iGaming Wrap-Up of CW 25-26 2024
#iGaming News of the week
0.?????? LeoVegas buys Tipico US to advance MGM’s standalone vision
MGM Resorts has reached definitive terms to acquire the technology platform of Tipico US, a deal managed by LeoVegas AB. Tipico US technology platform will be merged with LeoVegas, advancing MGM’s plans to operate a “purpose-built proprietary sportsbook across all international markets and brands.”
The acquisition marks LeoVegas’ second strategic investment to develop MGM’s new online gambling offering, independent of the BetMGM joint venture, operated in the US by Entain Plc.
The deal sees DACH-markets leader Tipico Sportwetten wind down its US business, which has operated in the states of New Jersey and Colorado since 2020. H1 trading saw CVC Partners owned Tipico, announce to markets that it had placed its US business under review, with MGM reported as the likely buyer.
LeoVegas informed that it will “acquire certain of Tipico’s US-facing management, technology, and trading teams across the US, Colombia, and Europe.”
The acquisition of Tipico US platform was led by LeoVegas CEO Gustaf Hagman who remarked: “By controlling our own sportsbook technology, we ensure that we will deliver the world’s greatest iGaming experience to customers across all our markets and brands.”
#Breaking News
1.?????? Google halts RMG expansion on Play Store due to regulatory challenges
Google has paused its experiment to allow new types of real-money games (RMG) on the Play Store, citing challenges due to the absence of a central authority to approve such apps in certain regions.
In January, Google had announced plans to allow more types of RMG apps on the Play Store and to begin levying a service fee on them. This initiative was set to start in India, Mexico, and Brazil at the end of June 2024, with future expansions planned for other countries.
TechCrunch reported that Google is keen on supporting more types of RMG apps on the Play Store, but it has faced issues identifying the type of games allowed in markets that don’t have a central body to approve such apps.
A Google spokesperson said: “Expanding our support of real-money gaming apps in markets without a central licensing framework has proven more difficult than expected and we need additional time to get it right for our developer partners and the safety of our users.
2.?????? Simplebet reports 75% growth in NBA micro-betting
Simplebet has reported substantial growth during its third NBA season.
The provider facilitated nearly $325m in bets across its operator partner base, witnessing close to 13 million bets placed throughout the NBA season across its suite of in-play NBA markets. This represents a growth of approximately 75% compared to the previous season.
The NBA playoffs this year, featuring 86 playoff and play-in games, significantly contributed to this growth.
The "next Field Goal-type" market – where users predict the next shot by a specific player – saw particularly high interaction.
Simplebet’s success this season highlights the increasing popularity of in-play micro-betting, which allows fans to engage with the game in real-time through contextually relevant opportunities and predictions.
Regarding these results, Simplebet CEO Chris Bevilacqua stated: “We were thrilled to witness the growth of fan engagement throughout this NBA season. Our commitment to providing innovative in-play betting options has allowed users to interact with the game in real-time, predicting their favourite players' next moves on the hardwood.
3.?????? DraftKings extortion lawsuit: Spanky claims plaintiff stiffed him out of winnings
Pro sports bettor Spanky has claimed on X that the DraftKings extortion lawsuit’s plaintiff failed to pay back winnings owed to him following joint participation in a betting scheme.
Famous sports betting influencer Gadoon “Spanky” Kyrollos was named in court documents as being part of an extortion plot involving sports betting giant DraftKings.
The filings accused DraftKings of leaking confidential information to Spanky as part of the scheme, which allegedly led to a masked man threatening the anonymous plaintiff’s life for $500,000 owed.
DraftKings strongly denies the allegations, arguing in a statement provided to NEXT.io that the complaint is full of inaccuracies and baseless allegations.
The company’s share price fell more than 5% to $38.00 after NEXT.io first reported the existence of the complaint, wiping out nearly $1bn in shareholder value.
4.?????? Catena Media scraps 2024 earnings forecast amid Google search changes
Catena Media has lowered its financial estimates for the current quarter and scrapped its 2024 forecast in the wake of Google’s organic search policy overhaul.
In a trading update, Catena said Google’s amendments, introduced in May, will reduce the effectiveness of some strategic media partnerships. The changes, the struggling affiliate marketing group said, will adversely affect the rankings of sports betting and casino content published by many major news media websites.
