iGaming Wrap-Up of CW 29-30 2024
#iGaming News of the week
0.?????? BGH asks EuGH about losses from unlawful sports bets
The legal dispute over the reimbursement of losses from unauthorized sports bets will be a case for the European Court of Justice (ECJ). The Federal Court of Justice (BGH) will clarify a question regarding the service provider's freedom of provision for the providers in this matter. The Karlsruhe proceedings against a claimant's lawsuit against Tipico have been postponed until a decision from the Luxembourg judges is made, the highest German civil court announced. (Az. I ZR 90/23)
In this specific case, a player participated in sports bets with Tipico from 2013 to 2018 and lost over 3700 Euro, which he demanded back. He considered the sports bets to be unlawful and the betting contracts to be invalid because the provider did not have the necessary permit from the competent German authority. The plaintiff's right to sue had been bought by the process financier Gamesright during the course of the proceedings.
Tipico lawyer Ronald Reichert evaluated the BGH decision as a great success. Only the ECJ can clarify Union law. He had already clarified a criminal case that the lack of a German license due to a non-transparent procurement process should not be opposed to licensed providers in the EU.
#Breaking News
1.?????? Philippines bans gambling operations catered to illicit Chinese players
The Philippines has announced plans to ban offshore gaming operators, targeting an industry that mostly caters to Chinese gamblers and has sparked growing alarm from law enforcement over its alleged connections to organized crime.
Known locally as POGOs, Philippine Offshore Gaming Operators have spawned across the country, both licensed and illicit, employing tens of thousands of Chinese and foreign nationals.
But in a state of the nation address Monday, President Ferdinand Marcos Jr. announced a total shutdown of the industry.
“Effective today, all POGOs are banned,” Marcos said to a standing ovation from lawmakers as he underlined the growing concern in the Philippines over the explosion of the offshore casino industry.
2.?????? UK’s Top Soccer Leagues Adopt New Code of Conduct for Betting Deals
English football will adopt a new Code of Conduct on ‘Gambling Related Agreements’, safeguarded by the FA, EFL, Premier League and Women’s Super League.
The Code, which will apply to the football authorities and clubs in the professional game, will be implemented at the start of the 2024/2025 season. Leagues and clubs must abide by the following four general principles on gambling sponsorships to ensure protection, social responsibility, reinvestment, and integrity.
Gambling Related Agreements will be applied to companies licensed by the UK Gambling Commission (UKGC) or companies licensed via a ‘white label partnership.’ Should a Gambling Related Agreement be undertaken with a company that is not licensed by the UKGC, the agreement must comply with the relevant requirements under the Gambling Act 2005 related to advertising and ‘unlawful gambling.’
3.?????? Study: Lower-income gamblers take more risks online
In a first-of-its-kind study from the University of California San Diego Rady School of Management, researchers have identified comprehensive insights into the positive and negative impacts of online gambling legalization on tax revenue and gambling behaviors in the U.S. They find it enhances state revenues, but increases irresponsible gambling, especially among lower-income consumers.
The authors of the working paper analyzed five years of data from a total of 32 states. They compared 18 states that changed online gambling policies to 14 states that did not have gambling policy changes using a generalized synthetic control framework, a method used by economists and data scientists to evaluate government policy changes as natural experiments.
“Our data show that online gambling legalization leads to more irresponsible gambling spending among lower-income consumers than among higher-income gamblers," said Kenneth C. Wilbur, professor of marketing and analytics at the Rady School and co-author of the study. “We define gambling irresponsibly as spending a high proportion of their income —for example, 10%—on gambling.”
4.?????? DraftKings Sells VSiN Back To Original Owners After Three Years
Three years after purchasing Vegas Sports Information Network, Inc. (VSiN) from the Musburger family, DraftKings is selling the network back to its founders.
VSiN founders Brian Musburger and Bill Adee will lead the brand going forward, according to a press release Monday. DraftKings acquired the Las Vegas-based sports betting radio and TV network for $70 million in 2021.
“DraftKings continues to optimize its investments in content and media to align with the most critical areas and needs of our business strategy, objectives, and goals,” DraftKings Chief Marketing Officer Stephanie Sherman said in a statement. “We want to thank Brian, Bill, and the entire team at VSiN for a great relationship, and we look forward to continuing to advertise on the network.”
5.?????? Kindred: ‘Very positive’ Q2 despite slight dip in casino revenue
Kindred has highlighted progress across its key figures in its financial results for the second quarter of 2024, but its casino product had a slight decline in revenue year-over-year, only showing an improvement when excluding North American operations.
Publishing its Q2 financials, Kindred declared a total revenue growth of seven per cent YoY to ￡327.6m (Q2 2023: ￡307.3m) with improvements seen in B2C and B2B operations in comparison to the same period the previous year. Excluding North America, total revenue improved by nine per cent YoY.
With its exit from the North American market operationally complete, CEO Nils Andén described the Q2 results as “very positive” and reaffirmed the operator’s full 2024 underlying EBITDA guidance of reaching ￡250m.
