In an official statement, the CMA stated it aims to discover if the deal “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

The government agency has issued an ‘invitation to comment’, designed to allow interested parties to “submit to the CMA any initial views on the impact that the transaction could have on competition in the UK.”

Addition of IMG Arena Portfolio Could Result In Monopoly

IMG Arena controls media and data rights for over 70 significant sports properties, including Wimbledon, the PGA Tour, three Grand Slam tennis tournaments, MLS, and UFC.

With Sportradar already holding the data rights to the NBA, MLB, and UEFA soccer competitions, the CMA is concerned that this could result in a monopoly of sports data. 

A monopoly on data could lead Sportradar to drive up prices and squeeze out smaller data providers and startups. 

If the CMA deems the threat to competition too severe, it may require Sportradar to license certain rights separately, or even block the merger completely.

Sportradar and IMG Arena Agree $225 Million Deal

In March this year, Sportradar and Endeavour, the owner of IMG Arena, announced they had reached an agreement for Sportradar to acquire IMG and its global sports betting portfolio. 

The deal is worth $225 million, and under the terms of the agreement, Endeavour pays $125 million to Sportradar, with a further $100 million going toward cash prepayments for various rights holders.

Pending the outcome of the CMA investigation and approval of the transaction, it is set to be completed in the fourth quarter of this year. 

Company Aims To Be ‘Engine of the Sports World’

Sportradar CEO Casrten Koerl commented on the deal, stating: “Our acquisition of IMG ARENA is a strategic move to accelerate revenue growth while integrating seamlessly into our platform, enhancing our relationships with key leagues and sportsbooks.” 

The aim of the company is to become “the engine of the sports world” and Koerl noted that  “Sportradar’s success is driven by the breadth of its sports coverage, a broad product portfolio, the leading technology, and a global distribution network.”

He is confident that the acquisition of IMG Arena will be a success, commenting, “Given our proven track record of maximizing ROI through our global betting rights deals and our strengthened position across tennis, basketball and soccer, we are confident in our ability to realize the full economic potential of this portfolio.”

US Market Driving Increases In Revenue

Sportradar reported substantial growth in revenue in Q1 this year, up 17% year-on-year to €311 million ($363 million). 

Revenue in the US jumped 31%, primarily due to leading sportsbooks FanDuel and DraftKings using more of the data provider’s services.

The company invested heavily in new technology, staff, and the expansion of services last year, leading to a €1 million ($1.1 million) loss in the first quarter of 2024. 

This was reversed in Q1 this year and turned into a €24 million ($28 million) profit.

Sportradar is expected to release Q2 2025 results on or before August 12. The invitation to comment on the merger at the CMA is open until July 25. 

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The competition regulator officially announced the launch of its merger inquiry by notice to those concerned in September, before inviting comments on the purchase by any interested party.

Those comments needed to be provided before the invitation closed on October 5, following which the CMA would proceed to the analysis stage of phase one before reaching a decision on whether to enter phase two or close the inquiry by today.

Documenting the process thus far, Evolution offered the following update: “The CMA has today, on November 16, 2020, announced its approval of Evolution’s acquisition of NetEnt. 

“Consequently, the condition regarding the receipt of all necessary competition approvals has been fulfilled. The other conditions for completion of the offer, which are included in the offer document that was published on August 20, 2020, remain unchanged and are still applicable. 

“The acceptance period for the offer expires on November 20, 2020. Assuming that the offer is declared unconditional no later than around November 23, 2020, settlement is expected to commence around December 1, 2020. Evolution reserves the right to extend the acceptance period for the Offer and to postpone the settlement date.”

The proposed transaction, an offer the NetEnt board recommended to shareholders, sees Evolution offer 0.1306 shares for each share in NetEnt, valuing each at SEK 79.93 and all shares in the firm to approximately SEK 19.6bn.

The offered consideration per share represents a premium of 43 per cent compared to the closing price of the NetEnt share of series B on Nasdaq Stockholm on June 23, 2020.

The company previously documented that the Malta Competition and Consumer Affairs Authority had rubber stamped its approval on September 29, 2020.

