November 25, 2021

LVS To Make Offer For Playtech?

Is Las Vegas Sands About to join the battle for Playtech? According to sources close to the business it is rumoured that the company that was controlled by Sheldon Adelson until his death at the beginning of this year may make an offer for the online gambling technology supplier.

Indeed in reporting the companies first results since the death of their founder in January CEO Robert Goldstein was quoted that Las Vegas Sands were interested in getting into the sector by saying, “I have very strong thoughts about this, “we just want to keep working toward our goals. It’s a very interesting business. The question is can we bring something to the table that can make a lot of money.”

It was later mentioned that should they venture into the sector they would look at a B2B service provider to acquire possibly so the casino operator can develop their own software. That would allow them to gain a foothold in the ever expanding US sports betting market.

The current valuation of Playtech is at £2.7 billion even if that was to rise towards £3 billion it would not cause any problems for the operator that has casinos in the US, Macau and Singapore.

With Playtech management already accepting an offer from Aristocrat Leisure but now there are more players with former F-1 team owner Eddie Jordan and Keith O’Loughlin, a former senior executive from Scientific Games have along with major investors have asked also for due diligence on Playtech. Under the name JKO Play Limited Jordan and O’Loughlin are seeking institutional investment for a potential offer.

Playtech are certainly still in play and there is still time for Las Vegas Sands to enter the fray, if the rumours are true expect the US based casino giant to make a move before the end of the year.

November 16, 2021

Almost £225,000 in wages and freebies taken from gambling industry by 28 MPs

On 7 July, the Conservative MP for Blackpool South, Scott Benton, took his seat at Wembley to watch England take on Denmark in the semi-final of Euro 2020, courtesy of the Ladbrokes Coral owner, Entain – a freebie worth £3,457.

Less than four hours earlier, Benton had warned parliament that a review of betting laws, widely expected to result in tougher regulation, must not be driven by anti-gambling “ideology”.

He called for casinos to be allowed more slot machines, adding that many people would be “concerned” about the Gambling Commission’s plans for affordability checks on people betting online and in person, a measure intended to prevent ruinous losses.

Days earlier he had enjoyed another day out, at Ascot, courtesy of the Betting & Gaming Council (BGC) trade body. In total, he accepted hospitality worth £7,495 during a gambling-funded summer of sport.

All in all 28s MPs – 19 Conservative and the rest Labour – have taken almost £225,000 in wages and freebies from the gambling industry since August 2020.

During the same debate at which Benton spoke – one of his two speeches favourable to the gambling industry that month – Labour’s John Spellar interceded. He referred to the urgent need to “improve and continue Britain’s attractiveness” as a casino destination.

He had recently been a guest of the Paddy Power owner, Flutter, at England’s match against Germany, and was due to attend the cricket at Lord’s the following month, at a cost of £874.80 to the BGC, whose members include major casino companies.

For the gambling industry, it was a busy month for both hospitality and political fulmination about the future of regulation.

On 13 July, the Conservative MP Mark Jenkinson expressed “grave concerns” about the prospect of the government imposing betting limits, in an article, sponsored by the BGC, for the Conservative Home website. The article appeared six days after he watched England play Denmark, courtesy of Entain, and less than a month after the BGC took him to Ascot, visits worth a combined £4,857.

There is no suggestion that any of the trio broke parliamentary rules. But their actions have raised concerns about the gambling industry’s apparent attempts to curry favour with politicians and the system that allows it.

The gambling sector’s charm offensive comes in the run-up to the publication of a white paper on gambling reform, expected early next year, that could significantly curb the profitability of bookmakers and online casinos.

One peer described the industry’s charm offensive as a “pretty obvious” attempt to influence the outcome of the reforms.

By far the biggest beneficiary of the gambling industry’s largesse over the past year was Philip Davies, the Conservative MP for Shipley. The Guardian revealed last year that he had accepted almost £50,000 to advise the Ladbrokes owner, Entain, on safer gambling and customer service.

Davies has previously said that his work outside parliament is “a matter for me”, although in 2010 he did not extend the same forbearance towards firefighters with second jobs, who were resisting changes to their shift pattern. The firefighters, he said, “ought to start to live in the real world at a time when many people are grateful to hang on to their one job”.

On top of his work for Entain, which employed two of his former political aides in senior roles at the time he took the job, Davies accepted hospitality worth a combined £8,695 from the company, fellow betting firms Flutter and Gamesys, and the Betting & Gaming Council.

In addition to what it paid Davies, Entain spent almost £41,000 on hospitality for 13 MPs over the summer.

The BGC spent half that sum, £20,405, escorting lawmakers to events including three England matches at Euro 2020, horse racing at Ascot, cricket at Lord’s and the Ivor Novello awards.

