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MGM launches bid to acquire LeoVegas

Having fallen short with its attempt to buy its BetMGM co-owner Entain in a multi-billion-dollar deal last year, MGM Resorts International has turned its attention to Swedish iGaming company LeoVegas.

The hotel operator announced on May 2 it has offered around US$607 million for 100 per cent of LeoVegas’ shares, which was one of the first gaming operators to go live in Ontario’s new regulated online gaming market last month.

The LeoVegas board of directors has unanimously recommended the company’s shareholders accept the MGM offer, saying it represents a premium of approximately 44.1 per cent compared to the closing price of around US$4.28 on April 29, the last trading day before the offer was announced. Shareholders representing around 15.3 per cent of the company’s stock have already pledged to accept the offer, including CEO Gustaf Hagman, reports Covers.

If approved, MGM anticipates the deal closing during the second half of the 2022 fiscal year, although that will depend on the receipt of certain shareholder and regulatory approvals. That includes MGM securing the ownership of more than 90 per cent of LeoVegas shares.

“LeoVegas operates in an industry which is characterized by, inter alia, high innovation pace, new regulation and consolidation,” a press release from the LeoVegas board said. “In this context, the Board of Directors believes that the industrial logic and strategic fit between LeoVegas and MGM is attractive and should serve both the company and its employees well in the future.”

“Our vision is to be the world’s premier gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world,” MGM Resorts CEO and President Bill Hornbuckle said in a press release. “We have achieved remarkable success with BetMGM in the U.S., and with the acquisition of LeoVegas in Europe we will expand our online gaming presence globally.”

Writing on LinkedIn, Hagman said he sees “huge potential” in what LeoVegas and MGM could achieve together.

“Merging the two is a very exciting prospect. MGM Resorts has an ambitious agenda and financial muscles that would enable LeoVegas to grow quicker. Together we can make LeoVegas the largest iGaming brand in the world! Given these circumstances, I think MGM is a perfect partner – and that’s why I am supporting this offer.”

MGM is thought to be one of numerous suitors for LeoVegas, with the latter’s announcement noting it has “received several indications of interest or non-binding offers concerning a potential tender offer.” However, MGM’s offer is above what other parties are thought to be willing to pay.

MGM operates more than 30 hotels and casinos around the world, and splits ownership of BetMGM, another operator which is live in Ontario, 50/50 with Entain. The company ended up withdrawing its attempted buyout of Entain after the British gaming firm claimed the US$11 billion offer undervalued its shares and prospects.

LeoVegas was founded in 2011 and holds gaming licenses in eight jurisdictions, which are mostly European other than Ontario. It is mostly known for its online casino offerings, but also has a sportsbook powered by Kambi. According to Legal Sports Report, it gets about a quarter of its revenues from .com markets, including Latin America.

Analyst firm Regulus Partners suggested the deal could help MGM extricate itself from the BetMGM joint venture with Entain, noting that “by owning LeoVegas, MGM will clearly compete with Entain everywhere but the US. The three will also be going head-to-head in Canada.”

CGA President Paul Burns to be inducted into Sports Betting Hall of Fame

The President and CEO of the Canadian Gaming Association, Paul Burns, will be one of four industry leaders inducted into the Sports Betting Hall of Fame for 2022.

Burns is the first Canadian to be named to the Sports Betting Hall of Fame and will be officially inducted at a special ceremony at Meadowlands Racing & Entertainment in East Rutherford, NJ on Wednesday, July 13, 2022 as part of the SBC Summit North America 2022, which is scheduled for July 12-14 in New Jersey.

“The induction was a surprise,” Burns told US Bets. “It was great they reached across the border to recognize a Canadian and I am grateful and very appreciative of the recognition.”

Alongside Burns will be Chris Andrews, Sports Book Director of South Point Hotel, Casino, & Spa in Las Vegas; Sandy Drozd, Vice Presiden of USBookmaking; and Vinny Magliulo, Vice President of the Las Vegas Dissemination Company & Sports Book Director at Gaughan Gaming.

