Gaming Industry Weekly Update #24
#Breaking News
1.??????Puerto Rico Aims For April Launch Of Sports Betting
Puerto Rico is gearing up for the launch of sports betting and esports gambling which the Governor Pedro Pierlusi believes would create some $40 million to government coffers over the next five years.
It was the last act of previous governor Wanda Vázquez Garced?who signed into law bill 1534 allowing for sports betting and fantasy sports on the tiny island with some 2.5 million residents to be legalised.
2.??????Kambi forecasts potential revenue of €600m by 2026
Sports betting technology supplier Kambi has projected potential revenue figures of up to €600m (￡513m/$718m) by 2026, as revealed in its virtual Capital Markets Day presentation. In its latest financial results, Kambi recorded a 55% Q1 revenue increase to €43.2m. So by 2026 they are estimating to quadruple their revenues, which is quite an ambitious statement, but based on the US growth rates I am confident they will achieve it!
3.??????DraftKings investors invited to seek damages in aftermath of Hindenburg report
DraftKings investors invited to seek damages in aftermath of Hindenburg report. DraftKings has been targeted for potential class action lawsuits by five US law firms following the publication of a controversial report into the operating activity of proprietary sportsbook provider SBTech. Lawyers claim executives and company violated federal law by misleading investors about alleged SBTech black-market operations. So for sure the "fun game" has just started with lawyers been lined up. Let's wait until the next chapter will be unveiled.
#US / Canada
4.??????Tennessee Lottery surpasses $2bn in annual revenue for first time
The Tennessee Education Lottery (TEL) has surpassed $2bn in total annual revenue for the 2021 fiscal year as of June 15, marking the first time the operator has reached the milestone. “This has been quite the year in many ways, but our mission remains the same: to raise funds for the designated education programs we fund,†said the Lottery’s president and chief executive, Rebecca Paul Hargrove.
5.??????Louisiana Governor signs off sports betting bills
Next step for regulated sports betting in Louisiana after Governor John Bel Edwards signed two bills into law yesterday (Tuesday). The Governor’s approval has paved the way for as many as 41 sportsbooks to launch in the state, with multiple reports suggesting several will target the start of the new NFL season in September.
6.??????New Jersey fixed-odds betting bill passed by both houses
A bill to legalize fixed-odds horse racing within New Jersey has been approved by unanimous votes in both the state’s Senate and Assembly. “It is the intent of the Legislature, by authorizing fixed odds wagering, to promote the economic future of the horse racing industry in this State, to foster the potential for increased commerce, employment, and recreational opportunities in this State and to preserve the State’s open spaces.â€
The bill will now head to Governor Phil Murphy to be signed into law. By adding this "old fashioned gambling" revenue stream into the existing world of sports betting, the overall numbers in New Jersey are about to skyrocket even more!
7.??????Single-event betting coming to Canada as Senate approves bill
Canada’s senate has passed a bill allowing single-event sports betting, rather than only bets on multiples, which is a major step to legalize sports betting in G7-member state representing a GDP of 1.900.000 (which makes Canada bigger than Texas with a GDP 1.760.000)
“This is a major milestone and achievement for the Canadian gaming industry,†said Paul Burns, president and CEO of the CGA. “The need for regulation, oversight, player protection, and the creation of economic benefits for Canada was understood by everyone involved in the legislative process, which is why the Bill was successfully passed.â€
The bill must receive royal assent before becoming law.
#M&A
8.??????Exchange start-up Sporttrade receives $36m in funding
Having the funding of Smarkets still on our mind, which I reported two weeks ago, we see the Philadelphia-based sports betting exchange Sporttrade has raised $36m worth of funding through a coalition of investors including major figures from both gaming and finance. With former MGM Resorts International CEO Jim Murren and Tom Wittman – former chief executive of the Nasdaq Stock Exchange being under the investors. With this lineup of highly profiled and well connected industry legends, we for sure will see another success story for our beloved industry!
