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UKGC RELEASES DAMNING FINDINGS OF PT ENTERTAINMENT SERVICES INVESTIGATION

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UKGC RELEASES DAMNING FINDINGS OF PT ENTERTAINMENT SERVICES INVESTIGATION

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Image credit: UKGC

The UK Gambling Commission (UKGC) has released the findings of its investigation into the now defunct PT Entertainment Services (PTES) online betting group. 

PTES was a Playtech B2C subsidiary, and operated brands including winner.co.uk and Titanbet, before surrendering its UK license after the UKGC launched an investigation for social responsibility and anti-money laundering failures. 

The UKGC stepped in and launched the investigation in May 2019, after being contacted by the family of a gambling addict who committed suicide in April 2017. The UKGC went on to discover serious, systematic failings at the PTES. 

Specifically, the Commission found that despite the customer displaying problematic behaviour, PTES brands continued to engage them, while failing to carry out any responsible gaming interactions. 

Investigators also found that PTES representatives had offered the victim, and other high spending customers, VIP status, without conducting financial or affordability due diligence. 

Commenting on the case UKGC Chief Executive, Neil McArthur, said:

“This is a tragic case which came to light after I was contacted by the family of the young man who very sadly took his own life.  I want to thank them for their bravery in bringing his case to our attention and we are grateful for the way they have worked with us in such terrible circumstances so that we could understand what happened.”

 

Before surrendering its operating license, PTES had apparently made several financial settlement offers to the UKGC, but none were deemed sufficient. According to the UKGC, had PTES not already terminated its UK license, it would have been subject to a £3.5m financial penalty, and possibly other sanctions. 

In the event, PTES did donate £619,395 to charities working to reduce gambling harm. Parent company Playtech has also committed to donate a further £5m to mental health and gambling-related harm charities over the next five years. 

Individuals connected to the PTES license continue to be investigated. 

 

AYO.NEWS says:

Despite the historical nature of this case, this news couldn’t come at a worse time, with online gambling under increased political and public scrutiny due to the COVID-19 crisis. 

Predictably, British mainstream press, including the Daily Fail, is all over this story, whipping up public anger and calling for blood, and many commentators demanding online gambling be banned. 

Cases like this can only increase the likelihood that the UKGC will ban VIP promotions and introduce further restrictions on marketing. 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

With several years experience in the igaming and sports betting industries in Malta under his belt, over the last few years Oliver has developed a passion for blockchain and an interest in esports. He’s also a published novelist and has a background in art and photography.


Sports Betting

SPORTS SPONSORSHIP AGENCY SUES LIVERPOOL FC FOR £1.1M OVER BETVICTOR DEAL

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English Premier League leaders Liverpool FC are being sued by sports sponsorship agency Winlink for a reported GBP £1.1m. 

According to SBC News the dispute, which is being heard at the High Court, involves Gibraltar-based bookmaker BetVictor’s £15m sponsorship of Liverpool’s training kit. 

Winlink claims that it had been “heavily engaged over a number of years in securing a successful introduction,” and that led to BetVictor entering the £5m per year deal between the 2016/17 and 2018/19 seasons. 

However, Liverpool FC are arguing that Winlink were not involved in securing the deal, and that it was the result of work by its former Head of Global Partnerships, Rafaella Valentino – who happens to be a friend of Andreas Meinrad, CEO of BetVictor. 

Proceedings in the case began yesterday, with Winlinks represented by Andrew Sutcliffe QC, who pointed to the agency’s track record of securing bookmaker introductions for clubs including Arsenal, Chelsea, Inter Milan, and Juventus, and receiving commissions for such. 

Representing Liverpool FC, Robert Anderson QC, argued that Winlink’s services played no part in securing the BetVictor deal.

The case is expected to last all week, with the final judgement being delivered, by Judge Mark Pelling QC, at a later date. 

 

 

AYO.NEWS says:

It’s obviously not appropriate to comment on an ongoing case, but needless to say it could have big implications for the business model and viability of agencies like Winlink if it loses the case. 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

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Staying Legit

UK TO CLASSIFY LOOT BOXES AS GAMBLING PRODUCTS?

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© Anton Anton – Dreamstime.com

The UK could be about to reclassify loot boxes as gambling products, causing big headaches for game developers. 

The Department for Digital, Culture, Media and Sport has said it will be looking at loot boxes, which are now a common feature of popular video games like FIFA, and considering whether to reclassify them as a gambling product. 

Many are concerned about the mechanics of loot boxes, which allow players to pay money for random in-game rewards like characters, skins and weapons are encouraging children to develop gambling habits. The fact that loot box winnings can also be exchanged for cash on third-party websites is also worrying some observers. 

According to Labour MP Carolyn Harris, who chairs a cross-party group of MPs investigating gambling-related harm, loot boxes are “a virtually speculative commodity that only help to normalise and encourage young people to take a chance.”

Research published last year, by academics at the University of York, claimed loot boxes are now present in 71% of the most popular titles on the gaming platform Steam – up from just 4% a decade ago. 

