A coordinated operation by law enforcement forces across Italy executed a court order for confiscating assets worth approximately €400 million ($433 million) belonging to an iGaming operator registered in Malta. This action follows Italy’s intensifying efforts to counter organized crime infiltration in the online gaming and betting sectors, curbing corruption and money laundering operations.

The Organization’s Reach Extended Across Europe

An international investigation revealed the offending operator’s ties to a sophisticated criminal system engaged in running black market online gambling operations. The organization’s headquarters was in Italy’s Reggio Calabria region, but it projected its influence abroad through companies with offices in Malta, Romania, Austria, and Spain. Such illegal operators can be very damaging, offering virtually zero customer protection or responsible gambling safeguards.

The operator used a so-called “cascade” system, enabled through contacts with criminal organizations. These elements provided protection and helped popularize the brand online, while local businesses facilitated the illicit collection of proceeds, with a share going to the criminal entities. This arrangement was used to launder significant sums and would have continued expanding.

The group avoided detection by transferring most proceeds from illegal activities abroad, evading Italian tax authorities. The unnamed kingpin at the center of the investigation held a prominent position in the Malta-based company. However, the operator primarily targeted the Italian market via multiple outlets dedicated to betting and games of chance, obscuring its involvement.

Gambling Companies Remain Susceptible to Criminal Influence

Authorities learned of this organization after an investigation into links between businesses and organized crime revealed that the crime boss at the center of the operation held assets that did not align with his declared income. This discrepancy allowed the court to issue a seizure warrant on the suspect’s assets, followed by a second order to seize all assets linked to three connected iGaming companies.

The estimated total value of the seized assets is roughly €400 million. The court also decreed special surveillance of the suspect for two and a half years, ordering him not to leave his municipality. This development highlights a milestone success for Italy’s financial police and Public Prosecutor’s office as the offending operators will no longer threaten the safety of Europeans.

The online gaming and betting sector, often susceptible to criminal infiltration and money laundering, continues to face scrutiny as law enforcement works diligently to curb corruption. Italian authorities have substantial experience uncovering gambling-related crime, but the extensive reach of such illegal networks makes lasting progress difficult. Hopefully, the investigation will provide sufficient evidence to target other such enterprises before they can do much harm.

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Several days ago, MGM Resorts International was hit by an unprecedented cybersecurity issue, forcing it to shut down multiple computers and temporarily shut down its official website. Believed to be a cyberattack, the issue affected the casino and hospitality giant’s business in multiple states.

Following reports about an earlier cyberattack on Caesars Entertainment, another casino juggernaut, people familiar with the matter claimed that the cyberattack on MGM Resorts had been initiated by the same group.

Sources identified the wrongdoers as the Scattered Spider group, a notorious team of cybercriminals, believed by experts to be comprised of tech-savvy young people. Currently one of the most dangerous hacker groups in the United States, the Scattered Spider group cleverly uses social engineering to get hold of users’ login credentials and OTP codes.

The efficacy of this tactic has resulted in multiple successful cyberattacks, disrupting companies’ business.

MGM Prepares for Material Losses

MGM Resorts earlier admitted that the incident carries a significant material risk to the company. This was reflected in the company’s share price. Currently trading at a price of $41.47 per share, MGM’s stock has been on the decline since the first news of the incident.

In addition, the shutdown of multiple corporate emails, sites and booking systems is likely to incur further losses. Even worse, the shutdowns have caused significant disgruntlement among unhappy MGM Resorts customers who continue to express their worries about their personal data on social media.

Adding to the casino giant’s woes, Moody’s, an influential credit rating agency, noted that the recent attack is likely to affect MGM’s credit rating negatively because of the underlying security weaknesses.  

While MGM refused to comment on Moody’s warning, the company filed an 8-K report to the Securities and Exchange Commission, warning it about the potential impact of the cyberattack.

In the meantime, reports claim that Caesars Entertainment had been hit by a similar breach several days prior to the MGM Resorts incident. According to people familiar with the matter, Caesars had to pay tens of millions of dollars to the wrongdoers in order to secure its business.

Elsewhere, Stake.com, a leader in online and crypto gambling, recently lost millions of dollars in cryptocurrencies following an attack from another cybercrime group. The FBI later identified the attackers as the Lazarus Group, a team of hackers with ties to North Korea.

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PAGCOR, the country’s regulator, has conducted a series of operations that have focused on clamping down on such activities, with the latest taking place in Las Piñas City in Metro Manila where the Philippine National Police raided a business and ordered an offshore gaming service provider to stop business with immediate activity.

Clamping Down on the POGO Sector Harder

According to a statement issued by authorities and cited by local media outlets, the business in question has to do with Xinchuang Network Technology, Inc. The business is allegedly involved with what the regulator and police suspect is both human trafficking and cryptocurrency scams.

The latter usually takes place in the form of “pig-butchering scams.” In those cases, a victim is approached by a pretend romantic partner. The fake partner continues to ask the victim for money until they cannot pay any longer. PAGCOR said that it had been tipped about the potential offenses and had surveilled the company’s offices for a month before conducting an operation last week.

The operation was a success with police authorities retrieving a staggering number of people – some 1,534 nationals hailing from the Philippines and 1,000 nationals from the region, including countries such as Singapore, Taiwan, China, Vietnam, Indonesia, Malaysia, and Thailand. The country has had more than 41,000 illegal arrests in 2023 so far.

