Daily Archives: May 27, 2021

Technology has changed the landscape of many industries and the online casino industry is no different. Thanks to recent technological advancements, everything has become very convenient and easy for users around the world.

Not so long ago, smartphones were a rare thing but now almost everyone owns such types of phones. Having a smartphone is not only a sign of status, but it has also plenty of uses for people they can surf the internet, connect with people and enjoy entertaining videos, etc.

The online casino industry has tried to make the best use of this trend by producing games that are appropriate for mobile gaming. Since people carry around their phones everywhere they go, it is most convenient for them to play their favourite games on these gadgets. Not everyone can spare an ample amount of time to open their laptops and computers for having some fun gaming. However, with smartphones, even the most fleeting breaks could provide a good opportunity to play some exciting games.

Thanks to modern technology, there are a lot of different methods that people can now use to conduct their financial transactions. One of these ways that are becoming enormously popular is cashless payments employing third-party services for making transactions.

Online casinos have gone even a step further in this regard, with some of the sites even accepting crypto currencies and Bitcoin for payments. And to get players to use these payment options, they also give lucrative online casino offers to their customers.

Augmented reality and virtual reality are the technological advancements that are taking the whole world by storm. A lot of industries are embracing this technology and they are reaping the rewards. Now e-commerce & retail, fashion, real estate, education and tourism are all recognising the power of this technology.

Online casino gaming isnt behind the other industries, with the application of augmented reality and virtual reality also greatly benefiting them. Using this technology, players can now feel like they are playing in a real-world casino. It provides players with the ultimate gaming experience. With the AR/VR technology, the online casino industry has managed to create a more exciting format to attract new gamers.

Security is one of the biggest challenges in the modern world that is becoming increasingly more dependent on technology. Hacking incidents and data breaches have become more common, and so people want greater security when they are using the services of certain websites.

The good news for gaming enthusiasts is that there are certain authorities who regulate and ensure the security and safety of online casino sites. This way gamers can be certain that the details they share online will not be compromised and they can use the services of the sites without any worries.

Just like other industries are now using artificial intelligence, online casinos are also taking advantage of this technological advancement. One can find chatbots on the online platforms, helping players in understanding various processes and providing great customer service whenever users face problems. While the games also have AI incorporated and this technology comes into play when users play against the machines.

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How the online casino industry was changed by technology - TechRound

It has not been a great month for US sports betting operators.

The leading publicly listed companies have seen their market caps cut almost in half. And a key concern for investors is a shrinking total addressable market (TAM) in the country.

Heres a quick rundown of some negative news in recent weeks:

Those four states account for a third of the US population. All now look like tough perhaps impossible places to make money in the near-term.

BetMGM recently called for a long-term US sports betting TAM of $14 billion. DraftKings called for a mature market TAM of $22 billion.

Yet these projections do not come with specifics about which states will legalize. And it is hard to reach those numbers without the big four states.

Its becoming increasingly clear that the basis for many of the more optimistic TAMs is questionable, said Regulus PartnersanalystPaul Leyland in a recent note. New York and now Florida present far more problems than opportunities for the queue of US digital stakeholders.

It could get worse too. Deutsche Bank warned clients recently that other states might mimic the NY model if it proves to be good for the states tax take.

Similarly, Florida could be a template for California and other tribal states looking to legalize sports betting.

As gaming consultancy Eilers & Krejcik put it in a newsletter:

Past in US sports betting policy (e.g. the New Jersey model) is no longer prologue.

A shrinking TAM is not the only problem for operators. The recent legislative movements highlight another issue facing firms: everyone wants a slice of the pie.

New York wants its 50% cut, the Seminole Tribe wants a 40% cut, and the NFL is getting $120 million a year for its official league data rights. Then sportsbooks must pay market-access fees and fund giant advertising deals with networks like CBS and NBC.

Those costs help explain why regulated sportsbooks are not laying $20,000 a pop on golf matchups like their offshore counterparts.

The market is going to be huge but there are so many people looking for a slice of the same pie, said Gavin Kelleher, a gaming analyst at stockbroker Goodbody. If we look at the market over the next 10 years, I question the sustainability of being in one or a handful of states. Its so hard to compete without pan-national scale.

