iGaming Wrap-Up of CW 13-14
#iGaming News of the week
0.??????Texas: Sports betting, casino gaming legislation clears House committee but still faces long odds in Senate
The Texas House State Affairs Committee has approved a pair of sports betting bills that could bring sports betting and casinos to the state. It’s the furthest the sports betting discussion has gone in Texas.
The committee voted 9-3 to approve the bills. HB 1942 and HJR 102, presented by representative Jeff Leach seek to legalise online sports betting through a constitutional amendment. HJR 155 from representative Charlie Geren and its enabling legislation HB 2843 from representative John Kuempel, seek to legalise sports betting and allow “destination resort” casinos in the state.
The bills and resolutions now head to the Calendars Committee, which determines which legislation makes it to the House floor. Even if approved by a two-thirds vote in both legislative chambers, the legislation still would require a statewide public vote on November 7. This would be necessary to amend the Texas Constitution, which prohibits most gambling.
Leach’s online sports betting bill is supported by the Texas Sports Betting Alliance, which is comprised of Texas professional sports franchises, sports leagues, race tracks, and sports betting platforms. The proposed laws will allow for the legalisation of online sports betting through Texas professional sports teams. If approved, WNBA, MLS, MLB, NBA, NFL, and NHL franchises in the state will be eligible for online sports betting licences.
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#Breaking News
1.??????MP suspended after offering to lobby for gambling industry in undercover sting
Conservative MP Scott Benton has been caught offering to leak confidential policy documents and lobby ministers on behalf of the gambling industry.
As revealed in an undercover exclusive investigation by The Times, the MP for Blackpool South violated the rules prohibiting MPs from lobbying in return for payment and disregarded new restrictions for politicians on providing parliamentary advice.
During the undercover sting, Benton believed he was liaising with two representatives from Tahr Partners, a fake British-Indian family office that feigned interest in investing in the betting and gaming sector.
During a meeting at a central London hotel last month, Benton detailed his willingness to leverage his position to aid their business and attempt to dilute proposed gambling reforms.
Specifically, he guaranteed that he could leak the forthcoming white paper on gambling reforms to the company at least 48 hours before its public release.
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2.??????Allwyn reportedly interested in Irish National Lottery bid
Allwyn Entertainment is assessing the ongoing situation in the Irish lottery space, having consolidated its position on the other side of the sea in the UK, according to some media reports.
Both the Financial Times and Irish Times have stated that the European lottery firm, which holds national lottery licences in numerous countries as well as casino operations, is eyeing up a buyout of Premier Lotteries Ireland (PLI).
According to the IT’s sources, Allwyn has been working with UBS bankers on a sale, targeting a 90% purchase of PLI from its current owner, the Ontario Teachers Pension Plan (OTTP).
The OTTP, one of the world’s most prominent investment organisations, has been considering a sale of the PLI as part of a wider re-evaluation of its stake in global lottery operations.
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3.??????UKGC fines TGP Europe ￡320k for AML white-label shortcomings
The fine reaffirms the regulator's commitment to ensuring operators offer their services in line with the regulations and protect the customers from gambling harmUK Gambling
The gambling regulator in the UK, the Gambling Commission, issued a new fine against an operator Wednesday. The regulatory watchdog said it imposed a fine against TGP Europe Limited, over breaches related to social responsibility, as well as anti-money laundering (AML). The popular operator is licensed in the UK and is currently in charge of 19 websites including BK8, Kaiyun, Fun88 and 12Bet, among others.
Upon probing the operations of TGP Europe, the Gambling Commission uncovered failures related to social responsibility and AML, which resulted in a ￡316,250 ($353,150) financial penalty against the operator. Besides the financial sanction, the regulator said TGP Europe will receive an official warning due to the uncovered breaches.
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4.??????Sportsbet CEO grilled in parliament over blocking winning customers
The head of Australia's largest online sports betting company and the chair of a parliamentary inquiry looking into internet gambling have shared a tense encounter in Canberra over whether successful gamblers get blocked from betting.
The inquiry has heard evidence that some companies will reduce maximum bets or block access entirely when gamblers are on a successful run.
