China police arrest 93 people in a cross-border online gambling operation

The search for a new CEO can be daunting and unpredictable. This is the situation currently faced by Entain as it seeks to fill its vacant CEO position. As the helm of Entain remains unclaimed, one cannot help but wonder why there isn’t a long queue of ambitious leaders ready to steer the ship. The role has been vacant for months, a period long enough to raise eyebrows in the corporate world. It would naturally be assumed that such a position would be seen as a golden opportunity for those with the right corporate profile, those who thrive in boardrooms, basking in the thrill of leadership.

Yet, the role of CEO at Entain seems to lack the allure typically associated with such high-stakes positions.

The question then arises: Why does the role not seem attractive to suitable contenders? Why is there no line of experienced leaders ready to pick up the pieces, to salvage a sinking ship before it is dismantled and sold off in pieces?

The company, which owns Ladbrokes, has been rebuffed by the former bosses of bookies Coral and Sky Bet in its hunt for a new chief executive.

Entain has already approached Andy Hornby, (pictured above), who now runs Wagamama’s parent company, and Richard Flint, who holds a portfolio of roles, about the job. However, both Hornby and Flint have declined the offer. This comes as no surprise given investors’ demands for a leader with extensive gambling sector expertise.

The longer the CEO position at Entain remains vacant, the more challenging it will become to find a suitable candidate. A potential stigma may already be attached to the role, creating a deterrent for prospective applicants. After all, who would willingly step into a situation where they are expected to clean up and reorganize the aftermath of Jette Nygaard-Andersen’s acquisition frenzy? This daunting task is discouraging potential leaders from taking up the role, explained a corporate finance specialist to The search for a new leader therefore becomes not just about finding the right person, but also about overcoming the perceived obstacles associated with the role, he explained preferring to remain anonymous.

Dan Taylor, chief executive of Flutter Entertainment’s international operations, was also among the potential candidates for the role. However, Entain, which has been under mounting pressure from activist investors because of its poor performance, declined to comment on Friday.

Last month, Entain announced that and be replaced by . The company also ousted Jette Nygaard-Andersen, its former chief executive, late last year.

Entain, which has seen its shares nearly halved in the last 12 months, and other non-core operations. As well as Ladbrokes, Entain owns Coral and a stake in BetMGM, a major US betting player.

Entain has also endured a torrid period as activist hedge fund investors have built an increasingly prominent position on its share register. The company has faced a deluge of regulatory problems, triggering sharp criticism of its governance and business practices.

Shares in Entain has been trading at around 797.4p giving the company a market capitalisation of £5 billion. The future of Entain remains uncertain, but one thing is clear: the company’s next leader will have a challenging task ahead.

In South Korea a stern battle is being waged against the rising tide of gambling. The country’s strict regulations cast a wide net, capturing all forms of gambling activities within their grasp.

Imagine a lone casino, Kangwon Land Casino, nestled on the outskirts of Seoul. This is the only place where South Koreans can legally gamble, a privilege protected under the Special Act on the Assistance to Development of Abandoned Mines.

Yet, the allure of online gambling beckons, with overseas sportsbooks offering a forbidden fruit. But the authorities are vigilant, their watchful eyes ever on the lookout for violations. Recent cases involving online sports gambling rings have led to arrests, a stark reminder of the consequences.

The reach of Korean law is extensive, covering all forms of gambling by South Koreans, both domestically and overseas. However, there’s a twist. Tourists and expats can legally gamble at all casinos in the country, and Korean Law does not apply to non-Koreans while they are abroad, except in the most exceptional of crimes.

The definition of “gambling” might seem elusive, but the Korean Supreme Court has provided clarity. or loss through the wager of property on a game or activity based on chance.

At the helm of this regulatory landscape is the National Gambling Control Commission (NGCC), the watchdog that oversees the gambling industry in South Korea.

Despite these stringent measures aimed at controlling the prevalence of gambling and mitigating its potential negative impacts such as addiction and associated crimes, a concern lingers. Illegal gambling activities, particularly among the youth, persist, casting a shadow over these efforts.

As reported by South Korea is witnessing a concerning pattern as the age of underage gamblers is decreasing, while their numbers are on the rise. The South Korea National Police Agency (KNPA) has recently reported a significant increase in the number of Korean juveniles involved in illicit gambling activities. This alarming trend has prompted law enforcement to devise comprehensive preventive measures.

In the past five years, the average age of teenagers caught gambling has consistently decreased, reaching a low of 16.1 years old in 2023. In the same year, a total of 171 teenagers, aged between 14 and 19, were apprehended under suspicion of participating in illegal gambling. This marked a 2.3-fold increase from the previous year’s figure of 74. Boys constituted a staggering 92.4 percent of these individuals.

