iGaming Wrap-Up of CW 28-29 2024
#iGaming News of the week
0.?????? Las Vegas' iconic The Mirage resort closes after 34 years to make way for Hard Rock Hotel & Casino
On Wednesday, The Mirage Hotel & Casino in Las Vegas closed its doors permanently, marking the end of a 34-year legacy. Known as the first mega-resort on the Strip, The Mirage revolutionized the casino business model with its focus on non-gaming amenities such as entertainment, dining, exotic animals, and free attractions.
The final night was a mix of celebration and nostalgia. Smiles and laughter turned to tears and hugs as staff, guests, and locals bid farewell to the iconic property. The hotel’s renowned volcano show, which usually runs between 8 p.m. and 11 p.m., erupted one last time at 11:30 p.m., concluding with applause from spectators.
The Mirage, which opened on November 22, 1989, under casino mogul Steve Wynn, will be replaced by the Hard Rock Hotel & Casino Las Vegas and Guitar Hotel Las Vegas.
MGM Resorts acquired the property from Wynn in 2000, which was later sold to Hard Rock International, owned by the Seminole Tribe, for $1.1 billion in 2022. Originally designed by Wynn to resemble an oasis on the Las Vegas Strip, The Mirage featured notable attractions such as Siegfried and Roy’s white tiger show and a Cirque du Soleil show set to Beatles music.
#Breaking News
1.?????? UKGC said Allwyn parent Russian links not relevant to National Lottery tender
A NEXT.io freedom of information request has revealed the Gambling Commission did not believe Allwyn Entertainment parent company’s links to Russian state enterprises relevant to its ￡6.5bn National Lottery tender bid.
NEXT.io requested all UKGC email correspondence between it and Allwyn regarding the latter’s parent company’s links to Russian state enterprises during the UK National Lottery tender process.
The documents include previously unreported details of how Allwyn managed the issue of its holding company’s Russian ties during its application.
The connections resulted in a public controversy in 2022 after Allwyn was announced as the Commission’s Preferred Applicant, unseating Camelot, which had held the National Lottery licence since its inception in 1994.
Allwyn’s parent KKCG fully severed all remaining Russian ties in June 2024. The holding company is controlled by Czech billionaire Karel Komárek, who has long had interests in the energy sector.
2.?????? NBA announces $76bn broadcast deal
The NBA has netted a record broadcast deal with ESPN, ABC, NBC and Amazon.
Worth $76bn, the multi-year media partnership will begin at the start of the 2025/26 season and has been described as one of the most valuable in all of sports.
There is one noteworthy admission, however, as TNT Sports lost rights for the NBA in the last negotiation period and will not broadcast the league for the first time since 1989.
ESPN, NBC and Amazon’s Prime Video – the league’s first exclusive streaming partner – will receive a lion-share of regular season games. It is believed that once the NFL season concludes in February, NBC and Amazon will replace NFL timeslots for NBA games, maximising potential viewership.
Prime Video is also expected to show a majority of its regular season games on Friday and Saturday nights whilst another streaming platform, NBC’s Peacock, will also stream live games on Tuesdays, with NBC’s programme predominantly broadcasting games on Mondays.
3.?????? New KSA President backs ‘Globalised approach’ against Black Market threats
Michel Groothuizen has delivered his first address as Chairman of Kansspelautoriteit (KSA), the Netherlands’ Gambling Authority, opening the iGB Live, Amsterdam Conference (16-19 July).
Beginning his tenure as KSA chairman on 1 July, Groothuizen told delegates: “I am probably entirely new to you, the gambling market is not entirely new to me,” referencing his casework in 2015 with the Ministry of Justice to establish the KSA as Dutch gambling’s new authority.
“A lot has happened since I worked on the file and so there is still a lot for me to learn. I look forward to the conversations I will have today and in the future with gambling operators, international regulatory colleagues, legislators, and regulators, among others, many of whom I am sure are already here.”
