The UKGC Rolls Out Better Gambling Protection Rules

The United Kingdom has been consistently hailed as a role model for online gambling licensure and regulation. Some gaming professionals are however of a different view. This is because most companies have in the recent past violated the various laws, rules, and regulations that govern gambling.

 

Some of these violations include those stipulated by the Advertising Standards Authority and the United Kingdom Gambling Commission. Examples of these violations include running misleading advertisements, targeting children who are not mature enough to gamble, and placing unnecessary restrictions on the withdrawals of earnings.

 

These violations have led to public outcries from various quarters. Most gamblers have complained of misleading bonuses and adverts. Most parents have also expressed concerns that their children have been unnecessarily bombarded with undesirable advertisements.

 

In response to these complaints, the United Kingdom Gambling Commission has put in place measures that are geared towards rectifying these problems. It has subsequently announced the introduction of new rules that gambling firms shall have to abide by starting from October 31st, 2018.

 

These rules and regulations are largely geared towards safeguarding the interests of the consumers especially from those adverts that are deemed misleading. They are also meant to shield the vulnerable segments of the population from undue exploitation and deception.

The most significant aspect of these restrictions is stiffer penalties on the companies that violate these regulations. Additionally, the gambling commission shall have the powers to enforce the new laws which shall also include the ability to impose hefty penalties on those operators that breach the prevailing advertising rules.

 

Further to these, the gambling operators shall be required to resolve any complaints that arise internally. They shall do so within an eight-week window. In case this window elapses without the dispute having been conclusively dealt with, the third-party shall be free to bring the said issue to an arbitration body.

 

The commission had these to say about the new regulations: “We will now have the teeth to deal appropriately with all the emerging issues. We shall particularly deal ruthlessly with the firms that tend to glorify gambling. We shall also be unforgiving to those gambling operators that tend to target children and other vulnerable persons in the society.”

 

Other than these, the commission has also put in measures to make it easier for the gamblers to receive their dues. It has lifted the cumbersome withdrawal restrictions that most operators put in place to prevent their gamblers from receiving their incomes. The same case shall apply to unsolicited commercial e-mails.

 

Neil McArthur, the Chief Executive of the Gambling Commission, had these comments to state:

“It is our utmost priority to shield the interests of the consumers. The same has to apply to the gambling operators. The changes we have instituted shall offer added protection from irresponsible adverts and misleading promos. They shall also see to it that gamblers withdraw their incomes faster and smoothly.”

 

These measures shall undoubtedly inflate the costs of doing business. However, they are also beneficial to the gambling operators. They have the impact of instilling confidence on the gamblers. This has the attendant positive impact of increased revenue inflows and income of the operators.

 

River UK Casino Limited Acquires a 70% Majority Stake in Gaming Realms PLC.

The gambling sector of the United Kingdom is set to experience a major shift. The UK gambling giant, River iGaming has established a new subsidiary, River UK Casino Limited which it has used to acquire a 70% majority stake in the Gaming Realms plc.

 

This takeover encompasses X Factor Games sites, Pocket Fruity, Britain’s Got Talent Games, and Spin Genie over and above the gambling giant. The takeover shall cost £23.1 million, subject to the approvals by the shareholders. At the conclusion of the takeover, the remaining 30% stake and the flagship Slingo brands shall be held by Gaming Realms.

 

This 30% stake shall be subjected to a call option and mutual put arrangement. This privilege, as per the sales arrangement, shall be exercised on or before 31st October 2020. It shall further be subjected to the uncapped valuation of around 5.5 times the earnings-before-interest-and-taxes of River UK Casino. The entire privilege shall run for the duration of 12 months preceding the 30 June 2020 deadline.

 

A press release from the company stated that it shall pay out a minimum of £8.4 million to effect the takeover. It plans to spend half of this amount as soon as the deal is sealed and the remaining half progressively on an earn-out basis. It further anticipates spending yet another £14.7 million on the basis of earn-outs on or before August 31st, 2019.

 

Gaming Realms CEO, Patrick Southon had this to say:

“This sale is indeed revolutionary. This is because it will grant us the leeway to channel all our resources on matters of international licensing as well as the development of newer gaming contents. This shall subsequently place us in a stronger position as to let us generate further profitable growths in the future.”