Of the 13 MPs who enjoyed the trade body’s hospitality, three spoke out in support of the industry within days of being entertained, two of them – Benton and Spellar – in the House of Commons.

During that same debate, Laurence Robertson – a longtime advocate for the gambling industry – warned of the “great danger” of tighter regulation, backing the BGC’s view that it would drive people towards the black market.

As he has pointed out, he correctly declared his interest, a £24,000-a-year role with the BGC, advising on sport and safer gambling. He also took £9,307 worth of tickets and hospitality at Ascot, York and Sandown racecourses, Lord’s and England’s match against Denmark. The gifts came from the BGC, SkyBet, Entain and Coral.

In total, 28 MPs are either paid by the gambling industry or have accepted hospitality from the industry, with a total value of £224,281 since August 2020. All of the hospitality and salaries were declared to the register of members’ interests, in line with parliamentary rules.

Beneficiaries include the Conservative MPs Caroline Dinenage, who is a minister within the Department for Digital, Culture, Media and Sport, which is overseeing the gambling review, and Aaron Bell, who used to work for Bet365.

The BGC is led by Michael Dugher, a former Labour MP.

Lord Foster of Bath, the chair of Peers for Gambling Reform, said it was “pretty obvious why the industry is giving largesse to parliamentarians”, calling the flurry of consultancy roles and hospitality freebies an attempt to “try and influence the outcome to the advantage of gambling companies. With millions of people impacted by problem gambling and more than one gambling-related suicide every day, I suspect [they] will find themselves on the wrong side of public opinion.”

Matt Zarb-Cousin, a former aide to Jeremy Corbyn and director Clean Up Gambling, said: “Far too many MPs have had their snouts in the gambling trough. This is a sector that derives most of its profits from the harm it causes their constituents. The government has an opportunity in its gambling review to demonstrate our democracy is not for sale.”

An Entain spokesperson said: “Any political engagement we conduct is always in line with the registers of members’ interest. As a sports betting and interactive entertainment company, we are proud of the role we play in supporting grassroots and elite sports both in the UK and internationally.”

A BGC spokesperson said: “Any hospitality is consistent with the parliamentary rules and is fully declared and transparent.”

Aaron Bell said: “I have declared all hospitality promptly and transparently in the register of member’s interests, and have always abided by the parliamentary code of conduct.”

November 09, 2021

Playtech in talks with shareholder Gopher on potential takeover; Aristocrat's bid faces competition

Weeks after agreeing to a buyout from Aristocrat Leisure, Playtech is now in talks with Hong Kong-based Gopher Investments over a possible takeover offer. The British online gambling software firm’s shares have seen a 3% increase on Monday.

Gopher is Playtech’s second-biggest shareholder, counting with a nearly 5% stake in the firm through an affiliate TT Bond Partners. A preliminary approach was made on October 21, seeking access to some due diligence information to weigh a possible offer, Playtech confirmed in a statement Monday.

Conversations with Gopher were described as in an early stage, and terms of the potential bid have not been disclosed yet. However, it is believed the takeover offer is worth about £3 billion, according to Sky News, which first reported on the subject. 

A series of undertakings from Playtech shareholders to accept Aristocrat’s offer, worth about £2.1 billion, would lapse should a rival suitor offer a price at least 10% higher than that bid. In consequence, Gopher’s offer would have to be at least 748p-a-share to secure board recommendation.

Gopher, a prominent Playtech shareholder, is allegedly working with bankers at Rothschild in the offer, which would trump Aristocrat’s bid, first announced last month. Sources familiar with the matter have told the previously cited new source that Gopher’s deliberations were not guaranteed to lead to a formal offer, but that the company was looking “seriously” at doing so.

In September, Gopher managed a deal to buy Playtech’s financial trading unit, Finalto, following a months-long battle with the British company and an Israeli consortium led by Barinboim Group. The deal, for an enterprise value of $250 million in cash, is expected to be completed in the first half of 2022.

Regulators must now decide on a deadline by which the Hong Kong-based investment firm must either present a firm intention to bid for all of Playtech or walk away. It still remains unclear how Gopher would structure an offer for the entirety of Playtech, given the Finalto transaction has yet to reach its conclusion.

Aristocrat has acknowledged Gopher’s possible offer for Playtech in a new statement, defending its bid. “Aristocrat's long-term engagement with regulators across key gaming jurisdictions, together with strong financial fundamentals, deep customer relationships and established presence in global gaming markets, positions Aristocrat to complete the transaction as planned in the second quarter of calendar year 2022,” the Australian company said.

Moreover, the gambling machine manufacturer said the completion of its offer would provide “certain value to Playtech shareholders,” while the combined group would also provide “greater opportunities” to Playtech’s employees. Aristocrat says it will “continue to work” to progress the recommended acquisition and urges shareholders to vote in favor of its bid.

