Greg Tingle Official Blog
High Stakes: The ‘life-or-death’ battle over a company name
Two stars of Australia’s new economy – the similarly named share trading platform Stake and online cryptocurrency casino juggernaut stake.com – are locked in a life-or-death court battle over naming rights amid growing concerns the gambling outfit has major plans for its home country.
Stake the share platform launched legal action in the Federal Court in August seeking to enforce its trademarks and stop stake.com, a multibillion-dollar enterprise, from using that name for its business in Australia.
The fast-growing Sydney-based share trading platform, the third-largest broker in the country, alleges that the casino group stake.com has been breaking Australian consumer law and has misled consumers through the use of its brand in Australia and its marketing, including its sponsorship of the Alfa Romeo team and the sale of apparel.
Stake the share trading platform, which owns the URL stake.com.au, alleges stake.com’s use of the name in Australia has potentially led to consumers believing the two brands are related when they are not.
The share trading platform Stake, founded in 2017 by entrepreneurs Dan Silver and Matt Leibowitz, alleges there is a threat that more consumers could be misled if stake.com is allowed to continue with its plans to grow its business significantly in Australia under the brand name Stake.
The casino group, led by Melbourne-based twenty-somethings billionaires Ed Craven and Bijan Tehrani, is expected to seek to have the matter summarily dismissed.
A spokesperson for stake.com said: “We are aware of a frivolous claim lodged in the Federal Court by Stakeshop, which in part claims that our global Formula One team sponsorship impinges on their ability to sell trucker hats.”
“We are proud of the global stake.com brand. As a group, we abide by the laws of the countries in which we operate, and do not offer our stake.com platform to Australian customers. We believe the claim has no legal merit and will vigorously defend our rights.”
The court case has shed new light on stake.com’s expansion plans for Australia, where it remains blocked to Australian users.
Court documents reveal the casino group has sought to buy the stake.com.au website from the sharemarket trading platform business. According to the court documents, the casino group has also registered several Australian website domains for its Australian expansion and applied to register a slew of trademarks including Stake Australia, Stake Bet and Stake Casino.
The Federal Court action comes after years of simmering tensions between the two groups over the use of stake.com’s name in Australia.
Stake.com was established in 2017 but flew under the radar in Australia until late 2021, when this masthead revealed the local origins of the business that had grown to be one of world’s largest online casinos, processing hundreds of billions of bets on sports, virtual table games and online slot machines.
In early 2022, stake.com signed hip-hop megastar Drake as its lead ambassador. Later in 2022 it signed a multi-year deal to become lead jersey sponsor for English Premier League team Everton FC as well as its sponsorship of Alfa Romeo’s F1 team.
The significant increase in stake.com’s marketing and media presence was noticed at the share trading platform group that built its user base during the COVID-inspired boom in Gen Y and Gen Z investors, thanks in part to its ultra-low cost brokerage fee model, savvy marketing and the broadening into other financial services including a superannuation product.
A spokesman for Stake the share trading platform said that since the group was founded in Australia it had built a client base of more than 500,000 and more than $2.5 billion in assets under management.
“Over the past six years, we have established a trusted and culturally relevant Australian brand that reflects our dedication to meeting customer needs. It permeates all parts of our business, spanning products, content, internal culture, customer interactions and much more, making it our most valuable asset. We are committed to protecting the Stake brand and the high level of consumer trust associated with it,” the spokesman said.
“We are concerned by the threatened use of the Stake brand in Australia by stake.com in relation to gambling, casino and sports betting services, due to the potential for customer confusion and damage to our brand and reputation.”
Stake.com is not available in Australia but according to court documents, the group is already making arrangements for a major expansion in this country and is seeking a sports betting licence.
In October 2022, stake.com casino executive Brais Pena Sanchez contacted Stake share trading founder Silver on LinkedIn and arranged a video conference meeting where the pair discussed Stake the share platform selling its Australian URL, stake.com.au, to the Curacao-registered, Australian-operated casino group.
During those discussions, Sanchez – the casino group’s chief strategy officer – informed Silver that stake.com planned to launch in Australia under the name Stakebet, or similar, according to court documents. A deal never ensued and the website remains owned by the share trading platform.
Tensions flared again in early 2023 after stake.com the casino was announced as the new team sponsor for Formula 1 team Alfa Romeo, sparking a flurry of legal letters between the two groups ahead of the Melbourne race.
According to the court documents, the casino group’s lawyers assured the share trading Stake that it would not use its logo in conjunction with the Melbourne Grand Prix and did not intend to display the name on any vehicles or uniforms or as part of the Alfa Romeo team name.
