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Ireland’s charities and good causes losing out on as much as €43 million a year due to National Lottery’s license terms and operator’s commercial practices

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Ireland’s charities and good causes losing out on as much as €43 million a year due to National Lottery’s license terms and operator’s commercial practices
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  • National Lottery operator to benefit from as much as €306 million in unclaimed prizes over the 20-year term licence;
  • Unclaimed prizes, limited online performance, and increasing prize ratios are all key contributory factors in reduced Good Causes Funding;
  • Long-term sustainability and growth of Good Causes Funding are negatively affected by the current commercial strategy of Premier Lotteries Ireland (PLI);
  • Continuing lack of evidence that online lottery betting is significantly impacting the sales performance of the National Lottery and Good Causes Funding;
  • DCU economist Tony Foley: “Today’s research highlights that there are several key issues that present a risk to the long-term sustainability of this vital funding…”

A new research report by DCU economist Tony Foley on the sustainability of Good Causes Funding associated with the National Lottery, published earlier today Monday 11 November, has found that aspects of the current commercial strategy of the license holder are undermining the Fund’s long-term future and its contribution to voluntary and community organisations across Ireland.

The research, commissioned by the European Lotto Betting Association (eLBA), found that currently up to €43 million in Good Causes Funding is being lost every year because of the business approach being pursued by the licence holder, Premier Lotteries Ireland (PLI), who paid €405 million when awarded the contract in 2014 to operate the National Lottery for a 20 year term until 2034.

The report, “An Analysis of Good Causes Funding Associated with the National Lottery and Factors Impacting its Long-Term Sustainability”, identified the key factors, that are impacting Good Causes Funding currently and into the future, as being;

  1. The unprecedented level of unclaimed prizes returned to the operator

In 2018 alone, the unclaimed prizes total returned to PLI was €19 million. Under the terms of the National Lottery in the UK, for example, that same amount would have been ringfenced for contribution to the Good Causes Fund.

The report highlights that a continuation of the current strategic approach of the National Lottery, in prioritising the performance of the retail channel over urgent investment and action to address the underperforming digital channel, could see up to €14.74 million per annum or a total of €305.8 million in unclaimed prizes returned to PLI by 2034;

  1. A fall in Good Causes Funding contribution relative to National Lottery sales 

In 2009, Good Causes Funding as a percentage of National Lottery sales stood at 32.3%. In 2013, prior to the awarding of the new National Lottery licence to PLI, it was 30%; while by the end of 2018, it had fallen to 28.4%. A restoration to even the 2013 share of 30% would result in an extra €12.9 million contribution per annum to Good Causes Funding;

 

  1. Increasing National Lottery prizes as a share of sales

PLI’s licence requires that prizes as a share of sales must be a minimum of 50%. However, in 2018, it stood at 56.3%. This strategy, led by the operator, means that total gross gaming revenue, a key determinant in Good Causes Funding, is being undermined. Even a modest 2% reduction in prizes as a share of sales, back to 54%, would yield up to an additional €13 million annually for Good Causes Funding;

  1. Ongoing underperformance of the National Lottery digitally

The digital share of total National Lottery sales remains low, materially risking the long-term sustainability of Good Causes Funding. In 2018, online sales were only 7.7% of total sales, compared to a previously stated target at the start of the license of 15%. This also significantly under indexes the National Lottery in the UK, where online sales now stand at 25%, and the Paddy Power business, where 50% of global revenues are generated by its digital channels.

With the ongoing shift in consumer purchasing to digital platforms, the relatively poor performance of the National Lottery in this space is a clear and significant concern for its future and, consequently, Good Causes Funding.

The report also found that there is no evidence that a ban on lottery-type betting, such as that offered by retail bookmakers or dedicated online lottery betting providers like Lottoland, would significantly “boost the performance of the Good Causes Funding” or would result in these consumers switching their spending to National Lottery products. In fact, the findings show that between 2014 and 2018, the period when Lottoland and other licensed online lottery betting operators entered the market, overall National Lottery sales increased by €117.3m or 17.1%, with Good Causes Funding increasing by €34m or 17.5%. Also, National Lottery sales as a % of overall bookmaker’s turnover in the Irish market increased from 24.2% in 2015 to 27.9% in 2018.

Comment by DCU economist Tony Foley:

Over the last thirty years, the National Lottery and its contribution to Good Causes Funding has been an important source of financial support to community and voluntary organisations in every parish, constituency and county in Ireland. Today’s research highlights that there are several key issues that present a risk to the long-term sustainability of this vital funding.

“The perceived threat of online lottery betting to Good Causes Funding is in fact minimal in today’s terms, as indicated by the market share held by the licensed operators like Lottoland, especially in light of the robust sales performance of the National Lottery.

