Cyprus’ betting sector witnessed growth in 2023, with the gross betting revenue reaching €1,109,209,082. This represents a 16% increase compared to the previous year (€959,557,906). The rise in revenue can be attributed to various factors, including the rise in both land-based and online betting activities.
The betting industry in Cyprus is divided into two categories: Class A (land-based betting) and Class B (online betting). In 2023, Class A recipients generated a total gross revenue of €90,487,835, while Class B recipients accounted for €235,113,629. These figures indicate an 8% increase for Class A and an impressive 17% increase for Class B compared to the previous year.
The profits of Class A and B players also experienced a significant boost in 2023, totaling €291,754,064. This represents a 10% increase compared to the corresponding period of the previous year. Class B players contributed the largest share of profits, amounting to €216,072,279.
Analyzing the quarterly revenue comparison for 2023, we observe a consistent upward trend. In Q4, the gross betting revenue of Class A and Class B recipients reached €325,601,464, marking a 10% increase compared to the same period in the previous year (€296,607,170).
Examining the betting receipts, we find that Class A and B receipts amounted to €33,847,400 in Q4 of 2023, reflecting a 9% increase compared to the corresponding quarter of the previous year (€30,934,442). Class A betting receipts reached €14,806,050, indicating an 8% increase, while Class B betting receipts amounted to €19,041,349, showing an 11% increase compared to Q4 2022.
The total number of licensed properties in Cyprus increased slightly by 2% in Q4 of 2023 compared to the corresponding quarter of the previous year. Currently, there are 490 licensed properties across the country. Nicosia leads with 170 properties, followed by Limassol with 139, Larnaca with 90, Paphos with 54, and Famagusta with 37 properties.
The betting industry in Cyprus has also created employment opportunities, with the number of people employed in licensed premises reaching 1,476. This represents a 4% increase compared to the corresponding period of the previous year.
Efforts to combat illegal gambling activities have intensified, with a 3% increase in the number of illegal websites blocked in Q3 of 2023. The total number of blocked illegal betting service websites now stands at 19,073.
Gambling Update
April 17, 2024
Cyprus Betting Revenue Hits €1 Billion in 2023
April 10, 2024
Romanian lawmakers vote to ban slot machines in localities with a population under 15,000
The ruling majority in Romania’s Chamber of Deputies tabled on short notice and quickly endorsed a bill under which the slot machines will be banned in localities with a population of under 15,000 residents.
The ruling Social Democratic Party said it is a first step towards regulating the gambling industry, while the opposition party USR claimed that the bill is not sufficient and an attempt to prevent a genuine law that would regulate the industry.
The lawmakers had previously discussed banning advertising promoting gambling and banning the betting shops and slot machines in the central area of the cities.
“The scourge of gambling does not exist only in localities with 15,000 inhabitants. Scams destroy millions of families throughout the country. We voted for this law, but until we adopt the correct solutions, we leave more than half of Romanians unprotected,” USR MP Diana Stoica pointed out.
The lawmakers of the ruling majority promised that more bills to regulate the gambling industry would follow.
April 05, 2024
Spain tightens scrutiny of tax returns on gambling winnings
Spanish consumers must declare profits from online gambling winnings in 2023 self-assessment income tax returns.
The directive comes from the Agencia Tributaria (AEAT), the Tax Agency of Spain’s Ministry of Finance, where Director General Soledad Fernández is increasing scrutiny on profits from online gambling, cryptocurrency transactions, property rentals, and foreign income.
Before the 2023 income tax filing period, AEAT issued approximately 2.9 million notices to taxpayers, ordering them to declare profits from these activities.
This includes the first-ever notices concerning online gambling profits. AEAT has sent out 164,000 warnings about these profits, marking the Treasury’s first targeted effort in this area.
However, Fernández and AEAT have expressed greater concern regarding undeclared cryptocurrency trading profits, issuing one million notices to individuals.
