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Online lottery adding more tax revenue than ever to states that allow it

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While many US states were disappointed to see their lottery-funded support decrease substantially during lockdown, those that had already legislated to allow the sale of online lottery tickets saw a small windfall, with Spinola Gaming CEO Ade Repcenko urging state legislators in the former category to fast-track the legislative process and let their lottery sector contribute fully to the economic recovery.

States with a legal framework to offer online lottery tickets saw an increase in their lottery-funded support during lockdown, while those that didn’t suffered a “gut punch”.

While the market may begin to normalise as states reopen, a growing number of governors are pausing the process, or reinstating previously lifted restrictions, sounding a warning out to retail operators and the state systems they support. Medical experts warn that as lockdowns ease and flu season returns these numbers could increase further, making renewed lockdowns and stay-at-home orders in parts of the US a possibility over the coming months. The lockdowns and retail establishment closures of the past few months have brought the limitations and flaws of the lottery retail system in some states to light, and with it, the realization of the need to assess current practices and identify new digital approaches that work long-term, and under any circumstance.

As Covid-19 continues to decimate the US economy, and society gets adjusted to a new-normal, the long-term effects on people and businesses are becoming more evident. The pandemic has been somewhat of a rollercoaster for state lotteries, and as states continue to release revenue data, mixed results can be seen over the past few months. Retail-only state lotteries saw a huge drop in revenue, with states such as Delaware reporting a $40 million loss in lottery ticket sales due to casino closures. Massachusetts saw a 53 percent drop in sales over 3 months, resulting in a 5 percent drop in total sales for the fiscal year. Virginia reported a $45 million drop in sales. Maryland reported a sales decline by as much as 30 percent and also had to postpone the launch of new scratch-off games. In Oregon, the lottery revenue drop resulted in a $22 million budget shortfall which forced them to lay off 47 employees and close over a dozen state parks.

Many states are reliant on lottery revenue in order to fill in budget gaps, while other states use the funds to run special education, environment and veteran aid programs.

“We got used to the lottery as a constant companion supporting the system. It was a gut punch to realize we don’t have the time to react.” Chris Havel, spokesman for the Oregon parks and rec department, told the Associated Press.

While lotteries limited by retail-only sales suffered, the online lottery route was one embraced by the states with the legal framework in place to do so. The Georgia Lottery CEO Gretchen Corbin remarked that sales dropped in March as lottery retailers were forced to close and customers were under pandemic lockdown. But their sales rebounded in the final quarter of the fiscal year, which the CEO attributes to their efforts to promote their online lottery offering, bringing revenues up to a record $1.24b profit over the past 12 months. The Pennsylvania Lottery saw sales drop 25 percent in March after about one-third of their lottery retailers were required to close with sales down $60 million when compared to the same period last year. They did however experience a surge in online sales with “players turning to the Lottery’s online games” during the lockdown, as confirmed by their spokesperson Ewa Dworakowski. Their executive director Drew Svitko also confirmed that “lottery is breaking records and has more players than ever before” with their average daily online lottery sales reaching $3 million during the pandemic, boosting their FY20 online lottery sales by about 24 percent ahead of estimate. The New Hampshire Lottery Commission saw online sales of e-instants increase by 92 percent, and draw-based purchases go up 39 percent between March 21 and April 25. “For a non-jackpot run month, and limited advertising, we had some impressive KPIs” said Kelley-Jaye Cleland, director of sales and product development.

Liz Siver, general manager at NeoPollard Interactive, which partners with many US lotteries that sell products online noted that “Across our network, key performance indicators have hit record-breaking levels as lottery players sought online options during this unprecedented time.”

In an interview with Betting USA, Jackpocket, a company which provides similar online lottery services, reported a marked increase in sales with saturation levels reaching record highs, “Jackpocket is actually seeing a significant increase in sales week over week. We’ve already witnessed a 14% increase in this Tuesday’s Mega Millions sales and anticipate this to continue.” said CEO Peter Sullivan.