November 08, 2021

Dirk Kuyt and Wesley Sneijder 'interrogated' as witnesses in drug case investigation

Former Netherlands international footballers Dirk Kuyt and Wesley Sneijder have been 'interrogated' by Dutch police as witnesses in a drug case investigation, according to reports from their home country.

The pair are reportedly among a number of footballers quizzed in relation to a gambling site, which authorities claim may have ties to an alleged 'godfather' known as Piet S.

Kuyt and Sneijder were both part of the Dutch team which reached the World Cup final in 2010, with the former also playing more than 200 times in the Premier League for Liverpool.

And reports from outlets in the Netherlands make reference to interviews which reportedly took place earlier in 2021, with the ex-players alleged to have spoken to police in a witness capacity.

According to Nos.nl, citing reports from De Telegraaf and AD, the investigation relates to an alleged illegal gambling site which the Public Prosecution Service says was set up by the son of Piet S.

The two footballers reportedly gambled on the site in question, and the reports from the Netherlands mention conversations with authorities in relation to this.

Sneijder spoke to police to give his witness statement in January this year, with Kuyt meeting with authorities the following month.

The gambling site in question, Edobet, was reportedly licensed in Curacao and offered casino games as well as sports betting.

According to De Telegraaf, "Several (former) professional football players" have been interviewed in relation to the case, which comes more than a year after the arrest of Piet S. as what Nos.nl describes as part of "an investigation into international drug trafficking at home and abroad".

"S. has never been convicted of large-scale drug trafficking or liquidations, with which he has also been associated," the publication notes.

Reports into the case cite a hack of messaging service Encrochat, through which conversations involving the alleged betting activity of Kuyt and Sneijder have been made public.

Sneijder denies having played on the gambling site in question, according to reports, but according to AD's report, the player was approached by people "who said he was in debt and that he would guarantee Wout van K," an individual who has been identified by the ex-player as "my father's cousin, seen once".

Sneijder's agent Guido Albers confirmed the investigation was "about gambling" but said "Wesley is not involved".

October 06, 2021

Top NBA Gambling Exec Warns On Going ‘Too Far, Too Fast’ With Sports Betting

There is a curious dichotomy unfolding in gambling markets around the globe, leading one NBA executive to express a desire for caution.

Earlier this month, the NHL’s Washington Capitals became the first US pro team to put a gambling sponsorship on a jersey. But on the other side of the pond, the UK is going the opposite way. The UK government is soon expected to ban betting sponsors on soccer shirts.

UK politician Carolyn Harris told newspapers:

“Banning front-of-shirt ads is of course the right thing to do, but it just scratches the surface. We’re bombarded by gambling adverts and that has to stop. Adverts should be completely banned to protect children and prevent harm.”

To some, the UK experience is a harbinger of things to come in the US: an example of the backlash when sports betting becomes too prevalent.

But are US sports betting stakeholders paying attention? 

That was the question asked last week of Scott Kaufman-Ross, SVP and head of gaming at the NBA. 
 
Specifically, Kaufman-Ross was asked on a SportTechie webinar whether leagues were heeding the lessons from Europe as they built out their sports betting strategies.

Kaufman-Ross responded:

“Whilst there are things that might be legal or fans may want, we have to be careful not to go too, far too fast and risk the overregulation we have seen in other markets.”

“A healthy, legal sports betting industry is what we all want and we have to be prudent.”
 
For the NBA, that means not yet allowing betting sponsorships on jerseys, as the NHL did.

“We’re monitoring all that stuff [in Europe],” Kauffman-Ross added. “We didn’t think it was the right time for us to open up [jersey sponsorship].”

“Some leagues are more permissive and we don’t judge anyone. We didn’t feel it right for the NBA and we’ll see where it goes. We want to crawl before we walk, before we run.”
 
It is a subtle but interesting shift given the NBA was the first league to embrace sports betting way back in 2014. Commissioner Adam Silver famously penned an op-ed for the New York Times arguing sports betting should be taxed and regulated.

Now the NBA might be a little more cautious than its peers, especially as the NFL goes all-in on sports betting with its official partnerships.

Following those agreements, US sportsbooks spent $24 million on NFL TV ads during Week One alone.
 
The growing saturation of sports betting has also prompted warnings from other parts of the industry.

Regulators from New Jersey and Colorado said recently that operators needed to rein in marketing or risk a regulatory crackdown.

They too highlighted Europe as a cautionary tale. The warnings, it seems, are building up.

But is enough of the industry listening?

Jamaica Invites Tenders For Casino Resort

Jamaica has been waiting for a casino resort ever since the legislation to do so was passed in 2010, however the Minister of Finance Dr Nigel Clarke is again pushing the idea and has officially announced that Wednesday 6th October the island will invite interested operators to tender for the exclusive resort which will also allow for a casino.

