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Are loot boxes really gambling-European authorities think so

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Are loot boxes really gambling-European authorities think so
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Over the recent months there has been quite some turmoil regarding various game developers and their provision of the “loot boxes”, a certain feature that lets the gamers win an in-game item or a game skin at a random chance. While loot boxes have been existing for years, only in September 2018 the controversy in opinions started to be seen. The main reason behind this was that previously game developers were limiting loot box items to various skins, things that do not really have an impact on the game result. In other words, if a player wanted to open a loot box in Counter-Strike GO, he might have received a weapon skin worth over $1,000. Obviously, such expensive in-game items could only be unlocked by opening a loot box, and could easily be exchanged for real money. Considering this, many people would regard such activity as a type of the esport betting or some sort of in-game built gambling, even this game skin would not be any better than a default one, it is just rare. In contrast, newer versions of the loot boxes would provide players with the features that can hardly be obtained without paying.

Are loot boxes gambling?
When thinking of gambling, casinos are the first thing that pop in our mind. Let us quickly analyse the difference and similarities shared by the concept of the loot box and casino. It is clear that when claiming a bonus from an online casino and playing some online slot machines or any other game, a player is expecting both the experience and the chance for winning. Quite a different case happens when opening a loot box. A gamer is not really expecting to get any sort of experience as the experience is provided by an actual game. Besides that, a gamer is certainly provided with a payout in a form of an item. In most of the cases, however, the value of the item will be significantly lower than the cost of opening a loot box.

While the technical aspects are quite different, the concept of a loot box does seem to remind us of good old games of chance. First of all, a player has absolutely no impact on the final outcome. Unlike poker, which is often considered a game of skill, both roulette players and loot box openers do not have any impact on the outcome of their bet. Secondly, the math behind loot boxes is rather simple. Imagine it costs 10 candies to place a bet, and you have a chance of winning anywhere between 1 and 1000 candies, would you consider such activity gambling? Most probably.

European authorities fight loot boxes
By now Dutch and Belgian Gambling Authorities have stated that some loot boxes are actually pure gambling and the game developers will be required to apply for the local gambling license in case they want to continue offering loot boxes. Even though games like PUBG, FIFA and DOTA 2 are not actually allowing the players to sell their in-game items and skins for money that can be cashed out, many gamers can still easily find an option to sell their items outside of the game. Most importantly, it became clear that such items carry a value. As a result, Dutch and Belgian authorities might exercise penalties against the game develops as of June 20th 2018 in case these develops fail to either remove the loot boxes or apply for the local regulation. Besides that, the authorities want to make this regulation adopted in other EU member states.

How about US?
Until now the US authorities have been considering loot boxes as a fully legal mechanism that is not related to gambling. However, the main debate in the US has been going on about how such games should be labelled and whether the gamer’s age should be restricted.

The final thought
While it is clear that loot boxes represent a great income stream for the game developers, we also have to understand that the whole experience of opening a loot box is built on excitement and a feeling of getting a large payout. However, unlike casinos that have age restrictions, loot boxes are targeting a vulnerable part of our population – the youngsters. In many cases EU regulations have been much more consumer-friendly than the ones from the US, and it certainly interesting to see how these regulations will develop in the remaining part of the 2018.

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SKS365 keeps investing in people: GROW People Management Program took the next level

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11 experienced people managers from the SKS365 group’s 4 locations gathered last week in Belgrade for the new GROW People Management Program. From 15 th to 19 th of April, through trainings, discussions, and social connections, people had the opportunity to further grow individually and as a team, while enjoying Belgrade’s city center and rivers.

Created in 2023 with the purpose of building foundation people management skills across the organization, GROW initiative evolved this year by including a new, advanced program for experienced people managers to further consolidate their skills and prepare for future opportunities.

Building and fostering connections, sharing experiences, and enjoying team building experiences – all these activities have been part of the GROWpmp agenda for the 11 people managers coming from Commercial, Product and Development, Finance, and Sportsbook departments of the group’s 4 locations – Malta, Italy, Austria, Serbia.

GROWpmp included a variety of topics that people managers in SKS365 recognized as the key areas for management development. Topics such as influence through communication, team effectiveness, DEI, through to presentation skills and business topics like understanding finance and management reporting, were delivered with the support of external professionals and internal experts, while designed and organized by the SKS365 People & Culture team.

