Asia Gaming Awards 2017

The second edition of the Asia Gaming Awards takes place on the first evening of G2E Asia, Tuesday 16 May 2017, at The Parisian, Macau. The event brings together people from across the Asian gaming industry – operators, regulators, suppliers, and service providers – to celebrate achievements within the gaming industry.

 

The Asia Gaming Awards is the first regional event of its kind to listen to the voice of the industry. Members are asked to nominate and cast their vote, alongside an esteemed panel of judges.
 


A total of 12 awards will be presented across the land-based and online gaming spheres. The awards will also elect up to eight rising stars, who are viewed as likely to shape the future of the industry.

In 2016 the awards enjoyed immense industry participation, collating more than 1,000 nominations and 8,000 votes across the categories.

Rosalind Wade, managing director of Asia Gaming Brief, said: “We are proud to be producing the second edition of the Asia Gaming Awards, which has arguably become a high point in the Asian gaming events calendar after just one edition. It brings the industry together to honor the outstanding contributions from across all spheres.”

Nominations are open until Friday 28 April 2017 for this year’s Asia Gaming Awards.

For more information on the Asia Gaming Awards, process, categories and criteria, please visit asiagamingawards.com

Hemmings has Scottish National success

Isle of Man-based racehorse owner Trevor Hemmings had success in Saturday’s Scottish Grand National at Ayr when Vicente (9/1f) got up to beat Cogry (18/1) by a neck in the near four-mile race. 

Hemmings only purchased Vicente shortly before the Randox Health Grand National at Aintree earlier in April following the death of his stable-star Many Clouds, a previous winner of the Aintree race, which left him without an entry in 2017’s event.

Vicente, however, got no further than the first fence in the National but was none the worse for his experience and redeemed himself with victory at Ayr. It was the horse’s second win in the race, having won the race last year too. 

Mobile gambling: Apps, bots and AI

It is widely recognised in the e-gaming sector that customers who play via their mobile phone have higher life time values than players who use a desktop computer. It is not surprising, therefore, that many e-gaming operators have developed apps for their services and have spent a considerable amount of marketing effort on recruiting mobile gamblers.

Mobile devices can certainly complement land-based gambling and are already doing so in many venues. For example, mobile devices can be used to allow gamblers to play when they are still in the casino but not necessarily on the gaming floor or devices can be installed in betting shops to allow players to place bets rather than over the counter.

But in technology circles there is already the view that the current mobile set up of “operating system and apps” is already under threat. Speaking last year, Microsoft CEO Satya Nadella stated, “bots are the new apps”.

Bots and apps were also discussed at the recent i-Gaming Forum in Stockholm, which GBGC attended.

Daniel Lehnberg, Head of Creative Labs at PokerStars, explained that lots of investment had taken place in bots but that, so far, the consumer does not yet understand what bots can achieve for them. As a result, apps will remain the mechanism for delivering services in the medium term.

There will come a point, however, when consumers realise the benefits of bots. At that tipping point the current incarnation of apps might become redundant as artificial intelligence and bots are developed for everyday use. For example, rather than clicks or taps on a mobile device, users will interact with a service by voice activation, like today’s Alexa or Siri voice assistants. This removes the need to download numerous different apps to a device, each with its own user interface.

As always, there will be issues specific to gambling in enabling bot technology but the sector is usually very good at finding ways of making new technology work for e-gaming services.

Gambling and the general election 2017

The much-awaited decision on the review of Fixed Odds Betting Terminals (FOBTs) from the Department for Culture Media and Sport (DCMS) is likely to be delayed until after June’s surprise general election. That being the case, what prominence will FOBTs be given in the various manifestos?


FOBTs are not a key issue amongst the electorate but it is still one that can carry a couple of lines in the manifesto, if only to demonstrate that the parties concerned are ‘caring’. But politicians should, however, refrain from saying too much because to do so will prejudice the review and could leave them open to a judicial review later.

What is likely is broad statements involving social responsibility on the part of operators and additional measures to prevent addictive play.  With the Conservative Party 1/10 to win the election it is that manifesto that will be scrutinised most.

E-gaming companies will also be interested to see if a policy on Gibraltar makes the cut in the manifestos.  The current British government’s stance on sovereignty has been confirmed but the wider implications of Gibraltar operating as a duty-free zone, with low corporation tax rates has not.  

All the manifestos are likely to feature the war on tax evasion, tax avoidance and the targeting of offshore low tax regimes. As a British overseas territory (BOT), Gibraltar is one such place.  BOTs are territories under the jurisdiction and sovereignty of the United Kingdom.  They are parts of the British Empire that have not been granted independence or have voted to remain British territories. They are less independent than the British Crown Dependencies, such as the Channel Islands and the Isle of Man.  

