OLG incurs (some) wrath from Auditor General, and CGA responds to article on VIP programs
Also, Rivalry enjoyed a rather robust third quarter and an unprecedented profitable month, and The Gaming News Canada Show goes remote today from PointsBet Canada's new HQ.
In this issue:
Twitter Spaces goes remote
Some audit angst for OLG
CGA responds to Toronto Star article
Another good-news quarter for Rivalry
Putting forward the FIFA foot(y)
The Company Line - Interblock Luxury Gaming Products
Gaming News Canada Show goes on the road
Welcome to the final month of 2022 (oh yes, 24 days remaining for you Christmas shoppers among our loyal legion of subscribers).
When we join you on the Twitter Spaces this afternoon (2 ET first pitch), we will do so from the new digs of PointsBet Canada on the west side of downtown T.O. Yours truly was among a group of media types given a tour of the PB space last night in advance of this afternoon’s official opening with attending dignitaries, special guests and perhaps a mascot or two.
PointsBet has hired more than 50 employees for its Canadian operations since opening about 18 months ago, tapping into a talent pool from the technology and innovation schools and communities across the province - and especially in Toronto and Waterloo.
"Our mission since the very beginning has been to build a Canadian sportsbook, with Canadian employees, for the Canadian market," said Scott Vanderwel, Chief Executive Officer of PointsBet Canada. "We believe that Ontario has the talent and workforce that can help us be at the forefront of iGaming in Canada."
We’ll attempt drag Vanderwel and Nic Sulsky over to our . . . ahem . . . remote studio for at least a few minutes, and we’ll also try to grab someone from the Room 4-4-2 soccer show to weigh in on Canada’s performance at World Cup Qatar 2022 following its final game against Morocco this morning (10 a.m. first touch of the ball).
ICYMI, this week’s Gaming News Canada Show podcast featuring Kris Abbott, Paul Burns, Amanda Brewer and Will Hill is a darn fine and worthwhile listen.
Auditor General’s audit angst includes OLG
Bonnie Lysyk, the Auditor General of Ontario, delivered her office’s Annual Report on Tuesday morning. Said report included some scrutiny of the Ontario Lottery and Gaming Corporation, and we’ve grabbed a few. . er. . . highlights from the 25 recommendations made by the AG:
The OLG has dropped its projected annual gaming revenue from $6.4 million to $5.4 billion by 2024/25, meaning profits are likely to drop by almost $320 million a year. Lysyk points to a failure by the Corporation to hold private casino operators to their contractual obligations as the main reason for that loss in revenue;
Money laundering continues to be a major concern in the province’s casinos, the AG stated, because the OLG and operators “do not have effective processes to present money laundering in casinos”. Robert Benzie, The Toronto Star’s Queen’s Park bureau chief, wrote yesterday about the Auditor General’s office sending in undercover agents to test money laundering safeguards at casinos.
The AGCO isn’t ensuring the integrity of slot machines by inspecting for the standard of 85 per cent payout over the life of the machine, or that the machines are “appropriately monitored”. OLG doesn’t perform that work either, the report stated.
The OLG can be better when it comes to focusing on its core objectives, including a stronger responsible gambling program (an interesting summation given that OLG’s PlaySmart program has been lauded by the industry, here at home and internationally).
The Corp was given the Auditor General’s report in advance and included in its response yesterday:
“The Ontario Lottery and Gaming Corporation (OLG) thanks the Auditor General and her team for this comprehensive value-for-money audit report. OLG will continue to work with service providers, vendors and the Alcohol and Gaming Commission of Ontario to implement the Auditor General’s recommendations as we continue to drive the growth of our business.”
Included in the Annual Report is a breakdown of OLG’s business, including the below infographic with revenues.
CGA responds to Toronto Star article on gambling VIP programs
In case you were participating in the Thanksgiving feasts south of the border last weekend and/or your life is being consumed by the FIFA World Cup right now, your congenial correspondent points you to an article from the Toronto Star’s Christine Dobby which appeared online last Friday and in the Business section of the Sunday Star. The Star business reporter looked at gambling VIP programs after hearing/reading allegations that two regulated Ontario operators are “knowingly encouraging high-frequency gamblers to make larger and more frequent bets”.
From Dobby’s article:
The (industry) insider said some VIP employees at the two operators are informally encouraged to do everything in their power to retain customers, including taking steps to dissuade high-spending players, internally referred to as “degenerates,” from using responsible gambling tools to bar themselves from a company’s online sites and apps — also known as self-excluding.