However, the share trading Stake alleges that during the four days of the Grand Prix, Stake casino logos appeared on banners for official team merchandise, the team display and on signs at the event and in the race program.
In May, Stake.com was applying to register a large number of new trademarks for goods and services. This included Stake Australia, Stake Bookie, Stake Betting, Stake Gaming, Stake Esports, Stake Casino, Stake Sportsbook, Stake Bet, Stake Punt, Stake Sports, Stake Pokes and Stake Slots.
The casino group has also registered a series of Australian website names under the “.au” domain including stakebet.au; stakecasino.au, stakesports.au and playstake.au.
The case continues.
Crown to launch digital self-exclusion scheme for casinos - July 2023
People with gambling problems will be able to ban themselves from Crown casinos over the internet instead of having to do so in person, as part of a wider overhaul of the group’s approach to harm minimisation.
Crown Resorts’ new safer gambling program also includes the establishment of a dedicated gambling policy team, which will monitor customer playing behaviour and create interventions to better prevent gambling harm from occurring.
Crown boss Ciaran Carruthers joined the business last year following an overhaul of Crown’s management, after a series of bruising inquiries into the company. Carruthers, who has led other global casino groups including Wynn Macau, said the new leadership of Crown was committed to making gambling safer, even if it meant less turnover in its casinos.
“I have been in this business for 34 years and I can tell you – no one does this,” Carruthers said.
“It is critically important to me that when I look at the long-term viability of this business that people see our resorts as entertainment to enjoy safely.”
Under the changes, customers will be able to block themselves from entering a Crown casino through a new digital self-exclusion portal. Those who wanted to ban themselves from Crown venues were previously required to visit, in person, a designated responsible gambling centre run by the group.
The group has also moved to cashless gaming at Crown Melbourne and Crown Sydney – a condition of its temporary gaming licences in NSW and Victoria– as well as introducing $10 maximum bet limits on poker machines at Crown Perth. The technological overhaul required to facilitate the changes has so far cost the business $13 million.
Carruthers pointed to changes Crown has already made which go beyond government regulation, such as encouraging customers to take breaks every three hours, as an indicator of its commitment to shifting problem gambling patterns.
The group said it wanted to establish advisory panels to work with state regulators and community groups to improve gambling harm education and share its research.
Carruthers conceded some aspects of its new approach to harm minimisation, called Crown PlaySafe, would not be welcomed by heavy gamblers. But he argued the changes would make the casinos more appealing to the general public.
Crown’s new head of gambling policy research, Dr Jamie Wiebe, said the most critical shift in the groups gambling policy was a move away from harm minimisation to prevention.
“We want to prevent a problem from ever happening,” she said.
The new program was unveiled just weeks after the Federal Court determined Crown will pay one of the biggest penalties in Australian corporate history to the financial crimes watchdog, after past anti-money laundering and counter-terrorism failings in its Perth and Melbourne casinos.
The $450 million fine is about five per cent of Crown’s last listed market capitalisation before it was taken private by Blackstone Capital for $8.9 billion in May last year.
In 2019, an investigation by this masthead and 60 Minutes revealed Crown had been infiltrated by international criminal syndicates and money launderers.
Crown was forced to overhaul its board, management and procedures to satisfy the regulators, who approved a conditional licence for Crown to operate its Barangaroo casino in June 2022. The conditional licence is valid until the end of this year.
Carruthers said the integrated hospitality offerings at Crown meant the casino could afford to embrace the shift.
“I want people to enjoy the experience of our casinos whether they’re coming for dining, casino or retail. I’m fairly agnostic across which one of those experience or how many of those experiences you want to enjoy,” he said.
Reclusive Sydney gambling mogul emerges as kingmaker in South Africa - September 2023
Reclusive online gambling mogul Martin Moshal is playing an increasingly influential role in a push to oust the South African government.
Mr Moshal, who lives on the exclusive Sydney Harbour row of Camp Cove alongside shopping centre billionaire Steven Lowy, is not on many rich lists but has made a fortune from online casino technology.
Herman Mashaba is the leader of ActionSA, one of a handful of opposition parties Mr Moshal has backed in the lead up to the 2024 South African national election. Mr Mashaba, known for taking a tough line on immigration and endorsing hard labour for prisoners, is hoping the gambling tycoon will continue his support.
“I wish he won’t give up on us and help us democratically remove the [incumbent African National Congress] and bring about a peaceful transition... please help ActionSA,” Mr Mashaba said in an interview with The Australian Financial Review.
