A tribunal victory for Rank Group and Betfred against HM Revenue & Customs (HMRC) has raised the possibility of British bookies getting refunds from the tax man.

VAT on Fixed Odds Betting Terminals

In a rare piece of good news for Britain’s embattled bookies, an Upper Tribunal led by Justice Anthony Mann and Judge Thomas Scott, has ruled in favour of the betting firms in their long running dispute with HMRC over the classification of VAT charges on Fixed Odds Betting Terminals (FOBTs).

The saga revolves around different interpretations of VAT exemptions relating to FOBTS. Basically, Rank Group and Betfred had argued that VAT charges on FOBTs were subject to tax exemptions in line with other casino games, because HMRC had not updated legislation or made any distinction in the supply of games specifically through FBOTs.  In fact, the bookies pointed out that HMRC did not update legislation to include FOBTs until as late as January 2013.

Rank Group challenged tax paid on the machines between 2002 and 2005, while Betfred’s case covered 2005 to 2013. The latest ruling is the third defeat on the issue for HMRC, which had lost two previous battles against the bookies.

In an official statement, Betfred said:

“This is a historical tax case where the Upper Tribunal has agreed with the original court decision in July 2018 that licensed betting offices were wrongly charged VAT on Fixed Odds Betting Terminals between 2005 and 2013 before the introduction of machine games duty.

“We will not be making any further comment as HMRC is still able to seek permission to have an appeal on the matter heard by the Court of Appeal.”

Rank now needs HMRC support

Staying with Rank Group, is has emerged the company has now furloughed almost 90% of its UK-based staff in response to the COVID-19 lockdown. The nearly 7,000 employees should still receive 80% of their salary if the UK governments job retention scheme is rolled out effectively.

Rank Group directors have also volunteered to take a 20% pay cut for the duration of the crisis. The company has estimated that, if its venues remain closed for an extended period, the groups annual underlying operating profit could fall between GBP £48m and £58m.

The company has said it is continuing to work to protect cash and prepare for the safe reopening of its venues, and that it remains optimistic it can “withstand an extended period of economic turmoil” with support from HM Treasury and HMRC.

AYO.NEWS says:

Though the latest ruling is the third defeat for HMRC, we very much doubt this will be the last of it. With tax revenues likely to plummet due to the unprecedented COVID-19 driven economic shutdown, no tax agency will be wanting to give money back.

However, for the bookies, times are equally as tough, and they will be keen to claw back any earnings they can. And, three victories will surely encourage other operators to pile in with similar claims.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

Inspired Entertainment has confirmed it will be providing its new V-Play Plug & Play™ complete end-to-end online virtual sportsbook product to DraftKings.

According to Inspired, the solution will allow the operator to access its Virtual Sports offering with minimal integration effort and provide rapid speed-to-market.

14 virtual sports are currently offered, including basketball, car racing, football, and horse racing, and will be available to DraftKing’s New Jersey customers through online and mobile.

Discussing the deal President and Chief Operating Officer at Inspired, Brooks Pierce, said:

“We are very excited to team up with DraftKings to bring Virtual Sports to their passionate fans. Not only do we have the largest and most advanced portfolio of Virtual Sports, we tailor our products to sports fanatics with a combination of fast-paced action, ultra-realistic player simulations and a tremendous breadth of bet types.

“We are looking forward to working with DraftKings on bringing a continual stream of betting content to their customer base, especially at this time when there is limited live sports content available.”

Also covered by the deal is Inspired’s new V-Play NFLA Legends Football and V-Play Basketball. NFLA Legends is officially licensed by the NFL Alumni (NFLA), and features all-time favourite NFL legends.

AYO.NEWS says:

With COVID-19 crisis looking set to disrupt traditional sports for many months, or possibly even years, sports betting operators are being forced to pivot rapidly to virtual sports and esports in an attempt to survive. Inspired, which was already a leader in the virtual sports field, is clearly stepping up with an ever-improving offering.

Of course, the question is, will virtual sports, which are still ultimately just RNG-based games of chance, really retain an appeal to sports betting fans who are passionate about studying their teams and making bets based on statistics and data, or are they simply a slick looking novelty right now?

Staying with Inspired, at the start of this month we reported the company had announced measures to protect its business during the COVID-19 (coronavirus) crisis, furloughing staff, and cutting hours and pay.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

The sports betting industry in Nigeria has been experiencing exponential growth in the last few years, with more and more betting companies populating the market, and more people taking to sports betting on a daily basis.

Nigeria has the second largest online gambling market in Africa, behind South Africa, with an estimated 60 million people between the ages of 18 and 40 involved in sports betting activities in the West African nation. The total betting expenditure stands at around a staggering $2 billion per year, and those figures are showing no signs of slowing down.