Should the lucky applicant convince a 10 person panel set up to evaluate any applications that there proposal is worthy of building a 1,000 room resort they will be allowed to apply to the Casino Gaming Commission for a casino resort license.

Any company interested will have to offer to spend upwards of $500 million, the Minister said of the plan, “It is our intention, with the lack of this product in Jamaica, to eventually have a casino gaming resort, and, also, it is our intention to attract hundreds of millions, if not billions, of investments via this means.”

October 04, 2021

Israeli billionaire escapes attempted assassination in Cyprus

An Israeli billionaire was saved at the last minute from an assassination plot in Cyprus several days ago, after being warned about the attempt, Channel 12 news reported on Sunday. The man was later named as Teddy Sagi, a well-known Israeli-Cypriot businessman who founded the gambling software company Playtech and owns Camden Market in London.

According to the report, Sagi, 49, was the target of an assassination plot in Cyprus due to debts he owes to Russian business partners. A hired killer of Azerbaijani origin was reportedly waiting for Sagi there. According to Walla News, the assassin holds a Russian passport.

But Sagi fled the country at the last minute, after receiving a warning of the plot from authorities, reported Channel 12. According to Ynet, the assassin was arrested in Cyprus days later, after he crossed the Agios Dhometios checkpoint in Nicosia from the Turkish-ruled northern part of the country.

The attempted attack was originally thought to be an Iranian plot to target Israelis, but authorities now believe it was specifically against Sagi, and Iran may not be involved at all. According to Forbes, Sagi is worth $5.6 billion, and is the fourth richest person in Israel.

Cyprus is home to about 3,500 Jews. It is a particularly popular vacation destination for Israelis, at less than an hour’s flight from Tel Aviv.

September 30, 2021

Disney’s Aggressive Move Into Sports Betting

The famed children’s brand Walt Disney is getting into the sports betting business according to chief executive Bob Chapek. In a conference call with investors this week the boss of Disney said the company plans to get “aggressive” in regard to expanding the business in sports betting.

Disney is looking at working with a recognised sports betting company in a licensing agreement possibly using its ESPN broadcasting arm, indeed ESPN and ABC broadcast sports betting during their live broadcasts already for other companies so why not get involved directly.

With Disney holding the rights to broadcast NFL, MLB, NBA, NHL, Wimbledon, PGA Tour, and LaLiga with its ESPN and ABC channels it would make a whole lot of sense to maximise their business with sports betting.

Chapek said in the conference call to investors on the subject: “There’s a long way between embedded into the ESPN business model and licensing out,” he said. “Let’s just say that our fans are really interested in sports betting. Let’s say that our partners — with the leagues — are interested in sports betting. So we’re interested in sports betting.”

For a long time Disney fought against gambling indeed it still does in states like Florida but it seems you can’t beat sports betting and so if you cannot beat them join them. With its ready to go TV sports coverage and some 174 million global subscribers of which ESPN has nearly 15 million the only question is who will be the lucky partner.

It’s rumoured that Disney would look at a multiyear deal ranging in the return of $3 billion from any partner they take on, only recently Sports Illustrated formed a partnership with 888 Holdings US arm that sees the gambling firm use the branding of Sports Illustrated to promote sports betting. That deal saw Authentic Branding the parent company of Sports Illustrated take a 4.9% stake in the US gambling Company.

Playtech signs multi-state agreement in U.S. with Unibet

Playtech, the gambling technology company, today announces the signing of a multi-state agreement with Unibet Interactive, a part of Kindred Group. Under the agreement, Playtech will provide its RNG Casino software to Unibet in New Jersey, with further states to follow in the coming months.

The partnership with Unibet Interactive is the next step in Playtech’s strategic expansion in the U.S. market. Unibet has established a market-leading product offering to its customers in New Jersey, which will be further bolstered by a range of Playtech’s best-performing RNG Casino software.

Shimon Akad, Playtech Chief Operating Officer, said: “We are delighted to announce this exciting step in Playtech’s U.S. growth. Unibet deliver a fantastic entertainment experience to their U.S. customers, and we are proud to partner with them to deliver Playtech’s Casino software as part of their market leading offering – starting in New Jersey. Playtech continues to partner with the leading operators in New Jersey to bring its industry leading Casino software to the U.S. market and we look forward to continuing to expand into new States’.

Manuel Stan, SVP Kindred Group US, commented: “To add Playtech Casino software to our portfolio in New Jersey is very exciting. Partnering with Playtech enables us to offer our online casino customers a selection of some of the best quality content, and we look forward to further collaboration with Playtech across more U.S. states in the future.”

