‘Stop promoting them’: victims call for football to end tragic link with gambling

Kimberly Wadsworth was 32 when she took her own life in 2018. The passionate Leeds fan who worked in marketing was a gambling addict. Having begun on the fixed-odds betting terminals found in any high-street bookmaker she had graduated to online casinos.

There she was plied with “free” bets and gained VIP status from the companies she gambled with. They incentivised her to keep playing even when her losses were heavy. Hers is a not unfamiliar story – Public Health England estimates there are 409 gambling-related suicides each year in England – but she is a reminder that gambling addiction is not an exclusively male affliction.

On Friday and Saturday, Kimberly’s mother, Kay, will join recovering gambling addicts and other families who have lost loved ones to gambling-related suicide in walking to five Yorkshire football grounds, starting with an early appointment at Sheffield Wednesday’s Hillsborough. From there the group of more than 30 will visit Sheffield United’s Bramall Lane, Rotherham’s New York Stadium and Barnsley’s Oakwell.

On Saturday, the group take the 19 miles from Barnsley to Leeds to complete 41 miles over two days. They have been allowed by club officials to take pictures inside Elland Road. “I am proud to walk in Kimberly’s memory with people who have suffered the harm and devastation that gambling addiction brings,” said Kay. “These harmful gambling products are designed to hook people in, regardless of their background, so we are calling on football to stop promoting them to millions of young fans.”

The event is the latest organised by the Big Step, a campaign to end gambling advertising and sponsorship in football, led by people harmed by gambling. Previous events include July’s 70-person walk from Manchester to Liverpool in memory of Ryan Myers, a 27-year-old Liverpool-supporting carpenter. In February, a three-day hike took in Scottish stadiums on the route from Edinburgh to Glasgow in remembrance of Lewis Keogh, a 34-year-old Sheffield Wednesday fan.

This weekend’s walk’s aim is highlighting, in the words of James Grimes, the organiser and Big Step founder, that “this is not just a male issue. Although football was a part of Kimberly’s addiction so were other parts of gambling that you wouldn’t necessarily associate with a young, male football fan.”

Football club shirts, websites, social media, pitchside banners and in particular TV advertising continue to be awash with gambling, despite lobbying that aims to protect young eyes from being enticed. Grimes is a recovering addict whose 12-year journey from football betting as a 16-year-old Tottenham fan took in about 50 gambling companies across myriad betting products including online casinos to the point of being “basically suicidal” after a heavy losing run on a fixed-odds betting terminal.

“Spurs had a casino on the front of their shirts at that time: Mansion. That was a company I went on to use and it quickly consumed all of my life. Football was a constant in it. Whenever I saw new companies pop up on shirts or the side of the pitch, I would use those sites. It sucked everything away from me. I turned from a happy, normal boy into a hopeless, helpless wreck of a man.

“The thing I try to emphasise is that it was only gambling that did that. I had a great upbringing, there was no trauma, I never had an addiction to anything else.”

Grimes believes he fell victim to the liberalised 2005 Gambling Act that opened up the flood of betting advertising. From there, the 18-25 market, especially vulnerable, was exposed to a cornucopia of gambling products in which football bets became a gateway drug towards becoming the VIP clients companies take heavy profit from.

Could things be changing? Of the five Yorkshire clubs visited by the Big Step this weekend, only one, Leeds, has a betting shirt sponsor, the Manx-based SBOTOP. Barnsley began the season with a rapidly curtailed cryptocurrency deal, a reminder of clubs’ eternal attraction to easy money. When the Big Step campaign began in 2019, 28 of 44 Premier League and Championship clubs had betting shirt sponsors, a number now reduced to 14.

Despite heavy lobbying and growing resistance among fans, betting advertising pervades on TV, radio and the web. A government white paper on gambling reform was postponed for a fourth time in July. The presence in government of the anti-gambling advocate Chris Philp, chief secretary to the Treasury, and the influence of Iain Duncan Smith, similarly minded, in Liz Truss’s leadership campaign are yet to be brought to bear. For now, football clubs continue to act as advertising boards for an industry held responsible for the loss of Kimberly and many others.

Sisal wins Tunisia full-service gambling for Flutter

Flutter Entertainment’s new Sisal Italia unit has secured exclusive management of gaming in Tunisia, awarded by national sports betting authority, Promosport.

Sisal will develop and manage a ‘comprehensive product portfolio’ in Tunisia, including the provision of sports betting, online games, instant lotteries and number games (lottery draws).  

Promosport’s licence will cover an initial period of 10 years, and will allow management of all betting and gaming products across both retail points of sale and online channels throughout the country.

“Winning the tender in Tunisia is a significant achievement for Sisal,” remarked Marco Caccavale, Managing Director, Sisal International.

“Not only does it showcase our lottery expertise and  leadership at a local and international level, it demonstrates execution against our strategic ambition to enter into regions which have considerable growth opportunities and development prospects in the future.”

Occurring just a few months after the Italian firm’s acquisition by Flutter Entertainment, the Tunisian tender – lauded as an ‘important milestone’ – broadens the reach of the FTSE100 gambling group’s operations in Europe and North Africa. 

As well as strengthening Flutter’s standing, the development marks another step in Sisal’s ‘internationalisation strategy’, building on pre-Flutter market entries into other Mediterranean markets.

This has included a lottery licence in Morocco secured in January 2019, an online licence in Spain gained in July 2019, and another lottery management licence awarded in Turkey in August 2020. 

Flutter’s acquisition of Sisal back in August for €1.9 bn (£1.6/$2.2bn) substantially bolstered the company’s European presence, taking over the 39,000 strong Sisal Matchpoint Italian retail network and SuperEnalotto lottery business.

Additionally, the takeover further strengthened the company’s status in the aforementioned Medietteriaan markets in both Europe and North Africa, a region in which its foothold has now been further strengthened via the Tunisia tender.

In August, Flutter finalised the completion of its corporate integration of Sisal’s business units, which resulted in a further reorganisation of its group’s UK and European structure to account for the brands of Paddy Power, Betfair, Sky Bet, Tombola, PokerStars, Sisal Matchpoint and Adjarabet EE. 

New Measures by Swedish Government to Ensure a Safe Gambling Market

The Swedish government has submitted a report to Sweden’s Law Council (Lagrådet) with proposals, whose objective is to exclude illegal players from the Swedish gambling market and counteract the manipulation of results in sports or the so-called match-fixing. The new measures should be introduced in Swedish law before 1st July 2023.

 

On 17th May 2022, the Swedish government presented a proposal with a number of new measures to the Swedish parliament focusing on ensuring strong consumer protections and a gambling market that is sustainable in the long term. Sweden’s Minister of Social Security Ardalan Shekarabi has embraced the proposal and commented: “We are now taking another step to ensure a healthy and safe gaming market.”

 

Part of the included measures’ goal is to ban unlicensed gambling from the Swedish gambling market. It is suggested that the Swedish Gambling Act of 2018 should provide an option for the government to decree regulations on payment service providers’ obligation to provide information used in payment intermediation for unlicensed gambling and that the current provisions on payment blocking shall be abolished. An opportunity is also proposed for the Swedish Gambling Authority to purchase gaming services online under a hidden identity or a so-called test purchase.