The KNPA also revealed that a significant 84.8 percent of the suspects were engaged in online gambling activities, such as baccarat and sports betting. Each game typically lasted only about 10 seconds. Furthermore, 56.7 percent of these individuals accessed gambling platforms at internet cafes, predominantly utilizing computers and smartphones.

Law enforcement authorities anticipate a continued rise in juvenile gambling through smartphones, owing to their easy accessibility and the perception among youth that mobile gambling is merely a casual pastime. However, the police have cautioned that underage participation in illegal gambling could lead to various associated crimes, including instances of school violence and fraudulent activities aimed at securing funds for gambling purposes.

National Police Agency Commissioner Yoon Hee-keun has emphasized the serious threat posed by illegal smartphone gambling to the youth. He pledged to combat youth gambling addiction through intensified guidance and efforts to prevent relapses.

In response to this trend, law enforcement agencies plan to launch awareness programs targeting middle and high school students and their parents. These programs aim to educate them about the hazards of gambling. Additionally, collaborative rehabilitation programs with local counselling centres for teenagers will be established. These programs will provide counselling, medical assistance, and legal support to offenders, offering a holistic approach to tackling this growing issue.

The closing date for securing funding of up to PHP13.51 billion (€219.2 million) for the casino hotel project at  in Manila, Philippines has been pushed back by 12 months. Suntrust Resort Holdings, the developer behind the project, confirmed the revised date, now set for April 30, 2025, in a filing submitted on Friday.   

The Westside City Project, an integrated resort located in Manila's Entertainment City, is spearheaded by Suntrust Resort Holdings. The project aims to debut its main hotel-casino in the first quarter of 2025, aligning with the extended funding deadline.  

In July 2023, Summit Ascent Investments, a subsidiary of Summit Ascent Holdings Ltd., pledged to subscribe to convertible bonds totalling up to PHP13.51 billion (€219.2 million) issued by Suntrust. However, as of last week, certain conditions necessary to finalize the agreement remained outstanding. This includes obtaining consent and approvals from regulatory bodies such as the Securities and Exchange Commission (SEC) in the Philippines.  

Summit Ascent highlighted Suntrust's financial challenges, citing failures to pay interest on previous convertible bonds. To address these issues and secure the necessary funding, Suntrust's board  a $38 million (€36.6 million) loan from LET Group Holdings, the parent company of both Summit Ascent and Suntrust.  

As per the loan agreement, LET Group has agreed to provide a $38 million (€36.6 million) loan to Suntrust, which Suntrust must repay over 10 years starting from the execution date. However, both parties have the option to extend or shorten the repayment period by mutual agreement, or in case of default. Suntrust believes that this loan will have a positive impact on its business, operations, and financial condition, as it is expected to improve the company’s prospects.  

The delay in securing funding and addressing financial concerns may potentially impact the completion and opening of the main hotel-casino. Summit Ascent emphasised the importance of securing necessary capital expenditures to prevent significant delays in the project's development. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

Macau's anticipated surge in visitor numbers during the extended Labour Day break fell short of expectations, with just over 604,000 visitors recorded, as reported across multiple media outlets. This figure represented a daily average of around 121,000, notably below the 130,000 forecasted by tourism officials. 

Last month, the Macao Government Tourism Office (MGTO), a surge in inbound tourism to Macau for the Labour Day holiday.  

Unfavourable weather conditions, including rain and gusty winds throughout the Labour Day break, likely contributed to the lower-than-expected visitor numbers. Particularly severe weather conditions were experienced on Saturday, marked by the issuance of the year's first black rainstorm warning. 

Despite the subdued arrival numbers, the total entries and exits recorded at all of Macau's border checkpoints saw a notable 11.6 percent year-on-year increase, totaling 2.43 million. This uptick suggests continued mobility despite challenges in visitor arrivals. 

The total visitor numbers recorded between May 1 and May 5 accounted for nearly 85 percent of the comparable figures from 2019, marking a significant recovery towards pre-pandemic levels. This trend underscores Macau's resilience in rebounding from the impact of Covid-19 on travel and tourism. 

While Labour Day itself is a single-day holiday in Macau, it extends to a three-day break on the Chinese mainland, which constitutes Macau's primary source of visitors. When combined with the weekend, this creates a five-day vacation period for mainland Chinese travellers, traditionally contributing to increased tourism activity in Macau. 

Despite challenges posed by adverse weather conditions, Macau's ability to attract many visitors during the Labour Day break reflects continued interest in the destination and ongoing efforts towards tourism recovery. 

Meanwhile, starting Monday, a  tailored for Chinese nationals participating in package tours will launch, facilitating travel between Macau and the nearby Hengqin. The initiative, unveiled by China’s National Immigration Administration, enables package tour participants to enjoy unrestricted movement between the two regions for up to seven days. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .