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Esports betting site Rivalry launches online magazine

Rivalry, one of 47 operators licensed by the Alcohol and Gaming Commission of Ontario (AGCO), has launched Rivalry Magazine in an effort to appeal to more bettors. The magazine was introduced as a “company blog and creative portfolio,” which will help keep players informed about new initiatives from the operator.

As part of the launch, Rivalry announced the launch of its first “esports cult”, known as Rivalry’s Secret Society of Extraordinary Esports Betting (RSSOEEB), through Rivalry Magazine. You can join the “cult” through a link on the Rivalry Magazine site to receive access to giveaways, watch parties for games, and exclusive content. The RSSOEEB focuses on League of Legends and DOTA 2.

Many articles follow a similar tone, sticking to Rivalry’s philosophy of providing a “deeply customized ‘magazine’ from scratch instead of standing up a soulless blog page”. Other pieces include “Why we turned “Cash Out” into a chicken drumstick”, “Creating a culture that cooks”, and “Casino.exe: Why our casino is running on a 1990s PC”.

Rivalry launched in Ontario in 2022. The company has been operating since 2018 with licenses from international regulators like the Isle of Man Gambling Supervision.

While the Rivalry platform allows bettors to place traditional sports bets and play casino games, its main appeal is its esports betting. Rivalry launched a dedicated esports betting app in May 2023. At the time, Rivalry cited a 15% increase monthly for its esports betting in ON and that 97% of its active users were Millennial and Gen Z players.

As a part of its commitment to promoting esports betting, Rivalry is a member of the Esports Integrity Commission (ESIC), a non-profit organization set up in 2016 to protect the competitiveness of the esports industry.

Better Collective acquires Playmaker Capital for $250M

Playmaker Capital, a Toronto-based digital sports media company with brands in Canada, the US, and South America, has agreed to be acquired by top affiliate group Better Collective.

The deal has been agreed for approximately €176 million (CAD$258.6 million), with Playmaker Capital shareholders receiving CAD$0.70 for each Playmaker common share. This represents a 46% premium to Playmaker Capital’s closing common share price on Nov. 3 and a 44% premium to its 10-day volume-weighted average price per common share for the period ending on the same date, the last trading day prior to the date of the purchase announcement.

The transaction is expected to close in the first quarter of 2024, subject to approval from Playmaker shareholders, court approvals, regulatory approval, and customary closing conditions.

The acquisition is the second-largest financial venture undertaken by Better Collective after its May 2021 purchase of The Action Network for USD$240 million ($328 million). Playmaker Capital will transition to become a fully-owned subsidiary of Better Collective.

Better Collective’s move to purchase Playmaker Capital is motivated by its desire to increase its presence in the South American market. Playmaker Capital has secured a market-leading position in South America and operates the most visited sports media brands in the region. This is mainly thanks to its Futbol Sites brand, a leading portfolio of web, social, video, and podcast sites geared towards Hispanic and Latin American audiences.

Playmaker Capital posted a recorded revenue of €55 million (CAD$80.8 million) in the last 12 months, in addition to an EBITDA of €15 million (CAD$22 million). Alongside Futbol Sites, It is the operator of sports media brands like Yardbarker, Wedge, and The Nation Network.

Additionally, according to the press release announcing the acquisition, the two companies will benefit from “enhanced scale and greater levels of product, technology, and marketing investments.”

“Over the past 12 months, I have been talking a lot about a transformational deal for Playmaker and its shareholders that will take this company to the next level. Today’s announcement does exactly that, and I could not be more excited for the Playmaker family to join the Better Collective family,” said Playmaker Capital CEO Jordan Gnat.

“Acquiring Playmaker is in many ways transformational for Better Collective and will be an important milestone in our journey towards becoming the leading digital sports media group. Upon closing of the acquisition, we will be able to significantly grow our audience and reach a larger segment of generalist sports fans,” added Better Collective CEO Jesper Søgaard.

AGCO fines PointsBet $150K for responsible gambling violations

The Alcohol and Gaming Commission of Ontario (AGCO) levied a serious fine against PointsBet after the operator was alleged to be negligent in complying with the province’s responsible gambling policies.

According to the statement from AGCO, PointsBet Canada repeatedly and severely violated policy regarding one specific customer who lost over $500,000 in the span of three months. The AGCO has levied a $150,000 fine against the operator.

Despite being flagged by PointsBet as high risk, at no point did the site intervene. The customer repeatedly canceled withdrawal requests and was not required to sit out from gambling for 24 hours after removing deposit limits on their account.

