SCCG Weekly Newsletter #111
Stephen Crystal
🎲❤️🎰”Top Gaming Industry Voice”. Innovating & “Powering” the Gambling Industry in Las Vegas & Worldwide for over 32 Years!🎰❤️🎲
Proposition 27, also called the, “California Solutions to Homelessness and Mental Health Support Act,” is the one more preferred by gaming operators, as it’s the initiative that would legalize online sports betting in California. While no sum is guaranteed, the Legislative Analyst’s Office estimates that it could bring in as much as $500 million a year in revenue to the state. Prop 27 has the backing of some of the state’s biggest tribes, Major League Baseball, as well as most of the big gaming companies, such as FanDuel and DraftKings. Parties in favor of Prop 27 have donated more than $150 million of financial support to this point. The prop calls for a 10% tax on online sports betting, and operators must partner with a California tribe. 85% of tax revenues would go towards programs that seek to solve the homeless crisis within the state, as well as mental health programs. The other 15% of tax revenues would be slotted for California tribes that are not partnered with an operator. The online gambling companies would have to pay one-time fees of $100 million each for their first five-year license and $10 million for each five-year renewal. Tribes would pay $10 million for their first five-year license and $1 million per renewal.
Proposition 26 is sponsored by local tribes with casino affiliations. This initiative would legalize sports betting, but would restrict it to in-person betting at tribal casinos, as well as four racetracks. It would also expand the allowable games that would be offered at tribal casinos, including roulette and dice games. Unlike Prop 27, this initiative has no specific direction for tax revenues, but rather takes the stance that revenues would largely be available for any state priorities. There is a chance that both Props pass, in which case the one with the higher vote would become law.
There have been tens of millions of dollars donated in opposition of both measures, bringing the total to $360 million spent from all parties relative to Props 26 and 27. Since Sept. 1, FanDuel has contributed $10 million and DraftKings has contributed over $9 million to Prop 27. The outcome of this vote will have not only a major impact financially for the state of California, but also socially. There are skeptics to Proposition 27, and their argument is that the homeless problem in California is a very complex one. They reference the many causes of homelessness, including inaccessible healthcare, drug abuse, poverty, and a lack of affordable living in California, among other things. California has already budgeted $12 billion over the next two years to combat homelessness programs, and the funding from the ballot initiative would add about 4% to that number. California could be the holy grail of online sports betting markets, making November’s vote such a crucial point for sports betting in this country.
Process
i) The applicant to complete the prescribed form i.e. Form 1A.
ii) Submit a detailed concept about the proposed business.
iii) Payment of application fee is Kshs. 10,000 and Investigation fee (local Director) Kshs. 50,000 and (foreign Director) - Kshs.500,000/=. These fees are paid upfront and are non-refundable.
iv) Proposed operating name of the business if different from the registered name.
v) Business form (sole Proprietorship or joint venture).
vi) Names of Directors and shareholders directorship to be supported by a
current CR12.
vii) A PIN certificate and Tax compliance certificate from Kenya Revenue
Authority.
viii) A copy of the certificate of incorporation or registration as the case may
be.
ix) Articles and memorandum of association for your company whose
objects must among others include bookmaking.
x) Detailed mode of operation for the bookmakers business and evidence
of capacity to undertake bookmaking operation in a seamless manner.
xi) A business plan showing the minimum investment and Sources of
funding.
xii) Submit a broad statement on the choice of Kenya for the licenses applied
for and the anticipated benefits to:-
xiii) Certificate of Good Conduct for the Company Directors.
xiv) The proposed sports events and types of bets to be offered for betting
purposes.
xv) The name and full address of the company that would be providing the
applicant with the Bookmaking Odds, to be supported by a copy of the
agreement between applicant and the Odds Provider.
xvi) The proposed terms and conditions of the bookmaking operation.
xvii) Proposed bookmaking architecture.
xviii) Proposal on how to mitigate excessive play and underage participation.
xix) Dispute resolution procedure.
xx) Audited Accounts for the applicants other business operation for the last three (3) years, and evidence that none of them has a pending litigation and if any, provide Case No. nature and status.
xxi) The proposed principal place of business
In addition to the submission of above information you will be expected to complete a Probity form to facilitate due diligence.
Demonstrate ability to pay the applicable fees shown below.
NOTE: Giving false information to the board in an application is an offence under section 5 (4) of the betting lotteries and gaming act cap 131 laws of Kenya.
The Board may require further details merited to finalize an application request in conforming to the regulations as per the Betting Lotteries and Gaming Act, Cap 131 Laws of Kenya.
Meeting the above requirements does not guarantee issuance of a license; the issuance of the license will also be subject to the Board and Government of Kenya prevailing policies on the business whose license is being applied for and Gaming in general.
