Shares of Macau casino operators posted gains of between 3% and 5% after official data released by the Special Administrative Region (SAR) of China’s government revealed that gambling revenue in January nearly doubled.

Substantial Revenue Increase

Macau casinos generated MOP11.58 billion ($1.44 billion) in gross revenue in the first month of 2023 to post an increase of 82.5% from MOP6.34 billion ($786.16 million) in January 2022 and send a note of optimism among executives and analysts following the gambling industry in the SAR that it is the beginning of a solid recovery.

The result was influenced by the rise in visitations during the week-long Lunar New Year holiday as nearly half a million people arrived in the SAR, in contrast to the disappointment from the weak visitation numbers during the three-day New Year’s holiday last month when international arrivals plunged between 33% and 42% when compared to their respective days in the year before.

Despite registering the largest crowds in more than three years, the SAR’s gambling revenue was still behind pre-pandemic levels, posting less than a half compared to the Lunar New Year’s holiday in 2019 but investors reacted positively to the news with the expectation that this is the beginning of a solid rebound.

Another factor that contributed to the January numbers was the removal of testing requirements for inbound travelers from mainland China, Hong Kong and Taiwan on January 8 which led to a resurgence of tourists from the mainland.

The casino industry in the SAR was severely impacted by the zero-COVID policy implemented by the Chinese authorities in 2019, and the attack on junket operators following the arrest of Suncity CEO Alvin Chau which continues to weigh on the impetus for junket operations, leading to their numbers continuing to decline. Recently, a court in Macau sentenced Chau to 18 years in prison.

Commencing New Concession Deals

January was the first month for the new contracts for Macau’s concessionaires – Sands China, Wynn Macau, MGM China, Galaxy Entertainment, Melco Resorts, and SJM Holdings – following the signing of the new 10-year contracts in mid-December which authorized the casino operators to legally offer games of fortune until the end of 2033.

As part of the new concession deals, casino operators agreed to pay a new fee to the government based on the size of their casino floors, despite the plunge in their revenues in 2022 when Macau registered 50% less year-over-year, one of its worst revenue performances on record.

Casinos also committed to investing a total of $15 billion, 90% of which should be invested in non-gaming facilities such as water parks, health and wellness centers, art exhibitions, garden attractions, and others.

Design Works Gaming, a developer of top-performing casino titles, has once again disrupted iGaming with its new product line. The provider’s LuckyTap series seeks to depart from the hackneyed symbol-matching mechanics in traditional games and introduce a brand-new genre.

DWG Disrupts iGaming with Innovative Experiences

As announced by DWG, the LuckyTap games are a product that has been designed to resonate with the needs of contemporary audiences. LuckyTap, according to the studio, is “the future of gambling.”

The games of the series are started with a simple tap, after which the players can enjoy a plethora of polished animations, unique and innovative mechanics and relevant themes. Because of this, the LuckyTap games are poised to appeal to customers of all genders and ages.

The chief executive officer of DWG, Troy Zurawski, slammed the lack of innovation in the industry. He noted that most of the content in the last few decades has been derivative in nature. DWG, however, seeks to change that and stray away from established gambling models.

We’ve removed dice, cards, balls and matching models and transitioned into success-driven mechanics. Did I win or did I lose? This has allowed us to cut through a huge learning curve that exists in most gambling games, leaving room for more enjoyment and excitement.

Troy Zurawski, CEO, DWG

Zurawski concluded that no matter the theme of the game, LuckyTap makes it very clear to players how to win and how much they can win. Unlike its competitor titles, LuckyTap games do not make use of a complicated paytable that confuses players.

DWG Prefers Simplicity Over Complexity

DWG said that its innovative titles were based on deep research on game design, human behaviors, player impulses and game data. All these principles are applied when making LuckyTap titles.

Dustin Bozovich, DWG’s game design manager said that when he first started his career, games were far too complicated. Despite that, according to his observation of the industry, players really cared about winning or losing. Because of that, DWG decided to cut out the unnecessary mechanics and avoid player confusion.

