iGaming Weekly Wrap-Up #31
#Breaking News
1.??????Smarkets ‘fully accepts’ ￡630k Gambling Commission penalty
The UK Gambling Commission (UKGC) has handed out its latest penalty for social responsibility and anti-money laundering breaches, charging online operator Smarkets.
A penalty of ￡630,000 was dealt to the Malta-based firm, which operates the SBK sportsbook, for failing to carry out ‘adequate’ source of funds checks as well as identifying or interacting with at-risk customers.
Of significance to the regulator, one particular customer deposited ￡395,000 over four months without appropriate source of funds checks conducted, whilst another bettor transferred ‘significant levels of funds’ between accounts without investigation.
Jason Trost, Smarkets CEO and Founder, stated that the company would ‘fully accept’ the UKGC’s investigation in its ‘former procedures’, and would continue to work with the regulator moving forward.
“We have worked cooperatively with the Commission throughout the process and taken significant measures to implement their recommendations, investing substantially in our compliance function,” Trost continued.
“We take our responsibility to have appropriate compliance policies in place extremely seriously. We will continue to work closely with the UKGC and other relevant stakeholders, and will take proactive steps in order to ensure further improvement to our procedures on an ongoing basis.”
https://sbcnews.co.uk/sportsbook/2022/08/11/smarkets-fully-accepts-630k-gambling-commission-penalty/
?2.??????Retail FanDuel Sportsbook Coming To Las Vegas Boyd Casino
FanDuel is on the agenda for licensure this month in Nevada, but the company is keeping its plans close to the chest.
A company spokesperson declined comment on why FanDuel is listed on August’s Nevada Gaming Control Board agenda, which was published Thursday. The first hearing will come next week with the Gaming Commission meeting Aug. 25 for final approvals.
Not everyone is keeping their lips sealed, though. Boyd Gaming confirmed a Nevada Independent report that it will open a retail FanDuel Sportsbook at its Fremont property.
The retail sportsbook will use FanDuel brand and odds but will remain staffed by Boyd, according to the Independent.
“We believe the FanDuel Sportsbook would be a great addition to the Fremont and the downtown area, and we look forward to sharing more details following the receipt of required regulatory approvals,” a Boyd spokesperson said.
Those additional details could include more casinos along with when the retail book could open. The Fremont is undergoing renovations that should wrap up this year, CEO Keith Smith said on Boyd’s earnings call.
Boyd has nine other casinos throughout Las Vegas. The market-access agreement between the two does not include Nevada, but Boyd also owns 5% of FanDuel so further expansion makes sense.
That stake has been quite fruitful for Boyd. The company expects about $30 million in cash flow from the stake this year and expects it to continue to grow, Smith said.
?3.??????Catena Media expands strategic review of European assets with cuts likely in Malta and UK
Catena Media has put its European business segment under the microscope as it seeks to save at least €5m in annual operational and capital costs.
The intention is to free up resources from its legacy European assets so that the affiliate can focus on higher margin growth opportunities in the US, Asia-Pacific and Latam markets.
Catena Media does not provide a comprehensive regional breakdown of revenue. In Q1 2022, however, North American revenue rose by 32.5% to €29.5m, or 65.2% of the overall total.
Some UK and Malta-based employees are expected to be impacted by the cuts. The company will now enter into a formal consultation process for affected employees.
In a public statement, Catena said the strategic review would create maximum value for the company and its shareholders moving forwards.
The review was first initiated in May 2022, when the business revealed it was exploring the potential sale of its popular AskGamblers casino brand.
The review has now been expanded to focus on Catena’s European sports betting and casino assets that are separate to AskGamblers, primarily due to regulatory headwinds in the region.
?4.??????Entain H1 revenue up 19%
Entain has reported its interim results for the six months ended 30 June 2022, as well as announcing the acquisition of SuperSport in Croatia.
The group has posted revenue of ￡2.1bn ($2.6bn) for H1 2022, a 19% increase from the prior-year period. Group EBITDA climbed 17% year-on-year to ￡471m, with group profit after tax from continuing operations amounting to ￡28m, down ￡63m.
Entain noted that the “robust group performance” during H1 reflects the “diversified business model and underlying momentum of the online business.”
Total group net gaming revenue (NGR) grew by 18% to ￡2.1bn, but online NGR reported a 7% decline, which reflected “strong prior-year comparators driven by Covid lockdowns, temporary closure in the Netherlands, affordability measures in the UK and customers responding to the economic backdrop.”