This means that the sluggish mechanism to block payments will be discarded and it will be easier for the Swedish Gambling Authority to execute payment blocks. Furthermore, under the new measures, the Swedish Gambling Authority will be able to investigate payment service providers in Sweden that are not abiding by the Payment Services Act when they are processing payments in connection with gambling.

 

The other focus of the proposed measures is on preventing match-fixing. Increased opportunities are being put forward so that licensees and sports federations can process personal data in order to uncover match-fixing. It is also suggested that licensees should be obliged to provide, at the request of the Police, all necessary information when the investigation is underway into crimes in connection with gambling games.

The Swedish Gambling Authority is responsible for the supervision of all gambling and lottery activities in Sweden and ensures the safety, reliability, and lawfulness of the gambling market in the country.  The Swedish Gambling Authority reports to Sweden’s Ministry of Finance, while the Swedish government is responsible for appointing its board.

Premier League: Gambling sponsor shirt ban included in draft government white paper

Premier League clubs could face a ban on having gambling sponsors on their shirts after the proposal was included in a draft white paper, sources have told BBC Sport.

Half of the Premier League's 20 teams have betting firms on their shirts, with the government set to update gambling laws next month.

Campaigners have welcomed the idea, but believe a ban would be "incoherent" if not also applicable to teams in the English Football League and for other adverts.

The move would follow a recommendation by a House of Lords select committee in 2020, which said Premier League clubs should face a shirt sponsorship ban, but Championship clubs should be given time to phase out their partnerships.

A Department for Digital, Culture, Media and Sport (DCMS) spokesperson told BBC Sport: "We are undertaking the most comprehensive review of gambling laws in 15 years to make sure they are fit for the digital age.

"We will publish a white paper which sets out our vision for the sector in the coming weeks."

Delays to the government white paper being published mean clubs might already be negotiating contracts for next season onwards.

That could mean any ban is likely to be applied for the 2023-24 season at the earliest, but there have also been discussions about whether Premier League clubs could offer to remove gambling sponsorship from shirts voluntarily.

The Premier League has previously said that "a self-regulatory approach would provide a practical and flexible alternative to legislation or outright prohibition."

The EFL, which is sponsored by Sky Bet, says a gambling sponsorship ban would cost clubs £40m a year.

James Grimes of campaign group, The Big Step, told BBC Sport: "This is welcome, but to remove gambling from shirts while allowing pitch-side advertising, league sponsorship and club partnerships to continue would be massively incoherent.

"Every young fan should be able to watch their club - in the ground and on TV - without being bombarded by ads for gambling, which we know harms millions, and takes hundreds of lives every year.

"If the government recognises gambling can be harmful, as this step suggests, then it must end all gambling advertising and sponsorship in football at all levels, not just on shirts."

A recent YouGov survey said 1.4m people in Britain are being harmed by gambling with a further 1.5m at risk.

But the Premier League and EFL believe there is no evidence to show a causal link between gambling sponsorship and problem gambling.

The Betting and Gaming Council spokesperson says that all sponsorships "must comply with strict guidelines and safer gambling messaging is regularly and prominently displayed".

It has also said it "strongly supports the gambling review as a further opportunity to raise standards".

888 Shareholders Greenlight William Hill Acquisition

Shareholders at 888 Holdings have overwhelmingly voted in favour of the company’s intentions to acquire William Hill’s non-US portfolio. Caesar’s Entertainment, who currently own William Hill’s full suite of assets, have been anxious to offload it’s UK and European business since their colossal £2.9bn takeover of the operator back in 2020.

888 have announced that the deal should reach completion by the end of June, which should align with the timing of their permission to trade as a premium listing on the London Stock Exchange. This approval is currently pending, with the FCA (Financial Conduct Authority) expected to declare their decision imminently.

The organization’s non-executive Chairman, Lord Mendelsohn, welcomed the news, suggesting that the merger represented a major step forward for the gambling giant. He said, ‘’we look forward to completing this transformational acquisition at the end of June, creating a global online betting and gaming leader through the combination of two highly complementary businesses and two of the industry’s leading brands’’.

The Gibraltar-based operator is certainly optimistic about its future success. It’s recently undertaken a rapid expansion plan, targeting the UK as a key market in its business roadmap. Furthermore, the firm projected that if the William Hill acquisition had been secured before the commencement of 2021, last year’s gross gaming revenue figure would have eclipsed $2bn, with an EBITDA of $437m.

This has been a protracted deal, with Caesar’s initially accepting 888’s proposal a full eight months ago. Key changes were made on the detail of the deal last month in respect of new regulatory guidance; this resulted in all parties agreeing a £250m reduction in the sale price.

Should 888 Holdings get this one across the line, which is looking increasingly likely, they will assume control of all William Hill’s UK and European online and retail interests.

DAZN Group claims new frontier for casual betting landscape

Through this strategic partnership and others, DAZN says it will become the first truly immersive sports entertainment ecosystem in which fans can watch live and non-live content, consume news and highlights, socialise and bet.

Under the agreement, which DAZN believes will signal the future of the casual betting landscape, a new group of companies has been established to operate a betting service under the DAZN BET brand headquartered in Gibraltar. To be developed over the next few years, it will see the development of what is claimed as the world’s first service combining over-the-top (OTT) live sports viewing and betting, creating a more engaging and interactive experience for fans.

DAZN BET will use the DAZN customer base and brand under a licensing agreement with DAZN Group and Pragmatic Group will supply the underlying platform and content and be responsible for the ongoing product development. DAZN says it chose Pragmatic Group, a leading platform technology and content provider for the betting and gaming industry, as its partner due to its “innovative and entrepreneurial spirit.”

The service is expected to soft launch a beta product to coincide with the start of the new football season.

Commenting on the deal, Shay Segev, CEO of DAZN Group, said: “The convergence of sports media and betting is the future. This historic partnership brings together the leading sports media company and a technology partner who is committed to developing innovative experiences for fans. It underscores DAZN’s commitment to revitalise the sports viewing experience by offering a broader spectrum of digital entertainment for fans.”

Ashley Lang, CEO of Pragmatic Solutions, added, “It’s an honour for us to partner with DAZN. We know that fans want more integrated, immersive, and interactive experiences, and through our exclusive partnership with DAZN, we can deliver this.”

Scotland May Ban Greyhound Racing to Protect the Animals

Campaigners in Scotland are renewing calls to ban greyhound racing in the country, citing the detrimental impact of the races on animal health and the lack of proper control, Sky News reported.

Doping of Animals and Lack of Regulation

Activists from Scotland Against Greyhound Exploitation (SAGE) referred to the Scottish Parliament’s Rural Affairs, Islands and Natural Environment Committee to issue a complete ban on greyhound racing due to the lack of regulation to protect the animals from injuries and doping.

According to them, drug testing is conducted at the country’s regulated track Shawfield Stadium in Rutherglen near Glasgow but in less than 2% of the races.

