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Now & Near Future Concerns for the Betting Industry
The betting industry has certainly had its fair share of challenges so far in 2020. However, even with some pro sports leagues tentatively returning to the field after the coronavirus lockdown, the struggles are far from over.
Not only is there the potential for a second COVID-19 outbreak to shut everything down again, but UK bookmakers, especially the bigger bookies in the business, may be forced to deal with new regulation issues with the proposal of a mandatory levy.
Continual COVID-19 revenue challenges
To start, COVID-19 concerns are far from over. Like many businesses around the world, sportsbooks have yet to shake out of the profit-sucking clutches of the virus. Although football in England has resumed and other major professional sports leagues around the world are starting to test the waters to salvage the remainder of their seasons, bookies simply can no longer afford to put all their eggs in one basket and bet on football being their cash cow.
For instance, Ladbrokes football betting service is considered one of the staples of the industry, but even Ladbrokes has not yet fully returned to normal. Like so many other bookies, it placed more focus on the promotion of its virtual sports, eSports and casino offerings when traditional sports went on hiatus, and it is likely to continue to do so, even with the return of its big markets.
The reality remains, until the pandemic crisis is over, at any time traditional pro sports could be put on hold again or cancelled if another outbreak occurs. As such, while bookmakers are finding their new normal, they are unlikely to forget the other betting markets that helped them to draw in punters in the spring.
COVID-19 gambling behaviour challenges
The effects of the coronavirus on the iGaming industry has also brought other challenges, including its major impact on customers and their betting behaviours. Although the overall participation in gambling has decreased during the pandemic, data released by the UK Gambling Commission has revealed that some players have been spending more time and money gambling on certain products.
This data that has been collected reflects the first full month of lockdown in April. The data covers an estimated 80% of the entire online gambling market. It was taken from submissions of the biggest online operators and the YouGov COVID-19 tracker, which covers weekly representative samples of circa 2,000 UK adults.
In light of this data, the Gambling Commission has strengthened its guidance to operators, requiring them to be more vigilant with affordability checks, preventing reverse withdrawals and limits on bonus offers.
Regulation challenges – possible mandatory levy
Aside from the pandemic, regulation is also a concern for betting brands. The challenge that continues to plague the UK online gambling industry is the call for the government to impose tighter regulations to reduce gambling-related harm.
A recent report from the House of Lords says that smartphones and the exploitation of “soft-touch regulation” by gambling operators is contributing to a “perfect storm” of 24/7 addictive gambling behaviour.
Committee chairman Lord Grade said that the gambling industry’s regulations are lax and need to be replaced by a regime that prioritises the welfare of gamblers ahead of the industry making profits.
However, the CEO of GVC Holdings, Kenny Alexander, argues that GVC, which owns Ladbrokes Coral, has improved player protection policies by reducing the amount of money that GVC spends on advertising and increasing the amount of money spent on funding for problem gambling research.
According to Alexander, it is important for brands to make it clear that they have improved their player protection policies, because imposing heavier regulations won’t only damage the industry but “will ultimately drive customers into the hands of the unregulated black market.”
Still, many feel that the UK gambling industry is not doing enough to prevent gambling-related harm. In fact, a group of over 40 academics and addiction experts want a 1% mandatory levy imposed on the gambling industry, with the proceeds from this tax to be distributed through established independent bodies like the National Institute for Health Research and the UK Research and Innovation.
This mandatory levy, which was proposed last year (2019), would require the industry to increase the amount of funding they allocate to improve prevention, education and treatment services, instead of paying the current voluntary levy that is equal to 0.1% of their revenues.
According to The Guardian, last year, betting firms Bet365, William Hill, GVC, SkyBet and Flutter pledged to redirect £100 million of funds for tackling problem gambling. That said, these funds have not yet materialised. Moreover, last month (June 2020), the industry decided to change the direction of this funding at short notice. Instead of the money going to Action against Gambling Harms(AGH) where suitable recipients would be identified and issued grants, which was the original intention, all the funds will now be given to the GambleAware charity.
The trouble that experts have with betting firms being in charge of where the money goes is that it allows them to have too much influence on how the money is spent (e.g. giving it all to one organization of their choosing). This is why they feel the levy is needed.
From COVID-19 to the threat of an imposed levy, with all the various challenges the betting industry is facing, it does not seem as though it will be smooth sailing for bookies any time soon.
Latest News
7-Eleven selects Jackpot.com as their official lottery partner
Online Lottery Courier Service Jackpot.com Announces Exclusive Collaboration with 7-Eleven, Inc.
Jackpot.com will serve as the official lottery courier service of 7-Eleven, Inc., initially launching in Ohio and Massachusetts
Jackpot.com – the online lottery courier service that allows consumers to purchase official state lottery tickets on their phone, tablet, or computer – announced today an exclusive collaboration with 7-Eleven Inc., the largest convenience store chain in the world, to serve as their official lottery courier service.