Entain CEO Jette Nygaard-Andersen commented: “We continue to make excellent progress on our strategic priorities, with momentum in our business remaining strong as a result of putting the customer at the heart of everything we do.
?5.??????Jake Paul-backed micro-betting start-up raises $50m ahead of B2C launch in US market
A new sports betting operator is set to enter the US market in the coming months with support from social media influencer turned professional boxer Jake Paul and Simplebet founder Joey Levy.
Betr announced today (8 August) that it has raised $50m in Series A funding from a slew of high-profile investors, including VC firms Florida Funders, 8vc and Aliya Capital Partners, as well as famous US athletes such as the NFL’s Ezekiel Elliott, Dez Bryant, Desean Jackson and Richard Sherman.
The brand is aiming to become the first direct-to-consumer (B2C) sports betting operator focused exclusively on micro-betting in the US market. It is also destined to feature a second, separate arm designed to pump out sports-themed media for a new generation of bettors.
“Betr is setting out to disrupt legacy gambling and legacy media, with a mission of making sports and betting betr,” the company said in a statement.
The brand will leverage B2B supplier Simplebet’s micro-betting technology, which allows customers to place bets on brief and specific sports moments – such as pitches and at-bats in MLB, or plays and drives in NFL.
#US / Canada
6.??????Massachusetts Gov. signs sports betting into law; Gaming Commission now takes the reins on implementation
Massachusetts Gov. Charlie Baker has now signed sports betting into law. The news was confirmed by his office on Wednesday, and comes after lawmakers in the Bay State reached an agreement earlier this month to legalize betting on both professional and college sports. Baker said he looks forward to the law being implemented "over the next several months,” with the ball now in the Massachusetts Gaming Commission’s court.
"Our administration first filed legislation to legalize sports wagering in the Commonwealth several years ago, and I am glad to be able to sign this bill into law today," Baker said in a statement. "We appreciate the dedication and compromise that the Legislature demonstrated on this issue, and we look forward to supporting the work of the Massachusetts Gaming Commission on the responsible implementation of the law over the next several months."
Baker’s signature finalizes a years-long push to legalize sports betting in the state, bringing it into line with most of its neighbors, including New York, New Hampshire, Connecticut, and Rhode Island. The governor’s move also came one day before a Thursday deadline to take action on legislation Beacon Hill sent him last week, at the end of formal lawmaking for the year.
?7.??????AGA requests Biden partners with sector on digital strategy order
The American Gaming Association has sent a letter to the President of the United States requesting that the Biden administration partner with the igaming industry.
Regarding the US government’s ongoing efforts to develop and implement a digital strategy, the AGA respectfully requests that the US government evaluate how any new frameworks or requirements would map onto the gaming industry.
The executive order is said to put in motion a “whole-of-government effort”to promote the appropriate principles, standards and best practices for governing digital assets – such as cryptocurrencies and NFTs.
Furthermore, the use of digital assets in gaming is allegedly under consideration by many companies and regulators as the sector explores alternative payment options.
The letter read: “Complying with requirements such as anti-money laundering regulations for fiat currency has illustrated over time that the operations of the gaming industry raise unique questions that can necessitate tailored requirements and guidance for the industry.
“As they have with fiat currency, AGA’s members remain a willing partner to assist the US government to fashion predictable and workable guidelines to govern the use of digital assets in the gaming industry.”
?8.??????Caesars and EBCI to Build a $650M Casino in Virginia
Nasdaq-listed, leading company boasting the most prestigious gaming brands on the planet Caesars Entertainment has announced a joint venture partnership deal with the Eastern Band of Cherokee Indians (EBCI). According to the terms of the agreement, the two parties will work together to build and open Caesars Virginia, a $650 million casino in Danville, Virginia.
The new project will be initiated this current week with ambitious plans of becoming a massive magnet for tourists in the area and the surroundings by the end of 2024, the scheduled date for its official opening. The casino will be a full-service entertainment venue that will support the local economy through thousands of new jobs in construction and operational fields. The new employees will help maintain the 500 rooms in the dedicated hotel and offer their services on the top-tier gaming floor dedicated to casino players and sports aficionados. The venue will count 1,300 slots, 85 live table games, 24 electronic table games, a World Series of Poker room, and a Caesars Sportsbook. The sportsbook app is currently live and prepared for download and registration in the state.
