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WEEKFRIDAY 27 AUG 34 2021

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NO ROAD THIS WEEK • Another record quarter TO YOKOHAMA: for Better Collective • Simplebet – one to “IR AS GOOD AS DEAD watch out for FOR NEXT SEVEN • A little on the side for Scientifi c Games YEARS” • UK betting shops leading the way in age verifi cation?

GUEST COLUMNIST: • Shivan Patel, Commercial Director, Pariplay See also page 3 New hires for GambleAware; GamCare reports rise in problem gambling Sponsored by

Much ado about nothing as Yokohama backs out of its Integrated Resort bid in . Will the casino ever open?

Japan has surely been the talk of the town... or shall with boycotts and petitions to stop the process, one say the talk of Asian gaming. The prospect of the plan to cease the idea came as a surprise given Japan opening an integrated resort (IR) is an exciting notion earlier this year four cities in Japan that were interested; for casino-goers and companies alike. The cogs of this plan Wakayama, Osaka, and Nagasaki, along with Yokohama, have been turning for decades, since the millennium. were all preparing their schemes to pitch to the However, despite the Governor of Tokyo’s proposition central Government. way back in 2000, the idea didn’t quite swing into motion. However, Takeharu Yamanaka has now been elected Building an IR would undoubtedly set the country by the new Mayor of Yokohama. Yamanaka was an storm, especially considering most forms of gambling in anti-IR candidate. Japan are banned under the Criminal Code, chapter 23. Yamanaka had campaigned on a promise to repeal Only seven types of ‘semi-gambling’ activities are legally plans to host an IR in Yokohama and won by nearly 34% permitted. And rest assured, it isn’t as glamorous as going of votes, clearing the 25% threshold of the number of to a Vegas property, or any property for that matter. ballots needed to avoid a second round. These forms of gaming go by the names of: Keiba There is still a long road ahead before any finalisations (Horse ), Takarakuji (Lottery), (Bicycle racing), are put in place, especially for Yokohama, but it looks Toto (J-League soccer pools), Kyotei ( racing), like there is no IR road ahead for the region. Mahjong (a domino’s style tile game) and... Pachinko, Daniel Cheng, a gaming and hospitality expert with an extremely growing game of popularity among experience in Japan, summed it up best: “Yokohama IR is Japanese men and women. as good as dead at least for the next seven years.” The city had two remaining potential partners for its IR; Melco Resorts & Entertainment and Genting “Yokohama IR is as good as dead Singapore, but with this clear sign the city will withdraw from the race, the companies are left without at least for the next seven years” a partner in Japan. – Daniel Cheng Currently, the remaining three cities have maintained their bids (Osaka, Wakayama and Nagasaki). Osaka has since partnered with MGM Resorts International and In short; it’s a slot-like concept played with steel balls Orix Corp consortium, Wakayama will work with Clairvest, and no cash prize. and Nagasaki chose Casinos Austria as its partner. Yep, you heard. Players collect as many balls as possible GI Verdict: Yamanaka commented on his exit strategy and on completion (or exhaustion) they receive a ticket. by firmly stating: “We will issue a formal statement soon This ticket can then be redeemed for prizes and, as making it clear that Yokohama will not make a hosting bid,” gambling for cash is illegal in Japan, therefore receiving meaning the roadmap to an IR doesn’t look promising any a cash prize in the same parlour you played is prohibited, time soon for Yokohama. these tickets can be redeemed for cash elsewhere in This, naturally, is a shame, as Japan’s Government had another parlour. No rules or laws are being broken... several candidates vying for IR licences throughout the Sneaky, or pure genius? country; but with so many cities dropping out of the race, So, with Pachinko being Japan’s gaming vice, it’s no it’s now unclear if the remaining candidates will all receive wonder people started to consider an IR, not only for permits or if there could yet be a further change in plans. revenue but for entertainment. Earlier this year the The excitement of the new resorts seems to have bidding process for three IRs came into traction, plummeted into an amalgamation of difficulties, delays, commencing with policies stating that casinos must setbacks and high costs, suggesting it is starting to turn include convention space, entertainment, shopping, into a disappointing series of events. and hotel rooms. A resort. However, given the world’s position, sitting on a The original plan was for the resorts to be completed post-pandemic way of life, a boost in economy is exactly and set to open after the Tokyo 2020 Summer Olympics, what geographic areas need; and Yokohama would be wise but inevitably it’s set to take a few more years since both to promote a ‘business as usual’ approach with innovation the games and the casinos were delayed, and, as especially by means of staying on board with the new IR. since Yokohama has now pulled out of the deal. The show must go on, just perhaps a little later than planned Although many citizens were not in favour of a casino, in certain Japanese regions; and maybe not at all in others... Sponsored by THIS WEEK IN NEW HIRES FOR GAMBLEAWARE; NUMBERS GAMCARE REPORTS RISE IN 50% PROBLEM GAMBLING GambleAware has announced establishing, developing, Rank Group’s the appointment of a new and maintaining a coordinated network underlying net Chief Commissioning Officer, Chief of services, including the expansion of the gaming revenue (NGR) has fallen Communications Officer and Chief National Gambling Treatment Service.” 