The Czech operator started the year on a high note, scoring win after win. The company won the auction to take over the UK lottery, closed out the acquisition of the Camelot Lottery Solutions Group, and set itself up for further expansion. Recent news suggests Allwyn plans to compete for control over the Irish national lottery, solidifying its hold over the region.

The Operator Enjoys Substantial Momentum

As the newest official operator of Britain’s National Lottery, Allwyn gains access to a substantial market well worth the initial investments. The company plans to modernize the country’s lottery offerings, prioritizing customer safety and superior player experiences powered by cutting-edge tech. To that end, Allwyn announced a partnership with Vodafone to facilitate a mobile-first approach and revitalize the lottery’s aging infrastructure.

The Czech group’s other recent victory came after acquiring its primary regional rival Camelot. The move hastened Allwyn’s entry into the UK market, giving the company a substantial head start in its revitalization efforts. Since Camelot LS Group is based in Chicago, the deal significantly simplifies a potential Allwyn foray into the US market.

Entering Ireland Would Be Another Significant Milestone

Despite the potential for overseas expansion, Allwyn’s eyes remain set on the Old Continent. According to a recent report by the Financial Times, the operator seeks to further grow its influence across the British Isles by purchasing a majority stake in the Irish national lottery. However, the process is shaping up to be anything but straightforward. 

The Irish lottery is owned by The Ontario Teachers’ Pension Plan (OTPP), the same entity which previously held Camelot. The OTPP has opted for an auction, hoping the promise of untapped value and over a decade of lottery license left would attract sufficient investor attention.

High-profile operators like The Lottery Corporation, Française des Jeux, International Game Technology, and Scientific Games have already expressed interest, meaning Allwyn has an uphill battle ahead if it wants to compete. However, the company’s substantial experience, solid financials, and industry-leading solutions may be sufficient to give it an edge over the competition.

Allwyn Has All It Takes to Compete with Industry Heavyweights

The operator is well-prepared for a rigorous bidding process, relying on substantial revenue growth to fuel such expansion efforts. Allwyn’s preliminary 2022 financial results revealed a 23.8% year-on-year revenue growth, reaching €3.22 billion ($3.51 billion). With EBITDA also rising 20.8% to €1.17 billion (1.27 billion), Allwyn is more than capable of competing with other industry heavyweights.

The group can pursue plenty of other avenues besides Irish expansion. Allwyn’s substantial experience in countries like Austria, Cyprus, the Czech Republic, Greece, and Italy has given the company insight into what it takes to succeed in diverse and challenging markets. With the Camelot acquisition complete, Allwyn can grasp the first available opportunity to expand its reach, whether in Ireland or overseas.

Franc Weerwind, the Dutch minister for legal protection, believes self-regulatory measures only have a limited effect on gambling advertising. The minister reasserted that further regulations are needed, saying that the government is still on track with its untargeted advertising ban.

From July 1, 2023, all untargeted ads will be in breach of local regulations. Within a few years, the Netherlands hopes to ban sponsorships in sports as well.

Unfortunately, gambling operators’ efforts to regulate their own ads have had limited effects. In addition, only members of certain trade associations commit to following these rules in the first place, Weerwind pointed out.

As a result, some companies continue to advertise without following any limits. Because of that, Weerwind thinks that self-regulation might not be sufficient. He provided the soccer World Cup as an example, noting that companies spent record amounts on advertising, despite being asked to advertise in moderation.

Weerwind believes that banning untargeted advertisements is a perfect solution. Italy, which adopted a full ban, accidentally channeled many players toward the black market. By contrast, the Netherlands hopes to shield only those who are vulnerable.

The minister said that certain advertising is necessary for people who wish to enjoy gambling in a safe and well-regulated manner. Because of that, banning untargeted ads seems like a good compromise.

The Netherlands Seeks to Get Advertising Under Control

The ban on untargeted gambling ads was originally expected to come into power on January 1 this year. However, public conversations regarding the law eventually pushed back the measure by a few months.

The Netherlands plans to gradually ban more forms of what is considered to be dangerous advertising, such as TV sponsorships and sports sponsorships. A ban on TV sponsorships is expected to come a year after the ban on untargeted ads has been implemented. Then, a year later, sports sponsorships will also be banned.

This arrangement will provide TV channels and sports teams with ample time to prepare for the eventual measure.

The Netherlands is a region known for its strict approach to gambling regulation. As a result, some people proposed a two-strikes-you-are-out model whereby an operator’s license will be suspended upon two violations. However, Weerwind opposed this model, saying that disproportionate punishments will not make licensees any less unruly.