The Sports Betting Hall of Fame was established to recognize the achievements and outstanding contributions of the pioneers who have made a long-lasting mark on the industry. The criteria include individuals who have long experience in the industry as a significant and responsible figure in promoting the sports betting industry, and who have had a prominent role in promoting the public’s awareness and appreciation of the importance of sports betting.

Burns’ induction recognizes, among other career achievements, his prominent role in the ongoing reform of Canada’s sports betting and iGaming industry, within which the opening of Canada’s first regulated private online gaming and betting market in Ontario last month was a key landmark.

RELATED: A Q&A with Paul Burns ahead of the 25th Canadian Gaming Summit

Burns’ longtime CGA colleague Amanda Brewer, a gaming consultant who is now Canada’s country manager for Kindred Group, called the induction “well-deserved” and emphasized there are many who owe him their thanks for helping to create the opportunity to legalize single-event sports betting in Canada.

Sue Schneider, SBC’s Vice President of Growth and Strategy, Americas, said: “As the industry enjoys substantial growth in multiple U.S. states and Canada, the Sports Betting Hall of Fame ceremony is an opportunity to celebrate the contributions of some of the trailblazers who have helped to make the current success possible.”

The new inductees expand the North American representation in the Sports Betting Hall of Fame, as they join the likes of class of 2019 members Art Manteris (retired VP of Race and Sports Book Operations at Station Casinos) and Dennis Drazin (CEO of Monmouth Park), 2020 inductees Victor Salerno (President of USBookmaking & US Fantasy Sports) and Sara Slane (former Sr. VP of the American Gaming Association), and last year’s nominees including Yolanda Acuña (former Director of Administration at MGM Resorts) and Joe Asher (President of Sports Betting at IGT & former CEO, William Hill US).

Image via SBC Americas

Auditors general urge Atlantic Lottery reforms

The Atlantic region’s auditors general highlighted in a report released on April 26 that several key recommendations made to Atlantic Lottery Corporation (ALC) more than five years ago are still yet to be implemented.

Back in 2016, the auditors general’s report advocated for an update to ALC’s shareholder agreement and bylaws, which the auditors general say hasn’t happened in a decade. The shareholders of the corporation are the gaming commissions of the region’s four provinces.

That is among four of nine 2016 recommendations intended to improve the corporation’s governance and business agility which have not been fulfilled.

“The board needs direction from its shareholders and that’s why the (shareholder agreement) is an important document,” Nova Scotia auditor general Kim Adair said, as quoted by Global News. “It is the overriding agreement that sets the framework and objectives of the organization.”

The report also noted the region’s governments have not completed a review of the corporation’s underfunded pension plan, which has swallowed up $87 million in potential profit in order to cover a shortfall between 2012 and the end of 2021, although it did recognize that a pension committee has been authorized to oversee the plan.

In addition, a long-standing disagreement over whether elected officials and government employees should be excluded from the board has not been resolved, an issue which had been flagged in 2016 and reiterated in a 2019 follow-up report. The region’s provincial governments, the report said, maintain that it is in their best interests to continue having civil servants as voting members of the board.

The four governments have agreed to appoint eight independent voting shareholder representatives and keep the remaining four spots on the board for senior public servants. They have also agreed to create staggered three-year terms for members of the board.

However, the report noted that there is no term limit for the chairman of the corporation’s board. The current chair, Sean O’Connor, has been in his role since 2007 after having served as vice-chairman since 2000, and the auditors said that tenure is much longer than best practices recommend.

Adair said she and the other three auditors general think their recommendations are necessary to ensure the proper operation of the corporation, which has been around since 1976. “It has functioned very well, but they are in a very dynamic and competitive industry,” she said.

IGT becomes first US gaming supplier to receive G4 sports betting accreditation

International Game Technology (IGT) has announced that it has become the first U.S.-based gaming industry supplier to receive the Global Gambling Guidance Group (G4) responsible gaming accreditation for its sports betting operations.