If the government does decide to classify loot boxes as gambling, it would force developers to either significantly redesign or completely withdraw many titles from many sales platforms. 

 

AYO.NEWS says:

The loot box ‘controversy’ is one of the most farcical pantomimes of recent times. While no one would condone marketing pure gambling sites to children, for example, the fact is that life is ALL about gambling, and learning to weigh risks and chances. It is a skill that is required for everything in life, from crossing roads to running a business. 

Unfortunately, the ability of young people to effectively assess risk is rapidly disappearing, precisely because of misguided fools like Carolyn Harris MP, who are on an idiotic crusade to shield children and young people from any exposure to “chance.” 

From games like Monopoly to trading cards, it is critical that young people learn about chance through practice. And, as for the trading of loot box contents on third-party sites – what better way for kids to learn about trading and entrepreneurship! 

There will always be those who develop problems in everything, but attempting to wrap young people up in cotton wool is a massive mistake that will have hugely negative consequences in the long term. 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

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Staying Legit

EGBA JOINS OPPOSITION TO FURTHER COVID-19 CRISIS ONLINE GAMBLING RESTRICTIONS

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The European Gaming and Betting Association (EGBA) has joined the campaign against additional ‘temporary’ restrictions during the COVID-19 crisis. 

In a statement, EGBA secretary general Maarten Haijer argued that draconian restrictions like advertising bans and blanket deposit limits will likely do more harm than good, by pushing customers, including vulnerable gamblers, to illegal unlicensed sites. 

Supporting its case, the EGBA pointed to figures from Denmark, where traffic to licensed gambling sites has plummeted 60%, Belgium where it has dropped 38%, and even Sweden, which has seen a 6% fall. 

In a shot across the bow of politicians and regulators, Haijer said:

“We must remember that gambling is human behaviour, consumers will always make their own choices and effective regulation needs to be based on what works well, not what makes good headlines.”

 

Just yesterday we reported that nine high-profile CEOs had issued a statement, through Swedish iGaming trade body BOS, calling on the Swedish government to drop its plans for more restrictions due to the COVID-19 crisis. 

The signatories, which included Betsson AB CEO Pontus Lindwall, Kindred Group CEO Henrik Tjärnström, and LeoVegas Group CEO Gustaf Hagman, pointed to research suggesting that any further restrictions will make the Swedish market non-viable for all current licensees. 

 

 

AYO.NEWS says:

Wherever you stand on the moral rights and wrongs of gambling, the EGBA’s logic seems pretty watertight. In many jurisdictions, especially Sweden and the UK, those operators trying to play by the rules are already being made to jump through hoops and deal with ever-moving goalposts, while on an uneven playing field compared to unlicensed offshore operators.

If regulators and politicians genuinely care about protecting the vulnerable, and encouraging responsible gambling, they absolutely have a moral duty to support licensed operators as they compete against unlicensed ones, not actively conspire to destroy them. 

The truth is that, in many countries, there is a determined, ideologically-driven anti-gambling element that, rather than being honest and arguing their case in the open, is hiding behind the COVID-19 crisis to ram through their agenda. And, does anyone really believe the limits will be ‘temporary?’ 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

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Staying Legit

SWEDISH ONLINE GAMBLING LICENSEES FIRE ANOTHER SALVO AT NEW RESTRICTIONS

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Several major Swedish online gambling licensees have banded together to oppose the Ministry of Finance’s plans for further draconian restrictions. 

In a statement issued by BOS, the Swedish iGaming trade body, nine high-profile CEOs have urged the government to reconsider its “unrealistic proposals”, arguing that they will simply encourage customers to turn to unlicensed operators. 

The signatories of the statement were Pontus Lindwall, CEO, Betsson AB; Henrik Tjärnström, CEO, Kindred Group; Gustaf Hagman, Group CEO, LeoVegas; Therese Hillman, VD, NetEnt AB; Ulrik Bengtsson, Group CEO, William Hill; Lahcene Merzoug, CEO, ComeOn; Alexander Stevendahl, CEO, Videoslots; Tomas Backman, CEO, Hero Gaming and Henric Andersson, CEO, SuprNation.

As we’ve previously reported, elements within the Swedish government, notably Social Security Minister Ardalan Shekarabi, are convinced that the COVID-19 crisis has led worrying trends in player behaviour, which justifies harsh new restrictions. 

However, licensed operators are convinced that any further restrictions, like deposit limits, will simply lead channelsition for online casinos to fall even further, as more players chose to play at unlicensed offshore sites. 

As an alternative, the CEOs have suggested a package of measures that could be taken help promote safer gambling and ensure high standards. These include extending licensing requirements to cover technology provisions, promoting the national self-exclusion register Spelpaus, the integration of an IQ campaign, enhancing data sharing and risk ratings, and extending the gambling regulator’s oversight of marketplace requirements. 

