iGaming Wrap-Up of CW 24-25
#iGaming News of the week
0.??????Malta passes law protecting online gambling operators
The new law protects Maltese offshore gambling operators from foreign liability.
The Maltese parliament has passed a bill that protects online gambling operators licensed by the MGA from foreign liability. Bill 55 has been signed into law by George Vella as Act No. XXI 2023 Gaming (Amendment) Act. The act instructs Maltese courts to refuse to accept or enforce foreign judgements against Malta-licensed gambling companies that operate in the European market. That means it will prevent other European countries from taking legal action in Malta against operators that target their markets when operating under their Maltese licence.
Operators targetting other European markets often claim to be covered by their Maltese licence due to the European treaty permitting the free movement of services across the bloc. However, some European countries argue that they can prevent Maltese licensed operators from targeting customers in their markets, noting a 2017 European Commission decision.
Some operators are still refusing to pay for judgements against them in countries such as Germany and Austria, leading international lawyers to start legal proceedings against them in Malta.
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#Breaking News
1.??????Glitnor Group enters “important and exciting phase” with Richard Brown as CEO
Glitnor Group has significantly strengthened its senior leadership team after naming Richard Brown as its new Chief Executive Officer.
Brown previously held the role of CEO at Gaming Innovation Group (GiG), having stepped down in May of this year. He is expected to begin his tenure at Glitnor Group in January 2024.
His appointment, Glitnor Group explained, marks the beginning of “an important and exciting next phase for the business” as the igaming company continues to eye up expansion opportunities in new markets.
J?rgen Nordlund, Co-founder at Glitnor Group, said: “By appointing Richard, I believe Glitnor has secured one of the industry’s top C-level talents and I’m looking forward to the positive impact he’ll have on our business as we look to strengthen our brands and enter more markets in the future.
“Given the successful nature of his time at GiG and the wealth of igaming experience he has in general, I’m certain Richard has all of the necessary skills to help take Glitnor to a new level and I think I speak for everyone when I say we can’t wait to work with him as we enter our next phase of development.”
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2.??????Chelsea FC ‘in talks’ with Stake.com despite PL gambling ban
Chelsea are in talks with gambling company Stake.com to become their new shirt sponsor despite the incoming ban on such deals in football.
The Premier League confirmed in April that having gambling sponsorships on shirt fronts would be prohibited after the 2025-26 season though they will be allowed until then leaving a window for clubs to still carry the logos of betting brands prominently.
Chelsea have been looking for a new main partner to replace Three whose three-season agreement ends this summer and included an attempt by the mobile network to cut ties with the club after former owner, Russian Roman Abramovich, was sanctioned last year.
Discussions have been held with a number of potential alternatives including German financial services company Allianz.
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3.??????Cura?ao will hold operators to international standards with new licences from 1 September
Cura?ao will start issuing direct licences to gambling operators and will hold them accountable to internationally recognised standards from 1 September. Finance minister Javier Silvania revealed Cura?ao’s decision to expedite the regulatory reform process today (22 June) during iGaming NEXT Valletta 23.
Silvania said he has become increasingly aware of “troubling corporate behaviour” in recent months that warrants “immediate action”. Cura?ao first announced its intention to overhaul the regulatory regime for the iGaming industry and abolish the current system of master and sub-licences last summer.
The new law, called the National Ordinance on Games of Chance (LOK), is currently progressing through the parliamentary process. Earlier this month, the LOK was presented to the country’s Council of Advice, the final step before presenting it to parliament.
While he is satisfied with the progress, he said “lax practices within gambling operations, particularly concerning AML measures, fraud prevention and player protection” can no longer be tolerated.
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4.??????Finland to end gambling monopoly by 2026
Along with joining NATO, Finland’s new centre-right coalition government has announced that one of its top priorities is to end the nation’s current gambling monopoly by 2026 and replace it with a multi-licence, fully regulated system.
Hitherto, Finland has only allowed a state-run monopoly called Veikkaus–formed from a 2017 merger of the Veikkaus football pools, slots operator Raha and horse racing totalizer Fintoto–to run in the country.
But now the aim is to break Veikkaus up into a number of verticals offering a wider range of online casino games, sports betting and wider iGaming.
Top priority of the impending gambling reform would be to tackle and ameliorate the potential negative financial and social impacts of irresponsible, unregulated, gaming.