The company’s President of Sports Betting, Joe Asher, said IGT is “honoured” to be the first supplier to achieve G4 accreditation. G4’s goal is to reduce the impact of problem gaming by promoting a worldwide accreditation program for the remote and e-gambling industry and operators.

“IGT’s proactive approach to responsible gaming and achieving prestigious G4 certifications sets the pace for the entire industry to go above and beyond what state regulation mandates when it comes to player protection,” added Asher. “As sports betting continues its expansion across the U.S., IGT is actively demonstrating that it is now more important than ever to exercise strong responsible gaming support.”

IGT has been awarded G4 certification as its responsible gaming code of practice includes corporate practices; supporting practices and policies; player protection information; advertising and marketing code of principles; employee training and support; player protection tools; third-party research and application for improving responsible gaming tools and approaches.

Pieter Remmers, Chairman of the G4 Board of Directors, added: “G4 applauds IGT for making responsible gaming a top priority across all of its business verticals. G4 appreciates having IGT as an accredited member and glad to see the company continue leading the gaming industry with its responsible gaming initiatives.”

IGT is now certified for responsible gaming across its lottery, gaming, digital, and betting product segments. The supplier received G4 certification for its gaming operations in 2017 and its digital solutions in 2019, while its lottery and iLottery businesses are certified by the World Lottery Association.

Casino Rama workers getting “significant” pay rise

Unifor Local 1090 member workers at Gateway Casinos & Entertainment’s Casino Rama will benefit from “significant” wage increases under a new three-year collective agreement ratified on April 14.

According to the union, workers will see a three per cent increase in both years one and two of the agreement, and a 3.5 per cent increase in year three.

Gains for members working in the skilled trades are even higher, the union noted, at five per cent each year.

“Since joining Unifor in 2015, workers at Casino Rama have seen massive wage increases and new benefits that would have been impossible in a non-union environment,” said Corey Dalton, president of Unifor Local 1090.

Gateway Casinos & Entertainment told Simcoe.com it is “pleased that our employees have ratified the proposed collective agreement with Unifor at Casino Rama Resort.”

The agreement is the second of two recently ratified collective agreements for Unifor members at casinos in Ontario.

Unifor Local 444 members at Caesars Windsor Hotel and Casino ratified their own three-year collective agreement in late March that includes wage increases in each year and a pension enhancement.

PointsBet Canada names former Rogers exec as VP of Strategy

PointsBet Canada has appointed former Rogers Communications director Brett Jackman as its new Vice President of Strategy as it looks to build upon its launch in the Ontario market.

The company says Jackman brings 15 years of strategy and transformation leadership experience to the position. Most notably, as Senior Director of Corporate Strategy for Rogers, he played a key role in the firm’s $26bn acquisition of Shaw Communications and also helped the company’s efforts to bring high-speed connectivity to underserved rural and indigenous households across Ontario and Atlantic Canada.

In previous roles, he has advised large North American businesses on their growth strategy initiatives and top priorities, including new market and product launches, enterprise transformations, and M&A.

Commenting on his new role, Jackman said in a news release: “The opening of the regulated iGaming market in Ontario represents one of the most exciting business opportunities within Canada in recent memory. As the industry collectively continues to build, we know this space will soon touch so many Canadians from coast to coast to coast. I look forward to playing a role in ensuring that PointsBet Canada capitalizes on this incredible opportunity and delivers a truly authentic and differentiated product experience for Canadian sports fans.”

PointsBet Canada has been very active in recent months as it looks to establish itself as a contender for market leadership in Ontario, partnering with the likes of Toronto-focused sports conglomerate Maple Leaf Sports & Entertainment (MLSE) and the Ottawa Redblacks CFL franchise.

After securing a license to operate in Ontario, the company also went public in February with its desire to potentially expand operations into Alberta.

“Brett’s expertise and vision will be absolutely crucial in helping shape PointsBet Canada’s priorities as we forge further ahead into the budding sports betting landscape,” said CEO Scott Vanderwel. “As our commitment so far has shown, PointsBet Canada has big ambitions, and I am thrilled to have Brett alongside us moving forward to help shape and drive our growth agenda, building upon the strong foundation we’ve assembled thus far.”