“The reality is that issues such as the reduction in Good Causes Funding as a percentage of National Lottery sales in recent years, the ongoing limited digital performance of the National Lottery, reduced player participation and the extent of the unclaimed prizes expected to be returned to the operator over the 20 year license, are far more significant threats to the future of the Good Causes Funding.

“There is also inadequate transparency around aspects of the current financial performance and regulation of the National Lottery, which is making it difficult for policymakers to assess the extent of the problem and to take appropriate steps to address these issues. The National Lottery Regulator can support policymakers by ensuring that they have access to more detailed information than currently appears to be the case.  Better availability of information would contribute to ensuring that the right decisions are made to address the most significant risks to the long-term sustainability of Good Causes Funding”.

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BOS agrees with KV’s/KO’s advertising assessment of “Trisskrapet” in TV4

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The Swedish Trade Association for Online Gambling (BOS) agrees with the Swedish Consumer Agency’s (KV) and the Consumer Ombudsman’s (KO) assessment that the daily scratch card commercial “Trisskrapet” in TV4 is an advertising feature, and thus not an editorial feature. BOS welcomes that KO is now ending that part of the process.

If Svenska Spel does not stop the advertising elements, BOS looks forward to KV following up on its earlier call to Svenska Spel to comply with the provisions on advertising identification and broadcaster declaration in section 9 of the Marketing Act and the information obligation in ch. 15. Section 3 of the Gambling Act with information on the 18-year-old age limit and where to turn in case of gambling problems.

– The Swedish gambling market must be characterized by a high level of consumer protection. A cornerstone of good consumer protection is that people are clear about what constitutes gambling advertising, i.e. that they are not tricked into thinking that an advertising feature would instead be an editorial feature. The daily “Trisskrapet” on TV4 has been anything but clear on that point, and we welcome that KO now finally establishes that the features constitute advertising and nothing else, says Gustaf Hoffstedt.

– Now it remains for Svenska Spel to introduce the mandatory consumer protection labelling of Trisskrapet. Since the company has not shown any excessive eagerness to introduce this voluntarily, KO should ensure that this happens as soon as possible. Every day and every “Trisskrapet” that does not contain the mandatory consumer protection label is another lost day for a safe and secure gambling market, Gustaf Hoffstedt concludes.

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Expanse Studios Launches in Bulgaria with Inbet

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Expanse Studios, a leader in online gaming innovation, has secured a Bulgarian iGaming license and is now live on Inbet’s website. This expansion brings Expanse Studios’ popular game offerings including turn-based strategies gamified for iGaming, classic slots, traditional card games and the highly-acclaimed ones like Titan Roulette, Clown Fever Deluxe, Wild Icy Fruits, White Wild Whale and Joker Poker to Bulgarian players.

Diverse Gaming Portfolio Now Available to Bulgarian Players

With the Bulgarian market entry, Expanse Studios introduces a versatile gaming experience to Inbet’s platform. The offerings include a dynamic range of games tailored to diverse player preferences:

  • Turn-based strategy games: Leveraging gamification, these games transform traditional strategy gameplay into engaging iGaming experiences, suitable for both novice and experienced players.
  • Classic slots: Players will enjoy a variety of themed slots that combine traditional gameplay with modern graphics and sound.
  • Traditional card games: A selection of popular card games offer something for every card game enthusiast.
  • Titan Roulette: This standout feature, known for its immersive experience and innovative design, continues to be a favorite among roulette players.

Commitment to Quality and Compliance

Expanse Studios not only cultivates a diverse gaming library but also adheres to stringent regulatory standards to ensure a secure and fair gaming environment. The acquisition of the Bulgarian iGaming license is a testament to Expanse Studios’ commitment to compliance and excellence in the gaming industry.

The partnership between Expanse Studios and Inbet marks a significant milestone in Expanse Studios’ expansion efforts. By combining Expanse Studios’ innovative gaming solutions with Inbet’s established market presence, both entities are set to offer a superior gaming experience to players in Bulgaria and potentially beyond. As Expanse Studios continues to develop and release new games monthly, Bulgarian players can look forward to a continually evolving and enriching gaming landscape.

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Week 17/2024 slot games releases

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Week 17/2024 slot games releases
Reading Time: 5 minutes

 

Here are this weeks latest slots releases compiled by European Gaming

Belatra Games, the specialist online slots developer, is on point with its latest sharply designed game, Golden øks. This Norse-inspired adventure carries on from the popular Axe of Fortune title that hit the market at the turn of the year. Golden øks is set against a 5×3 layout and is brought to life with a powerful soundtrack to heighten the atmosphere.

Belatra grows games portfolio with Golden øks title

Endorphina, has announced the release of its brand-new title, Jolly Queen, which will join its portfolio on April 27th. Jolly Queen is a 5-reel, 5-row fruit slot with 50 fixed paylines, introducing players to the lifestyle of the nobles. On top of the aristocratic ambiance, Jolly Queen provides players with Free Games, allowing them to master the reels.

