Canada
New Approaches to Mitigating High-Risk Play: Responsible Marketing
Guardrails are often put in place to keep people within safe boundaries and to prevent harm. Can the notion of player-health ‘guardrails’ help evolve how gambling products are marketed to mitigate high-risk play and improve player-health outcomes?
Three panellists recently joined Dr. Jamie Wiebe, BCLC’s Director of Player Health, to examine this question during BCLC’s New Horizons in Responsible Gambling pre-conference session, Responsible Marketing: Establishing “Guardrails” for Safer Play.
Panellist Floris van Driel, Nederlandse Loterij Responsible Gaming Specialist for Sports Betting and Casino, shared Nederlandse Loterij’s approach to integrating responsible marketing into online gambling, which became legal in the Netherlands on October 1, 2021.
The Nederlandse Loterij team scores and advertises each game by risk level. Games rated with a very high-risk score are not promoted at all in television or social media advertising and similarly, high-risk players are excluded from receiving any marketing materials. Additionally, van Driel’s team looks at player behaviour and classifies players into different risk categories to better understand how to market games to each segmented group.
“We are looking at high-risk players, and the types of games they prefer, to understand if we should be more restrained when promoting these types of games,” van Driel explained during the New Horizons session. “It’s really about using specific customer data to customize the campaigns to mitigate risk along with utilizing marketing tools to stimulate people to moderate their gameplay.”
Part of Nederlandse Loterij’s new marketing strategy entails reframing the tone of their player health advertising, reflecting a more fun, light-hearted approach. Its recent TOTO campaign promoting responsible participation in online sports betting was recognized as the Safer Gambling Campaign of the Year at the 2021 Global Regulatory Awards.
“We are finding that keeping it lighter and more fun ties in better with the tone of the other communication that we give to the player. The intention is to make it easier for players to accept the message and to get player health behaviour normalized.” The campaign resulted in a very positive behavioural change: 82 per cent of players thought that the tips were very useful, and 44 per cent considered changing their behaviour.
Ryan Persaud, Director of Insights and Player Experience at BCLC outlined the organization’s integration of marketing guardrails operationally. In 2021, BCLC completed a study whereby it included Problem Gambling Severity Index (PGSI) scores with online customers, connecting survey results with actual behaviour.
“It allowed us to understand: How do [players’] personal stated risks relate to their behaviour? We used that information to help us craft what we are calling…high-risk indicators,” said Persaud.
BCLC is building on these findings to develop high-risk indicators centred around variables such as deviation, deposits, wagering, time and player-health risk alerts.
“At BCLC we are focusing on the player side of assessing risk and using high-risk indicators to dig into the behavioural components as opposed to just the product risks,” Persaud explained. “This player-health data is being used to better inform the conversations we’re having around marketing.”
Finally, Richard Wood, President, GamRes Limited, outlined during the discussion that in order to responsibly market a product, it’s important to identify and understand the impacts and unintended potential risks for each player. Wood and the GamRes team created Gamgard, a game risk-assessment product used to help prevent high-risk play, while also supporting operators in their end game: to deliver a fun, interesting product.
“With Gamgard, jurisdictions are able to identify high-risk elements and then choose to either not advertise the game at all to high-risk players or to use the data to integrate player health guardrails into their marketing approaches,” Wood explained.
Wiebe concluded the session by asking each panellist to look forward 10 years and share their perspective on gambling marketing:
“Focusing on integrating more fun and entertaining player-health messaging into the marketing experience will help to mitigate risk,” Wood said. “We’ve found that the most responsible players are the most satisfied players… so player health and marketing aren’t polar opposites; at the end of the day, they have a similar goal of ensuring that players have a good healthy experience.”
Hosted by BCLC, the full New Horizons in Responsible Gambling Conference is celebrating 10 years of industry leadership and bringing together hundreds of industry-leading researchers, policymakers and representatives from around the world to tackle some of the most challenging topics related to gambling and player health. The conference will occur virtually in early March 2022.
Hot on the heels of its most attended conference in history, the International Association of Gaming Regulators (IAGR) is excited to announce that its 2025 conference will take place in Toronto, Canada, from October 20 to 23, 2025.
The event will be held in partnership with the Alcohol and Gaming Commission of Ontario (AGCO) at the Westin Harbour Castle, offering stunning waterfront views and a premier, downtown Toronto location.
‘Fresh off the success of our Rome conference, we’re thrilled to continue the momentum with next year’s event in Toronto,’ said Ben Haden, IAGR President.
‘The IAGR 2025 conference promises to be another unparalleled opportunity for our global community to come together, collaborate and shape the future of gaming regulation. We’re looking forward to working with AGCO to bring it all together.’
AGCO CEO and Registrar Dr. Karin Schnarr, added, ‘We’re excited to welcome IAGR and its members to Toronto. This partnership provides a great opportunity to share Ontario’s innovative regulatory practices and foster meaningful discussions that drive positive change in the industry.’
Stay tuned for registration details early next year.
