iGaming Wrap-Up of CW 26-27
#iGaming News of the week
0.??????PointsBet shareholders vote in favor of Fanatics' $225M takeover proposal for US division
The race for the acquisition of PointsBet's U.S. business has officially concluded, with shareholders having voted in favor of a proposed sale to Fanatics. The vote took place at an extraordinary general meeting late Thursday, with 99.16% of voters approving the sale and 0.84% voting against it. Shareholder approval will allow the sale process to move to the next stage. However, neither of the parties has set a completion date for the deal yet.
A Fanatics spokesperson said in a statement: "We are thrilled that the shareholders of PointsBet Holdings Inc. voted to approve our acquisition of the U.S. businesses of PointsBet. This is a pivotal moment for Fanatics Betting and Gaming that will accelerate our growth in the legal online sports betting, advance deposit wagering, and iGaming markets in the United States."
"Pending regulatory approvals in the various states in which PointsBet operates, we will have more details to share in the coming weeks on how the acquisition of PointsBet US businesses will bring to life our unique vision for Fanatics," the statement read.
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#Breaking News
1.??????Swedish court invalidates SEK6m penalty fee issued to ATG for AML shortcomings
Sweden’s Administrative Court has annulled a decision taken by the Swedish Gambling Authority (SGA) last year to issue ATG with an official warning and a SEK6m penalty fee.
The decision was made in November following “serious shortcomings” in ATG’s AML measures, after the SGA identified eight cases in which the operator had failed to sufficiently identify its customers and their source of funds.
Alongside ATG’s SEK6m penalty fee, Kindred Group subsidiary Spooniker was hit with a SEK10.9m fee and another operator, PinBet, was issued a penalty of SEK2m for similar failings.
Now, the decision against ATG has been overturned by Sweden’s Administrative Court. The Administrative Court ruled, however, that while some of ATG’s failings did constitute violations of the Money Laundering Act, they were not shown to be “systematic or repeated”.
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2.??????Chelsea abandons Stake.com negotiations of front of shirt sponsorship
Chelsea FC has pulled out of widely reported potential partnership with Stake.com following backlash from the club’s supporter’s trust.
The Premier League side was apparently nearing completion of a one-year agreement that would have branded the online casiono’s logo on the front of the team’s shirts for the upcoming 2023-24 season.
Whilst no statement or reasoning by the club has been forthcoming, Chelsea received scrutiny from the Chelsea Supporters Trust once the initial reports of the potential deal surfaced, believing any deal with Stake would make a ‘mockery’ of the Trust’s work on problem gambling awareness.
The statement read: “The Chelsea Supporters’ Trust does not believe that it is in the best interests of our members for Chelsea Football Club to associate with an online casino and betting company as the primary shirt sponsor.”
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3.??????Peru to legalise online gambling and sports betting
The government of Peru has promulgated Law 31806, which will legalise online gambling and sports betting in the country. The new legislation has been sent to the desk of president Dina Boluarte for sign-off and is expected to enter force within 120 days.
The law, which has been published in the national gazette, modifies existing gambling law to create a regulatory framework for an online market. The National Congress had judged new legislation to be necessary to close tax loopholes since there was no formal framework for the regulation of online gambling businesses. It aims to ensure tax collection from online gambling while preventing money laundering and promoting safe participation.
Peru’s Ministry of Trade and Tourism (MINCETUR) will oversee the launch of the new regulations and will license platforms and systems for remote gaming and sports betting and will grant .pe internet domains to businesses.
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4.??????Better Collective pays $54m for Playmaker HQ in latest US step
The Denmark-founded media publisher will pay $54m on a cash and debt-free basis, including an upfront cash consideration of $15m, deferred payments of $1m and performance-based earnout payments over a three-year period of up to $38m.
Playmaker HQ has been consolidated into Better Collective’s accounts from 3 July, and will have to generate $75m in accumulating revenues and $25m in EBITDA during its first three years as part of the Stockholm-listed group.
Marc Pedersen, CEO Better Collective North America, said: “We have been following Playmaker HQ for some time, and are excited to announce the transaction today. Playmaker HQ offers access to millions of sports fans in the US, the majority of which are new in the Better Collective user base.
“We are excited to help enhance these fans’ sports betting experience, while also being able to utilise Playmaker HQ’s know-how to scale the product and revenue stream across Better Collective’s global portfolio.”
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5.??????New York broker charged with insider trading after profiteering on Penn M&A
A New York City broker has been charged with insider trading on deals including Penn National Gaming’s $2.2bn takeover of Score Media and Gaming.
The acquisition, which completed in October 2021, saw Penn purchase the Toronto-based media company and adjacent theScore Bet sportsbook brand for use in Canada.
Jordan Meadow, a broker for Spartan Capital Securities, used insider information obtained by his friend Steven Teixeira to profit on the deal.
Meadow allegedly bought more than 769 call option contracts prior to the transaction, generating more than $5m in eventual profit for his clients, according to the allegations.