4.?????? Evoke reports Q2 2024 revenue of $￡431m, adjusts FY24 expectations
Evoke has released its trading update for the first half of 2024, reporting mixed results that have led to revised expectations for the fiscal year.
For the second quarter of 2024, Evoke reported revenues of approximately ￡431m ($560m), remaining stable both sequentially and year-on-year. The UK online sector saw a 3% revenue increase, driven by a 6% growth in gaming due to product and promotional improvements.
However, sports betting faced challenges from marketing and proposition changes in 2023 and lower-than-expected returns from Q1 promotional activities. Adjustments in leadership and commercial strategies, including a new pricing and promotions approach, have begun showing positive early results.
Internationally, Evoke's revenue grew by 2% (4% in constant currency), with significant growth in key markets like Italy, Spain and Denmark, which now comprise about 60% of the division's revenue.
5.?????? UK gambling looks to strengthen ties to new government
As the political evolution in the UK continues and the dust settles on a dominant Labour general election win, Bacta has put plans in motion for increased collaboration with the country’s new leadership.
The trade body revealed that its initiative began as soon as the outcome of the Election was confirmed. Key to the plans and securing a strong future for growth of the sector was systematically mapping out members’ venues against their constituency MPs.
Expanding on the initiative Bacta Executive Director George McGregor stated: “This is the first occasion in the two decades that I have worked with Bacta that we have systematically mapped MPs with Members. We have used the general election outcome to create a geopolitical footprint for the industry.
6.?????? Illegal market outstrips licensed French gambling, AFJEL warns
French online gaming association AFJEL says Euro 2024 handle for its members fell far below pre-tournament estimates amid a rise in illegal gambling in the country.
The illegal gambling problem has reached a tipping point, l’Association Franc?aise des Jeux En Ligne (AFJEL) warned, with illegal players totalling four million in 2023, ahead of the regulated sector’s 3.6 million.
While French gambling regulator l’Autorite Nationale des Jeux (ANJ) predicted €1bn would be wagered on the tournament, AFJEL said around half of that figure was staked.
Instead, the association betting volumes were stagnant compared to the last European Championship in 2021. After that tournament, when France was eliminated in the second round, online punters wagered €343m. This would be increased to around €500m when La Francaise des Jeux’s retail network was included.
7.?????? Bally’s secures $2.07bn GLPI funding for Chicago casino project
Bally’s Corporation has announced a partnership with Gaming and Leisure Properties (GLPI) to secure $2.07bn in funding for its Chicago casino and entertainment complex. This collaboration will facilitate the development of a 500-room hotel tower as part of a single-phase project, slated for completion by September 2026.
The agreement includes GLPI acquiring the real estate for the project and providing up to $940m in construction financing.
The updated site plan features the hotel tower on the southern end of the 30-acre site, addressing concerns about underground infrastructure.
The complex will include a 3,000-seat theatre, multiple dining options, a public park and extensive gaming facilities.
#US / Canada
8.?????? FanDuel and NY Racing Association settle contract dispute
FanDuel and the New York Racing Association (NYRA) have reached a resolution in their contract dispute.
The agreement will allow pari-mutuel wagering on the NYRA’s live racing content to return to FanDuel’s online betting platforms. It follows news earlier this month that a contractual impasse had resulted in all NYRA content being removed from the Flutter-owned platforms.
FanDuel general manager, racing, Andrew Moore said: “We are happy to have reached a multi-year agreement with the New York Racing Association and to extend our 24-year wagering partnership.
“We look forward to the Saratoga meet and beyond and to supporting the good work of the NYRA Foundation.”
9.?????? Former Indiana legislator sentenced for accepting bribes from casino
A former Indiana legislator has been sentenced to prison by federal authorities for accepting bribes from a casino company, following an FBI probe.
Sean Eberhart, a 58-year-old Indiana resident, was sentenced to one year and one day in federal prison after pleading guilty to conspiracy to commit honest services fraud.