Mrs May has caught the opposition parties on the hop.  Her announcement came as a surprise and there is little time for them to prepare.  As such, gambling might be overlooked in the hastily written manifestos as the politicians focus on other issues, which could be the best result for the gambling sector.

Gibraltar: a Rock in a hard place

It is now clear that Gibraltar will be used as a bargaining chip in the Brexit negotiations over the coming years, as the UK prepares to leave the European Union.


I had always thought that the border between Gibraltar and Spain would remain open.  But circumstances are changing. At the time of writing the EU is insisting that Spain implements border controls in the Schengen area to prevent illegal immigration and increase security.   After the UK leaves the EU, the border will change from being an internal border to an external one. This will inevitably cause delays crossing from Spain to Gibraltar and if the Spanish Government decides to be awkward then crossing would become an arduous daily ordeal. 

Senator Jose Ignacio Landaluce of the Spanish Foreign Affairs Committee told ITN “Even if we go easy, I can assure you things will be a great deal more uncomfortable than they are now.”  Such controls enforced daily could wear down those travelling across the border to work to the point where business could be disrupted.

On 31 March 2017 the Daily Telegraph reported that the draft guidelines drawn up by EU leaders state that the Brexit deal will not apply to Gibraltar without an “agreement between the Kingdom of Spain and the UK”.

The clause has taken British officials by surprise. One told the Telegraph it is “absolutely unacceptable” and gives Spain too much power over the future of Gibraltar. 

“One really wonders why the EU has thought it sensible to put in something that’s a bi-lateral issue between Spain and the UK,” officials said. 


Gibraltarians voted 96% in favour of the United Kingdom remaining within the EU in the 2016 referendum.  They did not vote to leave the UK and, as they are concerned, being a part of the UK takes precedent.  


Gibraltar the low tax jurisdiction

But a weakness in Gibraltar’s case is that it is a low tax jurisdiction.  There are no capital taxes, no VAT, gambling tax is 1% of gross gaming yield capped at £425,000 with a minimum payment of £85,000. Excise duties are very low causing daily smuggling runs into Spain. 

The rate of income tax peaks at 29%, with the rate then falling in bands for amounts over GB£ 353,000. In general it is a progressive rate in reverse!  Low taxes equal a booming economy and Gibraltar has been growing at a rate of 12% a year.

Given both the EU and UK apathy towards low tax regimes and the need of all member states to raise more in tax to finance budget deficits, Gibraltar is hardly likely to find favour.  On a cost-profit analysis, if Gibraltar were to become Spanish, would companies stay in Gibraltar or migrate back to the UK? If the latter, what would be the benefit to the UK exchequer?  

On the question of sovereignty, in 2013 the former Labour Government minister Peter Hain mooted the idea that the best way forward is for the UK and Spain to have dual control of Gibraltar.  So discussion within the UK Government has already taken place about resolving the situation with Spain.  In any case, the Chief Minister of Gibraltar, Mr Picardo rejected the idea on 10 January 2017 but has also stated that if Gibraltar lost access to the single market it would be a disaster.  It is wanting the best of both worlds that is likely to test Gibraltar’s resolve.  Fiscal pain can change minds.

The Spanish attitude is clear, within hours of the referendum result last year, then-Foreign Minister José García-Margallo declared that the time to plant “the Spanish flag on the Rock” was close at hand.  Probably a bit of bravado at the time but nevertheless a demonstration that emotions on this subject run high in Spain. 

The rhetoric has not cooled since and the new Spanish Foreign Minister Alfonso Dastis told the parliament on 30 March 2017: 

“We will not agree to any documents that will undermine Spain’s position on [Gibraltar] sovereignty or back Gibraltar’s economic activities that hurt Spain’s interests”


The low tax regime is one of Gibraltar’s economic activities is damaging to Spanish interests. 

Spain has now escalated the situation by saying it would not object to Scotland seeking independence. Previously Spain was concerned that to do so would encourage Catalonia to break away from Madrid.


E-gaming implications

All of this has unnerved e-gaming operators on Gibraltar.  888 Holdings, one of Gibraltar’s largest operators, highlighted the EU negotiations and Gibraltar’s position as a risk:

“The proposed status of Gibraltar in relation to the United Kingdom as a result of ‘Brexit’ is at present unclear,” 

“If 888 were to remain registered, licenced and operating in Gibraltar in these circumstances, its ability to rely on EU freedom of services/establishment principles in supplying its services within the EU will be limited.”

Regulatory licences issued in one jurisdiction might become ineligible in certain EU jurisdictions.

The ability to rely on EU principles underpinned 888’s regulatory strategy regarding major EU markets, the company said, adding that it would be unable to control or mitigate political changes of this nature. 

888 Holdings, however, “would reconsider the appropriateness of remaining registered, licenced and operational in Gibraltar in these circumstances”.