BOS also commissioned consultancy Copenhagen Economics to conduct market research into the issue. Its findings suggested that the government’s current plans risk “losing half the licensed online casino sector,” causing a 63% drop in channelisation demands, and would make the market non-viable for all current licensees. 

Explaining their position, the BOS statement read:

“Neither the Ministry of Finance nor any other stakeholder has presented facts to support the underlying assumption that gambling in general – and play on online casinos in particular – have increased during the covid-19 crisis. In its recent report to the Swedish government, the agency responsible for the Swedish gambling market also confirms it hasn’t detected increased gambling during the coronavirus pandemic.

“The government is aware of the alarmingly low percentage of online casino players who now play within the licensed Swedish system. The government has also seen data from the Swedish Tax Agency that show gambling on horse races – and not online casino gambling – has increased during the coronavirus crisis.

“We share the government’s view that protection for and of players is of the utmost importance. We agree that this work must continue and that together we can create a sustainable gambling market with strong consumer protections. But the work must be based on facts.

“The Ministry of Finance has the opportunity to implement a number of fact-based measures that would improve consumer protections without damaging the important channelization. On the contrary, the channelization would benefit with these measures, which would also strengthen consumer protections.”

 

AYO.NEWS says:

We’ve said it before, and we’ll say it again; it is clear there are some in the Swedish government who are using the cover of the COVID-19 crisis to press ahead with an ideologically driven anti-gambling agenda. While we very much agree with the arguments made by BOS and the signatories of the statement, we can’t help but think they will be falling on deaf ears. 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

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Blockchain & AI

KYRGYZSTAN WAKES UP TO ECONOMIC POTENTIAL OF REGULATED CRYPTO MINING

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Kyrgyzstan could be about to legalise cryptocurrency mining, and introduce a regulated tax framework for operations.

Mining or using cryptocurrencies is currently illegal in the Central Asian nation of around 6.5 million people, and in September 2019 authorities went as far as cutting power to 45 mining firms.

The biggest concern with crypto mining in the country appears to be the strain it puts on the Kyrgyz electricity grid – which is underdeveloped and already has to import a substantial amount of power. 

Despite these concerns, the country’s parliament has recently been debating a proposal to allow crypto mining subject to a 15% tax on profits generated from the sale of mined assets. 

Plans to charge crypto miners a 70% premium on their electricity bills have also been discussed.

 

AYO.NEWS says:

Considering that the Kyrgz Republic is poor, underdeveloped, land-locked, and rather remote, the crypto industry offers a rare opportunity to develop a lucrative new economic sector, so perhaps lawmakers should focus on improving the electrical and internet infrastructure, and encourage international crypto firms to set-up shop there?

Last year Iran also did a u-turn on crypto mining, going from raiding operations to introducing licenses for firms, after the government realised the economic potential of the industry. 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

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Blockchain & AI

NSOFT AND SPORTRADAR ANNOUNCE GLOBAL LAUNCH OF VISION SYSTEM

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NSoft and Sportradar have extended their existing partnership, as they announce global launch of NSoft’s Vision System.

Vision is software based on AI service and face recognition technology, developed by Bosnia-based NSoft. According to the companies, the AI-boosted Video Management System prioritises data utilisation to make better business decisions. It is set to launch in Australia and other markets this month. 

All standard surveillance industry features such as continuous recording, live stream, playback functionality, plus motion recording and motion area search, are covered by Vision, but it is also able to generate data like face recognition, age, gender, and emotion prediction, as well as detect camera frame hotspots and present them as heat maps. 

The system is designed to allow users to identify, categorise, and mark highly relevant customers, and enable companies to spot high-risk individuals or VIP clients, improving the quality of day-to-day business operations. 

Discussing Vision, NSoft’s VP Business Development, Emina Ćehajić, said:

“With Vision, the company doesn’t have to guess what are its customers’ habits – the company knows it, it is already a step ahead.

“Vision is truly an asset in terms of business intelligence and we love what it does for our customers. Over the course of 2019 and in Q12020 we have got excellent feedback from our partner-companies who were insightful to implement the Vision system and its data into day-to-day operations. 

“In a short period of time, they have empowered their businesses by data-driven decision making. I am delighted that Sportradar also recognized the potential of the product and will join us on this exciting journey of global market penetration.”

 

While Global Manager, intelligence and investigation services at Sportradar, Dean Bastin, added:

“The team at Sportradar see the potential that Vision brings to the market, and are excited by this truly innovative product. The practical applications of Vision are endless, especially in the area of sporting integrity and event security where its capabilities will help federations and sporting bodies alike in tackling the unique issues that they face in those areas.”

 

AYO.NEWS says:

Well, the technology sounds intriguing, if not a little creepy – “emotion prediction” and “heat maps!” Given the ever-increasing focus on compliance and integrity these days, we reckon there’ll be a lot of interest in Vision. 

Staying with Sportradar, last month we reported Activision Blizzard had selected the company to ensure the integrity of the Call of Duty League and Overwatch League. 

 

 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 
All original content featured on this site is © Pentagon Digital Limited, 2020

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