Philippines’ Newport World Resorts achieves record GGR in 2023

The rapid development of the iGaming sphere has become possible due to the advancement of the software used by online gaming. To provide users with exciting and high-quality products, the industry requires a deep understanding of cutting-edge technologies, concepts and approaches such as High Load, Big Data, High Availability, High Scalability, Realtime and Low Latency. Therefore, iGaming software developers are driving the global development of the industry and this is precisely what PIN-UP.TECH are doing.

The PIN-UP.TECH segment is part of the PIN-UP Global ecosystem and consists of IT companies specialising in software development for all their members. Among the achievements of PIN-UP.TECH are unique technological solutions which enable partners to maintain their leading position and provide players with a high quality service. Over 500 specialists from different countries are involved in the technical direction of PIN-UP, who ensure the stability of iGaming platforms, CRM, anti-fraud tools, affiliate systems and much more. Among the leaders of this professional team is Volodymyr Todurov, Chief Analytics Officer, who shared with SiGMA News comments about their unique work experience. 

Could you tell us more about the ML/AI model and how it works for you?

AI-based decision models meticulously scrutinise numerous parameters associated with each transaction, encompassing variables such as the frequency of bets, their sizes, the selected events, as well as their history. These parameters undergo analysis within the model, where those exhibiting the highest predictive efficacy are identified and incorporated into the forecasting process. 

IWe have employed machine learning with a primary focus on the extreme gradient boosting model, renowned for its efficacy with structured data. The crux of this approach lies in constructing an ensemble of models that iteratively refine each other, thereby bolstering the accuracy of the forecasts. The model is fed with an extensive betting history as input and yields a probability in the range of 0..1, indicating the likelihood of user involvement in fraudulent activities.

What are the advantages of an AI-based anti-fraud model compared to a classic one?

When we are confronted with vast quantities of data, the utility of ML/AI models becomes evident. They offer a heightened capacity to generalise information and discern patterns in customer behavior that elude methods like manual transaction analysis or the application of linear rules.

AI serves as an additional toolkit for the operations team, streamlining processes by reducing error rates and decision-making times for individual cases, while also uncovering fresh insights into our clientele. In certain respects, AI enriches our expertise and broadens our perspectives by employing a slightly divergent approach to decision-making. Many tasks can now be delegated to AI with autonomy. 

Consequently, AI facilitates the expansion of business volumes without a proportional increase in the risk-management team, streamlining daily operations by eliminating tedious routines and affording the opportunity to delve deeper into the analysis of other processes.

In your opinion, how can AI-based anti-fraud tools develop and what problems can they solve in the future?

Within the team, we outlined how we see the development of anti-fraud tools using ML and AI, and made our plans for the further implementation of these technologies. Our next step involves crafting a decision-making system using cutting-edge deep neural networks and generative artificial intelligence. By slashing decision times, we're getting closer to our goal of ramping up accuracy and speed in spotting fraudulent client behaviour.

This approach, with its knack for learning and adapting, dives deep into each client's history, employing various scenarios to pinpoint specific groups, including fraudsters. These new tools, once honed to a tee, are a real find for the anti-fraud team's daily grind.

For big businesses, they're like a trusty sidekick for retrospective checks, ensuring we've correctly labeled all clients as either "good" or "bad," so managers may not worry, knowing they haven't missed any troublemakers. And for small businesses, they're a game-changer, eliminating the need for a hefty analyst team right off the bat. Let AI take the wheel on manual tasks, and watch the anti-fraud department's efficiency skyrocket.

What are some ways to further improve the efficiency of anti-fouling processes? Tell us briefly about your approaches.  

Each team, taking into account the direction of the business and the number of specialists, has its own secrets of increasing efficiency and intelligently solving complex problems. For us, this is definitely procedures automatisation based on a DDDM approach, which allows us to think out of the box. We evaluate all workflows seeking optimisation points. Our goal is to find the manual procedure, so called “monkey job”, to automate it. 

The problem could be solved in different ways: I will give a couple of examples from our operations within the last few years. Previously, anti-fraud analysts needed to export a few csv-tables to merge them in order to understand if there are certain behavioural changes on player accounts based on financial and gambling history. We realised that we will save at least 10-15 minutes of manual operations per each case just creating a new default real-time dashboard with pivot tables and charts needed. 

Another case is reviewing current operations. Let’s take a look at the withdrawal confirmation process. Based on a DDDM approach we analyse the weight of evidence on each reason leading to manual withdrawal confirmation. Some of the reasons were created as a reaction to certain fraud cases to keep an eye on potential returning fraud. However, business expanded and more new players from new GEOs led to decrease the performance of the rule. So, we adopted the rule and made a 15% uplift in the team’s productivity in terms of their workload. The main point here is to run continuous analysis on workflow operations based on load and productivity measurements to find the optimisations combining management and automatisation. 

What processes does a business need to set up to integrate the DDDM model, how long can it take, and how fast does it generate revenue?

