January 24, 2022

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.

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.