“Malta may be considered as an alternative ‘dot com’ licensing jurisdiction.”

In its 2016 interim report published before the UK’s move for a hard Brexit, GVC Holdings said Brexit could reduce the group’s ability to operate in certain EU markets without a change in domicile, which could carry a higher tax burden.

But Lottoland CEO, Nigel Birrell, said, “We began operating from Gibraltar in May 2013 and it has been the perfect base for our business, providing an excellent platform for our success… Our business is thriving and the benefits of staying in Gibraltar remain very strong indeed.”


Fish for access

What would be on the table during the negotiation with the EU that would affect Spain, the UK and Gibraltar? FISH!


The UK embraced the idea of Total Allowable Catches (TACS) because of the EU policy of “equal access to a common resource” in 1973. The rest of the EU now has 75% of the TACs, despite the UK having 48% of the seas. It also shows that the EU catches 59% of the fish in UK waters, which is worth around £711 million. The UK catches 15% of its fish in EU waters while the EU catches a whopping 54% in UK waters.  Spain imports a great deal of fish and it will want continuity of supply.


The fishing towns in the north of England voted Leave by a big majority and Britain’s UKIP party has said that regaining control of Britain’s fish is a priority. If the UK wants control of its fish it may have to relent on Gibraltar.  Not so says Boris Johnson, the UK’s Foreign Secretary, who said the future of the Rock was not up for discussion whilst its people still overwhelmingly want to remain British.  

I believe that to be the crucial element.  If the UK is leaving the EU because of a democratic mandate from the electorate, does it not follow that if Gibraltarians want to remain British then that is their democratic right? 

Last but not least, Gibraltar occupies the strategic entrance to the Mediterranean Sea giving access to the Suez Canal and the Middle East. Although Spain is a member of NATO the British Government would want to relinquish control at a time when the future of NATO itself is in question.

Gibraltar needs to establish a more coherent political objective. Access to the single market as an EU member, and remaining British does not recognise that things have changed. Gibraltar needs to present the simple case of staying British. Becoming a part of Spain and losing the tax advantages that attract business is a move that would cause the Spanish flag to fly over Gibraltar and would render the economy to that of La Linea, the poor Spanish town across the border. Like Britain, Gibraltar needs to cast its net wider than the EU.


by Warwick Bartlett

Regulation starves gambling innovation

At this year’s excellent Westminster e-Forum on gambling, I spoke on a panel entitled “Industry growth and development: key markets, investment and Brexit implications”.  On Brexit, I stuck my neck out again and said that in my opinion the border with Gibraltar would remain open because it was in everyone’s mutual interest to keep it open.


In my short presentation I told the audience the things that keep me awake at night when it comes to gambling. It could be summed up to two things: a lack of innovation and a deluge of regulation.  On innovation, I asked why no-one was talking about Artificial Intelligence and what it could do for the industry, if anything at all.  Most probably because regulation is taking up everyone’s attention.

Sarah Gardner, Executive Director of the UK Gambling Commission, talked about the priorities for developing and enforcing a strong and effective regulatory framework.

At the end of her presentation Ian Ince from Playtech commented that “since June 2014, or this last 2.5 years when Point of Consumption Tax was introduced, I would like to know if the Commission is fully aware of the pressures on the industry, particularly when you’ve heard the other speakers, earlier this afternoon, talking about consolidation and zero innovation? And to use your words, you know, we don’t have unlimited resources.

This is what the industry has had to contend with in this last couple of years:

Point of Consumption Tax (POCT) introduced
NOSES (National online Self Exclusion Scheme)
Remote Gambling and software technical standards consultation (RTS)
Crime Review Consultation (LCCP)
Social Responsibility (includes reality spin, auto spin)
Enforcement Consultation – putting gambler first
LCCP changes post crime
Annual Assurance Statement
Corporate Evaluation
Testing strategy audit
RTS monitoring
Source of Funds
General Data Protection Regulation (GDPR)
Anti-Money Laundering Directive (AMLD)
POCT extended to free bets

Clearly this is all too much, most of which serves no useful purpose. The UK is leaving the European Union supposedly to rid itself of unnecessary regulation but if regulation was an Olympic sport the UK would be a gold medallist.


by Warwick Bartlett

Marketing to Millennials

Marketing to Millennials has become a major topic of conversation and there have been several presentations on the e-gaming conference circuit this last few months. There is good reason for the interest. This demographic grouping a large one, even larger than the “baby boomers”.

The definition of a Millennial is someone born between 1982 to 2004 making them aged between 13 years to 35 years.  As such, approximately fourteen percent cannot vote, and cannot gamble.Of the other 86% I would suspect that at least half would have no interest in gambling at all. Fashion, music, dating, drinking yes. Gambling?  I doubt it. 
So how do gambling companies reach out to those that do, and what products are likely to interest them?  