By Najib Balinda sourced from the Betting control and licensing board (BCLB) of Kenya
Coljuegos is the regulatory institution of gambling in Colombia, being a fundamental piece of the gambling sector in the country. In this way, users have access to all the information about the legal gambling companies that exist and where they can play in a completely safe way. For this, it is necessary for them to pass a series of rules and standards to ensure that sports betting and casino players can participate in such activities with the highest possible quality.
This regulatory body has been in existence since 2015 as it was designated so that it could regulate any internet gambling operation. Colombia was one of the first countries in LATAM to create its own regulations to legalize gambling and has served as a model for other countries in the region to take as an example.
In fact, Colombian players have a completely safe environment to enjoy gambling without any kind of obstacle and with the protection of an institution such as Coljuegos. This means that they can contact the local gambling authority at any time in case a betting house or online casino is acting in an abusive manner.
There are numerous pages on the Internet that provide information and data on gambling in Colombia. Thanks to this, players have a place to turn to in case of doubt, although it is necessary that the information is presented in a clear and simple way.
Before the regularization of gambling in Colombia the practices of each operator were completely independent, and players had no way of receiving help for any irregularity committed.
One of the easiest ways to know if an operator is legal is to look for the Coljuegos logo on the website or consult it on the institution's web page, where all the companies that are licensed in the country are listed. It is a matter of time before Coljuegos finishes detecting all the illegal gambling websites, but some of them operate at an international level and cannot be completely shut down.
There are several indications that can help players to avoid problems when betting on sporting events. The main recommendation is to register and deposit money always in legal bookmakers licensed by Coljuegos. This is essential if players want to be able to complain to Coljuegos in case there is any problem with the gambling company, such as the payment of a bet or the denial of a withdrawal of winnings.
The Colombian regulatory institution suggests players to get information about a bookmaker before registering with it, trying to find information on the Internet and reading the opinions of other users who already have experience with that website. In this way, every gambler will know what to find after registering at a licensed bookmaker.
Empire State of Mind
We’ll kick things off in the city that never sleeps. Wynn Resorts has partnered with Related Companies, signalling their intent to build a casino on the Hudson Yard complex in Manhattan.
The western rail yard, a 28-acre plot in New York City, is a hotly contested piece of Big Apple real estate, especially as the race to put a casino resort on the island of Manhattan begins to intensify.
Earlier this year, New York authorised three downstate gaming licences, something NYC Mayor Eric Adams is keen to have in his city.
Wynn’s partnership with Related is a symbolic firing of the starter pistol, though the Empire State’s Gaming Commission has not called for proposals – yet. The development has an estimated cost of around $25bn.
Step aside, Netflix!
Across the Atlantic, PlayOjo’s risqué “Safe Bets” campaign has come up trumps, fending off competition from media giants Sky and Netflix to nab a first place prize in this year’s UK Social Media Awards.
For a second year running, the online casino brand has topped the “Best Use of Social Media for Entertainment” category, this time for a marketing push involving Love Island star Olivia Bowen.
In a three-minute-long video designed to spoof a “1970s or 80s safe sex educational film,” Bowen appears in a lab coat to offer safer gambling tips.
Innuendos abound for the duration of PlayOjo’s ad, which leans heavily on humour to capture players’ attention, making it, the company said, “easily shareable via Instagram and Facebook.”
The Awards’ panel of judges would appear to agree, having once again named PlayOjo the category’s winner, beating Netflix UK’s #Nestflix campaign.
Horsing around
On the other side of the English Channel, Française des Jeux (FDJ) has entered negotiations to acquire Zeturf Group.
FDJ says the acquisition is part of a strategy to bolster its presence in France, entering verticals where it does not yet operate, such as horserace betting and poker.
Zeturf is active in the online betting market for horseracing under the brand Zebet. It has around 100 employees and recorded €800m ($800.8m) in bets for 2021, including over €100m in B2B bets.
Online bets on horseracing accounted for 50% of all wagers in 2021 at Zebet, meaning the operator had a 20% market share in the online horserace betting sector.
This news came after FDJ made a donation to help restore a piece of Parisian history. Alongside French heritage organisation Fondation du Patrimoine, FDJ awarded €1.26m to YMCA Paris for a restoration project.
Seven companies enter, six companies leave
Our next story will take us to Asia, where all seven bids for Macau’s six gaming concessions have been accepted.
Bids were submitted before the public tender’s submission deadline on Wednesday last week. Now, the Gaming Concession Public Tender Committee is currently making its decision on which operators will be granted one.
Macau’s gaming industry currently comprises three concessions, held by SJM Resorts Limited, Galaxy Casino Company Limited and Wynn Resorts (Macau), along with three sub-concessions; MGM Grand Paradise Limited, Venetian Macau Limited and Melco Resorts (Macau) Limited.
