iGaming Weekly Wrap-Up #34
#Breaking News
1.??????Ontario reports $3bn handle in initial iGaming report
Ontario recorded more than $3bn in total wagers in its first three months of regulated commercial iGaming, online sports betting and digital real money poker, according to a report released Tuesday.
The $3bn wagered, roughly $4bn Canadian, covered all wagers placed between the province’s April 4 commercial launch date through June 30. It did not include free bets or other promotions.
This generated nearly $124m US ($162m Canadian) in total gaming revenue, according to iGaming Ontario. This included total cash wagers, including rake fees, tournament fees and other fees, across all live operators from April 4 to June 30, 2022, minus player winnings, and does not take into account operating costs or other liabilities.
The report showed nearly 500,000 separate accounts, not individual players, were created during the first three months of legal commercial iGaming. The average monthly spend per account was roughly $86 ($113 Canadian).
There were 31 regulated commercial gaming sites live during the reporting period across 18 separate operators. This included companies such as Caesars, FanDuel and BetMGM, which operated both online sportsbooks and iCasinos.
“Our aim is to be the best gaming jurisdiction in the world and these positive results are an early sign that we’re on our way,” said iGaming Ontario board chair Dave Forestell in a statement. “With a competitive revenue share rate and low barriers to entry, Ontario is an attractive iGaming market with a strong player base.”
2.??????FanDuel to launch new television network and streaming platform
FanDuel, the US-based fantasy sports firm, has announced the launch of a new linear cable television network and streaming platform.
Both the FanDuel TV channel and FanDuel+ streaming service will go live in September and, the company says, become “the first linear and digital network dedicated to sports betting content.”
Fanduel claims its TV and streaming offering will “deliver more live sports programming than any other network in America.”
FanDuel+ will be free for existing FanDuel customers with accounts on any of its sportsbook, casino, horse racing, or daily fantasy platforms.
Mike Raffensperger, FanDuel's chief commercial officer, said: "FanDuel TV is the first network designed from the ground up to be watched by viewers with their phone in hand.
"We intend for FanDuel TV to sit at the intersection of live sports and interactive content. Our goal is to provide fans compelling programming to watch and wager on in tandem with our mobile app."
In terms of live sports, FanDuel TV and FanDuel+ will air more than 3,000 hours of content including international basketball league action from the National Basketball League (NBL) in Australia, the Chinese Basketball League, as well as the French and German pro leagues as part of a licensing agreement with Sportradar.
3.??????IGT and DoubleDown Interactive agree to pay $415m to settle social gaming lawsuit
International Game Technology (IGT) announced Monday an agreement in principle to settle the Benson v. DoubleDown Interactive lawsuit and associated proceedings. IGT completed the sale of DoubleDown Interactive –operator of social gaming business DoubleDown Casino– to DoubleU Diamond, a subsidiary of DoubleDown, in June 2017.
The agreement in principle to settle the suit, entered into by certain subsidiaries of IGT and Double Down, remains contingent on final court approval by the US Federal District Court for the Western District of Washington. Under the terms, a total of $415 million will be paid into a settlement fund of which IGT will contribute $269.7 million, and DDI will contribute $145.2 million.
All members of the nationwide settlement class who do not exclude themselves will release all claims relating to the subject matter of the lawsuit. And subject to final court approval of the settlement, IGT and DoubleDown have also resolved all indemnification and other claims between themselves and their respective subsidiaries relating to the matter.
As a result of the settlement agreement, IGT will accrue a $119.75 million non-operating expense in the third quarter related to the incremental loss associated with the Benson matters and related claims between IGT and DoubleDown, a press release explains. A total of $150 million was accrued in the second quarter.
4.??????California cardroom group targets “big gaming” in new media campaign
An organisation representing small- and medium-sized California cardrooms has launched a media campaign to “expose special interests.”
The aptly named Communities for California Cardrooms (CCC) is a non-profit organisation that claims to represent local businesses.
To this end, the group has released a video in which it targets “big gaming,” who allegedly slipped a “job-killing moratorium on local community cardrooms into the final hours of this year’s legislative session.”
California cardrooms are currently beholden to a moratorium limiting their expansion. However, this is set to expire on 31 December, but according to CCC, certain parties are seeking an extension.
This could, the group continued, hurt California’s local cardroom industry. Clarke Rosa, CCC President, said: “Any conversation centred around extending the moratorium on the expansion of gambling needs to allow more flexibility for local governments so that they can amend their ordinances to add additional tables.
“A moratorium without reasonable table expansion, creates a great inequity among local governments who have active gaming ordinances.”
5.??????Entain faces more legal hurdles as High Court case launched against Ladbrokes
Two weeks after being hit with the largest regulatory penalty in UK betting history, Entain is now back under the legal spotlight, as reported by The Times.
