iGaming Wrap-Up of CW 21-22 2024
#iGaming News of the week
0.?????? US operator shares tank following Illinois tax hike plan
Multiple major US sport betting operators saw their share prices plummet this week following the Illinois Senate voting to hike its sports betting tax.
US betting market leaders DraftKings and FanDuel-owner Flutter Entertainment saw their share prices crash 10.2% and 9.1% respectively since the market opened on Monday (27 May).
This trend was repeated with other operators in the market including BetMGM joint venture partners MGM Resorts and Entain. MGM’s stock fell 2.3% to $38.97 since the weekend, while Entain’s plunged 14.3% to ￡6.64 per share. The share price declines followed news last week that the Illinois Senate had voted to implement a progressive sports betting tax, with a top rate of 40%.
This compares with the current rate of 15%, and the increased rate of 35% initially proposed by Governor J.B. Pritzker in his February FY 2025 budget. The sliding scale of the tax will lead to disparate outcomes for operators, with analysts at JMP Securities highlighting that FanDuel and DraftKings will be most affected by the change.
JMP said the tax itself would be financially harmful to any company in the Illinois sports betting market but is also representative of a larger issue. The analysts said: “The last year has brought on a tax rate increase from Ohio, and now Illinois, with states including New Jersey and Massachusetts, flirting with the idea of increasing their respective rates.
#Breaking News
1.?????? State Senator voices disapproval of Mets owner’s $8B casino
New York State Sen. Jessica Ramos is voicing her opposition to a proposed $8 billion casino and entertainment complex by Mets owner Steve Cohen and partner Hard Rock Casino.
Ramos has notified Cohen and Hard Rock of her decision to not move forward with legislation that would allow the project, Metropolitan Park, to be a reality. The Senator has vowed to not introduce a bill that would turn a piece of state-owned property into commercial use for a parking lot. The lot sits next to Citi Field, the Mets’ home since 2009.
“I will not introduce legislation to alienate parkland in Corona for the purposes of a casino,” said Ramos in a statement. “We want investment and opportunity, we are desperate for green space, and recreation for the whole family. We disagree on the premise that we have to accept a casino in our backyard as the trade-off.”
The proposed project next to Citi Field, which has been in consideration for nearly two years, also features a 20-acre park, conference facility, hotel, music venue, and Queens Food Hall.? The complex is estimated to add at least 15,000 jobs to New York’s economy.
2.?????? Resignation of Gambling Minister leaves industry with further election uncertainty
The limbo that the gambling industry was left amidst Rishi Sunak’s surprise decision to call a summer election was elevated upon the announcement that gambling minister Stuart Andrew would be resigning following the dissolution of Parliament. His resignation is as a result of changes to the constituency he represents.
It remains unclear what the election means for the UKGC’s new framework and financial vulnerability checks, which are set to be implemented in four stages: August 2024, November 2024, January 2025 and February 2025.
Nonetheless, the election and the significant disruption to government that oversees the gambling industry is likely a setback for the land-based sector, which just had laws approved for the expansion of gaming machines at specific gambling venues across the UK.
The resignation of Andrew underlines that following an election, Parliamentary governance of the sector is set to undergo a significant change. At the time of the election being called, Stephanie Peacock MP, was the Shadow Minister for Sport, Gambling and Media, having been appointed last year. However, a cabinet reshuffle would be likely whoever wins the election.
3.?????? Decrease in Denmark’s April GGR to DKK 595m
The Danish Gambling Regulator, Spillemyndigheden, has released the nation's figures for gambling spend in April, with combined GGR for betting, gaming machines, land-based casino and online casino decreasing by 6.9% to DKK 595m ($86.4m).?
Of the statistics released from the four focus markets detailed above, all but one marked a decrease from April 2023. Betting GGR settled at DKK 195m this April, down by 20.9% from the figure recorded in the same month last year. As shown in the figures released by Spillemyndigheden, the mode of betting was largely dominated by mobile, with 63% of wagers being placed on mobile phones.?
Land-based casinos also displayed a marginal decrease of 1.6% year-on-year to DKK 31m, with average daily GGR hitting DKK 993,866. GGR generated from gaming machines also saw a downward turn, with the final figure for the month landing at DKK 96m, down 7.3% from April 2023.?
4.?????? Kindred historic Sweden fine reduced to SEK30m
The Administrative Court of Appeal in J?nk?ping has ordered a historic fine for the Spooniker subsidiary of Kindred to be reduced for the second time, with the amount now being set at SEK30m (￡2.2m/€2.6m/$2.8m).
Sweden gambling regulator Spelinspektionen first issued Kindred with a fine and penalty in March 2020. At the time, the penalty fee, referencing offering unauthorised bonuses and lotteries without a licence, was set at SEK100m.