50% to the value of Operations Officer to its senior team. GamCare, meanwhile, has warned £288.2m ($394.3m) The new individuals met the about the impact of the return of live required criteria and objectives for on problem gambling. GambleAware’s five-year organisational Calls to the National Gambling strategy. A heavy commitment applies Helpline increased by 28% during to working in the public health sector, Euro 2020 compared to the same 2028 including NHS England and Public time period last year. Health England. GamCare, the charity that runs the Sportradar and Anna Hargrave, previously an NHS service, says the statistic shows live FanDuel have extended their worker for over 13 years, has been can lead to a rise in dangerous partnership for an appointed GambleAware’s new Chief gambling behaviour. additional seven Commissioning Officer. Over half of the helpline’s advisors years, through Commenting on her new role, she said they have spoken to a recovered to 2028 said: “I am deeply passionate about gambler who relapsed during the reducing health inequalities in the UK, tournament, which took place from and minimising the impacts of gambling June to July earlier this year. And some harm on people and their families is a advisors reported the extreme lengths key component of this. some customers took to place bets 25,000+ “I am pleased to have been given the throughout the competition, including opportunity to share my skills of working using their children’s phone to avoid The Macau within the health and care system gambling blocks they had placed on Government and Tourism O ce with GambleAware, and look forward their own devices. expects more than to working with the charity and other “Certainly people who’ve had 25,000 visitors per public health agencies, local authorities gambling issues in the past tell us that day during the and organisations to help reduce it really impacts on their ability to watch October Golden Week gambling harms.” sport. Partly because it’s triggering and Alexia Clifford, Marketing Director at partly because of (gambling companies’) Public Health England (PHE), will take sponsorship and advertising,” said on the role of Chief Communications GamCare Chief Executive Anna Hemmings. Officer: “I am thrilled to be joining “If you’ve got a consistent run of €55.8m GambleAware, and to play my part in matches and different sporting activities delivering its vision of a society where going on, that’s a risky time in terms In Q2 revenue ($65.1m) for people are safe from gambling harms. of gambling escalation. It’s easy for supplier Aspire I look forward to bringing my skills gambling to get more frequent and Global, a 28% and expertise to this crucial public for longer sessions.” year-on-year rise health priority.” GI Verdict: The appointment of Zoë Osmond, GambleAware’s Chief respected and qualified professionals Executive, said on the expansion of the to GambleAware should no doubt help team: “We are very pleased to the body in tackling problem gambling, welcome our new senior leaders, each of with their combined experience a real 2 whom brings with them invaluable skills asset in this challenging time for many and knowledge in areas integral to the who struggle with addiction. Pennsylvania has successful delivery of our new five-year But GamCare’s update on the rise of become the second organisational strategy. problem gambling with the return of state to launch Digital Gaming Corporation “We are working hard to drive forward live sport is a timely reminder that content via BetMGM GambleAware’s new program of operators cannot for a second ignore and Borgata work, which demonstrates leadership in vulnerable customers. 2023 BETTER COLLECTIVE REPORTS 162% INCREASE IN Q2 REVENUE Better Collective has reported revenue financial targets remain unchanged. The Vanarama National League of €40m ($47m) for the second quarter “Q2 marks yet another record quarter has announced of 2021, a 162% increase from the in terms of revenue and NDCs delivered Kindred Group- prior-year period. to our partners,” said Better Collective owned 32Red and EBITDA grew 90% year-on-year to Co-founder and CEO Jesper Søgaard. “At Unibet as partners €12.7m, with cash flow from operations the same time, we continue to record for the 2021/22 and 2022/23 seasons increasing by 7% to €11.1m. New strong profitability and cash flows. Depositing Customers (NDCs) were “The strong performance is especially 197,000 for the period, representing driven by the US business, and by record quarterly growth of 179%. our media partnerships that saw Class 2 The affiliate signed three new breakthrough performance during Q2. media partnerships, while Therese The peak of the quarter was the Delasport, the sports Hillman, CEO of NOD and former closing of our largest acquisition to betting and online casino Group CEO of NetEnt, was elected to date, Action Network, which is a game supplier, has announced the acquisition of its the board of directors at the AGM. changer and consolidates our leading Romanian Class 2 licence For the first six months of 2021, sports betting media position in the US.” Better Collective reported revenue GI Verdict: When you think of leading of €78.8m, a 118% increase from the iGaming affiliates, Better Collective, prior-year period. EBITDA increased by Catena Media, XLMedia and perhaps 28% 64% to €25.9m, while cash flow from the likes of Raketech and Acroud operations increased by 37% to €27.2m. come to mind. Better Collective, Drop in NDCs for the period exceeded 371,000, a serial acquirer of affiliate brands, has Pennsylvania a growth of 99%. continued to provide significant return sports betting handle for the The group added that July revenue to its shareholders – and there really month of July, reached €12.4m, more than double isn’t that much more you can add to a to $304m the prior-year period, while its full-year clean set of financial results like this. Sponsored by