Evolution had initially expressed an expectation of closing the transaction on November 2, with an acceptance period commencing on August 17, 2020 and expiring on or around October 26, 2020.

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The UK’s competition regulator officially announced the launch of its merger inquiry by notice to those concerned yesterday, before inviting comments on the purchase by any interested party.

These comments need to be provided before the invitation closes on October 5, following which the CMA will proceed to its analysis stage of phase one before reaching a decision on whether to enter phase two or close the inquiry on November 16.

Detailing the commencement of the inquiry, the CMA stated: “The Competition and Markets Authority is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.”

Evolution Gaming had previously expressed an expectation of closing the transaction on November 2, with an acceptance period commencing on August 17, 2020 and expiring on or around October 26, 2020.

The proposed transaction, an offer the NetEnt board recommended to shareholders, sees Evolution offer 0.1306 shares for each share in NetEnt, valuing each at SEK 79.93 and all shares in the firm to approximately SEK 19.6bn.

The offered consideration per share represents a premium of 43 per cent compared to the closing price of the NetEnt share of series B on Nasdaq Stockholm on June 23, 2020.

The combination is expected to result in annual cost savings of approximately €30m, compared to the combined cost basis of both parties as of the first quarter the year. This includes the cost savings of approximately SEK 150m which NetEnt already has disclosed. These were initially expected to be fully realised during 2021.

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Relating to Gala Interactive’s galaspins.com site, one complainant raised an objection with an advert that portrayed a man playing on his tablet, before making a gesture with his arm and going on to spin plates on his fingers.

A challenge was raised as to whether “the ad implied that gambling involved skill rather than chance, and therefore was socially irresponsible”.

Responding it was stressed that use of the phrase “… see if you’ve got the talent,” and the word ‘talent’ in particular, was a direct reference to the new Britain’s Got Talent Slingo game being advertised.

Furthermore, Gala Interactive stated that “ in the context of the ad “talent” meant having fun and enjoying oneself, such as the enjoyment depicted by the characters watching the plate-spinner. Clearcast said that like all Gala ads, it was meant to be light-hearted and not to be considered seriously. They said the plate spinning was also used as a reference to the advertising slogan “Spincredible” and the type of game (slots) that was advertised.”

Considering the explanation laid before it, the ASA judged that in the context of the ad the claim implied that a degree of skill could be exercised to improve winning opportunities.

Upholding the complaint, the ad must not appear in its current form, with the ASA reminding the firm “to ensure their advertising did not suggest that there was a degree of skill in the game”.

Betfair Casino came under fire due to a pair of adverts, with it raised that “the ad breached the code by prominently featuring someone who seemed to be under 25 years old”.

Proving evidence that the actor in question is in-fact 27 years of age, Betfair also emphasised “he was not dressed in clothes which were associated with youth culture, nor did he behave in an adolescent, juvenile or loutish way in the ad”.

Considering the styling of the individual in question, the ASA noted “While we acknowledged that the ad featured a young man, we considered that he did not appear to be under the age of 25.”

Finally, the SkillOnNet powered online casino PlayOJO found itself under question, with one complainant challenge whether the content of an advert “was irresponsible, because it implied that gambling could provide an escape from personal problems such as loneliness or depression”.

In response the firm stated the language featured “referenced how other online casinos paid out acquisition bonuses,” also referencing a joint Competition and Markets Authority (CMA) and Gambling Commission investigation into such matters.

Also stressing the Alpaca was not lonely, depressed or had any personal, professional or educational problems, reference of the phrase “finding your Ojo” only communicated the fact that the alpaca had discovered the brand.

Considering the evidence before it, the ASA concluded that the ad was not in breach.

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This comes after the non-ministerial government department announced it was investigating the proposed transaction in July, citing that it was to judge whether creating the enlarged organisation would result in a significant lessening of competition within the UK market.

Inspired announced that a definitive agreement was in place on June 11, with the CMA’s approval representing a critical requirement to complete the transaction.

Following this announcement, the company expects to complete the NTG acquisition around October 1, 2019, subject to the satisfaction of the remaining customary closing conditions.

“We are pleased to have received approval from the CMA and are grateful for their diligence and efficiency in reviewing the transaction,” commented Lorne Weil, executive chairman of Inspired.  

