In New Zealand, capping the number of licensees at 15 has not deterred a range of operators from having a taste for the business.
The Expression of Interest Period closed last Friday with 50 reported applications in the market. But the recent rumors are perhaps the ones that have caused the most raised eyebrows.
The Australian said it had been told by people close to the situation that VGW had considering making an Expression of Interest for one of 15 licences on offer.
However, the sweepstake operator immediately put the rumors to bed. A VGW representative informed the publication that it was ’certainly not true’ it was chasing a licence.
The new framework outlined by the authorities in New Zealand requires all operators filing EOIs to include entity documentation, a diagram of current ownership and management structure, the amount and source(s) of capital available and a verified credit check/report.
Each important officer was also required to submit a criminal background check and a certified credit check or report.
The company is owned by its founder, Laurence Escalante, who last year bought out the company’s minority owners in a deal worth AU$3.2bn (£1.6bn).
However, Escalante stepped down as Chief Executive Officer in June after facing a raft of charges including assault, burglary and theft.
VGW has also faced substantial regulatory and legal action in the US, as politicians continue to try and clamp down on the sweepstakes vertical.
Earlier this week, Florida Attorney General James Uthmeier sued multiple sweepstakes casino operators, including VGW and Sweepstake.
Uthmeier said the companies are running "illegal online gambling operations" and "preying on Floridians, including minors and seniors."
In the matter of Stake
Stake is also reportedly eyeing at a chunk of the New Zealand market, adding a bit more color to an already dysfunctional mix of hopefuls.
The operator Stake has been consistently criticized for operating in markets without the required licence. Yet, it has acquired approval from regulators in Italy, Brazil, Colombia, Peru and Denmark.
Additionally, Stake’s strong footprint in the Australian market will also help it in its pursuit of a New Zealand license.
Other potential providers include Entain, which currently operates in the country through its online sports betting brand TAB NZ, Tabcorp and challenger brand Dabble, which is looking to capitalize on its recent UK launch.
As BetComply’s Chief Compliance Officer Mike de Graaf told iGaming Expert before, the market would reward those operators that have already started showing their alignment to the new framework.
“New Zealand is not going to reward operators that treat regulation as a box-ticking exercise,” he said. “The market is being molded to separate credible, long-term operators from those who simply chased offshore traffic.
In total each organization can be awarded up to three licences, with an auction scheduled in September before the licences are formally awarded in December.
