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European Gaming Congress 2024

Canada

The US Online Sport Betting and iGaming markets – choosing the right partner for a brighter future

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In the United States, Online Gaming* has grown in popularity over the last year, increasing customers base and gaming revenue. The US Online Gaming market is valued at 2B USD and  the forecast is to grow further and reach 8.5B USD GGR by 2025, representing a CAGR of over 15%.

*Online Gaming is referring to iGaming (aka internet casino/poker gaming) and online Sports Betting (aka Mobile Sports Wagering)

Circa one-third of states already legalized at least one form of online gaming and others are in the process. I It is clear the growth potential is massive after the pandemic put the entire online industry on steroids. Struggling  brick-and-mortar organizations realized that online presence is not just good, but a must-have. It is estimated that the portion of the online gaming revenues from the total gambling revenue in the US is now 20% and it is predicted to double by 2023, on account of additional skins going live, enlarged customers base and more states legalizing online gaming. In 2020, the total GGR from Online Gaming in four of the states- Delaware, New Jersey, West Virginia and Pennsylvania reached over 1.5B USD, representing 200%  Y2Y growth. New Jersey with share out of it is almost $1B and Pennsylvania above $500m. New Jersey is currently the largest market for regulated online gambling in the United States. In March this year, the New Jersey operators scooped up 113.7m USD 21%+ M2M. Pennsylvania is the fastest growing market in the US and it attracts operators and providers even though the tax rates –  Video Slots 54%, Table games 34% and Poker 16%.

Enjoying the politician support, giving additional state tax revenues from GGR and licensing, increasing in-state employment and decreasing illegal betting through a regulated framework, the online gaming market will continue to thrive.  Online Gaming holds a broader potential  than the immediate market operators and providers. There is an entire ecosystem of providers in many fields like KYC automation, Anti-fraud and AML systems, AI and machine learning systems, CRM, BI, Gamification tools, payment processors and many more. In other words this means more indirect taxation and more jobs. Seeing the potential, operators can also take advantage of the growing interest of venture capital organizations and investment banks which have started investing their time, effort and money in the industry. Apart from Tennessee, the regulator has given advantage to the brick-and-mortar establishments, which should remove some of the fear of losing revenues. As online regulation will cannibalize land based establishment revenues, mainly from the younger demographic (under 50 years old), going online is a necessity. Not doing so would simply mean that potential online customers will seek to do business elsewhere.

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The potential to boost land-based establishments with online gaming revenues comes from the fact that online availability is 24/7, richer products and betting options. It is  easily accessible on mobile devices and it extends the business, geographically, throughout the given state boundary

The twelve years between the Unlawful Internet Gambling Enforcement Act of 2006 and the supreme court ruling in New Jersey in 2018 have created an online gaming knowledge gap that US gambling professionals are steadily catching up with by self-learning or/and M&A deals with European technology companies which already have the know-how. The Black Friday in 2011 has left a strong impression that things have changed and being compliant is crucial. Land-based establishments which wish to go online are required to close the gaps regarding online gaming products   as well as having better understanding of the regulatory framework requirements of each state and implement technologies which are quite different from the land-based ones.  As the payment processing options are richer, player acquisition and retention techniques are various,  CSD will also need to be brought up in line with the changes. Unlike the players in Europe who were gradually introduced to new services, products and functionalities over the last decade, the US players are getting  almost complete product in one step.

While the potential is clear, the road to success is not without hurdles, starting with skin licensing, liquidity allocation and financing. A crucial challenge on hand is to identify the right provider to partner up with. Some Casino owners will look for complete control over the new B2C operation, while others may be reluctant to obtain the know-how and would like to hand the operation to a  trusted and experienced 3rd party to run it for them, or to “sell” one of their skins,  if multiple skins are allowed. Some states allow just one skin per license, while others do not specify a limit.  For instance, PGCB in Pennsylvania offers unlimited skins for iGaming licenses, but only one for Sports Betting licenses. Seven jurisdictions are now allowing iGaming and 22 legalized online sports betting. The multi-skin approach is crucial to maintain the diverse and healthy competition. Consumers will be empowered and enjoy better service, and online offering as many more operators are in a given state

Running an iGaming and/or Sports Betting operation is a complex task. Some land-based Casinos are familiar with only running a slot and table games business. With only five states legalizing online casinos, the know-how of Sports Betting is critical; therefore, partnering with the right Sports Betting and Casino partner, like Delasport, is vital. Choosing the right partner can put the land base organizations in the best position to capitalize on Casino and Sports Betting’s opportunities.

Delasport brings to the table the right ingredients to support the local brick-and-mortar establishment. We offer not just technology but also many years of experience in running successful online Sports Betting and Casino operations from the ground up. We support both strategies of turnkey solutions, allowing operators to run their brand and fully managed solutions while we run the day-to-day operations.

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Canada

IAGR announces Toronto as host city for 2025 conference

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Hot on the heels of its most attended conference in history, the International Association of Gaming Regulators (IAGR) is excited to announce that its 2025 conference will take place in Toronto, Canada, from October 20 to 23, 2025.

The event will be held in partnership with the Alcohol and Gaming Commission of Ontario (AGCO) at the Westin Harbour Castle, offering stunning waterfront views and a premier, downtown Toronto location.

‘Fresh off the success of our Rome conference, we’re thrilled to continue the momentum with next year’s event in Toronto,’ said Ben Haden, IAGR President.

‘The IAGR 2025 conference promises to be another unparalleled opportunity for our global community to come together, collaborate and shape the future of gaming regulation. We’re looking forward to working with AGCO to bring it all together.’

