Page 187 – canadiangamingbusiness

National Basketball League of Canada selects IMG as betting partner

May 5, 2022

The National Basketball League of Canada (NBL Canada) has selected Endeavour Group’s sports subsidiary IMG Arena as its official sports betting data supplier.

The two organizations’ exclusive audio-visual sports betting and data rights deal will begin at the start of the 2022/23 season with distribution to IMG Arena’s network of sportsbook operators worldwide.

“This is an important step for NBL Canada as we move into the sports betting realm and it’s an honour to do so with such a respected and experienced partner in this space,” said NBL Canada vice president of operations Audley Stephenson.

IMG Arena’s technology will give fans access to real-time data, allowing NBL Canada to grow their reach while also offering sportsbook operators new content.

IMG Arena rights director Mark Wrigley said: “NBL Canada is an established organization with an exciting brand. We are delighted they have chosen IMG Arena to work with them on their entry into sports betting and look forward to building a strong relationship to help grow their offering and audience by engaging fans around the world.”

Segev LLP promotes gaming, securities experts to partner

May 5, 2022

Law firm Segev LLP has promoted lawyers Aadam Tejpar and Marius Adomnica to partners and elevated lawyer Evie Sheppard to an Of Counsel position at the firm.

Adomnica has been with Segev since 2014 and has worked at the forefront of the firm’s technology, iGaming, and video game and esports law services, developing deep expertise in these fields.

Tejpar has been with Segev LLP since 2018 and has built a successful securities practice.

Sheppard has been an integral part of the Segev team for over four years and has made a significant impact in developing its commercial and corporate finance practices. Her experienced and thoughtful approach to sophisticated matters is highly respected by her peers and clients.

Segev LLP is a full solutions business and technology and securities law firm headquartered in Vancouver, with satellite offices in the USA and China. It provides insights, analyses, access, and strategy services to some of the world’s best and nimblest businesses, all underpinned by out-of-the-box thinking and high-quality legal work.

Segev LLP is recognized as a world leader in interactive entertainment, gaming, and betting law, and is also a leading corporate, commercial, and finance law firm for other bleeding-edge ventures.

CGA welcomes GeoComply, Bet99, FIS as new members

May 4, 2022

The Canadian Gaming Association (CGA) has expanded its membership roster by welcoming companies including GeoComply, Bet99, and FIS to its ranks.

GeoComply

GeoComply is a leader in geolocation security and compliance and provides fraud prevention and cybersecurity solutions that detect location fraud and verify customers’ true digital identities. Its software is installed on over 400 million devices worldwide and analyzes over three billion transactions a year across various industries.

Within the gaming industry, the Vancouver-based company works with the likes of William Hill, Caesars, Scientific Games, FanDuel, Golden Nugget, Bet365, 888 Holdings, and more, and its IDComply won Digital Product of the Year at the 2021 Global Gaming Awards.

Bet99

Bet99 is an online casino and sports betting operator that is licensed by the Kahnawá:ke Gaming Commission and has operated in the country’s grey market since 2020 prior to the launch of Ontario’s regulated gaming market. It intends to launch in the new market in the coming weeks. Its offerings are tailored specifically for Canadian sports fans.

The sportsbook recently signed a high-profile partnership by bringing Toronto Maple Leafs star Auston Matthews on board as a brand ambassador. The deal made Matthews the first active NHLer to sign an endorsement deal with a betting company and sees the NHLer promote the company’s free-to-play site in Ontario. Canadian UFC fighter Georges St-Pierre is also a Bet99 ambassador.

FIS

FIS is an American multinational Fortune 500 corporation which offers a wide range of financial products and services. Its Worldpay offering provides online gaming payment processing that satisfies global gaming customers however they want to pay and processes at a capacity of thousands of transactions per second.

With access to the leading domestic payment partners and a vast network of alternative payment types, it allows operators to increase revenue through fast, safe and efficient online gaming payment processing.