Tests at the racetrack in the period from 2018 to 2019 revealed worrying results as 13 of the dogs were found positive for doping, with five of them with Class A drug cocaine but doping was often not revealed by the Greyhound Board of Great Britain (GBGB) for several months and was going unreported to police and the Scottish Society for Prevention of Cruelty to Animals (SSPCA), signaling non-functioning regulation.

According to GBGB’s statistics, there were more than 3,000 deaths and an estimated 18,345 dogs injured from racing in the UK between 2017 and 2020 but as there was no regulation at Scotland’s other greyhound racetrack, Thornton in Kirkcaldy, Fife, the real death toll of dogs was higher. The lack of a vet at the racetrack also means if a dog suffers a catastrophic injury, it cannot be euthanized immediately.

The petition to put an end for good to greyhound racing in Scotland received more than 130,000 signatures and was backed by Scottish Greens MSP Mark Ruskell who openly stated the greyhound racing industry was “beyond reform.”

Ruskell further claimed that the duty placed on animal owners under The Animal Welfare Act 2006 to protect their animals from suffering did not extend far enough to prevent harm caused to greyhounds.

Animal Welfare Is ‘Paramount’

GBGB’s chief executive Mark Bird outlined greyhounds require much more in terms of protection as compared to domestic dogs in the UK and stated that the welfare of the animals is a paramount objective in licensed greyhound racing.

He further noted that each greyhound is being checked by a vet before and after the race and their trainers’ kennels are being subjected to regular “inspections by vets, stipendiary stewards and independent auditors” to ensure compliance with welfare standards.

There are also strict anti-doping policies in place and any violations could result in a lifetime ban for trainers while all instances are being reported to the appropriate authorities, Bird concluded.

Members of the committee will seek clarity on regulation enforcement from relevant stakeholders, including the Animal Welfare Commission, before taking the petition forward.

Sisal May Join Camelot in Contesting UKGC Lottery Operator Selection Process

A month has passed since Allwyn Entertainment has been awarded a license to operate the National Lottery, promising sweeping changes in the sector, and making sure that the lottery will be “resuscitated” and enjoy some significant advantages. Allwyn will reduce the minimum lottery ticket cost to £1 and add more games while ensuring better profitability and more money committed to good causes.

The bid is now contested by at least one entity with Camelot, the incumbent, revealing that it would seek to challenge the selection process and argue that the UKGC has not been entirely fair in pronouncing Allwyn Entertainment as the winner. Camelot has been the incumbent since the first lottery selection process in 1994 but this may now come to an end.

Now, the other bidder in the process, Sisal, may be looking to challenge the decision, joining a potential lawsuit by Camelot lodged with the High Court. Camelot contends that the UKGC has favored Allwyn Entertainment awarding it the new contract beginning in 2024. The regulator has denied wrongdoing and issued a rebuttal arguing that its process has been based on merit only.

However, Sisal and Camelot tend to disagree it seems, as a slight change in the tender rules may now give the pair legal grounds to challenge the outcome of the bid. Sisal has made no official move just yet, but it may try to do so. Flutter Entertainment, the company that acquired sisal for a total of £1.6 billion ($2.10 billion) in 2021, is eager to make its latest asset have a shot at one of the biggest lottery markets, hence why it might choose to challenge the move.

The UKGC has said that it’s confident that its selection process was based on transparent criteria that guided the entire process and expressed regret that Camelot had chosen to settle matters in a court of law. The regulator further added that it had been able to apply all prerequisites to ensure a level playing field. Therefore, its decision was predicated based on the individual merit of individual companies.

The UKGC may be challenged with some success, though, as it has just transpired over the weekend that the watchdog has taken money from good cause charities to meet a budget deficit.

Brazilian deputies vote to legalise gambling

The vote was to take place on 22 February, but was pushed back until yesterday (23 February).

Deputies voted 246-202 in favour of Bill 442/1191, bringing various forms of gambling to Brazil for the first time since a wide-reaching ban came into effect in 1946.

Bill 442/1191 was first introduced more than 30 years ago, initially as a jogo de bicho bill, and has been subject to various amendments throughout the years, adding more channels and types of gaming.

The bill would bring casino, online gaming, horse racing, slot machines, bingo and jogo de bicho operations to Brazil.

Casinos can now be established in each of Brazil’s 26 states, in the form of integrated resorts. Under the bill, the state of São Paulo could have up to three casinos, while Rio de Janeiro, Minas Gerais and Bahia could have up to 2 casinos each. All other states could have one integrated resort each.

Casino licences will be available through a tender process, where the highest bid will obtain the licence.

No operator will receive two licenses in the same state, or over five in total.

Casino operators must pay a licence fee of BRL$600,000 (£89,100/€106,800/$119,700) per licensed establishment. Online gaming operators will be subject to a BRL$600,000 fee for each licensed domain. Bingo operators must pay BRL$20,000 per establishment while jogo de bicho operators must pay BRL$20,000 quarterly per licensed entity.

Online games of chance – though not betting which is being regulated separately – would be permitted, with both the federal government and states permitted to offer licences.

While licensed online gambling would be permitted, unlicensed foreign websites would be blocked, and servers for locally licensed igaming operators must be located in Brazil.

Gambling on credit will be prohibited and tax on winnings will stand at 15%.

The bill will also allow for the creation of SINAJ, a a gambling supervisory authority in Brazil. It will consist of a federal registry, a supervisory body and betting agents.

A service that would identify and block problem gamblers, titled National Register of the Prohibited (RENAPRO), will also be established.

The bill will now go to the Senate, which will vote on it today (24 February).

If approved, it must then be ratified by President Jair Bolsonaro before it is passed into law. Bolsonaro has the power to veto the bill, and has indicated that he would do so, but the Senate may override a veto. The Senate is expected to have the votes required to override a veto if needed.

BetVictor agrees £2m regulatory settlement over GB licence breaches

Following a compliance assessment in March 2020, the Commission launched a regulatory review of BV Gaming, which uncovered breaches of the licence conditions and codes of practice (LCCP) of its Combined Remote Operating Licence.

The investigation and regulatory review, which covered the period from 1 January 2019 to 12 March 2020, found failings related to the implementation of anti-money laundering (AML) policies, procedures and controls.

In addition, the GC said there were deficiencies in BV Gaming’s responsible gambling policies, procedures, controls and practices, including weaknesses in implementation, as well as breaches of fairness rules.

BV Gaming operates the betvictor.com, betvictor.mobi, hbingo.co.uk, heartbingo.co.uk and parimatch.co.uk brands in Britain.

“As a gambling regulator our focus is on ensuring that gambling in Britain is fair, safe and crime-free, and BetVictor failed consumers by breaching rules aimed at achieving these objectives,” the Commission’s director of enforcement Leanne Oxley said.

“Non-compliance – no matter what the reason – will never be a viable business option for gambling businesses. We will always be tough on operators who fail in this way.”

Specific breaches included licence condition 7.1.1(1), which states all licensees must ensure terms are fair as per the Consumer Rights Act 2015. 

The Commission said this was an isolated failing and not systemic, but BV Gaming accepted that, at the time, it was not in full compliance with the Competition and Markets Authority (CMA) principles in regard to its terms and conditions for promotions.

