iGaming Wrap-Up of CW 23-24 2024
#iGaming News of the week
0.?????? New York lawmakers pass bill to speed up downstate casino process
Legislation designed to set a hard deadline for the casino licensing process in New York has been passed by both the Senate and the Assembly and will be sent to Gov. Kathy Hochul for approval.
State senators approved SB 9673 on June 7 by a 51-4 vote and the Assembly green-lit it 51-9. The bill, sponsored by Sen. Joe Addabbo, would establish a deadline for selecting the three casino sites in downstate New York. The New York legislature had been set to adjourn on June 6 but stayed past that cut-off to vote on the bill.
An amendment added by Addabbo before it passed dictates that the New York Gaming Facility Location Board must make recommendations on selecting downstate casinos by Dec. 31, 2025. The final possible deadline for licenses to be issued would be March 31, 2026. Addabbo’s first proposal, introduced on May 17 with just two weeks left of the legislative session, had been a deadline of a full year earlier. Things could theoretically progress significantly faster than the March 2026 deadline, as SB9673 allows interested developers to apply for casino licenses while still in the process of resolving land use issues. Under the amended bill, applications are due Aug. 31 of this year.
Addabbo has estimated that three new casinos could bring in up to $3 billion in casino license fees alone because he believes developers will bid up to $1 billion on each license.
#Breaking News
1.?????? Australia bans credit card and cryptocurrency gambling
The previously announced ban on credit card and crypto-related gambling in Australia entered into force today (11 June).
Operators that fail to enforce the ban on credit cards, credit related products and digital currencies could face fines of A$234,750 (€144,011). It follows the Albanese government’s late 2023 amendment of the Interactive Gambling Act 2001 that aimed to align online gaming with land-based regulations.
Minister for communications Michelle Rowland MP said: “Australians should not be gambling with money they do not have.
“This ban builds on the significant progress to minimise gambling harm that the Albanese government has made over the past two years, which is already benefitting thousands of vulnerable Australians.
“Our commitment to ensuring that gambling takes place within a robust legislative framework with strong consumer protections remains steadfast, and we will have more to announce in due course.”
2.?????? Gambling Commission rumoured to be investigating Rishi Sunak's aide over election bet
Rishi Sunak's aide Craig Williams is speculated to be under investigation by the Gambling Commission for betting on an election date before its official announcement.
Craig Williams, parliamentary private secretary to UK Prime Minister Rishi Sunak, is speculated to be under investigation by the Gambling Commission after placing a ￡100 ($127) bet on the date of a July election just three days before the official announcement.
Williams confirmed that he made the bet with bookmaker Ladbrokes on 19 May in his local constituency of Montgomeryshire.
Williams admitted to making the bet some weeks ago and acknowledged the potential implications.
Williams stated on social media: "I've been contacted by a journalist about Gambling Commission inquiries into one of my accounts and thought it best to be totally transparent. I put a flutter on the General Election some weeks ago. This has resulted in some routine inquiries and I confirm I will fully co-operate with these. I don’t want it to be a distraction from the campaign. I should have thought through how it looks."
3.?????? Entain warned of inbound litigation over DPA transparency failings
Entain Plc faces a pending lawsuit aimed at compensating institutional investors stung by the FTSE100 firm’s ￡585m penalty related to a bribery investigation of its former Turkish business by HMRC.
Andrew Hill and Matthew Reach, the litigation team of London law firm Fox Williams, are preparing the claim against Entain “on behalf of institutional investors, targeting autumn 2024.”
Fox Williams has launched a claim period, accusing Entain of failing in its regulatory duties to report bribery and corruption charges related to its Turkish subsidiary, Headlong Limited.
The litigation asserts that Entain shareholders are entitled to compensation for transparency failures, as Entain violated section 7 of the UK Bribery Act 2010. The section states that “a company can commit an offense under section 7 of failure to prevent bribery if an employee, subsidiary, agent or service provider (‘associated persons’) bribes another person anywhere in the world to obtain or retain business or a business advantage.”
4.?????? Entain potentially facing further ￡100m litigation claim related to Turkish operations
Industry giant Entain could be faced with a new group litigation claim from investors, related to its reporting of the bribery and corruption linked to its Turkish operations.
The law firm Fox Williams is investigating the group litigation claim, where damages sought from Entain could potentially be upwards of ￡100m.