The article also points out that Ontario operators regulated and licensed by the AGCO and iGaming Ontario, have hired staff around VIP programs since the market opened in early April.
Canadian Gaming Association president/CEO Paul Burns and AGCO spokesperson Ray Kahnert were both quoted in the article. The CGA also came out Monday with a statement in response to the article, including:
The article didn’t name the source or the operators facing these allegations. There’s no mention if the operator(s) in question is licensed, unlicensed, or transitioning from grey to licensed.
It’s also problematic that the source didn’t alert the AGCO, which is the appropriate step to take. The AGCO would have launched an investigation and there would be clarity and transparency in the outcome.
Making unsubstantiated claims via comparisons to foreign jurisdictions and unnamed sources is discouraging, as is tarring the industry in Ontario with such a broad brush. Ontario’s launch of a regulated iGaming market provides greater consumer protection, accountability, and oversight over what existed before: decades of unregulated grey market activity where Ontarians gambled billions annually. The Canadian Gaming Association will always advocate for regulation.
We made the rounds with some industry veterans for their thoughts on VIP programs. It was mentioned that there are VIP players who will threaten to cancel their accounts as leverage for a better deal (the gambler’s version of getting a better cellphone plan). While ignoring signs of a problem with a customer in search of more $$$ goes well beyond the pale, the gambling industry certainly isn’t flying solo when it comes to enticing consumers to spend more money.
Another rosy round of results for Rivalry
In case you missed it in our Tuesday dispatch, Toronto-based Rivalry delivered its third-quarter results this week, including:
Record betting handle of $70.3 million in Q3 2022, up 203% year-over-year, and 83% quarter-over-quarter.
Record revenue of $7.1 million in Q3 2022, up 93% year-over-year, and 35% quarter-over-quarter.
Gross profit of $2.1 million in Q3 2022, an increase of 263% year-over-year and consistent with Q2 2022.
Momentum has continued into the fourth quarter with a single-month record betting handle of $37.2 million and revenue of $4.5 million in October 2022, achieving the first profitable month in the Company’s history.
Also, from Jake Evans’ piece in iGaming Next on the results:
https://infogram.com/1pkr2n0l3vqdl1b9y9p162zgxys5l7r02q
Rivalry has expanded its business with launches in Ontario and Australia this year. Asked about the company’s two new markets during an investors call Tuesday, CEO Steven Salz said “we’re going to nurture the esports betting market in those places”, and added that 10 per cent of handle in Q3 was on traditional sports wagering.
Gaming News Canada reached out to Rivalry for further comment on the company’s performance in Ontario so far, and we received this statement from Salz:
"We're encouraged by the growth we're seeing in Ontario with respect to esports and traditional sports betting. We are seeing a healthy mixture of interest in both segments in the market that we anticipate will continue to grow, with esports representing the majority of our betting handle.
While esports will remain our priority in Ontario and globally, we are seeing a lot of value in the cross-sell opportunities between the two categories, particularly with the NFL, and now looking ahead toward the World Cup as a universally-watched sporting event that we're well positioned to capitalize on. As the esports calendar winds down throughout the end of the year, we expect traditional sports to represent a more meaningful share of betting handle in Ontario."
Putting forward the FIFA foot(y)
Those nil-nil draws so far in Qatar are biting Bet365 in the digital wallet, wrote Geoff Zochodne for Covers.
Zochodne also reported on the mixed handling of Cristiano Ronaldo’s near goal in Portugal’s win over Uruguay by sportsbooks.
SBC’s Erin-Marie Gallagher interviewed an Abios account manager about the ties that bind esoccer and the World Cup.
The Belgian Lottery has nixed sports betting advertising for the remainder of the tournament.
A streamer who goes by the handle Trainwreckstv has been on a rather loverly roll when it comes to putting down some dineros on the tournament.
From the Off The Beaten Path Dept. Sportingpedia’s Paul Kemp calculated the market value of each World Cup participant.
The Company Line
We begin the final month of 2023 by shining a TCL lamp over Canadian Gaming Association member Interblock Luxury Gaming Products.
Birthdate: 1989
Home Base: Las Vegas, with Langley, B.C. as the Canadian headquarters.
Founder: Joc Pececnik.
Raison D’Etre: Interblock is a global developer and supplier of luxury electronic table products.
If you’d like to have your company featured in this section to profile the players in the Canadian gaming space, please drop us a note at steve@theparleh.com.