In relation to gambling winnings, in 2022 the Ministry of Finance authorised AEAT to update Tax Module-190 to ensure the reporting of gambling prizes/winnings under €300, impacting 2023 tax filings.
The tax requirement for winnings of €300 now applies to Spanish taxpayers earning over €22,000 annually, reduced from the previous €1000 disclosure threshold.
For sports betting and online gambling winnings (casino/poker), AEAT enforces a five-tiered tax framework with rates set at 19% on winnings up to €12,450, 24% from €12,450 to €20,200, 30% on €20,200 to €35,200, 37% on €35,200 to €60,000, and 45% for winnings over €60,000.
With these changes, AEAT has streamlined the process for amending or submitting specific declarations on gambling, crypto, and foreign income transactions, assuring that ‘taxpayers can easily modify amounts in their filings, and the system will automatically take care of the rest’.
The Ministry of Finance faced criticism from the Partido Popular (PP), Spain’s Conservative Party and primary opposition, for allowing AEAT to modify tax modules on gambling, deemed as an ‘unnecessary and punitive tax on recreational consumers’.
March 28, 2024
Sandro Tonali charged with breaching FA's betting rules
The Italian midfielder is alleged to have broken regulations 50 times by placing bets on football matches between 12 August and 12 October last year, the FA said.
The Italy international, who joined the Magpies last summer for £55m from AC Milan, has until 5 April to respond, the FA added.
The 23-year-old Italy international is currently serving a 10-month football ban after breaching betting rules in his home nation. He was also fined £17,000.
In a hearing at the Italian Football Federation in Turin, he admitted making bets on AC Milan to win games.
He was initially given an 18-month ban last October by the Italian Football Federation - but that was reduced by eight months after he agreed to enter therapy.
Giuseppe Riso, his agent, said he had a gambling addiction.
Had he not cooperated his suspension - under FIFA rules - could have reached three years.
He cannot play competitive football until August, meaning he will miss Euro 2024.
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But he is free to train with Newcastle and play in friendlies.
Newcastle said it "acknowledged" the misconduct charge, adding that the player "continues to fully comply with relevant investigations".
Tonali "retains the club's full support", it added.
"Due to this ongoing process, Sandro and Newcastle United are unable to offer further comment at this time," Newcastle said.
When Sandro Tonali was pictured signing for Newcastle, the backdrop was plastered with logos for a betting firm, writes Sky News sports correspondent Rob Harris.
He was promoting gambling on football while under orders - like every player - not to bet on the game himself.
Football has uneasy funding and promotional links to a betting industry that players are ordered to stay away from.
Perhaps, in addition, we should we be asking whether banning a player is the right solution when dealing with an addiction.
This is a player with a gambling problem - currently serving a 10-month ban for offenses in Italy where he played for AC Milan before joining Newcastle in July 2023. Now, the FA is alleging a further 50 betting breaches.
It could lead to a lengthier ban for Tonali, who is already out of Italy's Euro 2024 campaign.
March 27, 2024
888 Holdings To Become Evoke Plc In Major Rebrand
888 Holdings posted an adjusted EBITDA of £308.3m for FY23, marking a noticeable increase from the £217.9m reported in 2022. Moreover, the revenue for the full year surged to £1.70bn, up from £1.24bn in the previous year. However, the net loss stood at £56.4m, albeit lower than the £120.5m recorded in 2022.
Despite an increase in revenue and adjusted earnings, the adjusted profit after tax took a hit, falling by 25% to reach £48.1m. The company’s performance was in line with its Post Close Trading Update released in January 2024, which also announced several redundancies to facilitate its long-term plans.
The revenue for FY23 reached £1.70bn, marking a 38% increase from 2022. This growth was primarily driven by a strategic shift away from dotcom markets and changes in the customer mix in the UK due to increased gambling measures.
Despite a near doubling of operating expenses from £448.5m in 2022 to £819.1m in 2023, the operating profit showcased a positive trend. From a loss of £4.8m in 2022, the group reported an operating profit of £33.0m for 2023. The adjusted EBITDA margin for FY23 stood at 18.0%, up by 1.2% from FY22.