AGCO provides advertising & marketing update for operators

The Alcohol and Gaming Commission of Ontario (AGCO) has updated its advertising and marketing guidelines for operators in the Canadian province’s newly launched iGaming market, offering further transparency around the rules regarding bonuses and offers.

Private sportsbooks had already been prohibited from advertising sign-up offers to potential customers in the Ontario market. Now, in response to applicant and registrant queries, the AGCO has clarified that within Standard 2.05 of the Registrar’s Standards for Internet Gaming, the “Inducements, Bonuses, and Credits” section stipulates that “public advertising of inducements, bonuses and credits is strictly prohibited, including targeted advertising and algorithm-based ads” no matter if they are advertised directly or indirectly, as reported by SBC.

For example, direct inducements include “sign-up offers, deposit offers, offers of a reward, bonus or ‘boosted’ odds, refund/stake-back offers, multi-bet offers, or winnings paid on losing bets”, while indirect inducements “includes, but is not limited to, the display of promotional codes and/or general references that invite individuals or the general public to learn more about inducements on the gaming site”.

However, such offers may be displayed on the betting brand’s own platforms and may also be delivered via “direct marketing to individuals that have first consented, on the gaming site, to receive them”. Consent must be obtained from players on a registered Ontario gaming site and any permission obtained elsewhere or before the market opened does not meet the standard.

Displayed inducement, bonus and credit offers must declare “all material conditions and limitations at the offer’s first presentation” to give players the information they need before they make a decision on the offer.

Making security easy with EnStream

EnStreamThe proliferation of online gaming and betting in Canada breeds new and heightened security and anti-fraud concerns. Recent estimates suggest that up to 75 per cent of all betting is done on a mobile device and major developments such as the opening of Ontario’s regulated online gaming and betting market are only likely to increase the amount of mobile betting activity.

Generally, operators will have end users sign up with details such as name, address, and age, and login through an account to deposit funds and place bets. Many users may well repeat this process with multiple gaming sites and mobile apps.

In this climate, how can gaming operators be entirely confident that they are protecting the identity, privacy, and details of their users and safeguarding themselves from fraud and invasion of security?

EnStream is a joint venture of Canada’s leading mobile telecom companies – Bell Mobility, Rogers Communications, and TELUS Communications – that has over 15 years’ experience providing identity, location, and payment verification and authentication services for third-party applications that work on connected mobile devices. It is the only company with direct access to mobile telecom information in Canada, covering over 90 per cent of Canadians on all major mobile networks through a single connection point and a single business relationship.

Foolproof verification

The unfortunate truth is that anyone can pretend to be anyone else online. Trusted digital identities are the foundation of a modern digital economy, and EnStream is dedicated to increasing online trust and convenience for consumers and businesses using real-life, verified identities and network information held by trusted mobile networks.

Put simply, EnStream offers access to the mobile network operators’ mobile resources to verify both the mobile device and the account owner associated with that device. Its reliable and spoof-proof location and authentication services provide timely and accurate verification of user details such as carrier network, mobile number, SIM card, account status, and device information with end-user consent to enhance convenience and reduce identity theft and fraud.

EnStream’s tools are ideal for mobile gaming operators as a secondary source of reliable information for account opening, anti-money laundering compliance, and contact number verification. They reduce account takeover and fraud risks using mobile device information as a seamless, “silent” second factor for authentication. No personally identifiable information is held by EnStream any longer than required to process a transaction, ensuring data quality, security, and privacy.

Easing location, AML, and KYC concerns

Eligibility to use gambling or betting sites or apps often requires users to be within a particular jurisdiction. EnStream’s network-based mobile location services can verify any mobile device location in real-time without any preloaded software, using technology based on the same technology used by first responders to determine mobile device location in emergency situations for simple, fast, and reliable results.