Licensees in Sweden can only offer sign-up bonuses to customers, with all other offers being prohibited. However, checks on Kindred-owned Unibet, Maria Casino, Storspelare, Bingo and iGame websites in March 2019 uncovered various unauthorised bonuses. These included an online bingo loyalty scheme.
5.?????? Dutch market feels the strain as minors engage with Illegal websites
New research carried out by the Dutch affiliate trade group KVA and shared with the iGaming associations VNLOK and NOGA has found that Dutch minors are able to access unlicensed online gambling websites and gamble on them without any restrictions.
The KVA carried out the research, which it has passed on to the regulatory authority Kansspelautoriteit (KSA), to examine whether minors could open accounts with illegal online sites.
It found that underage players could open accounts with just an email address or phone number and make deposits from their youth bank accounts or anonymously with cryptocurrencies, both of which are strictly prohibited for licensed operators. Access to real money products was immediate.
The findings also showed that “illegal casinos are usually difficult to distinguish from licensed casinos” and will “misuse the name and corporate identity of legal providers or facilitate deposits with Dutch banks”, said the KVA.
6.?????? Entain-owned bwin wins court case submitted by player
Yesterday (29 May), a Zeeland-West Brabant District Court judge dismissed a player’s €94,000 claim against bwin operator Electraworks Europe Limited.
The judge ruled that a pre-regulation contract between the two parties was not void, as first reported by Casino Nieuws.
The plaintiff argued that bwin did not have a Dutch gambling licence and was not compliant with its duty of care.
However, when the player created their account in 2015 and started gambling between 2017 and 2021, there was no legal duty of care imposed. This duty only came into force with the Remote Gambling Act of 2021, which cannot be retroactively enforced.
Despite this, it was ruled that bwin had indeed provided resources like playing limits, customer service, and responsible gaming information.
The judge also stated that the prohibition against offering unlicensed online games of chance has become less relevant due to social and technological changes.
7.?????? Donald Trump: “I will stop Joe Biden’s crusade to crush crypto”
Donald Trump reiterated his support for private crypto investors and fervent opposition to the creation of a Central Bank Digital Currency (CBDC) in a speech over the weekend.
In an address at the Libertarian National Convention in Washington DC, Trump went over a number of his usual talking points in his trademark style. Immigration, the economy, foreign policy and the criminal trial against the former president all got a mention.
Cryptocurrency, an area Trump has been touching on more and more lately, came up just under half an hour into his speech. The Republican Party 2024 presidential candidate seems keen to present himself as a big supporter of US crypto in contrast to Joe Biden.
“I will also stop Joe Biden’s crusade to crush crypto,” Trump informed the crowd. “We’re going to stop it. I am going to ensure that the future of crypto and the future of Bitcoin will be made in the USA and not driven overseas.
“I will support self-custody. To the nation’s 50 million crypto holders I say this – with your vote, I will keep Elizabeth Warren and her goons away from your Bitcoin, and I will never allow the creation of a Central Bank Digital Currency.”
#US / Canada
8.?????? Senate Votes Down MA Sports Betting Tax Proposal
As several markets consider industry tax increases, a proposal to hike the MA sports betting tax rate was defeated Thursday.
During Massachusetts Senate budget discussions, Sen. John Keenan proposed an amendment to more than double the MA sports betting tax rate. The amendment, OTH 828, was filed Wednesday.
The Senate rejected the amendment as it works to finish the FY 2025 budget.
Shortly after launching sports betting last year, Ohio Gov. DeWine signed a sports betting tax increase, bumping it to 20% from 10%.
New Jersey Sen. John McKeon introduced a sports betting tax hike bill in April. McKeon aims to raise the online casino and sports betting tax rate to 30% from 15% and 13%, respectively.
Illinois Gov. JB Pritzker included a sports betting tax increase to 35% from 15%. Pritzker also proposed raising taxes on businesses to help fill in spending gaps.
9.?????? Supreme Court set to consider FL sports betting case on June 13
There is no guarantee the Supreme Court will choose to hear the case of West Flagler and Associates vs. the state of Florida. However, the date the group of justices will discuss the merits of hearing the case is now set in stone.
The case is set for conference on June 13. At that time, if at least four justices think the case merits hearing, they will decide to do so.
When the Supreme Court declined to stay the mandate of the Circuit Court decision, Justice Brett Kavanaugh filed a supplemental brief suggesting that the case could have national implications and might be worth hearing. Justice Neil Gorsuch is well known for being a champion of tribal rights, so it is possible he might take an interest in the case as well.
领英推荐
10.?? Louisiana: Treasure Chest announces June 6 opening date for new $100M land-based casino
Boyd Gaming has announced the grand opening date of the new land-based Treasure Chest Casino in Kenner’s Laketown neighborhood, Louisiana. Located just over the levee from the Treasure Chest Casino riverboat, the land-based property will officially open to the public on Thursday, June 6.
