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Operators rally for US national and state lotteries to go digital

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From Oregan to Maryland, state lottery operators are rallying their respective officials to allow online ticket sales as a new normal of decreased retail footfall descends on towns and cities across the US. After helping many national lotteries around the world go digital over the past few months, Ade Repcenko, CEO of Spinola Gaming, believes that an upgrade to online sales is indeed the only way forward for the US lottery sector.

Lottery operators across the US are calling for their state officials to digitise the sale of tickets in the wake of the Covid-19 pandemic.

Over the last few months, only a handful of states were able to legally offer digital lottery ticket sales during their respective lockdowns: Georgia, Illinois, Kentucky, Michigan, New Hampshire, Rhode Island, North Carolina, Pennsylvania, North Dakota and Virginia. Many of these states revealed that they experienced a surge in online ticket sales, with New Hampshire registering a 38 percent jump in first-time online players during this period. All other states require players to purchase a lottery ticket in person from a retail outlet, and all saw sales and revenues tumble drastically during the pandemic.

Despite a determination to go digital now being shared by a majority of key lottery figures in the US, state operators still require regulatory changes to take place before they can make the shift. 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. The online commercialisation of US government and state lotteries is long overdue, and Covid-19 has given those in favour of digitization real tangible data to support their long-standing arguments. State lottery operators’ interest in going digital is now stronger than ever, as the pandemic clearly highlighted the severe limitations of the retail lottery business model.

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Barry Pack, director of the Oregon State Lottery, stated that retailers in Oregon lost 70 percent of their customers due to the lockdown. “The recovery from this pandemic is going to force a digital transformation in our industry a whole lot more quickly than we might normally have seen it come,” he said. “When the legislature reconvenes next week, they’re facing a billion-dollar shortfall. Their opinions about mobile gaming will change. I think there will be less resistance.”

Gordon Medenica, director of the Maryland Lottery shares Pack’s views: “We’ve been pushing a digital transformation and online selling ever since I’ve been in this industry, over the past 10 to 15 years,” he said. “In Maryland, they passed a law three years ago banning sales on the internet. I think we’ll see a dramatic change and I’m looking forward to it.”

And in a Lottery Commission meeting, Massachusetts Lottery Executive Director Michael Sweeney said their lottery faced “a significant threat of becoming somewhat obsolete”.

The extreme drop in lottery sales due to the pandemic and shelter-in-place orders was also a key pain point for most participants of the SBC Digital Summit’s lottery discussion titled, “State of Play – US Lotteries During the Coronavirus.” Many state lottery veterans shared the opinion that the pandemic should be a wake-up call for lottery officials and state legislatures, with one participant stating that the pandemic exposed state lottery’s inadequate retail business model and that it might not be sufficient for the new normal. Speaking recently Ade Repecnko, CEO of Spinola Gaming, agreed with that assessment. His company has helped many national lotteries around the world go digital over the past few months, giving them a steady stream of income to sustain their operations during the pandemic.

“Retail operators need to take a look at the post-Covid19 world and its impact on player needs and expectations, and think about what it means for the future of lotteries.” said Ade Repcenko, CEO of Spinola Gaming. “Digital is the way forward and is set to play a huge part in our industry over the coming years. Solutions like the ones offered by Spinola Gaming provide land-based operators with a holistic solution that helps operators make the move 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 available at the touch of a button. The system is available across all markets, currencies and languages and is fully customisable.”

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AGCO Removes Cap on Seller Commission for Charitable Lottery Products

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The Alcohol and Gaming Commission of Ontario (AGCO) has updated several lottery policies to remove the cap on seller commission for Paper Raffles and Media Bingo, along with removing the prohibition on Catch the Ace paper lotteries, to align with other charitable lottery products.

Licensed charities may now negotiate commissions directly with sellers and determine commissions, provided they are reasonable and tied to the cost of service provided by the seller.

These updates further the AGCO’s commitment to adopt an outcomes-based regulatory approach and reduce burden for the charitable gaming sector. Local charitable organizations will have greater flexibility to make decisions that best serve their fundraising objectives.

Important Reminders

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• Charities must still receive approval for other expenses incurred under their licence and retain receipts for seller commission paid.

• Licensing authorities will not require documentation to be submitted as part of the application process, however, charities are still subject to audit to determine compliance.

• Charities are reminded of their legal requirement to meet their obligations under the Criminal Code and with respect to conducting and managing a charitable gaming scheme.

• As with all licensed charitable lottery events, charities must take the necessary steps to ensure that they are conducting and managing the lottery event within Ontario.