“In Ontario, iGaming operators have an obligation to proactively monitor their patrons’ play for signs of high-risk gambling, and to take appropriate actions to intervene and reduce the potential for gambling related harms. The AGCO will continue to focus on player protection by holding all registered operators to these high standards,” Said AGCO CEO and Registrar Dr. Karin Schnarr.

In addition to allowing the user to continue to gamble, PointsBet is said to have continued to market directly to the user despite the user withdrawing consent to be marketed to from PointsBet. The operator gave the user more than $35,000 in play credit and repeatedly offered them rewards like tickets to sporting events.

The AGCO concluded PointsBet employees lacked the necessary training and sensitivity when it came to the importance of responsible gambling.

In August, the AGCO served a similar fine of $100,000 to Apollo Entertainment for not appropriately intervening when a customer lost $2 million in the span of four months.

“We are aware of the recent allegations put forth by the Alcohol and Gaming Commission of Ontario.  Given this is an open legal matter, we will not provide further comment,” a PointsBet spokesperson told Canadian Gaming Business.

AGCO meets with CGA and operators to discuss ads

The Alcohol and Gaming Commission of Ontario (AGCO) has been meeting with the Canadian Gaming Association, along with sportsbook and casino operators and other interested parties in discussions on new gambling advertising changes.

Among those involved in discussions were President and CEO of CGA Paul Burns, Deputy COO of AGCO Brent McCurdy, Director of Strategic Policy at AGCO Ben Valido, and three further members of the commission.

In preparation for the meetings, AGCO released several questions it intended to ask to help clarify its new gambling marketing regulations:

  • What sections of the new standard are most in need of guidance to create greater clarity and certainty for your stakeholders?
  • We would welcome your thoughts regarding potential differences of opinion amongst stakeholders on what most needs guidance and the priority of those needs.
  • Is there a particular marketing or advertising practice, activity or idea that you are unclear about because of the new standard?

AGCO also held meetings with representatives from Ontario-licensed sportsbooks, including DraftKings, FanDuel, and PointsBet. Meetings are also planned with broadcasters to discuss new advertising standards and understand why some media outlets still accept advertising money from companies not licensed and approved by AGCO and iGaming Ontario.

These changes were initially introduced in late August, with AGCO saying in a statement to Gaming News Canada, “AGCO committed to providing some additional guidance to further support registered operators to ensure they understand and meet their obligations in the updated Standard.”

These changes are scheduled to take effect at the end of February 2024. The changes to the regulation will aim to protect children and younger people from being affected by gambling marketing by restricting how athletes and celebrities can appear in advertising campaigns.

AGCO said it has “received inquiries and requests for clarification from various groups that will be required to comply with the updated standards. As part of our collaborative approach and in an effort to offer additional support, the AGCO will engage with these groups to gain a comprehensive understanding of their questions.”

Speaking to Gaming News Canada, Burns said: “We’re grateful to have entered into this dialogue, and from what I’ve heard so far, it’s been a good exercise.”

North Star Gaming CFO departing on Dec. 1

Jennifer Barber, Chief Financial Officer of NorthStar Gaming Holdings Inc. will leave the company on Dec. 1, 2023. The current Vice President of Finance and Compliance, Chin Dhushenthen, will take over the CFO role on an interim basis.

NorthStar Gaming is an online gambling operator exclusive to the Canadian market, which currently operates only in Ontario. However, the software developer plans to launch its platform across the rest of Canada in the future.

Barber held the role for 18 months but will move on to pursue another opportunity outside of the gambling industry. NorthStar Gaming CEO Michael Moskowitz commented on Barber’s exit:

“On behalf of the board of directors, I would like to thank Jennifer for her contributions at an important time in our company’s development. She played a key role in our public listing process, the Slapshot Media acquisition, and the establishment of our financial reporting functions. We wish Jennifer the best as she moves into a financial leadership role in a new sector.”

NorthStar Gaming’s common shares started trading on March 8, 2023. The company completed its acquisition of SlapShot Media Inc. in May 2023. SlapShot was a Canadian company specializing in iGaming marketing. NorthStar made the move to aid its future aim of expansion across Canada outside of the Ontario market.

Interim CFO Chin Dhushenthen has over 25 years of executive experience and is a Chartered Professional Accountant (CPA). His previous roles include 13 years at CAPREIT, a significant provider of Canadian rental housing. He has also worked at The Hunter Group, Hydrogenics Corporation, and Azerty United Canada.

He joined NorthStar Gaming in 2021 and has covered a wide range of roles, including compliance, risk management, technology, and finance. His specialty at the company has been improving regulatory and compliance reporting.

Speaking about Dhushenthen’s new role, Moskowitz said, “ We anticipate a seamless transition to Chin as Interim CFO. He has great familiarity with our operations, having previously led our finance team and establishing our compliance system that meets the strict standards of our iGaming license.”