One thing is for sure, new customers will not be lacking for choice. According to MyBettingSites Nigeria, a website that reviews and ranks bookmakers in the country, there are over 50 betting companies currently operating in Nigeria. There is a good mix of local and international sites, with Bet9ja and NairaBET spearheading the local challenge, while Betway and 1xBet lead the foreign contingent.

The rapid increase in the number of betting sites in Nigeria has naturally led to an extremely competitive market, with bookmakers diversifying their portfolio to gain their share of the large pool of new customers.

Why has Nigeria become very viable for betting companies?

Nigeria provides a very fertile ground for betting companies, with most of these bookies generating millions of dollars in revenue every year. A recent report on international accounting firm, KPMG, showed that Bet9ja has an average monthly turnover of $10 million.

But what has made the Nigerian betting market so attractive and productive for these bookmakers?

Large population

Home to over 200 million people, Nigeria is the most populous country in Africa and the seventh most populous nation in the world. Betting companies are very reliant on numbers, and they get numbers in abundance in Nigeria.

Football-crazy country

Nigeria does not only have a massive population, but the people are also crazy about their sports, especially football. The country is arguably the biggest footballing nation in Africa, and the fans are amongst the most passionate in the world. Nigeria has one of the most followed national teams, and has produced some of the best players to have ever played the game.

Nigerians do not only follow the Super Eagles with gusto, they are also very knowledgeable and fanatical about European football. Top leagues like the English Premier League and the Spanish La Liga are hugely popular, with clubs like Manchester United, Arsenal and Barcelona enjoying huge fan bases in the country. It’s very easy to see why football betting is a huge sell in Nigeria.

Increase in availability of internet and mobile phones

The boom in sports betting in Nigeria has coincided with the sharp technological advancement in the country, with many Nigerians now owning smartphones and having easy access to the internet.

Gone are the days when Nigerians had to visit game houses, leaving with long betting slips in hand. Most of the people can now wager from the convenience of their phones. Betting companies have responded to this by designing more mobile friendly apps and enhancing their mobile features. The ease of sports betting and the entertainment it involves appeals greatly to Nigerians.

Convenient deposit methods

Another great reason for the surge in sports betting in Nigeria is the speed and convenience with which money can be deposited into betting sites online. Once you have a bank account and a bank card, which is very easy in Nigeria, you can easily fund your betting account through card deposits or online banking.

Get ready for more growth!

The betting industry in Nigeria will only continue to grow, so you can expect more companies to flood the country in the coming years, and the financial figures to keep hitting new heights.

Since passing its sports betting bill in 2017, Pennsylvania has become one of the most successful gambling states in the US. In fact, Pennsylvania’s gambling revenue is ranked second only to Nevada.

A lot has changed since PASPA, the act that made sports betting illegal throughout the US, was overturned. Pennsylvania was quick on the bandwagon to pass it’s own sports betting bill, while also legalizing online gambling. You can find out more about Pennsylvania online gambling at https://www.pennsylvaniagambling.info/. The Keystone state is now one of the few states where all forms of gambling are legal.

While it may only be in its infancy, Pennsylvania’s gambling scene flourished early on. In December, Pennsylvania’s sports betting handle reached $1 billion as sportsbooks marked their first birthday. The outlook for 2020 was promising, as online betting was showing positive growth.

However, February’s figures were disappointing, and since the COVID-19 pandemic has led to most sports being cancelled, there are few options left for customers to bet on. As one of sport betting’s most important calendar events in the US, March Madness was set to generate vital revenue for the industry.

Elsewhere in the world, competitions like the Tokyo Olympics and Euro 2020 have been postponed until further notice.  With athletes and teams unable to practice or play to crowds, betting prospects seem likely to get worse before they get better.

Casinos are also witnessing a significant dip in revenue. Closures have added to the financial insecurity facing businesses and their employees. Penn National Gaming recently announced that it would furlough 26,000 employees, as well as sell off real estate assets. Many other casinos across the US are following suit, as they aim to liquidize their assets.

Since March 17^th, all of Pennsylvania’s real-life casinos have been shut. Stay at home orders first began from March 22^nd onwards, with that rule being extended to all of Pennsylvania on April 1^st. While physically going to a casino is no longer an option, that doesn’t mean that people won’t be able to gamble. Online gambling is expected to rise, as bettors stave off boredom at home.

The National Council on Problem Gambling has warned of an increased risk of problem gambling while people are in self-isolation. Experts are concerned that the coronavirus outbreak will worsen some of the factors that can trigger problem gambling, such as anxiety and depression. Stress related to financial and health problems can also make it harder to manage gambling problems.

Campaigners have criticized operators for taking advantage of the situation by increasing marketing for online gambling options, such as slots. From the operators’ point of view, revenue needs to be boosted wherever possible to make up for losses. However, more gambling ads on social media mean that it will become increasingly difficult for problem gamblers to keep wagering under control.