September 23, 2021

Betsson’s Chairman to Leave Amid Wave of Distrust

The Swedish iGaming giant Betsson Group has seen its chairman, Patrick Svensk, step down from his position and leave the company following a wave of distrust by Betsson shareholders. The reason behind Svensk’s decision is the critique of his handling of the recent departure of Pontus Lindwall, the company’s former CEO.

Lindwall’s leave from the company was announced a few days ago, with him feeling fulfilled with his achievements during his time as chief executive officer. Unlike Svensk, Lindwall will not immediately leave the company and will remain as a leader until a successor has been found.

Lindwall had first served as a CEO between 1998 and 2011 and was later re-elected in 2017. Lindwall’s mission during his second term as a chief executive was to operate the “Back on Track” recovery program and guide Betsson to success. In 2021 Betsson marked record-breaking progress, especially in the second quarter of the year, leading the company to announce that Lindwall has fulfilled his task.

“That task has now been completed,” Svensk said in the announcement of Lindwall’s leave, “We are grateful for all the good work Pontus Lindwall has done during these years and the strong foundation he has created for the future.”

Provided the above facts, Lindwall’s removal from the company sparked distrust in Svensk among many shareholders and led to the current events.

Because of the distrust, Svensk has resigned with immediate effect. He believes this is a very unfortunate turn of events and addressed the shareholders, apologizing for having disappointed them. He explained his past decisions as something he thought was the best for the company.

“I am proud of what we have achieved during these years and wish everyone at Betsson great luck in the future,” Svensk concluded.

Svensk became a chairman in 2017 after being a board of directors member for more than a decade beforehand. He will now be replaced as chairman by Johan Lundberg.

Lundberg is the founder of NFT Ventures as well as a board member of Ölands Bank, Loomis and Svolder. He became a Betsson board member in 2018. Lundberg spoke on the matter of Svensk’s resignation and “extended a warm thank you” because of the latter’s valuable contributions in the last 17 years.

As for the future of the company, Lundberg is looking forward to working with the rest of the board and recruiting Betsson’s next leader. The directors will seek someone who has the experience and talent to continue pushing the company forward.

August 02, 2021

NHL investigating after wife says Evander Kane bet on his own games

The NHL said it is launching an investigation into San Jose Sharks player Evander Kane after his wife claimed that he bet on his own games.

Kane’s wife Anna alleged in a Saturday night social media post that her husband gambled on his own hockey games, writing on Instagram, “@nhl Can someone ask [NHL Commissioner] Gary Bettman how they can let a player gamble on his own games? Bet and win with bookies on his own games?”

She also wrote in a social media post, “How does the NHL let a compulsive gambling addict still play when he’s obviously throwing games to win money? Hmm maybe someone needs to address this,” according to The Associated Press.

In a separate Instagram post, Anna Kane, who is reportedly pregnant with the couple's second child, said her husband left for a vacation in Europe when “our house is being taken by the bank.” She also accused him of forcing her to sell her wedding ring while noting that she was unable to purchase formula for their 1-year-old daughter.

The NHL responded on Saturday night, writing in a tweet that it was “made aware” of the allegations and that it plans to “conduct a full investigation.”

“The integrity of our game is paramount and the League takes these allegations very seriously,” the league added.

Evander Kane reacted to the allegations on Sunday morning, posting two statements to social media that rejected the claims made by his wife.

“Unfortunately I would like to address the completely FALSE accusations that my estranged wife and soon to be ex wife has made against me,” Evander Kane wrote.

“I have NEVER gambled/bet on Hockey, NEVER gambled/bet on any of my games and NEVER thrown a hockey game,” he added.

Kane said he looks forward to “cooperating fully with the league’s investigation, having my name cleared and looking forward to this upcoming season.”

The Sharks player also addressed the allegations made against him regarding his daughter in a separate statement, accusing his wife of restricting his access.

“She has refused me to see her and has unfortunately tried to use my daughter as leverage. I will continue to always take care of my family that goes without question,” he wrote.

“I would encourage people to realize that someone who goes to this length to try and jeopardize someone's career with lies is mentally unwell. I hope this is the last time I will be publicly addressing any further misrepresentations of me as a father,” he added.

San Jose Sharks Media Relations Manager Kyle Stuetzel said the team supports a “full and transparent investigation” into the “serious allegations” made against Kane.


“The San Jose Sharks have been in contact today with the National Hockey League about the serious allegations made against Evander Kane. We support a full and transparent investigation into the situation to maintain the integrity of the game and consistency with our team values,” Stuetzel told The Hill in a statement.

“The Sharks will not be commenting further at this time,” he added.

In 2019, Kane was sued by a casino in Las Vegas that argued that the player did not pay a $500,000 gambling debt that was incurred during a playoff series against the Golden Knights, according to the AP.