Check out the full list of CGA members.

AGEM Index ends growth with 9.7 per cent drop in April

May 4, 2022

The AGEM Index ended a three-month period of growth by falling by 92.98 points to 862.42 in April, marking a 9.7 percent decrease from the prior month.

Compared to one year ago, however, the index added 3.99 points for an annual growth rate of 0.5 per cent.

During the latest reporting period, 11 of the AGEM Index companies reported stock price declines, with only one company posting an increase. As a result, all 12 companies in the AGEM Index posted negative contributions to the overall index.

The largest negative contributor to the monthly index was Aristocrat Leisure, which reported a 47.42-point index loss as a result of an 8.3 per cent decline in stock price. Meanwhile, International Game Technology (IGT) suffered an 11.40-point loss to the index due to a 11.6 per cent drop in the company’s stock price. Despite a 3.7 per cent increase in stock price over the period for Konami, a weakened exchange rate between the United States dollar and the Japanese yen led to a 5.19-point loss for the index.

The decline game at a time when all three major U.S. stock indices observed negative growth. The Dow Jones Industrial Average decreased by 4.9 per cent from March, while the S&P 500 fell by 8.8 per cent. Meanwhile, the NASDAQ saw a 13.3 per cent decline over the month.

The Association of Gaming Equipment Manufacturers produces the monthly AGEM Index that comprises 12 global gaming suppliers throughout the world and is based on the month-end stock price of each company and weighted based on an approximation of market capitalization.

Auditor predicts Ontario betting & gaming will generate $75M by 2025

May 4, 2022

An Ontario Auditor General report has predicted that the regulated private market for online Ontario betting and gaming is expected to generate around $75 million in revenue for the provincial government over the next three years.

Auditor General Bonnie Lysyk’s latest fiscal review included a breakdown of the estimated net income of iGaming Ontario, the agency charged with executing operating agreements with companies and overseeing the market.

Lysyk’s report said that financial projections indicate that iGaming Ontario is expected to see net income of $18 million for the 2022-23 fiscal year, followed by $26 million for 2023-24 and $31 million for 2024-25, totalling a combined $75 million over three years.

The report noted that the total may vary as “given the lack of history in this area, it was not feasible to assess the reasonableness of the projections.” A small portion of iGaming-related funds is expected from sales tax on top of that $75 million projection.

One major aim of Ontario’s new market is to bring betting revenues from offshore and formerly grey market sites into regulated channels. It is estimated that Ontario residents were spending around $700 million a year on grey-market sites before April 4.

The auditor general’s report didn’t say anything about how much revenue private iGaming operators are expected to generate in Ontario overall. Whatever that number winds up being, the province’s reported tax rate for companies participating in the new iGaming market is 20% of their revenue.

iGaming Ontario also says its approach to reporting revenue will be communicated at a later time.

“iGO is encouraged by the number of operators that have joined the regulated market and the level of iGaming activity seen to date,” the agency told Covers. “Given the recency of the market launch and the anticipated growth as more operators go live, iGO is constantly in the process of reviewing and revising any forecasts made prior to launch.”

AGCO fines BetMGM, PointsBet over alleged advertising breach

May 4, 2022

The Alcohol and Gaming Commission of Ontario (AGCO) has announced that it has issued penalties to the Canadian operations of BetMGM and PointsBet for alleged advertising and inducement infractions.

The two companies have been served with Notices of Monetary Penalty for alleged infractions of the Registrar’s Standards for Internet Gaming pertaining to advertising and inducements.

Standard 2.05 details restrictions on the advertising of inducements, bonuses, or credits, except when they are on an operator’s site or through direct advertising and marketing issued after receiving active player consent. Meanwhile, Standard 2.04 requires that materials must not imply that the chances of winning increase with the more one spends.

BetMGM Canada has been issued a fine totalling $48,000 for its alleged failure to comply with Standards 2.04 and 2.05.