Woodbine racetracks increasing claims prices from December

Ontario-based Woodbine Entertainment Group (WEG), the operator of Woodbine Mohawk Park, Flamboro Downs, and The Raceway at Western Fair District, has announced it will increase prices on claiming horse races from Dec. 1, 2023.

Claiming races are a fundamental component of the horse racing industry. In these events, the horses running are available for purchase (claimed) for a set price. These races function as a mechanism for maintaining competitive balance by matching horses of similar market value against each other. They also serve as a marketplace for owners to buy and sell racing horses.

The claiming price is the cost at which a horse can be purchased out of a race. A higher claiming price typically indicates a higher-caliber horse and, consequently, a larger purse for the race.

The amendments at the aforementioned racetracks will see all Conditioned Claimers within the $15,000 to $18,000 bracket become $20,000 Claimers. Moreover, the minimum claiming price will experience an uptick from $7,000 to $8,000.

At Woodbine Mohawk Park, a series of increased prices will be introduced across various categories. For instance, the Non-Winners $2,000 Last 3 – Optional $15,000 Claiming category will transition to Optional $20,000 Claiming.

The Non-Winners $20,000 Last 5 – Optional $80,000 Claiming will increase to Optional $90,000 Claiming. Additional modifications will include increases in the standard claiming bracket, which will rise from $12,000-$16,000 to $14,000-$18,000, and upward adjustments in the Mares categories as well.

These changes are part of a concerted effort to elevate the Canadian horse racing scene. By raising the claiming prices, Woodbine Entertainment is aiming to attract a higher quality of horses and, in turn, generate more competitive and financially rewarding races.

Cloudfare report indicates Canadian gaming sites at growing cybersecurity risk

Website security company Cloudflare published a Q3 2023 Threat Report showing increased Distributed Denial of Service (DDoS) attacks on gambling websites, putting Canadian gambling operators at risk.

Over 5.41% of the total DDoS attack traffic recorded by Cloudflare in Q3 targeted gambling and gaming sites, taking over the Cryptocurrency sector that was previously the most targeted. Looking at specific regions, Cloudflare reported a 10% increase in Canadian cyberattacks year-on-year. Canada ranks fifth globally for DDoS attack traffic, behind the US, Singapore, Vietnam, and China. In total, Canada is responsible for a 1.687% share of all DDoS traffic globally.

DDoS attacks flood online gambling sites and other service providers with an overwhelming amount of traffic, leading to service disruptions or shutdowns. In some cases, DDoS attacks have peaked at 201 million requests per second, a significant increase from previous records.

The gambling industry’s vulnerability to such attacks is due to the vast financial transactions it processes daily. Any disruption can lead to significant financial losses and damage the industry’s trust and reputation with players. While motivations behind DDoS attacks can range from competitive rivalries to ransom demands or even simple mischief, the result is a significant threat to the continuity of online services.

Earlier this year, Gateway Casinos suffered a cyberattack that paralyzed some of its systems. The company responded swiftly, shutting down all of its Ontario locations and cutting off internet access. The immediate containment measures were crucial in managing the fallout from the attack.

Other prominent attacks in the gambling industry include the major ransomware attack suffered by MGM, which shut down systems for several days, and an attack on Caesars Entertainment properties, both in September of this year.

Cloudflare’s report identifies multiple countries, including the US, China, Brazil, Germany, and Indonesia, as major sources of DDoS attacks. This indicates that Canadian gambling companies’ digital defenses need to be equipped to handle threats from all over the world.

Six Nations Elects Sherri-Lyn Hill New Chief

Sherri-Lyn Hill, a tribe councillor who previously spoke in favor of establishing a casino on Six Nations land, has been elected as the Chief of the Six Nations of the Grand River. After serving on the Six Nations band council for a year, Hill was elected on Saturday for a four-year term.

During her election campaign, Hill stated that among her top priorities was economic stability, which would help provide the tribe’s nearly 27,000 members with mental health and housing services. Hill added that potential revenues from a casino on Six Nations tribal land could form part of this economic development plan.

“Economic development is huge. If there’s one thing that we [learned] through COVID, it is sustaining ourselves, and we really need to work on sustaining ourselves, [potentially] through a casino,” Hill said during an Oct. 25 election debate.

Currently, Canadian provinces control gambling operations within their respective jurisdiction, and many tribes have signed agreements with provincial governments to allow gaming on tribal land. However, the Canadian Senate is now looking to amend the Canadian Criminal Code, allowing the First Nations to license, conduct, and manage operations on tribal land without the approval of provinces.