In addition, the Committee ruled that it was not clear in its terms and conditions whether the operator would try to repay any deposit balance to the last payment method used by a customer when an account is inactive for 12 months, as required by the Act.

A further breach was identified in relation to licence condition 12.1.1(1), which says licensees must assess of the risks of their business being used for money laundering and terrorist financing, and update this when needed.

BV Gaming admitted its AML risk assessment did not “sufficiently” meet the Commission’s expectations or fully comply with its AML risk assessment.

The assessment also flagged licence condition 12.1.1 (2), which says that after completing the risk assessment, licensees must ensure they have appropriate policies, procedures and controls to prevent money laundering and terrorist financing.

Again, BV Gaming accepted at the time, its policies and processes were not fully compliant, and it was in breach of the condition.

The Commission said it did not find evidence of effective due diligence in the majority of the customer accounts reviewed. In addition, certain customers were able to deposit and spend large sums of money before source of funds and affordability were established. 

Customers were also able to continue gambling after hitting the initial trigger as they would not hit further triggers for significant periods.

Another breach related to licence condition 12.1.1(3), which says these policies, procedures and controls must be implemented effectively, kept under review and revised appropriately. BV Gaming admitted its processes were not fully compliant and it needed a more coordinated approach.

Here, the Commission again said there was no evidence of effective due diligence in the majority of the customer accounts reviewed, nor were there controls to ensure restrictions were placed on accounts when requested.

The regulator also noted an “overreliance” on automated thresholds for source-of-funds checks.

The Commission said there was some evidence of regular meetings with customers, particularly looking at the top 25 high-risk customers, but there was no evidence of ongoing monitoring unless they hit the thresholds.

Meanwhile, the regulator also identified a breach of paragraph 1 of licence condition 12.1.2, which requires licensees based abroad to comply with the Money Laundering Regulations 2007.

Furthermore, the Commission noted paragraphs one and two of social responsibility code provision (SRCP) 3.4.1 (Customer Interaction). This licence condition requires operators to have in place policies and procedures for customer interaction where they have concerns about a player’s behaviour.

These policies must include a specific provision for making use of all relevant information to guide and deliver effective customer interaction.

BV Gaming agreed it was not fully in compliance as it failed to implement and follow its policies to ensure ‘at risk’ customers were protected from harm, nor did it make use of all relevant sources of information to ensure effective decision making.

Finally, the Commission identified a breach of SRCP 5.1.9(2), which requires licensees to ensure conditions that apply to marketing incentives are provided “transparently and prominently”.

BV Gaming accepted that significant conditions of a welcome offer were not displayed with sufficient prominence at the point of promotion, despite there being sufficient space to do so.

Analysing its findings, the Commission took into account the serious nature of the breaches, impact on the licensing objectives and the fact that similar cases have been identified with other operators, and so BV Gaming’s management should have been aware of such issues.

The regulator did, however, note a number of mitigating factors including BV Gaming’s early recognition of failings and that it was co-operative throughout the review. The Commission also recognised the steps BV Gaming took to address the issues, including putting in place a remedial action plan within two days of receiving the notice commencing the licence review.

The Commission and BV Gaming reached a regulatory settlement worth £2.0m, including a £1.7m payment in lieu of a financial penalty, £352,000 divestment of gross gaming yield gained as a result of the failings, and £11,000 towards the costs of investigation.

Swedish finance authority fines Trustly SEK130m for AML failings

An investigation led by Finansinspektionen found that Trustly had not complied with the authority’s regulations or Sweden’s Money Laundering and Terrorist Financing Prevention Act (Anti-Money Laundering Act).

Shortcomings were identified in the areas of risk assessment, procedures and guidelines, customer due diligence and monitoring and reporting.

The investigation revealed that Trustly had failed to include a “large portion” of its customers in anti-money laundering and anti-terrorist financing measures, violating the Anti-Money Laundering Act.

Trustly had not carried out a risk assessment on these customers, it said, nor had the payment provider considered them in terms of its procedures and guidelines. These customers have also not been monitored in general.

Trustly was also found to have violated Finansinspektionen’s own anti-money laundering regulations when it came to transaction monitoring, while many of the above Anti-Money Laundering Act failings were also classed as violations of Finansinspektionen’ rules.

Finansinspektionen described Trustly as being in an “industry associated with a high risk of money laundering and terrorist financing”, in which it acted in a position “that can almost be described as a hub” between banks and gambling operators.

Finansinspektionen decided that the violations of the Anti-Money Laundering Act and the authority’s own regulations needed to be dealt with separately.

It ruled that the Anti-Money Laundering Act infringements were not as serious as the infringements of the authority’s own money laundering regulations, and a warning is sufficient for these.

For the violation of its rules, however, it was handed a SEK130m fine, accompanied by a warning.

“Trustly’s role in the payment chain between the gambling industry and a large number of banks makes it possible for the company to see flows that are not available to other market participants,” said Erik Thedéen, director general of Finansinspektionen.

“A company that has chosen fast and simple as its business concept in the gambling industry needs to be very thorough in its work to prevent money laundering. We have identified in our investigation that this has not been the case.”

The fine comes days after Trustly announced that it would lay off 120 employees as part of restructuring efforts. It did not detail how many of these layoffs would affect its gaming division.

Most of the affected employees, however, are based its Stockholm office. Speaking to iGB, a spokesperson stated that Trustly was “reducing structural complexities” in its refocusing of geographical reach and product offerings.

Wild West: gambling advertising at Premier League grounds

How big a business? Sports Betting generated 490 billion US dollars in revenue during 2019, and this is forecast to rise to 770 billion dollars by 2025. However, it is generally held that this amount is eclipsed by the amount of money wagered on the illegal market.

Due to its unregulated nature, estimating the amount of illegal sports bets wagered each year is tricky. However a United Nations Office on Drugs and Crime (UNODC) Report recently estimated that 1.7 trillion dollars is wagered on illegal sports betting markets each year.

In other words, the value of the illegal sports betting market is over three times that of the regulated market. As the UNODC Report notes, organised crime’s involvement in illegal betting is equivalent in value to its involvement in drug, human, or arms trafficking.

Of course, the FAPL wants nothing to do with the illegal betting market, or its connections to criminality. But as we approach the third year of the Covid-19 pandemic, clubs are increasingly desperate for revenue. As such, many could be forgiven for being hypnotised by dollar signs.

Rule J.5 of the FAPL Handbook requires its clubs to notify the league about betting partnerships, but the League doesn’t regulate such partnerships. It also doesn’t regulate which betting companies can advertise at its grounds. This is a concern, as the dividing lines between legal and illegal betting are becoming increasingly blurred.

Jingle Balls

Twenty six sports betting websites appeared at the 20 FAPL stadiums over the Christmas period. Nine of these 23 betting companies advertised at more than one FAPL game, resulting in 63 separate sports betting company adverts on LED perimeter boards during the 20 game period. 

As most LED boards feature a rolling display involving under 15 companies, at some games this involved an almost constant display of gambling advertising during the 90 minutes of on-field play. Some games featured doubly-stacked LED boards equivalent to the height of a player on the TV screen.

