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Gambling companies spend £1.2 billion marketing online, five times more than on television ads

George Miller

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Gambling companies spend £1.2 billion marketing online, five times more than on television ads
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New financial analysis from respected gambling industry specialists Regulus Partners has estimated that the total spend by gambling companies on marketing has gone up by 56% since 2014, and has now hit £1.5bn.

Most marketing activity is now on the internet, with companies spending five times more online than on television.The new figures, derived from audited accounts of the top publicly listed operators and other available financial data for private and offshore companies, indicate the areas where gambling companies spent the most money on marketing in 2017:

• Direct online internet marketing costs – £747m, almost half (48%) of total gambling marketing spend

• Advertising through marketing ‘affiliates’ – websites, tipsters and publications who earn commission for generating new business for the gambling companies – £301m, nearly one fifth (19%) of total expenditure

• TV gambling advertising – £234m, just 15% of total gambling marketing spend

• Social media – £149m, more than tripling over three years, and 10% of total gambling marketing spend

• Sponsorship – £60m, double the amount spent in 2014 (£30m).

80% of all gambling marketing spend is now online. There has been significant debate about the amount of advertising by bookmakers, bingo websites and virtual casinos on television, but these figures shine a light onto the huge amount of money being spent promoting gambling on the internet. Detailed marketing expenditure is considered commercially confidential, so obtaining definitive figures is not possible. But Regulus Partners have applied similar techniques used by city analysts to generate estimates which will have strong credibility within the gambling industry, and clearly indicate the relative extent of online marketing activity.

Marc Etches, CEO of GambleAware said:

“Children are growing up in a very different world than their parents. The Gambling Commission reports that 59% of 11-16 year olds have seen gambling advertisements on social media, compared to 66% on television. One in eight 11 to 16 year olds follow gambling companies on social media, and they are three times more likely to spend money on gambling. Of those who have ever played online gambling-style games, 24% follow gambling companies online.Compared to other potentially harmful activities, the rate of gambling in the past week among young people is higher than the rates of drinking alcohol, smoking cigarettes and taking illegal drugs. This underlines the need to treat gambling as a public health issue.

The Regulus analysis shows that much more attention needs to be payed to the extent of gambling-related marketing online, and that internet companies and social media platforms must share in the responsibility to protect children, and to generally raise awareness of the nature of gambling, associated risks of harm, and where to go for help and advice if it is needed.”

An infographic summarising the financial analysis is here!

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Industry News

888 Holdings Names Jonathan Mendelsohn as its New Chairman

Niji Narayan

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888 Holdings Names Jonathan Mendelsohn as its New Chairman
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Online gambling firm 888 Holdings has named British lobbyist Jonathan Mendelsohn as its next chairman, replacing former chief executive and current chair Brian Mattingley. Mendelsohn will take over the role after Mattingley’s departure at the next annual general meeting in May 2021.

The FTSE-250 firm appointed Mendelsohn as its non-executive director as well, 888 Holdings said, adding that he also joined the board’s remuneration and audit committee.

Mendelsohn is having more than 20 years of industry experience. He previously co-founded Oakvale Capital, which is a leading M&A and strategic advisory boutique focusing on the gaming, gambling and sports sectors.

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Industry News

Scout Gaming Enters Distribution Agreement with BtoBet

Niji Narayan

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Scout Gaming Enters Distribution Agreement with BtoBet
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Scout Gaming has entered into a distribution agreement with platform provider BtoBet. The deal allows BtoBet to provide Scout Gaming’s full product offering to its vast network of operators.

“We are pleased to add another strong distribution platform to our already broad network of partners. We had a successful co-operation with BtoBet and looking forward to expand it,” Joakim Renman, CCO of Scout Gaming, said.

“We are happy to add the market leading DFS and fantasy sports supplier to our product portfolio of games. We are experiencing an increasing demand for additional sport content and believe that Scout Gaming’s product fits that need in a pleasant way,” Sabrina Soldà, Chief Marketing Officer of BtoBet, said.

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Industry News

Stakelogic Revamps its Super Stake Feature

Niji Narayan

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Stakelogic Revamps its Super Stake Feature
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Online slot developer Stakelogic has revamped its Super Stake feature for delivering more excitement and bigger wins to players.

The Mega Super Stake allows players to place a side bet and enable an additional feature that delivers an insanely high payout once in every 35 spins or so.

With the standard Super Stake feature, the side bet allows players to double their bet but with Mega Super Stake their original bet is multiplied by 2.5 for not just big but mega win potential. Both Super Stake and Mega Super Stake can be built into a single slot game.

“Super Stake has been an absolute game-changer for us and our players so we wanted to build on this and deliver even more entertainment. Mega Super Stake takes the big win anticipation and potential to the next level, allowing players to land massive wins at a regular hit rate from a relatively small stake,” Stephan van den Oetelaar, CEO of Stakelogic, said.

“Mega Super Stake will debut with our next release, Lion Gold, and will then be built into other games where our developers and mathematicians feel it will add the most value,” he added.

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