The main point regarding DDDM is the mindset. Senior managers must deny all arguments based on feelings, hopes and “expertise”. I mean, this kind of approach should be used only for some exceptions when you have no data to calculate your decision. Or when the problem is not worth calculating efforts. Every time you want to make changes on your product ask the team about numbers.

The very common mistake is so-called survivorship bias. Pay attention that you make conclusions using end-to-end analysis to relevant scope of entities. Based on practice, managers forget to make helicopter views on the issue pretty often. I will make an example within anti-fraud operations. A manager came with retrospective fraud activity analysis based on welcome bonus abuse within the last 4 months. 83% of users had the same patterns to create an alerting scoring trigger: first deposit over $13, using prepaid bank card, IP analysis mismatch (probably proxies or VPN). Looks pretty good, yes? 

However, I asked to make calculations if there is still a good efficiency if we will extrapolate this trigger to whole new users. Scoring models showed 5% efficiency. So, some combination of attributes could perfectly describe a group of fraud users and still be common for a bigger segment of good users. By the way, we added some gamestyle patterns to those welcome bonus hunters triggers to segregate from good players and keep the trigger in production.

Using DDDM will bring value from Day 1. You will avoid mistakes and increase productivity. The main point is to ask the team to show their number as the main argument on the business decision made.

Volodymyr’s short bio:

Volodymyr Todurov has eight years of experience in gambling, having held the positions of risk manager, and head of antifraud & analytics. He currently holds the position of chief analytics officer at PIN-UP Global. He is an expert in risk management operations of sportsbook, casino, affiliate programmes, marketing, payment systems. Volodymyr specialises in data-driven decision-making approach, economic modeling, and forecasting.

We're continuing our conversations with the experts at PIN-UP Global, so stay tuned to SiGMA News for more on the current engines of the iGaming sphere.

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

Italian gaming and has reported a 4 percent year-on-year revenue rise to €440.1 million in Q1 2024. This revenue was generated on the back of €1.01 billion in total Gross Gaming Revenue (GGR) during the quarter, marking a modest 1 percent increase compared to the same period in 2023. The company now holds a 21.6 percent share of the Italian online gambling market.

However, the company’s adjusted EBITDA for the quarter stood at €149.5 million, reflecting a 4 percent decrease from Q1 2023. This drop came about as the operator’s adjusted EBITDA margin fell to 34 percent, down from 36.9 percent in the same period of 2023. that Q1 2024 revenue grew 11 percent compared to Q1 2023 at a normalised payout rate, driven by the overall increase in productivity of the network.

The normalised payout calculates Lottomatica’s Q1 earnings on the premise of a sports betting payout rate of 79.7 percent in retail locations and 86.4 percent from betting online. This method of calculation provides a more accurate representation of the company’s earnings, taking into account the variability in payout rates.

The online segment of Lottomatica’s business surpassed expectations, with revenue increasing 21 percent year-on-year to €150.4 million in Q1 2024. However, the sports franchise segment reported a 15 percent year-on-year decrease to €94.4 million due to “unfavourable payouts” in the first quarter. Despite this, Lottomatica’s gaming franchise generated a 4 percent year-on-year revenue increase to €195.3 million.

In terms of volume, the online sector also surpassed expectations, experiencing annual growth of 36 percent as total bets reached €5.06 billion. This is a significant achievement, considering that Lottomatica recorded €8.73 billion in total betting volume for the quarter, marking a 20 percent increase compared to the previous year.

Lottomatica Group CEO Guglielmo Angelozzi stated, “In the first quarter of 2024 we have continued our path of organic growth, also supported by solid market tailwinds, with revenues and EBITDA achieving double digit growth year-on-year (at normalised payout)”. This statement reflects the company’s successful growth strategy and its ability to leverage market trends to its advantage.

The company completed the acquisition of SKS365 in April 2024. This acquisition is expected to contribute significantly to the company’s performance in the coming months. The company now predicts revenue for full-year 2024 to come in between €2.02 billion and €2.07 billion, with adjusted EBITDA of between €680 million and €700 million. This forecast includes eight months of contribution from SKS365, with estimated full-year adjusted EBITDA for the business of approximately €80 million.

Lottomatica’s Q1 2024 performance presents a mixed picture. While the company has managed to achieve revenue growth and expand its market share, the dip in EBITDA and the decrease in the sports franchise segment’s revenue are areas of concern. However, the successful acquisition of SKS365 and the strong performance of the online segment provide a positive outlook for the future.

has recently welcomed Kim Harris Jones (pictured above), to its board of directors. This appointment marks a significant milestone in the company’s leadership, as Harris Jones brings a wealth of experience from various sectors outside the gambling industry.

Harris Jones’s professional journey is marked by her tenure at several prominent US corporations. She spent 16 years at Kraft, where she ascended to the position of SVP and corporate controller of its Mondelez International subsidiary following a spin-off. Prior to Kraft, Harris Jones held numerous leadership roles at Chrysler for 17 years, culminating in her role as SVP and corporate controller. Her career also includes a six-year stint at General Motors.

