iGaming Wrap-Up of CW 07-08 2024
#iGaming News of the week
0.?????? Apple debuts new sports app with DraftKings integrations
Apple launched a new betting app, Apple Sports, on Wednesday that’s designed to give users a simple place to view scores, stats, standings, and sports betting odds. The launch of the app comes shortly before the start of the MLS and MLB seasons, as Apple offers viewing options for both leagues via Apple TV.
“We created Apple Sports to give sports fans what they want — an app that delivers incredibly fast access to scores and stats,” Eddy Cue, Apple’s senior vice president of services, said in a press release. “Apple Sports is available for free in the App Store, and makes it easy for users to stay up to date with their favorite teams and leagues.”
Apple’s app offers features similar to ESPN’s. Users can select their favorite teams and sports leagues, easily viewing scores and league standings in the process.
Apple Sports pulls DraftKings odds into its app, a DraftKings spokesperson confirmed with Sports Handle. While odds are available to view for informational purposes, there’s no DraftKings branding. Users can even turn off betting odds in their settings if they’re not interested in seeing that information.
Additionally, users cannot click on the betting odds and be taken to a betting app.
#Breaking News
1.?????? DraftKings to acquire Jackpocket for $750m, expanding into digital lottery market
DraftKings has announced its intention to acquire Jackpocket, a digital lottery app in the US, for an estimated $750m.
Through this acquisition, DraftKings aims to enter the US lottery market while increasing its position in Sportsbook and iGaming by capitalising on Jackpocket's customer acquisition engine and cross-selling capabilities.
DraftKings Co-Founder and CEO Jason Robins said: “We are very excited to enter the rapidly growing US digital lottery vertical with our acquisition of Jackpocket.
"This transaction will create significant value for DraftKings not only by giving our customers another differentiated product to enjoy but also by improving our overall marketing efficiency similar to how our daily fantasy sports database created an advantage for DraftKings in OSB and iGaming.”
Under the terms of the merger agreement, Jackpocket shareholders will receive approximately $412.5m in cash and approximately $337.5m in DraftKings' Class A common stock, subject to adjustments and a collar mechanism based on DraftKings' stock price.
2.?????? FanDuel acquires iGaming industry start-up BeyondPlay
Flutter Entertainment-owned FanDuel has acquired iGaming industry start-up BeyondPlay for an undisclosed sum.
Following the acquisition, BeyondPlay will integrate into FanDuel Casino.
Founded in 2021 by CEO Karolina Pelc, BeyondPlay offers two main products: a jackpot management system that enables flexible and tailored jackpot campaigns, and a multiplayer software allowing multiple users to engage in shared casino game sessions, pooling their stakes for a collective entertainment experience.
BeyondPlay’s client roster includes well-known brands like LeoVegas, Casumo, and ComeOn, and the company holds gambling licences in Ontario, the UK and Malta.
“As a founder, witnessing the journey of our start-up from its humble beginnings to becoming part of the world’s leading online sports betting and iGaming company is an incredibly gratifying experience,” said BeyondPlay CEO Pelc.
“This acquisition validates the hard work and dedication of our team and the vision behind our products. We are excited to join forces with FanDuel Casino to amplify the impact of our technology on a global scale.
3.?????? Kambi Stock Pounded As Outgoing CEO ‘Not Very Pleased’ With Results
Kambi saw its market cap tumble more than 20% Wednesday after announcing what its CEO called out as disappointing results.
Revenue was down 23% for the quarter with EBITDA down 38%, according to the fourth quarter earnings report. The platform provider to multiple operators including BetRivers faced a tough comparison period in the fourth quarter, as 2022 included Penn‘s $12.5 million early termination fee as well as the World Cup.
“We are not very pleased with the revenue numbers, as I said,” outgoing CEO Kristian Nylén said. “But now I think we are in a very good spot to move forward. And after 2024, I think we will be in a much, much better spot.”
The stock closed at a 52-week low of 100.7 Swedish krona, down 21.4% from Tuesday‘s close.. Volume was more than 1.1 million, more than 14 times its average daily volume of around 80,000.