Catena said the Google update will reduce revenues and direct costs arising from some of the group’s media partnerships. In more positive news, there has been an offsetting effect in the form of higher traffic and organic search rankings for some of its owned and operated brands. The potential negative impact of Google’s changes was highlighted by Steve Ruddock at the start of May.
Catena said that as a result of Google’s changes it now expects revenue for the second quarter 2024 to be in the range of €12.5m-€13.5m. Meanwhile, adjusted EBITDA will be in the range of €0.5m-€1.5m.
5.?????? SkyCity sells $55m GiG stake as no longer “strategically necessary”
SkyCity has announced the decision to sell its stake in European-based online gaming platform Gaming Innovation Group (GiG).
The New Zealand-based operator – which was advised to “enter into an unconditional agreement” to sell off all its shares – said that from its 10% stake, proceeds from the sale would result in a net return of about NZ$55m after brokerage and legal costs.
This is a significant gain from the $40m the company paid in April 2022, with these? proceeds used to pay off existing debts, as part of the group’s plans in capital management.
SkyCity highlighted that the relationship with GiG remained valuable through the operation of SkyCity Online Casino in Malta. However, the shares had reportedly not been part of the group’s core operations and therefore “not considered strategically necessary”.
6.?????? Macau lawmakers urge government clarification on illegal mahjong gambling
The Second Standing Committee of the Legislative Assembly (AL) has requested for the Macau Government to “better define the scope of illegal gambling prohibitions” when it comes to playing mahjong “so that the public does not inadvertently break the law.”
As part of the discussion, Lawmaker Chan Chak Mo, President of the Second Standing Committee, has pointed out that some clubhouses and restaurants do offer free spaces for their patrons to play mahjong as a pasttime. “Is this considered illegal gambling?” The lawmaker asked, saying that a clearer definition is needed to address this. According to the new clause, anyone caught operating illegal gambling activities, including mahjong, can face imprisonment.
Another point to address is the proposed clause that allows residential premises to be searched between 9pm and 7am, in relation to illegal online and offline gambling operations or mutual betting, which the current Criminal Procedure Ordinance prohibits.
Lawmakers questioned this exception for illegal gambling while more serious crimes such as money laundering, terrorism and national security threats remained exempted. In response to the query, the Government representative said "it will consider this and remains open to amending the Criminal Procedure Ordinance or introducing similar provisions for other crimes."
7.?????? Brazilians bet over $3.7 billion in the first four months of 2024#
Between January and April 2024, Brazilians spent $3.7 billion on offshore online bookmakers. The figure is 32.14% higher than the same period in 2023, which was $2.8 billion.
The data were compiled by the website Aposta Legal Brasil from the balance of payments made available by Banco Central.? In addition to the increase in bets, the number of prizes also grew: players received $3.5 billion in the first four months of the year, compared to the $2.7 billion recorded in the same period last year.
The growth comes in the first months after the approval of law 14.790/2023, which regulated online gambling in the country and brought a series of regulations to the industry.
Other data reinforces the growth of the sector in Brazil. As reported by Yogonet, a survey commissioned by CNN to Datahub, a data analysis platform, showed that online gambling grew by 734.6% between 2021 and April 2024.
#US / Canada
8.?????? New York Casino Bidder Vows $250M Community Investment
A recent report highlighted that one of the bidders for New York's three downstate casinos vowed to invest $250 million in different community initiatives.
With three new downstate casino licenses up for grabs in New York, competition is fierce. So far, several recognizable gambling and entertainment operators have shown interest in developing a casino. Companies interested in submitting a license bid can do so by July 31, 2024, while the three new licenses are expected to receive approval by March 31, 2025, thanks to a lawmakers push that sought to accelerate the process.
One of the casino bids for a property in the NYC metro area represents a joint collaboration between the leading gaming and hospitality company, Caesars Entertainment, the entertainment company founded by the famous rapper Jay-Z, Roc Nation, and SL Green.
In a recent interview for amNewYork, Brett Herschenfeld, SL Green’s executive vice president, highlighted the benefits the Caesars Palace Times Square casino project would bring to local communities. The exec spoke about the extensive investment the companies are planning for communities and residents in the area.
