Regulation round-up 2 August 2016
The biggest regulatory news from the egaming industry in the last seven days (27 July to 2 August 2016)
Ladbrokes Gala Coral merger receives CMA approval
Two firms set to merge in the autumn pending the disposal of 350 to 400 shops
Ladbrokes and Gala Coral will merge this autumn after the Competition and Markets Authority (CMA) confirmed the operators must sell between 350 and 400 shops for the deal to go ahead.
In a statement last week, the CMA said the two operators must first offload the bulk of the shops after it had identified 642 local areas which could see a substantial lessening of competition as a result of the merger.
Ladbrokes and Coral must now propose a divestment package to remedy the situation and find one or more “suitably qualified” shop buyers, which must receive the CMA’s approval.
Last week’s announcement is in line with the CMA’s provisional findings released on 20 May, after which it invited Ladbrokes, Gala Coral and third-parties to comment on the report and provide solutions to any competition problems.
Britain sees fall in 18-24 gambling participation
Operators in Britain are failing to attract the younger generation after online gambling participation among 18-24 year-olds fell for a second successive year, a new survey by the Gambling Commission has shown.
The survey, which was carried out by research firm Populus for the year to June, found 10% of 18-24 year-olds had gambled online during the four weeks prior to being surveyed – excluding those that only played National Lottery.
That figure was down on the 12% recorded over the previous year and compares even more unfavourably to the 17% returned following the 2013-14 survey.
Seven days in regulation:
Camelot hit with £300k fine for risking public confidence
UK lottery operator Camelot has been fined £300,000 for providing inaccurate results on its National Lottery site, an error Great Britain’s Gambling Commission said placed “public confidence at risk”.
An investigation found incorrect Lotto Millionaire Raffle results were displayed on the site for an hour and viewed by more than 100,000 people on 10 October 2015.
The Commission said the firm had breached the terms of its operating licence as its processes and procedures were not fit for purpose and players were misled.
Matchbook obtains ABP status
Matchbook is the latest online operator to become an Authorised Betting Partner (ABP) of the British Horseracing Authority (BHA) following the recent launch of its racing exchange.
The partnership will see Matchbook make a voluntary contribution of 7.5% of racing profits to the BHA in exchange for a number of promotional benefits and commercial arrangements with British racecourses.
“It’s important to us, and our customers, that every horseracing bet with Matchbook contributes to the future growth of British horseracing,” Matchbook’s CEO Mark Brosnan said.
Gaming1 launches first licensed casino in Portugal
Gaming1 has entered into a partnership with Portuguese land-based casino giant Estoril Sol to launch the country’s first licensed online casino and become just the third licensee in the recently regulated market.
The 50:50 joint-venture is EstorilSolCasinos.pt, which comprises desktop and mobile platforms featuring 15 video slots, two roulette and one blackjack game, with additional content to be added in the coming weeks.
GAMING1 CEO, Sylvain Boniver, said the firm’s deal with Estoril Sol, which controls 64% of the retail market in Portugal through its Estoril, Lisboa and Póvoa casinos, reflected the company’s ability to be “an all-round partner, not just a provider”.
Poll: Do operators need to increase appeal to young adults?
Great Britain’s Gambling Commission last week published the results of its latest annual survey which found online gambling participation among 18-24 year-olds had fallen for a second successive year.
Although online gambling has never been particularly high among young adults, the results showed the percentage of those betting or gaming online had dropped from 17% in 2013-14 to just 10% in 2015-16.
In contrast, the three age brackets from 25 to 54 had all seen increases in participation, with those in the 45-54 age bracket the most engaged demographic with participation having jumped from 10% to 16%.
Illinois seeks new lottery manager to boost online sales
Illinois has issued an RFP for a new private partner to run the state lottery, with a focus on boosting online sales.
The Illinois lottery was the first in the nation to sell tickets online and one of only eight states with any online features.
It was privatised back in 2010, with the contract going to Northstar Lottery Group â a partnership between lottery giants GTECH and Scientific Games.