At Aston Villa versus Chelsea on Boxing Day, five gambling companies advertised on perimeter LED boards in a near constant parade. In addition, OB Sports received extra coverage as Villa’s Sleeve Sponsor and Parimatch received match day branding due to its partnership with the club.

The level of betting company advertising during FAPL games makes a mockery of a ‘whistle to whistle’ TV ban voluntarily agreed by betting companies in 2019, and hailed as a success by the Betting and Gaming Council. It also calls in to question whether proposed UK Government crackdowns on betting sponsorship in football will be effective, unless they include LED perimeter boards.

Blurred lines

As well as appearing in English, OB Sport’s perimeter advertising at Villa Park also advertised OB.com in Mandarin. The advertised link redirects to www.obao76.com, which is entirely in Mandarin. Online gambling is illegal in China, however it is possible that the site may targeting Mandarin speakers in other countries.

According to a Mandarin disclaimer at the bottom of its homepage, OB.com – or obao76.com – is licensed by the Malta Gaming Authority (MGA), the British Virgin Islands Financial Services Commission, and the Philippine Amusement and Gaming Corporation (PAGCOR). According to the disclaimer, the OB.com brand is owned by Opel Entertainment. 

A search through the MGA and PAGCOR internet sites doesn’t reveal any licences granted to OB.com or Opel Entertainment. None of the OB.com domains are listed on the MGA’s list of licensees. This raises questions as to whether the site is licensed at all.

Information about Opel Entertainment is hard to come by. However a popular Chinese singer, Jeff Chang, was recently forced to defend himself after it was reported that he had agreed a contract to promote a sports betting company. In a 30 December post on Chinese social media platform Weibo, Chang clarified that he had terminated the contract in March 2021, which was limited to local use in The Philippines.

The sports betting company concerned with Chang’s faux pas? Opel Entertainment. The company also owns Oub121.com, again in Mandarin, which has exactly the same site layout as obao76.com and proudly displays its sponsorship deal with Aston Villa at the bottom of the page. 

Accessing this website outside of Asia isn’t easy. Once registered using a Chinese mobile phone number, Oub121.com allows users to create a virtual wallet, which can be recharged using crypto currencies, many of which[1] also advertised at FAPL grounds over the Christmas period. Once this is done, a betting window appears which allows users to both watch, and bet on, live sporting events. 

As perviously mentioned, online gambling is illegal in China. It would therefore appear that in this particular case, FAPL perimeter LED boards have been used to advertise an application that allows Chinese residents to illegally place online wagers on sporting events.

Opel Entertainment isn’t the only company advertising sports betting to Asian audiences. W88.com is Crystal Palace’s betting partner, and also appeared on the LED perimeter boards at Crystal Palace vs. Norwich and Leicester City vs. Liverpool on 28 December. 12bet also appeared on the LED perimeter boards during Palace’s game against Watford on 28 December, advertising in both English and Mandarin. 

At Wolves’ foggy 19 December game against Chelsea, MX128.vip was advertised in Mandarin in doubly-stacked LED boards, with static advertising boards promoting gambling companies appearing above this. The MX128.vip site appears to be inaccessible from the UK, where it redirects to ManBetx.uk. 

The reason for advertising the .vip domain in Mandarin is unclear. However in September 2020, the British Gambling Commission warned that it would consider banning ‘VIP customer’ schemes seeking to attract high value customers, as operators were failing to protect them from overspending. 

ManBetx is owned by Vivaro, which operates a number of domains including Lovebet, which advertised at the Leicester City vs. Liverpool game on 28 December. Could ManBetx.uk be seeking VIP Asian customers through advertising at FAPL grounds? The company failed to respond to questions.

The licence roulette wheel

So how are companies such as Opel Entertainment allowed to advertise their sports betting OB.com brand in Great Britain if they aren’t licensed there? For nine of the 23 betting brands advertised over the Christmas period, the answer lies with a company based on the Isle of Man.

OB.com’s UK-facing site, www.oubao.co.uk, mentioned that it is ‘powered by’ TGP Europe, which is regulated by Great Britain’s Gambling Commission. The same is true for Fun88.co.uk; SBOtop.co.uk; SportsBetio.co.uk;  Stake.uk.com; 12Bet.uk; HTHBet.co.uk; LeyuBet.co.uk; and i8Bet.co.uk.

TGP stands for The Gaming Platform (TGP), its internet site reveals. TGP Europe is not a gambling company, but a technology company that builds websites for clients. Its client page doesn’t mention its involvement with HTHBet, LeyuBet, or i8Bet, however its Gambling Commission licence page does.

This lists 31 domains, 14 of which are afforded ‘White Label’ status. This includes the nine betting operators powered by TGP Europe that advertised at Premier League grounds over the Christmas period. ‘White Label’ status allows a company licensed by the Gambling Commission to contract provisions of its licensed activities to third parties.

Under Article 1.1.2 of the Gambling Commission’s Licensing Conditions and Code of Practice, licensees are responsible for ensuring that third parties are ‘bound by the same licence conditions and subject to the same codes of practice as the licensee’. TGP Europe may have done this for the UK-facing domains listed on the Gambling Commission site, however not all sites connected to the nine TGP Europe brands are UK facing.

As previously mentioned there are questions about whether OB Sports’ Mandarin site, which featured on FAPL LED perimeter boards over the Christmas period, is licensed at all. At Everton’s game against Brighton on 2 January, i8Bet advertised in English, Thai, and Mandarin. Its UK site has yet to launch, but it was able to promote the Thai version of its site, which mentions that it is based in Costa Rica.

Online gambling is illegal in Thailand. Yet as the screenshot on the right shows, the Thai language version of its internet site offers odds on FAPL games, including on events such as corners and bookings. A disclaimer on its internet site mentions that it is the customer’s responsibility to ensure that gambling is legal at their location. Of course like OB.com, another brand in the TGP Europe stable, i8Bet may just be advertising to speakers of Mandarin and Thai.

HTHBet.co.uk is another gambling brand powered by TGP Europe. However at Leicester vs. Liverpool on 28 December and at Manchester United vs. Burnley on 30 December, HTH367.com also advertised in Mandarin. The site now redirects to HTHBet.co.uk but at the time of the match, redirected to a Mandarin version of the site that features the same interface as the Mandarin version of OB Sport’s site[Picture HTH2].

The HTH367.com internet site is geoblocked in the UK, however it mentions that HTH is the Global Official Partner of Manchester United; the Official Partner of Leicester City; the Official Regional Partner of AC Milan; the Official Regional Partner of Wolfsburg; and the Official Asian Sponsor of Lille. An ‘About Us’ section of the website mentions that the site is owned by a company called China Experience Technology (华体会). Its corporate website lists its address as RCBC Plaza, Tower 2, Manila, Philippines. The building confirmed that it doesn’t have China Experience Technology, 华体会, or HTH registered as holding offices in any of its buildings.

Like obao76.com, HTH367.com mentions that it is licensed by the MGA, PAGCOR, and the BVI Financial Services Commission. Like obao76.com, a search through the MGA and PAGCOR internet sites doesn’t reveal any licences granted to China Experience Technology or HGH. None of the HTH domains are listed on the MGA’s list of licensees.

