acquisition,” a group LaBerge considers the most critical of the three.

Last season, more than 13 million unique players participated in ESPN Fantasy Football, according to Chris Jason, executive director of product management for the company. Besides curated player props and custom parlay offerings, FanCenter also contains “integrated functionality” that the operator says will enable users to browse player stats and trends to inform their prop selections. 

Still, questions remain as to whether entrenched bettors from the app’s main rivals will use ESPN Bet as their exclusive platform. More pointedly, can ESPN convince a traditional DraftKings or FanDuel user to convert to ESPN Bet full time for their betting experience?

DraftKings and FanDuel in essence maintain a duopoly in online sports betting, with national market share of nearly 75% combined. No one else reached a double-digit share in June, according to data from Citizens.

Earnings preview

The FanCenter announcement came three days before Penn Entertainment is to release second-quarter earnings on Thursday. According to Zack’s consensus estimates, Penn’s revenues are expected to come in at $1.73 billion, up 4.3% from the year-ago quarter. The operator is expected to report a loss of $0.04 per share, up 77% from the same quarter in 2024.

In May, Penn Entertainment CEO Jay Snowden stated that the company’s digital business neared an “inflection point,” adding that the Penn and ESPN teams were working on “delivering a differentiated experience” for customers. However, Snowden wrote in a letter to shareholders weeks earlier that Penn had underperformed company expectations with market share and financial performance from sports betting. Upon the launch two years ago, the Penn CEO initially targeted long-term market share of at least 20% by the end of 2027.

ESPN Bet has not disclosed an exact date for the launch of FanCenter, but LaBerge indicated that it will likely occur this month.