iGaming Wrap-Up of CW 14-15 2024
#iGaming News of the week
0.?????? Italy settles on €7m licences for online gambling concessions
The government of Italy has settled on the new framework of licences for online gambling concessions.
A new structure for Italian online gambling concessions was published yesterday by Parliament’s Gazette as an amendment carried forward by the government’s ongoing ‘Reorganisation of Gambling‘ decree.
Recognised as a principal objective of the planned overhaul of Italian gambling laws, the government seeks to settle long-standing legal disputes between the ADM, Italy’s Customs and Monopolies Agency, and licensed operators on the conflicted terms of the renewal of licences.
A government intervention had suspended the ADM from terminating licences that were set to expire in 2023 and 2024.
Reaching a settlement, new online gambling concessions will be authorised by the end of 2024, with licences set to a nine-year limit and priced at €7m. The settlement sees Italian online gambling operators pay a premium of 35 times the previous price for online gambling licences, set at €200,000 since 2018.
The Ministry of Finance (MEF) endorsed the €7m fee, stating that it reflected the changed dynamics of Italian online gambling since 2011 as the market is dominated by the conglomerates of SNAI, Flutter Entertainment, Lottomatica, Entain, and SKS365.
#Breaking News
1.?????? Reports: Ohtani’s Ex-Interpreter In Plea Negotiations With Federal Prosecutors
Several weeks after bombshell gambling reports surfaced against Ippei Mizuhara, the former interpreter of Shohei Ohtani is reportedly in negotiations with U.S. federal prosecutors on a guilty plea in the case.
The charges reportedly surround allegations that Mizuhara stole millions of dollars from the Los Angeles Dodgers’ star to cover a series of sports betting debts with a California illegal bookmaker.
Last month, reports surfaced that Mizuhara owed at least $4.5 million to the bookmaker. According to the New York Times, which first broke the story, Mizuhara may have stolen a higher amount than initially reported.
Mizuhara, Ohtani’s former interpreter, apparently apologized to the Dodgers for his gambling transgressions on March 20, following the team’s opening-day win over the Padres in South Korea.
2.?????? BlueBet and Betr confirm merger and A$20m equity raise
ASX-listed operator BlueBet confirmed today (11 April) it has entered into a binding asset sale agreement with Matthew Tripp-owned Australian brand Betr.
The deal will see BlueBet issue 265.4 million shares to Betr shareholders, representing around 56.9% of the combined entity prior to an upcoming A$20m equity raise.
The merger is scheduled to complete on 1 July 2024, provided that several different closing conditions are met.
Those conditions include approval from the Northern Territory Racing Commission and BlueBet shareholders, the successful completion of the equity raising, and BlueBet maintaining net cash balances of at least A$3m as of 30 April.
The combined business willl be led by current Betr chief Andrew Menz as CEO.
3.?????? AskGamblers reports $9m recovered for players in 2023
The AskGamblers Casino Complaint Service (AGCCS) has released its official figures for 2023, revealing $9m+ recovered across 2,200+ complaints.?
These figures also bring the AGCCS’ lifetime figures up to 80,000 complaints handled, with $60m returned to players since the company’s inception. Over the course of 2023, AskGamblers handled a total of 3,239 cases with a 70% resolution rate.?
Founded in 2005, AskGamblers acts as a platform for bettors to discuss and review developments in the iGaming community. After integrating into Catena Media, it was then acquired by Gaming Innovation Group (GiG) in 2022, alongside other previously Catena-owned affiliate websites Johnslots.com and Newcasinos.com . The total valuation of the deal settled at $47.9m.?
Since that time, Catena has offloaded further assets following some underwhelming financial results at the end of 2023. GiG themselves reported a 37% revenue rise for Q423, reporting $38/1m for the quarter.?
4.?????? UKGC Hits bet365 with ￡582k Fine over AML, Social Responsibility Breaches
Bet365 is to pay ￡582,120 for anti-money laundering and social responsibility failures at its online business.
Hillside (UK Gaming) ENC, which holds a licence for Bet365’s bingo and casino products, will pay ￡343,035 and Hillside (UK Sports) ENC, which holds a licence to offer betting, will pay ￡239,085.
