FTC claps back at MGM, problem gambling awareness in the army, LeoVegas buys Tipico US

This week’s main events had to do with several important developments in responsible gambling, along with a handful of major business stories.

The legal saga between MGM Resorts International and the Federal Trade Commission (FTC) continues after the regulator sought to obtain information pertaining to the September 2023 cyberattack in a new filing in a court of Nevada.

The argument goes that MGM’s legal defense that the company is not subject to Section 5 of the FTC Act is "meritless," as the watchdog is looking into unfair and deceptive acts rather than specific financial offenses.

Any objection to the jurisdictional clout of the FTC in this regard is unfounded the regulator said. The final word now rests with the court, which will decide which party is right, but whatever the decision, it will not be the last chapter in the ongoing battle between the two parties.

Business and events

AffPapa has introduced a new event to the calendar, with iGaming Club Lisbon 2024 set to take place on September 22 and become the latest instalment in the busy calendar of gabfests hosted by AffPapa.

AffPapa’s iGaming Club phenomenon has been a hit that has won thousands of industry specialists. The latest get-together will reunite 500 industry insiders.

LeoVegas Group, an MGM Resorts International company, has confirmed that it is acquiring Tipico Group Ltd’s US-facing assets. The company is buying out both the online and sportsbook products and platforms, seeking to expand its own capacity of leveraging proprietary iGaming technology to spearhead international growth.

No further financial details about the deal have been disclosed at this point, but both MGM Resorts International and LeoVegas Group have welcomed the opportunity, seeing the acquisition of a dedicated tech platform as an important step forward for the company’s sustainability and growth.

Another Tory MP has been implicated in the ongoing political betting roil, which has already seen a number of high-ranking party functionaries called out in public by the UK Gambling Commission.

Conservative Party Chief Data Officer Nick Mason is said to have placed multiple bets on the outcome of the election according to The Sunday Times and the newspaper’s sources. Mason, though, has vehemently denied wrongdoing. His boss, Prime Minister Rishi Sunak has been livid with the pre-election fiasco going on air to say that he was indeed "very angry."

Responsible gambling

There were important developments in responsible gambling this week that came from several corners. For starters, GambleAware reiterated its position that sports betting advertisement has to go from sports. The charity said that there is enough public support backing the matter, and that the incoming UK government would have to act swiftly and come up with a decision.

Kindbridge Research Institute has announced a new Military Gambling Awareness Committee (MGAC) that is designed to help foster an environment of prevention and awareness for problem gamblers within the military, enhancing members’ service readiness and improving their mental health and well-being.

idPair, the expected free self-exclusion gambling program to launch in the United States in August, has confirmed that its initial launch will also cover the state of California. The Responsible Online Gaming Association has added a new member in the meantime.

Bally’s Corporation is now officially joining the ranks of companies that are looking to protect consumers and help elevate the industry’s understanding of why people fall victims to problem gambling in the first place. Bally’s is going to be contributing with other members to advance research and understanding in the matter.

In related time, a new study by Roy Morgan has discovered that problem gamblers contribute 34% of the value of all bets in Australia. This number indicates that Australia has a long way to go in addressing problem gambling as a whole, and better understanding where the revenue is coming from. An estimated 1m people in Australia are either problem gamblers or at moderate-risk gamblers.

In the meantime, and a little outside the scope of responsible gambling per se, Lithuania has decided to introduce a small tax increase on gambling revenue. The new rate, proposed by parliament and passed with an overwhelming majority, sees the current rate increase to 22% from 20%.

The change will be enacted in early 2025, and it’s not expected to drastically impact the operations of market members. Yet, the country’s gambling trade body has already sounded an alarm that many regulated operators may find even that small of an increase an issue.

Hear the industry talk

In this week’s catch-up with some of the biggest names in the industry, we share an opinion piece by BGaming Chief Executive Officer Marina Ostrovtsova who spoke about how businesses can help themselves stand out in the busy and saturated iGaming market. Ostrovtsova’s insights are based on her intimate knowledge with industry and its dynamics.

In similar news, we have caught up with Diana Otalora, General Manager at Stake Colombia, with whom we discussed her company’s current plans in the region and how Stake has been coming up on the Latin American iGaming scene. Otalora had nothing but confidence for the future of the brand.

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