Category: Casino

Novomatic, a major player in the global gambling industry, has announced its decision to sell its Austrian subsidiary, Admiral Group, to sports betting powerhouse Tipico Group. The deal, which includes a 100% stake in Atlas Group GmbH (the parent company of Admiral Group), marks a significant shift for both companies as they sharpen their strategic focuses. The transaction is subject to regulatory approvals, and financial terms have not been disclosed.

Tipico’s Expansion Strategy Gets a Boost

For Tipico, this acquisition represents a key move in bolstering its market position in Austria. The company, renowned for its sports betting and online gaming offerings, views the investment as an opportunity to diversify and strengthen its portfolio.

Admiral, which operates betting services and provides gaming terminals for Austria’s state lottery, brings significant value to Tipico’s ambitions. Axel Hefer, CEO of Tipico Group, expressed optimism, calling the agreement a “milestone” in their strategy. He added:

• “Tipico has always stood for innovative technology and consumer protection, and Admiral shares these values. We are confident this partnership will secure a robust future in Austria’s betting and gaming market.”

With Tipico’s stronghold in Germany, this acquisition enhances its foothold in the German-speaking regions, ensuring a stronger presence in neighbouring Austria.

Novomatic Eyes International Markets

Novomatic’s decision to sell Admiral aligns with its broader goal of focusing on international growth, particularly in burgeoning markets like the United States. The company has been heavily investing in its U.S. operations, a strategy reinforced by this divestment.

Stefan Krenn, a member of Novomatic’s Executive Board, noted that the sale underscores the company’s commitment to global expansion. He stated:

• “Admiral Group has been a successful part of our operations, but our focus is now on international growth markets. Tipico’s professionalism ensures that Admiral will continue to thrive in Austria.”

This shift reflects Novomatic’s evolving priorities, aiming to consolidate resources and capitalise on emerging global opportunities.

The Role of Admiral in Austria’s Gambling Landscape

Admiral Group has been a cornerstone of Austria’s gambling industry, offering services that span betting shops and gaming terminals. Known for its extensive network, the company has been a significant player in providing gaming solutions for the state lottery.

• Sports Betting: A network of betting shops catering to Austrian customers.
• Gaming Terminals: Infrastructure for the country’s state lottery, ensuring high-tech, reliable gaming solutions.

This legacy, combined with Tipico’s innovative approach to technology, presents a strong foundation for future growth in the Austrian market.

Industry Buzz: ICE Barcelona and Future Plans

The announcement coincides with Novomatic’s preparations for the ICE Barcelona event, a pivotal gathering in the gambling and gaming industry. Scheduled from January 20 to 22 at the Grand Fira, the event will see Novomatic showcasing its latest innovations. Attendees can find them at stand 3K80, highlighting the company’s continued focus on cutting-edge solutions for the international market.

This development also signals a period of intense competition and growth for the industry, with companies like Novomatic and Tipico positioning themselves for long-term success.

Looking Ahead

As the regulatory review progresses, the deal’s completion could reshape the gambling landscape in Austria and beyond. Novomatic’s focus on international expansion and Tipico’s drive to solidify its market position illustrate the dynamic nature of the gaming sector. Both companies are poised to benefit significantly from this strategic alignment, setting the stage for new growth opportunities.

Online gaming operator Greentube Alderney Limited, trading as Admiral Casino, has been ordered to pay a $1.2 million (£1 million) settlement by the UK Gambling Commission (UKGC) after failing to meet social responsibility and anti-money laundering (AML) standards. This announcement underscores the Commission’s commitment to ensuring gambling operators adhere to strict compliance frameworks.

Settlement in Lieu of Penalty

The UKGC revealed that the settlement agreement was reached as an alternative to a financial penalty, with Greentube cooperating throughout the investigation. The operator accepted responsibility for its shortcomings early on, which related to its AdmiralCasino.co.uk platform.

The Commission found several breaches, with key issues highlighting Greentube’s failure to fully enforce its internal policies designed to protect customers and monitor transactions effectively.

Social Responsibility Failures: Gaps in Protecting Players

Greentube’s approach to social responsibility came under scrutiny for failing to identify signs of financial harm and customer vulnerability. Specific cases revealed lapses in monitoring customer activity and ensuring income sustainability.

1. Ignored Customer Red Flags
   One customer submitted a bank statement with a negative balance and evidence of frequent gambling transactions. Despite this, no action was taken until the customer deposited £4,000 over four months. The Commission criticised the delay, emphasising the importance of timely escalation.
2. Inadequate Verification of Income
   Greentube’s policies require customer limits to align with sustainable income. However, the operator allowed deposits based on irregular or one-off income without adequate checks.
3. Missed Indicators of Harm
   A lack of controls meant the company failed to identify and address behaviours indicative of gambling harm. The UKGC reiterated the operator’s responsibility to protect players, especially those showing signs of potential harm.