The new casino doubles the size of the riverboat’s current casino floor at 48,000 square feet of gaming and entertainment space. The land-based gaming floor boasts more than 900 slot machines including over 300 new slot games and "guest favorites brought over from the riverboat," along with a fresh mix of 32 table games.
Additionally, the land-based casino offers over 8,000 square feet of meeting and event space along with four new restaurants: Alder & Birch Steakhouse, The Game, Lakeside Café, and Infusion.
11.?? Nevada’s Sports Betting Handle Slumps To $569 Million For April
The Nevada Gaming Control Board reported $569.2 million in sports betting handle for April on Wednesday, which represented a small year-over-year decline.
Wagering was down 4.8% compared to April 2023, though handle via sports betting apps as a percentage of overall handle reached 68.5%, the highest since reaching 73.5% last August.
Handle was also 27.5% lower compared to the $785.3 million in accepted bets in March, when Las Vegas serves as a bucket list destination for bettors who want to wager on college basketball during the NCAA Tournament.
Operators claimed $30.8 million in sports betting revenue, resulting in a 5.4% hold. Though revenue was down 5% versus 12 months ago, it was up 3.5% compared to March as the win rate was 1.6 percentage points higher.
12.?? Sportsbooks in Arizona accept record $760M in March wagers
Arizona reported historic results in March for its online and retail sports betting market.
According to data provided by the Arizona Department of Gaming, bettors in the Grand Canyon State wagered a monthly record $759.8 million in March, a 17.9% increase year-over-year. The results surpassed November 2023’s previous record of $713.6 million.
Arizona has accepted $16 billion in bets since wagering went live in September 2021. FanDuel closed as the top operator in Arizona for both handle and gross revenue. The Flutter Entertainment-owned brand reported a $265.1 million online handle in March, the highest monthly handle ever for an Arizona sportsbook.
#M&A & Finance
13.?? Rivalry Q1 2024 results reveal 51% jump in net revenue
Rivalry has announced its financial results for Q1 2024. The company reported strong growth with a betting handle of $94.7m – an 11% increase from Q4 2023.
Additionally, gross gaming revenue rose by 20% to $7.7m and net revenue saw a significant jump of 51% to $4.5m – the company achieving a record net revenue margin of 58.5%.
Commenting on these results, Steven Salz, Co-Founder and CEO of Rivalry, stated: “Our first quarter results saw a return to growth with sequential increases in betting handle, gross gaming revenue and net revenue.
“We are also very encouraged by the improvement to net revenue margin experienced in the quarter, hitting an all-time record, proving our strategy is delivering results, and representing a meaningful improvement as compared to the average levels experienced throughout 2023.
“Additionally, interest in our original casino content continues to build, unlocking B2B revenue opportunities that we are keen to detail more fully in the near future.”
14.?? MyPrize goes live after raising $13m from Silicon Valley investors
Silicon Valley-backed crypto operator MyPrize has launched its online casino platform in international markets, along with a sweepstakes platform for US users. The platform features integrated live streaming and multiplayer gameplay, allowing users to interact with content creators in dedicated rooms.
Who’s behind it?
The start-up has secured substantial backing from Silicon Valley venture capital firms, totalling $13m over two funding rounds, propelling the company to a total enterprise value of $140m.
MyPrize’s funding rounds were led by Dragonfly and Boxcars Ventures, with additional participation from investors like Arrington Capital, Pudgy Penguins CEO Luca Netz, and Blockchain.com CEO Peter Smith, among others.
MyPrize is led by Zach Bruch as CEO. Bruch previously ran Recur, an NFT platform that raised a $50m Series A before closing its doors two years later, in August 2023. Bruch was also one of the top traders using FTX and is one of nine people chosen by the US Department of Justice to serve on the FTX creditor’s committee to help recover the funds FTX’s millions of users lost.
#Legal & Regulation:
15.?? Ex-MGA CEO Farrugia found guilty of leaking secrets to Yorgen Fenech
Heathcliff Farrugia, ex-CEO of the Malta Gaming Authority (MGA), has been convicted for leaking secrets to the alleged mastermind of an investigative journalist’s murder.
Malta’s Magistrate’s Court ruled yesterday (27 May) that Farrugia revealed official secrets by informing casino mogul Yorgen Fenech of an upcoming raid on a rival’s casino. The rule comes as Fenech continues to await trial for charges relating to the murder of investigative journalist Daphne Caruana Galizia in 2017.
The prosecution has accused Fenech of masterminding the murder, a charge he vigorously denies. Meanwhile, Magistrate Ian Farrugia handed the ex-MGA chief a conditional discharge for the crime of revealing official secrets, meaning he will not serve jail time unless a further offence is committed.