According to government sources: “Our current gambling policy is just not working.”
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5.??????Kambi Group & LeoVegas sign multi-year renewal partnership
Kambi Group today announced a multi-year extension to its online sportsbook partnership with LeoVegas Group, one of the world’s leading online gaming operators.
Under the terms of the agreement, Kambi will continue to provide LeoVegas Group with its market-leading sportsbook technology and services, including its award-winning AI-powered trading and Bet Builder product.
The agreement is the second renewal of the successful partnership first signed in 2016 during which time LeoVegas Group has continued to expand its range of Kambi-powered sports betting brands to now include BetUK and Expekt as well as LeoVegas.
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6.??????DraftKings submits late bid to purchase PointsBet’s US operations for $195m
Sports gambling powerhouse DraftKings
Sports gambling powerhouse DraftKings has made a $195 million, all-cash offer for PointsBet’s U.S. assets, it said on Friday, topping an earlier bid by Fanatics.
Fanatics in May agreed to buy the Australian company’s U.S. operations for $150 million in an effort to boost its presence in sports gambling.
“While we continue to focus on operating more efficiently and driving substantial organic revenue growth in the United States, we will also look to prudently capitalize on compelling opportunities at attractive valuations, as is the case with PointsBet’s U.S. business,” said DraftKings CEO Jason Robins in a statement. “We believe DraftKings is uniquely positioned to submit this superior proposal due to our scale and corresponding ability to generate meaningful synergies from the acquisition.”
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7.??????iGaming NEXT raises seven-figure investment round to propel growth
iGaming NEXT, a leading trade media and events company for the online gambling industry, has raised a seven-figure investment round to accelerate future growth and expansion.
The funding round was spearheaded by xace.io, an esteemed payments processing service, marking a significant milestone in iGaming NEXT’s expansion.
Xace founder and CEO David Hodkinson said: “We are thrilled to be investing in this exceptional company. “The dedication and work ethic demonstrated by the iGaming NEXT team is truly remarkable and evident through their growth to date. “We have no doubt they’re destined for great things, and we are delighted to be involved in their journey,” he added.
Alongside xace.io, new investors such as the M&A advisory firm RB Capital, the reputable fund happyhour.io and NeoGames president Tsachi Maimon made substantial contributions.
“It has become increasingly evident over the last few years that iGaming NEXT is positioned to become the next big media powerhouse within the iGaming industry,” said Maimon.
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#US / Canada
8.??????Michigan online gambling revenue hits $185.8m in May
Online gambling gross receipts in Michigan reached $185.8m in May, an improvement on last year but the second consecutive month of decline.
The combined total from igaming and sports betting across commercial and tribal operators was 15.5% ahead of $160.9m in May 2022. However, this was 5.1% less than the $195.7m generated in April of this year.
Online casino gaming gross receipts amounted to $150.6m, up by 18.2% year-on-year, while gross sports betting receipts climbed 5.1% to $35.2m.
It was also reported that total sports betting handle for the month amounted to $288.3m, a 15.0% drop on last year and a 10.7% decline from April.
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9.??????Pennsylvania posts $479.3m in revenue for May
The US state of Pennsylvania has posted its monthly revenue figures, showing a 7% increase for May 2023 – totalling $479.37m. Furthermore, sports betting revenue for Pennsylvania also saw a rise, with $41.1m reported – representing a 17% increase on last year.
Statewide slot machine revenue saw an incremental increase of 3% annually, posting $210.9m against May 2022’s $205.6m. Pennsylvania also posted its iGaming revenue, which totalled $140.9m – 24% up from 2022’s $113.3m.
However, table games suffered an 8% fall year-on-year, with May 2023 reporting $81.6m against 2022’s $88.5m.
Pennsylvania is one of the US’s largest gambling markets. Seeing its sports betting number continue to increase is no surprise, as the state is famous for its love of sports. However, the fall in retail table games comes as a surprise, especially with retail slots holding firm with an increase of 3%.
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10.??NJ gambling revenue continues to rise in May despite land-based declines
Gambling revenue in New Jersey increased month-on-month and year-on-year during May despite the state’s land-based market experiencing further declines.
Total revenue for the month amounted to $470.9m, which was 9.4% ahead of $430.6m in May 2022 and 1.8% higher than $462.7m in April of this year.