“The figures from states with ilotteries active during the pandemic is strong evidence that digital is the way forward,” said Ade Repcenko, CEO of digital lottery software provider Spinola Gaming. “Digital transformation and ilottery are set to play a huge part in the US lottery sector over the coming years. It is important to learn from these past few months and prepare lottery businesses for long-term digital success.”

NeoPollard’s Liz Siver shared these thoughts, adding: “The impact of the Covid-19 pandemic resulted in a renewed focus on digital transformation strategies, particularly ilottery. There was no way to predict the current position that lotteries are in today, but this experience solidified the need to advance discussions around ilottery. Covid-19 has guaranteed that every strategic dialogue with a lottery today includes ilottery.”

With digital lottery solutions ready and available from suppliers like Spinola Gaming, the only barrier currently facing the digitization of the lottery industry is a regulative and legislative one, as most states do not have the legal framework in place to allow lotteries to move online. Last year, online lottery legislation was introduced in Connecticut, Hawaii, New Jersey, and Massachusetts – however none of the bills were able to get passed. Repcenko believes that the legislative process should be fast-tracked in order to safeguard lottery operators should society be faced with renewed nationwide lockdowns and restrictions and with it the possibility of state retail lottery ticket sales dropping yet again. “Unless these regulatory changes happen fast, the US market will lag behind the rest of the world, as LATAM, Africa, Asia and Australia all already possess the legal ability to sell online.”

Some states have indeed felt the pressing need to move online and turned to those with active ilottery, such as New Hampshire, for guidance, said Cleland. “We have spoken with some other states regarding how [we] approached our ilottery program. Given that Covid-19 could come back this fall, I imagine many states are determining how they can help their programs become quasi-pandemic proof to ensure they maintain revenues for good causes.”

With time of the essence for operators looking to move online to quickly recover from the impact of Covid-19, holistic lottery solutions like the ones offered by Spinola Gaming provide land-based operators with all the tools needed to make a timely switch to digital, while still maintaining their traditional retail operations through one seamless interface. The software allows operators to monitor all lottery ticket sales and track all online and offline purchases in real-time, complete with a myriad of marketing functions and analytics. While lockdowns across the US have hurt the lottery sector, state’s such as Georgia and Pennsylvania have proven that – with the right digital solution – operators can return to better than normal levels of sales, and bring a much needed boost to the social initiatives they support.

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EvenBet Gaming sharpens anti-fraud capabilities to combat growing rise of poker bots

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EvenBet Gaming sharpens anti-fraud capabilities to combat growing rise of poker bots
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Global developer commits to providing a transparent player experience amid growing trend

EvenBet Gaming, a leading developer of online gaming software and solutions, has reinforced its anti-fraud detection technology to combat the rise in AI-powered bots and align with stringent anti-money laundering (AML) policies.

The increase in machine-learning technology sophistication has resulted in AI bots becoming harder to identify within the global gaming industry, posing huge financial and reputational risks to operators and affecting the transparency of the player experience.

To combat this escalated risk, EvenBet has introduced rigorous measures that can pinpoint potential bots with up to 99% precision, including Fingerprint JS Pro technology, multiple anti-fraud verification processes, and behavioural analysis procedures.

This includes cutting-edge in-game player inspection during poker rounds, monitoring several factors such as hand strength, potential knowledge of opponents’ cards, session duration, location, and jackpot hunting or tournament endgame dragging. Each factor is then compared to normal player behaviour to calculate the likelihood of AI-powered bots in poker rooms.

EvenBet has also supplemented its registration process with further Know Your Customer (KYC) checks, implemented to tackle the 112% and 184% growth in identity theft and synthetic identities respectively. The leading developer utilises temporary email identification techniques and assesses potential email forwarding and re-login attempts to ascertain the risk of a new sign-up.

The improvement of existing technology and the addition of new measures analyses risk from the moment of registration and monitors behavioural factors throughout the player journey, demonstrating EvenBet’s dedication to eliminating AI bots, complying with rigid AML guidelines, and providing the optimal gaming experience.