6.?????? Q2 2024: Kambi EBITDA jumps 25% ahead of new CEO handover
Kambi Group generated a 6.5% year-on-year revenue increase to €45.7m in Q2 2024, the last reporting period during which Kristian Nylén will act as the company’s CEO.
As previously reported, the executive will hand over the top job to former Sportradar chief Werner Becher as of tomorrow, 25 July.
Operating profit rose to €6.2m in Q2 2024, reflecting a 67% year-on-year increase and a margin expansion to 13.5% from 8.6% a year ago. Meanwhile, EBITDA increased 25% year-on-year to €16.1m. Cash flow, excluding working capital and M&A activities, surged to €8.1m in Q2 2024 from just €0.1m a year earlier. Earnings per share (EPS) also saw notable growth, with Q2 2024 EPS rising to €0.155, up from €0.083 in Q2 2023.
7.?????? Las Vegas Sands announces net revenue of $2.76bn for Q2 2024
Las Vegas Sands has released its financial figures for the second quarter of 2024, including a net revenue of $2.76bn for the company. The figure represents an 8.7% increase year-over-year as net income also saw an increase from its Q2 2023 figure of $368m, being reported at $424m for the second quarter of 2024.
"Our financial and operating results for the second quarter of 2024 reflect growth in both Macao and Singapore compared to the second quarter of 2023,” Las Vegas Sands Chairman and CEO Robert Goldstein said.
“We remain enthusiastic about our opportunities to deliver industry-leading growth in both markets in the years ahead, as we execute our substantial capital investment programs in both Macao and Singapore.”
Consolidated adjusted property EBITDA was $1.07bn for Q2 2024 compared to $973m for Q2 2023. Operating income increased 10% year-over-year, having been reported at $591m for the second quarter of 2024.
#US / Canada
8.?????? Prominent NY lawmakers speak out against Wynn’s Hudson Yards casino plan
Two state legislators representing Manhattan’s West Side are opposing Related Companies/Wynn’s plan to erect a glittering casino in Hudson Yards near the High Line.
“I’ve been clear: I’m philosophically opposed to a casino on the west side of Manhattan. The community has been against it, and unless that changes, I’m a no,” said Assemblyman Tony Simone.
Simone will serve on the six-member local panel whose job will be to vote on whether to recommend the proposed casino to state officials.?
Assemblywoman Deborah Glick, who chairs the Assembly’s Environmental Conservation Committee, said in a statement provided to The Post, “The High Line is a unique and beloved park intended to get New Yorkers and visitors outside and above the congested streets and sidewalks.
9.?????? Ex-NYC official argues Mohegan Sun tragedy should disqualify operator from downstate casinos
A former New York City executive is urging Governor Kathy Hochul to reject Mohegan Gaming's application for a downstate casino licence after his son died at Mohegan Sun in Connecticut due to alleged neglect of the casino staff.
Kamal Bherwani called Mohegan’s joint bid with the Soloviev Group to be rejected. The pair propose building a $4bn casino and mixed-used project on a 6.7-acre site south of the United Nations complex on Manhattan’s East Side, to be called Freedom Plaza.
Bherwani previously served as chief information officer for health and human services under former mayor Michael Bloomberg and also worked for former mayor Rudy Giuliani.
领英推荐
10.?? US legislators craft model legislation to promote online gambling legalization
The National Council of Legislators from Gaming States (NCLGS) is developing model legislation to aid US lawmakers in passing legal online gambling bills, aiming to provide a comprehensive framework for states by 2025.
NCLGS plans to release a draft of the legislation by August 1, which will be open for public comment for 30 days before a final bill is presented in December. The proposed legislation will cover revenue generation, responsible gaming, cannibalization, advertising guidelines, licensing, age limits, and data sharing.
The draft suggests a 15%-25% tax rate, compared to the current average of 19% in seven legal US states. Online gambling revenue significantly exceeds that of digital sports betting but faces more legislative hurdles.
11.?? Louisiana reports $212m June sports betting handle
The Louisiana Gaming Control Board has published its sports betting revenue report for the month of June.
The state posted total monthly handle that reached close to $212m for the month. Nearly $196m of the overall total came from wagers placed online, while retail sports betting chipped in for another $16m.
Last month’s handle fell by almost 18% when compared to sports betting results from May. However, the state increased its handle year-over-year by close to 31%.
Total Louisiana sports betting revenue reached $26.2m for June. Online sports betting contributed $24.8m to the overall total.
12.?? Michigan sports betting figures skewed by BetMGM deductions in June
The Michigan Gaming Control Board reported on Thursday that total adjusted sports betting revenue across the state was minus-$28.2 million for June 2024, a deficit it put down to BetMGM Sportsbook claiming $48.2 million In free play deductions from promotional bonuses and credits.
As a result of the deduction, although BetMGM’s June handle was $40.5 million and its gross gaming revenue amounted to $3.6 million, its AGR was minus-$45.7 million.