 

In all, River iGaming which is the parent company of the River UK Casino Limited expects to make no less than £1m in annual revenue with the new acquisition. This stems from the profitable nature of the particular business. For this to happen, the acquisition shall have to generate earnings-before-interest-and-taxes of no less than £6 million in the 12-month duration prior to 30 June 2019.

 

For instance, in the financial year ended 2017, Gaming Realms plc made net gaming revenue to the tune of £13.9m. In the same year, its adjusted profit before tax and the corresponding interest amounted to £2.2m.

 

During the transition phase, the present management team of the business will oversee the River UK Casino till June 30, 2020. At the same time, River iGaming and Gaming Realms plc will jointly raise a working capital loan facility of around £3 million to fund investments in marketing for the business until at least 30 June 2019.

 

This loan facility shall be repaid in full no later than 30 June 2020. Of the £3 million, £2.1 million shall be contributed by River iGaming with the remaining £0.9 million by Gaming Realms plc.

With regards to this, Gaming Realms had this to say:

“We plan to spend the first batch of the £4.2m of the sales proceeds to develop new gaming contents and enhance the current platforms. We shall also provide a loan of approximately £0.9m to fund the River UK Casino’s marketing budget as stipulated previously.”

 

This, the company argues, is consistent with its strategy of channeling its resource base on content developments and international licensing. The final resolution to sell the 70% stake, however, rests with the general meeting and is expected to be endorsed on July 18 in London, United Kingdom.

 

Given the highly lucrative and competitive nature of the online gambling sector in the United Kingdom, we all wait to see just how much impact this acquisition is going to have.

 

 

 

Bingo! Humble Oldham Man took Home £50,000

A whopping £50,000! That is what Steven Bray, a 35-year-old Oldham resident is set to pocket after winning the national Bingo Game Jackpot at Mecca.

 

The night of Tuesday, 5th June will forever remain etched in his mind since it is the day fate granted him a wish every bingo player lives for- having the right number combination to win the jackpot! Bingo has been a traditional family pastime for Steven, having been introduced to the game by his late parents, seven years ago.

 

The win was not the first one for Steven, but none of his previous wins was as big as this life-changing jackpot. For the 35-year-old who works as a hire controller for Hire Station, this win opens many doors. He plans to take a holiday to the Maldives, a popular destination that he has always wanted to visit. Clearing his mortgage is also high up on his list of priorities.

 

When asked how the win will change his daily life, he said: “I work two jobs which keep me extremely busy, so I’m hoping to use the money to take a break from my hectic lifestyle.” He also hopes that some aspects of his life like the relationship he has with the people around him will remain the same. That is why he plans to hold a Thanksgiving party for family and friends.

 

Despite the absence of his parents, Steven believes his luck when choosing the numbers could be a gift from them. They were avid bingo players, and he would have enjoyed sharing the joy of winning with them. It was actually a bittersweet memory, having lost his dad only last September, to a heart attack – He was aged 69. His mother also died of a heart attack back in 2011 while she was 55 years old.

 

Asked why he loves bingo, Steven says it provides a sweet escape from daily hassles. “It’s always a good buzz when waiting for the last numbers to be called,” he adds. Playing bingo once or twice a week offers him a chance of meeting new people.

 

Tony Beverly, the Mecca Oldham club manager was also elated by Steven’s win because it adds to his club’s tally of jackpot winners in the new National Bingo game that started on 30th April. Steven’s win is the 11th. He said: “it is great to see one of our longest standing players win the National Bingo Game. He really couldn’t believe it when we told him there and then that he had won a £50,000 Jackpot.” The new National Bingo game offers various jackpot prizes including £100, £1000 and £50,000 on each game. House prices are also available at every club.

 

Apart from Steven, everyone at the club also had a reason to celebrate. The party held for members by the Mecca Bingo club on 21st June gave everyone a chance to enjoy a drink, and tuck some buffet as they watched Steven, his sister and some of his buddies receive the giant check on stage. Their optimism that probably some of Steven’s luck would rub off on them was quite apparent.