On the Home Front
Congrats again to Paul Burns, who received the Compliance Lifetime Achievement Special Award from VIXIO Gambling Compliance at its annual awards ceremony in London last night. You can find the entire list of winners on VIXIO’s Twitter channel.
OLG communications captain Tony Bitonti passed along a few notes to your humble chronicler yesterday. Thanks to a Thanksgiving feast of sporting events last week, and the World Cup, ProLine enjoyed its best seven days since launching. Also, some good/bad news for bettors on Canada’s 4-1 loss to Croatia last Sunday. . . . 57 per cent of ProLine players liked the Canucks to win while 55 per cent took the over on the 2.5 goals.
From the ICYMI files, the Mohawk Council of Kahnawake has launched a constitutional challenge against the Ontario government’s regulated gaming program.
A University of Guelph professor is calling on all stakeholders to do more around problem gambling.
The CBC’s Geoff Dixon spoke with a few folks about the connection - like it or not - between hockey and sports betting in the true north strong and free.
After getting the green light from iGaming Ontario, Bet99 has joined the International Betting Integrity Association.
Playtime Casino, which will employ 140 in the Ontario community of Wasaga Beach opened its doors last week.
Robyn McNeil at Play Canada has the deets on the opening of the ACE Airport Casino in Calgary.
Mark Keast, at CDC Gaming Reports, wrote about the slow road to retail sports wagering in Saskatchewan.
OLG, through its ongoing relationship with Bede Gaming, is expanding its payments program.
Some news of the sports business type: Tim Hortons is stepping aside as title sponsor of the Brier after 2023, ending an 18-year run with the Canadian men’s curling championship.
Finally, with apologies to the late, legendary comedian Rodney Dangerfield, Cape Breton Screaming Eagles fans went to a hockey game and an information picket broke out.
Let’s Get Together
Gaming Innovation Group has signed an agreement to work with a to-be-named-later land-based operator in Ontari-ari-ari-o.
WagerWire is announcing this morning a partnership with sports betting platform biz Wagr around community building and user experience.
A deal with Churchill Downs announced Tuesday means that pari-mutuel wagering is coming to DraftKings. Geoff Zochodne explained the recent attraction of the sport of kings to sportsbooks.
Sightline Payments and Resorts World Las Vegas announced yesterday a next-generation cashless payments partnership.
EGR Global had first dibs at the start of the week on Genius Sports getting together with Superbet on a player engagement initiative.
Evoplay is continuing to grow its business in Italy through a new partnership with a domestic igaming operator.
A class at New York University is lending Caesars a hand with its responsible gambling message.
U.S. Integrity and the NCAA Pac-12 have renewed their partnership.
Light & Wonder and Gift & Go have put their Jane Hancock on a long-term extension of their partnership.
Parleh props to PENN Entertainment on expanding its STEM scholarship program with Historically Black Colleges and Universities to double the number of schools participating.
Former Colombian soccer star and current broadcaster Nicole Regnier has joined Betsson as a brand ambassador.
Greco is providing its gameplay risk engine to Resorts Digital Gaming in Atlantic City.
Gaming and sports betting software supplier NSoft is the latest partner of Sportradar’s Integrity Exchange program.
Lady Luck Games is taking its products to Mexico through an agreement with Logrand Entertainment Group.
Payments business Paysafe will be lending a hand to Virgin Voyages.
Matters of M&A
Real Luck Group is getting into the business of B2B by acquiring an igaming platform that’s focused on the Asian market.
Glitnor Group’s acquisition of KaFe Rocks is no longer happening.
Quarter(s) Pole
Q3 was very, very good to Polish sportsbook STS Group.
Gross gambling yield in Great Britain saw a slight YOY dip in the second quarter 2022-23.
States Side Stories
Katherine Sayre wrote in the Wall Street Journal yesterday on the complicated relationship between sportsbook operators and universities.
Heather Fletcher at Bonus.com reported on a bill being introduced in the state of New York to take action against bonuses and inducements by operators, apparently motivated by the New York Times series on the U.S. sports betting industry last week.
The American Gaming Association released its latest report this week, estimating that $500 billion annually is being spent by Americans on “illegal and unregulated sportsbooks, iGaming websites and so-called ‘skill games’ ”. That’s an increase of $200 billion a year from what the AGA claimed at the Global Gaming Expo in October is being spent on non-regulated businesses.
When someone with impressive credentials calls the rolling out of sports betting across the U.S. of A. a “shitshow”, we’re in full-on EF Hutton mode.