4.?????? Better Collective Q4 revenue at €85m; EBITDA down 16%
Affilaite Better Collective has released its financial results for Q4 and the 2023 financial year. For Q4, the company made €85m ($91.9m) (down 7%), with recurring revenue up 15% year-on-year at €47m – 56% of total group revenue. However, EBITDA before special items was down, at €30m for a 16% decrease.?
The cause of the decreased EBITDA, according to the company, was the changing market towards revenue share contracts in the US and the tough comparison with Ohio's pre-registration for launch in Q4 2022.
Despite this, cash flow grew significantly, up to €38m from Q4 2022’s €21m.?
New depositing customers (NDC) were down 17% for Q4, at just over 483,000. Of these NDCs, 80% were sent via revenue-share contracts, with 300,000 of the total NDCs sent during the World Cup 2022. Furthermore, of the total NDCs 115,000 were sent in the US, with 55% under revenue share contracts. This reflects NDC growth of 66% in North America.
5.?????? Interactive growth pushes revenue up 8.6% to $2.45bn at Bally’s in 2023
Bally’s Corporation said growth within its interactive business helped drive revenue up 8.6% to $2.45bn (￡1.94bn/€2.26bn) in 2023, while the operator was also able to reduce net loss for the year.
Revenue was higher in all divisions at Bally’s in 2023. While Casino and Resorts remained its primary source of revenue, interactive activities across North American and international markets generated more revenue.
The past year saw several major developments for Bally’s. Early in 2023, Bally’s announced it was cutting 15% of its North American interactive workforce to reduce cut costs. Then came the news that Diamond Sports Group, operator of the Bally’s branded TV sports networks, was close to bankruptcy.
However, as the year progressed, the situation brightened for Bally’s, under the leadership of new CEO Robeson Reeves, who joined in March.
6.?????? Brazil: Manssur resignation rocks final steps of Bets launch
The Ministry of Finance of Brazil has confirmed that José Francisco Manssur has resigned from his post and will no longer participate in the final procedures of the forthcoming launch of Brazil’s federal sports betting marketplace.
Manssur served as a principal adviser to the government in drafting Bill No. 3,626/2023, which forms the legislative framework for Brazil to launch its federal sports betting marketplace, locally referred to as ‘Bets’.
Yesterday, the Ministry of Finance published a brief notice announcing Manssur’s departure from his post, declaring: “Manssur was at the forefront of drafting the set of rules for regulating the fixed-odd betting sector in Brazil. The process was conducted throughout 2023 and concluded in December, after the approval of the new legislation by the National Congress and the sanction by the Presidency of the Republic.”
However, Brazilian news sources reported that Manssur resigned with immediate effect due to an acrimonious dispute with President Luiz Inácio Lula da Silva’s government, over the final measures of the Bets Regime coming into law.
Manssur is reported to have stood against the plans of Centr?o, a powerful bloc of congress which seeks to influence how Brazil will establish its Secretaria de Prêmios e Apostas (SPA) – ‘Secretariat of Prizes and Betting’.
7.?????? Betsson secures Netherlands re-entry with €27.5m acquisition
Betsson is set to re-enter the Netherlands after acquiring a Dutch-licensed B2B and B2C iGaming company in a deal worth €27.5m.
Holland Gaming Technology Ltd is an online gambling operator with a B2C licence in the Netherlands, while Holland Power Gaming B.V. is an online game studio which develops content for the B2C operation.
Betsson announced today (19 February) that it has agreed to acquire both businesses for €27.5m on a cash-free, debt-free basis.
The acquisition will be financed with Betsson’s own existing liquid assets, the company said.
Of the total consideration, €16m will be paid upfront upon closing, with further deferred payments of €9m and €2.5m to be paid after six and 12 months, respectively.
The acquisition remains subject to post-closing approval by the Netherlands Gambling Authority (KSA).
#US / Canada
8.?????? US gaming revenue tops $66.5bn for third consecutive record year
Commercial gaming revenue reached an annual record of $66.5bn in 2023, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker. The total surpasses 2022’s $60.5bn by 10 per cent, marking the industry’s third year of growth.
Quarterly revenue was $17.4bn in Q4 2023. December was the highest-grossing month with $6.2bn.