The charges against Meadow were made public on 29 July 2023 as US federal prosecutors continue to aggressively clampdown on the crime.
Meadow pleaded not guilty to several counts of securities fraud and one count of conspiracy in a hearing on Thursday afternoon in Manhattan. He was released on a $1m bond.
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6.??????New York sports betting surpasses $25 billion handle milestone in record time
Since the launch of legal sports betting in New York in January 2022, the state has surpassed all expectations by reaching a total handle of over $25 billion in just 16 months.
This milestone sets a record for the fastest time taken to reach this figure, surpassing the previous record held by New Jersey, which took about 47 months. Nevada remains the only other state to have accepted as much as $25 billion in sports bets due to its long-standing retail sports betting market.
The success of New York's sports betting market has brought significant benefits to the state. As of June 2023, the state has collected an impressive $983.5 million in taxes from sports betting. This is due to New York's tax rate of 51% on adjusted gross gaming revenue, the highest rate in the United States.
With the current pace, New York is on track to surpass neighboring New Jersey in terms of historic total handle. Despite launching online sportsbooks ahead of New York in 2018, the Garden State has reported just over $38 billion in total bets accepted.
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7.??????Macau Casinos Win $1.88B in June
Macau casinos in June 2023 generated gross gaming revenue (GGR) of MOP15.21 billion (US$1.88 billion), a 2.3% month-to-month decline but still the market’s second-best month since January 2020.
Macau, the only place in China where casino gambling is allowed, only recently began its COVID-19 comeback. The market’s six commercial gaming operators waited patiently for China President Xi Jinping to end his controversial “zero-COVID” scheme that kept life on hold on the mainland long after much of the world returned to a sense of normalcy.
June’s revenue tally marked a 514% year-over-year surge on June 2022 when the enclave’s casinos won just $310 million. June 2023 marked Macau’s second-best revenue month since the coronavirus emerged after May 2023 when the six casino operators won $1.93 billion.
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#US / Canada
8.??????NFL bans four players for breaking league's gambling rules
The NFL suspended four players for allegedly violating the league's gambling policy by either betting on NFL games or non-NFL games while at league facilities, following similar suspensions for another six players earlier this year as the league enforces its zero-tolerance gambling rule through significant penalties.
Indianapolis Colts players Isaiah Rodgers and Rashod Berry, as well as free agent Demetrius Taylor were suspended indefinitely—but at least until the end of the 2023 season—the NFL announced Thursday.
Rodgers, Berry and Taylor were said to have been betting on NFL games during the 2022 season while playing in the NFL.
All three will be able to petition to be reinstated at the end of the 2023 season.
Tennessee Titans player Nicholas Petit-Frere was suspended for the first six regular season games of the 2023 season, after he reportedly bet on non-NFL sports at NFL facilities, the league said.
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9.??????New Jersey considers five-year extension for igaming
A bill to extend internet gambling in New Jersey for another five years is in the hands of Gov. Phil Murphy, following its approval Friday by the state Legislature.
The measure was approved by the state Assembly and Senate with minimal opposition from lawmakers, and now goes to the Democratic governor for action.
But the approval did little to dispel the mystery surrounding unexpected and unannounced changes made to the bill earlier last week that have rankled the Atlantic City casino industry.
Internet gambling began in New Jersey 10 years ago. The original renewal bill would have extended it for another 10 years.
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10.??Ohio attracts criticism for doubling sports betting tax rate to 20%
Ohio Governor Mike DeWine has raised the state’s sports betting tax rate to 20% in his 2024-2025 executive budget.
This means that all licensed sports betting operators in the state will have to pay double the initial agreed tax of 10% on sports betting revenue from 2024 onward.
DeWine is set to sign the raise into the budget this week.
The amendment from 10% to 20% was proposed in DeWine’s budget bill, titled House Bill 33. This was introduced in the state House earlier this year.
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11.??Michigan Gaming Control Board to receive $50.7m in state budget funds
The Michigan Legislature approved the state's Fiscal Year 2024 budget on 28 June, which includes $50.7m set aside for the Michigan Gaming Control Board (MGCB).
The MGCB's "Don't Regret the Bet" responsible gaming messaging campaign, which was released earlier this year and offers advice and information to Michigan residents, will be supported by an allocated $3m in ongoing, annual funding as part of the agreement.
Henry Williams, MGCB Executive Director, said: “A well-funded gaming control agency is crucial for ensuring fair and honest gaming in the State of Michigan, preventing fraud and illegal activities, and addressing problem gambling.
“I sincerely appreciate the support from Governor Whitmer and the Legislature of a budget that will help the MGCB continue its responsible gaming messaging campaign, support our state’s growing gaming economy and allow us to grow our team and make investments into efficient systems that help strengthen our mission and integrity while supporting those we serve.”