During the raid, authorities seized a number of electronic devices and documentation owned by the company and potentially used in the purported scams. PAGCOR chairman and CEO Alejandro H. Tengco welcomed the efforts of law enforcement and his own colleagues.

“As we have always said before, PAGCOR will not hesitate to impose sanctions on erring licensees and accredited service providers,” H. Tengco said.  The official said that PAGCOR will continue to work actively with authorities and police to ensure that its businesses are protected.

POGOs, an Ongoing Apple of Discord in the Region

The series of recent regulatory moves have to do with a toughening on the overall stance into Philippine Offshore Gaming Operations or POGOs which have been coming under a lot of heat from the regulator, but also regional countries’ governments, most prominent amongst which has been that of China.

The Philippines was recently associated with an illegal gambling website which has opportunistically stolen the domain name that was originally intended to celebrate American history in the United States but was hijacked and used to promote dangerous gambling operations instead.

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Finn’s departure comes during a tumultuous period for the company as it attempts to consolidate its revenue streams and tackle its rising debt. Such a shift in priorities might be one of the contributing factors to Finn’s decision to leave the gaming group. The former VP remarked fondly on her time with 888 but did not disclose her plans.

The Former VP Was Instrumental in 888’s Rapid Expansion

Finn joined 888 in 2015 as a global marketing director, heading the company’s global branding, advertising, media, and partnership initiatives. By then, she had accumulated substantial leadership experience, managing marketing efforts at high-profile companies like SanDisk, Verix, and Telmap. Her industry-spanning knowledge made her a natural fit for 888’s expansion-minded strategy, and she did not disappoint.

Over the next eight years, Finn more than proved her worth, rising to head of Bingo in February 2019. By that point, she had familiarized herself with the gaming market and effectively guided over 50 UK bingo brands with her engagement, marketing, and monetization strategies. She proved capable of bolstering brand recognition and attracting new players.

Finn’s tenure with 888 culminated in August of the same year when she also became VP of Strategic Marketing. Her prowess contributed to all product verticals as she guided the group’s aggressive expansion across new markets. Finn’s numerous successful campaigns earned her much praise in the industry, and her departure marks a significant loss for 888.

Shifting Priorities May Have Been at Blame

The former VP announced her decision to move on via her LinkedIn account, thanking her colleagues for assisting with her vision. Finn received a warm goodbye from the 888 teams, including former CEO Itai Pazner. She did not disclose her plans, preferring to reflect on her time with the company and the team’s accomplishments.

It’s been an amazing journey, and, hand on heart, I enjoyed every minute.

Sivan Finn, former 888 VP of Strategic Marketing

Finn’s departure from 888 comes during a tumultuous period for the gaming giant. The group’s 2022 financial results showed strong performance in key verticals but also revealed challenges with rising debt and compliance issues in the UK and Middle East. External economic pressures also dampened profits, raising concerns for the future.

888’s plans to deal with its imminent challenges revolve around developing profitable markets with an increased focus on sustainability. These priorities mark a notable shift from the group’s previous expansionist mindset and could have contributed to Finn’s decision to seek new opportunities. The gaming giant will likely have to fill the vacant position with somebody more in-line with the company’s current objectives.

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Endeavor and World Wrestling Entertainment (WWE) have agreed to merge into a new, publicly listed company consisting of two iconic, complementary, global sports and entertainment brands: UFC and WWE. 

Endeavor to Hold Majority Stake in New Company with WWE Merger

Endeavor will hold a 51% controlling interest in the new company, and existing WWE shareholders will hold a 49% interest. Together, UFC and WWE expect to deliver an estimated $50 million to $100 million in annualized run-rate cost synergies by leveraging Endeavor’s back office and robust infrastructure. 

“The new company will be well-positioned to maximize the value of our combined media rights, enhance sponsorship monetization, develop new forms of content and pursue other strategic mergers and acquisitions to further bolster our strong stable of brands,” said Vince McMahon, executive chairman of WWE. 

Endeavor further expects significant growth across revenue areas, including domestic and international media rights, ticket sales and yield optimization, event operations, sponsorship, licensing, and premium hospitality.

Endeavor and WWE Announce Executive Team for New Publicly Listed Company

A new company will be formed with Ariel Emanuel as CEO, who will continue to serve as CEO of Endeavor. Vince McMahon will be the executive chairman of the board, and Mark Shapiro will be the President and COO of both Endeavor and the new company. The new company will have Dana White as the President of UFC, and Nick Khan as the President of WWE. The Board of Directors will have 11 members, with six appointed by Endeavor and five by WWE, and their names will be announced later on.

The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals. The listing of the new company, which is currently referred to as NewCo until a new name is chosen, will expand the collective investor base to allow for broad market participation across Endeavor and NewCo. 

Endeavor and WWE CEOs Open up about the Biggest Deal in Sports Entertainment History

WWE co-founder and executive chairman, Vince McMahon, and Endeavor CEO, Ari Emanuel, spoke exclusively to CNBC’s Scott Wapner on Monday, revealing the details of Endeavor’s $21 billion deal to merge its UFC brand with WWE. The deal will eventually see the new company go public on the New York Stock Exchange. 

McMahon confirmed that this was the biggest thing he and Emanuel had ever done, combining forces like this has never been done before. When asked why he was willing to sell a controlling stake in WWE, McMahon stated that it was the right time and the next evolution of the company. Emanuel stated that the deal was a win-win for the shareholders of both WWE and Endeavor, as they were not getting the pure value of their assets independently.

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