Kane is three seasons into his seven-year, $49 million contract with the Sharks, the news service noted.

June 17, 2021

DraftKings Slumps as Hindenburg Research Alleges SBTech Ties to Illegal Gambling, Organized Crime

Shares of DraftKings are sliding Tuesday after noted short-selling activist Hindenburg Research published a lengthy report. The report alleges the gaming company’s SBTech unit operates in jurisdictions where sports betting is illegal, and may have connections to money laundering and organized crime.

Founded by Shalom Meckenzie, one of the richest men in Israel, SBTech was part of a 2020 three-way reverse merger involving DraftKings and special purpose acquisition company (SPAC) Diamond Eagle Acquisition Corp. That transaction paved the way for DraftKings to become a publicly traded entity.

At that time, SBTech, which is based in Bulgaria, contributed a quarter of the combined company’s revenue and “was the only positive contributor to operating income, providing both financial stability and technology to the deal,” according to Hindenburg. However, the research firm, which took a short position in the gaming stock, adds there’s a dark side to those benefits.

“Unbeknownst to investors, DraftKings’ merger with SBTech also brings exposure to extensive dealings in black-market gaming, money laundering, and organized crime,” said the research firm. “We estimate that roughly 50 percent of SBTech’s revenue continues to come from markets where gambling is banned, based on an analysis of DraftKings’ SEC filings, conversations with former employees, and supporting documents.”

Sports wagering industry observers and some professional bettors have pointed to a slow rollout of the SBTech platform in states in which DraftKings offers mobile sports betting. The Boston-based company primarily uses software provided by Sweden’s Kambi for back-end infrastructure. But that relationship is supposed to end later this year.

Prior to the aforementioned SPAC transaction, there were rumors that DraftKings was looking to acquire SBTech as part of its quest to become vertically integrated.

Leading up to the blank-check transaction, SBTech supposedly made efforts to distance itself from its black market business. Citing former employees, Hindenburg says SBTech executive Tom Light — described by one former staffer as Meckenzie’s “right-hand man” — left the company to head up an entity known as BTi.

That business, which would later be called CoreTech, acted as a front for SBTech to continue doing business in Asian markets where sports betting isn’t permitted.

“Before SBTech joined with DraftKings, they split the grey market/unregulated…they [Bti] are a separate company marketing their white label solution to the Middle East, South America, mostly China and Malaysia,” a former employee said in the Hindenburg report. “Their technology provider is SBTech. Because SBTech is now on NASDAQ, they don’t want Asia or the grey market to give it a bad influence. They want to be clean.”

A second ex-staffer told the research firm that “well over 90 percent” of CoreTech’s revenue is derived from black or gray markets. DraftKings regulatory documents indicate an unidentified customer focusing on Asia generated 46 percent of SBTech’s 2019 revenue, with that percentage climbing to 52 percent last year.

Adding to the drama, the CEO of CoreTech is Amir Vankin. He previously led SpotOption, an Israeli binary option that was raided by the FBI in 2017 and later charged by the Securities and Exchange Commission (SEC) with duping US investors out of $100 million.

“As alleged, investors were not told that the defendants’ white label partners were the counter-parties on all investor trades, and thus profited when the investors lost money,” according to an April statement issued by the SEC. “To ensure sufficient investor losses and make the scheme profitable, Spot Option allegedly, among other tactics, instructed its partners to permit investors to withdraw only a portion of the monies the investors deposited, devised a manipulative payout structure for binary options trades, and designed its trading platform to increase the probability that investors’ trades would expire worthless.”

In the Asia-Pacific region, there are some countries where sports wagering is regulated. For example, Australia is one of the largest sports betting markets in the world. In Macau, the world’s largest casino hub, Macau Slot Co Ltd. has an instant lottery business and is allowed to accept wagers on basketball and soccer, while Japan permits betting on cycling, horse racing, and motorboat and motorcycle racing.

Hindenburg claims BTi/CoreTech operates on the fringes, including running a Mandarin and Thai language sports betting website out of Thailand that was recently raided by authorities. Both China and Thailand forbid sports wagering. The research firm adds SBTech has ties to Vietnamese betting operations allegedly controlled by a triad kingpin — Paul Phua.

“In addition to apparent black-market bookmaking, 12Bet is, or was, owned by Paul Phua, according to an investigation commissioned by the Swiss IHAG Bank,” said the research firm. “The US Department of Justice has alleged that Phua is a senior member of the 14K Triads, one of the most dangerous criminal syndicates in the world, known for heroin smuggling and contract murder, among other activities.”

Hindenburg also alleges that SBTech, in its quest to land a contract with the Oregon lottery in 2019, obfuscated ties to 10bet China — an illegal gambling operation in that country. A former SBTech employee told Hindenburg that operation is “massive,” and that Meckenzie continues to profit from it.