AGA president and CEO Bill Miller said: “From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high. Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market—both of which the AGA is committed to lead on throughout 2024.”
Online gaming made up nearly one-quarter (24.7 per cent) of commercial gaming revenue in 2023. Brick-and-mortar casino slots and table games grossed $49.4bn, up 3.3 per cent over 2022, with 19 out of 27 traditional gaming markets seeing record annual revenue.
9.?????? Caesars buying Wynn’s Michigan online casino business
Caesars Entertainment has announced an agreement to acquire the operations of WynnBET's Michigan iGaming business and a long-term extension of iGaming market access rights with the Sault Ste. Marie Tribe of Chippewa Indians. The acquisition allows Caesars access to the Sault Tribe’s iGaming skins, enabling it to operate additional digital brands in Michigan.
Existing WynnBET customers will be transitioned to Caesars’ Michigan iGaming platform, pending regulatory approvals. Wynn and Caesars will receive non-cash consideration, including extinguishment, reductions, and assignment of certain contractual obligations related to both parties’ businesses.
Matt Sunderland, SVP & Chief iGaming Officer for Caesars Entertainment, said: "As we continue to grow our iGaming franchise, the assumption of WynnBET’s iGaming operations in Michigan allows us to tap into a significant market and customer base, providing a crucial step forward in growing our digital products and offering players more ways to play."
10.?? Evolution cleared of alleged misconduct by New Jersey regulator
The New Jersey Division of Gaming Enforcement (NJDGE) has officially closed its investigation into Evolution AB following allegations of misconduct reported in November 2021.
Upon receiving a report from an unidentified firm detailing misconduct allegations against Evolution, the NJDGE initiated a comprehensive investigation to ascertain the validity of the claims.
Ultimately, the regulatory body found no evidence to suggest that Evolution had sanctioned, promoted, permitted or materially benefited from content offered by operators in any market considered a prohibited jurisdiction by the NJDGE. As such, the NJDGE informed Evolution that no further action is to be taken.
Regardless, Evolution also conducted its own internal review in response to the allegations. While asserting the sufficiency of its due diligence and compliance processes, the company opted to take the opportunity to enhance these procedures further.
11.?? Alabama gambling bills head to State Senate for approval
Two bills legalising lottery, casino and sports betting have been passed to Alabama’s State Senate for consideration after being approved in the state’s House of Representatives.
House Bill 151 and House Bill 152, if approved by the senate, would pave the way for the introduction of a state lottery, limited casino gambling and sports betting, and introduce new rules including tax rates to govern the activities. HB151 was passed last week by 70 votes in favour against 32 in opposition, while HB152 was passed by 67 votes to 31.
“We heard you loud and clear from the polling, and we’re giving the citizens the right to decide what they want in the state as it relates to gaming,” said Republican Alabama State Representative Chris Blackshear, who sponsored the bill, after it was approved.
12.?? Michigan igaming revenue reaches record $181.9m in January
The year started on solid footing for Michigan online casinos after the iGaming market in the Great Lakes State set a new monthly revenue record, after the 15 licensed operators generated $181.9 million in gross receipts for January 2024, according to the report from the Michigan Gaming Control Board.
The combined revenue of Michigan casinos online for January surpassed the previous record by a margin of 0.3%, as in December 2023, the market hit $181.4 million in total revenue, the highest amount up to that point. There is no change at the top, with BetMGM Casino retaining its leadership role with $48.3 million, equal to a 26% market share.
January marks the third consecutive month with a new monthly revenue record for the Wolverine State. Although the growth rate of 0.3% might appear small, it's worth remembering that in January 2023, this market produced $153.7 million in revenue. The difference between last year's January and the first month of 2024 shows an 18.3% increase in revenue, clearly revealing the market's upward trajectory.??
13.?? Pennsylvania gaming revenue reaches $477.1m in January
Pennsylvania’s combined revenue from regulated gaming and fantasy contests reached $477m in January That’s a 2.7 per cent increase compared to January 2023. Retail slots revenue was $179.5m, while retail table games was $72.6m.