House of Representatives committee chair Peta Murphy said she knew someone personally who had experienced this treatment, and pursued SportsBet and Entain, the parent company of Ladbrokes and Neds, on the issue at a hearing in Canberra on Tuesday.
SportsBet CEO Barni Evans said customers are blocked only in very narrow cases.
"If we believe that they're acting with information that the rest of the market doesn't have, and if their behaviour is distorting the market, which means that other customers' experience is affected, then we will take action," Mr Evans said.
In a terse to-and-fro, Mr Evans twice repeated a similar response, despite Ms Murphy's efforts to extract more information from him. Ms Murphy concluded by saying she would accept Mr Evans's evidence as a "yes, you stop people who are consistently winning from betting".
"That's your prerogative," Mr Evans replied.
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5.??????Evolution shareholders agree €80m Big Time Gaming earnout at AGM as board is re-elected
Shareholders in Evolution have approved an €80m earnout payment to Big Time Gaming (BTG) to be issued as a combination of cash and shares.
The resolution was one of several approved by shareholders at the live casino specialist’s 2023 annual general meeting (AGM) yesterday (4 April).
Evolution first agreed to acquire all shares in BTG in April 2021, under a deal which would see the acquired business receive total consideration of up to €450m.
On completion of the acquisition in June 2021, initial consideration of €220m was paid up-front to BTG’s owners, consisting of €80m in cash and the remainder in newly issued Evolution shares.
As part of the deal, further earnout payments based on BTG’s EBITDA for the years 2022/23 and 2023/24 would become payable in 2023 and 2024.
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6.??????Codere seeks €100m to soften liquidity pressures as CEOs depart
Grupo Codere has notified investors that it must raise €100m in capital as the heritage Spanish gambling firm “finds itself in a probable insolvency situation”. Codere published an updated ‘reorganisation and refinancing plan’, outlining that a request for €100m liquidity financing to be added to the board’s ongoing ‘2023-to-2027 recovery programme’.
Codere maintains that it has achieved the initial objectives of its recovery programme initiated in 2021, recovering its performance in the markets of Spain, Italy and Argentina.
However, the company still faces “liquidity pressures” due to various factors, including “higher cash repatriation expenses from Argentina, increased competition in Mexico and Panama, slower recovery in key markets, and required normalisation of legacy payments.”
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7.??????Entain buys 365scores for ￡120m in latest brand diversification
365scores offers editorial and social content, as well as scores & sports information with free-to-play sports-themed games. The company has over 15 million active users across the globe and is aiming to expand further.
Customers will have access to a wider selection of interactive content and experiences, thanks to the combination of 365scores' expertise in data-driven sports media content and Entain's global reach and market platform capabilities.
Entain recently marked the opening of its 100th Digi-Hub retail betting location in Muirhouse, Scotland.
Entain-owned companies Ladbrokes and Coral have made arrangements to accommodate the Digi-Hub, which Entain plans to extend to more than 200 locations by the end of 2024.
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#US / Canada
8.??????One year on: Ontario’s online operators generate C$1.4bn in combined revenue
Operators in Ontario’s regulated sports betting and iGaming sector generated C$1.4bn ($1.04bn) in revenue during the market’s first year post-launch, according to regulatory body iGaming Ontario.
Revenue was generated from some C$35.6bn in total wagers, and places the Canadian province among the top five iGaming jurisdictions in North America.
For reference, operators in New Jersey, the most established online gambling jurisdiction in the US, generated around $5.2bn in revenue during 2022, of which some $2.4bn came from iGaming and online and land-based sports betting.
GGR from New York’s regulated online sports betting market, meanwhile, totalled around $1.36bn in 2022.
Ontario’s regulated market boasts more than 40 licensed operators, with which some 1.6 million active player accounts have been registered since launch.
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9.??????Sports betting in Maine could start this fall, but providers have yet to apply
Sports betting in Maine is still at least six months from going live, but the head of the state’s gambling commission is feeling a sense of urgency as his agency continues to draft rules for how sports betting will operate here.