?9.??????Higher stakes drive July sports betting revenue growth in Iowa
An increase in consumer spending on sports wagering in Iowa led to a year-on-year rise in revenue in the US state during July.
Players bet $108.6m on sports in July, up by 22.2% from $88.9m in the same month last year but 11.3% lower than $122.4m in June of this year.
Of this total, $98.4m was spent betting on sports online, while $10.2m was wagered at retail sportsbooks across the state.
In terms of revenue, this increased by 57.7% year-on-year from $7.1m in July 2021 and was also 33.3% up from $8.4m in June this year despite the lower handle. Online sports betting generated $10.1m in revenue and retail $1.1m.
?10.??Oregon sports betting revenue and handle both up in July
Sports betting gross gaming revenue and handle in Oregon both increased year-on-year in July, according to the latest figures published by the Oregon Lottery.
Oregon sports betting revenue and handle both up in July
Consumers in the state wagered $28.5m on sports during the month, up 60.0% from $18.2m in the corresponding month last year but 16.2% lower than $34.0m in June of this year.
Gross gaming revenue from sports betting reached $2.7m, which was 22.7% ahead of the $2.2m in July 2021 and also 8.0% up from $2.2m in June this year, despite the higher handle in the previous month.
All revenue was generated by DraftKings, with Scoreboard posting a small loss of $190 for the month. The Oregon Lottery’s Scoreboard online sportsbook has been phased out and replaced by DraftKings, but still pays out on bets placed before this process began, meaning small negative revenue totals are expected.
https://igamingbusiness.com/sports-betting/oregon-sports-betting-revenue-and-handle-both-up-in-july/
?11.??New York’s monthly betting handle dips below $1bn for first time due to seasonality
New Yorkers placed a total of $800.8m in online sports wagers during July – a record monthly low since the regulated sports betting market opened in January.
This represents a drop-off of 23.8% from the $1.05bn wagered in June and cements July as the first month with handle below $1bn, according to data from the New York State Gaming Commission.
Meanwhile, gross gaming revenue (GGR) from mobile sports betting climbed marginally by 1.2% from $72.4m in June to $73.3m in July.
However, the reduced handle should not be seen as a sign that punters have lost their appetite for mobile sports betting. The dip in handle is simply due to seasonality, US iGaming experts confirmed to iGaming NEXT.
Both spring and summer are traditionally quieter months in the US sports wagering calendar due to a lack of major sporting events as bettors await the start of both college football and the NFL.
#M &A & Finance
12.??Light & Wonder hails transformative Q2 lowering debt by $4.9bn
Light & Wonder Inc has cited confidence in achieving its long-term financial objectives as the Nasdaq technology group continues to benefit from its ongoing corporate transformation.??
Publishing its Q2 trading results, Light & Wonder (formerly Scientific Games Corporation) generated $610m from ‘continued business units’ – up 5% on corresponding 2021 results of $580m.
Q2 trading saw Light & Wonder complete the sale of the SG Lottery unit to US private equity fund Brookfield Partners for $5.7bn.
In connection with the sale, Light & Wonder was able to reduce its principal debt by $4.9bn to the current status of $3.9bn –?representing a debt ratio reduction to 3.5x from 6.1x.
The corporate reorganisation has seen Light & Wonder announce a new auditing structure led by the primary units of Gaming (land-based), SciPlay (social games) and iGaming (content and games).
Period trading saw Light & Wonder’s Gaming unit register a 6% increase in revenues to $390m – results that exceeded pre-COVID 2019 comparatives.
?13.??Entain to buy SuperSport valued at €920m & prepares for wave of Eastern Europe acquisitions
Online giant Entain has agreed to acquire a 75% stake in Croatian market leader SuperSport for €690m, in what it expects to be the first of many acquisitions in Central and Eastern Europe.
Entain will partner with Czech investment firm EMMA Capital to create a new venture named Entain CEE, in which Entain will own a 75% stake.
This new business – intended to make acquisitions in Central and Eastern Europe – will then acquire SuperSport, which is the largest betting and gaming brand in Croatia.
While Entain cited SuperSport’s 54% market share as one reason for doing the deal, it also suggested that the deal will just be the start of a flurry of M&A activity targeting Central and Eastern Europe.