According to Weerwind, overregulation can do more harm than good as it can undermine the relationship between regulators and operators and can channel players toward the black market.

NeoPollard Interactive (NPi), the joint venture of Toronto Stock Exchange (TSX)-listed Pollard Banknote Limited and Nasdaq-listed NeoGames S.A., announced that its operator partner, the Virginia Lottery, has become the first US lottery to operate an iLottery program completely based in the cloud.

The Cloud Solution Allows Better Service

The milestone industry achievement reached by the Virginia Lottery serves as a display of NeoPollard’s continuous commitment to enhancing its technology capabilities and meeting the evolving demands of its lottery partners and their players. NeoPollard is the first vendor in the iLottery space to operate its solution in the cloud.

Doug Pollard, co-chief executive officer of NPi, outlined the trust placed in NPi by the Virginia Lottery that allowed the completely cloud-based iLottery solution to be delivered, mindful of the business need “to continually refine” its offerings concurrent with emerging new trends in technology.

Delivering our iLottery solution through the cloud will enable us to better serve the Virginia Lottery and other iLottery programs that are powered by NPi.

Doug Pollard, co-CEO, NPi

Moti Malul, co-chief executive officer of NPi, pointed to the growth in traffic online due to “record-breaking jackpots over the last few years” as the main driver for iLottery programs to start looking for solutions that will enable them “to effectively respond to player purchase demand,” including solutions operating in the cloud.

By harnessing the enhanced capabilities that only cloud hosting provides, we can better support the growth of our lottery clients as they strive to meet and exceed player expectations.

Moti Malul, co-CEO, NPi

NPi’s cloud-based solutions include NeoDraw, the Central Gaming System (CGS) for draw games, NeoSphere, the player account management (PAM) and marketing system, and NeoPlay, the eInstant Remote Gaming Server (RGS) and the games hosted on it.

Migration to the Cloud Offers Scalability

Kelly T. Gee, executive director of the Virginia Lottery, outlined the lottery’s commitment “to providing a best-in-class experience” to its players, convinced of the benefits the cloud-based solution offered by NPi would bring to the lottery.

“Enhancing the scalability of our iLottery platform through the use of cloud technology demonstrates to our players that we place a priority on a seamless and reliable iLottery experience, all of which ultimately supports our mission to raise revenue for our public schools,” Gee commented.

The migration to cloud hosting will bring efficiencies related to the operation and maintenance of the Virginia Lottery’s iLottery program, allowing the lottery to instantly scale and accommodate large jackpot runs and volumes of promotions and campaigns.

With profits allocated solely for K-12 public education in the commonwealth since 1999, the Virginia Lottery has contributed more than $11 billion, as part of its commitment to giving back.

Earlier in the year, the parent companies behind the NPi joint venture signed a new operating agreement and amended the previous one to allow both partners to pursue future North American digital lottery opportunities in partnership, or independently.

The Swedish gambling regulator, the Spelinspektionen, announced that its board will continue to be comprised of seven members. The authority’s decision was greenlit by the current government, led by the Centre-Right Alliance coalition.

The Spelinspektionen provided a peek into its new board, showing that it will remain more or less the same as it has been until now. As announced by the regulator, from April 1, 2023, to March 31, 2024, its board will encompass the following members:

• Per Håkansson – senior advisor
• Håkan Wall – psychologist
• Madelaine Tunudd – councilor
• Andreas Prochazka – lawyer
• Fredrik Holmberg – advisor
• Doris Högne Rydheim – advisor and ex-chancellor
• Camilla Rosenberg – general director of the Swedish Gaming Authority

Wall will continue serving as the board’s lead psychologist. Meanwhile, Tunudd will be the Spelinspektionen’s councilor. Prochazka will continue serving as the authority’s lawyer, while Holmberg and Rydheim help the regulator as advisors.

The Spelinspektionen also noted that Håkansson will be chairing the board. This is notably the only change to the regulator’s board.

The authority also noted that Rosenberg will maintain her seat and will continue to lead the body for another year. She has headed the Spelinspektionen since 2017 when gambling was still illegal and the regulatory body was known as Lotteriinspektionen.

The seven members will report to Niklas Wykman, Sweden’s minister of financial markets.

The Legal Swedish Market Grows

Sweden continues to be an attractive market for gambling providers. A few days ago, two new B2B companies secured licenses in the Nordic country. First, Relax Gaming secured a business-to-business license, making a foray into the Northern country. As a result, the company can now legally offer its products in the local market.

A few days later, Play’n GO managed to successfully renew its supplier license in the country. The company has been operating in the local market for a while and will be able to continue doing business there. This was furthermore a very important development for Play’n GO, which was originally founded in Sweden.