ESE Entertainment Inc., a gaming company that provides a range of services to leading video game developers and publishers, has announced that it has acquired Bombee Global Entertainment Ltd. (Bombee Americas), the North American arm of Bombee Event Production AB, (Bombee), a global production company specialized in live production, special effects, broadcast, and event management for the gaming sector.
Bombee has successfully collaborated with ESE to bring its premier event production services and world class customer service to North America and beyond. The North American arm of Bombee, Bombee Americas, will continue to grow and scale in this new organizational structure under ESE, while maintaining its entire team and global support.
Konrad Wasiela, CEO of ESE, said: “Today marks the next stage of ESE—a 2.0 version of our company. With the acquisition of Bombee Americas, we are not only solidifying our presence in North America but also paving the way for growth and innovation in the gaming industry. This is a major step, positioning us to deliver even greater value to our partners and elevate the gaming experience for our clients globally. We’re thrilled about the opportunities ahead and the exceptional talent joining our team.”
Transaction Terms
The Acquisition was completed by way of a share purchase agreement (the SPA) among the Company, Bombee Americas, and the shareholders of Bombee Americas (the Vendors). Pursuant to the SPA, ESE acquired all of the outstanding shares of Bombee Americas in exchange for: (i) $750,000 in cash paid on closing, (ii) $375,000 in cash to be paid six (6) months following closing, subject to customary adjustments based on the working capital of Bombee Americas on closing, (iii) $375,000 in cash to be paid twelve (12) months following closing, and (iv) 30,000,000 common shares of ESE (the Consideration Shares), issued at a deemed issue price of $0.10 per share.
In connection with the Acquisition, the founders of Bombee Americas have signed three-year service agreements and will continue to run the business following the closing, along with the rest of the personnel of Bombee Americas who will remain in place, ensuring a smooth transition of operations. As part of the Acquisition, the Company has acquired the liabilities of Bombee Americas, mainly consisting of customary current obligations incurred in the ordinary course of business for Bombee Americas, which are not expected to have a material impact on the Company’s operations or financial position.
No finder’s fees were paid or payable in conjunction with the Acquisition.
The Acquisition was an arm’s length transaction within the meaning of the policies of the TSX Venture Exchange (the Exchange) and constituted an “Expedited Acquisition” in accordance with Exchange Policy 5.3 – Acquisitions and Dispositions of Non-Cash Assets. The Acquisition remains subject to the final approval of the Exchange.
Canada
Suspected Digital Fraud Coming from Canada Up Nearly 11% Since H1 2023, Reveals New TransUnion Analysis
In the first half (H1) of 2024, Canada saw a significant increase in suspected Digital Fraud attempts, with nearly 5.74% of all attempted digital transactions where the consumer was located in Canada involving suspected Digital Fraud, revealed a new TransUnion® (NYSE: TRU) analysis. This is nearly an 11% year-over-year (YoY) rate increase from H1 2023, and TransUnion also documented an 11% increase in the volume of suspected Digital Fraud from Canada during this period, despite a less than a one percent (0.7%) YoY increase in the volume of transactions.
According to a recent TransUnion survey,1 more than half (54%) of Canadians said they were recently targeted by email, phone call or text message fraud attempts. Phishing was the most common scheme type (45%), followed by smishing (42%) and vishing (39%).
The increasing use of digital transactions, combined with rising suspected Digital Fraud attempts are also impacting businesses as they potentially face revenue losses and increased operational costs due to fraud. According to a TransUnion business survey for the H2 2024 Update to the State of Omnichannel Fraud report, 200 Canadian business leaders said their companies lost approximately 6% of equivalent revenue – representing $78 billion – over the past year due to fraud. The most prominent causes of fraud loss cited by them were:
- Scam/Authorized fraud (31%): Dishonest scheme intended to trick a person into giving up something of value (e.g., account access, money, information)
- Account takeover (19%): Unauthorized individuals taking over someone’s online account (e.g., bank, social media, email) without their permission
- Synthetic identity fraud (18%): Use of a combination of personal information to fabricate a person or entity to commit a dishonest act for financial or personal gain
TransUnion also found that suspected Digital Fraud attempts – where the consumer was transacting in Canada and targeted businesses globally – increased on average by 10.5% YoY in H1 2024 compared to H1 2023 and impacted all industries.
Top Three Industries Globally with Highest Rate of Suspected Digital Fraud Attempts Coming from Canada in H1 2024
- Gambling (online sports betting, poker, etc.) – 9.6%
- Retail – 9.2%
- Government – 7.7%
Top Three Industries Globally with Highest YoY Increase (H1 2024 vs H1 2023) in the Rate of Suspected Digital Fraud Attempts Coming from Canada
- Logistics – 172.9%
- Gambling – 79.3%
- Video gaming – 67.8%
“Protecting customers and their businesses from fraud is essential to enabling safe and tailored consumer experiences. These findings reveal that despite the good-faith efforts that are being undertaken by companies to identify and prevent fraud to date, fraudsters continue to evolve and it’s vital that fraud prevention methods keep up with the changing times,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada.
“Businesses that aren’t already doing so should ensure that they are taking advantage of fraud prevention technologies such as identity verification, IP intelligence, device reputation and synthetic identity detection as critical components of their fraud prevention programs,” he added.
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