BetMGM had only redeemed some of its allowable free play deductions, although it’s not been confirmed for how long it had not been taking the full amount. There is no timeline dictating how long a deduction period can span, and mobile sportsbooks in Michigan are entitled to carry over AGR losses until leveling out the balance.
13.?? Gambling operators in Ontario report $18B second-quarter handle
Ontario’s online gambling manager has reported considerable year-over-year growth.
According to data provided by iGaming Ontario, Canada’s most populous province reported a total gambling handle of $18.4 billion in Q2 2024, a 31% increase compared to the same period last year. Ontario’s handle in Q2 saw its 50 operators generate $726 million in total gaming revenue during the period, a 34% uptick compared to Q2 2023. These numbers include online casinos, sports betting and poker.
Those licensed operators reported nearly 1.9 million active player accounts in Q2 2024. By comparison, total active player accounts in Q2 2023 reached approximately 920,000.
#M&A & Finance
14.?? Q2 2024: EveryMatrix expects EBITDA contribution from FSB in 2025
EveryMatrix expects its recent acquisition of London-based sportsbook supplier FSB Technology to deliver a positive EBITDA contribution from 2025.
In its latest quarterly earnings report released today (23 July), the business celebrated the deal while also providing some more colour on FSB’s performance and its expectations for the future.
The all-cash deal was announced earlier this month, and is set to bolster the capabilities of EveryMatrix’s sportsbook offering while also helping the business expand into new markets.
The acquisition “firmly establishes a presence in the UK, Ireland and Africa” for EveryMatrix, the business said at the time.
15.?? Data start-up PlayAIO secures investment from Astralis Capital
PlayAIO has announced a landmark partnership with Astralis Capital and an investment from Astralis Fund I LP, marking Astralis Capital’s first venture under its new gaming incubation strategy.
Founded in 2023 by Josh Gibbs, previously with Kambi and Strive Gaming in customer data leadership roles, PlayAIO has quickly established a strong customer base and successfully launched its services in May 2024. The launch has been smooth and well received by customers.
“With Astralis Capital, it has been a truly synergistic partnership, I couldn’t think of a better way to start a business. With Astralis on board, we have continued to see rapid growth as we grow to be a market leader within the industry” said Josh Gibbs, CEO of PlayAIO.
16.?? Societe des Bains de Mer Q1 report: Gaming down 17%
Société des Bains de Mer (SBM) has reported its financial results for the first quarter of 2024/25. In total, the operator and its subsidiaries made €218.4m ($236.5m) in consolidated turnover during the period between 1 April and 30 June, up 7% year-on-year. This is despite a 17% decline in Société des Bains de Mer’s gaming segment, with turnover coming in at €47m.
Gaming revenue fell by over €9m from this time last year, despite SBM experiencing increased attendance. The operator pointed to the risk over the three-month period being unfavourable as a reason for the decline.?
The gaming sector was the only segment to decline in turnover year-on-year in Q1.
#Legal & Regulation:
17.?? BGC reports record ￡122.5m funding increase
The Betting and Gaming Council’s (BGC) largest members have donated ￡122.5m over four years to tackle problem gambling and gambling harm, new figures have shown.
Described as a record funding increase, this total is ￡22.5m more than the ￡100m the BGC’s four largest members pledged to contribute between 2020 and March 2024.
Wes Himes, BGC Executive Director of Standards and Innovation, explained that around 22.5 million people in this country enjoy a ‘regular flutter’, with the overwhelming majority doing so safely and responsibly.
“Our mission to raise standards carries on strong and these figures demonstrate our actions are backed by significant financial contributions which are making a real difference,” he continued.
18.?? German court backs GGL in favour of gambling streaming ban
Overseas content streamers could be banned for promoting unlicensed gambling services to German audiences after a decision by the Saxony-Anhalt Higher Administrative Court.
The decision was in support of a previous legal challenge raised by the Joint Gambling Authority of the L?nder (GGL) in connection to a well-known German streamer based abroad, who was engaging with slot games unlicensed in Germany.
As per the court’s statement: “The use is covered by the principle of territoriality under international law, as the content created in German is aimed at the German-speaking area. It is therefore mainly addressed to viewers who access the streaming content from Germany.”
#Tech:
19.?? Sportradar integrates live betting odds into social media ads
Sportradar has announced it will integrate live sports data and betting content into social media video advertisements through its ad:s paid social marketing service.
Calling the move an industry-first, the global sports technology company says the integration will unlock new opportunities for social advertisers. The company says it will deliver more relevant adverts at speed and at scale to improve efficiency and value for its online betting and gaming clients.
“Our paid social media clients have already seen fantastic results using static creative ads informed by our live data,” said Sportradar’s SVP of Marketing Services Niki Beier. “Now, by integrating real-time shifts in betting odds with Sportradar’s 23 years’ worth of historical data, we are maximizing the potential of social media as a performance marketing channel for sportsbook and casino operators by delivering more relevant, engaging and better-performing video adverts.”
Thank you for the shoutout Nico Jansen
Marketing Project Manager @ Hybrid Interaction
7 个月Danke!