Last year, the Spelinspektionen announced that only a few gamblers prefer to play with offshore companies. According to a study, only 8% of Swedes pick unlicensed companies. Six percent, the Spelinspektionen said, did so voluntarily while two percent failed to identify an illegal operator as such. Meanwhile, 55% of respondents said that they would always prefer playing with legal companies because of the safer gambling tools they provide to players.

Surging economic growth appears to be the theme across many popular Asian gambling destinations, as Macau also recorded a sharp rise in revenue. Its slow recovery after the COVID pandemic allowed other gambling hubs like Korea to flourish, challenging the Chinese territory’s previously undisputed regional monopoly.

The Region Suffered Tremendously during the Pandemic

Korea and Macau’s casino industries closely paralleled each other during the early pandemic, suffering tremendously from the border closings and lack of overseas visitors. Since 17 out of Korea’s 18 casinos only accepted foreigners, travel restrictions nearly destroyed them overnight. Macau fared slightly better, relying on a slow but steady flow of local bettors.

As the world started to recover, the tables began to turn. China’s Zero COVID policy significantly hindered recovery efforts, allowing other gambling destinations across Asia to pick up the slack and attract the influx of foreign bettors seeking to spend their money. Korean casinos happily obliged, fueling the ongoing stellar growth.

Asian Gambling Is on Its Way to a Full Recovery

Paradise Co, South Korea’s premier foreigner-only casino operator, reported triple-digit growth as revenue rose 130% over March 2022 to KRW42.7 billion ($32.5 million). These results continue the positive trend from the start of the year. The first three months of 2023 saw Paradise Co’s revenue soar 152% year-on-year, reaching KRW135.2 billion ($103 million). Table game profits performed even better, growing 252% to KRW1.26 trillion ($960 million).

The positive trend appears to hold across Asia, as Macau also enjoyed a meteoric rise in revenue. March GGR smashed projections soaring nearly 250% above the March 2022 results. Revenue for the first three months of the year hit MOP$34.6 billion ($4.29 billion), representing a 95% year-on-year increase. Packaged tours from China played a substantial role in the recovery, helping the region return to normal business operations.

The Resurgence Offers New Opportunities

Despite the similar resurgence in gaming revenue, South Korea and Macau’s gambling industries have little in common. Korean casinos maintain their focus on attracting foreign visitors and rely heavily on integration with the country’s thriving tourism sector. Meanwhile, over 90% of Macau’s tourists traditionally come from mainland China and Hong Kong, with foreigners viewed as a welcome addition.

While each approach is suited to the country’s strengths, the pandemic showed the value of diversification. Macau is trying to diversify its offerings beyond gambling to become a more family-friendly international destination. However, with other developed markets like Korea offering arguably better tourism experiences, the Chinese territory has to carefully consider where to invest its resources to keep up with the competition.

Parsec Capital Acquisitions, a special purpose acquisition company, has acquired a majority interest in Enteractive Media, a gaming affiliate company. Parsec Capital said that it plans to acquire the remaining Enteractive shares in the future, turning the company into a wholly-owned subsidiary.

The current deal follows a previous merger announcement and overrides the actual merger between Parsec and Enteractive. Following the current acquisition, Parsec is expected to change its name to GameChangerz Media.

The rebranded firm will apply for a Nasdaq listing in the near future. As announced by the two companies, the newly-formed entity will be “the parent company to a variety of innovative, industry-leading businesses and platforms supporting the gaming, gambling, and entertainment industries.”

Parsec Capital Changes Team Following the Acquisition

Parsec Capital reshuffled its team following the acquisition. A few directors, namely Alec Burger, Daniel Elwell, Edmund Moy, Patricia Trompeter and William Readdy, resigned from their positions. The company then welcomed Kelly Kellner and Terry Debono as directors. Paul Haber, meanwhile, will continue serving as the company’s chief financial officer and director.

In addition to his role as a director, Kellner was named as Parsec’s new chief executive officer. He addressed the completion of the recent acquisition, saying that his team is now prepared to proceed with its plans to create a disruptive new gaming company.

The completion of the acquisition means we are now ready to move forward with our vision of creating a game-changing media and gaming company that will create shareholder value through organic growth and strategic acquisitions.

Kelly Kellner, CEO, Parsec Capital Acquisitions

Parsec promised to provide further updates when it forms its international corporate strategy, management team and plans. The company will also release an announcement when it has more news about the timeline of its planned Nasdaq market listing.