THE WEEK IN QUOTES DRAFTKINGS SIGNS MULTI-YEAR AGREEMENT WITH SIMPLEBET TO LAUNCH REAL MICRO-BETTING PRODUCTS Simplebet has announced a multi-year We look forward to the successful agreement with DraftKings as it aims to roll-out and to showcasing the “Jim has been one of the most launch real-money micro-betting across excitement that comes with prominent and influential figures across the DraftKings Sportsbook. micro-betting.” the gaming industry over the past two This partnership will allow DraftKings’ Paul Liberman, President, Global decades and we couldn’t be more excited customers to engage with wagering, Product and Technology at DraftKings, to welcome him to our Board.” play-by-play, throw-by-throw and said: “We’re excited to be working with pitch-by-pitch. DraftKings will offer Simplebet to change the in-game betting Chris Bevilacqua, Co-Founder and Simplebet’s micro-betting products for experience for our customers and, CEO of Simplebet, on Former MGM the NFL, MLB and NBA alongside a together, changing the way sports Resorts CEO Jim Murren joining the supplier’s Board of Directors new suite of college football products. fans engage with their favorite sports.” Simplebet’s funding round of $50m Simplebet is already in partnership earlier this year will be used to enhance with several big-name US brands, its existing products, with the addition of including DraftKings rival FanDuel. derivative micro-markets. To achieve this, GI Verdict: Simplebet is one of the there will be an addition of new sports rising North American firms to watch “We’re very proud to be partnering and subcategories such as scripts, out for. It is little surprise it has partnered with RSI, a highly acclaimed US operator, expansion of engineering resources and with several big-name US brands already. to debut our very successful Red Tiger other strategic opportunities. Its technology is a genuine game-changer games in Michigan.” Chris Bevilacqua, Simplebet Co-Founder – from an objective point of view – as it and CEO, said: “We’re thrilled to be creates so many new revenue streams for Jeff Millar, Commercial Director, launching our real-money micro-betting operators. Long term, the only obstacle North for Evolution, products with DraftKings, these types of may be how Simplebet can prove it discusses the supplier’s partnership offerings represent the next evolution encourages responsible gambling. with Rush Street Interactive (RSI) of sports betting and deliver enhanced Allowing players to bet on every pitch opportunities for operators and fans alike. opens the door for massive player losses... Sponsored by