Land-based gambling remained the primary source of revenue at $227.3m, but this was down 2.4% from $227.3m last year. Within the retail sector, slots revenue slipped 0.8% to $172.9m, while table games revenue also fell 7.3% to $54.4m.
In terms of internet gambling, revenue increased by 18.7% year-on-year to $161.4m. Online slots revenue jumped 19.0% to $159.1m, while peer-to-peer poker also edged up 1.7% to $2.4m.
#M&A & Finance
11.??Better Collective elevates 2023 targets
The updated financial targets for the year come after a positive momentum gained in the first quarter that is expected to continueCoins stacked in multiple piles getting higher and higher symbolizing financial growthImage Source: Shutterstock.com
The fast-growing digital sports media group, Better Collective, released a new trading update Wednesday, confirming a change in its financial targets throughout the rest of the year. The recent announcement acknowledges the positive momentum gained by the company from the first quarter of 2023 that helped supercharge its performance in the second quarter as well.
Previously, Better Collective unveiled that it anticipates its revenue in 2023 to be between €305 million ($333.9 million) and €315 million ($344.9 million). Now, in light of the record-breaking Q1 2023 results, the company updated this expectation, setting it between €315 million ($344.9 million) and €325 million ($355.8 million). If indeed the projected revenue for the year hits those values, year-over-year revenue growth between 17% and 21% is expected.
#Legal & Regulation:
12.??Danish tax court loosens regulator’s confidentiality rules
The Danish National Tax Court has ruled that the country’s gambling regulator Spillemyndigheden will not be subject to enhanced rules on confidentiality.
Spillemyndigheden said that the new rules will affect what the regulator is able to comment on in future, as well as what information it can supply.
The case that led to the court’s decision concerned whether the regulator would be able to refuse a request to access documents. The individual asked whether Danske Spil, Landbrugslotteriet or Varelotteriet have applied for new games that can be considered class lotteries.
The court ruled that – as the Gambling Act cannot be considered a tax law – the stricter duty of confidentiality did not apply.
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13.??BOS survey suggests “critically low” channelisation rate of 77% in Sweden
A survey commissioned by Swedish online gambling association BOS suggests the rate of channelisation in Sweden’s regulated gambling market is just 77%.
The survey was undertaken by Swedish market research firm SKOP, using responses from 3,000 selected players who have gambled online at some point during the last quarter.
Separate results were collected for different verticals within online gambling, covering lottery games, online casino, online poker, horse racing betting, sports betting and bingo.
The results of the survey showed an overall channelisation rate of 77% across all online gambling verticals.
Of all the verticals included in the survey, online casino showed the lowest rate of channelisation at 72%. Online poker, which was assessed separately, also showed a rate of 72%.
Sports betting showed a channelisation rate of 84%, while horse racing betting specifically saw a rate of 89%.
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14.??René Jansen: European igaming demands cooperation on supervision
Kansspelautoriteit (KSA) Chairman René Jansen has warned European regulatory counterparts and lawmakers that “international cooperation is still required in the field of online gambling”.
This notice was issued as Jansen concludes his tenure as chair of the Gambling Regulators’ European Forum (GREF), set to be succeeded by Isabelle Falque-Pierrotin, the President of l’Autorité Nationale des Jeux (ANJ) – France’s unified gambling authority.
GREF recently concluded its annual conference in Bergen, Norway, which was attended by 90 representatives from 30 countries, providing insights and opinions on the dynamics impacting the regulation of gambling across Europe.
As the Chairman of Dutch gambling, Jansen thanked GREF for “facilitating international dialogue among regulators, providing a platform for sharing knowledge and discussing challenges in their respective markets”.
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15.??Germany’s GGL cancels Tipster’s sports betting licence
Germany’s GGL has revoked Tipster’s sports betting licence after the company filed for bankruptcy. Tipster first hit the headlines in April when it was targeted in a large-scale police raid as part of a global investigation into illicit gambling, money laundering and tax evasion.
Following a regulatory inspection, the German gambling regulator concluded that Tipster no longer met the requirements for legal operation. As a result, the company has been removed from the official whitelist of authorised operators.
GGL co-CEO Ronald Benter stated: “We consistently take action against permit holders who violate fundamental rules of the State Treaty on Gambling.”
His colleague Benjamin Schwanke added that the GGL does not “hesitate to take action even against major players in the market.”