 

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Kindred’s Share of Revenue from High-risk Players Shows Slight Increase

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Kindred Group plc’s (Kindred) share of revenue from high-risk players showed a slight increase to 3.2% (Q4 2023 3.1%) in the first quarter of 2024. Compared to the first quarter of 2023, the high-risk revenue share decreased marginally. The percentage of detected customers who exhibited improved behaviour after interventions came in at 87.1% (compared to 87.4% in Q4 2023 and 83.0% in Q1 2023). This sustained trajectory in the improvement effect after interventions, observed over an extended period, serves as a testament to the strong dedication and collective efforts throughout the company. It reflects Kindred’s ongoing commitment to fostering positive change within the industry.

“We continue to see our share of revenue from high-risk players fluctuate quarter to quarter, and we are working closely with all teams across the company to support customers towards a more sustainable gambling experience. However, it is encouraging to see that our Journey towards Zero data has steadily decreased since 2020. A similar trend can be seen across the healthier gambling behaviour effect after interventions. This tells us two things: our work is paying off, but we need to continue to push ourselves to propel a sustainable progression,” Alexander Westrell, Director of Communications at Kindred Group, said.

“It was very encouraging to witness the open and transparent discussions at the Sustainable Gambling Conference in London on 20 March, where those with lived experience shared their important stories. Also, it is evident that technology is moving forward, and will provide greater opportunities to detect and intervene in the future. We hope to see more regulators engage with the industry and with experts to secure a more sustainable industry for everyone,” Alexander Westrell added.

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PENN Entertainment Names Aaron LaBerge as Chief Technology Officer

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PENN Entertainment announced that Aaron LaBerge has been named Chief Technology Officer (CTO) effective July 1, 2024, subject to customary regulatory approvals. Mr. LaBerge will report directly to PENN CEO & President Jay Snowden.

In his new role, Mr. LaBerge will be responsible for driving the technology strategy and execution for PENN, while leading the multinational team of technologists and serving as the key business leader for the company’s Interactive division.

Mr. LaBerge spent more than 20 years at The Walt Disney Company, in two stints separated by five and a half years as a technology entrepreneur. He was most recently President & Chief Technology Officer for Disney Entertainment and ESPN where he was responsible for driving all technology and product development in support of The Walt Disney Company’s two media divisions. In that role, he helped set the vision and strategic leadership for how Disney uses technology to enable storytelling and innovation, drive its business, and create unparalleled consumer experiences with entertainment and sports content.

“We are thrilled to have someone of Aaron’s caliber join our PENN executive team. Having overseen a global organization of thousands of engineers, product developers, designers, technologists, and data scientists that created some of the largest scale and most successful media properties in the world, there is no better candidate to lead our Technology and Interactive division into its future. I know Aaron is looking forward to working with Todd George, our head of operations, and our entire Executive Team to continue growing our position as a leader in online gaming, sports betting, and digital sports media,” Mr. Snowden said.

“I’m excited to join another talented team at PENN Interactive and lead our technology strategy. PENN Entertainment is at the forefront of the fast-changing gaming and sports media industry. I plan to use my experience from Disney and ESPN to help make ESPN BET an essential piece of the sports fan experience. Together, we’ll push the limits and redefine how fans interact with sports and gaming,” Mr. LaBerge said.

Prior to his most recent role at the Walt Disney Company, Mr. LaBerge was Executive Vice President and Chief Technology Officer at ESPN from 2015 to 2018. At ESPN he played an instrumental role in the growth of ESPN’s consumer-facing digital media products and services – leading many of ESPN’s most ambitious and challenging projects and helping establish ESPN’s position as the leader in digital sports and innovative sports technology development. He was a key architect in the design, development, and engineering of ESPN’s state-of-the-art facilities in Bristol, CT; Los Angeles, CA; Charlotte, NC; and Austin, TX, as well as data centers and infrastructure that connect those facilities around the world, as well as the technology design and development to support the launch of the multi-platform SEC Network.

Between 2007 and 2012, LaBerge was co-founder and CEO of Fanzter, Inc. – a venture-funded consumer software and digital product development company. At Fanzter, he directed all day-to-day operations and led the development and launch of a variety of consumer-focused internet and mobile products, ground-breaking social and commerce technologies and more.

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