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2022 Football World Cup and sports betting: the ANJ presents the results of the competition

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As expected, the Football World Cup was a highlight in the 2022 sports betting calendar, with online stakes breaking records. This economic result confirms the real craze for sports betting, which is, for many gamblers, an inseparable practice from football. As far as advertising is concerned, the content has become more normalized, and the commitments made by the operators to reduce advertising pressure have generally been respected. Nevertheless, the massive recourse to programme sponsorship and influence are points of vigilance for the regulator and answers will have to be provided in the near future.

Economic results: a major World Cup, but in the context of a global slowdown in the growth of the online sports betting market in 2022

The Football World Cup has recorded several records for online sports betting:

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€597 million in stakes and €70 million in GGPs (Gross Gaming Revenue), a record performance for a competition of this scale. Stakes were 56% higher than for the 2018 World Cup and 37% higher than for the Euro, which was held in 2021 but featured fewer matches. The results recorded in FDJ sales outlets will be communicated in mid-February. Nevertheless, it can be estimated that the total amount of bets recorded online and in sales outlets could exceed €900 million.

– With €51 million in stakes placed, the France / Argentina final is the match that holds the record for bets, dethroning the 2018 France / Croatia final (€38million).

However, this result should be seen in a more global context of slowing down the growth of online sports betting in 2022. In fact, in 2022, the online sports betting segment saw a 2.5% growth in GGR, compared to 44% in 2021 and 7% in 2020, marked by Covid. Stakes on the 2022 World Cup represent 7.2% of total stakes placed in 2022, compared with 10% in 2018. Two explanations for this drop in the weight of stakes associated with the World Cup can be put forward: on the one hand, the number of players who opened an account during the World Cup was greater in 2018 than in 2022. Their weight in the total number of player accounts opened has therefore decreased. On the other hand, it seems that players who were already active before the World Cup have spread their bets more throughout the year and are diversifying them to other football competitions and sports, such as basketball.

Profile of players and betting practices: more women and 18-24 year olds among new bettors

177,000 new gamblers created an account during the competition. This is less than in 2018 (232,000 accounts opened);

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A more feminine pool of players: twice as many women aged 18-24 were recruited than during a normal period of activity, i.e. outside a major sporting and popular event;

54 million bets were placed, more than double the number in 2018;

– While players bet more than in 2018, the amount of unit bets was €11, which is slightly lower than the amount of unit bets seen in 2018;

– The average stake placed during the entire competition remained stable compared to that observed during the 2018 World Cup, at €234;

– 2.6 million player accounts placed a bet during the competition (players have an average of 1.2 accounts). This represents 2.2 million unique players;

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– 70% of these accounts were negative, 23% were positive and 6% were balanced; only 1% won more than 10 times their stake.

– The 18-24 year olds represent 53% of new players, which is higher than in a normal period of activity.

It is still too early to assess the effects of competition on loss of control and addiction. An ANJ/OFDT (Observatoire Français des Drogues et des Tendances Addictives) study project will make it possible to observe this phenomenon over the medium and long term on new and regular players.

Preventive campaigns

For the first time, several prevention campaigns were conducted by public institutions before and during a major sporting event. These three campaigns, launched by Santé publique France, the Seine-Saint-Denis General Council and the ANJ, raised awareness among the general public of the risks of problem gambling and excessive gambling, using different approaches. The ANJ campaign “T’as vu, t’as perdu” (You saw, you lost) was aimed at sports bettors by mobilising their media and their codes.

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46% of French people said they had seen prevention campaigns during the World Cup and more than 7 out of 10 gamblers. 82% of them consider that these campaigns are useful and 47% think that there are not enough of them.

Assessment of the regulatory mechanism put in place for operators’ commercial communications: an action plan that has made it possible to change the tone and to contain advertising pressure

After noticing an unprecedented advertising pressure in favour of sports betting during the Euro football tournament in 2021, the ANJ launched an ambitious action plan to “de-intensify” the advertising pressure on all communication media (television, radio, billboards and digital) and to reinforce the protection of minors and at-risk audiences, particularly on digital levers.

This two-part plan included guidelines for advertising content and financial incentives on the one hand, and recommendations for reducing advertising pressure across all media channels and moderating bonus offers on the other, in order to better protect vulnerable audiences.

In order to demonstrate their willingness to apply the recommendations of the ANJ, all the actors of the ecosystem – advertising agencies, audiovisual professionals and gambling operators – signed in November 2022 four commitment charters to moderate advertising pressure and promote responsible commercial communications in television, radio, billboards and digital. The World Cup was the first major event to test the effectiveness of the commitments made.