Eberhart, who will also be subject to an additional year of supervised release, served between 2006 and 2022 as the elected Republican representative of Indiana House District 57.
US Attorney for the Southern District of Indiana, Zachary A. Myers, said: “This criminal’s former constituents, and all Hoosiers, rightfully expect elected officials to act on the public’s behalf, and not to line their own pockets.
“Legislation must not be for sale to the highest bidder, especially when they have such a tremendous impact on our state and its economy.
10.?? New York judge denies Jontay Porter’s request to play overseas
Former NBA forward Jontay Porter has been denied a request to continue his career overseas following a guilty plea last week to federal charges related to a gambling scheme.
Judge LaShann DeArcy Hall has denied a request from Porter’s legal team to allow the former Toronto Raptor to play overseas for Greek Basket League member Promitheas BC. Porter requested to live in team-approved housing in Greece with his pregnant wife while under the supervision of his mother, mother-in-law, and potential new team.
Porter’s effort to play overseas has allegedly garnered support from the U.S. Attorney’s Office and U.S. Pretrial Services Officers but has been denied by Hall to adjust the conditions of his pre-sentence release allowing him to regain possession of his passport.
In a letter to Hall, Porter’s lawyers stated that Promitheas BC would allow the 24-year-old to travel back to New York for legal obligations, continue his existing problem gambling treatment program, which is administered virtually, and receive in-person counseling.
11.?? Iowa posts $147m in June sports betting handle
The Iowa Racing and Gaming Commission has released its sports wagering figures for the month of June. The state reported total handle of nearly $147m for the month.
Last month’s revenue fell by close to $36m month-over-month.
As of now, March’s $272m sports betting handle remains the sixth-highest on record since Iowa opened its sports betting market.
For June, sportsbooks statewide reported $12.5m in adjusted gross revenue (AGR).
Iowa players did well last month when it came to wager winnings, taking home close to $134m in earnings from their bets. Almost $125m of those wins came from bets that were placed online.
12.?? New Jersey: Sports betting decline fails to halt gambling revenue growth in June
A second consecutive month of year-on-year decline in sports betting revenue failed to halt overall growth in the New Jersey gambling market, with total revenue rising 7.4% in June.
Combined land-based casino, igaming and sports betting revenue in New Jersey hit $491.0m (￡378.6m/€450.3m) for June. This is clear of $457.2m in the same month last year but 3.7% behind the $510.0m posted in May this year.
Land-based casino again generated the most gambling revenue for New Jersey during June. In total, revenue in this segment edged up by 1.0% to $244.1m. This includes $184.0m in slot machine revenue, a rise of 0.6%, and $60.1m table games, up 2.5%.
#M&A & Finance
13.?? Cirsa takes 70% stake in Apuesta Total amid IPO rumours
Cirsa is set to become one of the largest gambling operators in Peru after purchasing a 70% stake in Apuesta Total.
The size of the transaction was not disclosed, but Cirsa said it would be funded through available cash and would not significantly affect its leverage.
The company added that the multiple paid for the acquisition is consistent with prior online deals it has undertaken.
The agreement also includes a put and call structure that would allow Cirsa to acquire the remaining shares within the next few years.
Since its founding in 2014, Apuesta Total has enjoyed robust growth, most recently reporting over €100m GGR in FY 2023.
14.?? Lotto24 publishes FY2023: Lottery revenue up 11% and squeeze-out imminent
Lotto24, a subsidiary of Zeal Network, has published its annual report for 2023.
The German eLottery company reported €885m ($967.7m) in income, marking a 16.7% increase from the year prior.
The lottery revenue in particular rose 10.8% to €115.4m, which can be attributed to the launch of online games on its platform.
In June 2023, the company launched slot games on both the Lotto24 and Tipp24 branded platforms.
These alone generated €41.6m in income and €39.6m in revenue.