The paper reports that a high-staking bettor named Simon Rose placed wagers with Ladbrokes in the UK and UAE between 2015 and May 2016, and is now lodging a High Court claim against the operator.
Specifically, Rose has accused Ladbrokes of failing to carry out source of funds checks or monitor his betting activity, having placed a total of ￡1.8m and losing ￡231,000 over seven months, with affordability checks only conducted after a loss of ￡100,000.
Despite being on take-home pay of ￡3,000 a month, Rose bet an average of ￡18,000 a day when active – the case therefore argues that had Ladbrokes carried out appropriate affordability checks, he would not have been allowed to wager so highly.
Additionally, Rose claims that he was able to increase his weekly deposit limit from ￡1,000 to ￡20,000 a day by April 2016, before self-excluding from the operator the following month.
Ladbrokes has denied violating any licence conditions, whilst Entain has stressed that the incidents in question occurred two years prior to its acquisition of the Ladbrokes Coral group in 2017.
“We would note that the claims in question took place two years before we acquired Ladbrokes,” the FTSE100 firm informed The Times.
#US / Canada
6.??????New Jersey court kills state law giving millions in tax breaks to Atlantic City casinos calling it unconstitutional
A Superior Court judge in New Jersey killed Monday a state law that granted Atlantic City’s casinos tens of millions of dollars in tax breaks, saying the measure “was passed on dubious grounds” and that it “violated the state Constitution."
Governor Phil Murphy and the state’s legislative leaders took a hit through this ruling, after having fast-tracked the legislation through the Legislature last year. This move also has a direct consequence on the gaming industry, which had argued the bill was needed because it was struggling amid the COVID-19 pandemic.
The controversial law proposed changes to a local taxing program known as PILOT, or “payment in lieu of property taxes”. Since 2016, instead of paying property taxes, each casino has paid a share of an industry-wide assessment that was distributed to Atlantic City, its school district and the county to fund various operations. The number was calculated based on the prior year’s total gaming revenue.
7.??????Prophet launches first US regulated sports betting exchange
The first sports betting exchange in the US launched Monday in New Jersey, as Prophet Exchange officially rolled out its app to Garden State gamblers.
Prophet Exchange COO and Co-Founder Jake Benzaquen (left) stands with former New York Giants receiver and current Prophet Exchange strategic partner and advisor Victor Cruz (center), and cofounder and CEO Dean Sisun in an undated photo. On Monday, Prophet Exchange went live in New Jersey, with Cruz placing the first wagers that were accepted on the exchange.
Former New York Giants standout receiver Victor Cruz placed the first trades on the exchange, according to a company release. Cruz placed $100 bets on his old team getting 5.5 points in its season opener Sept. 11 against the Tennessee Titans. That was an even money bet. He also made a $100 wager through the exchange on the Giants moneyline – or straight up – getting them at +230.
In a sports betting exchange, bettors do not wager with a sportsbook. Instead, they are paired with corresponding bettors who are willing and able to take the other side of the opportunities.
Cruz, who came on as a strategic partner and advisor to company leaders last November, called Prophet Exchange an industry innovator.
“Prophet Exchange is the sports betting platform of the future,” he said. “It was great to place a bet directly with other users on the exchange without having to factor in lines that oddsmakers chose.
8.??????Kansas Sports Betting Launches 1st of September
Bettors, the wait for Kansas sports betting is almost over! The four state-run casinos can begin taking in-person and mobile wagers on Sept. 1 during a "soft launch," with an official launch date of Sept. 8.
Kansas Lottery Executive Director Stephen Durrell said there will be a "soft opening" at 12 pm CT on Sept. 1, which will allow the state to work out bugs and make sure things are running smoothly ahead of the full launch. There are no restrictions on how many people can bet during the soft launch.
BetMGM Kansas, FanDuel Kansas, DraftKings Kansas, Caesars Kansas and Barstool Kansas and PointsBet Kansas will be ready to take bets on Day One. There could be others available in time the "official launch" on Sept. 8, which is when the Super Bowl champion Rams kick off the 2022 NFL season by hosting the Buffalo Bills.
Retail betting will be available at FanDuel Kansas (Kansas Star Casino in Mulvane) and at Barstool Sportsbook at Hollywood Casino (in Kansas City). The others (Boot Hill Casino and Resort in Dodge City - DraftKings), Kansas Crossing Casino in Pittsburg (Caesars, BetMGM) will offer mobile betting immediately and retail betting at a later date.
9.??????Massachusetts sportsbooks take first step toward launch
A dozen sports betting stakeholders have already expressed interest in the Massachusetts market with even more expected to apply ahead of one of the most anticipated new legal wagering states.