All ￡582,120 will be directed towards socially responsible causes as part of a regulatory settlement with the Commission.
The failings were discovered during a Commission compliance assessment in March 2022.
5.?????? Entain share price hits highest point in a month after buyout rumours
Entain yesterday recorded its highest share price in a month, after talks of a buyout of the company broke heading into the week.
At market close yesterday, the sports betting and gambling company was valued at 825.00 GBp (and it has continued steadily since), the highest it has been since 6 March, when the closing price that day was 830.40 GBp, and the first time in that period in which it has risen above 800.00 GBp.
This follows on from speculation in the last few days that several companies, including private equity firm Apollo, were weighing up potential takeover bids for Entain.
According to a report in the Sunday Times, the departure of Entain Chairman Barry Gibson, who notified his intention to retire from his position last week, could lead to the company’s assets being bought.
In recent weeks, Gambling Insider understands Wall Street boutique advisory Moelis was appointed to advise the entire Entain board alongside BoA and Morgan Stanley, as well as the CAC committee, in relation to the possible sale of several of Entain’s overseas brands.
6.?????? Brazil Betting laws targeted for completion by this summer
The country's Ministry of Finance uncovered a plan that will help establish the regulatory framework for iGaming and sports betting operators
Late in December, Brazil made an important step to regulate sports betting by legalizing the activity. Similar to other jurisdictions, the process is complex and requires extensive policymaking that takes time to be considered and implemented. Still, it is likely that bettors and sports fans in the country will be able to place their first legal wagers at some point in the second half of the year.
The likelihood of establishing the complete regulation by July was reaffirmed by Brazil’s Ministry of Finance. The Ministry published a new plan, outlining a detailed approach toward the establishment and implementation of regulations for sports betting. Ultimately, per this plan, the process is expected to be completed by the end of July this year.
7.?????? New York mobile sports betting handle reaches $19.6bn for the 2023/24 fiscal year
New York has released its final set of results for mobile sports betting in the 2023/24 fiscal year.
Last month, the state surpassed its total handle for the 2022/23 fiscal year prior to March’s results being released, with these latest figures helping to further push a record second full fiscal year of legal mobile sports betting.
In total for the 2023/24 fiscal year, handle wasn’t far off reaching the $20bn mark, hitting $19.6bn, while gross gaming revenue (GGR) was set at $1.76bn.
Looking at March’s numbers specifically, mobile sports wagering handle increased slightly from the same period last year from $1.79bn to $1.85bn. This figure was also only a 4.3% month-on-month rise but was still the fifth-largest handle the state has recorded in a single month, since the first month of operation of legal mobile sports betting in January 2022. March Madness of course started in mid-March, which helped handle increase from February.
#US / Canada
8.?????? DraftKings ‘Clear Winner’ In Truist Survey, ESPN Bet Feedback Positive
A recent online gaming survey conducted by Truist Securities places DraftKings as a “clear winner” in today’s US sportsbook market.
DraftKings took the top spot in both online sports betting and iGaming, analyst Barry Jonas said. The Boston-based sportsbook took 29% of share compared to FanDuel‘s 22%.
The survey results are based on 554 eligible responses with 69% of respondents ages 21-44 and a 55%-45% male-female split. More than half of all respondents, 54%, participated in both online sports betting and iGaming while 23% only bet on sports and 24% only played online casino.
While Jonas says he remains convicted that DraftKings is a long-term winner, he also noted responses concerning ESPN Bet show there is a path to material upside for the brand.
9.?????? Mississippi Senate keeps online sports betting bill hopes alive
On paper, it seems like good news that the Mississippi Senate voted to pass HB 774, a bill that was originally intended to expand sports betting online in the state.
However, the version the Senate passed includes a strike-all amendment that essentially leaves the current law, which includes retail and not online betting, as it is. The strike-all version advanced out of the Senate Gaming Committee last week.
What is does do is keep the discussion around the bill alive.