The UK and Ireland segment continues to be the group’s primary revenue source, with revenue from this segment significantly higher at £658.5m compared to £455.5m in 2022. Despite the group’s struggles, the UK accounted for 81.5% of adjusted EBITDA.
In its international business, the revenue also saw a significant increase, reaching £517.4m for the year, up from £508.3m for 2022. This growth was achieved despite compliance changes in dotcom markets and was bolstered by double-digit growth in Spain and Italy.
In a surprising move, 888 announced plans to rebrand to Evoke plc, subject to shareholder approval at the next AGM. This rebranding initiative is part of a new strategy to enhance profits and better reflect the group’s diversified operating model.
The rebranding announcement came alongside the introduction of new CEO Per Widerström, who joined 888 after eight years as CEO of Fortuna Entertainment Group.
888 also unveiled its new “Value Creation Plan” (VCP) to deliver a long-term strategy for success. The plan includes six strategic initiatives aimed at driving operational excellence and preparing the business for significant value creation.
The group aims to deliver sustainable profitable growth of 5%-9% per year, improve efficiency with an adjusted EBITDA margin expansion of c100 basis points per year, and target disciplined capital allocation, with leverage below 3.5x by the end of 2026.
Despite acknowledging the disappointing earnings for FY23, Widerström remains confident about 888’s future. With revenue for Q1 2024 projected to be between £420m and £430m, the company is targeting revenue growth of 5-9% for 2024 and leverage below 3.5x by the end of 2026.
While these are ambitious goals, the new strategic direction, coupled with the company’s market positions, proprietary technology, and experienced management team, positions 888 well for potential success in the coming years.
March 19, 2024
MGM Denies Claims Bruno Mars Has Debt With Casino: ‘Any Speculation Otherwise Is Completely False’
The MGM Grand have denied that Bruno Mars reportedly owes the casino $50million (£39million) in gambling debt.
Mars is set to enter his ninth year performing a residency in Las Vegas, however earlier this week saw News Nation report that the singer is paying off his debts to MGM.
A “well-placed Vegas insider” reported that Mars “owes millions” to them from gambling, alleging the total comes close to $50milion. “(MGM) basically own him,” they added.
They went on to say that Mars apparently makes $90million off the deal he makes with the casino, but after paying off his debts and taxes, takes home $1.5million per night.
Now, MGM have responded to deny the claims.
“We’re proud of our relationship with Bruno Mars, one of the world’s most thrilling and dynamic performers,” said a spokesperson from the MGM Grand. “From his shows at Dolby Live at Park MGM to the new Pinky Ring lounge at Bellagio, Bruno’s brand of entertainment attracts visitors from around the globe.
“MGM and Bruno’s partnership is longstanding and rooted in mutual respect. Any speculation otherwise is completely false; he has no debt with MGM. Together, we are excited to continue creating unforgettable experiences for our guests.”
March 18, 2024
Could a gambling “error” cost you March Madness?
The 2024 NCAA men’s and women’s basketball tournaments are here.
That means it’s time to fill out a bracket, to suddenly become the biggest fan of a school you’d never heard of before this week, or to coat your body in team colors before every game (depending on your obsession level, of course).
For many Americans, it’s also time to place some bets.
This is “the most mainstream betting event of the year,” says David Forman, vice president of research at the American Gaming Association (AGA). “It used to be office pools and squares contests.” Now, with the explosion in legalized gambling across the US, he says, “people in almost 40 states have the ability to bet on the tournament legally, and we think they’re going to bet about $2.7 billion on the men’s and women’s tournaments.”
If that estimate has you staggering, you obviously don’t watch all that much live sports. Because if you did, you would have already heard from a slew of celebrities, like Jamie Foxx and Rob Gronkowski, selling you on the virtues of major sports books like BetMGM, FanDuel, and DraftKings. You also must’ve missed the headlines around the Super Bowl last month, when the AGA estimated that 67.8 million Americans would bet roughly $23.1 billion.
Sports betting is bigger than ever, and 2023 was the biggest year yet. But as more states legalize gambling, effective regulation hasn’t always kept pace. And it’s left some bettors wondering whether their bet will be honored.
One of the reasons March Madness is such a big-time event for sports betting is the number of games being played — sometimes at the same time. In just the first four days of the tournament, there will be 48 games.
“The thing that makes it very bettable is the structure of the tournament,” says Jack Andrews, co-founder of Unabated Sports, a subscription service that purports to help sports bettors increase their chances of winning. “On the East Coast, the tournament starts at noon on Thursday [March 21]. And then you have game after game after game after game after game. It’s basically a betting bonanza for sports bettors from noon to midnight.”
In-game betting and prop bets are other forms of wagering that are very popular during the tournament, “especially betting the over/unders,” says David Vinturella, an instructor at the University of Nevada Las Vegas who developed and taught the school’s first ever semester-long course in sports betting this year and who previously worked for a major sports book.
He explains over/under bets like this: Betting the over is wagering that a team will score more than sports books’ predicted figure. Betting the under is the opposite.
Another well-liked prop bet Andrews describes is betting on the first team to score 15 points. “That is hugely popular in Vegas,” he says. “That’s not really betting on the game, you know — instead you’re just betting on which team gets off to a hot start.”
With millions of people expected to place bets with sports books throughout the tournament, can bettors be sure they’ll be paid out if their long-shot bet wins big?
The answer to that question was a bit murky in the days before legal sports betting, when offshore sports books were the only game in town, says Andrews. “That’s the difference between the US and offshore sports books. If you have a problem offshore, the offshore sports book says, ‘I’m judge, jury, and executioner, and you’re out.’ Whereas in the states with regulated sports betting, [regulators] are supposed to make sure it’s a fair bet.”
Still, there have been stories recently about sports books in the US voiding bets that would’ve paid out big to bettors. The sports books use a clause in the fine print of their regulations saying that if there’s an obvious error with the odds in the bet (a.k.a. “palpable error”), they can cancel your bet.
Critics say this is unfair because the sports books have multiple chances to prevent a soon-to-be-voided bet from ever happening. “The bet is offered by the sports book, the bettor offers a wager to the sports book, and then the sports book accepts the wager,” says Andrews. “They had three chances to stop the bet from ever happening.”
Vinturella says that voided bets definitely happen, but that they are rare. “The process of getting a license and securing the license for a mobile sports betting company is not easy or cheap. So sports books don’t want to do anything that would jeopardize that license.”
Andrews agrees that most bettors will never have an issue with a sports book over a palpable error. “Ninety-nine percent of the time, sports books just eat the loss,” he says. But Andrews thinks regulators often have a “pro-operator” approach because “they’re funded by the operators,” and “they don’t want DraftKings to lose $1 billion because of something that should have never been out there.”
That’s why regulators should have clear sets of rules for determining what is and isn’t a clear mistake.
A good example is New Jersey, where the Division of Gaming Enforcement has a two-step process for deciding whether the error was palpable. Step one: Was the bet legal to begin with? If so, good. If not, the bet doesn’t count. Step two: Was there a risk of losing? If so, the wager stands. If there’s no risk, then the bet is voided because it must’ve been a mistake.
It’s that sort of easy-to-follow process that will let bettors trust regulators and confidently participate in the fast-growing billion-dollar industry — ultimately benefiting the sports books, too.
National Lottery operator had borrowed millions from Kremlin-owned banks
Russia’s two largest lenders, VTB and Sberbank, were part of a syndicate that agreed to lend up to €640m (£545m) to Allwyn in 2020, two years before the pan-European gaming specialist was named the “preferred bidder” for the £6.5bn lottery contract.
While Allwyn repaid the portion of the loan attributable to the two Russian banks in response to the invasion of Ukraine, the funds appear to have helped support the group during the time it was in the costly process of bidding for the lottery.