DWG noted that LuckyTap prioritizes simplicity over complexity. It is built upon intuitive mechanics that can be easily understood by players. This way even people who don’t like slots can enjoy the LuckyTap content.

DWG has released 30 LuckyTap games so far and is planning to release 15 more within the next twelve months. The studio has existing agreements with many major operators in the United States and the United Kingdom and is in talks with additional major brands.

The international, members-only organization that reunites state-authorized lotteries, suppliers, and sportsbooks was “delighted” to welcome GeoComply to the family. The World Lottery Association’s (WLA) executive director Luca Esposito spoke about the geolocation and fraud prevention company’s capacity to help promote a more responsible gaming industry. 

This includes enhanced consumer protection against identity theft and fraud prevention for lottery operators, which are two crucial elements needed in the context of the ongoing rise of online gaming. 

GeoComply supplies a variety of markets with advanced geolocation anti-fraud solutions in numerous industries. The list includes cryptocurrency, financial services, entertainment, media, and, of course, the gaming industry. The latter category includes a number of prestigious WLA member lotteries as customers. 

GeoComply’s chief executive officer and co-founder Anna Sainsbury spoke about their mission “to make the internet a safer place for everyone.” She also expressed their excitement to be able to show their support for the lottery sector, which is a sector that shares their own values and commitment to promoting “responsible gambling and good causes.” 

WLA’s official mission is to advance the collective interests of all of its members while helping them grow via the provision of lottery and sports betting-related services. The organization plays the role of an open forum for all members, helping promote their interests and the critical role played by state lotteries in raising money for charities and good causes.

WLA is led by an executive committee made of 13 members. The list includes prestigious lottery chief executive officers from all parts of the world.

The company’s geolocation technology offers a 360-degree picture that helps protect against fake account registration, bonus or promotion abuse, stolen virtual identities, account takeovers, or money laundering, among others. 

GeoComply’s tools work by flagging suspicious users and devices using hundreds of device integrity, location data, and identity fraud checks performed on geolocation transactions. They also rely on past and real-time analysis based on a dataset compiled of over 10 billion transactions completed on a yearly basis. 

With the help of Know Your Customer checks and advanced geolocation authentication, GeoComply’s users can effectively prevent losses triggered by fraud whenever a risk is identified.

GeoComply’s award-winning products rely on technologies created for complex and highly regulated sports betting and online gaming markets in the US. 

GeoComply also offers geolocation fraud detection services for online streamers, online banking, and payments. Some of their most prestigious customers are FanDuel, Amazon Prime Video, BBC, and DraftKings.

At the end of January, GeoComply secured minority investments from Norwest Venture Partners and Arctos Sports Partners. The investments will be used to support their ongoing development in core markets while expanding into financial services and media rights management.

The publicly-traded holding company continues to double down on non-stop innovation in its mission to provide a stellar esports tournament and betting experience. The next step in React Gaming’s vision relies on the burgeoning possibilities of AI and machine learning. The company hopes that integrating these technologies into its offerings would significantly benefit users and boost engagement.

Initial Implementation Will Begin at Two Subsidiaries

Compete.gg and LOOT.BET are the two platforms that will help test and improve the new technology. LOOT.BET is React Gaming’s premiere esports wagering platform, which has already proven itself in a highly competitive market. Offering an exceptional experience to its half-a-million-strong user base, it recently reached a significant milestone by launching its services under an Isle of Man license.

In contrast, Compete.gg is a more socially-oriented platform, allowing users to win cash prizes by playing their favorite competitive titles. The React Gaming subsidiary aims to foster a tightly-knit and authentic community, promoting a high quality of play and allowing members to meet new people, share their achievements, and build a reputation for themselves.

AI and ML Integration Will Benefit Many Verticals

Introducing AI and machine learning should significantly boost both platforms. Compete.gg will primarily benefit by streamlining esports competitions and ensuring an engaging experience for participants and viewers. React Gaming’s Smart AI Tournament System factors player performance and past tournament results to create fair and entertaining matchups.