The Entain board said the business would create “an exciting platform” in this region, led by SuperSport CEO Radim Haluza.
#Legal & Regulation:
14.??Lithuanian regulator warns Tete-a-Tete Casino for AML failings
The Gambling Supervisory Authority found that the operator breached laws by failings to record certain details.
The Gambling Supervisory Authority has issued a warning to Tete-a-Tete Casino for breaches of anti-money laundering (AML) and terrorist financing prevention rules. The warning follows an investigation of activities carried out between December 31, 2019, and April 22 of this year.
The Gambling Supervisory Authority said Tete-a-Tete Casino had also breached national laws through failures in internal procedures, including a lack of control procedures for customer risk management, data storage and employee training in AML and terrorist financing prevention processes between December 29, 2019, and November 8, 2021.
The regulator also found that the online gaming operator had failed to check the nationality of customers who deposited more than €1,000 or equivalent. The operator also failed to record the time deposits were made and the currency in which they were made and failed to collect information on suspicious transactions.
?15.??UK online Q4 GGY rises 1% but UKGC warns against yearly comparison
The British betting and gaming industry’s post-pandemic recovery is on track according to recent UK Gambling Commission (UKGC) figures.
Published on the regulator’s website, the data revealed total online GGY during the first quarter of the financial year (April-June 2022), rose by 1% from Q4 to ￡1.2bn. The number of active accounts, meanwhile, rose by 5%, as did the number of bets and spins.
Retail betting also maintained its bounce back against difficult post pandemic trading conditions, increasing by 6% quarter-to-quarter to ￡584m, with the number of total bets and spins in Britain’s LBOs rising by 3% to 3.3bn.
However, the Commission has warned against making comparisons to the previous year, noting ‘operating circumstances’ have varied greatly from 2020 to 2022 due to lockdown conditions and other COVID-19 impacts.
This is particularly true in the case of retail, with betting shops and brick-and-mortar casinos closed for significant portions of 2020 and 2021.
Even when high-street bookies were open, there were several months when certain restrictions were still in place, such as the length of time customers could spend in-store.
“Caution is advised when making any year-on-year comparisons between some months during the period of this data collection, due to differing operating circumstances between 2020 and 2022,” the Commission explained.
?16.??Michigan regulator votes to extend Detroit casino licenses
The Michigan Gaming Control Board has voted to renew the licenses of all three commercial casinos in the state.
MGM Grand, MotorCity Casino and Hollywood Casino Greektown – all located in Detroit – will be permitted to operate for another year with the new licenses, after all receiving unanimous approval from commissioners.
“A casino license is a privilege granted by the state of Michigan,” said Henry Williams, MGCB executive director. “Board members and agency staff take seriously our responsibilities when reviewing this privilege each year as required by law.”
All three licensees will continue to be taxed at 18% of adjusted gross receipts. The state receives 8.1% of revenue, and the city of Detroit receives 9.9%.
In addition, the regulator announced the three casinos’ revenue totals for the month of July, combining for $107.2m in total revenue. This was down by 8.3% from July 2021.
?17.??Flutter funds RGC Canada project to improve North American advertising standards
Flutter Entertainment has funded an independent research grant for Canada’s Responsible Gambling Council (RGC) that will provide ‘first-of-a-kind baseline research’ for North American gambling stakeholders on marketing and advertising standards.
The research will be led by RGC’s CABP – Centre for the Advancement of Best Practices (CABP) unit, tasked with examining the current practices, policies, standards and safeguards applied across North America’s fragmented gambling landscape.
The RGC’s research project comes at a critical juncture for North American gambling,?following April’s launch of Ontario’s newly regulated online gambling regime and as US consumer watchdogs question the volume of online betting adverts displayed to national audiences.
“This is an opportunity to provide cutting edge thought leadership to the industry,” said George Sweny, Vice President of Regulatory Affairs, Flutter International.
“This foundational research will help us all make necessary strides towards bridging the gap between best and better practices in an area of significant importance. Leading progress is one of the key pillars of our global Play Well strategy, and we are delighted to be working with the RGC to support this important research.”
The multi-phase project will examine evidence and undertake research to provide effective guidance on best practices for improving marketing and advertising standards.
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2 年Happy Belated Birthday Nico
North America's Commercial Strategy and Development at Evolution
2 年Happy birthday, Nico Jansen ??