Industry News

A stupid gamble on evil machines

Published

7 years ago

August 22, 2017

Reading Time: 4 minutes

The government’s failure to clamp down on fixed-odds betting terminals must be down to stupidity or corruption and I’m not sure which of those I hope it is.

Which is better? Idiots or crooks? It would make a good parlour game.

It’s possible that I’ve spent more time among sick gamblers than you have (and if that’s not the case, we probably know each other). But if you’ve popped into a friendly high street bookmaker’s any time in the last 10 years, to bet on the FA Cup final or get some change for the parking meter, then you’ll have seen a “FOBT”.

A FOBT is a sort of glorified fruit machine with a choice of games (roulette, virtual sport, novelties) and a massive possible loss rate. The biggest difference between the old fruities and these devices, waved through by the Blair government of 2001, is that you can lose £500 a minute on a FOBT.

And people do.

How many times, in the year ending September 2016, do you think somebody lost more than £1,000 on one of these machines?

Have a think. We aren’t talking about rich people, glitzy casinos or friends having a big night out. We’re talking about people on their own, playing the slots on regular, trafficky, local streets. Poor people. Bored people. Sometimes desperate, sometimes ill. Lonely old men. Women with their babies locked in the car outside. The average national wage is about £25,000. How many times, over a year, do you think £1,000 or more was lost in a single gambling session, on a local high street, in these circumstances?

No. You’re wrong.

It was 233,071 times.

I mean, for fuck’s sake.

Let me confess: I myself have, often, lost more than £1,000 in a single gambling session. But when I’m losing £500 a minute, this is what I’m getting:

A high-end Las Vegas casino has sent a limousine to collect me from the airport. I’ve got a complimentary hotel room with a view of the iconic Vegas Strip. I’ve got free meals, free cocktails and a cabana (a sort of shady little house with loungers and a drinks cabinet) by a luxurious swimming pool.

This doesn’t make me clever. It makes me a mug. This is what casinos give you if they think you can afford to lose the money. But your man down the Kilburn High Road, losing at the exact same rate because he’s depressed, lost, stuck, sad and has nowhere else to be, gets the square root of sod all. He gets monotony, shame and kicked out at 10pm.

This guy (or girl) hasn’t opted in consciously. They never meant to get involved for those hours or play for those sums. They didn’t join a casino, they wandered into the bookies: outlets once considered cheery and welcome on British high streets because betting on horses is traditional, fun and, to a great extent, social. But in 2001, a black hole was unrolled in the middle of them. FOBTs are demons, succubi, squatting between the chemist and the bus stop like a pile of heroin on a cheese trolley.

UK city dwellers complain that there are now dozens of bookies in their nearest shopping street where there used to be one. But most don’t know why that is.

It’s because the government capped the number of FOBTs at four per shop. But these things are free money to their owners. Punters lose and lose and lose. And when they disappear, or kill themselves, or their child is taken into care and they start self-medicating with drugs instead, someone else steps blindly up to feed the monster. So, if you’re only allowed four per shop, open more shops!

What optimistic fool, no doubt some well-meaning MP or civil servant, thought up that “four max” rule? Did you think you were smarter than the bookies, love? We’ve all been there. That’s the fast route to eating cat food out of the tin.

But the latest government move can’t be about optimism. Everyone was expecting the betting cap (or possible loss) on these machines to be slashed. Labour and the Lib Dems went into the election actively promising it; the Tories hadn’t yet committed, but John Whittingdale warned the Association of British Bookmakers: “I can’t say I would be surprised if there are quite radical measures produced… You should brace yourself.”

And then, last week, Philip Hammond decided there would actually be no curb at all – because, according to a Whitehall source in the Daily Mail, the attendant loss of tax revenues would be “financially crippling”.

Is this bent or just stupid? The shops pay 25% duty on FOBTs (it’s much cheaper for them than horseracing). In return, we get an expensive rise in crime, theft and embezzlement, family breakdown, costly court proceedings and criminal damage as the machines are often smashed up. Meanwhile, many FOBT addicts are on welfare, so 100% of the money they put into the machines goes out of the Treasury and 25% comes back. Well done everybody.

Let’s say it’s not bent. The lobbying and hospitality for MPs is massive and rising, but I’d hate to suggest any impropriety. So that suggests a moronic misunderstanding of the true maths in play.

The argument is not being had on moral grounds. If our government said they were libertarians, planning to decriminalise all drugs and abolish income tax alongside this invitation to go skint in 10 minutes at teatime in the shop next to Tesco, we could have an interesting debate. We could weigh up that freedom against the depression and suicide, the abandoned children and associated crime, and really challenge ourselves.

But they argue this situation is financially profitable for us, as a nation? They think we make money from it? Jesus. That’s their understanding of economics? As professional gamblers say about chumps: I’d like to be locked up with them.

The above article written by Victoria Coren Mitchell, first appeared on The Guardian.

Industry News

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

Published

20 hours ago

April 24, 2024

Peter Tolan

Reading Time: < 1 minute

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.

Industry News

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

Published

1 day ago

April 24, 2024

Niji Narayan

Reading Time: < 1 minute

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.

Industry News

PENN Entertainment Names Aaron LaBerge as Chief Technology Officer

Published

1 day ago

April 24, 2024

Niji Narayan

Reading Time: 2 minutes

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.