Milt Champion, executive director of the Gambling Control Unit, is urging sports betting providers interested in doing business in Maine, such as FanDuel and DraftKings, to begin applying for licenses with the state. He worries that if they wait too long, it could push back his estimate of when sports betting in the state will go live.
Since Maine posted provisional applications for the sports betting licenses on Feb. 14, no one has applied.
“The applications are out there, and I’d really like to see people that are going to do business in Maine start to fill out and reach out to us and communicate with us, and let’s get these applications in now rather than later,” Champion said. “All you’re going to do is prolong those start dates.”
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10.??Kentucky passes online and retail sports betting bill with potential 2023 launch
Sports betting in Kentucky could soon become a reality, with a launch late in 2023 or early 2024 looking possible. After a successful vote in the Kentucky State Senate on Mar. 28, the state is just a Governor's signature away from sports betting legislation going into law. Governor Andy Beshear has been a vocal supporter of Kentucky sportsbooks, and he will likely sign a bill.
HB 551 was pushed in the House by Representative Michael Meredith and in the Senate by Majority Leader Damon Thayer. Credit is being given to both as they positioned HB 551 better to pass than previous iterations of sports betting bills that have failed.
What is interesting about this bill is that, unlike previous versions, it dropped any poker options or daily fantasy sports. The bill still included sports betting licenses for all nine horse racing tracks in Kentucky. What was new was that the bill included three skins for each track when past bills only had one.
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11.??Virginia sports wagering declined by 15% during February
Sports wagering in Virginia declined 15% during February compared to January but was nearly 8% more than last year, according to the Virginia Lottery.
Betting topped $433.8 million during the month of February, ending a four-month stretch where betting topped $500 million. The lottery, which oversees sports betting and other gaming in Virginia reported gross gaming wagers during February 2022 was just under $402 million.
“Like many states with active sports betting markets, Virginia took a hit this February. Wagers were down about 15% and revenue dipped a little over 30%, despite the Super Bowl earlier in the month, according to BetVirginia.com analyst Dru James. “While this is not abnormal market behavior, the margin by which these markets have declined month-to-month has varied greatly. Even large, established markets like New York and New Jersey saw decreases in wagers close to or over 30%. Michigan saw a 50% decline in revenue from January to February.
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12.??Colorado sports betting handle hits $425.1m in February
Players in Colorado spent a total of $425.1m betting on sports during February, a decline on the same month in the previous year also down from January this year.
Betting handle for the month was 3.5% below the $440.5m wagered during February of last year and 22.3% lower than $547.2m in January 2023.
Of this total, $421.6m was wagered on sports online, with the remaining $3.5m attributed to betting at retail sportsbooks across Colorado.
In terms of gross gaming revenue, this amounted to $22.6m, which was 15.3% ahead of the $19.6m generated during February of last year but 36.3% lower than $35.5m in January 2023.
Of this total, $22.5m was attributed from wagering on sports online, with the remaining $49,945 attributed to retail betting.
#M&A & Finance
13.??Parsec Capital acquires Enteractive Media ahead of rebrand to GameChangerz Media
Special purpose acquisition company Parsec Capital Acquisitions has acquired a majority interest in affiliate business Enteractive Media.
Financial terms of the deal were not disclosed, but it was revealed that Parsec is expected to change its name to GameChangerz Media Inc and reapply for a listing on the Nasdaq Capital Market in the near future.
Parsec also intends to acquire the remaining Enteractive shares currently held by minority stockholders, which will result in Enteractive becoming a wholly owned subsidiary of Parsec.
In connection with the acquisition Patricia Trompeter, Edmund Moy, William Readdy, Daniel Elwell and Alec Burger all resigned as directors of Enteractive and were replaced by Kelly Kellner and Terry Debono.
https://igamingbusiness.com/strategy/ma/parsec-capital-acquires-majority-stake-in-enteractive-media/
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14.??Sparks: Century Casinos completes acquisition of Nugget Casino Resort's operations for $100M
Century Casinos has announced that it has completed its acquisition of the operations of the Nugget Casino Resort from Marnell Gaming for approximately $100m. It had already purchased 50 per cent of the membership interests in Smooth Bourbon, which owns the land and building on which the Nugget is located, a year ago.