Endorphina releases its newest title - Jolly Queen!

Evoplay has released Candy Craze, a vibrant slot stacked with features and modifiers, including the powerful Gum Drop Multiplier which boosts win potential. Set amidst the backdrop of sumptuous sweets within a cloudy landscape, the 5×5 cascading reels title gives players a sugary rush when the Gum Drop Multiplier activates, revealing a mystery value at the end of each winning spin up to x100, enhancing the chance for wins during the main game and Free Spins.

Yggdrasil, a leading iGaming publisher, has revived the gold rush in a jackpot-filled game that embodies the spirit of old west prospecting in Gold Frontier Jackpots FastPot5™. Fans of lower volatility slots with straightforward mechanics that get fortune seekers right to the heart of the action are tasked with gathering keys to enter the treasure bonus game.

Relax Gaming is offering players some opulence in its latest release Sultan Spins. This high volatility slot sees its gold-trimmed reels set against a sprawling desert metropolis. Players have the chance to rack up riches via an entertaining free spins feature and lucrative local jackpot.

Greentube has introduced its latest title in the popular Diamond Link ™ series, Diamond Link ™: Mighty Dwarves Inc. Set deep in underground mines, this adventurous 5×3 slot is packed with innovative features for ample chance to win across its 25 paylines when players spin the reels adorned with hammers, hard hats and laser symbols.

Get your eyes ready because it’s time to take a trip to the pet centre to meet the ugliest, quirkiest, wildest-looking pets you’ve ever seen in the brand new slot, Fugly Pets, from Stakelogic. Fugly Pets takes players to a banged-up old pet store to explore its collection of weird and charming, downright ugly pets. Meet a scruffy parrot, a catnip crazed kitty, and an unfortunate-looking little dog.

 

 

Load your tackle box, bait your hook and get ready to reel in the catch of the day in Fishin’ The Biggest from Apparat Gaming, the in-demand German software provider’s latest splash hit slot that sees players trawl the sea for free spins and massively multiplied prizes. Played over five reels, three rows and ten fixed paylines, Fishin’ The Biggest is a highly-volatile title with an outdoor angling theme.

Thunderkick has announced the launch of Midas Golden Touch 2, the highly-anticipated sequel to the acclaimed 2019 original. This latest release invites players to rediscover an enchanted realm where everything King Midas touches turns to gold. The 3×5 video slot boasts 15 paylines and showcases Thunderkick’s signature high-quality design and innovative features.

Belatra Games, the specialist online slots developer, has served up another classic with its tasty Chef’s Sticky Fruits slot. This latest release from Belatra’s studio  is a vibrant and juicy addition to its renowned catalogue of slots. It’s a 5×4 slot game bursting with colour that’s heightened with an upbeat, retro soundtrack that perfectly captures the essence of fun at the heart of every play.

Belatra serves up tasty Chef’s Sticky Fruits slot

3 Oaks Gaming has launched 3 China Pots: Hold and Win, the first time the company has integrated the popular 3 Pots mechanic within a Far East-themed title. The latest instalment from 3 Oaks to incorporate the 3 Pots functionality sees players transported to the allure of the Orient, where the Extra, Double and Multi modifiers influence the Bonus Game once activated.

3 Oaks Gaming presents a feature-rich trip to the Far East in 3 China Pots: Hold and Win

Pragmatic Play has unleashed roaming wild re-spins and random guaranteed wins in Release the Bison. Symbols of the American frontier abound in this 5×4 slot, where hitting four or more rampaging bison triggers the wild re-spin feature, during which all wilds roam the reels to boost win potential.

Blueprint Gaming’s latest slot release tasks players to look for the leprechaun’s pot of gold under the water rather than at the end of the rainbow in Plenty O’ Fish, a 6×4 hybrid of sea creatures and shimmering rewards. Players must look to unlock a tackle box of treasure with a jaunty leprechaun being the key to wins, lurking behind a dynamically coloured underwater background that changes when the bonus game is triggered.

Booming Games has launched its latest sweet sensation to its collection of engaging slot games – Fruit Heaven Hold and Win™. This is a deliciously designed 5×3 slot game with 25 paylines, which promises players an exciting experience full of fantastic fruity features and Stacked Wilds.

Wazdan is multiplying jackpots in the follow-up to its top-performing game Mighty Wild™: Panther Grand Gold Edition. Venturing to the depths of the jungle where a black panther rules the reels on a 5×3 gameboard, the new edition provides even larger win potential. With the increased value of the Cash symbols and Cash Infinity™ symbols, there is also a more lucrative Grand Jackpot of 1500x the base bet.

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