领英推荐
9.?????? Dabble and Betr join Coalition for Fantasy Sports
The Coalition for Fantasy Sports (CFS) is adding two new operators to its membership.
The group that works to protect fantasy sports brands and players through innovation, responsible play, and access, has added Betr and Dabble. Betr, a micro-betting and media company, and DFS operator Dabble join PrizePicks and Underdog as CFS members.
“The coalition is thrilled to welcome Dabble to the Coalition for Fantasy Sports,” said CFS executive director J.T. Foley in a press release. “Their innovative approach and commitment to the fantasy sports community aligns perfectly with our mission. I’m excited to work with Tom and the Dabble team to drive progress and growth in the industry.”
Led by Tom Rundle as CEO, Dabble combines a social media experience with DFS by offering markets and a newsfeed that resembles X, formerly Twitter. Dabble also operates a sportsbook in Australia with a license from the Northern Territory Racing Commission.
10.?? US operators victorious in Beteiro GPS patent suit
The court agreed with the operators’ defence that Beteiro’s patents were just an abstract idea that lacked an inventive concept. It follows Beteiro opting to sue several leading US betting operators in 2021 and 2022, including DraftKings, bet365, BetMGM, Fanatics and FanDuel for the use of GPS technology in their platforms.
The three-judge panel said: “In the end, Beteiro’s claims amount to nothing more than the practice of an abstract idea using conventional (even as of 2002) computer equipment, including GPS on a mobile phone.”
It said it agreed with the New Jersey District Court’s judge Christine O’Hearn’s assessment of the patents as a “set of generic computer components”.?
DraftKings won its initial federal case in 2022, with Beteiro opting to appeal to the Federal Circuit.
11.?? TheLotter becomes fourth lottery courier to enter New York market
TheLotter is the fourth lottery courier to step foot into the Empire State, after Jackpot.com, DraftKings-owned Jackpocket and Lotto.com.
TheLotter first launched in 2002 in Europe, meaning it has been around for years longer than its competitors. But whereas Lotto.com, Jackpocket, and Jackpot.com are increasingly renowned names in the U.S., TheLotter has a comparatively smaller and more recent presence than the others.
The brand made its American debut in Texas in 2020, launched in Oregon later that year and added Minnesota in 2022. In the last few weeks, it added New Jersey, going live in the Garden State at the start of June just a week after Jackpot.com had also entered the state.
Just three weeks later, it expanded next door to move into New York, where the lottery market generates $8.3 billion in annual sales, making it one of the most lucrative lottery markets in the country.
12.?? Experts Say No California Sports Betting Shortcuts After Supreme Court Denial
Despite a favorable ruling for tribes in the US Supreme Court, there are no shortcuts when it comes to the process of legalizing California sports betting.
Financial analyst Carlo Santarelli speculated that tribes in the Golden State could potentially avoid ballot initiatives and get CA sports betting simply by amending their current gaming compact.
However, a veteran tribal gaming attorney and an industry source with knowledge of the US gaming landscape disputed that theory to LSR.
“Extremely slim to zero. For both legal and political reasons, that is unlikely to be a viable option. I think the legal analysis as to why it could be done without a (ballot initiative) is sketchy, and even if correct, would invite further unnecessary litigation,” Crowell told LSR.
https://www.legalsportsreport.com/188750/experts-no-shortcuts-on-california-sports-betting-timeline/
#M&A & Finance
13.?? Better Collective launches €20m share buyback Programme
This programme, slated to run until 5 September, is intended to fulfil future obligations related to acquisitions and long-term incentive programmes. The buy-back will be executed on Nasdaq Copenhagen and/or Nasdaq Stockholm.
The total purchases are capped at €20m or its equivalent in Danish Kroner or Swedish Krona. This amount corresponds to a maximum of 6,187,519 shares, each valued at €0.01 nominally.
“We are uniquely positioned to consolidate the digital sports media space. There are a lot of synergies to harvest in combining strong authoritative sports media with large viewerships and Better Collective’s core strengths of optimisation, conversion, and diverse business models,” co-founder and CEO of Better Collective Jesper S?gaard said at the time.
Earlier this year, Better Collective raised €145m to bolster its financial position in preparation for future acquisition opportunities.
