iGaming Weekly Wrap-Up #25
#Breaking News
1.??????Evolution strikes €340m takeover of NoLimit City
Evolution Gaming has this morning reached an agreement to acquire Nolimit City for an upfront cash consideration of €200m.
The deal contains a number of earn-outs options that could amount to €140m, which would price up Evolution’s total valuation of NoLimit City to €340m, payable in cash.
The company notes that this falls in line with a “strategy of being the world’s number one provider of online casino games,” and follows past purchases made during recent years of NetEnt, Red Tiger and Big Time Gaming. The company’s wider portfolio also boasts Evolution, Ezugi, and DigiWheel.
“With the addition of Nolimit City to the Evolution family we extend our portfolio of truly innovative and cutting edge games from the top brands and game makers in the industry,” noted Jens von Bahr, Chair of Evolution.
“We have followed Jonas, Emil and their team for a few years and been impressed as they have established a completely new style of slot games. I am proud that yet another of the very best minds in our industry has chosen to join the Evolution network.”
Nolimit City revenue is expected to amount to €30m with an EBITDA of €23m for the calendar year 2022. The transaction is expected to contribute positively to 2022 EPS for the Evolution Group.
?2.??????Kindred Group to cease all German market operations from 1 July
Kindred Group has withdrawn its sportsbook and slots licence applications in Germany and will exit the market entirely from 1 July 2022.
The Stockholm-listed operator has pulled out of the licence application process – which has been ongoing for more than two years – to focus resources on other strategic priorities.
These priorities include growing its business in North America, building a proprietary sportsbook to improve product control and ensuring that 0% of revenue is derived from harmful gambling behaviour by the end of 2023.
Kindred Group previously operated in Germany’s unregulated market via its flagship Unibet brand. It had been expected to enter the market on a regulated basis as part of Germany’s Fourth Interstate Treaty on Gambling, along with many other competitors, although this legislation is proving particularly complex.
The writing was arguably on the wall when Kindred pulled its online poker operation out of Germany in September of last year.
The same decision has now been made across the firm’s online sports betting and casino products, with Kindred describing the market environment as unsustainable for licensed operators.
?3.??????BetBull to cease all operations on 3 July
BetBull will end its business run on July 3. Registrations expect to cease Friday. Wynn Resorts-backed mobile-first sportsbook will take withdrawals until then. After that, they will be no more.
“BetBull has made the difficult decision to cease operations, effective 03/07/2022. Please find the FAQ section in the link for more information,” the company said in an announcement.
The most obvious question is, what happened? Sadok Kohen, the company’s founder, had BetBull on the fast track to success with Wynn as a significant backer.
Wynn looked to be all in by the end of 2020 as their shareholding increased to 71%.
While some debate that COVID-19 slowed business, the real reason might be reasonable old regulations. That is correct. It appears Britain is about to enact some sweeping new rules that could have crimped BetBull’s ability to conduct business, etc.
Some customers have already lamented that they cannot withdraw funds as the option is currently unavailable. It is a practice that is relatively common. What will happen to the employees, etc.?
BetBull had been running advertisements up until last weekend. The company may have known the end was coming.
?4.??????Are NJ Sportsbooks Really Shielded From New York Cannibalization?
The NJ sports betting market continues to face questions about cannibalization from New York, and May data did not help to clarify the situation.
New Jersey sports betting handle fell 17% month-on-month to $766 million. However, sportsbooks enjoyed a very healthy 8% hold rate on that handle, helping them to $62 million in revenue. That marked a 25% increase over April, per the state report.
The high-hold month was a break from the 2022 trend, however. Through May, books accrued $269 million in revenue on 5.2% hold. That revenue figure is down 9.3% compared to 2021, while handle is up 25% in the same period.
What is driving low NJ hold?
Of course, that low hold for 2022 may not be accidental. In a recent note, analysts at Wells Fargo said the impact of New York sports betting had been masked by increased promotions in New Jersey.
Wells Fargo said either New Jersey players had enjoyed “extreme good luck” or gross gaming revenue was depressed by an increase in price boosts and specials.
Of course, it is hard to be sure because New Jersey does not report the level of promo spend in the market.
Who led NJ sports betting?
The Meadowlands license led the way, with a 58% share of revenue at $35.5 million.?FanDuel, PointsBet and SuperBook license through the Meadowlands.
Second on the list was Resorts Digital with an 18% share and $11 million in monthly revenue. Those partner brands include DraftKings and FoxBET. It could soon include Mexican brand Caliente, after Resorts announced plans to close down its own sportsbook offering.