Fun88 is another gambling brand powered by TGP Europe. At Tottenham vs. Crystal Palace on Boxing Day it advertised Fun369.com, which redirects to J9.com, the international basketball federation’s (FIBA) new betting partner. As previously reported, there are serious questions about whether this site is licensed at all.

However at Chelsea’s victory over Tottenham in the Carabao EFL Cup semi-final on 12 January, the Mandarin advertised Fun88 domain had changed to Fun279.com. This links to a Mandarin sports betting application listing Fun88’s shirt sponsorship with Newcastle United and an Asian betting partnership with Tottenham. 

In November, Tottenham renewed its partnership with Fun88. We asked the club if it was aware that adverts at its Stadium were used to promote J9.com.

Ghost chasing

TGP Europe’s registered address is a small office above a betting shop on the Isle of Man. Google maps reveals that this is an address for a bookmaker.

From such a small base, can TGP Europe be expected to have effective oversight of all the gambling brands promoted by its partners at FAPL grounds? It doesn’t even appear to have effective oversight of its partners. 

Yabo Sports, a TGP Europe client, boasts Manchester United; Hertha Berlin, AS Monaco, Leicester City and Bayern Munich amongst its partners, which also include the Argentina national team; Italy’s Serie A; and the Copa América. It appears that its site has now been rebranded as Betvision.com, another site ‘powered by’ TGP Europe, after questions were raised about the identity of executives that appeared at sponsorship launches.

There appears to be no mention of Yabo Sports on Manchester United’s internet site or on Serie A’s list of partners. However, Hertha Berlin lists YaYu.com on its partner list, which is geoblocked from UK access. A media statement mentions that YaYu is a ‘leading provider of online sports entertainment services’. however the site can be accessed through Google Translate which shows that it is a gambling site that has connections to OB Sports, which appears to offer sports betting opportunities.

Another new arrival on the scene is Midnight Gaming, whose W88 brand is Crystal Palace’s sleeve sponsor. As mentioned, it appeared on LED perimeter boards at the London club’s 28 December game against Norwich City; and at Leicester City’s game against Liverpool on the same day.

The Gambling Commission lists an address in Poole, Dorset, as the company’s head office. This is also the address of another company licensed by the Gambling Commission to supply remote gambling software, AliQuantam Gaming Limited. The same Poole address is also listed as an office by gambling payment platform Hexopay.

A search on Google Maps reveals that AliQuantam Gaming is the only company registered at this address. AliQuantam’s internet site reveals that it is a gaming platform provider, similar to TGP Europe. However, the UK government’s Companies House lists AliQuantam Gaming as dissolved in 2010.

Companies House lists Midnight Gaming as owned by AliQuantam and a previous company name, Sporting Black Limited. It also shows that Midnight Gaming transferred its address from London to Poole in September 2020. It also confirms that the main company Director is Alan Hilliard Ehrlich.

Analysis of Companies House documents reveals that Ehrlich resides in Israel and in 2013, was Head of Poker Networks at PartyGaming. In 2011, PartyGaming merged with Bwin, and is now operated by Entain. 

A ‘Hilly Ehrlich’ was mentioned as the Business Development Manager of W88.com by Wolverhampton Wanderers, when it announced its partnership with the betting brand in 2018. This interview confirms that ‘Hilly Ehrlich’ was also Head of Poker Networks at PartyGaming.

In addition, AliQuantam Gaming appears to be behind an old website linked to both W88 and BR88. Again, the Poole address of AliQuantam Gaming is listed. BR88 was confirmed as Villa’s sleeve sponsor in 2019. Hilly Ehrlich was also mentioned when the club agreed a separate deal with W88 in June 2019.

AliQuantam’s internet site mentions that it is licensed in Malta. However a search of the MGA’s internet site for either AliQuantam, Midnight Gaming, or BR88 again yields no results. An internet search suggests that W88 may be owned by Marquee Holdings, whose shareholders are listed in the Panama Papers. 

W88 isn’t the only company connected to FAPL advertising mentioned in the Panama Papers. Vivaro, which operates ManBetX and LoveBet, is also listed. Of course, being listed in the Panama Papers only shows that companies hold offshore bank accounts and doesn’t suggest any criminal activity. 

The analysis above is designed to show the difficulty that FAPL clubs have in establishing who is behind the betting brands that advertise on their shirts and at their grounds. And if top FAPL clubs have difficulty, it can be assumed that the problem is likely to be worse further down the football pyramid. So what do the FAPL and the Gambling Commission have to say about the situation?

Not my job

The FAPL only regulates the visual aspects of LED perimeter boards, and advised The Sports Integrity Initiative that it is up to clubs to ensure that they remain within the law. There are no restrictions on use of double LED boards, as utilised for Wolves vs. Chelsea through the home club’s partnership with ADI. The FAPL said it doesn’t permit use of virtual technology to replace advertising featured on LED boards with other brands in non-UK TV markets, although this appears to be contradicted by observers.

LED boards are not sold centrally, but some FAPL clubs use third party agencies[2] to sell aggregated minutes via multi-club packages. This perhaps explains why LED perimeter advertising at some stadiums appears to be very similar. 

‘Online gambling operators are required to hold a Gambling Commission licence to transact with British based consumers’, read a reply from a Gambling Commission spokesperson to a series of questions. ‘If we find an unlicensed operator acting illegally we will take action. A sports body engaging in sponsorship arrangements with an unlicensed remote operator may be liable for the offence of advertising unlawful gambling if the remote gambling activity isn’t blocked to consumers in Great Britain and that this is clear to consumers. 

We’re of the view that the best way for sports bodies to protect themselves against this risk is to ensure that they only promote gambling operators licensed by us. It is for the owner of the advertising space to satisfy themselves that they are not committing the offence of advertising unlawful gambling.’

Most of the betting brands that featured at FAPL stadiums over the Christmas period have a UK-facing site, often licensed through a White Label agreement with a third party. However as shown above, many of these also have overseas facing websites and mobile applications.

Who is responsible for ensuring that all of these overseas facing websites, often advertised in languages other than English, are legitimate? According to the FAPL, the Gambling Commission is responsible. According to the Gambling Commission, the FAPL clubs are responsible. 

The opaque situation that surrounds White Label domains perhaps explains why the UK Government is reviewing their status as part of its Gambling Review. Concerned about gambling’s relationship with sport and football in particular, UK Gambling Minister Chris Philp will meet with sporting bodies next week. England’s Football Association has already prohibited betting companies from streaming FA Cup games after Bet365.com’s current deal expires at the end of the 2024/5 season.

Of course, it’s perfectly legitimate for FAPL clubs to have legal, regulated Asian betting partners. However this article demonstrates the difficulty that clubs face in assessing who is behind such companies, and in ensuring that such partners are not advertising illegal services in foreign languages. And until the FAPL and British Gambling Commission reassert control over this area, draconian restrictions are a real possibility.