Andrea Behrendt, Lotto24 AG CFO, said: "In 2023, we further expanded our position as market leader and our brand awareness. We are proud of the fact that the Lotto24 brand in particular has developed into a real hotbed of winners, producing more record winners last year than any other lottery provider in Germany.
15.?? Accel to acquire Illinois' FanDuel Sportsbook & Horse Racing, with plans for new casino
Illinois-based Accel Entertainment has entered into an agreement to acquire Fairmount Holdings, owner of FanDuel Sportsbook & Horse Racing in Collinsville, Illinois, for about $35 million. The deal will be paid in 3.45 million shares of Accel Class A-1 common stock, based on a 20-day trailing average.
The acquisition, announced on Monday, "extends Accel’s convenience gaming expertise to a larger, more concentrated venue," according to a press release. The property is the only active horse racing venue in greater St. Louis.
Fairmount generated $29 million in revenue for the year ending December 31, 2023, with modest Adjusted EBITDA. Accel plans to invest an additional $85 - $95 million to fund temporary and permanent casino construction and track improvements. The five-year forecast suggests an Adjusted EBITDA potential of $20 to $25 million with over 75% free cash flow conversion.
#Legal & Regulation:
16.?? Svenska Spel brightens commercial outlook following H1 Reorganisation
Svenska Spel states that it has achieved the ‘reorganisation objectives’ to lower group costs and improve operating margin, of the business units of Sweden’s state-owned gambling monopoly.
Filing its H1 interim report, Svenska Spel issued its first corporate update under the leadership of new Group CEO Anna Johnson, who stated: “We have carried out a review of organisation, working methods and costs. We have subsequently carried out a reorganisation of Svenska Spel with a new organisation in place from 1 April.”
H1 trading saw Svenska Spel shut down its loss-making Casino Cosmopol venues in the cities of Gothenburg and Malm?, a decision taken as part of a strategic review of the firm’s land-based operations and cost controls.
The restructuring of the Cosmopol unit saw Svenska Spel Q2 revenues stand at SEK 1.87bn, registering a 4% decline on 2023 comparatives of SEK 1.96bn. As it stands, the Cosmopol unit maintains one casino property operating in Stockholm, as the unit reduces its Q2 revenues to SEK 35m (€3m).
17.?? PAGCOR continues to elevate action against illegal igaming sites
The Philippines’ gambling regulator, Amusement and Gaming Corporation (PAGCOR), has continued to accelerate the country’s efforts to alleviate itself from the FATF grey list.
As a part of continued efforts to clean up the country’s gambling sector and provide the country with a clearer path to economic growth, it revealed that 74.78% of the illegal igaming websites so far detected have been blocked.
Ret. Gen. Raul Villanueva, President of PAGCOR’s Security Monitoring Cluster, has underlined the complexities of eradicating the black market.
He stated: “Of the 7,747 [illegal offerings], 5,793 [74.78%] were already blocked, and 1,954 are still active. “The payment blocking as of now based on my research, there’s no studies yet on payment blocking because some of these criminals use cryptocurrency as a mode of payment. And the banking system is very complex, offshore banking is very complex.
https://casinobeats.com/2024/07/17/pagcor-continues-to-elevate-action-against-illegal-igaming-sites/
18.?? ACMA blocks additional illegal sites in Australia
Australian internet service providers (ISPs) have been requested by ACMA to block more illegal gambling websites that have breached the Interactive Gambling Act 2001.
Among the latest websites blocked include Richard Casino and Wanted Win; both have been found to have either provided prohibited interactive gambling services and/or unlicensed regulated interactive gambling service to customers in Australia. Alternatively, they were found publishing ads for prohibited interactive gambling services or unlicensed regulated interactive gambling services in Australia.
ACMA's most recent ban was on Kayo, a sports streaming service owned by Hubbl, for showing gambling advertisements during live sports events outside the allowed time period. A total of 16 different gambling advertisements were found across 267 live sports events between 5am and 8:30pm, in which gambling advertisements were not allowed during said time period.