Dmitry Starostenkov, CEO at EvenBet Gaming, said: “With the rapid development of artificial intelligence in the 21st century, it has never been more important to stay ahead of the curve with regards to anti-fraud processes.

“EvenBet continues to develop and implement the latest anti-fraud technology to ensure our platform remains a trusted industry leader providing an entirely transparent user experience.”

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Continent 8 Technologies Founder and CEO Michael Tobin Inducted into SBC Sports Betting Hall of Fame 2024

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Continent 8 Technologies Founder and CEO Michael Tobin Inducted into SBC Sports Betting Hall of Fame 2024
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Industry trailblazer recognized for his contributions to the sports betting industry at SBC Summit North America

Michael Tobin, Founder and CEO of Continent 8 Technologies, was honored at SBC Summit North America, when he was inducted into the prestigious SBC Sports Betting Hall of Fame 2024.

The SBC Sports Betting Hall of Fame acknowledges individuals who have demonstrated exceptional achievements and made significant strides in shaping the sports betting landscape.

Over the last 25 years, Michael has worked tirelessly towards his vision of driving innovation and fostering growth in the global gaming industry. Continent 8 began its journey by setting up a state-of-the-art data center near Montreal, later expanding into key iGaming hubs in Europe, including the Isle of Man, Malta and Gibraltar.

Once regulation permitted, this expansion continued into other regions, such as the United States, Asia, and Latin America. Michael’s deep-rooted relationships with customers, partners, regulators, and suppliers have been crucial in fueling global development, progress and success within the constantly evolving iGaming and online sports betting industry.

Today, Continent 8 continues to be at the forefront of innovation, providing reliable managed hosting, connectivity, cloud, and cybersecurity services on a global tier-one network of over 100 locations across four continents. The company powers and protects the biggest names in the industry.

Commenting on this accolade, Michael Tobin, said: “It is truly an honor to be recognized by my peers, and it’s also a testament to the hard work and dedication of the entire Continent 8 team.

“I am incredibly proud of all that we have accomplished, the value we have added to the industry and the ways in which we have empowered our customers and partners to achieve success. The iGaming and online sports betting industry is constantly evolving, and I am excited to see how we can continue to embark on this journey to grow the market together.”

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MOUZ Crowned Back-To-Back ESL Pro League Champions After 3-0 Victory During Season 19 Grand Finals

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The 19th season of the ESL Pro League (EPL) has come to a spectacular conclusion in St. Julian’s, Malta, as MOUZ triumph during an action-packed Grand Final. Keeping the fans on the edge of their seats during three electrifying rounds, MOUZ maintained their position as EPL Champions and crushed Team Vitality 3 – 0.
Having been victorious during ESL Pro League Season 18 as well, MOUZ have been showing off their remarkable skill and determination throughout the tournament to win yet another EPL trophy. By laying claim to the coveted title, the German organization will take home $170,000 out of the $750,000 total prize pool and they have secured themselves a direct invite to the Intel® Extreme Masters (IEM) Cologne 2024 Group Stage.

Furthermore, the squad now adds their second win in the race to secure Intel® Grand Slam V in their attempt to become the first team victorious at three ESL Pro Tour (EPT) Masters and one EPT Championship tournament in a span of ten consecutive competitions. The team to do so will not only obtain the $1,000,000 cash prize and iconic gold bars, but also etch their name in Counter-Strike history.

EPL Season 19 saw a peak viewership of over 376,000*. Moreover, the final three days of the tournament were played out in front of an intimate live audience, with fans from 40 different countries gathering in Malta to experience the culmination of the action.

Group Stage

The 19th season of the world’s biggest Counter-Strike league took off on April 23, as the 32 competing teams were split up in four groups of eight during the Group Stage. The top four of each group would make their way into the Playoffs, with the group’s winners going directly to the Quarterfinals, the group’s runners-up making their way to the Round-of-12, and the remaining teams continuing their battle in the Round-of-16.