DraftKings, WynnBet and PointsBet are among the leading US sports betting operators that have already formally expressed interest in a Massachusetts sports betting license, according to a document released by state regulators.
A complete list is expected later this week, though it remains to be seen which companies will apply and if those who don’t submit a request will still have potential market access.
The notice of intent to the Massachusetts Gaming Commission is not a binding decision but it shines a spotlight on how the market will shape out. Along with the aforementioned market leaders are a host of upcoming companies hoping to earn one of the more coveted sports betting licenses in the nation.
That includes Betr, the micro-betting startup backed by celebrity influencer and amateur boxer Jake Paul. Massachusetts is the second state Betr has applied for market access following Ohio, which is expected to award its first licenses later this year.
10.??Delaware online gaming revenue reaches new record in July
领英推荐
According to the figures released by the Delaware Lottery, the state’s online gaming revenue reached $1.25m in July, beating the previous monthly high of $1.22m set last April. Igaming revenue rose 58 per cent year-on-year and 12.1 per cent from the $1.1m registered in June this year.
Online video lottery accounted for $1m of revenue for July, with table games at $165,378 and poker rake and fees $43,944. The igaming handle was $39.4m, also a record and an increase of 58 per cent compared to July 2021. Players spent $26.8m on video lottery and $12.6m on table games.?
Delaware Park was the leading operator in the igaming sector with $377,753 in revenue off $16.2m in bets, ahead of Bally’s Dover on $377,753 from $12.9m and Harrington Raceway with $332,904 off $9.8m in wagers. Delaware Park registered an igaming handle increase of 87 per cent compared to July 2021.
11.??Nevada reports $1.31bn gaming win for July
Nevada’s non-restricted gaming licensees have reported a total gaming win of $1.31bn for the month of July 2022.
As reported by the Nevada Gaming Control Board, the total represents a 3% decline from July 2021, when licensees reported a gaming win of $1.35bn.
Clark Country represented the majority of total revenue at $1.12bn, down 3% from the prior-year period, when revenue was $1.16bn.
Within Clark County, Las Vegas Strip revenue was down 3% year-on-year to $773.3m, with Downtown and North Las Vegas revenue amounting to $60m and $24.5m respectively, year-on-year declines of 16% and 4% respectively.
Laughlin and Boulder Strip reported revenue totals of $42.8m and $72.7m respectively. The former was equal when compared to the prior-year period, with the latter increasing by 4%. Mesquite was also equal when compared to the prior-year period at $14.1m.
Washoe County revenue totalled $94.7m, down 5% from the prior-year period, while South Lake Tahoe reported revenue of $31.8m, a 1% year-on-year decline. Carson Valley Area revenue also declined year-on-year, down 3% to $11.7m.
#M&A & Finance
12.??LeoVegas shareholders unanimously approve MGM buyout
MGM Resorts has notified this afternoon that its public tender offer has been accepted by 96% of LeoVegas AB shareholders.??
Initiated on 2 May, the board of MGM proposed an SEK 61 (€5.90) cash-per-share takeover offer to acquire LeoVegas outright at a deal consideration of approximately $604m (€600m).
Securing LeoVegas investor approval, MGM governance announced that settlement of the share is expected to be initiated ‘on or around 7 September 2022’.
“The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide,” said MGM Resorts’ CEO & President Bill Hornbuckle.
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximize the full potential of our omnichannel strategy.”
Prior to the shareholder vote, MGM’s deal had been formerly recommended by LeoVegas co-founder and CEO Gustaf Hagman, alongside further senior investors representing 15% of the company’s outstanding shareholding.
The transaction sees MGM execute its first igaming-specific M&A outside of US shores, in which it deemed LeoVegas as imperative to its plans to establish a ‘globally-scaled and dominant’ online gambling business
13.??Emerging extreme sports data supplier ALT Sports Data secures $1.5m in first funding round
ALT Sports Data has announced the completion of its initial $1.5m Seed Round funding, led by Trinity West Ventures as well as featuring sports and technology industry veterans.
Based in San Diego, ALT Sports Data is a provider of exclusive, official sports trading and consumer data for action and alternative sports for the sports betting industry.
Through partnerships with sports betting executives, vendors, operators, and regulators, the provider states that it “leverages deep understanding and rooted relationships within action, endurance, and motorsports verticals, to authentically bring these two industries together”.
“The growth opportunity of the sports betting sector is exciting, and the team at ALT Sports Data has a proven track record of molding potential into successful businesses,” commented Frank Sciuto of Trinity West Ventures.
“We are excited to see the impact that ALT Sports Data and their partnerships will bring to sports betting and these alternative sports industries.”
The funding round concludes as ALT Sports Data continues to develop partnerships with sports properties across several verticals, most recently with multi-media platform Thrill One Sports and Entertainment.