“I have been lucky to have known Martin long before I went into politics,” he added. “I approached him and he was willing to back me up because he knows me as a capitalist... Martin was one of the first to come to the party.”
President Cyril Ramaphosa’s social democratic African National Congress party is set to come under pressure next year amid South Africa’s dire economic troubles. A senior party official has warned the country could become a failed state.
Mr Moshal is the largest individual political donor in South Africa in the last two years. He has given 46.5 million rand ($3.8 million), according to electoral records analysed by My Vote Counts, a non-profit advocating for more transparency in politics.
“Given the amounts donated it has become clear to us he now has a large stake in our politics,” said Robyn Pasensie, a researcher at the organisation.
The size of Mr Moshal’s wealth is unknown. He is extremely private and only admitted to his ownership of online gambling giant Betway after UK journalists traced his ownership back to offshore trusts. Mr Moshal did not respond to a request for comment.
Aside from ActionSA, Mr Moshal has donated to the Democratic Alliance (DA), Build One South Africa and said he also intends to support the Inkatha Freedom Party. Mr Moshal is ActionSA’s biggest backer. The Australian Financial Review is not suggesting Mr Moshal supports the party’s policies.
“I’m not saying these parties are all perfect, but we shouldn’t let perfect be the enemy of good... They are all far better than the government we have today,” Mr Moshal told The Jewish Report earlier this year.
“Pirkei Avot was my late dad – John Moshal’s – favourite part of the Talmud within which Rabbi Tarfon is quoted as saying, ‘It’s not up to you to finish the task, but you aren’t free to avoid it’.”
Mr Moshal said he believed South Africa needed a new government and was on its way to becoming a failed state.
“[This is a] government that’s corrupt, cannot provide basic security and opportunity to its citizens... we need the change of government and leadership that these parties can provide.”
ActionSA is known for advocating for life sentences and hard labour for serious offenders and also wants to repeal the ANC’s Broad-based Black Economic Empowerment (B-BBEE) policy, a form of affirmative action introduced post-apartheid.
“Martin knows my views on racial policies and how dangerous they are,” said Mr Mashaba, who started off in business and was the founder of African hair care brand, Black Like Me.
ActionSA has also been vocal on immigration, views labelled as “xenophobic” by some critics and politicians.
“We recognise that South Africa was built... on the back of migrants,” said Mr Mashaba. “But they must come here legally... you break our laws, we will send you back to your country, the country where you came from.”
One of South Africa’s main economic problems is mismanagement and corruption inside the country’s electricity utility Eskom. The utility has been forced to implement rolling blackouts, which have further stymied economic growth.
“If Eskom cannot run on a commercial basis then it must die a natural death,” Mr Mashaba said, adding changes were needed to give other companies the opportunity to compete.
Mr Moshal’s Entrée Capital is one of Israel’s most active funds in the Israeli VC space. He is the beneficiary of a trust which is the largest individual shareholder in Super Group, which became the parent of Betway and online casino brand Spin after a 2022 listing. The group reported net gaming revenue of €1.3 billion ($2.1 billion) in 2022.
“Moshal is one of the least visible betting entrepreneurs in the world,” Guardian reporter Rob Davis wrote in his book Jackpot: How Gambling Conquered Britain.
“Moshal made much of his fortune from his home in Durban where he patented a series of technological solutions for the online gambling world and developed them via his company Microgaming. The company has since become one of the industry’s leading software players”
A philanthropist, he sits on the capital management advisory committee of Sydney’s Moriah College, alongside Steven Lowy and former Babcock & Brown chief executive Phil Green. He is also a life trustee of the Moriah Foundation and previously donated to Israel’s SpaceIL project attempting to land spacecraft on the moon.
SkyCity puts aside $45m for potential AUSTRAC penalty - August 2023
SkyCity Entertainment set aside $45 million for a penalty if it is convicted of breaches of anti-money laundering and counterterrorism laws.
The financial crimes watchdog, AUSTRAC, lodged proceedings against SkyCity in December over alleged serious and systemic non-compliance with the laws at its Adelaide casino.
SkyCity said on Monday it was difficult to determine the size and timing of the penalty, given the proceedings are in the early stages. But it decided to lodge a $45 million provision on the basis that each breach attracts a maximum civil penalty of between $18 million and $22.2 million.
“Estimating the potential exposure to penalties with any degree of accuracy at this stage of that ongoing process remains challenging, particularly given the outcome is highly dependent on a range of factors which are not yet known,” a statement said.
AUSTRAC has alleged “serious noncompliance” with anti-money laundering laws against SkyCity, claiming the company allowed 59 suspicious patrons to churn more than $4 billion in dirty cash through its Adelaide casino. The independent review is on hold because of the Federal Court action.