The importance of scale is not new. But it is only becoming more important as costs rise and opportunities shrink.

For example; a well-capitalized giant can afford to bid 50% of GGR for a license in New York and lose money for five years. But many cant afford to subsidize the future like that.

Similarly with market-access fees: every casino in Michigan (for example) wants to work with FanDuel or DraftKings, and is willing to take a smaller cut of revenue to do so.

It is the same with marketing. DraftKings has said previously it is three times more cost-efficient to advertise nationally than locally. As a result, smaller firms are finding it hard to cut through the marketing firewall put up by the big operators.

This is the case even in theoretically wide-open markets.

Colorado sports betting, for instance, recently reached 20 operators. But only the usual suspects are making an impact.

Eilers noted:

According to our proprietary tracking, the Colorado market remains top-heavy as none of the smaller brands have been able to capture meaningful share.

Over in Michigan, the top four firms had an 84%share of handle in April. The remaining eight operators split 16% among them.

So what next?

Consolidation is perhaps inevitable, especially as share prices dip and it is no longer so easy to raise free capital.

The current environment might favor the US casino chains like Caesars, Penn, MGM and Ballys, who all see cash flow from their retail properties.

There is also not much help coming from online casino.

Returning to those operator TAM estimates, BetMGM called for $13.4 billion in annual iGaming revenue at maturity. DraftKings called for $40 billion from iGaming when including Canada.

Those projections, as much as anything, helped drive massive valuations for US operators. But the iGaming momentum has not materialized as many envisaged during COVID.

Other than Michigan, no state has legalized iCasino in the aftermath of the pandemic, said Deutsche analyst Carlo Santaralli in a note this week. And Michigan was approved for iCasino prior to the pandemic.

Santarellis research found that the brick-and-mortar casinos in Pennsylvania and New Jersey have been slower to rebound than other regions.

A regional subset of casino properties tallied by Deutsche grew GGR by 19% in April 2021, compared to 2019. But properties in NJ and PA actually declined.

To Santarelli, that suggested some cannibalization from online gaming.

After all, PA online casino has been generating $65 million per month over the last 13 months. That is a huge amount of money to be entirely new gambling spend, though the pandemics limiting effect on the overall economy cannot be dismissed.

As such, we think the rollout of iCasino is likely to be a lot more challenging than most expect, Santarelli wrote. We think there is some merit to cannibalization of traditional casino operations, which would thereby lessen the desire of certain casino operators to push for legalization.

Subsequently, Deutsche called for a 2027 iCasino TAM of $4.9 billion, including $3.3 billion from currently legalized states. Thats a far cry from the operator-generated projections.

To sum up then: the online betting and gaming pie now looks smaller than many hoped. And it is being divided into many pieces beyond operators themselves.

Small wonder, then, that valuations are coming down across the board.

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Lean Dregs And TAM: Why Addressable US Sports Betting Market Shrank - Legal Sports Report

Its no secret that the global online gambling market has grown exponentially over the past several years. Experts predict that it will be worth a mind-boggling $92 billion by 2023. Thats a lot of money and information floating around cyberspace. However, that wouldnt be the case if people didnt trust the security measures that online gambling sites have in place. The best cybersecurity companies arein a perpetual battle to stay ahead of possible threats.

Its important to understand that online casinos are made up of several components. In addition to the games themselves, operators maintain databases that contain a wealth of private and financial information. They have payment systems, apps, and other parts like registration forms that hackers can target. Every one of these mechanisms must be safeguarded.

Malicious hackers are a constant threat to online businesses as they look for the smallest of loopholes and vulnerabilities to take advantage of. One of the latest trends in cybercrime is the DDoS attack. These, like ransomware attacks, can be particularly devastating to an online gambling site. In addition to inflicting enormous financial harm on an operator and its customers, such an attack can do irreparable damage to an entire brand. Its easy to understand how customers who have had their accounts pillaged and their personal and financial detail compromised would no longer have faith in that online casino. In fact, their confidence in the online gambling industry as a whole may be shaken too.