“The amendment that came out of committee makes no changes to the current law. It does not express a Senate position one way or another but it does express our position to continue to discuss this and hear from people across the state on this issue,” said Sen. David Blount before the vote.
10.?? Underdog Among Five Daily Fantasy Sports Apps Leaving Maine
Multiple daily fantasy sports apps including Underdog Fantasy are out in Maine, per an announcement from the state regulator.
Five DFS apps are no longer licensed to operate in the state, the Maine Gambling Control Board announced on social media Tuesday:
领英推荐
·???????? Data Force
·???????? Bidventures
·???????? Underdog
·???????? Boom Shakalaka
·???????? Sportshub
A spokesperson with the MGCB said the operators made “business decisions” and decided not to renew their licenses.
“In states across the country, we make business decisions on where to offer our games, and we chose to not pursue a renewal of our fantasy sports license in Maine,” an Underdog spokesperson said.
11.?? New Jerseys considers complete ban on college prop bets
New Jersey is the latest state to consider prohibiting college prop bets.
Bill S3080, sponsored by Sen. Kristin Corrado, R-Passaic proposes to prohibit operators accepting player-specific proposition bets on college sports amid fears over student-athlete safety and sporting integrity.
“I have heard about many individuals who have been the victim of online harassment because they didn’t perform to the expectation of a bettor who made a side wager,” said Corrado. “This legislation will ban player-specific prop betting in New Jersey, which will help curb that appalling behavior, and make college athletic events safer for all participants.”
Currently in New Jersey college prop betting is allowed however players are not allowed to place prop bets on games involving in-state colleges.
12.?? Bill to double New Jersey online gambling tax rate introduced
A bill to hike the tax rates for New Jersey online sports betting and online casino operators has officially been introduced to the Senate.
Bill S3064, sponsored by? Sen. John Mckeon, proposes to increase tax rates for sports betting and online casino to 30%.
Currently online sports betting operators are taxed at 14.25% while iGaming operators currently pay 15% in tax, plus another 2.5% to the Casino Reinvestment Development Authority.
The bill was first reported on in March, however it has now been introduced to the Senate where it has been referred to the Senate State Government, Wagering, Tourism and Historic Preservation Committee.
13.?? Maryland sports handle jumps by 21.3% in March to $536.7m
Maryland celebrated one of its highest months on record, with a 21.3% increase in handle – taking the state to $4.07bn for the fiscal year to date
Maryland has reported a 21.3% increase in sports betting handle for March, reaching $536.7m (￡427.7m/€499.6m) for the month. Sports betting handle for Maryland in March was also up 39% year-on-year from the $386m in bets taken in the same month last year.
Maryland handle for February was 18.8% behind January’s total of $545m despite the Super Bowl early in the month. However, that drop could also be attributed to the shorter month of February and the NBA All-Star break that ran between 16-21 February.
Mobile accounted for $522.1m in handle, 97.3% of the monthly total. Retail was responsible for $14.6m of the figure.
#M&A & Finance
14.?? Rivalry publishes FY2023 results: Revenue up 34% to $35.7m
Rivalry has released its FY2023 results, for the period ending 31 December 2023.
Revenue increased 34% when compared to last year’s figures, for a total of CA$35.7m (US$26.16m). Profit saw a bigger jump of 66% between 2022 and 2023, with gross profit from the latter reaching CA$16.2m.
Betting handle also increased 82%, up to CA$423.2m by the end of 2023. However, when looking at these from a Q4 perspective, the figures and percentages are a little different.
Q4 revenue dipped by 32% when compared to the year prior, which Rivalry explained as being due to “an abnormally favourable result experienced in Q4 2022.” Gross profit was down 40% to CA$3m, which was due to the same reason as above. Q4 betting handle rose 1.5% from the year before, for a total of CA$85.2m. Net loss dropped 22% down to CA$24.3m over the year, with a reduction of CA$3.3m attributable to Q4.
15.?? MGM Resorts raises $750m via senior notes
MGM Resorts International (NYSE: MGM), has successfully completed its latest senior notes issuance, raising $750m in capital.