Back in November, the operator paid a financial penalty plus disgorgement of profits totaling ￡585m over its legacy Turkish business in relation to activities of former third-party suppliers and former employees of the group. Entain also donated ￡20m to charity and paid a contribution of ￡10m to HMRC and the CPS’ costs.
This penalty came after alleged offences under Section 7 of the Bribery Act 2010 and the failure of the company to have adequate procedures in place to prevent bribery.
Fox Williams Partner and Head of the Securities Litigation Team Andrew Hill said: “This claim will offer institutional investors the opportunity to recover substantial losses but more importantly serve to improve transparency and governance within the UK’s gambling sector, reminding public companies that they need to take their disclosure obligations seriously."?
5.?????? Lightning Roulette case: Evolution succeeds in filing redacted complaint
Nevada magistrate judge Elayna Youchah agreed with Evolution’s claim there was a compelling reason to temporarily redact its complaint until L&W has responded. It follows Evolution seeking to keep several sections of its complaint redacted, stating they were subject to confidentiality agreements between it and L&W.
The court was previously not satisfied with the Evolution’s argument, and highlighted there is a strong presumption in favour of public access of records.
The live casino giant responded by stating L&W has been served with both a redacted and original complaint. It added there is a compelling reason to keep the document redacted at least until the defendants have appeared in the litigation.
6.?????? Better Collective: Getting the most out of EURO 2024
Esben Skou Vinther, VP of Europe Better Collective, spoke to Insider Sport about the importance of the upcoming EURO 2024 tournament and how operators can maximise its potential for higher profits and true fan engagement.
Insider Sport: The Euros are getting closer – what’s forefront in your mind right now in terms of preparations for the tournament? Is everything in place to ensure your partners can make the most of the opportunities it will bring?
Esben Skou Vinther: EURO 2024 is an important tournament for us, and our primary focus is ensuring our operations and partnerships are seamlessly aligned to capitalise on this opportunity. We’ve been rigorously preparing our platforms, content, and marketing strategies to provide maximum visibility and engagement for our partners.
7.?????? Adventure Box to acquire Lion Gaming Group to break into iGaming
Adventure Box Technologies has announced its first foray into the igaming industry by completing an acquisition of Lion Gaming Group for SEK 475m ($45m).
Headquartered in Stockholm, the gaming tech company inked a Letter of Intent to acquire all shares of Lion Gaming for a total of SEK 475m, paid through newly issued shares in Adventure Box at SEK 0.4 per share. Adventure Box currently operates KoGaMa, an online platform where users can create, share and play streamed 3D video games, which is used by over 750,000 players every day.
Mads J?rgensen, Chairman of the Board of Adventure Box Technologies, stated: “We are creating a major new player in the igaming market through the acquisition of Lion Gaming Group, and we see opportunities for synergies between the KoGaMa platform and Lion’s gaming platform.
“This acquisition lays the foundation for a global player powered by power, bleeding edge technologies that will change the game for operators, suppliers and most importantly, players.”
#US / Canada
8.?????? DC Sports Betting Market Expansion Bill Survives Early Challenge
Changes to the DC sports betting market could come quickly as an amendment to strip the language from the budget failed.
The DC Council voted on budget amendments Wednesday, including one that sought to strip the proposed DC sports betting language from the bill. The language adds seven District-wide mobile licenses (federal land excluded) through its professional sports teams.
Councilmember Zachary Parker said there was no need to “fast track” the process through the budget. But the new sports betting language, proposed by Councilmember Kenyan McDuffie as a standalone bill in April, will remain after the amendment to remove it failed by a 9-4 vote.
Chairman Phil Mendelson said work on finalizing the budget will continue next week but could carry into late June.
9.?????? Fanatics & ZenSports fined combined $111K by Tennessee gaming regulator
Fanatics Sportsbook and ZenSports have less cash on hand after being levied a series of fines by the Tennessee Sports Wagering Council.
The sports betting and fantasy regulator unanimously voted to hand Fanatics a $50,000 fine for violating Tennessee gaming rules regarding self-exclusion lists. Fanatics, which self-reported its violations, allowed eight registered account holders on a self-exclusion list to place wagers with the sportsbook. Fanatics attributed the error to its takeover of PointsBet’s U.S. operations. The operator was fined $6,250 for each Level 2 violation.
Fanatics was proactive by refunding losses from the accounts that placed the wagers. The recent violations marked the second time Fanatics has been fined over self-exclusion lists.