June 03, 2021

Matthew Benham: Brentford FC & Matchbook Owner, A.K.A. Moneyball in Football

Although Matthew Benham states that he dislikes the comparison between himself and the movie ‘Moneyball’, let’s be honest, he’s about as close as it gets!

Benham is the owner of current English Premier League side, Brentford FC, and Danish club FC Midtjylland.

It is during his time at both these clubs that the Moneyball man has established himself as a unique character in the football world.

Benham’s footballing beliefs revolve around KPI’s, statistics and algorithmic philosophy.

For example, instead of looking at how many goals a striker scores, he bases his judgements on the number and quality of the chances created by the striker, and how the team perform collectively within the context of the individual’s performance.

His mathematical approach to football was most evident when he sacked former Brentford manager Mark Warburton, along with his assistant manager and sporting director after being promoted to the Championship in 2015.

He believed that competition tables are hugely inaccurate due to the amount of randomness in a competition.

When Borussia Dortmund famously fell into the Bundesliga relegation zone halfway through the 2014/15 season, Benham still had them as the second best team in the league statistically, they were just terribly unlucky.

‘Moneyball’ had been supporting Brentford since 11 years of age, and in 2012 he took over Brentford after bailing them out of a £500k financial hole.

Since then he has invested almost £100m into the club, creating everything from academies, and facilities, to a new stadium which is currently being built.

Brentford finished mid-table in the 2018/19 Championship season, but Benham was always aware that all the money spent on the club will pay dividends in the future. Which it did! Brentford lost the playoff final to Fulham in 2019/20 but avenged that loss the next season, earning promotion to the Premier League after a 2-0 win over Swansea in the playoff final.

Over time, the supporters have fallen in love with Benham after many years of success, you’ll often hear a few songs of praise for Benham from the stands.

Benham’s journey to football club owner was not the traditional one, after earning a Bachelor of Arts degree in Physics from the world-renowned Oxford University.

Funny enough, he started his working life in the Finance industry, eventually becoming the Vice President of the Bank of America in the late 90’s.

But by the 21st century, and yes you guessed it, he moved in the betting world!

Ever heard of Brighton FC Owner and professional sports bettor Tony Bloom? Well, Benham worked for him in 2001!

After his time in the world of Finance, Benham started working as trader for Bloom’s Premier Bet, which is a sports betting bookmaker.

Years down the line and the two had a falling out, leading to Benham’s departure and the start of something more prosperous - SmartOdds.

SmartOdds is the same concept as Tony Bloom’s Starlizard, a statistically-based model providing betting advice for customers and professional bettors.

Although they don’t bring in the same numbers as Starlizard, it was reported in 2017 that Smart Odds’ revenue for the financial year hit £12m from clients in the UK and overseas.

Not only was he now the owner of SmartOdds, but he was also a professional bettor.

Of course his strategies as a bettor are a secret, but his triumphs in the industry are through heavy use of statistical data and modelling. No shock there!

In 2011, he also became the owner of the betting exchange website Matchbook.

Matchbook is one of the best betting exchange websites in the world, giving Benham further industry knowledge and an understanding of the ‘other side of the fence’.

Benham’s overall career earnings form sports betting are completely unknown, but in terms of the betting industry, he’s had just as big of an impact as anyone!

May 19, 2021

Florida Approves Online Sports Betting

As Tuesday drew to a close the Florida Senate voted to pass the new deal with the state and the Seminole Tribe that will see the tribe pay $2.5 billion to state coffers over 5 years.

However the new gaming expansion deal (known as the compact) will see the tribe allowed to build three new casinos and best of all in the deal be the sole exclusive operator of sports betting in Florida.

Indeed only one Senator voted against the new compact and now the House is expected to rubber stamp the deal which is the biggest ever gambling expansion in Florida which is the third largest state by population in the US and the largest state to join the online sports betting industry in the US.

The House is expected to sign off on the deal Wednesday 19th May which has been agreed by governor Ron DeSantis and Seminole Tribe of Florida Chairman Marcellus Osceola Jr.

Senate President Wilton Simpson who is a supporter of the compact said to reporters: “A compact is very, very tough,” he went on to say, “state and tribal leaders have worked on reaching a deal for several years. “It is extremely difficult, because there are so many different competing interests. And if there are 50 competing interests, there are at least then probably a million ways to put those pieces of the puzzle together. So we’re very pleased that we were able to get it passed today.”

The only part of the original deal that has been removed is the possibility for the tribe to discuss with state leaders within five years to expand the online offering to casino games, this caused a major sticking point and so it was agreed by all parties this will now not happen.

Although the deal is approved and expected to be rubber stamped by the House it is expected their will be multiple legal challenges to the new compact.