Another major concern for online casinos is the integrity of the games they offer. Players want to be certain that the games they play are fair. If those games are susceptible to exploitation and manipulation, the operator stands to suffer heavy losses in terms of money, reputation, and player trust. Every conceivable vulnerability at an online casino needs to be taken care of before it is exposed. The Metap online casino guide focuses a lot of attention on a sites safety and security. They put a lot of stock in seeing certifications from entities like eCOGRA, TST, and iTech Labs. This type of documentation proves that the games are fair and cant be tampered with by the operator or the players.

Online gambling sites must keep several steps ahead of the security breaches. This is a monumental challenge as new technology is constantly shifting the landscape. The online gambling industry has to be proactive and use all of the tools at its disposal to avoid such things as:

These days, SSL encryption is an industry-standard. This technology scrambles communications between the user and the site. Even if a neer-do-well was to somehow intercept this information, all they will get is a string of incomprehensible and unusable letters, digits, symbols, and other gobbledygook. Still, even this security technology is doomed to become obsolete someday. The key is finding a more effective technology and implementing it before the old one becomes ineffective.

Most gambling jurisdictions make sure that the online gambling sites they issue licenses use the most modern security technology. A site that gets hackedis sure to face a lot of scrutiny and can even have its license revoked. With the amount of money invested in such a profitable venture, its in an operators best interests to maintain the highest levels of security.

Online casinos have a huge responsibility, but there is also an onus on those who play at them. They need to protect their personal details and other information such as passwords, account numbers, and credit card information. They must understand that even though they are dealing with a highly secure operator, their information can be easily compromised if they arent using a secure internet signal. Open Wi-Fi networks such as those found in coffee shops and other businesses give cybercriminals plenty of opportunities.

It all comes down to the industry, regulators, operators, and the end-user doing their due diligence because every stakeholder stands to lose a lot. They all need to do everything they can to prevent security breaches. Moreover, they need to know how to react if one occurs. Even though online casinos and other internet businesses may implement the tightest security, they arent completely immune to cybercriminals. And they probably never will be.

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Analytics Insight is an influential platform dedicated to insights, trends, and opinions from the world of data-driven technologies. It monitors developments, recognition, and achievements made by Artificial Intelligence, Big Data and Analytics companies across the globe.

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The Importance of Cybersecurity in the Online Gambling Industry - Analytics Insight

Casino not registered with gamstop the scourge of modernity, or really real money? In order not to be addicted to the casino, you need to know the psychology of the player. Brightly glittering signs invite you to go and relax, run away from everyday life and play with fate for luck And then turns on a gamble to find lucky combinations, numbers and signs to win this unequal battle.

Its only a mirage

In one study in Boston, it was found that most of the gamblers do not even know the patterns of roulette, card games, as well as slot machines. But that didnt stop them from making up their own necessarily putting their lucky ring on a certain finger, taking a particular seat at the table, and the like. Later, during the treatment of gambling addiction, doctors talked about gambling principles and laws, which turned out to be an absolute revelation to patients.

The gambling space becomes a kind of arena of psychological battle. Gambler fascinate very easy and how to manipulate his mind every casino owner knows. Below are described the most common of the ways:

Hours

Or rather, their complete absence in the hall and the dealers. After all, the casino is well aware that when a person is passionate about something the time flies by him unnoticed. So they do not prevent visitors to rush into the maelstrom. None of the casinos will ask the player to take a break from the game or go to sleep.

The windows

Will only distract the player, which is not at all to the advantage of the owners. Day and night should cease to exist for him.

Sound Effects

Well who will not melt from the cheerful melodies, from the sound of falling coins, the winning trills of the machines? This immediately adjusts visitors on the right way, motivates them to go as soon as possible to meet their luck. Imaginary, of course. Almost 80% of players leave with a loss.

Light

Soft subdued light will wrap visitors and make them relax, and the correct color of the walls and patterns on the carpets will have no less effect on the subconscious.

The probability of winning

Few gamblers know that the machines in uk online casinos, as well as ordinary gambling establishments, specially tuned so that the feeling of a close win does not leave a person for a moment. Playing it seems that the control of the game exactly for the player, but it is only a subconscious game.

You will definitely come back again

The casino skillfully keeps visitors coming back again and again with free lunch coupons, shows, prize drawings, and discounted services. Of course, the date will be different to get players to come again and get caught up in the netting.