Enteractive is a media company that focuses on the iGaming and sports betting sectors. The company leverages multiple platforms to engage countless viewers, which helps it monetize its super affiliate business model.

GameChangerz Media has existing agreements with some of the biggest and most influential suppliers within the industry. These include major companies, such as 888 Poker, Sportradar, Americas Cardroom, Active International, Boom Gaming, Betcris and Chaos Integrated, among others.

A lawmaker and a representative of the largest online sports betting company in Australia engaged in an intense discussion earlier this week. The topic was whether or not betting operators block gamblers that are continuously winning and involved the committee chair of the House of Representatives for Dunkley, Victoria, Peta Murphy, as well as Barni Evans, the CEO of SportsBet, a famous online sports betting company in the country, ABC News revealed.

Murphy asked SportsBet’s CEO if the company stops punters from being able to bet or access their betting accounts if such people are constantly using different promotions as well as other inducements to always win. The response of the company’s CEO was that on specific occasions, it may restrict access to a customer’s account and the options for betting or depositing.

Evans explained that such occasions would involve an individual that is demonstrating the use of insider information that can ultimately impact the market for other punters. On other occasions, he said, restricting accounts or depositing may be enforced when the company notices an individual betting on behalf of another person, something that’s not uncommon for many gambling operators.

Punters Can Be Restricted from Betting over Several Reasons

Additionally, Evans said that if a punter was in a cool-off period or has enforced a deposit limit, they would not be allowed to deposit. “If they are betting in highly illiquid markets that are volatile and have very high fluctuations, then we would reduce the amount of available stakes in those areas,” added the CEO.

“We will seek occasionally to limit some forms of transactions either bets or deposits in a number of circumstances.“

Barni Evans, CEO of SportsBet

Hearing Evans’ response, Murphy asked once again if a bettor’s account would be restricted if they are winning constantly without using insider information. She did not receive a response that greatly differed from the previous statement of SportsBet’s CEO. Continuing the discussion, Evans explained that the company doesn’t restrict users that are mathematically gifted. However, he said that clients that are using insider information cannot be allowed to bet as it would create an unfair market for the other bettors.

Murphy asked the same question once again trying to extract more information from Evans, but the CEO kept his position, saying that suspending of accounts happens when insider trading is observed. The chair of the House of Representatives explained that she wants to know if gambling companies suspend or restrict bettor’s accounts when they are constantly winning, outlining that she knows a person that has seen this happen. In the end, Murphy did not receive a yes or no answer and concluded that betting companies may stop people from betting whenever they are only winning.

Lottery giant Allwyn UK announced that it has finalized a new agreement with Vodafone. The new partnership will see the two companies upgrade the technological aspect of the UK National Lottery starting 2024.

Vodafone agreed to provide IoT connectivity and broadband, which will be delivered as a private secure network for all retail sites, the official announcement reads. In addition, Vodafone will host the lottery in its data centers in the United Kingdom. Finally, the provider will power Allwyn’s offices with WAN connectivity.

Vodafone also will help Allwyn upgrade the National Lottery to a mobile-first approach. This will make the lottery easier to deploy and more manageable. As a result, the changes will help retail shops boost their sales.

Furthermore, Allwyn and Vodafone found out that one in three Brits would like to see more digital technology in their local convenience store. According to recent research, local corner shops most commonly use websites (19%), social media (16%) and self-service checkouts (15%).

By comparison, only 12% of customers said that their local store has a mobile app or a loyalty program. Only 9%, on the other hand, were aware of online collection ordering services. The research demonstrated that there is an opportunity for retailers to leverage tech to enhance the shopping experience for their customers.

The Improvements Will Benefit Retailers as Well

Vodafone’s UK business director, Nick Gliddon, said that digital tech can play a big role in transforming a business and improving customer experience. He noted that, sadly, the lottery sector has not benefitted a lot from the recent developments in technology, at least as of yet. However, the current partnership will change that, Gliddon noted:

This partnership is a significant digital step forward that will help high street retailers keep up with changing consumer patterns, engaging new audiences and supporting Allwyn with reinvigorating the UK National Lottery so that it can continue to raise funds for good causes.

Nick Gliddon, UK business director, Vodafone

Robert Chvatal, Allwyn UK’s interim chief executive, also shared his thoughts on the matter. He said that Allwyn and Vodafone now have a “clearly defined scope and plan” to improve the National Lottery’s current technology offer.

Chvatal promised that the improvements will not only benefit customers but retailers as well. For example, Vodafone will assist Allwyn in providing digital skills training to retailers in Britain, in line with the operator’s commitment to supporting high-street retailers.