Caesars CEO Tom Reeg expressed his pleasure at welcoming Harris Jones to the board, praising her vision for strategic, collaborative innovation. He highlighted her exceptional experience in navigating complex issues and implementing transformation for optimization. Reeg looks forward to working with Harris Jones, the board, and the management team to continue driving results for their guests, team members, and shareholders.

As the 10th member of Caesars’ board, Harris Jones will provide oversight to the company and play a crucial role in setting its strategic direction. She is a University of Michigan graduate and serves on several other boards, including United Rentals, True Blue, and Fossil Group. Additionally, she is a member of the Ethiopian North American Health Professionals Association and the finance committee of the Consortium for Graduate Study in Management.

Caesars executive chairman Gary Carano hailed Harris Jones as a tremendous addition to the Caesars Entertainment leadership team. He emphasized her extensive experience in finance and her reputation as a thoughtful and engaged leader within some of the largest consumer-packaged goods and automotive companies. Carano believes that Harris Jones’s addition will provide a new perspective for envisioning a stronger, more dynamic future for Caesars Entertainment.

This board appointment comes at a critical juncture for which has been experiencing declining sports betting revenue due to poor hold performance. The company also faces challenges in its flagship Las Vegas business, which analysts at JMP Securities predict will see a 5% decline in EBITDA year-on-year in its Q1 report. Another long-term challenge is the company’s ongoing effort to deleverage the business, which reported $12.3bn in debt as of 31 December 2023.

As of now, Caesars Entertainment, Inc. (CZR) is trading at $35.82, down 4.66 percent. Despite these challenges, the addition of Kim Harris Jones to the board signals a promising new era of leadership for the company.

In the midst of Ukraine's ongoing conflict, a silent battle is being waged within the ranks of the armed forces. Junior Sergeant Pavlo Petrychenko of the Ukrainian army raised an alarm about a perilous vice that has taken hold among the soldiers: online gambling. This addiction has led to numerous soldiers squandering their salaries, plunging them and their families into financial distress.

The situation has escalated to such an extent that some soldiers have resorted to selling off military equipment, including drones and thermal imaging cameras, to fund their gambling habits. This not only compromises their personal safety but also jeopardizes the security of their fellow soldiers.

The relentless stress of war and the physical distance from their families and loved ones have left the soldiers emotionally drained. In their search for a coping mechanism, many have turned to online gambling. It provides a temporary escape from their harsh reality and a fleeting rush of dopamine, a neurotransmitter associated with feelings of pleasure and reward.

Petrychenko, recognizing the severity of the issue, petitioned President Zelensky to ban gambling among soldiers. His plea resonated with many, garnering 26,000 supporters in just a few days. This overwhelming response necessitated a formal reply from the president.

On April 20, Zelensky responded by signing a decree that prohibited military personnel from engaging in online gambling during wartime. The decree also imposed restrictions on advertising, initiated a nationwide campaign to educate the public about the dangers of gambling addiction, and mandated the blocking of all illegal gambling sites.

The health ministry was tasked with developing a strategy to treat severe gambling addiction. However, just five days before the decree was signed, Petrychenko, the soldier who had sounded the alarm, was tragically killed in action in the eastern Donetsk region.

His petition sparked a nationwide discussion about the psychological toll of war on Ukraine’s already stretched forces. Lawmaker Oleksiy Goncharenko claimed that nine out of ten frontline soldiers were grappling with he said was “destroying morale in the military.”

Ukraine’s Deputy Minister of Veterans’ Affairs, Oksana Syvak, echoed these concerns. She revealed that there were numerous complaints from parents and spouses about soldiers losing their hard-earned money to gambling. While there are no official statistics to quantify the problem, personal accounts suggest that the sums involved are substantial.

Ivan Zadontsev, a press officer for the Aidar battalion, shared a story about a soldier in his unit who won 2.5 million hryvnias ($63,000) through gambling, only to lose it all in the hope of winning even more. Another soldier won a staggering 60 million hryvnia ($1.5 million) jackpot and subsequently deserted.

Zadontsev suggested that the relatively high salaries of soldiers, which are six times the national average, might be a contributing factor to the gambling problem. Syvak, on the other hand, attributed it to the psychological impact of the ongoing conflict.

“During such hostilities, very often people use alcohol, drugs, smoke weed or… abuse gambling,” he said. “This is a consequence of war… gambling is a break from reality, a secondary reaction to a severe trauma.”

The rise in online gambling has also raised security concerns. Anton Kuchukhidze, chairman of the Ukrainian Gambling Council, estimated that there are 1,200 illegal gambling sites, 300 to 400 of which are Russian companies. However, he argued that there was no research to support the claims of widespread gambling addiction among Ukrainian soldiers.

As the war continues to ravage the Ukrainian economy, But with it comes a hidden crisis that is silently tearing at the fabric of the Ukrainian armed forces, a crisis that demands immediate attention and action.