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  • As regards the content of the advertisements, a change in tone was observed. There is less emphasis on external signs of wealth or false beliefs about the possibility of changing social status through sports betting and less blatant targeting of young people from working class neighbourhoods. According to a study carried out by Toluna – Harris Interactive for the ANJ, sports betting advertisements are considered as “slightly less disturbing and aggressive” than during Euro 2021;
  • The commitments made in TV, radio and billboards were generally respected and made it possible to contain the pressure on traditional media;
  • The pressure on the digital world seems to be slightly less important than during the Euro, but this point needs to be confirmed on the basis of the figures expected in February;
  • The transparency of financial incentives (welcome and loyalty bonuses) has improved. In addition, the €100 limit on the welcome bonus recommended by the ANJ was generally applied by sports betting operators.

 

Lastly, the ANJ carried out an audit of the four main sports betting operators in order to ensure compliance with the commitments they have made. The checks are in progress.

A need to go further

There are still points of vigilance insofar as the ANJ has noted that some operators are using circumvention strategies with massive recourse to sponsorship of sports programmes and influence, which are particularly invasive and popular with young people. During the World Cup, around 100 influencers were mobilised to promote sports betting, mainly on Instagram, YouTube and Twitter. 80% of the influencers’ audience is under 34 years old and 50% under 25 years old.

The working group on sponsorship initiated by the ANJ in July 2022 will deliver its conclusions and proposals in March; they will focus in particular on jersey partnerships, competition naming, but also programme sponsorship on radio, television or streaming sites.

The ANJ is also actively participating in the various initiatives of the public authorities aiming to better regulate the use of influence.

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Finally, although advertising pressure was contained during the World Cup, it remains at a high level, particularly on television, billboards and social networks. The study carried out by Toluna – Harris Interactive indicates that 49% of people who saw sports betting advertisements during the World Cup believe that “there are too many” (compared to 54% during the Euro). 88% of those who saw the ads said they saw them on TV and 54% on social networks, with the proportion rising quite logically to 79% among the under-35 years old.

The review by the ANJ Board in February 2023 of the promotional strategies of gambling operators aims to assess the regulation of advertising in 2022 and to provide new answers to the marketing ambitions of the operators, in particular concerning their important presence on social networks which are very popular with young people and excessive gamblers, the massive use of influence and sponsoring

For Isabelle Falque-Pierrotin, Chairwoman of the ANJ: “The regulatory mechanism set up by the ANJ in the run-up to the World Cup made it possible, with the tools at its disposal, to contain advertising pressure, and the operators generally played along. Nevertheless, this pressure remains strong and concerns the regulator, in a context where the latest OFDT studies show an increase in excessive gambling. The ANJ is therefore considering additional measures that it will propose to the public authorities in the coming months to strengthen the supervision of gambling advertising.”

 

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Gambling in the USA

Kambi Group plc extends Mohegan partnership with on-property sports betting agreement in Pennsylvania

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Kambi Group plc (“Kambi”), the world’s trusted sports betting partner, has agreed a long-term on-property sportsbook partnership with Mohegan to provide its award-winning sportsbook at two retail locations in the state of Pennsylvania.

The partnership will see Mohegan utilise Kambi’s cutting-edge retail sportsbook offering across more than 20 kiosks in sportsbook locations at Mohegan Pennsylvania and Mohegan Pennsylvania at Lehigh Valley Race and Sportsbook.

The deal further strengthens Kambi’s relationship with Mohegan, which already utilises Kambi’s suite of sports betting products at ilani in Washington, as well as online and on-property in the Canadian province of Ontario at Fallsview Casino Resort and Casino Niagara.

Kristian Nylén, Kambi CEO and Co-founder, said: “With several successful partnerships with Mohegan already in place, we are pleased to agree this new partnership as we continue to build on our strong relationship.

“This latest deal further reinforces Kambi’s position as the sportsbook provider of choice for tribes across North America, and we look forward to our ongoing collaboration with Mohegan.”

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Tony Carlucci, President & GM of Mohegan Pennsylvania, said: “Mohegan Pennsylvania is excited to continue utilising the same Kambi technology platform that existed under our Kindred partnership, which will help to create a seamless process as the Sportsbook at Mohegan Pennsylvania fully rebrands later this Spring.”

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Blockchain

JuicyBet Launches Its Innovative GambleFi Platform

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 JuicyBet, a Web3 startup, announced the launch of its GambleFi platform. This platform combines finance technology and gambling via blockchain to create unique opportunities and experiences for users. The company strives to revolutionize the principles of the online betting industry and the interaction between platforms and users in this market.

What is GambleFi?

GambleFi uses blockchain technology to ensure the fairness and transparency of games and betting outcomes and for players to get their share of the platform’s earnings and participate in its governance and day-to-day by holding its tokens.

How JuicyBet works

JuicyBet fully utilizes blockchain technology to establish a new ecosystem that has never been seen in the gambling industry. It is centered around user participation and transparency while providing gambling thrills and quality entertainment.

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All game records on the platform are kept in a public blockchain, while a set of smart contracts automates gaming outcomes and payouts and provides for the platform governance via the DAO model. This reduces fraud risks and operational costs, making JuicyBet a more efficient platform.

However, the platform’s main feature is the unprecedented level of user engagement via the platform’s native tokens.

  • First, the tokens provide access to betting.
  • Second, token holders get their share of the platform’s profit.
  • Third, token holders can vote on key decisions on the platform’s development in JuicyBet DAO.
  • And finally, DAO participants can also perform the role of oracles for bets and earn rewards.

In other words, JuicyBet doesn’t try to be just another gambling platform. It establishes a new ecosystem where users are in control of the platform and bets and are the beneficiaries of the platform.

In addition, JuicyBet offers additional earning opportunities, such as Double Farming and staking for token holders.

JuicyBet has already been noticed by users and investors – the platform’s 3-month turnover has exceeded $1,5 million, according to on-chain data available via Dune, and multiple centralized exchanges and launchpads have listed it.

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Rivalry Announces 2023 Annual Letter to Shareholders and Filing of 2023 Annual Financial Statements

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Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Gen Z, is pleased to announce its 2023 annual letter to shareholders and the filing of its financial results for the three (3) and 12-month period ended December 31, 2023. All dollar figures are quoted in Canadian dollars.

2023 Annual Letter to Shareholders

To our Shareholders,

This time last year I spoke about Rivalry’s evolution from a market leader in esports to a diversified Company setting the standard for Gen Z betting entertainment broadly.

Today, we have a business with revenue distribution across casino, sports, and esports betting, growing market share in new geographies, with increased velocity in core regions, and the strongest customer KPIs in Rivalry’s history.

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In 2023, Rivalry recorded $423.2 million in betting handle1, up 82% from the previous year. Similarly, gross gaming revenue2 and net revenue both saw 34% and 66% respective increases, while the introduction of higher margin products released in H2 such as Same Game Combos and Quick Combos are continuing to improve overall sportsbook hold and guide Rivalry closer to profitability.

Our deepened product suite now includes fantasy, additional sports coverage, and new proprietary casino games. All of which are uniquely driving growth among a targeted customer segment and widening our opportunity set in 2024 and beyond – from a 60% increase in traditional sports betting to a burgeoning B2B game vertical. The potential for how far our brand can go is just beginning to unfold.

The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024. We are doubling down on core growth opportunities in sports that resonate with our audience, such as basketball and soccer. Further, we are building on a successful casino segment which already represents 50% of our business, enhancing variety, depth, and accessibility, as well as developing new original games which blur the lines between betting and entertainment. We are in the process of additional geographic expansion, and pursuing new licenses to broaden our total addressable market, positioning Rivalry to own the Gen Z gambling opportunity globally.

While Rivalry’s operations have expanded into new high-growth verticals, our north star has remained the same: to define the future of online gambling for a generation born on the internet.

Online gambling in 2024 is radically different than it was just six years ago when Rivalry launched. In that time we’ve seen gaming and internet culture reshape how consumers engage with technology. That shift is broadening the definition of gambling, where product design is influenced by video games, or it exists fully embedded within social apps like Telegram, where content creators are the new affiliates, and much more.

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Over the same period, the rise of cryptocurrency and blockchain technology has introduced a new level of speed, access, and security to web-based consumer experiences. Industry estimates now put crypto wagers at up to one quarter of global betting handle3, with 30% year-over-year growth in 20244, and showing no signs of slowing down.

The development of this ecosystem has commercially unlocked online gambling unlike anything since its first transition from land to online many years ago. It has brought in a new global audience, and enriched the customer experience from end-to-end.

Alongside the growth of this technology has emerged new methods of gambling, taking wallet share from more traditional forms at an accelerated rate. The shift in consumer behavior and the signal from our users is clear – interactive, volatile, and crypto-infused product experiences will set the precedent for how the next generation gambles online.

Rivalry, with a brand steeped in internet culture and living at the intersection of this digital economic renaissance, is well-positioned to access this growth opportunity. There is high overlap between Gen Z, gamers, gamblers, and a fast-growing audience of over 420 million crypto users worldwide5 organically aligned with our audience and brand. And we believe that more than half of this audience globally is already wagering with crypto.

It will be Rivalry’s ability to understand, implement, and adapt to this shift more rapidly than our peers that we expect to create first-mover advantages for us. It is for that reason that our vision is now bolder than ever for what’s possible in the online gambling category.

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Soon, we will reveal plans for a crypto-enabled product set to enhance alignment between Rivalry and its users, increase network effects, and generally deliver a consumer experience that lives on the internet of 2024.

To that effect, the success of our first-party games and their ability to acquire and engage a captive audience of Gen Z bettors online has validated our original game development strategy amongst industry peers. This has unlocked a new commercial opportunity for Rivalry to license its IP, opening up another line of revenue for the business that has great potential for global scale.

The year ahead is poised to be one of our most ground-breaking, with a myriad of innovative product releases across all of Rivalry’s verticals, adding more dimension to our business, operations, and addressable audience, and building on our competitive moat as the market leader in Gen Z betting entertainment.

We look forward to sharing more details about these upcoming initiatives, the opportunities they will unlock for our Company, and delivering on our promise to create long-term shareholder value and reach profitability. Thank you all for your continued support.

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