“We appreciate your honesty but please don’t appear on our agenda again for the same issue,” chairman William Orgel told a Fanatics rep during a meeting last month.
领英推荐
10.?? Final arrest made in alleged Porter NBA gambling scheme
A New York man was arrested on suspicion of placing bets on Jontay Porter in games that the Toronto Raptors forward was attempting to lose as part of a sports betting scheme, federal prosecutors said on Tuesday.
Long Phi 'Bruce' Pham, a 38-year-old from Brooklyn, was taken into custody on Monday after being stopped at John F. Kennedy International Airport in New York. He reportedly was about to take a one-way flight to Australia before authorities detained him and charged him with conspiring to defraud a sports betting company.
Porter, 24, received a lifetime ban from the NBA in April for 'disclosing confidential information to sports bettors, limiting his own participation in one or more games for betting purposes and betting on NBA games.'
Porter supposedly owed Pham and three others large sums of money because of sports betting losses, and the co-conspirators told Porter that he could rid himself of those debts by leaving games early to ensure that prop bets -- on him -- cashed.
11.?? Maine sports betting revenue dips despite handle recovery in May
Sports betting revenue in Maine declined 19.5% month-on-month during May despite the Pine Tree State reporting an increase in handle.
Adjusted gross receipts from sports betting in May amounted to $3.3m (￡2.6m/€3.0m). This is less than the $4.1m posted in Maine during April.
Maine calculates adjusted gross receipts by subtracting voided and cancelled bets, federal excise tax and player winnings from handle.
On the subject of player spending, total handle for May amounted to $39.9m. In contrast to the revenue decline, total wagers were up 4.2% month-on-month from $38.3m in April. Consumers won a total of $36.3m from sports betting during May while Maine collected some $331,279 in tax.
12.?? North Carolina's online sports betting activity drops in May
North Carolina's online sports betting market, which launched in March, experienced a decline in wagering activity in May. According to the North Carolina Lottery Commission's latest report, the total handle for May was $525.5 million, down 19% from April's $648.9 million. This decrease follows the conclusion of major sports events, including March Madness and the Final Four in April.
Promotional spending by sportsbooks played a significant role in the initial surge of wagers. In the first three weeks after the market opened on March 11, operators distributed $202.6 million in promotional credits, followed by another $79.7 million in April to attract bettors. Without these bonus bets, the difference in wagers for May was a 13% month-over-month decrease.
Gross revenue for North Carolina operators in May was $63.08 million, a 40% drop from April's $105.25 million. Despite the decline, sportsbooks saw a high hold rate of 12%. This marked the third consecutive month of double-digit hold rates, although it was below April’s unusually high 18.5% win rate.
13.?? New York’s playoff runs lead to $200M May revenue
Fueled by the New York Knicks and the New York Rangers competing simultaneously in the NBA and NHL playoffs, New York sportsbooks took more than $200 million in revenue in May for only the second time ever post-PASPA.
As the Knicks reached the conference semifinals, the Rangers progressed to the conference finals, and the Yankees won 21 of their 28 games in May, the New York Gaming Commission reported revenue of $203.3 million last month. That is the second-highest total since online wagering went live in January 2022, falling around $8 million short of the January 2024 record of $211.7 million.
Those profits were up 33.8% on last year and rose 10.6% month-over-month from April.
#M&A & Finance
14.?? Boyd adds ex-Barclays banker to board as M&A rumours swirl
Boyd appointed Michael Hartmeier to its board on 4 June, where he will sit on the company’s audit committee.
The move increases the size of Boyd’s board from eight to nine people, with six qualifying as independent under the NYSE’s listing rules.
Hartmeier has had a 25-year career in investment banking, serving as Barclay’s former group head of lodging, gaming and leisure.
The banker previously worked as a group head for hospitality and gaming for both Lehman Brothers and Credit Suisse First Boston.
Throughout his career, Hartmeier has completed more than $125bn in financing and advisory assignments, including work for gaming companies.
The appointment comes amid speculation Boyd could be a potential buyer of Penn Entertainment in the event of a sale. The rationale behind rumours of such a deal include Boyd’s healthy balance sheet and possible interest in Penn’s brick-and-mortar assets.
15.?? Overseas growth pushes Groupe Partouche revenue up to €173.7m in Q2
France’s Groupe Partouche has reported a 2.7% year-on-year rise in gross gaming revenue to €173.7m (￡146.4m/$186.8m) in Q2, helped by the reopening of two of its land-based casinos.