5.??????Hard Rock Hotel & Casino Athens to open in 2026
Hard Rock International and GEK TERNA Group have joined forces to construct and operate Hard Rock Hotel & Casino Athens, which is expected to open in 2026.
The two groups held an event yesterday to signal the beginning of the partnership, with the integrated resort and casino to be located in the iconic area of the Athens Riviera.
The venue will combine a five-star luxury hotel, a gaming floor, and a premier meeting and convention space, as well as internationally renowned food and beverage and a high-end retail promenade.
“We are thrilled to announce the partnership with GEK TERNA Group and further expand Hard Rock’s reach across the globe in the great city of Athens,” said Hard Rock International Chairman Jim Allen.
“This development will bring over 3,000 jobs to the people of Greece and we look forward to bringing our unique brand of entertainment to provide an unparalleled experience for guests of all ages.”
The casino will comprise 200 tables and 2,000 gaming machines, while the venue will include a tower that consists of over 1,000 guest rooms and suites that will overlook the waterfront or the Parthenon.
#US / Canada
6.??????Louisiana online sports betting revenue rockets in May despite handle decline
Online sports betting revenue in Louisiana jumped 584.9% month-on-month in May despite the US state witnessing a 23.3% decline in handle.
Revenue for the month amounted to $22.6m, a significant increase from $3.3m in April and the second-highest monthly total since Louisiana opened its legal online betting market in January this year.
However, consumer spending fell from $186.0m in April to $142.6m, the lowest full monthly total since the market’s launch. It was also noted that this figure included $365,295 worth of promotional bets, the lowest monthly figure to date.
Baseball betting proved the main single source of revenue for licensees, with wagers on the sport generating $5.7m in revenue, ahead of $4.7m from basketball, $331,777 from football and $126,440 from soccer.
It was also noted that $837,380 in revenue came from betting on other sports, while $10.9m was generated from parlay betting.
Turning to retail betting, which became legal in October last year, revenue for the month was $2.7m, up 17.4% from $2.3m in April. Retial handle also increased by 28.4% to $28.5m.
?7.??????Michigan online operators report $160.9m gross revenue in May
US.- Michigan’s igaming and sports betting revenue for May was $160.9m, a 1 per cent decline month-on-month. Gross igaming receipts totalled $127.4m, down 4 per cent from the record $132.4m reported in April.
GGR for sports betting reached $33.5m, a 9 per cent increase from the $30.7m recorded in April. Of that, $22.5m was taken via online sports betting.
The online sports betting handle was $333.4m, down 10 per cent compared to April. The top three performers by handle were FanDuel, with $103.6m, BetMGM with $85.4m, and DraftKings, which reported $69m.
Although Michigan’s May results represent a combined month-on-month decline, GGR for igaming was up nearly 29 per cent compared to the same month in 2021, while online sports betting was up 127 per cent year-on-year.
Michigan received $24.6m in taxes from operators, $23.5m came from iGaming and $1.1m from online sports betting.
?8.??????Pennsylvania gambling revenue reaches $447.8m in May
Gambling revenue in the state of Pennsylvania amounted to $447.8m (￡363.8m/€425.4m) in May, an 8.4% increase on the same month last year.
Total market revenue was up from $413.2m in May of 2021, but down 3.2% from a record $462.7m in April this year.
Land-based gaming remained the most popular form of gambling among consumers in the state, with retail slots revenue increasing 2.1% year-on-year to $205.7m and retail table games revenue 14.7% to $88.6m.
Sports betting revenue was up 26.2% to $35.0m, though retail revenue here was just $2.8m, with $32.3m being attributed to online wagering. The state’s handle also increased by 10.3% to $493.4m.
Valley Forge, along with partner FanDuel, retained top spot in the sports wagering market with $19.8m in revenue from $193.4m in bets.
Hollywood Casino at the Meadows’ Barstool Sportsbook placed second with $7.1m in revenue off a $111.5m handle, then Hollywood Casino at Penn National and DraftKings with $1.9m from $34.4m in wagers.
Turning to online casino activity and revenue from internet slot games was 16.3% higher at $78.2m, while online table games revenue also edged up 2.8% to $32.3m and online poker revenue climbed 8,0% to $2.8m.
领英推荐
?9.??????New Jersey gambling revenue up 15.1% year-on-year in May
The latest monthly revenue report from the New Jersey Division of Gaming Enforcement has revealed that total gambling revenue for the month came to $430.6 million during the month of May.
The latest figures represent a jump of 1.9% on the $422.5 million reported during April and a 15.1% increase on the same period in 2021.
