Tougher advertising rules in the UK, the new partnership between GVC and MGM Resorts, as well as the development of the British "lottery" giant ZEAL.
The UK Commission tightens gambling advertising rules
On August 1, the commission published an updated set of rules, which are stricter than those previously in force. The new rules are designed to specify the parameters surrounding the advertising industry with regard to gambling. UK Gambling Commission (UKGC) believe that the guidelines will provide better consumer protection while at the same time promoting a more balanced attitude towards gambling as a form of entertainment. The new rules will become active on October 31st, 2018. It will then be easier to impose fines on companies that violate advertising rules, mislead the user with various questionable if not outright deceitful promotions and promises of bonuses, and unreasonably restrict the user's ability to withdraw funds. The commission will also punish operators who send out spam and unsolicited marketing texts.
The new changes are part of a three-year plan to solve problems and improve security in the field of gambling. The strategy includes enhancing the protection of consumer interests, preventing public harm and raising standards in the gambling market. Commission Chairman William Moyes said this year will bring many changes in the gambling industry.
The fight against unscrupulous companies is beneficial to consumers and also to the large gambling companies that follow the rules and are regulated by the commission. The competition around GVC Holdings, William Hill, 888 Holdings, Betfair Group and others in the UK will be reduced, which means that their market share will grow. However, these changes will also be favorable to the start of new Blockchain projects. Thanks to the transparency of Blockchain projects, the commission will be able to easily control them.
Two giants of the gaming industry have recently signed a contract for $200 million
Due to relaxed regulations on sports betting in the US, the European holding company GVC and the American company MGM Resorts will share a market of 90 million potential gamblers in 15 states. For this purpose, the companies signed a cooperation agreement and invested $100 million. Both sides will have access to all online games and betting tournaments, operate from separate headquarters and form a management team drawn from employees of both companies.
A company with 30 years of experience - MGM Resorts - is actively growing in stature. In mid-June in New Jersey, the rates that could be legally grossed from sports betting were laid out in legal terms and in two days the casino Borgata collected profits from them. For a fortnight, the casino received 7% more than in the same month last year. By no later than September 2018, the company is expecting similar approval for the state of Ohio, where the population exceeds that of New Jersey by 30%. In 2008, prices for MGM Resorts shares fell; however, over the 10-year period since then their value has increased seven times over.
Holding GVC has already had successful mergers in the past 10 years. In March 2013, the holding acquired a company with a 15-year history: Sportingbet. In 2016, GVC acquired Bwin.Party Digital Entertainment, which is a gambling company. This year the holding has absorbed the bookmaker Ladbrokes Coral. For 10 years, the value of their shares has grown 10 times and is currently trading at its peak.
It is likely the next step of MGM Resorts and GVC Holding will be to develop their business and raise their stock values to new levels.
ZEAL intends to conquer new markets
ZEAL's stock prices fell during 2017, but since early 2018 their value has increased by almost 50%. According to Frank Hoffmann, Investor Relations Manager, this growth has been due to effective marketing. Members of ZEAL, Lottovate and myLotto24, saw their income grow by 17% in six months. With the increase in marketing expenditure, there have been 293,000 new registered customers.
In May this year, the company launched a synthetic lottery in Australia, with the product sold through newspaper kiosks. ZEAL launched MyLotto24 despite the introduction of a new bill that prohibits all lotteries in the country. Working with newspaper kiosks, according to the general manager of the VANA association Chris Samartzis, would have provided additional income to small business owners. Unfortunately, the views of the general manager were vigorously opposed by other associations. As a result, the Australian Parliament approved a ban on the lottery and ZEAL was forced to leave the country.