The PGCB reported a sports betting handle of $858.1m: $808m came from online operators and $49.9m from retail facilities. Gross gaming revenue from sports wagering was $97.7m. Tax revenue generated collectively through all forms of gaming and fantasy contests was $195.2m.
14.?? New Jersey igaming revenue reaches record high
New Jersey has revealed that igaming revenue smashed records in January while sports betting revenue and handle also reached new monthly records.
According to the New Jersey Division of Gaming Enforcement, total gambling revenue hit $559.1m which is an increase of 28% compared to revenue of $436.1m year-on-year.
Land-based casino revenue contributed the greatest amount to the total gambling revenue despite the fact that casino revenue decreased by 3.1% compared to January 2023. Total revenue was $205m down from $211.7m in January 2023.
This drop was driven by a fall in revenue generated from physical slots which decreased 5.8% year-on-year to $143m. Land-based table game revenue did see a slight increase, 3.8% year-on-year, however this was not enough to prevent the slip in revenue.
In comparison, casinos and their partners reported an igaming win of $183.3m which is a new monthly record. This is an increase of 19.9% compared to the $152.9m reported in January 2023.
#M&A & Finance
15.?? Lottery.com unveils “revolutionary vision” following SportLocker acquisition
Lottery technology broker Lottery.com has announced a deal to acquire sports-streaming site SportLocker and rebrand it as Sports.com .
Lottery.com said the strategic acquisition, financial details of which were not revealed, will see the rebrand take place immediately.
SportLocker, which has links to Saudi Arabia’s burgeoning sports programme, previously announced plans for club acquisition, sponsorship and media partnership programmes – focussed on UK football and the US Major Soccer League (MSL).
Austin-based Lottery.com said in a statement that it would acquire S&MI, the owner of SportLocker, in a stock-based deal. The deal comes after announcements in recent days relating to the issuing of 20m shares (totalling $100m) and “a substantial expansion” in fundraising. The latter includes commitments from new and existing investors rising to $5m from $1m.
16.?? Aristocrat invests in RegTech firm Kinectify in new funding round
RegTech specialist Kinectify has announced an undisclosed new investment from Aristocrat, as well as a new board member to provide “strategic benefits” to the business.
Former Aristocrat chief supply officer Jason Walbridge (pictured) will join Kinectify’s board as the Australian gaming provider’s representative.
The AML and compliance gaming software provider said his appointment will “enhance the strategic benefits” between the two businesses.
Other investors have joined the round to contribute additional capital. These include Acies Investments, the Eastern Band of the Cherokee Indians (EBCI), Eilers & Krejcik Gaming and former Caesars CEO Mark Frissora.
Since 2022, Walbridge has held an advisory role with Aristocrat centred on the firm’s Anaxi real money gaming business.
17.?? FDJ clears Swedish financial audit to proceed with Kindred €2.6bn buyout
Groupe Fran?aise des Jeux (Groupe FDJ) has announced that it has received regulatory approval by Finansinspektionen, Sweden’s Financial Supervisory Authority, to proceed with its offer to acquire Kindred Group Plc.
The Paris Euronext gambling group secures its Swedish market’s financial authorisation to formally launch its SEK 130 (€11.40) per share offer to acquire Stockholm-listed Kindred Group, a deal announced on 22 January.
Finansinspektionen’s approval grants FDJ a 39-week period as of 20 February to complete its all-cash buyout of Kindred Group, putting forward a deal valued at approximately €2.6bn.
Dealmakers informed that “the completion of the tender offer remains subject to regulatory authorisations and FDJ’s acquisition of at least 90% of Kindred’s capital.”
As previously reported, FDJ’s approach has been “unanimously recommended by Kindred’s Board of Directors” and is favoured by “five key shareholders holding a combined 27.9% of the capital irrevocably support FDJ’s deal and terms”.
#Legal & Regulation:
18.?? UK Proposes ￡2-5 Digital Slots Limit
The UK government continues to reform its gambling laws, in line with the white paper, which was published almost a year ago. One of the new measures to protect the players is the digital slot machine limit, which would limit how much customers can spend per spin. According to The Guardian, this change could potentially cost the industry hundreds of millions of pounds.