In the first week of the league season, the stage was set for the teams in Groups A and B as they clashed in an attempt to secure one of 16 spots in the Playoffs. In Group A, the Danish squad of Astralis and 3DMAX’ French roster went head-to-head in the upper-bracket, with the Danes eventually being the first to claim their spot in the final stage of the tournament without dropping a single map. FaZe Clan and Virtus.pro also secured their Playoffs tickets, winning the mid-bracket and lower-bracket finals respectively.

Meanwhile, the competition in Group B was heating up as well, with Team Vitality remaining unbeaten and topping their group. The MongolZ, BetBoom Team, and G2 Esports finished second to fourth, thereby also proceeding to the Playoffs.

During the second week of EPL Season 19, it was time for the teams in Groups C and D to show off their skill and prove their worth. In Group C, MOUZ had a successful run and came out on top unbeaten, with Team Liquid claiming the second place. GamerLegion also managed to advance to the Playoffs via the mid-bracket, and so did Monte via the lower-bracket.

In Group D the battle was also on with many close rounds being played out. Eventually however, Complexity was the first to prevail, with Natus Vincere, BIG, and FlyQuest completing the top four and claiming the final Playoffs spots.

Playoffs

The Playoffs took place from May 7-12 and saw the top 16 teams compete in a single elimination bracket for a spot in the Grand Final. By the end of the second day there were just eight teams remaining, including EPL Season 17 winners FaZe Clan and IEM Cologne 2023 Champions G2 Esports. Despite an impressive run from both these teams, their journeys were cut short in the Quarterfinals by Team Vitality and reigning EPL Champions MOUZ respectively.

The Semifinals saw Astralis pitted against Team Vitality, and MOUZ pitted against Complexity in the latter team’s first-ever EPL Semifinal appearance. In an impressive display of resilience when tensions were at their highest, both Team Vitality and MOUZ managed to reverse sweep their opponents to secure their well-deserved spots in the Grand Final.

Team Vitality put on an especially notable performance against Astralis in the Semifinals, winning through overtime in the second game and using their newfound momentum to secure the game 3 win.

Before Team Vitality and MOUZ continued their journey into the Grand Final for the moment of truth, however, it was the time for broadcast talents Chad “SPUNJ” Burchill and Janko “YNk” Paunović to show if they, too, have what it takes during the Grand Final of the Qiddiya 1v1 tournament. Following 20 fast-paced rounds, YNk came out on top with a score of 13-7. Pitting all ESL Pro League broadcast talent against each other over the course of the three-week-long season, the Qiddiya 1v1 tournament provided fans tuning in during the live broadcast with an additional unique and exhilarating competition.

Grand Final

Reigning EPL Champions MOUZ started off the first game strong on Inferno, picking up momentum and reaching 9-3 at halftime with little resistance. Despite some good rounds in the second half, Team Vitality were unable to bring it back, and MOUZ ultimately claimed the win with a score of 13-9.

Game 2 started with an early 2-0 lead for Team Vitality, but MOUZ quickly shut that down, once again securing a 9-3 lead at halftime. Team Vitality’s resilience shone through with back-to-back clutches in rounds 14 and 15, but it was not enough to keep MOUZ from closing out the game 13-8.

At this point, MOUZ were unstoppable, and their dominance continued into game 3, dropping only two rounds in the first half, and three in the second. Despite Team Vitality’s Mathieu “ZywOo” Herbaut having his highest rated S-tier LAN performance, the French organization ultimately fell short and it was MOUZ who secured the Champions title in a triumphant finish for the second season in a row.

“Back-to-back, it feels amazing,” said Jimi “Jimpphat” Salo of MOUZ. “It means a lot. It’s been a long time since we won so it’s good to win a Tier 1 trophy again, especially with this team. It’s amazing that we won.”

With their well-deserved win, MOUZ take home the $170,000 grand prize, qualify for IEM Cologne later this year, and take one step closer to securing Intel® Grand Slam V.

Additionally, MOUZ’ Kamil “siuhy” Szkaradek was awarded the EPT DHL MVP award for his exceptional performance, and said: “We came into this tournament very fired up and the form that we showed here was amazing. I can only perform well with my teammates playing so good as well, so thank you very much to them.”

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