We’re going to revisit next week a report from Sports Innovation Lab that legalization of sports betting isn’t nearly enough to ensure a sustainable industry south of the border.
Caesars has been fined $27k by gambling regulators in New Jersey for refusing to pay a customer who should have cashed in on a bet from a KHL game last season.
Hey, there was no turkey coma from sports bettors in Maryland on the opening weekend of legal wagering:
Reaction from last week’s New York Times investigation into the U.S. sports betting biz continues, including this from Kinectify.
This column from Ken Adams of CDC Gaming Reports on the Times’ series is also a good read.
We’re only one week into legal sports betting in Maryland, and Geoff Zochodne reported that regulators are hard at work to approve the next wave of operators including Bally Bet and WynnBET.
The Massachusetts Gaming Commission accepted a late retail application from MGM.
U.S. Davis Cup coaches Mardy Fish and Bob Bryan have each been fined $10,000 for promoting a sports betting operator on their social media channels.
Speaking of Maryland, Sports Handle’s Bennett Conlin interviewed responsible gambling experts on their concerns about legal online wagering.
Former Texas governor Rick Perry is going to bat for legal sports betting in the Lone Star State on behalf of the Cowboys, Stars, Mavericks and others.
Also in Texas, the long arm of the casino lobby is headed to Austin.
Kaitlin Miller of WZTV Nashville profiled a pair of local sports bettors who have parlayed pickleball, algorithms and data into full-time gigs.
Speaking of profiles, Sports Handle’s Chris Altruda keyboarded on the life and times of sports bettor, and Betr investor, ‘Million Dollar Marco’.
Owen Poindexter of Front Office Sports gave us the latest on the influx of sports teams and events to Vegas.
Speaking of Vegas, there’s no economic slowdown when it comes to spending at casinos there.
Anytime you put bespoke and betting into a headline, we’re darn well going to flag it with our readers.
Online gambling revenue in Michigan hit new heights in October.
The sports betting handle in New Hampshire exceeded $91 million in the same month.
Across the Pond
Included in the European Gaming and Betting Association’s 2021 Sustainability Report is the below graphic showing the distribution of more than $800 million from the association’s members to European sports entities.
A new YouGov survey on behalf of the Betting and Gaming Council revealed a majority of players believe mandatory limits will push them to the black market.
Gambling Insider took a peek at the impact of VIP action on gaming revenue in Singapore.
Good reading on GGBNews.com about the state of gambling in Macau.
The latest report from the UK Gambling Commission shows that online gaming is now at the same level as wagering at bricks-and-mortar establishments. A different angle on the Commission’s report here.
A columnist for The Guardian wrote about her own gambling addiction.
Aspire has been fined just over $285,000 (U.S.) by the Great Britain Gambling Commission for anti-money laundering failings.
One UK politician is sounding the bugle for a balanced approach to gambling reform.
The Times of London opines that the UK’s national health system shouldn’t solely be responsible for treating problem gambling.
Former grey market operators in the Netherlands are being investigated for not paying taxes, with more to follow.
A survey conducted in India found that 65 per cent of respondents equated fantasy sports with betting on sports.
Speaking of India, gaming operators doing business in the Asian country are facing a tax hike.
The Ukrainian gambling regulators have shut down yet another 1xBet-branded business.
The Swedish government has said “Nej” to a proposal to impose stricter advertising rules on gambling businesses.
777 has launched in Latin America with a bang.
We bring you the findings of a survey conducted with Australian sports fans around gambling, fast food and alcohol sponsorship in high-performance sport.
ComeOn Group has unveiled its streaming technology in the Danish market.
Dutch gambling operator Toto has been more than spanked via the fine route by its country’s regulators for marketing to young adults.
It’s been a busy week for the Dutch regulator, which has ordered licensed operators to stop offering cashback bonuses.
Malta’s gambling commission has put the kibosh on licences for three operators on non-payments of fees.
The list of illegal gambling websites put together by the Australian Communications and Media Authority has become a little longer.
Props to William HIll for this PSA on safer gambling:
Media Musings
Sports Handle’s Mike Seely wonders how the sports betting industry would get along without the Twitterverse.
The latest on L’Affaire ESPN/Sports betting:
Esports Reports
Waterloo Region is giving itself a digital pat on the back about its esports ecosystem.
FitGM will be conducting some workshops as part of its partnership with the International Esports Federation around the World Esports Championship Finals, which started today in Bali.
The Call of Duty gamer known as Scump is calling it a career.