SCIENTIFIC GAMES ACQUIRES SIDEPLAY ENTERTAINMENT “We are excited to start our journey TO EXPAND DIGITAL LOTTERY into the US. It’s a huge challenge and Scientific Games has announced our iLottery offerings for our customers a wonderful opportunity for us. an agreement to acquire Sideplay and their players.” With this expansion we want to cement Entertainment. Through this acquisition, Scientific Games also recently acquired our position as a leading iGaming hosting the supplier aims to grow its digital Lightning Box Games, with Lightning Box provider on a global scale.” portfolio of lottery content and CEO Peter Causley speaking exclusively to expand its share in lottery markets. Gambling Insider about the deal. Pat McHugh, Lottery Group Chief Meanwhile, Hickson, Founder and Rickard Vikström, Founder and Executive for Scientific Games, said: Director of Sideplay, commented: “All CCO of Internet Vikings, on the “We’re excited to welcome Steve of us at Sideplay are thrilled to be joining firm’s US expansion Hickson and the entire Sideplay team forces with Scientific Games Lottery Group. to Scientific Games Lottery Group, “Our goal has always been to be the to help us advance our strategy as a best at what we do, and this transaction growth company, delivering the best shows we have in fact achieved that retail and digital content platforms and level of success. We are excited to game category services that maximise leverage Scientific Games’ global lottery “We look forward to continuing to grow proceeds for our lottery customers. footprint and create the future of our US footprint with announcements in “Sideplay’s highly experienced digital iLottery together.” the pipeline that will change the game for game developers have a proven track GI Verdict: Another week and another avid sports fans and bettors. This is an record of delivering iLottery content acquisition for Scientific Games. This deal exciting moment for Tipico as we to market quickly. We have already will no doubt fall more under the radar continue to add new features.” integrated Sideplay’s digital games than the Lightning Box purchase but into our iLottery platforms, it’s an interesting takeover nonetheless, and combining their unique approach given the lottery angle. Scientific Games Adrian Vella, CEO, Tipico US, to game development for Scientific is looking to sell off its lottery arm as a comments on Tipico’s continued Games’ more than 20 iLottery public business – so where does Sideplay growth within the US market customers worldwide will accelerate fit into the overall picture? Sponsored by

TAKING STOCK DATA SUGGESTS UK BETTING SHOPS ARE LEADING THE WAY FOR AGE VERIFICATION SHARE PRICES COVER THURSDAY 19 UK betting shops have better age Executive Michael Dugher. AUGUST TO THURSDAY 26 AUGUST (12:00PM GMT) verification checks than convenience “By any measure, age verification stores, supermarkets and petrol standards have improved since they were forecourts, according to data released first introduced and once again betting Better Collective by independent analysts Serve Legal. shops are leading the retail sector in 8% 182.20 SEK Serve Legal carried out spot checks to terms of compliance. test whether or not secret shoppers are “I want to pay tribute to betting shop asked to show if they are 18 or over, staff who, like other retailers, have endured at any point during their visit, with the a very challenging year of closures, DraftKings 16% 60.11 USD shop scoring a pass if a customer is restrictions and fast-changing Covid-19 asked to prove their age. guidance. Despite those pressures, A total of 90% of betting shops have they have remained absolutely focused passed in 2021 so far, compared to 83% of on ensuring the safety of customers and convenience stores, 77% of supermarkets, the protection of young people.” Scienti c Games 14% 74.75 USD and 76% of petrol forecourts. GI Verdict: It is always difficult to Moreover, when the tests were first assess research put forward by the BGC. introduced, a total of 67% of betting Critics will slam the BGC as the industry’s shops passed, “a sign of the huge mouthpiece, and there is certainly a very progress they have made in recent PR-ey, self-congratulatory feel to this Elys Game Technology 2% 4.13 USD years,” a statement from the Betting and latest research. On the other hand, though, Gaming Council (BGC) read. given the criticism the industry faces “Regulated BGC members have a zero and the huge effort put into areas like tolerance approach to under-18s betting age verification (in comparison to and I am delighted to see that the age other, lesser-regulated industries), Evolution 6% 1,465 SEK verification systems in place in betting maybe the BGC is right to shout about shops are robust,” said BGC Chief our sector’s achievements? Provided by fantiniresearch.com