Liquor

Another ingenious gambling arena trick is free drinks. They relax the visitor and keep the mood at the right level. Playing becomes more fun, and the attitude toward money becomes dismissive and easy.

Royal attitude

If he wins, the whole world and the entire staff begins to revolve around the lucky person. He is immediately offered a hotel room. The best, of course. Free of course Anything to keep the customer from leaving with the full amount of his winnings and visit the casino again.

Leaving the casino

In the casino every detail is thought out to keep visitors as long as possible: the layout of the rooms is very confusing, the machines are arranged so that they will constantly catch your eye, specifically marked signs are also not so easy to find.

In the pursuit of profit, the casino stops at nothing. Its like an unpalatable candy wrapped in a colorful pretty wrapper. That is a visual deception, dust in the eyes. All the details are calculated so that the man ceases to belong to himself, and gradually loses his sanity takes out of the house valuables to make another bet, begins to drink, in the case of loss, falls into depression and goes on long binges. His family suffers with him.

General Aspects

The psychology of the player in an online casino seems simple, there are ulterior motives. People begin to play not for the money. Those prone to gambling addiction pursue other goals:

Summary

The psychology of gambling involves several components:

First of all, there are strong emotions that can rarely be experienced in everyday life. Gambling is a great remedy for boredom and moping.

The second component is competition. With the croupier, other players, the theory of probability, with yourself, finally. Its all about proving to yourself and to the world: Im the best.

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The psychology of the player in online gaming - BusinessMole

The COVID-19 pandemic has taken its toll on almost all industries, with gambling being one of many sectors that experienced its full wrath. Government-issued stay-at-home measures first led to the closure of gambling venues, then restricted such spots to operate at lowered capacities, only to have them close down againin December. During a period where playing games of chance at physical establishments was a forbidden pastime, many betting enthusiasts turned to the digital sphere, where they started exploring UKGC-regulated casinos and sites not on GamStop.

Thus, according to new projections provided by Pune-based research firm Fortune Business Insights, the global online gambling market is now on track to hit $158 billion by 2028, growing at an annual compound rate of 11.4%. What follows below is an in-depth look at how the ongoing global pandemic impacted the digital gaming sector and accelerated its growth.

The Closure of Land-Based Venues Led to Strong Online Numbers

In March of 2020, casinos worldwide began closing due to health scares stemming from the novel COVID-19 virus. In the UK, all non-essential businesses had to shut down in March, gambling locales included. In June of last year, UKs Betting and Gaming Council announced that brick-and-mortar casinos in the country could reopen starting from the 4thof July if they would obey strict sanitation and social distancing protocols. However, in December of last year, they had to shutter again because of new lockdown restrictions following a spike in infections.

During physical venues downtime in early 2020, data supplied by UK operators showed a Gross Gambling Yield increase of 115% for online betting, which rose to 217.5m between May and June of that year. Per a University of Bristol study published in the Journal of Gambling Studies, in May of 2021, online gambling soared during the first lockdown, particularly among regular gamblers. Those already actively betting on the internet engaged in this activity up to six times more than before the pandemic hit, and those that occasionally dabbled in online gambling found themselves doing so twice as more than before everyone when into lockdown.

Sports Betting Suffered Due to Postponed/Canceled Leagues

Sports betting was one of the most sizeable losers of 2020. In March of last year, almost all sports leagues around the globe got postponed due to the health risks associated with the gathering of large groups of people. In Europe, the Belarus top ice hockey and football leagues were the exceptions, as not only events in these competitions went on as planned, but they also got played in front of live audiences. They were the single betting options at digital sportsbooks in mid-2020.

That said, once the first lockdown ended, horse racing was one sport that could quickly and easily adapt to the new mandatory measures. It became one of the first sports confirmed to resume in 2020, beginning with a closed-doors event held at Newcastle Racecourse on June 1st. Naturally, horse racing had to implement a slew of changes to ensure strict adherence to social distancing measures. However, its availability when gambling options were scarce led to increased interest in it that spilled over to 2021. In April of 2021, with betting shops closed, the Grand National race set the UK online sports betting record, with over 100 million wagered on this event.