14.??Vici and Century strike deal to acquire Maryland’s Rocky Gap Casino
Casino real estate investment trust Vici Properties has agreed a deal to acquire Rocky Gap Casino Resort in Maryland from Golden Entertainment, while Century Casinos will purchase the venue’s operations.
The aggregate price of the agreement is $260.0m (￡219.9m/€260.1m), with Vici to pay $203.9m to acquire an interest in the land and buildings associated with Rocky Gap, and Century the operating assets of the property for approximately $56.1m.
Upon closing of the deal, Rocky Gap will be added to the existing triple-net master lease agreement between Vici and Century, while annual rent will increase by $15.5m.
In addition, the term of the Century master lease will be extended so that upon closing of the transaction, the lease will have a full 15-year initial base term, with four five-year renewal options.
Located in Flintstone, Maryland, Rocky Gap is a full-service resort with over 25,000sq ft of gaming floor, 630 slot machines, 16 table games, 198 hotel rooms and five food and beverage venues, as well as an 18-hole golf course, a 5,000sq ft events centre, meeting spaces and a spa.
The property has recently invested $10m in improvements to its hotel, slot machines, restaurants and sports lounge, with potential to expand the casino and hotel.
Subject to regulatory approvals and closing conditions, the transaction is expected to close in mid-2023.
#Legal & Regulation:
15.??Albanian sports federations push for regulation of sports betting
Three and a half years ago, Albanian lawmakers decided that online gambling and sports betting were not welcome in the country. Sports industry insiders are now hoping they’ll have a change of heart and bring back legal sports betting.
Exit News reports that sports industry stakeholders are petitioning the Albanian government for change. They hope to convince the Balkan country to reverse its ban in order to attract new revenue.
The country’s legal world came to a halt in January 2019. All forms of online gaming stopped, as did land-based betting. Although Albania’s government maintains strict control over its internet access, illegal platforms have still been operational.
The stakeholders explained in their letter that, with the ban, the government is missing out on revenue that it desperately needs. They feel the decision to implement the prohibition moved the country in the wrong direction, and that it’s time to make things right.
16.??ATG charged SEK 2m by Swedish regulator for self-exclusion outage
Swedish gambling regulator Spelinspektionen has made a decision to reprimand and fine horse racing and sports betting operator AB Trav och Galopp (ATG) with the amount of SEK 2 million ($188,434) due to deficiencies in its self-exclusion option.
No Access to the Self-Exclusion Function on ATG Platforms During a Period of Two Weeks
On February 15, 2022, ATG informed Spelinspektionen that the self-exclusion functionality was not available to players that logged in via mobile bank ID during the period from January 13 to January 28 due to a technical issue. The issue appeared after an update of the log-in system of ATG’s platforms.
ATG discovered that there is a problem on January 27 and resolved the error on the next day – January 28.
It was not possible for ATG to find out how many players wanted to use the self-exclusion function during that period but were not able to use it due to the issue. However, the company has estimated that approximately 100 players may have been affected.
17.??Belgium applies capped license limit on betting businesses
The Belgian Gambling Commission (GC), has announced that the maximum number of online sports betting licences available in the country is being reduced to 30.
This compares with the previous status quo of 31 sports betting licences that could be awarded, meaning that the GC has brought down the total by one. This total had only been in force since last year, following a reduction from 34.
The news rules were passed via royal decree, and were published in the Belgian official gazette.
The announcement states that the new rules apply for the nine-year period from 31 July 2022 to 31 July 2031, and affect F1 licences, which allow for online betting.
The rule change happens in the context of a general tightening of gaming laws in Belgium. In July, a royal decree introduced €200 weekly deposit limits for online gambling, to apply to players of all verticals from 20 October.
18.??Unibet hit with $48k Ontario regulatory penalty for advertising breaches
Alleged ‘advertising infractions’ have landed Unibet a financial penalty of $48,000, charged by the Alcohol and Gaming Commission of Ontario (AGCO).
The sportsbook brand, a division of Stockholm-listed gambling group Kindred, has been active in the Ontario betting and gaming space since April, having secured entry shortly after market launch.
Like many European and US-based firms, Unibet has targeted an active presence in Ontario – Canada’s most populated province and the location of some major sports teams, such as NHL and MLB franchises.
“We expect all registered operators to achieve and maintain the high standards of responsible gambling, player protection, and game integrity,” commented Tom Mungham, Chief Executive Officer and Registrar of the AGCO.
“The AGCO will continue to monitor these gaming sites’ activities, and ensure they are meeting their obligations under Ontario’s Gaming Control Act and the Standards.”
Specifics of the regulatory penalty related to advertising, with the AGCO stating on its website that Unibet allegedly posted multiple brand betting inducements promoting ‘generous welcome offers’ between 19-22 May.