The new limit is set to be announced on Friday and will prevent young adults (under the age of 25) from spending more than ￡2 per spin. Older players, on the other hand, will have a higher limit of ￡5 per spin.
Pro-gambling parties and industry specialists told The Guardian that the DCMS should introduce more details shortly. However, many are certain that it would reduce the revenues players take from digital slots.
Currently, there is no limit on how much players can wager by spin. As a result, the industry rakes in more than ￡3 billion a year. However, since the digital slots vertical also carries one of the highest rates of addiction, the British government believes that player protection should come first.
19.?? GambleAware research suggests public support for UK affordability checks
Ipsos, working with GambleAware, surveyed 4,170 people aged 18 and 75 to harness public opinion on affordability checks. These checks are one of several proposals to come out of the government’s white paper, published in April last year.
It is proposed players who lose ￡1,000 within 24 hours, or ￡2,000 over 90 days, would be subject to checks. Operators would also perform “passive” checks on players with a net loss beyond ￡125 each month or ￡500 per year.
The proposals have caused much debate in the industry, with arguments for and against such checks. GambleAware has declared its support for such checks and has now published research suggesting the public also backs the proposal.
Of those surveyed, 61% would support “light touch” financial vulnerability checks to identify customers who may be particularly vulnerable. Some 57% also backed “enhanced” checks to be conducted at unusually high loss levels where the risks are greater.
20.?? Cura?ao finance minister defends issuing first licence before passing LOK
Cura?ao’s Minister of Finance, Javier Silvania, defended the decision to provide Rhino Entertainment Group with the region’s first direct license amid LOK-related concerns. Some critiqued the licensing of the company as it precedes the formalization of the territory’s new gambling laws.
For reference, Cura?ao is currently discussing the National Ordinance for Games of Chance (LOK), a measure that seeks to improve the gambling industry’s standards through direct licensing and better regulation.
While proponents of the measure have highlighted its benefits, opponents are skeptical of certain points. The Dutch government is also conducting an investigation to see if the LOK complies with an earlier deal.
Because of criticism from parliament members, the Cura?ao Bar Association and the Advisory Council behind the legislation, the measure is currently being amended. Silvania himself confirmed that the objections of parliament members have been taken into mind and that the LOK will be adjusted where needed.
21.?? Peru seeks new president for Directorate of Gambling ahead of 2024 shake-up
The government of Peru seeks a new President to lead the General Directorate of Casino Games and Slot Machines (DGJCMT).
The development comes following the removal of incumbent Eduardo Sevilla Echevarría, whose tenure was terminated yesterday by MINCETUR, Peru’s Ministry of Foreign Trade and Tourism.
MINCETUR issued an update signed by Minister of Trade Juan Carlos Mathews Salazar detailing that the ministry “concludes the appointment of Mr. Eduardo Alfonso Sevilla Echevarría, in the position of General Director of the General Directorate of Casino Games and Slot Machines, under the Vice Ministry of Tourism of the Ministry of Foreign Trade and Tourism.”
No reasons were provided for the dismissal of Echevarría, who had led Peru’s Gambling Directorate since 2022, succeeding the long-standing President Manuel San Roman, DGJCMT leader since 2015.
22.?? Cyprus launches self-exclusion service for gambling and betting activity
Cyprus has launched the National Self-Exclusion Platform (PSC).
This was developed and managed by the National Betting Authority as part of the country’s Safer Gambling Strategy 2022-2025. It will allow players to exclude themselves, either for a set period or indefinitely, depending on their individual needs. While they will be banned from continuing any betting activity, it will allow the player to log into the account and withdraw any funds that are already deposited with the operator.
Ioanna Fiakkou, National Betting Authority President, said: “It is a powerful tool for every player, aiming to promote healthy betting behaviour and the protection of vulnerable groups.
Thrilled to see the dynamic shifts and innovations within the iGaming industry! As Steve Jobs beautifully put it - The ones who are crazy enough to think they can change the world, are the ones who do. ???? Here's to all the companies making bold moves and carving new paths in digital gaming! ??#Innovation #ChangeMakers #iGamingRevolution