Virtual sports betting was also one of the benefactors of the current global crisis. It is the practice of wagering on digital sporting events or sports simulations. Once everyone got locked indoors with no real matches on TV, virtual sports gambling increased by 40%, according to the UKGC. It was still going strong as the year came to a close, posting a 9% spike in interest in November 2020.

Slot Gameplay & Poker Rose During Government-Issued Lockdowns

Online slots are the breadwinners of the internet gambling industry, producing as much as 70% of its revenues. The first digital real money reel-spinner went live along with the debut platform InterCasino in 1996. Since then, this gambling genre has dominated the interactive gaming space. At the start of the pandemic, the number of slot players was significantly higher than a year earlier, rising by 25%. However, after this surge last March, the number of active players slowly decreased throughout the year. That changed in November of 2020 when this figure hit a year high of 2.8 million. Even though the number of players varied throughout 2020, the number of total bets saw a steady climb. That is not factoring in bets made at casinos not on GamStop, the UKGCs mandatory self-exclusion scheme.

Online poker experienced a renaissance during the lockdown. Google searches for terms like best poker hand (up 282%) jumped dramatically in early-2020. Furthermore, Flutter Entertainment reported that its online poker brand PokerStars, grew by 23% last year.

UK Players Sought Alternatives Such as Casinos Not on GamStop

Due to the expanding interest in online gambling, UK operators got ordered by the UKGC to slow down online slot gameplay. The move stemmed from a 2020 YouGov survey that showed a rise in problem gamblers in Brittan. Thus, the UKGC made spin-timers at online casinos mandatory and eliminated the use of auto-play functions. According to non-gamstop-casinos.com, those measures have made slot gameplay unfavorable for many players who turned to reputable casinos not on GamStop.

A casino not on GamStop is a gaming platform with a license from an international regulator and not the UKs Gambling Commission. Other than that, it is more or less identical to most UK gambling sites. GamStop is the UKGC obligatory self-exclusion program that every UKGC-licensed operator must feature. Activating this option at one UK site makes it impossible for a player to continue his gaming journey at any other online casino with a UKGC license until the duration of his/her self-exclusion period expires. Slots not registered with GamStop allow auto-play and have higher max bet limits.

Final Thought

There is no doubt that the current global pandemic served as a catalyzer for the shift from offline to online gambling. Naturally, once land-based venues make a comeback with no safety restrictions in place, the digital sector will face a slight decline. Nevertheless, habits attained during the lockdowns should last well past the pandemic, fueling the rise of digital internet platforms as they try to overthrow their physical counterparts in the battle for gambling supremacy.

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Online Gambling During the Pandemic How the Industry Got Affected - Euro Weekly News

Entain, the parent company of partypoker and a joint owner of BetMGM, has received a three-year interactive gaming license extension in Nevada.

The Nevada Gaming Commission (NGC), the body responsible for administering regulations and granting gaming licenses, unanimously approved the British sports betting giant on May 20, allowing them to operate in the Silver State as an Interactive Gaming Service Provider under the application name BWIN.PARTY (USA).

In Nevada, Interactive Gaming refers to online betting and gaming, which is currently limited to internet poker.

In 2019, the company, then named GVC Holdings, received the same approval for a provisional two-year license. However, it opted not to launch online poker in the state during this timepresumably due to the market size and the complications with the Wire Act putting a halt to cross-state shared liquidity.

That license was slated to expire this month. Entain applied for a permanent extension of its interactive gaming license but had to settle for another provisional license following the recommendation of the Gaming Control Board (GCB) for three years.

BetMGM Poker is live in Michigan, Pennsylvania and New Jersey!

Last time, the company, under its previous management, took some heat from the regulatory board for its links to unlicensed gaming activities in various countries, particularly Turkey. This time, the NGC was impressed with the changes that the company had carried out since their hearing two years ago.

One of the board members stated that they have done a remarkable job changing the face of the leadership.

Indeed, in the past few months, the company has carried out various initiatives to improve its white-market credentials: It changed its name to Entain plc, launched various responsible gambling measures, and announced a plan to operate only in jurisdictions that are 100% regulated by 2023.

It also said goodbye to long-standing CEO Kenny Alexander.