“The anticipated successful completion of this acquisition is expected to be an exciting step forward in the evolution of Inspired into a global gaming company with a comprehensive portfolio of products and services, and world-class functional expertise in the gaming industry.”

The purchase of the Novomatic Group division, which supplies category B3, C and D gaming terminals to pubs, arcades, motorway service areas and holiday resorts in the UK, sees Inspired be set to manage in excess of 75,000 gaming machines across the region and Europe.

NTG comprises Gamestec Leisure, Playnation, Astra Games, Bell-Fruit Group, Harlequin Gaming and Innov8 Gaming, with Inspired stressing that it expects to achieve between $12.3m to $13.3m of synergies through shared costs and increased scale.

Outlining plans to “draw on the core strengths of Inspired and NTG,” as a result of the transaction the former is striving to broaden offerings, bring differentiated gaming products to new sectors and geographies, accelerate key growth initiatives and offer enhanced capabilities, systems, field service and content.

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The non-ministerial government department is to look over the purchase until September 20, when it will be decided whether a phase two investigation is warranted, with interested parties invited to issue a comment on the deal until Thursday August 8.

Assessing whether the transaction, if carried into effect, would “result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002,” the CMA is to judge whether creating the enlarged organisation would result in a significant lessening of competition within the UK market.

Issuing a commencement notice, the CMA notes that: “The Competition and Markets Authority hereby gives notice pursuant to section 96(2A) of the Act that the merger notice provided by Inspired Entertainment Inc and Novomatic UK in relation to the anticipated acquisition by Inspired Entertainment Inc of certain business of Novomatic Limited, including Astra Games Ltd (excluding its casino business), Bell Fruit Group Ltd, Gamestec Leisure Limited, Harlequin Gaming Limited, Playnation Limited and Innov8 Gaming Limited, meets the requirements of section 96(2) of the act. 

“The initial period defined in section 34ZA(3) of the Act in relation to the Merger will therefore commence on the first working day after the date of this notice, ie on 26 July 2019. The deadline for the CMA to announce its decision whether to refer the merger for a phase two investigation is therefore 20 September 2019.” 

Lorne Weil, executive chairman of Inspired Entertainment, said at the time of the deal initially being agreed: “The potential acquisition of NTG is transformational for Inspired, enabling us to dramatically increase the size, scale and scope of our business by combining our highly complementary, but largely non-overlapping, businesses.

“We expect to leverage our superior game content, technology, operational capabilities and respective footprints to augment the existing growth trends for our enterprise.”

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Initially available through mobile, and providing customers with “an innovative and robust mobile-led sportsbook,” BetStars is to complement the group’s existing poker and casino offerings through PokerStarsNJ and PokerStarsCasinoNJ.

As part of the launch, a series of player focused promotions are to be featured by BetStars, aimed at introducing new customers to BetStars, including a sign-up bonus and “odds boosts”, which multiply the odds and the potential payout to customers.

Matt Primeaux, SVP strategy & operations of the USA at The Stars Group, explained: “We are excited to introduce BetStars to New Jersey sports fans. As one of the largest online gaming companies in the world with millions of customers worldwide, we have successfully launched BetStars in regulated markets across Europe, and look forward to expanding and enhancing our New Jersey BetStars offering, including through leveraging the Sky Betting & Gaming acquisition following approval from the UK Competition and Markets Authority, to provide a premier product and experience to our customers in this new and developing market.”

This new launch follows updates of a Pokerstars and BetStars collaboration for The Big Race, a motorsports themed $2 buy-in online poker tournament offering players the chance to win a plethora of prizes.

The Big Race tournament will take place on Sunday 23 September at 14:00 ET, and will randomly assign the top 20-placed players with a driver in the Russian Grand Prix on September 30.

The player with the winning driver will receive an EPT Prague package worth approximately €7,200, including eight nights’ accommodation at the Hilton Prague Hotel, a Main Event seat worth €5,300 and approximately €500 spending money.

In addition to the first prize package and players’ shares of the prize pool, the top 500 finishers in The Big Race will be awarded up to $2,500 worth of free BetStars bets in total, ranging from $2 to $50, awarded as follows:

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Relating to terms and conditions which prevented players from “getting hold of their money in one go,” the CMA acknowledges the cooperation of both organisations throughout the process, which has seen a formal agreement of removal.