The Nugget and Smooth Bourbon have a lease agreement for the land and building for an annual rent of $15m. Following the acquisition, Smooth Bourbon will become a consolidated subsidiary of Century.
The company financed the acquisition with funds previously borrowed from its existing credit agreement with Goldman Sachs USA.
Erwin Haitzmann and Peter Hoetzinger, co-chief executive officers of Century Casinos, said: “We are very excited to be expanding into Nevada. The Nugget is a great addition to our portfolio. We have plans to update the fa?ade, signage, slot floor and food and beverage venues of the Nugget. We look forward to working with the staff and community to continue the current success at this property into the future,” Haitzmann and Hoetzinger concluded.
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15.??Jamul Indian Village Development Corporation secures $515m funding
The Jamul Indian Village Development Corporation (JIVDC), owner and operator of Jamul Casino and a wholly-owned enterprise of the Jamul Indian Village of California, has closed on $515 million of Senior Secured Credit Facilities with a syndicate of commercial banks led by KeyBanc Capital Markets. The transaction comes as Jamul Casino begins building a new hotel connected to the property.
The other lenders included Western Alliance Bank, Nevada State Bank, U.S. Bank, PNC Bank, CIT Bank and Columbia State Bank. Proceeds from the Credit Facilities will be used to refinance existing debt, fund hotel construction and pay transaction-related fees and expenses.
This is the third significant financial transaction the JIVDC has completed in recent years, notes the Jamul Indian Village of California. The Tribe refinanced their property in 2021 and again 2022.
#Legal & Regulation:
16.??BeyondPlay gains UK licence to enter supplier market
B2B gaming streaming start-up BeyondPlay has been granted a supplier licence by the UK Gambling Commission (UKGC).
The securing of a Remote Casino Host and Gambling Software Licence from the UK Gambling Commission follows the granting of a B2B Critical Supply Licence from the Malta Gaming Authority in December 2022.
The UK licence marks a major milestone for BeyondPlay, which offers a portfolio of community-oriented products designed to turn solo game sessions into multiplayer entertainment experiences via shared streaming.
Further licence applications are underway for Ontario, Sweden and in various US states.
In response to the news, BeyondPlay founder and CEO Karolina Pelc wrote on LinkedIn: “Let’s get ourselves a UKGC licence, it can’t be that difficult! – said no one ever. This has been some time coming but we finally made it!”
17.??Allwyn and Vodafone pledge to ‘Digitally Transform’ the National Lottery
Allwyn UK and Vodafone have announced a partnership to revolutionise the technology infrastructure of the National Lottery for the benefit of consumers, retailers, and good causes.
A new National Lottery is set to launch on 1 February 2024, under the stewardship of Allwyn UK. Vodafone, which backed Allwyn’s bid as the ‘connectivity partner’, will power the collaboration to enhance the existing lottery communications system with a mobile-first approach, facilitating deployment, manageability, and retail sales growth.
The partnership will further focus on providing digital skills training for retailers across the UK, fulfilling Allwyn’s pledge to support high-street retailers throughout the ten-year license period.
Nick Gliddon, UK Business Director at Vodafone, said: “We understand the role that digital technology can play in transforming a business and improving customer experience. Since the lottery began, local shops have used pen and paper at lottery kiosks, and despite significant technological shifts, not much has changed.
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18.??FanDuel partners Spotify for content production
Flutter Entertainment-owned FanDuel Group has agreed a multi-year content production partnership with global streaming audio platform Spotify.
Under the new agreement, which builds on an existing partnership between the two parties, FanDuel will work with Spotify’s “The Ringer” website, podcast network and video production house to create content for FanDuel TV.
The Ringer will license select video podcasts to FanDuel TV including existing shows adapted for FanDuel TV and a number of new shows covering sports and competitions such as the National Basketball Association (NBA).
Content will also include shows dedicated to sports betting and wagering on a range of sports events.