First, we need to understand this generation better because they are fundamentally different to all the previous generations that have gone before them.  They have grown up with digital devices at their fingertips.


In some quarters, they are regarded as the entitled generation. It is a generation that has more access to information than any previous generation.  Segment of this demographic are said to be dissatisfied because what they have been promised is not being fulfilled.  


Their mothers told them they were great, told them they could have all they wanted and were destined to achieve great things.  The same mothers criticised their teachers for not giving higher grades at school.  The teachers responded by giving higher grades that were not merited.  On sports day, it was “prizes for all” regardless of whether or not you finished first or last. 

Many millennials were persuaded (in the UK it was the government egging them on) to go to university, when it was not the right path for them.  These graduates now have worthless degrees and thousands in student loan debt. According to the Federal Reserve Bank of New York wages for the typical recent college graduate working full time have risen just 1.6 percent over the last 25 years, after adjusting for inflation. At the same time, student debt burdens for the typical bachelor’s degree recipient who borrowed for college have increased by about 163.8 percent. 

 

Millennials are claimed to be less interested in politics than the previous generation.  The pervading view is that regardless of who you vote for the result is the same.   

An ex-Royal Marine officer told me that for the British Army millennials are a problem.  If ordered to scrub the floor they say ‘Why me and not him?’ In the battlefield scenario, you cannot afford to have commands questioned.  

The Russian prima ballerina, Diana Vishneva recently told the Daily Telegraph, “Today’s ballet students are too concerned with their own happiness, they are lazy, weaker than the previous generation, and internet is taking their attention away from what needs to be done”.

But Professor Robert Winston has come to their rescue.  In the updated programme, Child of Our Time he maintains that most Millennials handle social media sensibly and with more maturity than we give them credit for.  The programme also states that this generation smokes less, drinks less, and has less sex than the previous generation so there is a misconception that they are out of control, narcissistic, and screen fixated.  The programmes does note that deference to authority has all but vanished.  


From a marketing perspective, Millennials demand high standards of service and they are impressed by celebrity and brands.  They have seen people with no talent and few attributes other than a Facebook page, and a video on YouTube become celebrities, and they aspire to become one.  

Marketing to this group is a challenge. Research shows that only 31% look at traditional display adverts whereas baby boomers look at 83%.  91% own a smart phone which they check 110 times a day on average.  If they are unable to connect to the internet they panic, their heart rates surge, they become stressed. 93% admit to using a phone in bed. 45% block mobile ads. 40% are prepared to spend more money on a product providing a good cause is attached to it, such as fair trade coffee.
  

The smart phone has become an extension of their person.  In the morning, they wake to the phone’s alarm, check Facebook to see if the meal they ate last night and photographed has any likes, eat breakfast while checking messages, catch the train to work, pay for the ticket with Apple pay.  Check bank account while on the move, and watch a film or listen to Spotify. Arrange lunch with friends via WhatsApp and find the restaurant and get directions via Google maps. 
 

To reach this generation successfully a mobile solution is essential. During June 2016, the time of the EU referendum in the UK, the Daily Telegraph added 4.2m new visitors and the Guardian 3.4m.  Euro 2016 and Wimbledon saw sports sites’ visitors soar, BBC sport alone captured 12 million unique visitors.  Mostly all from mobile. 

The gambling industry has always been at the forefront of mobile development, way ahead of the banks, financial institutions and retailers.  They have led the way, developed great software programming skills that is now being utilised by the rest of industry and commerce.  A plus for the economy.


At the recent Westminster e-forum on gambling, Wanda Goldwag, the chair of Senet Group, was critical of betting advertising. It was too “in your face” for her liking but she was forgetting that the first batch of adverts which tried to use more humour were banned by the Advertising Standards Authority.


The combination of restrictions on how gambling can be portrayed in adverts and the Millennials’ penchant for celebrity endorsements, marketing in to this group is far from easy. Think SFM – simple, fast, mobile.


by Warwick Bartlett

Bravery spares bookmakers Moore woe

The opening day of the UK turf flat racing season 2017 was almost a financial disaster for the bookmakers when jockey Ryan Moore rode the first three winners on Doncaster’s card.


Moore’s 575/1 treble was bad enough for the bookmakers but then punters piled onto the jockey’s mount Oh This Is Us in the feature race of the day, the Betway Lincoln Handicap. Oh This Is Us was backed in to 7/2 favourite, having been a 14/1 shot for the 22-runner race earlier in the day.

Coral’s Simon Clare tweeted “Make no mistake, if Ryan Moore wins the Lincoln on Oh This Is Us it will be the worst opening day of the Flat season ever for bookies”.

As it turned out, the bookmakers were spared by just a neck when 20/1 shot Bravery held on from Oh This Is Us in second.

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