14.?? Groupe Partouche H1 turnover rises 2.3% to €220.6m
Groupe Partouche has released its financial figures for H1 FY2024, covering November 2023 to April 2024.
Turnover for the period amounted to €220.6m ($235.77m), which represented a rise of 2.3% year-on-year, while gross gaming revenue (GGR) also rose 1.7% to €346.9m.
However, the group’s EBITDA did experience a decrease, falling 4% to €41.0m (18.6% of turnover) compared with the €42.7m (19.8% of turnover) reported in the same period last year.
Groupe Partouche’s overall current operational income (COI) fell during H1 2024, with hotels and land-based casinos taking a loss, with renovation works causing operating difficulties at a number of its casino establishments. Its online gaming operations in Meyrin, Switzerland and Middelkerke, Belgium both however underwent growth.
#Legal & Regulation:
15.?? UKGC reveals punters dismayed by affordability checks under FOI request
A public survey on affordability checks has been forced out of the hands of the UK Gambling Commission (UKGC) through a Freedom of Information (FOI) request.
Launched back in 2021, the entirety of the survey has finally seen the light of day thanks to advisory business Regulus Group and partner Dan Waugh who submitted the request for a second time after being shunned by the UKGC last year.
As reported by the Racing Post, the first attempt to get the UKGC to disclose the information in 2023 resulted in failure, with the UKGC saying there’s “no outstanding public interest”.
However, with the numbers now in the public domain, the decision to turn down the initial request may be interpreted by some observers to be intentional reluctance, as the results reveal an overwhelmingly negative reaction to the affordability checks – now referred to as ‘financial risk checks’ – whose pilot will commence this August as part of the Gambling Act 2005 review White Paper published in April 2023.
16.?? India leaves 28% GST online gaming tax in place
India’s 53rd Goods and Services Tax (GST) Council meeting produced all but good news for the igaming sector in the country.
During the hearing hosted by Nirmala Sitharaman, no hints whatsoever were given as to whether the 28% GST levy currently imposed on the full value of bets made on online games will be subjected to re-evaluation.
PM Modi’s cabinet first introduced the nation-wide tax hike back in October 2023, when it increased the previous GST levy of 18% to 28%.
Officially enforced in Kerala on 5 January by regional state governor Arif Mohammed Khan, the new tax has been gradually incorporated throughout the rest of India’s biggest economic centres, troubling the local gambling industry ever since.
The 28% GST tax is being slapped on every player deposit made to all online gaming providers, regardless whether it’s horse racing or casino that is on offer.
Previous efforts by the private sector to turn the tide in its favour by proposing the 28% GST levy to tax gross gaming revenue (GGR) instead of deposits have fallen on deaf ears.
17.?? Betsson secures gaming licences in Peru
Betsson AB has successfully obtained its first local gaming licences for the newly regulated market in Peru.
These licences cover both online casino and sports betting for the Betsson and Betsafe brands, marking a new milestone in the company's expansion in Latin America. Additional licences for the Inkabet brand are anticipated soon.
Betsson's journey in Latin America began in 2008, establishing itself as a recognised sports betting brand in Peru. The company's position was boosted in 2019 with the launch of its Betsafe brand.
Additionally, in 2021 Betsson acquired Inkabet, a Peruvian-facing sports betting and online casino business – a move that helped to further enhance its market presence. Regarding the newest licence acquisition, Pontus Lindwall, President and CEO of Betsson AB, stated: “We have really looked forward to Peru introducing a local regulation and are very pleased with the issuing of these licences.
#Tech:
18.?? Pragmatic Play expands DAZN Bet deal for Germany sportsbook launch
Pragmatic Play has announced the expansion of its partnership with DAZN Bet to launch a new sportsbook for the operator in Germany.
The release follows the successful initial rollout in Spain last October, with the extension into the German market having been facilitated through a licence acquired by Dazn Bet from the GGL back in August.
Daniel Berthold, Managing Director Germany, Austria, UK & New Markets at Dazn Bet, commented: “We are excited to announce the launch of our new sportsbook platform in Germany through our partnership with Pragmatic Play. The new platform provides us with a competitive set of features, tailored to perfectly meet the essential requirements to be successful in the German market. Our customers can now enjoy smoother journeys, exciting new functionalities and automated processes, all designed to enhance the overall betting experience."