Players of both portals could be made to make withdrawals in installments over an extended period of time, which the CMA states “could lead some to gamble again where they might otherwise make a withdrawal”.

George Lusty, senior director for consumer protection at the CMA, explained: “People choosing to gamble online should be able to walk away with their own money whenever they want to.

“Jumpman Gaming and Progress Play are the first to commit to scrap their unfair withdrawal rules, but we expect companies across the sector to follow suit, so no-one gets caught out with unfair terms and conditions when gambling online.”

Both firms have agreed to stop using unfair terms, meaning money could be confiscated if no log-in had been made within a certain timeframe, whilst Progress Play has also agreed to not confiscate money if certain identity check rules are not met in a certain amount of time.

Detailing moves being made by Jumpman Gaming and Progess Play, the CMA stated in its media release “whilst companies need to be able to make appropriate and proportionate identity checks to help prevent money laundering and fraud, they cannot justify confiscating someone’s money simply because they do not provide information within a specific time frame.”

Changes made have also been welcomed by UK regulator the Gambling Commission, which states firms across the sector should apply similar such standards, and failure to do so could result in further action.

Paul Hope, executive director of the Gambling Commission, added: “We support the outcome of the CMA’s investigation, and we’re pleased that both of the operators involved have committed to making changes, that will make it fairer and simpler for customers to withdraw funds from their online gambling accounts.

“Gambling firms should not be placing unreasonable restrictions on when and how consumers can take money out of their accounts.

“We now expect all online operators to review the findings published by the CMA today and ensure they update their own practices.”

The CMA and Gambling Commission have been working to improve terms and conditions for online players, and to help ensure organisations do not break consumer protection law.

Amongst the help guides produced is a ‘60-second summary’ to help all gambling operators review their practices and ensure their terms and conditions are in line with consumer protection law, as well as ‘advice for gamblers’ and a short video guide for consumers.

Gambling Commission figures for 2016/17 valued the online gambling sector at £4.9bn, accounting for 34 per cent of all gambling.

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The CMA report states gambling firms must “stop unfair online promotions that trap players’ money,” with changes now having to be adopted across the sector.

Three operators have already committed to make changes – Ladbrokes, William Hill and PT Entertainment, a Playtech subsidiary, are to change the way in which bonus promotions are offered, to ensure players can always access and release their own money.

Specifically the CMA set out a trio of factors, detailing what the changes mean:

• Players won’t be required to play multiple times before they can withdraw their own money
• Gambling firms must ensure that any restrictions on gameplay are made clear to players, and cannot rely on vague terms to confiscate players’ money
• Gambling firms must not oblige players to take part in publicity

If the whole sector does not “promptly adopt similar changes,” firms will be facing regulatory action from the Gambling Commission.

The CMA has stated that undertakings requires the majority of practices to be amended by 28 February of this year, with a later date of 31 July 2018 set for the implementation of prompts for consumers when they are playing with restricted funds.

George Lusty, Project Director at the CMA, commented: “Gambling always carries a risk, but players should never face unfair restrictions that prevent them from getting at their money. Firms mustn’t stack the odds against players, by putting unfair obstacles in their way, or making it difficult for them to stop gambling when they want to.

“The CMA is here to make sure businesses’ terms and practices are fair for their customers. We welcome the commitment from these leading firms to address the problems our investigation uncovered, by making important changes to their terms and conditions.

“We now expect others to follow, and look forward to the Gambling Commission’s continued work to make sure all operators in this sector play fair with their customers’ money.”

Sarah Gardner, Gambling Commission Executive Director, added: “We back the action taken by the CMA today. Gambling firms must treat their customers fairly and not attach unreasonable terms and conditions to their promotions and offers.

“We expect all Gambling Commission licensed businesses to immediately review the promotions and sign up deals they offer customers and take whatever steps they need to take, to the same timescales agreed by the three operators, to ensure they comply.

“Operators should be very aware that we will continue to work closely with the CMA to ensure customers are getting a fair deal across the gambling industry.”

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