However, despite all its efforts, the board stuck with the three-year limitation as recommended by GCB instead of granting them a permanent license.

The license extension gives Entain another three years in the market. Whether the company goes live with its online poker offering in the Silver State durign this period remains to be seen.

However, given the preparations it made for the recent hearing, it seems almost certain it plans to make good use of its interactive gaming license extension and go live.

But the question is, when?

Nevada is among the three states to join the Multi-State Internet Gaming Agreement (MSIGA) allowing operators in these states to merge their player pools with players in other states that have joined the pact.

WSOP.com is the only network to take advantage of this pact combining their Nevada player pool with New Jersey and Delaware through the 888 brand. PokerStars is not allowed to operate in Nevada and hence it cannot share its player pool with its existing New Jersey network.

WSOP.com USA: The worlds most recognizable poker brand is legal and regulated inNevada and New Jersey!

Meanwhile, partypoker has been operating in New Jersey for almost a decade sharing its player pool with BetMGM Poker NJ and Borgata Online NJ skins under the partypoker US Network umbrella. Unlike PokerStars, it has the opportunity to offer online poker in the Silver Statebut, to date, it has chosen not to.

However, things are changing that will certainly make the US online poker market more attractive. This year, the market got off to an auspicious start, with new market launches to a favorable ruling regarding the Wire Act, and there more positive developments expected to take place this year.

The Wire Act case, which almost put an end to the shared liquidity project in the US after the DOJ reinterpreted the statute to apply to interstate poker, is likely to be put to bed by mid-June. It would give other operators, like BetMGM, the confidence to launch in Nevada and connect it with its existing operation in New Jersey.

It should also give confidence to states that have legalized online poker to join the multistate agreement. Michigan is already in talks with other states; Pennsylvania is thought to be in a similar position. This would expand from a three-state marketwhere two are very small and restrictiveto four- or five-state cross-border liquidity pool with multiple large states open for online poker and casino.

The more states combine their pool, the more attractive the market becomes and the more revenues the state generateswhich will then persuade other states lawmakers to legalize online gaming, including online poker. Smaller stakes like Nevada, Delaware and West Virginia, which would otherwise fail to survive as a standalone market, would benefit thanks to the games being shared with big states.

Another factor that could convince Entain to prioritize its iGaming launch in Nevada is the opportunity for online casino games. The NGC is considering amending its interactive gaming regulations to open up online gambling beyond poker and move forward with online casino games. These generate much higher revenues than peer-to-peer games.

All these factors are likely to incentivize Entain to go live in Nevada, perhaps by the end of this year.

Pokerfuse reached out to BetMGM (previously Roar Digital, a joint venture between MGM Resorts International and Entain) about their plans to launch online poker in Nevada, but the company remained tight-lipped and chose not to comment.

BetMGM recently expanded its poker operations in the US by going live in two states within the space of two months. BetMGM MI went live in March and BetMGM PA a month later, alongside sibling Borgata PA. It ended the de-facto monopoly of PokerStars in both the markets.

A launch in Nevada would allow them to combine their player pools with its existing partypoker New Jersey player pool and become only the second operator in the country after WSOP to do so.

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Partypoker's Parent Company Entain Secures Three-Year Interactive Gaming License Extension in Nevada - Pokerfuse

Greentube, the NOVOMATIC Interactive division, has strengthened its collaboration with Casino Du Lac Genve in Switzerland after taking its content live with the operators online brand pasino.ch.

Greentubes content has been available to Casino Du Lac Genves land-based customers for years, and the operators online players can now enjoy the popular games on pasino.ch. The deal further strengthens Greentubes position as a leading games supplier in the fast-growing Swiss online casino market.

Greentubes top-performing titles including Book of Ra deluxe, Lucky Ladys Charm deluxe, Super Cherry 5000 and Sizzling Hot deluxe are now available to local players following a successful integration. More popular games from the Greentube Collections, a unique portfolio which encompasses all the suppliers games series, will be launched throughout the year.

Since entering the Swiss online market in August 2019, Greentube has partnered with all major casino operators in the region and quickly established itself as a leading games supplier with content that is hugely popular with local players.

Casino Du Lac Genve is the Swiss arm of Groupe Partouche, one of the largest and historical casino groups in Europe operating 42 land-based venues. Its online brand pasino.ch was launched in November 2020.