Compete.gg’s other plans for the technology include assisting affiliated tournament organizers in running various esports events. The result should be improved brand recognition and the ability to smoothly and effectively craft an optimized experience. The process usually requires dealing with vast amounts of data, making it a prime target for testing the company’s AI-assisted solutions.

The Technologies Have Untapped Potential

Machine learning and AI are also quickly becoming valuable assets for betting applications. LOOT.BET’s integration of these technologies will power various engagement-boosting features like in-game analytics, predictive modeling, and personalized recommendations. React Gaming CEO Leigh Hughes noted that this next innovative step would significantly bolster both platforms’ performance.

Our main goal will be to use AI and ML to provide a best-in-class experience for our users, prevent cheating, and predict outcomes of matches…

Leigh Hughes, React Gaming CEO

React Gaming’s primary goal in its innovation-focused approach is bolstering fan engagement, which is the primary revenue-generating factor in esports. Compete.gg and LOOT.BET should provide valuable opportunities to improve AI and machine learning implementation for various use cases. Refining these two technologies should significantly bolster React Gaming’s plans to strengthen the firm’s position in the B2C and B2B markets.

Currently, the front-of-shirt sponsor of the famous soccer team is Cazoo. However, the duo’s sponsorship agreement is getting close to expiry. In light of this, Aston Villa confirmed the possibility to join forces with the online gambling operator BK8. Although there’s nothing signed yet, talks about the possible sponsorship deal with the operator faced strong criticism from the club’s fan base.

Despite the protest of Aston Villa’s fans, the company is still considering the sponsorship deal with BK8, a report released by The Telegraph reveals. If the club continues with the deal with BK8, the gambling operator would become its main front-of-shirt sponsor.

Aston Villa’s chief executive, Christian Purslow, discussed the concerns with fan groups that united against the BK8 sponsorship. However, after the meetings, it was confirmed that the controversial gambling operator is more likely to be the team’s new sponsor for the upcoming three seasons. At the same time, the team confirmed it has conducted “extensive due diligence” checks before agreeing to a sponsorship collaboration with BK8.

“While some fans will be disappointed after Villa’s current front-of-shirt sponsor moved away from gambling companies, the commercial reality is that to teams outside the top six, such sponsors offer clubs twice as much financially as non-gambling companies,” explains a statement released by the Aston Villa Fans Consultation Group.

The FC Plans to Join Forces with a Highly Controversial Gambling Company

But why did Aston Villa’s fans disagree with the idea of a sponsorship between the club and BK8? Well, the gambling company had previously joined forces with another professional soccer club, Norwich City. However, after sexually provocative ads were tied to BK8, Norwich City pulled out of the deal.

At the time, media reports identified BK8 ads on YouTube that implied sexual acts. Additionally, the gambling operator used provocative images of young females to promote its brand. Ultimately, those sexually provocative ads pushed Norwich out of the sponsorship collaboration.

The planned deal between Aston Villa and BK8 comes during the review of the Gambling Act in the UK. The government in the country launched the review in an effort to update the gambling regulation and make it suitable for the digital age. Although previously, Premier League clubs talked about ditching sponsorships, a unified decision is missing at the current moment.

With that in mind, the voluntary ban of sponsorships discussed by the soccer clubs sought to end deals with gambling companies and avoid legislative changes. However, the revamped gambling regulation may bring changes to this vertical but that remains to be confirmed upon the release of the review of the Gambling Act.

Sports betting giant Betfred has penned an agreement with yet another major sports team. This time, the operator signed a deal with the Vegas Golden Knights National Hockey League franchise, becoming its official sports betting partner.

Betfred and the Golden Knights Penned an Agreement

The agreement was announced by the Golden Knights yesterday. According to them, the multi-year partnership will see Betfred’s US branch support the club. The deal also coincides with the operator’s entry into the state of Nevada.