All six incumbent concessionaires have seen their bids accepted, along with newcomer GMM Limited, a subsidiary of casino operator Genting Malaysia.
The new concessions are expected to begin operating on 1 January 2023 and are planned to last for 10 years.
Tasmanian Devil
Finally, we’ll end in Australia, specifically the state of Tasmania, which is preparing to impose a default cap of AU$5,000 (US$3,340) per year on slot machines under new “harm minimisation” plans.
Following a report from Tasmania’s Liquor and Gaming Commission, the island’s Liberal Government has announced new measures.
These include a state-wide “player card gaming system with pre-commitment and cashless gaming,” a first for Australia.
By default, players’ slot machine expenditure will be capped at AU$100 per day, AU$500 per month and AU$5,000 per year.
“The impacts from gambling harm are felt across our communities, beyond the immediate impact on an individual and their family,” a statement from Tasmania’s Deputy Premier, Michael Ferguson, read.
“This system will protect people from losing more than they can afford.”
Sports betting continues to grow after the supreme court struck down the 1992 federal law that barred state authorized sports betting. This ruling shook the sports world and all of the associated companies within the industry. Sports content creators are quickly pivoting their material to satisfy the steady demand for sports betting content. This pivot has proved harder for some than others. Some content creators love sports for what they are and don’t need skin in the game to enjoy the experience and create content as a career. For most people over the age of 25, the love for sports existed well before they developed a love for sports betting. However, the narrative has changed for the younger generations, many are starting to watch more sports as a result of their love for sports betting. This shift opened the door for sports betting content creators.
Barstool’s sports content happened to be well ahead of the curve in making this pivot. They were always known for uncensored takes, and pushing boundaries that major sports companies such as ESPN couldn’t cross. Of course, this brought both positive and negative publicity, but at the end of the day, they revolutionized the way the younger generations experience sports. Barstool was already discussing the betting scene prior to the supreme court decision and when all of the Millennial and Get Z’s gained more accessibility to sports betting, they were able to assimilate even more with the barstool culture.
Not all sports betting influencers came from a sports content background. Some of the most successful creators jumped straight into the sports betting industry when they saw the lucrative opportunity. With platforms like TikTok taking the younger generations by storm, the market became over-saturated with amateur sports betting content creators, requiring people to differentiate their content to grow a following. One example would be my personal favorite, Trent Attyah. Trent founded BookIt Sports, but his rise to fame as a content creator is unlike most sports betting influencers. Labeled as “Fade God” for his significant inability to get a pick right, he grew a massive following because he was so humanized and easy to relate to. Personally, If I just had a bad loss, I’m not going to want to see some influencer bragging about hitting a ridiculous parlay, I want to see Trent, someone who makes you feel less alienated after a loss.
Stephen Crystal, Founder and CEO of SCCG Management announced a partnership with AthStat, providing business development, and strategic advisory services for their data management and analytics platform.
Stephen Crystal said of the partnership “We are very excited to move forward with Athstat. Their platform has limitless potential and will set a new standard for data management platforms across all industries. The gaming industry is driven by data and we are excited to introduce a platform built by one of the most elite data scientists in the space!”
Kisset Chirengende, Co-founder and COO of Athstat said “We are delighted to be taking this next step in the growth of our company with an industry leader like SCCG. We are thrilled, and grateful to Stephen Crystal and his team for the opportunity and look forward to what’s ahead.”
Athstat is a data management and analytics platform that allows sports analysts, coaches, and players to store all their game-day data in a single place, and analyze it in real time. SCCG Management plans to expand the use of this technology to provide data solutions for companies in the gaming industry. Athstat has the ability to store, manage and analyze raw sports data and generate insights in real-time. The gaming industry is dependent on big data for tracking trends, diagnosing problems, and improving products. The role of a well-defined business intelligence and customer analytics strategy is becoming increasingly valuable for gaming companies.
ABOUT ATHSTAT
Athstat is made up of talented, forward-thinking, team players from across the world. We pride ourselves in our diverse workforce and creating an environment conducive for everyone to achieve their best results and to help others.
ABOUT SCCG MANAGEMENT
SCCG Management is a consultancy that specializes in sports betting, iGaming, sports marketing, affiliate marketing, technology, intellectual property protection, product commercialization, esports, capital formation, M&A, joint ventures, casino management, and governmental and legal affairs for the casino and iGaming industry.
SCCG Management celebrates 2022 as its 30th Anniversary of leadership and innovation for the gaming industry.
CONTACT
Stephen A. Crystal, SCCG Management
Mobile/WhatsApp: +1 702-427-9354
Email: Stephen.Crystal@sccgmanagement.com
Social Media: https://www.linkedin.com/company/sccg-management