1. AstroPay, which advertises in a video on its gaming page that it is an expert in ‘hard to reach’ markets such as Brazil and India, advertises on FAPL LED boards. BitCi also advertises on FAPL LED boards, as did Socios.com at Crystal Palace’s 28 December game against Norwich, despite a 22 December Advertising Standards Authority ruling that an Arsenal advert for the company breached its Social Responsibility Code. Kyber Network, Alchemy Markets, CorPay and other cryptocurrency products also featured on FAPL LED perimeter boards.

2. We could only find one third party agency used to sell LED perimeter boards at FAPL grounds – Project11.

The Asian Connection

A new name appeared on the LED boards which run across all four stands of Goodison Park on the occasion of the last Merseyside derby: i8.BET.

A few hours earlier, on the very same day, Wednesday 1 December, Everton FC announced on its website that it had “further expanded its international partnership portfolio by signing up i8.BET as a new commercial partner”.

The statement read: “The deal will see i8.BET become the Club’s exclusive Official Betting Partner in Asia, as the gaming brand continues to expand its trusted and innovative platform in the online betting market across Asia and beyond”.

The news was barely shared outside of the specialist betting media, which satisfied themselves with publishing quotes from the original statement without adding detail or comment. No British newspaper or website of note thought it worthy of a mention.

This was understandable. This type of partnership is commonplace in the Premier League, where drawing money from opaque e-Gambling operators has long been accepted as a fait accompli, regardless of the inconvenient questions which could be raised about the problematic nature of these businesses. English football chose to look the other way, as legislators have done until now. When Josimar contacted eleven Premier League clubs about their existing, lucrative relationships with various online foreign bookmakers, only two, Wolves and Manchester United, replied to our enquiries, both of them telling us in substance: “no comment”.

That some of these operators, whose beneficial owners are unknown to all, the clubs they do deals with included, are probably complicit in money-laundering, labour-trafficking and other criminal activities is not speculation, but taken as fact by national and international law enforcement agencies (see Josimar’s 18-month long investigation into the matter, The trillion-dollar gambling game). Yet, despite recent talk of reforming the UK gambling laws, the links between elite English football and mysterious e-Gambling platforms is as strong as it’s ever been, and fresh deals are still being brokered, as was shown by Everton’s acquisition of a new ‘Official Asian Betting Partner’ (*).

Everton FC could be expected to be extra careful when choosing new betting partners.  SportPesa, a Kenyan bookmaker founded by exiled Bulgarian casino owner Guerassim Nikolov, had become their main sponsor in June 2017. The five-year deal, the biggest in the club’s history, worth an estimated 62.5 million US dollars, was supposed to run until June 2022, but the club had to cut its partnership short in February 2020. An investigation by The Guardian’s David Conn revealed that the company did not pay tax on the huge profits it made in the African country and beyond, and had its activities suspended by the Kenyan government in 2019. Nikolov was also suspected of credit card fraud on a massive scale, racketeering, and even, in a surreal twist, the hijacking of 14 trucks in Serbia. Interestingly, SportPesa had acquired its UK gambling licence through the services of TGP Europe Ltd, a company based in the Isle of Man which specialises in providing so-called ‘white label’ licences to foreign operators. It is a name we’ll come across again.

«Promotions in key brand territories»

So, what of i8.BET, the ‘trusted and innovative platform’ which is referred to in Everton’s statement?

A certain ‘Darren Wang’, Chief Marketing Officer of the club’s new Asian partner, is quoted in the same statement as saying: “In line with our global tagline of ‘Choose The Best’, we are excited to exclusively partner with such an iconic Premier League team as Everton Football Club; a partnership that will see us working with the club on a number of exciting and innovative initiatives and promotions in key brand territories in support of our ongoing brand expansion and trust building efforts.”

Josimar set out to find out what exactly this ‘ongoing brand expansion’ consisted of. The truth is that i8.BET has a long way to go before establishing its presence and ‘building trust’ on markets where – it bears repeating – gambling on sports is illegal. Why? Because, strictly speaking, i8.BET is not a bookmaker.

As is commonplace with other Asian e-Gambling platforms which have acquired ‘white label’ licences in Great Britain, visiting i8.BET’s UK website leads to a dead-end. It is not operational.

A question of time? Perhaps. But it should be remembered that, for Asian operators, the one real purpose of acquiring a UK licence is to use their virtual presence in Britain as a springboard for the genuine markets where they will make their money. Linking up with prestigious partners such as Everton FC and, by extension, the world’s most popular football league, the Premier League, is the most efficient way to promote the gambling brands at “home” – in China, Thailand, Indonesia, Malaysia – where advertising sportsbooks is just as illegal as placing bets on what they offer.

The story is quite different when avoiding geo-restriction and accessing i8.BET from Indonesia, Thailand, China and Malaysia, as Josimar has done.

These are just a few examples of the imagery used by all of i8.BET’s Asian websites, complete with the usual ‘suggestive’, borderline pornographic pictures of very young women, plus a photograph of male supermodel David Gandy lifted from an advertisement for Johnny Walker whisky for good measure. One thing is sure: i8.BET is not holding back on using Everton FC’s name and crest, or likenesses of its players.

The real problem, however, does not lie with these images, repulsive as they may be for many.

Josimar could find no mention whatsoever of i8.BET, its tagline ‘Choose the best’ or of its ‘Chief Marketing Officer’ Darren Wang anywhere on the web prior to the announcement of the bookmaker’s deal with Everton on 1 December, even when using search engines from countries where the brand is supposed to be present. It was as if i8.BET had been created ex nihilo.

The domain name itself is the property of a Chinese national named Lin Yunfei, domiciled in Zhengzhou, who has registered hundreds of other names, but about whom no other details can be found. As to the brand itself, which claims to hold a Filipino licence on its Malaysian website, no company of that name can be found on the official Filipino registry of licensed gambling operators, which suggests that either i8.BET is the avatar of another company, or was only registered very recently, if one sets aside the possibility that it does not even exist.

Josimar tried to register as a client and place an actual bet on the Malaysian, Thai and Chinese versions of the i8.BET website. What happened then was highly unusual – and suspect: we were not taken to a dedicated, unique sportsbook as expected, but redirected to other e-Gambling websites, namely those of M8BET, MAXBET, NOVA88 and SBOBET.

Due diligence?

In other words, it was impossible to place a bet on i8.BET itself, which appears to be nothing but an agent for other bookmakers; yet, to place that bet with SBOBET or any of the other promoted brands, the customer first had to register with i8.BET, which raised the question: could this be a way to harvest personal data from customers? Does i8.BET actually exist? Is there even really someone called ‘Darren Wang’? And is Everton FC aware of all this?

What is more, none of the bookmakers which i8.BET is a portal to is licensed in the UK. This means that the UK Gambling Commission, by granting the i8.BET brand a licence, has enabled unregulated operators to benefit, at least indirectly, from its stamp of approval.

Josimar approached Everton FC with a list of detailed questions, and asked the club to provide contact details for their new partners, since, apart from a ‘chat’ function for customers, none of these details appear anywhere on any of the various Asian versions of the i8.BET website. No response was forthcoming.

Josimar also contacted the UK Gambling Commission, which replied: “We do not talk about individual operators or cases”, referred us to its online registry of licensed companies, and told us, that “Where an operator contracts with a third party, we expect the operators that we licence to carry out all necessary due diligence to satisfy themselves that the proposed relationship will not in any way compromise the operator’s own compliance.”