领英推è
9.??????Codere Online to spin off and go public on Nasdaq with $350m SPAC deal
Codere Group has announced plans to spin off its Codere Online business, with the new publicly listed company to be traded on the US Nasdaq stock market. Codere Online said it will seek to take its business model in Spain and Mexico throughout Latin America, building existing markets such as Colombia and leading new opportunities in Brazil, Chile, Peru, Uruguay and Argentina. It will also analyse options to access the Hispanic online gambling niche in the US.
10.??BoyleSports hungry for the retail cuts of William Hill sell-off
“We already have 21 shops in the UK which, along with our 45 shops in Northern Ireland and our recently upgraded online betting site, gives us a sizeable foothold in the UK,†read a BoyleSports statement. “The sale of the William Hill estate presents us with a rare opportunity to achieve the retail scale we have been targeting.â€
The WH retail business has an estinated worth 1,5bn. Remembering Boyle sports having 45 betting shops in Ireland and 21 shops in the UK, totaling in 66 shops overall, now they are looking to buy 1.400 WH shops in the UK, which is an increase of size of 21 times. A quite ambitious mission or in other words a "small fish" looking to eat a big "whale"
#Regulation / Legal
11.??Bundestag approves Germany’s controversial 5.3% turnover tax
With Germany's online casinos setting to become fully legal across Germany from the 1st of July, preparations are underway. The bill which had been drawn up by the Federal Government has been approved by the FBundestag on Wendesday 23rd of June. The approved controversial bill has now set a 5.3% iGaming turnover tax under Germany's new State Treaty on Gambling, the Glücksspielstaatsvertrag (4th edition).
12.??Betway loses Spelinspektionen bonus penalty appeal
Betway has lost its appeal to dismiss-or-reduce its SEK 4.7 million (€460,000) fine issued by Swedish gambling inspectorate Spelinspektionen in relation to bonus violations sanctioned in 2019. However, the J?nk?ping Court dismissed Betway’s secondary appeal to terminate the penalty. Betway appealed based on the grounds that its operations were adjusting to new player restrictions sanctioned by Spelinspektionen.
13.??Spelinspektionen to appeal court’s reduction of Aspire and Genesis fines
The same court which also rejected the above appeal made by Betway against a Spelinspektionen penalty has to deal with an additional file of the Swedish regulator Spelinspektionen. The Swedish regulators has appealed a decision from a Swedish court to reduce penalties against Genesis Global and Aspire Global’s AG Communications, arguing that the decision was of “decisive importance†to its power to issue appropriate penalties in general. However, Spelinspektionen has now opted to appeal both rulings to the Supreme Administrative Court.
https://igamingbusiness.com/spelinspektionen-to-appeal-courts-reduction-of-aspire-and-genesis-fines/
### The Malta Nightmare on Elm Street###
14.??FATF votes to greylist Malta
Sources said Malta was one of two countries that the FATF plenary voted to add to the grey list, with the other being Romania. If those votes are confirmed, they will be the first two EU countries to be added to the list. Prime Minister Robert Abela and Finance Minister Clyde Caruana are expected to address a press conference later on Wednesday.
Opposition leader Bernard Grech described the decision as a "punishment for the entire nation" and urged the government to set up a unity task force to limit the greylisting damage.
It will be thrilling to see how companies will react to this decision of greylisting Malta.
-?????????As it was already very demanding to open up a bank account for a Malta based company, will this become an impossible task now?
-?????????Will PSPs be forced to shut down any business with operators having their headquarters in Malta?
-?????????Will most operators redomicile / relocate work forces? Which countries are possible destinations for workforces? Will Portugal become the new gaming hub?
-?????????Will operators shut down their Malta entities, as possibly MGA licenses can no longer be "extended" to different geo locations and MGA licenses therefore seem to be "no more added value", which will result in Malta becoming very silent and GDP will drop significantly?
If you are interested in way more about "What will Malta's greylisting mean to the local iGaming industry?", please watch and listen at the interview of Pierre Lindh discussing this game changing topic ?with the open minded, very smart and well connected insider of Julian Buhagiar.