The company cut full-year earnings expectations at an investor day in May, with a slowdown in revenue from the international business and rising legal and compliance costs related to a crackdown on money laundering weighing on its bottom line. Analysts have provisioned about $50 million for the AUSTRAC fine, but there is no guarantee that will be enough.
In late May, SkyCity announced it would hire an independent expert to review its anti-money laundering and counter-terrorism programs. It is still waiting for South Australia’s investigation into whether it should hold a casino licence to recommence.
“Judgements in civil penalty proceedings bought by AUSTRAC to date demonstrate that the Court’s determination of the appropriate penalty ... is very specific to the fact in each case and that the Court will have regard to a broad range of factors,” SkyCity said.
SkyCity’s provision announcement coincided with a $45.6 million write-down of the Adelaide casino licence, which was attributed to the value and timing of future discounted cash flows.
The company said the impairment and provision were non-cash and would not affect earnings for fiscal year 2023. Earnings before interest, tax, depreciation and amortisation remain in line with guidance of $NZ300 million ($276.6 million) to $NZ310 million.
SkyCity’s provision comes a month after the federal court agreed on rival casino operator Crown’s $450 million fine for breaches of anti-money laundering and counter-terrorism laws. The fine is being paid over a two-year period without interest.
Shares closed on Friday at $2.09.
Hotel room rates plummet for F1 Las Vegas Grand Prix weekend - September 2023
Hotel room rates for Las Vegas Grand Prix weekend have fallen by nearly 60 percent in some cases since they were first posted last fall. But an industry expert says that does not necessarily mean interest in the event is failing to meet expectation.
When select Las Vegas resorts in November 2022 opened their booking schedules for race weekend, listed prices were as high as they have been seen in the city’s history. While still at higher than normal rates, a major decrease has occurred.
When a drop in booking pace occurs, it automatically triggers revenue management systems to suggest the lowering of room rates, according to Dr. Mehmet Erdem, professor of hotel operations and technology at UNLV’s William F. Harrah College of Hospitality.
Pennsylvania online casinos cross $5 billion in lifetime revenue - September 2023
Business is booming in Pennsylvania. The Keystone State is the clear market leader when it comes to online casino revenue within the US. After August’s total of $171.9 million, Pennsylvania surpassed the $5 billion threshold for lifetime revenue.
Pennsylvania online casinos are constantly upgrading and adding new content, and customers are responding. It doesn’t appear the market will be slowing down anytime soon, either.
Pennsylvania has set the US online casino revenue record four times over the last 11 months, and almost did so again. August’s revenue total of $171.9 million came second to March’s figure of $181.5 million. It was the second-best month of all time for any state with legal online casinos.
Atlantic City: Five-year turnaround of Ocean Casino Resort among city’s greatest successes - September 2023
In the winter of 2019, if any New Jersey sportsbook had tried to offer odds on the Atlantic City casino hotel then known as Ocean Resort Casino making it through another summer, no gambler in their right mind would have taken the bet.
Fast forward to the end of summer 2023, and the property now called Ocean Casino Resort is one of the city’s best performers. In fact, an argument can be made that Ocean’s rise to the upper echelon of the Atlantic City casino market is the most remarkable turnaround of any gambling parlor in history.
From its failed origins as Revel Casino Hotel to its seemingly doomed trajectory in February 2019, the $2.4 billion casino at the north end of the AC Boardwalk felt almost cursed (if you believe in that kind of stuff). But, apparently, the gambling gods decided Ocean was deserving of a better fate.
Once shunned by casino operators, responsible gaming campaign turns 25
At a time when problem gambling matters were rarely mentioned in gaming company boardrooms, Harrah’s Entertainment decided the issue needed to be raised on casino floors.
But it wasn’t just rival corporate executives that looked askance at the idea of employees learning how to spot signs that a customer might have a gambling problem.
“Our own lawyers tried to block it,” recalled Jan Jones Blackhurst, who was then a Harrah’s senior vice president. With the support of company CEO Phil Satre, she led Harrah’s launch of the casino industry’s first responsible gaming initiative in the mid-1990s.
“We had employees that wanted to be educated on the subject. They wanted to be able to help,” said Jones Blackhurst, who completed two terms as Las Vegas mayor before joining Harrah’s. “Maybe because I came out of politics. You have a responsibility to your communities, your customers and your employees. We believed it was the right thing to do.”
Sportsbooks ratchet up targeted advertising at start of NFL season
Shortly after the NFL forged authorized gaming partnerships with a host of leading sportsbooks in the 2021 offseason, operators began flooding the airwaves with a series of humorous spots that featured celebrities hawking their products.