The AGCO says that contrary to Standard 2.04, the company tweeted that “the more money you put in per bet, the higher your chance is of winning” on April 10, which the AGCO said was misworded and too suggestive of something that is not a fact. In addition, the AGCO asserts that BetMGM posted three separate advertisements on Twitter that were in alleged contravention of Standard 2.05. One was a “$250K Launch Party” advert, including a contest offer where the winner would receive a $100,000 casino bonus; another was a “Bellagio” ad, including an offer of a $10 casino bonus in return for a $25 bet; and the third was a “Jimi Hendrix Free Spin Friday” for the chance to win 100 free spins.

Meanwhile, PointsBet Canada has been fined $30,000 for an alleged failure to comply with Standard 2.05. The AGCO says it advertised two gambling inducements for customers to play for free, one via posters on GO trains and in multiple products and the other via posters at two GO train stations.

Registered operators served with a Notice of Monetary Penalty have the right to appeal the Registrar’s action to the License Appeal Tribunal, an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

PointsBet Canada CEO Scott Vanderwel issued a public apology for “our error made in the interpretation of the standards” and emphasized that the company will ensure it toes the regulatory line in the future.

Ontario is one of the only jurisdictions in the world to prohibit broad public advertising of bonuses and other gambling inducements. The Standards were finalized and announced in September 2021 ahead of Ontario opening its legal online gambling market on April 4 this year.

Canadian Gaming Association President and CEO Paul Burns told PlayCanada that the regulations are a learning curve for everyone in the industry.

“Regulations are one thing when they’re written. In terms of understanding how those are being applied, I think it’s going to be a bit of a learning process for everybody,” Burns said. “I think it will sort itself out in the coming months. But obviously, the AGCO wants to set the tone of what they look for in compliance. Inducements and incentives were really one of the particular areas where they were very firm.”

Kambi to power Fallsview Casino’s online sportsbook

May 3, 2022

Mohegan Gaming & Entertainment (MGE) has signed up Kambi Group to leverage the latter’s market-leading online mobile sportsbook at Fallsview Casino in Ontario.

The multi-year deal will see MGE use Kambi’s award-winning technology and mobile sports betting offering, including its expansive Bet Builder capability, for its PlayFallsview online mobile sportsbook brand.

Operated by MGE, Fallsview Casino is the largest gaming resort facility in Canada and one of the most recognizable gaming brands in the country. It is set to launch an online brand to launch following the opening of the newly regulated Ontario market last month.

The long-term agreement further strengthens Kambi’s presence across North America. Kambi is already live in 17 US states, partnered with the likes of BetRivers owner Rush Street Interactive, Unibet owner Kindred Group, LeoVegas, and Penn National Gamin, and already works with MGE in Mohegan’s home state of Connecticut.

It also recently launched in Ontario on the first day that the regulated market went live, and has partnered with other brands hoping to go live in the province, including Torstar-aligned NorthStar Bets and MaximBet.

Kristian Nylén, Kambi’s CEO and co-founder, said in a press release: “The Canadian market, and Ontario in particular, is full of potential for Kambi and our partners so I am pleased to have agreed this partnership with Mohegan and its Fallsview online mobile brand. I look forward to the combination of our industry-leading mobile sportsbook and the prominent Fallsview name as together we bring players in Ontario all the excitement of single and in-game wagering along with the unrivalled bet combinability our sportsbook offers.”

Rich Roberts, President of Mohegan Digital for MGE, added: “It’s an exciting time for the mobile gaming industry as sports betting continues to grow, and we’re thrilled to be entering into another partnership with Kambi Group plc with the launch of PlayFallsview online mobile sportsbook. Once launched, this will mark MGE’s first online mobile gaming product outside of the United States and we’re really looking forward to our partnership with Kambi Group on this new venture.”

Image: Idawriter via Wikimedia Commons

MGM launches bid to acquire LeoVegas

May 2, 2022

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

May 2, 2022

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.

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

April 28, 2022

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.