Chiefs Roy Whitney from the Tsuut’ina Nation, Bobby Cameron from the Federation of Sovereign Indigenous Nations, Aaron Young from the Chiniki First Nation, and Clifford Poucette of the Stoney Nakoda Nations joined bill backer Senator Scott Tannes in a press conference in support of the bill on June 20.

Blazesoft named one of Canada’s top employers

Blazesoft, an online gaming company serving the Canadian market, has been named as one of the best employers in Canada after an evaluation from the Great Place to Work Institute. 

The parent company of brands such as Fortune Coins, Zula Casino and Sportzino, has achieved the Great Place to Work certification after the evaluation deemed that it has an “outstanding workplace culture”. 

Yuliy German, SVP of Strategic Initiatives at Blazesoft, explained: “I have had the privilege of being a part of this incredible company for some time now, and I am continually amazed by the exceptional culture, dedicated team, and the outstanding benefits it offers. 

“One of the standout features of this company is the remarkable employees; colleagues quickly become friends, mentors, and collaborators. The strong sense of unity and collective achievement is evident in every project we undertake.”

The certification was handed out based on two key components: two-thirds of the total score derives from anonymous employee surveys and the remaining third from an in-depth study of the company culture.

Auditors found that Blazesoft offers a collaborative, inclusive and innovative culture where there is a positive atmosphere between colleagues. 

Nancy Fonseca, Senior Vice President of Great Place to Work Canada, noted: “Our data shows that great workplaces benefit from stronger financial performance, reduced turnover, and better customer satisfaction than their peers. What’s more, work environments with trust at the foundation are ripe for innovation, agility, resilience and efficiency.”

Blazesoft states that it has always strived to implement several core tenets in its offices to achieve success. This is underpinned by its emphasis on respect, inclusivity and employee benefits such as advanced medical care. 

The firm also offers staff extra activities such as holiday parties, annual company trips to the Caribbean and “Happy Friday” lunches. 

Mickey Blayvas, Blazesoft CEO, added: “We are honored to receive the Great Place to Work certification, validating our ongoing efforts to create a workplace where every team member feels valued and recognized. I am proud to be a part of a rapidly growing Canadian business, where we celebrate so many diverse cultural traditions.

“Our culture influences the way we work, rather than us trying to influence it; we’re creating a true community. With the certification, I am certain we will continue to attract top candidates.”

Canadian expansion helped boost VICI Q3 performance

VICI Properties, a NYSE-traded real-estate trust company, owns 54 gaming properties across the US and Canada. Its portfolio includes some of the most iconic gambling destinations in North America, such as Caesars Palace, Borgata, MGM Grand, and Mandalay Bay. 

VICI recently expanded its portfolio in the Canadian market. In September, the company completed the acquisition of four gambling properties in Alberta from Century Casinos for a total of C$221.7 million. The deal comprises all of Century Casino’s land-based properties in Canada, including Century Casino & Hotel Edmonton, Century Casino St Albert, Century Mile Racetrack and Casino, and Century Downs Racetrack and Casino.

The Canadian real-estate portfolio includes nearly 80,000 gaming square footage, 170 acres of total land, nearly 2300 slot machines, and 75 VLTs. 

Century’s previous owner will continue to manage the operations at the sites as part of a wider master lease agreement between Vici and Century Casinos. Vici announced that Century Casino’s annual rent would increase by C$17.3 million, or 7.8% of the cost of the acquisition. 

Century Casinos reported record revenues in the second quarter of 2023 but suffered a 96.3% decline in net profit year-on-year. The company’s co-CEOs, Erwin Haitzmann and Peter Hoetzinger, have indicated that they will use funds from the sale to improve other properties, including the Nugget Casino Resort, and pay down existing debt. 

“This transaction unlocks the real estate value of our Canadian properties while continuing our Canadian operations and provides us with greater financial flexibility as we continue to grow. We are pleased to extend our good partnership with VICI to our Canada portfolio,” they said in a statement on the completion of the purchase. 

Last week, VICI Properties released its financial results for the third quarter of 2023, showing a 20.3% increase in revenues, reaching US$904.3 million. Additionally, the net income attributable to common stockholders increased to US$556.3 million, up from the previous year’s US$330.9 million. 

“VICI’s third quarter financial performance reflects our sustained, sustainable commitment to accretive growth and capital deployment through acquisitions and strategic financing activity,” siad VICI Properties CEO Edward Pitoniak.

With an impressive financial performance in the third quarter of 2023, including a 20.3% rise in total revenues, Vici’s strategic initiatives, including its Canadian acquisitions and financing activities, have contributed to this growth.