Caesars Sportsbook spent lavishly on an ad package starring the Manning Brothers and actor J.B. Smoove as the eponymous emperor. During Super Bowl LVII last February, Kevin Hart expressed his displeasure for “taking the under” in a DraftKings spot while standing mere feet from WWE wrestler The Undertaker. Another commercial from FanDuel featured a live field goal attempt by former New England Patriots tight end Rob Gronkowski, one that drifted wide left of the upright at the last second.
Former lieutenant governor calls for Nevada Gaming Commission cyber briefing after MGM and Caesars hacks - September 2023
In light of cyberattacks on MGM Resorts International and Caesars Entertainment, former Nevada Lt. Gov. Brian Krolicki, now a Nevada Gaming Commission member, called for a briefing on the hacking incident to shed more light on what happened and how it can be prevented in the future.
The suggestion comes the same day the Massachusetts Gaming Commission met in executive session “to consider information related to an MGM cybersecurity issue.” It held a similar closed meeting on Monday.
After it returned to the public session on Thursday, the Commission entered into an executive session regarding security at MGM Springfield, according to the Commission agenda.
Krolicki made his comments at the end of Thursday’s five-hour meeting of the Nevada Gaming Commission. Since it was made during the public comment session, the commission could not take up the matter, but it’s likely the issue will return to the Commission and the Nevada Gaming Control Board at some point.
In the latest cyberattack that started being felt Sept. 10 and went into this week, hackers knocked slot machines out of commission and created havoc with ATMs and computer systems. MGM, which is reported by a Wall Street analyst to have lost between $4.2 million and $8.4 million a day with the hack, said its systems were operating normally across their properties nationwide as of Wednesday. Caesars reported it was hacked in late August and had customer information stolen but paid a $15 million ransom that avoided any shutdowns.
In December, the Commission approved cybersecurity regulations for the state’s gaming industry to protect operators’ information systems from attacks that could shutter casinos and compromise customer data. The rules went into effect Jan. 1. That approval came right after BetMGM reported that its customers’ personal information – including Social Security numbers – was obtained in an unauthorized manner and included information on their transactions.
In the regulations, casinos were required to do a risk assessment of their systems by the end of 2023 and take any necessary steps on an ongoing basis to ward off an attack. If any breach was successful that compromised player data, credit card information and other records, including that of employees, properties would be required to report it to gaming regulators within 72 hours.
“It would be important and enlightening given the recent events of the past week regarding cyber security and ransomware in particular at MGM and our friends at Caesars and look at how it impacts our world and regulatory responsibilities,” Krolicki said, later adding, “I think at some point in time when there’s the energy and understanding of what just happened if we could get some kind of briefing of what transpired that’s appropriate for public record and perhaps policies going forward of how do we avoid these things and if they do happen whether the reporting schemes on whether it was immediately reported to the Gaming Control Board. There are a lot of questions and a lot of publicity. It’s a global story, and I just think it would behoove all of us to get a good handle on what just happened.”
The Nevada Gaming Control Board released a statement on Sept. 13 saying Gov. Joe Lombardo and the board “are monitoring the cybersecurity incident with MGM Resorts and are in communication with company executives. Additionally, the Nevada Gaming Control Board remains in communication with other law enforcement agencies.”
Casino consultant Brendan Bussmann, managing partner of B Global, which tracks gaming boards and commissions, said the Massachusetts hearing won’t be the last and expects states across the country to hold similar sessions wanting to hear from MGM executives.
“Nevada is the second regulator that I know has raised their hand on this after Massachusetts,” Bussmann said. “It should be about what happened and how it happened, which should be considered confidential information. This is going to be a question that every regulator for both commercial gaming and tribal gaming is going to be concerned about. Since we’re still trying to figure out what happened, then we can see what tools we need as an industry to beef up our efforts on cyber-related events.”
While everyone is focused today on MGM and Caesars, this is not the first cyber attack, Bussmann said.
“This can go back to the Las Vegas Sands attacks in 2014 from the Iranians and any other data breaches that happened between then and now,” Bussmann said. “I would expect every state at a minimum has MGM and Caesars in it to at least say what happened and what can we do regulatory to help this and what can we do with testing and what can we do IT and host of things.”
Bussmann said the regulators can’t be reactionary but instead should get evidence on how it happened and use the best resources outside of the casino industry, such as security firms, to do it right.
“There’s no one better suited to regulate Nevada on this issue than the Gaming Control Board in working with law enforcement partners across the country,” Bussmann said.