Under the agreement, Betfred and the Golden Knights will launch interactive contests for fans during intermission at certain VGK home games. In addition, the team will work to popularize the operator’s brand and will promote its logo across the T-Mobile Arena stadium. Betfred’s branding will be visible on the dashboard, the LED signage, and the NHL’s all-new DED broadcast signage.

Furthermore, the operator’s logo will be promoted across the Vegas Golden Knights’ various media channels. According to the team, the operator’s brand will be incorporated into its digital and social media channels, email newsletter and broadcasts.

This arrangement is a good opportunity for Betfred considering the Golden Knights’ popularity. They were the most successful expansion franchise in professional sports history in 2017-2018 and celebrated their fifth season in 2021-2022.

The Knights Welcomed Betfred into the Silver State

The president of the Vegas Golden Knights, Kerry Bubolz, commented on the agreement. He congratulated Betfred on its foray into Nevada, welcoming the operator into the state. Bobolz said that the NHL franchise is proud to have the global gambling powerhouse as its official sports betting partner.

Betfred’s US business is Vegas Born just like we are, and we’re excited to help them launch their brand in Nevada.

Kerry Bubolz, president, Vegas Golden Knights

Bryan Bennett, Betfred Sportsbook’s chief operation officer, also shared his thoughts. He noted that the company’s US branch is based in Las Vegas, making the launch in Nevada very exciting.

The company is now preparing to open the first sportsbook in its hometown in collaboration with Mohegan Casino Las Vegas. As preparations continue, Betfred is delighted to join forces with the Golden Knights

We look forward to growing our business here and supporting Las Vegas hockey in the process.

Bryan Bennett, COO, Betfred Sportsbook

Speaking about Betfred’s expansion into the state, the operator was recommended for a sports betting license a few days ago, facilitating its Nevada entry.

In other news, a month ago, Betfred also penned a multi-year partnership agreement with Loudoun United FC, an American soccer club based in Virginia.

The meeting is set to take place at the Valparaíso Sporting Club track in Viña del Mar, Chile. This agreement builds on the provider’s existing agreement with the track.

The event in question is scheduled for February 5. As per the deal, the undercard handicap race before the main Clásico El Derby will bear SIS’ name, thus attesting to the company’s commitment to LATAM sports.

The Valparaisío Sporting Club is the oldest track in the region and was founded in 1882. It has long partnered with SIS, which has supported the club with its betting services.

The El Derby day festival itself is a huge event with 30 races, inspired by the English Derby. It represents Chile’s main Group One classic race and is the third and final race of the National Triple Crown. Each year, the major sporting event is attended by no fewer than 150,000 people.

The agreement, SIS noted, follows on its other recent LATAM-oriented sponsorships. Before agreeing to sponsor the handicap race ahead of the Clásico El Derby, SIS also penned similar agreements with the Hipódromo Maroñas in Uruguay and Hipódromo Palermo in Argentina.

The supplier reaffirmed its commitment to local sports and its intentions to continue nurturing the LATAM racing sector in particular.

An Important Day for Chilean Racing

Michele Fischer, vice president of SIS Content Services, commented on the sponsorship agreement. She noted that the El Derby Day is something truly special for people in Chile, which is why SIS is happy to be a part of it.

Fischer noted that her company has a flourishing relationship with Valparaiso Sporting Club and promised that it will continue to support sports in the LATAM region.

We have a well-established partnership with Valparaiso Sporting Club. Our commitment to racing in Latin America is well-documented and it is a region that continues to be of strategic importance for our business.

Michele Fischer, vice president, SIS Content Services

Meanwhile, Valparaiso Sporting Club’s commercial manager, Hernán Robles said that the El Derby is an event that brings the Chilean racing community together. It is also a good occasion for the club to find new partners and make the racing event even better.

SIS is a highly valued partner and we are delighted to have their support to make the day special for all our stakeholders.

Hernán Robles, commercial manager, Valparaiso Sporting Club

SIS continues to expand its LATAM presence with strategic deals. Currently, the company delivers more than 35,000 live horse racing events each year, including some of the best races in Argentina, Chile, Mexico and Uruguay.