Michael Bauer, CFO/CGO of Greentube, said: Casino Du Lac in Genve is one of the most prestigious and well-known land-based casinos in Switzerland. We are more than pleased to further strengthen our position in the market with this partnership. Our very well-balanced and localised portfolio of games has proven to be the clear favourite among Swiss players and this deal will help pasino.ch strengthen its online presence further.

Arieh Ghnassia, CEO at pasino.ch said: Our moto at Pasino is How We Work Together, How We Win Together. Working with Greentube is mandatory for us in order to deliver high standard of quality services and the best player experience to our players. With a proven track record in Switzerland and a diverse game offering, Greentubes portfolio is perfectly suited to our players needs. We have numerous projects in the pipeline and Greentubes collaboration will help us to take pasino.ch to the next level.

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Greentube cements footprint in Switzerland after going live with Casino Du Lac Genve brand pasino.ch - iGaming Business

A series of gambling regulatory reforms put forward by a House of Lords group could reduce industry profits by as much as 974m - but lead to a significant uptick in tax revenue and funding for research, education and treatment.

The costings were set out in a report compiled for Peers for Gambling Reform, carried out by Nera Economic Consulting. It estimated that the fiscal impact of the reforms set out in the groups July 2020 report, Gambling Harm Time for Action, would impact industry profits by between 696m and 974m annually.

The report notes that post-tax profits for the largest operators Entain, Flutter, Bet365, William Hill and National Lottery operator Camelot alone total 697m, at the bottom end of the estimated impact.

The 2020 report urged a root-and-branch overhaul of British gambling regulation, centring around five core goals.

It called for stake limits for igaming products and a standardisation of play speed across physical and digital products, as well as the introduction of affordability checks to ensure players did not gamble beyond their means.

In addition, it called for a smart mandatory levy on the industry to fund research, education and treatment of gambling-related harm, with the most harmful products subject to higher rates. Finally, peers recommended a ban on direct sponsorship of sport by gambling operators, and to classify video game loot boxes as a form of gambling.

The Nera-authored follow-up report looks to quantify the impact of these reforms on the industry.

Impact of stake limits and spin speeds

The report deals first with slot stakes. It assumes that any stake cap would be set at between 5 and 1.

Nera estimates that, based on 2017 analysis of slot stakes, customers wagered 1.38bn on the virtual machines. Should a 5 limit be applied, this would reduce amounts wagered by 14%, to 1.19bn.

A 2 limit, meanwhile, would widen the decline to 23%, reducing stakes to 1.06bn, while a 1 stake cap would take slot spend below 1bn, cutting amounts wagered by 36% to 891m.

However, the report noted, it does not look to quantify any substitution that may occur, such as customers playing for longer, or increasing lower bets to the mandatory limits. Nor does it look to estimate the effects of a spin speed limit. A mandatory 2.5 second limit was set by the Gambling Commission and is due to come into effect in October this year, while Peers for Gambling reform proposed the five second limit.

For table games, however, researchers considered the impact of time limits on table games, namely roulette. By setting a minimum spin duration of 88.6 seconds, players would increase their stake amounts, but bet place fewer stakes per session.

This, Nera said, would reduce amounts wagered by approximately 52%, based on a spin speed of 21 seconds, and as much as 76% if a spin speed of more than one minute was applied.

Impact of affordability checks

For affordability checks, the report analysed the impact of enhanced due diligence in a number of scenarios. It assumed that individuals would be allowed to make deposits of up to 100 or 10%, 15% or 20% of their monthly disposable income, whichever is greater.

This based the threshold at which affordability checks would be triggered on the Office of National Statistics estimated median annual income for the UK of 29,000, and a mean average of 36,900.

This was then extrapolated to balance the number of people falling into, below or above this bracket, with the number of online players in the country who would be subject to the new checks.

It found that based on checks being triggered by people spending more than 20% of their income, gross gaming yield for online casino would be reduced by 32%, or by 1.00bn. The decline was smaller for sports betting, for which revenue was estimated to fall by 22% (505m).

For checks triggered by spending above 15% of their income, online casino yield would decline 38% (1.20bn), and online betting 26% (604m).