AGCO CEO and Registrar Dr. Karin Schnarr, added, ‘We’re excited to welcome IAGR and its members to Toronto. This partnership provides a great opportunity to share Ontario’s innovative regulatory practices and foster meaningful discussions that drive positive change in the industry.’

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Stay tuned for registration details early next year.

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Bombee Global Entertainment Ltd

ESE Entertainment Completes Acquisition of Gaming Production Company, Bombee Americas

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ESE Entertainment Inc., a gaming company that provides a range of services to leading video game developers and publishers, has announced that it has acquired Bombee Global Entertainment Ltd. (Bombee Americas), the North American arm of Bombee Event Production AB, (Bombee), a global production company specialized in live production, special effects, broadcast, and event management for the gaming sector.

Bombee has successfully collaborated with ESE to bring its premier event production services and world class customer service to North America and beyond. The North American arm of Bombee, Bombee Americas, will continue to grow and scale in this new organizational structure under ESE, while maintaining its entire team and global support.

Konrad Wasiela, CEO of ESE, said: “Today marks the next stage of ESE—a 2.0 version of our company. With the acquisition of Bombee Americas, we are not only solidifying our presence in North America but also paving the way for growth and innovation in the gaming industry. This is a major step, positioning us to deliver even greater value to our partners and elevate the gaming experience for our clients globally. We’re thrilled about the opportunities ahead and the exceptional talent joining our team.”

Transaction Terms

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The Acquisition was completed by way of a share purchase agreement (the SPA) among the Company, Bombee Americas, and the shareholders of Bombee Americas (the Vendors). Pursuant to the SPA, ESE acquired all of the outstanding shares of Bombee Americas in exchange for: (i) $750,000 in cash paid on closing, (ii) $375,000 in cash to be paid six (6) months following closing, subject to customary adjustments based on the working capital of Bombee Americas on closing, (iii) $375,000 in cash to be paid twelve (12) months following closing, and (iv) 30,000,000 common shares of ESE (the Consideration Shares), issued at a deemed issue price of $0.10 per share.

In connection with the Acquisition, the founders of Bombee Americas have signed three-year service agreements and will continue to run the business following the closing, along with the rest of the personnel of Bombee Americas who will remain in place, ensuring a smooth transition of operations. As part of the Acquisition, the Company has acquired the liabilities of Bombee Americas, mainly consisting of customary current obligations incurred in the ordinary course of business for Bombee Americas, which are not expected to have a material impact on the Company’s operations or financial position.

No finder’s fees were paid or payable in conjunction with the Acquisition.

The Acquisition was an arm’s length transaction within the meaning of the policies of the TSX Venture Exchange (the Exchange) and constituted an “Expedited Acquisition” in accordance with Exchange Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets. The Acquisition remains subject to the final approval of the Exchange.

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Canada

Suspected Digital Fraud Coming from Canada Up Nearly 11% Since H1 2023, Reveals New TransUnion Analysis

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In the first half (H1) of 2024, Canada saw a significant increase in suspected Digital Fraud attempts, with nearly 5.74% of all attempted digital transactions where the consumer was located in Canada involving suspected Digital Fraud, revealed a new TransUnion® (NYSE: TRU) analysis. This is nearly an 11% year-over-year (YoY) rate increase from H1 2023, and TransUnion also documented an 11% increase in the volume of suspected Digital Fraud from Canada during this period, despite a less than a one percent (0.7%) YoY increase in the volume of transactions.

According to a recent TransUnion survey,1 more than half (54%) of Canadians said they were recently targeted by email, phone call or text message fraud attempts. Phishing was the most common scheme type (45%), followed by smishing (42%) and vishing (39%).

The increasing use of digital transactions, combined with rising suspected Digital Fraud attempts are also impacting businesses as they potentially face revenue losses and increased operational costs due to fraud. According to a TransUnion business survey for the H2 2024 Update to the State of Omnichannel Fraud report, 200 Canadian business leaders said their companies lost approximately 6% of equivalent revenue – representing $78 billion – over the past year due to fraud. The most prominent causes of fraud loss cited by them were:

  • Scam/Authorized fraud (31%): Dishonest scheme intended to trick a person into giving up something of value (e.g., account access, money, information)
  • Account takeover (19%): Unauthorized individuals taking over someone’s online account (e.g., bank, social media, email) without their permission
  • Synthetic identity fraud (18%): Use of a combination of personal information to fabricate a person or entity to commit a dishonest act for financial or personal gain

TransUnion also found that suspected Digital Fraud attempts – where the consumer was transacting in Canada and targeted businesses globally – increased on average by 10.5% YoY in H1 2024 compared to H1 2023 and impacted all industries.

Top Three Industries Globally with Highest Rate of Suspected Digital Fraud Attempts Coming from Canada in H1 2024

  1. Gambling (online sports betting, poker, etc.) – 9.6%
  2. Retail – 9.2%
  3. Government – 7.7%

Top Three Industries Globally with Highest YoY Increase (H1 2024 vs H1 2023) in the Rate of Suspected Digital Fraud Attempts Coming from Canada

  1. Logistics – 172.9%
  2. Gambling – 79.3%
  3. Video gaming – 67.8%

“Protecting customers and their businesses from fraud is essential to enabling safe and tailored consumer experiences. These findings reveal that despite the good-faith efforts that are being undertaken by companies to identify and prevent fraud to date, fraudsters continue to evolve and it’s vital that fraud prevention methods keep up with the changing times,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.

“Businesses that aren’t already doing so should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” he added.

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