Revenue in Q2 – covering the three months to 30 April – was ahead of €169.1m in the same period last year. Groupe Partouche noted growth across both its casino and hotel operations during the quarter.
Beginning with casino, this segment was helped by the reopening of two venues in France. Lyon Vert casino has been transformed into the Pasino Grand-La Tour Salvagny after a two-year renovation project costing €2.1m.
Groupe Partouche also referenced the partial reopening of Annemasse Casino. The venue has been undergoing renovations since October 2022 at a cost of €8.1m. In January, phase one of the project completed, allowing the area that houses slot machines to reopen.
#Legal & Regulation:
16.?? NYPD busts $23m mob-run illegal sports betting ring
The New York Police Department (NYPD) arrested 17 individuals for their roles in a mob-run $23m illegal gambling ring on Wednesday (7 June).
According to the 84-count indictment, the individuals are accused of running a number of Staten Island loan sharking and illegal gambling operations. Prosecutors allege the ring was controlled by members of the Gambino crime family, one of New York’s so-called “Five Families”.
The ring handled more than $22.7m in illegal bets, the prosecutors said, involving an offshore unlicensed gaming site called Ubet1288.com.
Among those arrested were alleged Gambino foot soldiers John J. LaForte, Anthony J. Cinque, Jr., and John Matera, as well as several alleged associates.
17.?? KSA ‘tackles wallets’ of illegal providers with two new violation penalties
Initially, the two providers – L.C.S. Limited and Blue High House S.A. – were issued a warning about illegally offering their unlicensed games to Dutch consumers. The warnings clarified that if this continues, both businesses will be subjected to a financial penalty.
Looking closer at the individual firms, L.C.S. Limited was first placed under KSA monitoring after being found out that it is supplying Dutch consumers with its illegal offering in 2022. In addition to ordering the provider to withdraw from the market with immediate effect, the KSA also imposed a fine of €2.1m (￡1.75m) for the total duration in which the illegal offer has been available.
René Jansen, KSA Chairman, commented: “A burden under penalty payment is more than a warning to an illegal provider. Illegal providers who do not take the right measures to ban Dutch players are being tackled hard by the KSA and will feel that where it affects them the most – in the wallet.”
18.?? Number of Swedish online casino players up 33% since 2022, survey finds
A new survey on the Swedish iGaming market has revealed that 16% of the country’s population has played at an online casino in the past 12 months, marking a 33% increase compared to a 2022 study.
Conducted in April 2024, this study is the second of its kind and was carried out by Raketech’s affiliate site Casinofeber in collaboration with Reflect F?retagsutveckling AB.
The research was led by Martin Johansson, former head of analysis at Svenska Spel.
A total of 1,026 individuals participated in the survey, including 444 who had both played casino games and sports betting in the past 12 months, 175 who had only played casino games, and 407 who had only played betting.
19.?? ITIA issues sanctions over tennis betting offences
The International Tennis Integrity Agency (ITIA) has sanctioned a former professional player and official for betting-related offences.
David Gorsic, a Slovenian former player, and Steven Nguyen, an inactive Australian national-level official, have been charged. Both admitted to betting on tennis while covered by the Tennis Anti-Corruption Programme (TACP).
Gorsic, who reached a career-high world singles ranking of 1,399 back in 2015, admitted to betting between 2017 and 2018.
He faces a six-month ban, three months of which are suspended. This means he will not be eligible between 21 May and 20 August. He has also been fined $5,000 (￡3,926/€4,660), with $3,500 of that figure suspended.
#Tech:
20.?? SOFTSWISS launches mobile sportsbook on Apple and Google app stores
Provider of igaming software SOFTSWISS has launched its first mobile app that is powered by its proprietary sportsbook. This comes in light of the firm’s Q1 2024 gambling market analysis, highlighting that mobile devices have claimed 90% of gross gambling revenue (GGR) – up 86% YoY.
Alexander Kamenetskiy, Head of SOFTSWISS Sportsbook, commented: “A year after demonstrating the app, we launched our first project and, what is more important, secured releases on two of the most popular mobile application stores.
“I am incredibly proud of my team’s dedication and hard work in reaching this milestone. As a tech-innovative company, we look forward to introducing more features and tools to benefit our partners.”