Loans from the Kremlin-owned Sberbank and VTB, extended via European subsidiaries in the Czech Republic and Germany respectively, remained in place for nearly a month after both lenders were placed under sanctions by the UK government.
Allwyn repaid the debts in late March 2022, after the Gambling Commission had chosen the company to run the lottery, ahead of the incumbent operator, Camelot, and a bid from the media tycoon Richard Desmond.
There is no suggestion that Allwyn, ultimately owned by the Czech billionaire Karel Komárek, was in breach of sanctions or that there was any Russian influence over the bid. There is also no evidence to indicate the Russian loans were used to finance the bid for the lottery directly.
Allwyn said it informed the Gambling Commission about the loans and its intention to repay them on 28 February, four days after VTB was placed under sanctions by the UK, and that it followed Treasury sanctions guidance.
But the loans raise questions about whether MPs were given the information they needed during select committee sessions scrutinising Komárek’s business links to Russia.
The Labour MP Clive Efford, a member of the select committee for culture, media and sport, said he could not understand why the Gambling Commission did not mention the loans during an evidence session in June 2022.
“It is unacceptable that the commission chose not to inform us that it knew Allwyn had loans from two banks linked to the Russian state at the time that they selected it as their preferred bidder for the UK lottery,” said Efford.
“From this evidence it is clear that the Gambling Commission failed to give full and frank answers when questioned about what it knew of Allwyn’s links to Putin’s Russia.”
The committee is expected to question the Gambling Commission again in April.
The Conservative MP Iain Duncan Smith, the vice-chair of the all party parliamentary group on gambling-related harm, also questioned why the loans had not come to light previously.
He said: “There may well have been nothing concerning about this lending but if so, why were MPs and the public not told about it?
“A public sector contract of this value and importance should be subject to the utmost transparency requirements. The Gambling Commission must come forward with an urgent explanation.”
The previously unreported relationship between Allwyn and Kremlin-owned banks emerged thanks to analysis of freely available corporate records in the Czech Republic, where Komárek built his fortune in the post-Soviet era.
Despite Komárek’s public condemnation of Vladimir Putin’s “brutal” invasion of Ukraine, Allwyn has struggled to shake off concern among MPs about his Russsian links.
Questions have focused on a gas storage facility in the Czech Republic, that was jointly owned by Komárek’s holding company, KKCG, and Kremlin-owned Gazprom, until February.
In June 2022, the Gambling Commission told MPs on the culture committee that it was not concerned by the Gazprom link.
Loans from Sberbank and VTB, arranged in December 2020, financed the wider Allwyn group, which owns lotteries and gambling businesses across Europe.
The group controls UK-based Allwyn Entertainment Ltd, which began operating the lottery in February after a highly competitive bidding war.
The Gambling Commission officially launched the competition in August 2020, beginning a costly battle that saw Allwyn and rival bidders spend millions on consultants, lawyers, boardroom veterans and PR executives to support their bids for a contract projected to be worth £6.5bn in revenues over 10 years.
The loans were originally secured by Sazka Group Financing, a division of Sazka Group, which rebranded as Allwyn International in May 2022. Sazka Group Financing’s 2021 accounts state that the group “responded to the sanctions imposed by European Union member states on Russia regarding the Russian banking sector.”
“The entire part of the loan attributable to VTB and Sberbank” was repaid on 22 March and 25 March 2022.
The UK had placed VTB under sanctions nearly a month earlier on 24 February, while Sberbank was added to the UK’s sanctions list on 1 March.
Four days after VTB was put under sanctions, KKCG informed the Gambling Commission of the loans and that it planned to terminate the agreement.
On 15 March, when it was named the Gambling Commission’s preferred bidder, the loans had not yet been repaid.
Accounts for the wider Sazka Group refer to an early loan repayment in March 2022, recorded as close to €60m.
The figure represents about 14% of the €450m that Sazka Group Financing has borrowed from the syndicate at the end of 2020 and 3% of its external debt.