The former MGA chief resigned in November 2020 shortly after being questioned by police relating to messages sent to Fenech. Fenech was arrested over connections to the Galizia case by police in 2019 as he attempted to leave Malta’s waters in a private yacht.
16.?? Bulgaria now ruled compliant with global AML standards
Bulgaria’s fortified anti-money laundering (AML) rules, including tougher oversight of the gambling sector, are now compliant with international standards according to a Council of Europe oversight body.
A Moneyval follow-up report found that Bulgaria has improved its measures for tackling money laundering and combatting the financing of terrorism since a disparaging mutual evaluation report was published in 2022. Two years ago, the Moneyval committee placed Bulgaria on its compliance enhancing procedures. This has the Council of Europe work with individual countries to rectify AML failings.
Moneyval found that out of 40 applicable Financial Action Task Force (FATF) recommendations, Bulgaria is now fully or largely compliant in 13. The nation is at least partially compliant with the remaining 27 recommendations.
https://igamingbusiness.com/legal-compliance/bulgaria-now-ruled-compliant-with-global-aml-standards/
17.?? Switzerland federal council grants all casinos new licences from 2025
On 27 April 2022, the Federal Council took decisions in principle concerning the award of new licences valid from 1 January 2025. It approved the division of Switzerland into 23 zones, corresponding to a maximum of 23 licences (ten type A and thirteen type B). The Federal Council defined that an A licence could only be granted if the location chosen by an applicant enabled it to generate gross gaming revenue (GGR) of more than CHF 30 million per year from its land-based gaming offering, which is generally the case if 300,000 people live within a radius corresponding to a 30-minute drive.
For Type B concessions, it was decided that an applicant would have to choose a location that would enable the land-based gaming offering to generate gross gaming revenue of at least CHF 10 million per year. This requirement is generally met when 100,000 people live within the establishment’s catchment area, also within a 30-minute drive. However, an exception has been made: if the population requirement is not met, the applicant can show that it meets the profitability requirement in another way, for example by having a high proportion of tourists among its visitors.
The Federal Council has decided that the new concessions will be awarded as part of an open procedure: all interested parties can therefore submit their applications.
18.?? West Ham’s Lucas Paqueta charged over betting breaches
West Ham United midfielder Lucas Paqueta has been charged with misconduct by the Football Association (FA) for allegedly getting booked deliberately “for the improper purpose of affecting the betting market”.
He categorically denies any wrongdoing and “will continue to robustly defend his position”, according to West Ham.
An FA statement said: “It’s alleged that he (Paqueta) directly sought to influence the progress, conduct, or any other aspect of, or occurrence in these matches by intentionally seeking to receive a card from the referee for the improper purpose of affecting the betting market in order for one or more persons to profit from betting.”
“I am extremely surprised and upset that the FA has decided to charge me,” said Paqueta on social media. “For nine months, I have cooperated with every step of their investigation and provided all the information I can. I deny the charges in their entirety and will fight with every breath to clear my name.”
#Tech:
19.?? Sportradar launches audio and digital out-of-home advertising options
Sportradar has enhanced its ad programmatic advertising service by adding audio channels and extending its reach across additional digital-out-of-home (DOOH) advertising screens.
The new audio addition allows Sportradar’s clients to target digital audio listeners via podcasts, streaming services and internet radio. Furthermore, Sportradar now offers access to over 600,000 digital outdoor screens in more than 100 countries worldwide.
Both advertising channels utilise Sportradar’s specialised marketing technology for the betting industry to deliver relevant adverts to sports fans and bettors in real-time within markets where betting is legal. An integrated sports calendar ensures adverts are scheduled around pertinent events.
Sportradar’s advanced AI and machine learning algorithms enable the personalisation of audio adverts, tailored to listeners based on their location, demographics, playlists, and interests. Additionally, the company’s AI-driven marketing technology strategically places relevant messages on DOOH screens in areas popular with sports fans, such as near stadiums, entertainment venues, and travel routes.
20.?? Crypto’s igaming impact continues with Rivalry Token unveiling
Betting and gaming group Rivalry made its debut in cryptocurrency and blockchain this week by announcing the launch of its ‘Rivalry Token’, for use across its platform.
The native crypto token is planned for launch across Rivalry’s network in H2 2024, including both its sportsbook and casino offerings. The Canadian firm’s customers will be able to earn tokens through site activity, such as placing bets and referring friends.
Rivalry Token will then be able to be used for boosting odds and participating in chackpots. Rivalry added that this is the first step in its crypto expansion plans, detailing “several to-be-announced crypto exchange platforms” to be traded under the name ‘$RVLRY’.
Steven Salz, Co-Founder and CEO, Rivalry, said: “Online gambling is the latest web-based consumer category being increasingly disrupted by blockchain technologies with greater speed, access, and functionality than their legacy counterparts.