The offering, totalling $750m, was issued at par and at a rate of 6.500%, due in 2032. MGM Resorts (MGM) intends to use the net proceeds from the offering of the notes to “repay existing indebtedness, including its outstanding 6.750% senior notes due 2025”.
As per its announcement, the company also “may invest the net proceeds in short-term interest-bearing accounts, securities or similar investments”.
A senior note is a form of a bond that will take precedence over other debts in the event of bankruptcy. As they carry a lower degree of risk, senior notes pay lower rates of interest than other bonds.
#Legal & Regulation:
16.?? 888Sport, William Hill, Bet365 and Betsson blacklisted by Dominican Republic
More than 40 major operator brands have been blacklisted by the Dominican Republic ahead of the market preparing to re-regulate.
The announcement comes at the same time that the Dominican Republic has issued Resolution 136-2024. The resolution, signed into law on 26 March 2024, provides a new regulated framework for online gambling.
The new set of measures will be overseen by the Dirección de Casinos y Juegos de Azar (DCJA). The directorate is managed by the Ministerio de Hacienda (Ministry of Finance). As a result, it is responsible for issuing licences to online casinos and lotteries.
17.?? Belgium report warns of impact of over-regulation on channelisation
On 1 July 2023, Belgium introduced a near total ban on gambling advertising. This was after a consortium of sports teams and gaming operators were defeated in a last-ditch legal bid challenging the royal decree.
The ban faced backlash, with Belgium gambling trade body Bago highlighting the government’s decision to act against the advice of the country’s Gambling Commission when imposing the ban.
Gaming1’s report has now outlined the impact of the royal decree on channelisation towards legal operators in Belgium.
Gaming1 pointed to surveys conducted by Nepa in 2023. The studies found a 6% rise in online players using an illegal website in the past three months following the royal decree, as well as a 4% increase on deposits made on illegal gaming websites.
18.?? Germany’s highest court set to side with player in Betano losses case
The German Federal Court of Justice is set to rule in favour of a player seeking to recoup past losses from sports betting operator Betano.
The court has published a preliminary legal opinion, comprising a 25-page advisory decision, which indicates that it will side with the player.
This is not a final ruling (see below), and the hearing is scheduled for 2 May.
However, legal experts anticipate that the court’s opinion will trigger a surge in similar lawsuits, adding to the ongoing turmoil in Germany’s gambling industry, which has had to deal with player reimbursement cases for several years.
19.?? KSA imposes penalty on Casbit Group NV
The Gaming Authority in the Netherlands, Kansspelautoriteit (KSA) has imposed a penalty on Casbit Group NV for offering illegal games of chance on the lala.bet website.
The KSA has called on Casbit to cease offering online casino gaming without a licence.
The KSA states: “Strict rules and regulations apply to offering games of chance with a permit. These are aimed at providing a safe legal offer, where players are assured of fair play and are protected against gambling addiction. Offering illegal games of chance undermines that system and the safety of the player and the KSA therefore strictly enforces this.”
Should the operator not comply with what has been asked by the KSA, it faces a penalty of €280,000 ($300,396.88) per week with a maximum of €840,000.
20.?? Lottoland VP concerned with lack of communication from Gambling Minister in Ireland
Lottoland has expressed its concern over the Minister of State at the Department of Justice in Ireland refusing to meet the company to express some of its concerns.
According to the Irish Times, the Gambling Regulation Bill 2022 is due before the Dáil this week, before it is set to go forward to the Seanad for further debate.
Lottoland VP for UK and Ireland, Mike Kirwan, sent a letter to Minister James Browne back in March, wishing to seek clarification over a number of the comments he had made on RTé Radio 1’s Drivetime show, which Kirwan stated were incorrect.
In the letter, one of the points said Browne had claimed stake and win limits already applied to Lottoland’s operations now, but Kirwan explained this was not correct.
There were other concerns raised from the radio interview and Kirwan explained in the letter that he wanted the opportunity to meet Browne to receive clarification on his comments, discuss Lottoland’s reservations over the Bill and to offer assistance and propose solutions with regards to the issue of problem gambling.
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Deputy CEO / CTO at GR8 Tech
7 个月Great article as always!