As part of the collaboration, 7-Eleven customers in Ohio and Massachusetts will be able to sign up and play lottery games and scratchers on the Jackpot.com app or website. The program will initially be launched in over 600 7-Eleven and Speedway stores in Ohio and Massachusetts, with a special launch promotion that gives 7-Eleven customers a free lottery ticket on their first deposit by using promo code, “7Eleven”.
“We’re thrilled to work with 7-Eleven, the leading retailer of lottery tickets in the country,” said Akshay Khanna, CEO and co-founder of Jackpot.com. “Leveraging our technology and innovation, we can provide additional convenience for their customers, while adding an additional source of revenue. A true win-win relationship for all.”
By launching in Ohio and Massachusetts in 2023 and 2024, respectively, Jackpot.com aims at adding another avenue for player convenience with one of the most widely recognized brands in the convenience-retailing space. With a presence in Ohio, the nation’s seventh-largest lottery market, and Massachusetts, whose state lottery produced $1.2 billion in net profit for the Commonwealth during the 2024 fiscal year, Jackpot.com’s collaboration with 7-Eleven represents an added layer of accessibility for players.
Jackpot.com remains committed to responsible play and has significantly invested in protocols by allowing customers of legal age to set spend limits and limits on daily deposits, all while providing access to local and national responsible gambling resources, self-exclusion, self-suspension and automated notifications that offer help should problematic behavior be detected. Jackpot.com is also the only lottery courier service to launch with an iCap certification from the National Council on Problem Gambling.
To learn more, visit jackpot.com. First-time users can also download the official Jackpot.com Lottery App on the iOS or Android App Stores, where available.
eSports
The World Esports Summit 2024 Is Here!
The IESF World Esports Summit returns this December to Busan, South Korea. Hosted at the Busan Esports Arena (BRENA) from December 5-6, the Summit will bring together prominent figures from Esports, global brands, government officials, and sports executives for a deep dive into the current Esports trends, its rapid transformations, and future challenges.
This year’s theme, “Building Bridges, Not Barriers, Through the Power of Esports,” will highlight the role of Esports in uniting cultures, ideas, and industries. Under the slogan “We Empower Success,” the
Summit provides a great platform for Esports experts to engage in meaningful discussions and sessions, sharing their insights on trends and presenting forward-looking ideas for our industry.
The event, strategically timed at the close of the competitive season, presents a perfect environment for reflection on the year’s biggest events, industry shifts, and the next steps for Esports. Attendees can follow the expert’s perspectives on topics like:
- (R)Evolution in Esports
- East Meets West
- Esports Integrity: The Role of Referees
- The Rise of International Esports Competitions
- (In Korean) Korea’s Secret Sauce etc.
Also, featured at this year’s event are the IESF World Esports Training Camp and the World Esports Referee Academy.
These are very important IESF programs that are aimed at advancing the skills and professional standards of the next generation of Esports leaders.
Join us in Busan for two days designed to inspire, connect, and empower the international Esports community.
Registration for the World Esports Summit is free and open to all interested attendees.
To register, please complete our online registration form: iesf.formstack.com/forms/wes2024_participation_registration
See you in Busan!
eSports
Akhil Sarin CMO at Easygo named as key note at ICE Esports Conference
Clarion Gaming has confirmed that Akhil Sarin CMO at Easygo, the technology powerhouse behind the success of global brands Stake and Kick will headline the Esports & Games Conference (EGC) taking place on 21 January as part of the ICE Barcelona experience. As a key member of the executive team, Akhil Sarin has been instrumental in securing the high-profile partnerships that have accelerated Stake’s growth, including the Stake F1 team, UFC, Drake, and Premier League Everton FC.
Through these strategic alliances he has amplified Stake’s brand presence at the same time as creating unique, immersive player experiences, in the process setting new industry benchmarks.
Announcing the high profile speaker Will Harding, Head of Esports at Clarion Gaming said: “Securing Akhil Sarin as EGC key note at ICE Barcelona represents a remarkable opportunity for our attendees to gain invaluable insight into cutting-edge strategies in digital and influencer marketing .
“Akhil’s expertise with Stake and Kick.com embodies the forward-thinking, innovative approach that defines the digital marketing landscapes. His participation underscores the calibre of knowledge-sharing that we are committed to delivering at ICE and he is sure to both inspire our attendees and elevate their strategic perspective.”
Looking ahead to ICE Barcelona, Akhil Sarin stated: “Collaborating with Clarion Gaming at ICE Barcelona is an exciting opportunity to showcase Stake’s journey and continued focus on bold partnerships and creative marketing strategies that resonate with audiences.”
He added “The EGC is a vital platform for exchanging transformative ideas and shaping the future of gaming and entertainment. I look forward to discussing Stake’s vision and collaborating with industry leaders to inspire growth and innovation across the sector.”
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