Land-based casinos remained the major source of revenue in New Jersey as casino operators reported combined revenues of $233 million during May, an increase of 9.3% year-on-year. Slots revenue jumped by 10.5% and amounted to $174.3m. Meanwhile table gaming revenue increased by 6.1% to $58.7 million.
Online gambling showed the biggest growth year-on-year as revenue jumped by 25.7% to $136. million. This was mostly driven by a a 26.4% jump in internet slots revenue to $133.7 million. However, online poker revenue fell by 4% to $2.3 million.
Borgata once again remains the runaway leader in the NJ online gambling sector. The company reported $42.6 million in revenue for the month while its nearest competitor Resorts Digital reported $29.8 million slightly ahead of ahead of Golden Nugget with $29.7 million in revenue.
?10.??North Carolina sports betting bill to be discussed in House chamber
The sports betting legislation passed by the North Carolina senate is expected to finally receive consideration in the General Assembly’s lower chamber.
US.- It seems that the proposal will be taken directly to the General Assembly on June 30 for a chance to pass before the end of the current legislative session. Senate Bill 688 has already been approved by the Senate in a 26-19 vote and sent to the House of Representatives for consideration.
Yesterday, SB688 and another sports betting legislation passed through the North Carolina House Judiciary I Committee. Stops in the House Finance Committee and House Rules Committee are needed before either bill may reach the House floor.
If SB688 bill passes, players will be able to place bets at the state’s commercial land-based casinos and from their phones on professional and collegiate sports. The state lottery would issue 10 to 12 operating licences, which would last five years. At the moment, sports bettors in North Carolina can only bet at two tribal casinos operated by the Cherokee Indians.
Licences would have an initial fee of $500,000 and a renewal fee of $100,000. Platform and odds providers would be able to apply for licences, paying a $25,000 application fee and a $10,000 renewal fee. Other providers would be required to pay $15,000 and $5,000.
The bill currently proposes an 8 per cent tax rate on gross gaming revenue, but the expectation is that the tax rate will be raised to 10 per cent or above.
?11.??Two Mobile Sportsbooks First To Apply For Ohio Sports Betting Licenses
Two nationally-known mobile sportsbooks were the first to apply for an Ohio sports betting license last week.
BetMGM and PointsBet both applied for mobile management service provider licenses, which would authorize them to launch online sports betting in Ohio.
The two applications are the first of around 3,000 expected before sports betting launches Jan. 1. Mobile, retail and kiosk betting at lottery retailers must launch simultaneously according to HB 29.
Applicant names and when they submitted their information might be the only details the Casino Control Commission provides on its licensing page.
BetMGM applied for both its mobile and retail license June 15, the first day the application period opened. PointsBet followed with its mobile application June 16.
Neither have their partner listed on the page though there is no secret who either is. BetMGM can launch through its MGM Northfield Park while PointsBet partnered with Penn National for access to Ohio back in 2019.
#M&A & Finance
12.??Betsson nets €90m from new bond placement
Swedish-based gambling group Betsson AB announced this week it has managed to successfully place new senior unsecured bonds in the amount of €90 million ($94.23 million).
The new bonds issued by Betsson AB are under a framework of up to €250 million ($261.75 million), have a tenor of three years, and bear a floating interest rate of 3 months Euro Interbank Offered Rate (EURIBOR) plus 650 bps and a final maturity date in June 2025.
Commenting on the announcement, Betsson’s chief financial officer Martin ?hman expressed his content that the company’s new bonds attracted “large interest… from a broad range of investors,” among which Nordic and international institutional investors.
“This signals confidence in our business strategy, which continues to generate profitable growth and stable cash flows.”
On June 8, 2022, in preparation for the new bond issue, Betsson offered holders of outstanding senior unsecured floating rate bonds in the amount of SEK1 billion (€93.34 million/$98.06 million) with a maturity date of September 26, 2022, to tender their bonds for purchase by the company at a price of 100.50% of their nominal amount.
?13.??Blackstone's $5.65B sale of Cosmopolitan Las Vegas sees no real estate transfer taxes due to Nevada's 2007 law change
The transaction that saw Blackstone sell The Cosmopolitan of Las Vegas for $5.65 billion, including a $1.625 billion lease-back deal for MGM Resorts International to acquire its operations last month, became the latest high-priced sale in Las Vegas that did not publicly report tax payments routinely levied on home purchases, in the form of real estate transfer taxes.
Blackstone announced on May 17 that it completed its sale of The Cosmopolitan. The same day, a deed for the property was recorded with Clark County that showed no sales price, no transfer-tax value and no transfer tax due, with those designated lines blank, according to county records cited by Las Vegas Review-Journal.