While coronavirus has definitely made things more complicated for the industry, it is not uniquely responsible for low sports betting profits. Figures from the Pennsylvania Gaming Control Board show that revenue was down in February, before the virus lockdown began.

February’s sports betting handle came to $329.8 million, which was down by 5.3% compared to the previous month. This figure marks the first monthly decline since the market was originally launched. Retail wagering also dropped by $4.1 million, and the online handle dropped by $18.5 million.

The negative picture continued with startling figures in overall betting, which fell by around 80%, to $4.7 million. Retail and online revenue fell, while land-based casinos rose by 13.75%. Overall, land-based slots revenue was up, with table games also doing well.

While February’s figures show that certain ventures may be peaking, the widespread closure of casinos and sportsbooks will cause the most damage. It is not yet known when casinos and sportsbooks will be allowed to reopen, but it is likely to be a matter of months rather than weeks.

Even when gambling premises do reopen, it wont be business as usual. In Macau, casinos have already reopened. However, staff and customers must keep to strict precautions to avoid spreading the virus. Temperatures are checked before entry to the casino and masks must be worn at all times. Social distancing is still a key strategy, with many casinos choosing to switch off every other slot machine.

It is likely that when Pennsylvania’s casinos and betting shops reopen, similar rules will need to be put into place. Limiting the number of customers allowed in a building at a time could hurt business, but will be essential to avoid crowds. It is possible that with these types of rules in place, customers will simply choose to carry on gambling online instead.

Online operators are expected to weather the outbreak better than their land-based counterparts. While cancelled sports events mean there are few events left to bet on, online casinos will divert customers to other popular options. Slots are the obvious option that bettors will turn to, but other suspects like e-sports and virtual racing could stand to benefit too.

In welcome news for embattled American bookies, West Virginia could become the first US state to allow political betting.

According to the West Virginia Lottery, officials have initially approved a plan to let FanDuel and other operators offer political wagers, which could very lucrative with the Trump-vs-Biden race heating up.

Officials are still assessing the proposals in detail, but things are looking up. In fact, FanDuel was apparently so convinced it had already been given the green light, that it briefly began offering presidential election bets, before withdrawing them after just 40 minutes and refunding punters!

Interestingly, during the brief election offering, FanDuel put President Donald Trump as favourite at -100 for re-election, with probably Democratic nominee Senator Joe Biden at  +125.

FanDuel’s arch-rival, DraftKings has said it “excited about the possibility of offering odds on politics and elections” but will thoroughly evaluate any opportunity before posting lines.

AYO.NEWS says:

With betting operators struggling to offer a varied line-up during the ongoing COVID-19 pandemic, and the presidential race being a huge event in the US, political betting could prove surprisingly lucrative for US sportsbooks.

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.

Kambi, the sports betting and technology services company, is taking drastic action to protect its business from the COVID-19 (coronavirus) crisis, deferring salaries and applying for government support.

The company has confirmed it is applying for financial support from both the Swedish and UK governments, while its board members, CEO, and executive management have also agreed to defer salaries by 20%, 15%, and 10% respectively. The company has also frozen recruitment.

Several costs have also been lower due to the lack of sporting events, including marketing and data costs. In all, the cost savings and reductions are expected to mean operating expenditure in Q2 2020 will be 10-20% lower than in Q4 2019.

Kambi says that, despite worldwide sports cancellations hitting from mid-March, it had a “strong” first quarter, with revenue expected to come in at around €27.5-28m, and its cash balance standing at approximately €45-47m.

However, the company said in the last week revenue has been a mere 25-30% of that seen in the last quarter of 2019. It also warned that, if the sporting calendar remains severely affected, it would lead to an average quarterly outflow of €7-€9m from Q2 onwards.

Reflecting on the situation Kambi CEO, Kristian Nylén, commented:

“Kambi is a technology company powered by skilled and experienced people, all of whom have helped establish Kambi as the global market leader, and who will be pivotal to us pushing on further in the coming years.

“Therefore, it is in Kambi’s long-term interests to retain these staff while also reducing our costs, including payroll, and I firmly believe we have found the right balance in order to achieve this goal. When sports resume, we are ready to gear up to normal activity immediately, and in the meantime, we are being creative and agile in order to offer a high-quality and compliant service to our partners and their end users.”

AYO.NEWS says:

With its massive exposure to global sports, Kambi was always going to be hit hard by the COVID-19 (coronavirus) crisis. With several countries, including the UK, extending lockdowns well into May, and the prospect of a very gradual easing of restrictions, that could take many months, this year is going to be hard for sports services and tech suppliers.

Over the past two weeks we’ve seen many companies, including Inspired Entertainment, Scientific Games, Svenska Spel, and SIS take similar action to protect their businesses during the crisis. 

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.

All original content featured on this site is © Pentagon Digital Limited, 2020.