Physical retail is a critically important part of our plan to grow the National Lottery and this is just one of the many things we are committed to doing over the course of the Fourth License to better support our retail partners with the investment and equipment they need to grow their own businesses.

Robert Chvatal, interim CEO, Allwyn UK

A month ago, Allwyn closed the acquisition of Camelot LS Group.

In anticipation of the result of the White Paper from the review of the Gambling Act in the UK, a new study reveals how do gamblers feel about mandatory affordability checks. However, before the review is out, no one can confirm whether or not, strict mandatory checks would be required in the country, and if so, what would be the threshold for such checks.

Still, the sports betting community, Online Betting Guide (OLBG), released the results of a new study, revealing insights into how punters feel about affordability checks. Conducted by YouGov, the new probe engaged with 1,007 gamblers in the UK between February 23 and March 2, 2023.

Although there are no mandatory affordability requirements, in light of significant fines against companies allowing gamblers that cannot afford to wager, imposed by the gambling regulator in the UK, the Gambling Commission, some operators have decided to implement their own affordability thresholds. With that in mind, the new study uncovered that a majority of the bettors disagree with sharing sensitive financial documents for affordability checks.

60% Of Gamblers Not Happy with Providing Financial Data

Overall, nearly 60% of the participants in the new research admitted they have not been asked to provide financial documents for an affordability check but wouldn’t provide even if they are asked to do so. A breakdown of that result shows that 29.2% of the participants were not asked to provide such info but if asked, they would quit betting altogether.

Separately, 27.4% of the gamblers admitted they have not been asked for financial documents for an affordability check but if asked, they would not do so and select a different licensed gambling operator. What’s worrying is that 3.2% of the gamblers admitted they weren’t asked for such documents but if asked, they wouldn’t provide them and place a bet with an unlicensed operator.

In contrast, only 16.2% of the gamblers said that they were asked to provide financial documents and they have done so. Another 18.5% admitted that they haven’t been asked for documents related to affordability checks but if asked, would provide them.

A small percentage of the gamblers, or 3.9%, confirmed that they were asked about financial documents but refused to provide them and switched to another licensed operator. Only 0.8% of the gamblers that were asked to provide documents for financial checks decided to stop betting, while 0.9% said that they were asked but decided not to provide such information and switched to an unlicensed operator.

Betknowmore, a UK charity that helps people overcome problem gambling, has announced that it has joined the National Gambling Support Network (NGSN). This comes in the wake of GambleAware’s decision to increase funding for the network.

As announced by Betknowmore, the charity’s services, namely Peer Aid, New Beginnings and GOALS, have been commissioned by Gamble Aware to roll out nationally. As a result, BetKnowmore will be able to help more people over the next three years.

National Gambling Support Network, formerly known as the National Gambling Treatment Network, is designed to keep gambling harm rates low. The renewed network will have double the funding it previously had, allowing it to help many more people.

The network is comprised of a range of treatment charities that provide customers with the support they need without judging them. The expanded funding reflects GambleAware’s willingness to address the changing needs of those at risk of gambling harm in the United Kingdom.

In 2023, the program will adopt a regional first approach, creating improved referral routes for those suffering from gambling harm. The National Gambling Helpline will redirect people to their local treatment provider which will be responsible for finding the best treatment for their needs.

Betknowmore Is Delighted to Be a Part of the NGSN

In a statement, Anna Hargrave, GambleAware’s chief commissioning officer, said that GambleAware is delighted to unveil the new NGSN. She said that her team is also happy to increase its funding for the initiative.

Hargrave said that the NGSN is built on strong foundations and is supported by many exceptional regional providers. She added that the regional first approach will hopefully create new opportunities to work with other local services and agencies.

By broadening our reach at a local level and engaging with local authorities or the criminal justice sector, for example, means we can further help those experiencing harm from gambling.

Anna Hargrave, chief commissioning officer, GambleAware

Hargrave added that the involvement of people with lived experience will be a central part of how the new NGSN will functions.

Frankie Graham, Betknowmore’s founder and chief executive officer, shared his thoughts on joining the new NGSN. He called the launch “an important milestone” for supporting those who have been hurt by problem gambling. Because of that, his company is looking forward to contributing to the network.

Betknowmore UK is immensely proud to contribute to a national provision of work. The three key services that we will provide are demonstration that the voice of lived experience, embedded into peer and community support, has an essential part to play in gambling harms prevention and recovery.

Frankie Graham, founder & CEO, Betknowmore

Graham thanked everyone who has been a part of Betknowmore’s journey and said that only collective effort can mitigate the damages caused by gambling addiction.