Meanwhile, anti-money laundering compliance is vital for gaming companies and brands to operate legally and safely in their markets. EnStream offers key safeguards for Know Your Customer (KYC) rules and helps operators ensure they are meeting those AML compliance requirements, serving as an accepted secondary source in the dual-source method, where a primary source is an official government-issued financial credential. If a fraudster were to try logging into an account with false credentials, EnStream can verify whether the device being used is the same one associated with that account by providing a unique subscriber token that can be verified in real-time each time the user accesses a service. The system also detects any changes and sends push notifications to alert its customers of account changes, including account suspension or termination and mobile number changes.

Safeguarding the future of gaming

Online and mobile gaming is set for a period of significant and continued growth in Canada. Securely identifying users as they open accounts and as they return will be vital for the security and success of digital gaming operators.

In most cases, the complicated and rapidly evolving identity and security space is not the core competency of gaming operators. However, it is the core competency of mobile operators for their own business purposes. Through EnStream, mobile carriers are taking on the technical work that goes with device verification and making it available to gaming operators to leverage it as an independent and enhanced source of verification.

All of these mobile verifications can be executed in seconds, working silently and seamlessly in the background to provide an operator- and end user-friendly security experience that is resilient to fraud attacks.

For mobile gaming operators looking to the future, utilizing the best tools will be vital to success. EnStream does the hard work of verification and authentication so you don’t have to.

Find out more at https://www.enstream.com/.

Penn National partners with US Integrity

Penn National Gaming, the owner of leading Canadian sportsbook theScore Bet, has partnered with US Integrity (USI) to strengthen operations for both companies across the Canadian and U.S. regulated markets. 

USI will supply its integrity monitoring services via its proprietary dashboard to Penn National and its brands, which also include Barstool Sports and numerous U.S. casinos, and will also provide Penn with data analysis to proactively identify irregular wagering.

Matthew Holt, USI’s CEO & Co-Founder, explained: “US Integrity is proud to partner with Penn National and assist as they grow their brands across the US and Canadian regulated sports wagering markets. USI’s mission is to provide conflict-free, best-in-class insights and compliance solutions to our clients. We are looking forward to working with the exceptional team at Penn National; all our partners are committed to the highest integrity standards, and they are no exception.”

Chris Soriano, Chief Compliance Officer of Penn National said USI plays “a pivotal role” in combating suspicious wagering. “We are excited to be working with US Integrity as we continue to expand our industry-leading brands Barstool Sportsbook and theScore Bet across the regulated US and Canadian markets. USI’s commitment to maintaining integrity as well as their proactive approach will play a pivotal role in detecting and sharing any potentially suspicious wagering activity.”

USI’s partnership with Penn quickly follows another deal that saw it launch its solutions with PointsBet Canada, which represented its first client outside of the regulated U.S. market.

DAZN appoints BoyleSports CEO to lead new betting brand

Sports streaming business DAZN has appointed BoyleSports chief executive Mark Kemp to become the new CEO of the DAZN BET brand it announced last week.

Kemp, who has been CEO of BoyleSports since 2021, will bring more than 20 years of experience to the role, having previously spent time in senior roles with the likes of UK Tote Group, Ladbrokes, and Coral. He will work towards the company’s goal to “revitalize” and “disrupt” the casual betting market by developing a betting service that will be converged with its OTT platform.

“I am delighted to be joining DAZN BET to launch such a new and exciting international brand,” Kemp said. “With the strength and expertise of DAZN in sports media, we will deliver something recreational and relevant to today’s audience. I am looking forward to working with the new team and DAZN to build an engaging and responsible new entertainment proposition for sports fans across the world.”

The group’s executive vice president of betting, Ian Turnbull, added: “Sports betting partnerships are just one of the ways in which DAZN is going to deliver more exciting and richer content for its customers. We know that fans want more integrated, immersive, and interactive experiences as they enjoy long-form content. DAZN is giving them that.”

Last week, the company announced that it had partnered with betting and gaming supplier Pragmatic Group in order to roll out DAZN BET, which is set to soft launch in jurisdictions including Ontario from August.

It had previously signalled its plans to expand into betting by appointing former Entain executives Ian Turnbull as EVP of Betting and Sandeep Tiku as Chief Technology Officer last year.