#M&A & Finance
12.??Entain exits talks to acquire ?portna Loterija Slovenia
Entain Plc has pulled out of negotiations to acquire a majority stake in Slovenian monopoly sportsbook operator ?portna Loterija.
The FTSE100 gambling group confirmed to STA, Slovenia’s Press Agency, that it had ended?negotiations with the Ministry of Finance. The announcement comes after the Ministry of Finance stated on Friday that all applications to acquire a stake in ?portna Loterija had been withdrawn.
Entain provided no further information about the decision or any potential plans to enter the Slovenian market at a later stage, simply stating “we can confirm that after careful consideration, Entain has decided not to proceed with the acquisition of a stake in ?portna Loterija for now”.
STA reported that Entain was allegedly planning to carry out the deal with some Czech businessmen and offering between €50-to-€60m.
https://sbcnews.co.uk/sportsbook/2023/07/05/entain-exits-talks-to-acquire-sportna-loterija-slovenia/
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13.??Golden Matrix reduces upfront cash cost of MeridianBet acquisition by $20m
Golden Matrix Group Inc (GMGI) has amended the terms of its previously announced acquisition of MeridianBet Group.
GMGI is a Nasdaq-listed iGaming and ecommerce company based in Las Vegas, offering a combination of B2B and B2C products.
The firm’s B2B division develops and licenses proprietary gaming platforms for an “extensive” list of clients, while its B2C division RKings operates a high-volume ecommerce site enabling users to enter paid-for prize draw competitions in authorised markets.
While the original acquisition was expected to close in the first half of 2023, the amended deal extends that closing date while also modifying certain terms of the previously announced agreement.
Among other changes, the cash required to be paid by GMGI at closing has been reduced from $50m to $30m.
#Legal & Regulation:
14.??Sweden told to impose credit ban on all gambling transactions
The Swedish Ministry of Finance, Finansdepartementet, has called for a government blanket ban on all credit card transactions used for gambling.
In a roughly 650-page report titled “Enhanced consumer protections against risky lending and over-indebtedness”, the watchdog explores the current consumer credit arrangements and protections in the market from 2021 onwards.
“Today, debts at the Swedish Enforcement Authority amount to 101 billion kronor (+ €9bn), while debts at collection agencies amount to just over 102 billion kronor. These are historically high figures,” the report said.
Sweden’s Finansdepartementet found that some licensed companies have offered credit indirectly through third-party services, which constitutes a loophole in the country’s Gaming Act (2018) that prohibits credit use across most gambling segments.
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15.??Netherlands and Belgium advertising bans now in effect
A ban on gambling advertising is now being implemented in Belgium and the Netherlands, with the measure taking effect from July 1.
Though the two countries differ in the extent to which gambling ads and marketing activities are banned in their respective jurisdictions, both share the same goal of protecting children and minors from gambling addiction.
Belgium was the first to announce plans for extensive advertising reforms, with Justice Minister Vincent Van Quickenborne putting forward a proposal for an outright ban on gambling advertising in May 2022. Two months later, the Netherlands came up with its own advertising restrictions, courtesy of Minister for Legal Protection Franc Weerwind.
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16.??GGL leadership changes after ‘successful first half’ to 2023
The leadership of Germany’s Gluecksspiel (GGL) is ‘ready to go’, Board Member Benjamin Schwanke has asserted to national stakeholders, six months into the federal gambling regulator’s operations.
In a series of updates this week, the GGL has provided an annual report into the workings of the German betting and gaming market since the imposition of the Fourth Interstate Gambling Treaty (GlüNeuRStv) in 2021 as well as during H1 2023.
The regulator has also informed that there has been a leadership change. Udo G?tze, State Secretary in the Thuringian Ministry of the Interior and Municipal Affairs, will take on Chairman duties from J?rg Sibbel, State Secretary in the Ministry of the Interior, Municipal Affairs, Housing and Sport of Schleswig-Holstein, on 1 July.
G?tze commented: “All 16 states support the GGL with conviction. Regulating the transnational gambling market in Germany is a challenging task. The GGL can also be sure of the support of the sponsoring states under the chairmanship of the state of Thuringia.”
17.??Apple’s Vision Pro provides a glimpse of the future and presents major opportunities for iGaming
Tristram Bates, head of mobile engineering at mkodo, assesses Apple’s latest products for use in iGaming, from the trending Apple Vision Pro to the potentially game-changing iPhone ID.
The Apple Worldwide Developers Conference (WWDC) takes place in June every year, showcasing new software and technologies for Apple’s different products.
It’s an event that plays a big role for most industries, as it can lay the foundation for future innovation, based on the new functionalities introduced by the tech giant.
Over the last five years, Apple has thrown several curve balls at the betting and gaming sectors, including updating its guidelines to ban side-loaded HTML5 games content in real money gaming apps, forcing operators to create native apps.
As developers of digital products, we at mkodo follow the announcements that come out of the WWDC closely to be able to further evolve our product offering and push the boundaries when it comes to delivering gambling apps.