The transaction —like several others in Southern Nevada, according to an investigation by the cited news website last month— cites an exemption allowed under a 2007 state law when property owners transfer real estate to a subsidiary to spare companies from paying the tax, which is regularly applied on sales of homes, apartment buildings and other sites. Buyers often acquire a limited liability company or other entity that holds ownership of the real estate instead of purchasing the property directly. Its stated explanation: “Transfer between business entities with a parent subsidiary relationship (parent to direct subsidiary).”
14.??????Gibraltar added, Malta removed from FATF grey list
Gibraltar has been added to the Financial Action Task Force (FATF) grey list as a result of failings related to its gambling industry, though Malta has been removed.
FATF – a global anti-money laundering body – keeps a list of “jurisidctions under increased monitoring”, also known as its grey list.
In a press conference today – which was delayed due to extended discussions at the FATF plenary – the body revealed that Gibraltar was added to the list.
As a result, officials in Gibraltar have adopted an action plan on the issue.
“Gibraltar needs to take a number of steps including focusing on gatekeepers to the financial system, including gambling operators and lawyers,” FATF chair Marcus Pleyer explained. “At the moment, supervisors are not applying sufficient fines for anti-money laundering failings.
?15.??????Brazil’s governing party confirms gambling legislation delayed until after October elections
As widely expected, Brazil’s governing Liberal Party has confirmed that no federal gambling or sports betting bill will be approved before Brazil settles its general elections in October.
The decision was confirmed by Carlos Portinho, Senate leader of the Liberal Party, who backed the delay supported by President Jair Bolsonaro.
The delay scuppers original plans drafted by SECAP – the government’s Secretariat of Evaluation, Planning, Energy and Lottery to launch Brazil’s federal sports betting regime to coincide with the FIFA 2022 World Cup in Qatar (21 November to 18 December).
The terms for Brazil’s federal sportsbook and gambling frameworks were agreed upon in May, approved by congress and the Ministry of Finance to be signed into law by President Bolsonaro’s office.
However, following weeks of delays in securing Bolsonaro’s signature, Brazilian media reported that the Liberal Party had chosen to stall any gambling mandate as elections dawned.
Of significance, Bolsonaro was reported to be seeking the support of Brazil’s Evangelical lobby, a core campaign base for the President’s re-election, who are staunch gambling prohibitionists.
Though settled by Congress, Bolsonaro has personally chastised the gambling proposals, in which he is reported to have guaranteed Evangelical leaders a final say in how new laws will be implemented, should he win re-election.
?16.??????Tipwin reported to the police by Danish Gambling Authority over AML breach
The Danish Gambling Authority (DGA) has reported sports betting operator Tipwin to the police for breaching several rules relating to the regulator’s anti-money laundering act.
The regulator said that up until 16 May 2022, Tipwin had not prepared a proper risk assessment of its sale of land-based betting products, while business procedures relating to AML were also deemed insufficient up until 25 May.
According to the DGA, Tipwin has not implemented the correct risk assessment policies and operational procedures that would mitigate the risk of money laundering.
It said: “By neglecting to prepare a risk assessment, Tipwin has not had a useful tool to provide an overview and understanding of where and to which extent Tipwin is in risk of being abused for purposes of money laundering or financing of terrorism.
“By neglecting to prepare a risk assessment, policies and sufficient business procedures for their provision of land-based gambling products, Tipwin has exposed itself to a significant risk of being abused for purposes of money laundering.”
The land-based failings relate to self-service betting terminals, prize receipts and credit vouchers, while the operator also failed to assess customers that made transactions of more than €2,000 within 24 hours.
?17.??????UK Gambling Commission issues guidance on required consumer protections
The UK Gambling Commission (UKGC) has issued new guidance to help operators match new consumer protection requirements that will be introduced as of 12 September.
The guidance follows the Commission’s April update that announced a raft of new procedures ‘ensure online gambling businesses do more to identify and taken action to protect customers at risk of harm’.
Licensed operators must ensure new requirements are implemented to identify vulnerable customers, utilising indicators of harm that must be monitored.
Operators must take into account what is considered a strong indicator of harm; when to use automated systems and processes; and how to evaluate the impact of customer interactions.
The guidance noted that additional practices outlined throughout the COVID-19 pandemic, will still apply and be available for operators to refer to until that aforementioned date.
Andrew Rhodes, Gambling Commission Chief Executive, commented: “Operators must take account of this guidance ahead of the stronger requirements coming into effect.