The biggest decline would be caused by affordability checks once customers look to spend more than 10% of their income, with casino yield down 45% (1.44bn), and betting yield declining 31%, by 727m.

Mandatory levy

A mandatory levy on gambling to fund research, education and treatment (RET), meanwhile, is estimated to be set at 1% of industry profits, or approximately 150m.

According to the Responsible Gambling Strategy Board (RGSB), annual funding if there was a commitment to making a real difference in gambling harm would comprise at least 4.5m for research; 12m for education and significantly more than the 6m currently spent on treatment.

While optimal funding could be as high as 106.5m, with an effective treatment programme similar to that available for drug and alcohol services costing an estimated 90m. However, the report said that even a scaled-back version would mark a substantial increase on the industrys current RET funding of 19m.

Furthermore, at least 20m would need to support a gambling ombudsman, something else recommended in the Peers for Gambling Reform report. This, however, would help offset the additional costs incurred by the government on individuals that experience gambling-related harm, estimated between 270m and 1.17bn.

Loot boxes as gambling

Further costs would be incurred, however, by the need for the Gambling Commission to take on oversight for loot boxes. This would require the regulator to hire new staff and develops significant expertise, the report noted.

In total it estimated the cost of regulating loot boxes at 20m per year, though this would likely decline if the video game mechanic was not as widely used in console games.

Similar to the fees that gambling operators pay to cover the Gambling Commissions costs of regulating gambling, we assume that video game companies with loot box content would be assessed a fee that would cover the Gambling Commissions costs in regulating loot boxes, it added.

Sports sponsorship ban

One of the more controversial elements of the Peers report was a proposal to ban direct sponsorship of sports by gambling operators.

Nera estimated that front-of-shirt sponsorship deals with gambling businesses tended to be worth double a non-gambling sponsor, while Sky Bets sponsorship of the EFL brought in 40m per year. This, it said, meant that the total amount of revenue lost across the EFL Championship, League One and League Two would total 26m factoring in replacement sponsors or 2.4% of annual league revenue.

The biggest decline would be for the Championship, which lose around 2.6% or 21m of its yearly revenue, compared to 4m for League One and 2m for League Two, in both cases 1.9% of the divisions revenue.

The Rugby Football League, which is sponsored by Betfred, could lose between 500,000 and 950,000 of annual revenue.

To offset this, the report suggested introducing fees in exchange for the right to offer betting on the competitions, as well as a better distribution of revenue earned at the highest levels of sport such as the Premier League.

For that top tier, the report noted that only two clubs recently-relegated Fulham and West Ham United were sponsored by British bookmakers. Other clubs with gambling sponsors, it said, featured white label businesses on their shirts, which did not target British customers and would therefore be exempt from the ban.

Impact on other entertainment and hospitality sectors

The Peers for Gambling Reform report goes on to claim that revenue diverted away from gambling would be diverted into other sectors. It assumes that 100% of gross yield no longer going into gambling would instead go to retail trade; food and beverage; creative, arts and entertainment activities, and sports, amusement and recreation.

This, it added, could well be an over-estimate, especially if a player was spending unsustainably on gambling. They may also divert some revenue into other legal or illegal gambling activities, Nera noted.

This could then have a knock-on effect on revenue generated by these non-gambling forms of recreation and refreshment, which in turn could increase revenue, employee salaries and taxes, to offset decline in gambling tax revenue.

Nera estimated that this could ultimately lead to the creation of up to 30,000 new jobs and 400m in employee earnings, by diverting spend to more labour-intensive industries.

This report clearly sets out the economic benefits of reforming the gambling industry with tax revenues looking set to increase, jobs that could be created and a boost to funding for research, education and treatment, Peers for Gambling Reform chair Lord Foster of Bath commented. The evidence base and now the economic case for reform have now been made.

This Government now needs the resolve to get on with it.

One of the groups vice-chairs, the Bishop of St Albans, said the report clarified the fiscally responsible nature of its original recommendations.

By getting on with reform and expediting the introduction of legislation, we have a chance to save the thousands of lives ruined by gambling related harm each year.

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Lords report highlights benefits - and 974m costs - of gambling reform - iGaming Business