April 08, 2021

Fox Corporation To Sue Flutter Entertainment

Rupert Murdoch’s Fox Corporation have filed a lawsuit again Betfair Paddy Power owner Flutter regarding a dispute over the share value of US sport betting firm FanDuel.

In a statement by the media corporation it said that it has an option to acquire 18.5% of the shares in FanDuel and at the same price as Flutter Entertainment in December 2019 when both FanDuel and Flutter merged.

It is claimed that Fox is allowed to acquire the shares at the same value as Flutter did as Fox assisted with the merger of the UK and US companies which was valued at $11.2 billion.

Now with Flutter considering listing part of their business on the US stock Exchange Fox wants the shares at the same price not at the offered special price Flutter gave them in July last year.

Flutter is the largest gambling company in the World and the company sees the US in helping it grown bigger, but the possibility of alienating Fox could be dangerous and create what was an assistant into a competitor.

New York Includes Sports Betting & New Casinos In Budget

New York lawmakers working on the 2022 budget for the state have included in it revenues from sports gambling and also three new casinos to be built in downtown New York.

It took all parties late into the night to come to agreement on the fiscal policy for the state that has been ravaged by COVID-19 last year and is still recovering from the pandemic now.

However Governor Andrew Cuomo said on the deal: “we worked with the leaders of the Senate and Assembly to finalize the details of the fiscal year 2022 budget yesterday. It took a lot of effort on everyone’s part, and it was known that finding common ground would not be an easy task.”

In the budget which is not 100% completed or clear, but revenues from what it seems is to be two sports betting operators allowed would have to stump up 50% of revenues to the state coffers. That seems incredibly high but the rewards from working in New York sports betting could still attract major companies to apply for a license.

Also in the budget is the provision to allow three new casino licenses for the state in downtown New York which it believes can generate $500 million a year from each licensed operator.

March 12, 2021

Football Index Falls Into Administration

BetIndex Limited the operators of Football Index have entered administration following the previous weekend uproar by investors on the restructuring of players values to try and save the company.

The entire platform is now suspended and there is no indication if it will ever re-emerge after administrators Begbies Traynor took over the business.

In an announcement by the company on Thursday evening Football Index said, “after discussions with ‘external’ legal and financial advisors, the decision was made to help find an ‘agreeable way forward.”

The company went on to say, “Until such time as the administrators are in office, the platform will remain suspended and no trading or payment transactions, such as deposits and withdrawals, will be possible,”

‘Once in office, the administrators will be in contact with customers, creditors, and other stakeholders. This interim step of suspending the platform is merely to ensure that everyone’s rights are preserved in relation to funds held by BetIndex Limited.’

The platform that is licensed by the UK Gambling Commission and had extensive advertising budget are also sponsors of Queens Park Rangers Football Club, there is no update on whether the football club will continue to advertise them at present.

Over last weekend Football Index completely changed their terms and conditions resulting in players on the platform value dive to be worth just pennies when before were worth several pounds.

At the time of the terms change the company said it was to, “protect the long-term sustainability of the platform.”

It has been reported that many of the investors have lost thousands in the fall of Football Index when the platform restructured the value of its football traded players.

Caesars set to complete William Hill acquisition by 1 April

Caesars expects to complete its proposed acquisition of William Hill by 1 April after the bookmaker confirmed all necessary regulatory approvals should be obtained in the coming weeks.

In September 2020, Caesars lodged a bid worth £2.9bn (€3.39bn/$4.03bn) to acquire the entire issued and to-be issued share capital of William Hill that it does not already own.

The agreement, which was approved by William Hill shareholders in November, will see Caesars purchase William Hill’s 1.08bn shares for £2.72 each. Caesars said it plans to retain William Hill’s US betting arm, with the rest of the business set to be sold.

Caesars had previously said it had hoped to complete the acquisition during the second quarter of 2021, and an update published today (10 March) by William Hill suggests this timetable is on track.

William Hill said Caesars expects any remaining approvals to be obtained from the relevant US gaming authorities and other gambling regulators on or about 23 March.

In anticipation, Caesars and William Hill have scheduled a Scheme Court Hearing, at which the court will be asked to sanction the acquisition. The hearing will take place on 30 March.

Should the court approve the deal, and Caesars and William Hill satisfy all other required conditions, then the acquisition is expected to complete on 1 April. William Hill’s shares would then be cancelled on 6 April, in line with the terms of the deal.

Apollo Global had also put forward an offer to acquire William Hill, but the bookmaker’s board unanimously agreed to approve the Caesars deal in September.

The acquisition follows Caesars’ acquisition by Eldorado Resorts in a $17.3bn reverse-merger deal, putting 55 casinos under the operator’s control.