In October 2021, more than a year after the lottery licence competition began but before the decision to award the licence to Allwyn, the company agreed a separate £380m credit facility to fund its investment in the lottery, although it said the company was not reliant on external funds for the bid itself.
A spokesperson for Allwyn said it had “never borrowed from any banks in violation of sanctions restrictions” and that the 2021 facility “did not include funds from any Russian banks”.
Separately, said Allwyn, “as soon as Russia invaded Ukraine, and before being named by the Gambling Commission as the preferred applicant…Allwyn and its legal advisers initiated the process to repay borrowings provided by the European arms of VTB (based in Frankfurt, Germany) and Sberbank (based in Prague, Czechia) as part of [an earlier] broad syndicated bank financing in 2020.
“Allwyn promptly informed the Gambling Commission, and this process was done in full accordance with the wind down guidance published by HM Treasury.
“By 25 March 2022, only one month after the invasion of Ukraine, Allwyn had repaid all amounts owed to VTB and Sberbank.
“Allwyn has repeatedly expressed its horror at Russia’s invasion,” said the spokesperson, adding that any suggestion Russia had a role in Allwyn’s bid for the lottery or any influence over the company would be “an unjustified smear”.
The Gambling Commission said it had “required all applicants to declare any and all sources of funding that were to be used for both their application or for the running of the national lottery.
“We were – and still are – satisfied that no sanctioned entities are involved in funding Allwyn.”
March 08, 2024
Google and Twitch face heavy penalties over illegal online gambling advertising
The legislation was introduced on 5 December last year.
Google Ireland Ltd (YouTube) was fined a total of €2,250,000 while Twitch Interactive Germany GmbH received a fine of €900,000.
The Authority said Google and Twitch were held responsible as “owners of the means of video dissemination published by third parties with whom they had specific commercial partnership contracts”. It is the third time that Google has been in breach of the rules.
According to article 6 of the Digital Services Act, providers of hosting services are not liable for information stored on their services on condition that they do not have actual knowledge of the illegal content or take action to remove or disable it once they become awate.
In both cases, Agcom considered that the platform providers had actual knowledge of the illegal content. The knowledge was inferred from the terms of the commercial partnership between the platforms and the concerned channels editors.
March 05, 2024
Spanish Police Smash Sports Betting Fraud Syndicate
The arrested individuals were part of a sophisticated criminal network that controlled over 1,500 betting accounts and generated approximately €2 million in winnings. The syndicate’s leaders utilized advanced technology to manipulate live streams by intercepting satellite signals and gaining access to live signals before betting houses. This unprecedented advantage allowed them to place substantial winning bets with the pre-knowledge of predetermined outcomes.
Moreover, the fraudulent organization devised a complex system to launder the proceeds obtained from their illegal gambling activities, further obscuring their tracks and making it challenging for authorities to trace the illicit funds.
This operation marks the second phase of a broader investigation that began in 2020. The initial phase led to the arrest of 22 individuals, including the leaders of the criminal organization. The subsequent phase, which unfolded earlier this year, exposed the extent of the syndicate’s activities and led to the apprehension of an additional 53 suspects.
It comes as no surprise that football and tennis were the primary targets of the criminal network. According to the International Betting Integrity Association (IBIA), these two sports generated the highest number of suspicious alerts in 2023. The syndicate capitalizing on these popular sports underscores the need for stringent measures to protect the integrity of sporting events and ensure fair play.
The successful crackdown on this sports betting fraud syndicate demonstrates the efficacy of international collaboration among law enforcement agencies. Europol and Interpol played vital roles in supporting the Spanish National Police in their investigation, highlighting the importance of cross-border cooperation in combating transnational organized crime.
This case highlights the evolving nature of sports betting fraud and the need for continuous adaptation by law enforcement agencies. As criminals employ increasingly sophisticated techniques, authorities must stay ahead of the game by investing in advanced technology and intelligence capabilities.