RIVERBOATS JULY V 2019 RIVERBOATS REVENUE(M)JULY V 2019 RIVERBOATS REVENUE(M)JULY V 2019 JULY REVENUE REPORT: RIVERBOATSL'Auberge Baton Rouge (PENN) REVENUE(M) $ 16.323JULY + V41.06 2019 LOUISIANA L'Auberge Baton Rouge (PENN) REVENUE(M) $ 16.323 + 41.06 L'Auberge Baton Rouge (PENN) $ 16.323 + 41.06 HollywoodL'Auberge Baton B.R. (GLPI) Rouge (PENN) $ $16.323 5.947 + 41.0636.92 Louisiana gaming revenue rose 16.93% to Hollywood B.R. (GLPI) $ 5.947 + 36.92 L'AubergeHollywood LC B.R. (PENN) (GLPI) $ $32.043 5.947 + 29.5236.92 $294.935m for July vs. the same month in 2019 L'AubergeBoomtown LC N.O. (PENN) (PENN) $ 10.97732.043 + 24.7629.52 with growth in all segments. L'AubergeBoomtown LC N.O. (PENN) (PENN) $ 10.97732.043 + 24.7629.52 Boomtown N.O. (PENN) $ 10.977 + 24.76 Excluding shuttered Legend’s Diamondjacks BoomtownMargaritaville N.O. (PENN) (PENN) $ 17.73510.977 + 24.3524.76 and temporarily closed Caesars’ Isle of Lake EldoradoMargaritaville Resort (PENN) (BALY) $ 11.31117.735 + 24.3514.50 Charles, revenue from riverboats grew 15.55%. Eldorado Resort (BALY) $ 11.311 + 14.50 GoldenEldorado Nugget Resort - (BALY) LC $ 11.31131.484 + 12.6114.50 Golden Nugget - LC $ 31.484 + 12.61 BoomtownGolden Nugget Bossier - LC (PENN) $ $31.484 4.598 + + 12.61 8.09 Boomtown Bossier (PENN) $ 4.598 + 8.09 BoomtownAmelia Belle Bossier (BYD) (PENN) $ 4.5983.500 + - 8.090.84 Amelia Belle (BYD) $ 3.500 - 0.84 HorseshoeAmelia Belle (CZR) (BYD) $ $14.835 3.500 - 3.190.84 Horseshoe (CZR) $ 14.835 - 3.19 HorseshoeTreasure Chest (CZR) (BYD) $ $14.835 8.049 - 4.363.19 Treasure Chest (BYD) $ 8.049 - 4.36 Sam'sTreasure Town Chest (BYD) (BYD) $ 5.5638.049 - -15.52 4.36 Sam's Town (BYD) $ 5.563 - 15.52 Sam'sBelle of Town B.R. (CZR)(BYD) $ 1.5075.563 - 30.2515.52 Belle of B.R. (CZR) $ 1.507 - 30.25 BelleDiamondjacks of B.R. (CZR) (Legends) $ 1.5070.001 -- 99.9930.25 Diamondjacks (Legends) $ 0.001 - 99.99 IsleDiamondjacks - LC (CZR) (Legends) $ 0.001nil -100.00- 99.99 Isle - LC (CZR) nil -100.00 Riverboats Total $163.872 + 7.30 Riverboats Total $163.872 + 7.30

LAND-BASED JULY V 2019 LAND-BASED REVENUE(M)JULY V 2019 LAND-BASED REVENUE(M)JULY V 2019 LAND-BASEDHarrah's N.O. (CZR) REVENUE(M) $24.738JULY + V21.20 2019 Harrah's N.O. (CZR) REVENUE(M) $24.738 + 21.20 Harrah's N.O. (CZR) $24.738 + 21.20

SLOTS AT TRACKS JULY V 2019 SLOTS AT TRACKS REVENUE(M)JULY V 2019 SLOTS AT TRACKS REVENUE(M)JULY V 2019 SLOTSLouisiana AT TRACKS Downs (CZR) REVENUE(M) $ 4.538JULY + V20.82 2019 Louisiana Downs (CZR) REVENUE(M) $ 4.538 + 20.82 Louisiana Downs (CZR) $ 4.538 + 20.82 EvangelineLouisiana Downs Downs (CZR) (BYD) $$ 4.5387.402 + 20.8211.07 Evangeline Downs (BYD) $ 7.402 + 11.07 FairEvangeline Grounds Downs (CHDN) (BYD) $$ 3.8627.402 + + 11.07 9.37 Fair Grounds (CHDN) $ 3.862 + 9.37 FairDelta Grounds Downs (BYD)(CHDN) $16.576 $ 3.862 ++ 8.929.37 Delta Downs (BYD) $16.576 + 8.92 Slots at Tracks Total $32.378 + 11.00 Slots at Tracks Total $32.378 + 11.00