Anti-Money Laundering Failures: High-Risk Transactions Overlooked

The UKGC’s findings also highlighted weaknesses in Greentube’s anti-money laundering processes. These lapses included failing to scrutinise high-risk transactions and investigate potential links to criminal activity.

1. Delayed Scrutiny of Suspicious Transactions
   One customer presented a bank statement with over £100,000 in unusual transfers and a negative closing balance. Despite these red flags, the account was not reviewed for four months.
2. Recycled Winnings Mismanagement
   Greentube failed to enforce its recycled winnings policy. A customer deposited over £70,000 after a large win, using multiple payment methods, without providing source-of-funds documentation.
3. Failure to Address “Risky Occupations”
   Policies requiring heightened scrutiny for customers in high-risk occupations, such as finance management, were not consistently applied. One case revealed no measures were taken to mitigate risks associated with a finance manager’s activity.
4. Overlooked Linked Accounts
   Greentube did not flag connections between a player and another account held by a blocked customer with a criminal history. The shared address and surname should have triggered additional investigations.

Repeat Offences and Industry Implications

This is not the first time Greentube has faced regulatory action. In 2021, the operator paid £685,000 following an investigation into similar failings. The repeat nature of these breaches raises concerns about Greentube’s compliance culture and its ability to implement effective risk management systems.

Broader Impact on the Gambling Sector

The UKGC’s actions highlight the increasing pressure on operators to prioritise compliance. Failures such as those identified in this case have far-reaching implications, not just for affected customers but for the industry as a whole. Regulators worldwide are closely watching these developments, signalling that leniency for non-compliance is no longer an option.

What’s Next for Greentube?

In addition to the financial settlement, Greentube has committed to improving its systems and processes. The UKGC will continue to monitor the operator’s activities to ensure adherence to regulatory requirements. This case serves as a stark reminder to the industry that robust compliance is non-negotiable.

Ohio’s gambling industry continues to see steady gains, with the state’s casinos and racinos reporting $198.2 million in gambling revenue for November 2024. This figure reflects a $3 million increase from October and a significant year-over-year growth compared to the $186.1 million generated in November 2023, according to data from the Ohio Casino Control and Lottery Commissions.

The reported revenue represents the amount retained by the establishments after winnings are paid out but before state taxes or fees are deducted. The figures suggest a growing appetite for gambling entertainment in the state, driven by both casinos and racinos.

Full-Scale Casinos Make Gains in Table Games and Slots

Ohio’s four casinos, which provide a mix of slot machines and table games, brought in $84.3 million in November. This marks a clear improvement from the $80.4 million earned in the same month in 2023. The steady rise highlights the popularity of casino gaming, with offerings such as blackjack and roulette drawing consistent interest.

Casinos in Ohio are strategically located to attract large crowds. The November revenue growth signals that their marketing and operational strategies are paying off, particularly as they compete in a highly dynamic entertainment market.

Racinos Outpace Casinos with Strong Slot Revenue

The state’s seven racinos, which operate at horse racetracks and offer only slot machines, continued to outshine casinos in terms of revenue. November saw racinos rake in $113.9 million, a substantial increase from $105.7 million in November 2023. These numbers exclude revenue generated from horse race wagering, focusing solely on slot machine earnings.

Slot machines remain the backbone of Ohio’s gambling sector, and racinos are capitalising on their appeal to casual gamblers. Their locations, often in suburban or rural areas, make them accessible to residents who might not venture into full-scale casinos.

Year-to-Date Revenue Remains Steady

Despite November’s gains, the broader picture for 2024 indicates little overall change in revenue compared to 2023. Through the first eleven months of the year, the combined revenue for Ohio’s casinos and racinos stands at nearly $2.2 billion. This plateau suggests that while there are month-to-month variations, the state’s gambling market may have reached a saturation point in terms of growth.

Industry analysts will likely keep a close eye on December’s figures, as they traditionally reflect the impact of holiday travel and end-of-year spending habits. Any significant movement in the final month of 2024 could set the tone for expectations in 2025.

Cleveland Market Highlights: Mixed Results

Greater Cleveland’s gambling establishments showcased a mix of growth and stagnation in November.

• MGM Northfield Park led the pack with $25.2 million, up from $23.6 million in November 2023.
• JACK Thistledown Racino followed with $15.4 million, improving on last year’s $14.6 million.
• JACK Casino Cleveland, however, saw a slight dip, reporting $21.6 million compared to $21.4 million the previous year.

These figures highlight the competitive dynamics within the Cleveland market. While some venues are expanding their customer base, others are grappling with the challenges of maintaining growth in an established market.

Monthly Breakdown and Broader Implications

Here’s a closer look at the monthly figures for November:

While the data underscores consistent growth, the slight declines in certain venues suggest the need for tailored strategies to attract and retain customers. Enhanced loyalty programmes, refreshed game offerings, and innovative promotions could be key to staying competitive in the market.