One of the co-founders of Oddin.gg spoke about the continuing growth of esports.
The Brawl Stars World Finals, held this year at Disneyland Paris, were the mobile game’s most viewed esports event ever.
The South China Morning Post reported that the city of Hangzhou will provide $18.5 million annually for esports and video games.
Konami has unveiled a new efootball league featuring Italian clubs.
Excel Esports and mobile network operator EE have a new three-year agreement.
The Free Fire World Series didn’t capture the fancy of viewers this year.
Indian esports tournament platform Gamerji has raised $3 million.
Quick Hits
Fast Company’s Bruce Schoenfeld did the profile thing on Jason Robins and DraftKings.
Sportradar’s Patrick Mostboeck offered some advice to media companies entering the world of sports betting.
The U.S. National Library Medicine’s National Center for Biotechnology Information conducted a study of the link between cognitive distortions and gambling problems.
One man’s take that the gambling industry continues to fall well short of success when it comes to diversity and equity.
Vietnamese esports organization Saigon Buffalo and its League of Legends team have been acquired.
On CryptoNewsZ, Mark Peterson tapped the keyboard on the role of NFTs in creating a fairer wagering industry.
Low6 co-founder Jamie Mitchell joined Jesse Learmonth on the latest Betting Startups Podcast.
Fiona Simmons at Gamblingnews.com moderated a panel discussion on the challenge of merging compliance with technology along the road to regulation.
People on the Move
Great Canadian Entertainment has appointed Wayne Odegard as the General Manager of Pickering Casino Resort.
Casino industry veteran Dawn Reynolds Pettit is joining Rush Street Gaming as Senior Vice President of Human Resources.
Gillien Murray has left Fanatics as Senior Manager, Partnerships to join the NBA’s International Gaming Development group.
Dave Souza is the new Head of Communications at Luckbox - Real Luck Group.
Melissa Castillo joins GeoComply as Senior Marketing Manager - Gaming.
Altenar has appointed John Quaye as its new Chief Financial Officer.
Chris McGinnis has been promoted to CFO at Playtech.
Pascal D’Ambrosio has been hired by theScore as a Sportsbook Operations Analyst.
German lottery operator ZEAL Networks have appointed Rodja Schmitz-Hübsch as VP, Marketing.
Matt McGuire of The AML Shop has joined the advisory board of the Association of Certified Gaming Compliance Specialists.
Aaron Oster has joined Circa Sports as Media Relations/Marketing Manager.
Jennifer Bruno has joined Odds On Compliance as an Executive Assistant.
Conner Garzon has a new role at Penn Interactive as Player Experience Manager.
Classified (Jobs) Information
GeoComply is on a hiring spree with openings in Montreal, Toronto, Vancouver. . . . and Vietnam.
U.S. company BetKarma is searching for a Vice President, Marketing.
TheScore is seeking a Senior Technical Product Manager.
Playmaker Capital is looking for a Senior Financial Analyst.
The British Columbia Lottery Corporation is seeking a Senior Specialist, Content Marketing.
Rivalry has an opening for a Canada Esports Marketing Coordinator.
Xpoint is doing the hiring thing.
Bettingjobs.com has a client seeking to fill a North American Props and Specials Trader position.
Woodbine Entertainment is on the lookout for a Payment Card Analyst.
Atlantic Lottery is searching for a Community & Sponsorship Coordinator.
MLS is hiring a Senior Manager, Partnership Marketing.
Wanted by the International Olympic Committee: An Athlete Support & Partnership Manager.
The NBA has a job available in the Las Vegas area for Content Management - G League Ignite.
The Blue Jays of Toronto have an opening for a Coordinator, Production and Stadium Entertainment.
The Greater Toronto Hockey League is looking for a Director, Culture, Equity and Inclusion.
We’re a big fan of Canadian Tire’s Jumpstart Charities program, which is seeking a Regional Manager, GTA.
Coming soon to a screen/town near you
The Rutgers School of Social Work is hosting a virtual conversation about Gambling and Social Media on December 8.
iGaming Next is already accepting registrations and seeking sponsorships for NYC23.
Hashtag Sports is also getting out of the gate early with its 2023 conference in the Big Apple.
About the Numbers
Homestand’s Room 4-4-2 crew sets the table for today’s FIFA World Cup matches, including Canada’s Qatar 2022 finale against the Moroccans.
Follow us @GamingNewsCA on Twitter for the latest news on the sports betting and gaming industry.
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