ROUTES, TRUCK STOPS $73.947 + 48.10 ROUTES, TRUCK STOPS $73.947 + 48.10 State Total $294.935 + 16.93 State Total $294.935 + 16.93

MULTIPLE PROPERTIES JULY V 2019 MULTIPLE PROPERTIES REVENUE(M)JULY V 2019 MULTIPLE PROPERTIES REVENUE(M)JULY V 2019 MULTIPLEPenn National PROPERTIES REVENUE(M) $81.676JULY + V 28.37 2019 Penn National REVENUE(M) $81.676 + 28.37 Penn National $81.676 + 28.37 BoydPenn National $81.676$41.090 + + 28.37 1.68 Boyd $41.090 + 1.68 CaesarsBoyd $45.618$41.090 +- 7.591.68 Caesars $45.618 - 7.59 SHIVAN PATEL, non-unified tools from other vendors. If operators are COMMERCIAL handed a solution that supports multiple vendors, while DIRECTOR, handing granular control, this means they are able to PARIPLAY configure any game of their choosing, regardless of the supplier, while selecting the relevant currency and language options. As regulated markets continue to open up Patel explains worldwide, offering the widest breadth of content (tailored the importance of to a specific locality) is vital, as is getting to market quickly. e ective, measurable Such a solution can cover both of these goals. promotional tools Ultimately, the success or failure of any promotional campaign rests on effective, meaningful analytics and reporting. Across many organisations, the extraction It has never been more crucial for of relevant data through multiple platforms can be operators and game suppliers alike to implement effective problematic, involving a complex set of integrations of methods for engaging players. third-party systems. Once again, I see a unified approach to Across the world, various factors have come into play to data, with a reporting engine collating information into make markets increasingly saturated. The widespread shift a single console, as being the way forward for modern-day to digital – a process which would have occurred organically, operators needing to focus resources on marketing and but at a slower rate – has accelerated hugely as a result of player acquisition. the pandemic and the closure of land-based operations. In terms of the types of promotional tools that are proving We continue to see a scramble for supremacy in the to be successful at the moment, tournaments certainly nascent and potentially huge US online market, too, while continue to rank near the top of the list. Competitive tighter regulations across the world have served to increase gaming adds excitement and a social element to the the need to maximise player value. player’s journey; and on the operator’s behalf, a provider In this ultra-competitive environment of the modern can typically offer this at no extra cost. This naturally leads day, I believe it is crucial that engagement methodology is on to increased gross gaming revenue and customer lifetime driven by data. Implementing the right promotional tools value for the operator, due to players being engaged, now can make the difference between success and failure motivated and rewarded. Tournaments are best implemented for many years to come. as a single tool, built to deal with the various regulatory As I see it, the future shape of bonusing will be defined requirements for each jurisdiction. Whether considering by a seamless user experience. Most operators today do tournaments, free spins or other bonus types, the unifying not work with a single platform or game vendor and while crucial factor that can differentiate a provider is the offering many of the individual tools may be effective on their own, of out-of-the-box functionality for any third party, with a a cohesive and frictionless playing environment is absent. seamless cross-platform UI, effective segmentation and In this sense, a unified, configurable bonus engine that flexible rewards for players. creates entertaining experiences regardless of game Predicting the future is always a difficult task but as I vendor will serve as a distinct competitive advantage. see it, the direction of travel for promotional tools is one The fact that very few operators work within a single that will be data-driven. Improved analytics will result in market, platform or currency, means that attempting to players being offered increasingly personalised and relevant configure all of their content providers to a set of specific incentives that can be launched quickly; for increased requirements and managing this process is extremely engagement and retention, and to the benefit of challenging. That is especially so given a set of disparate, all stakeholders.

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