The operator in question is TGP Europe Ltd – the very same Isle of Man company which acquired a UK licence for Everton FC’s previous – and disgraced – betting partner SportPesa, and has done the same for a number of e-Gambling sponsors of English football clubs, including FUN88 (Newcastle), SBOTOP (Leeds United, which has direct links with SBOBET, one of the websites i8.BET redirects to), Yabo (formerly associated with Manchester United) and a number of others.

Josimar contacted TGP Europe Ltd and put a number of questions to the Douglas-based company, namely:

Would you be able to provide Josimar with a point of contact with i8.bet and, in particular, Mr Darren Wang, its Chief Marketing Officer, who is quoted in Everton FC’s press release?

When do you expect i8.bet to start operating in the UK?

is i8.bet a genuine e-Gambling platform, or does it act as an agent for other Asian bookmakers?

As regards TGP Europe Ltd and its parent company TGP Holdings Ltd, is it correct, as has been mentioned in numerous media reports, that it was originally founded and is ultimately owned by the Macau-based group SunCity?

The last of these questions was of particular interest, as the billionaire owner of the SunCity group, Alvin Chau (pictured below), was arrested along with ten other individuals by Chinese authorities in late November, under suspicion of being part of a criminal gang and of “establishing gambling platforms overseas and soliciting residents in mainland China to engage in illicit gambling activities online”, to quote Chong Kam Leong, a spokesman for Macau’s Judiciary Police (*). According to media reports, the individuals who were arrested admitted “establishing overseas gambling platforms and conducting illegal virtual betting activities” in China.

TGP Europe did not respond to our questions.

And on this Monday night, as Everton welcomes Arsenal in its grand old stadium for the 15th round of the Premier League campaign, the name and the promotional messages of i8.BET will be shown to hundreds of millions of spectators across the globe. Who they are, what they actually do, who might be hiding behind them, no-one knows, aside from a handful of individuals who are neither seen nor heard, nor scrutinised. What kind of due diligence process, if any, was conducted before TGP, the UK Gambling Commission and Everton welcomed the newcomer is anyone’s guess.

In 21st century football, it’s business as unusual.

(*) Everton FC already had two ‘official betting partners’: Cyprus-based Parimatch, also a partner of Juventus and Leicester City, which signed a two-year deal with the club in September 2020, and operates primarily in Eastern Europe; and Rushbet.co, a partner since December 2020, which is active in Colombia.

(*) SunCity shares plunged by 10% when the arrests were announced.

Genting HK In Liquidation Activity Amidst Crippling Debts

The Hong Kong-based, cruise ship arm of Genting, one of the biggest players in the gaming industry, has moved to appoint liquidators to wind up its operations. Genting HK’s move comes in the wake of its exclusively-owned subsidiary, MV Wertfen, registering for insolvency last week.

MV Wertfen, whose German manufacturing bases produce ships for its parent company, were subject to crippling debts of around HK$2.77billion ($355.6million). The collapse was catalysed by their failure to acquire a substantial sum in order to construct the planned ‘Global One Cruise Liner’.

GHK desperately attempted to salvage its ailing subsidiary business, even seeking credit support from the region of Mecklenburg-Vorpommern, the north-east German state who plays host to the company’s main construction sites. However, this request was rejected on Monday, spelling the end of the road for MV Wertfen.

Yesterday, Genting Hong Kong filed a winding-up order at the Court of Bermuda, and submitted a proposal for liquidators to take control. The firm are keen for those conducting liquidation activity to explore whether enough income can be generated to remain in existence. However, the court will decide if that’s a viable option at a hearing scheduled for later today.

The development saw a raft of non-executive director resignations, with Alan Smith, Lam Wai Hon Ambrose, and Justin Tan Wah Joo all stepping down. Genting have announced that these exits have been positioned in preparation for liquidators to freely conduct business operations in the short to medium term.

Since Tuesday, a hold on Genting HK shares has been in place. The company’s fortunes remain in the balance.

Swedish government set to re-introduce stricter gaming regulations

he Swedish government have announced a return to some of the of tighter gaming regulations implemented as a consequence of the first wave of the COVID pandemic. A move that native regulator, Spelinspektionen, has readily endorsed.

Rising Omicron infections continue to present challenges to the global gambling industry. A combination of stringent travel stipulations and government sensitivity towards increased betting activity, have both conspired to become tricky obstacles to navigate in recent months.

When the pandemic initially arrived on Scandinavian shores, Sweden moved to increase limits on play time, and curtail the volume of bonuses offered by operators. Furthermore, maximum deposit levels were held at 5,000 Krona (U.S $496) per week, a component that will be further tightened to 4,000 Krona (U.S $444) in the latest round of restrictions. However, the play time and bonus approach will be simply re-installed as opposed to being subjected to further control.

The new rules, which are set to commence from 7th February and continue to at least 30th June, have been sponsored heavily by the Minister for Health & Social Affairs, ArdalanShekarbi. Although Shekarbi believes increased regulation is required, there is currently no clear mandate to support this decision. The review into Sweden’s public gaming activity, initiated on the minister’s orders, is yet to be concluded. Moreover, it’s likely findings will not even be ready prior to the February re-launch.

This is a development that the Swedish Trade Association for Online Gambling (BOS) have actively challenged in recent days. Apart from the apparent lack of evidence for increased regulation, BOS suggest that these sorts of measures often drive punters to offshore offerings. GustaffHoffstedt, the General Secretary of BOS, has also stated that the number of gaming operators used per player, on average, significantly increased when deposit limits were initially introduced.

For the time being at least, Sweden looks set to revert back to tighter regulation in the wake of recent COVID upsurges.

888 Reports Impressive Numbers For Q4 End Of Year

888’s sterling performance continues as it announces another record trading year. Gross gaming revenue saw a staggering 14% uplift, fuelled by its expansion in the regulated market space. Indeed, 74% of the company’s turnover was generated through taxable markets, substantially contributing to their impressive return.

The gaming giant, who operates in various territories throughout Europe, overlooked particularly favourable performance in the UK, Italy, Romania and Portugal. Although its numbers in Germany were slightly disappointing, this shortfall was more than made up by those making up the rest of its European sphere of influence.

The firm also experienced exponential growth in its BTC endeavours, with results up 15 points and revenue sitting at a colossal $934m. Within this, casino performance registered at a 24% uplift on last year, with sports growth slightly behind the curve at +4%.

888.com closed out the year with a -16% Q4 return on 2020’s revenue, but, given current market conditions, this sat broadly in line with the firm’s projections. Chief Executive Itai Pazner heralded ‘a year of outstanding strategic progress,’ a notion evidenced by the group’s tactical sale of its BTC and BTB bingo platform for upwards of $50m. This is further underlined by the firm’s pursuit of William Hill’s non-US assets, which, despite its protracted progress, looks set to complete in the next financial quarter.

Pazner will undoubtedly be pleased to see the business delivering these sorts of numbers, with performance only set to strengthen in 2022 as it chases down its ambitious roadmap.