For charitable gaming-related inquiries, email an AGCO Eligibility Officer at [email protected] or call AGCO Customer Service at 1-800-522-2876, Monday to Friday from 8:30 a.m. to 5 p.m.

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Alon Segev

Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation

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Leading business, technology, finance, and gaming law firm, Segev LLP, is proud to announce its 10th anniversary. Over the past decade, Segev has evolved from a bold idea into a multi-jurisdictional firm serving clients across Canada, the U.S., and beyond.

Built for innovation-driven industries, the firm is widely recognized for its work with companies at the forefront of gaming, crypto, technology, and emerging sectors. “Our 10-year anniversary is a defining moment,” said Founding Partner, Ron Segev. “It’s a testament to the strength of our team and our culture of teamwork, self-improvement, and growthall of which is directed at scoring wins for our great clients.”

As industries like fintech, crypto, iGaming, and AI have matured, so has the firm, often in parallel with its clients. “We’ve all grown together with our clients from one success to the next, whether it be helping clients complete financings or helping them close business,” said Managing Partner Alon Segev. “I look forward to continued growth for us and our clients in the next 10 years!”

The firm’s client-first approach has consistently earned recognition from top legal ranking guides. Segev LLP is ranked by Chambers and Partners as a “Leading Firm” and “Band-1” in Canada for Gaming Law and are also recommended by The Legal 500 and Lexology. These rankings reflect the team’s ability to deliver strategic, high-quality legal solutions that align with their clients’ business goals.

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Recognized for their unique ability to exceed expectations and deliver out-of-the-box solutions, Segev LLP’s clients have affirmed: “The firm demonstrates its capability not only to understand complex matters, but also to offer solutions that are practical, pragmatic, and value-adding.”

“Segev possesses outstanding resources and maintains global partnerships, enabling it to deliver precise and informed responses to any queries related to the iGaming industry.”

“Epic service, very good, I won the case!”

“Great service, friendly atmosphere, and support.”

Several Segev team members also reflected on the milestone: “There was a moment early in my time here when I realized I wasn’t just being brought in to help; I was expected to contribute, take initiative, and run with big ideas. That stuck with me,” said Negin Alavi.

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“Together with our clients, [Segev] has experienced remarkable growth over the past decade. I’m honored to have contributed to this journey and to celebrate these shared successes,” said David McHugh.

Segev has cultivated a thriving law practice on the principle that challenges are to be embraced as opportunities. The approach has enabled us to grow as lawyers, but more importantly, it has enabled us to ensure the success of our clients,” said Mark Balestra.

“Since joining through Segev’s Ontario expansion, I’ve had the chance to work alongside some of the sharpest and most collaborative lawyers in the gaming space,” added Manav Bhargava. “As a full-service firm and industry leader, Segev stands out for its ability to support innovative businesses with practical, forward-thinking legal advice.”

Segev LLP will commemorate the anniversary with a series of internal and external initiatives throughout the remainder of the year.

The post Segev LLP Celebrates 10 Years of Business-Focused Legal Innovation appeared first on Gaming and Gambling Industry in the Americas.

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INCENTIVE GAMES SECURES ONTARIO GAMING LICENSE

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Incentive Games, a leading B2B games provider, is proud to announce that it has been awarded an Ontario Gaming License by the Alcohol and Gaming Commission of Ontario (AGCO), effective today. This achievement enables the company to offer its portfolio of real-money games to licensed operators and players across the province.

The license underscores the Incentive Games’ commitment to meeting the highest standards of compliance, security, and operational excellence. The rigorous application process demands robust security protocols and comprehensive responsible gaming measures and affirms the company’s readiness to enter one of Canada’s most dynamic iGaming markets.

The North American market is a strategic focus for Incentive Games, and this milestone follows closely on the heels of the company receiving its Provisional Michigan gaming licence from the Michigan Gaming Control Board earlier this month.

Incentive Games will distribute its real-money gaming content in Ontario through Incentive Studios, the company’s dedicated Real-Money Gaming division, ensuring a focused and tailored approach to the market.

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“Ontario represents a huge opportunity for us, and securing this license is a proud moment for the whole team,” said John Gordon, Chief Executive Officer at Incentive Games. “It reinforces our dedication to meeting the highest standards while delivering compelling real-money content. We’re looking forward to building strong relationships in the region and continuing our momentum across regulated markets worldwide.”

The post INCENTIVE GAMES SECURES ONTARIO GAMING LICENSE appeared first on Gaming and Gambling Industry in the Americas.

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