iGaming Wrap-Up of CW 30-31 2024
#iGaming News of the week
0.?????? UAE launches first authorised lottery under new regulatory framework
The General Commercial Gaming Regulatory Authority (GCGRA) has issued a license to The Game LLC to launch the UAE Lottery, marking the introduction of the country’s first authorised lottery operation.
The GCGRA, established in September 2023, is the federal body tasked with overseeing commercial gaming activities in the United Arab Emirates.
“The launch of the UAE Lottery is a pivotal event that not only marks the establishment of a disciplined world-class regulatory framework for lottery activities, but also underscores our commitment to nurturing a secure and enriched commercial gaming environment in the UAE,” said Jim Murren (pictured right), chairman of the GCGRA.
The GCGRA has developed a comprehensive regulatory framework aimed at protecting consumers and safeguarding the legitimate interests of all stakeholders.
The framework makes clear that engaging in, conducting, or facilitating commercial gaming activities without GCGRA approval is illegal and subjects offenders to severe penalties.
#Breaking News
1.?????? Stake.com says Ciao Italia with Idealbet acquisition
Stake.com has confirmed its acquisition of Baldo Line SRL, the operating company of Italian sportsbook Idealbet.it.
A property of the Octavian Group, Baldo Line has operated the Idealbet.it sportsbook brand since 2012, abiding by the laws and market safeguards of the ADM, Italy’s Customs and Monopolies Agency.
The acquisition will see Stake.com establish “a local presence in Italy by opening an office in Italy to expand on its team of employees”, in which Baldo Line currently operates in the province of Veneto.
As it stands, “Idealbet will continue to operate under its own brand within the Stake.com portfolio.” Dealmakers did not disclose whether Stake.com would launch its flagship brand in Italy.
2.?????? DraftKings ditches NFT marketplace following class action lawsuit
Leading US betting group DraftKings has closed down its NFT Marketplace as the popularity and hype around the digital assets continues to fade into memory.
DraftKings launched the Marketplace back in 2021, powered by Polygon and based on the Ethereum blockchain. This was followed by Reignmakers in March 2022, an NFT-based fantasy sports platform where users could collect and trade NFTs of athletes to use in contests.
In a statement to SBC Americas, an Americas-facing betting industry trade publication, a DraftKings spokesperson said: “It has always been in DraftKings’ DNA to innovate and disrupt in order to provide the best possible gameplay experiences for our customers.
“Reignmakers and our NFT Marketplace saw immediate success upon launch, and we are proud of what we accomplished in such a short time. After careful consideration, DraftKings has decided to discontinue Reignmakers and our NFT Marketplace, effective immediately, due to recent legal developments.
3.?????? Lottomatica group reports 23% increase in bets for H1 2024
Lottomatica Group has announced its financial results for the first half of 2024, demonstrating continued growth and an increase in market share. The company reported total bets of €18.0bn ($19.4bn), reflecting a 23% increase year-on-year.
Revenue for the first half of the year reached €931.8m, a 20% rise at a normalised payout. The online segment showed particularly strong performance, with revenue of €338.3m, up 37% and Q2 2024 revenue of €187.9m, marking a 53% increase.
The sports franchise segment recorded €213.7m in revenue, a 4% rise, while the gaming franchise segment reported €379.8m, up 3%.
https://www.gamblinginsider.com/news/26213/lottomatica-group-reports-23-increase-in-bets-for-h1-2024
4.?????? H1 2024: FDJ hits €1.43bn revenue as it awaits Kindred deal
French operator La Fran?aise des Jeux (FDJ) has reported a robust performance for the first half of 2024, with revenue reaching €1.43bn amid 10.8% year-on-year growth. Growth was driven by a 7% increase in gaming activities within France, and a 40% increase in digital revenue. FDJ’s gross gaming revenue (GGR) for the period stood at €3.66bn, reflecting an 11.1% increase.
“This solid performance confirms our annual targets. In addition, we hope to finalise the acquisition project of Kindred in the near future, thereby marking a major new step in the group’s development, both internationally and in our online sports betting and gaming activity, to the benefit of all our stakeholders,” Pallez said.
5.?????? Q2 2024: Bally’s revenue up 2.5% ahead of Standard General merger
Bally’s Corporation has released its financial results for the second quarter ending June 30, 2024. The company reported revenue of $621.7 million, a 2.5% increase year-over-year. Revenue from Casinos & Resorts rose to $343.1 million, a 3.0% increase. UK online revenues grew by 9%, although overall International Interactive revenue decreased by 7.4% to $229.4 million. North America Interactive revenue saw significant growth, rising 94.7% year-over-year to $49.2 million.
Bally’s announced $2.07 billion in transactions with GLPI, including $940 million for the Chicago project. The company also unveiled a new site plan for the permanent Bally’s Chicago Casino, featuring a 500-room hotel tower. Demolition and site preparation are currently underway on the 30-acre development site. Additionally, Bally’s has entered into a definitive agreement to merge with The Queen Casino & Entertainment Inc., an affiliate of Standard General L.P. Bally’s stockholders will receive $18.25 per share in cash or can choose to retain their investment.
6.?????? Apollo Global backs $6.3bn hijack of IGT and Everi merger
Apollo Global has initiated a blockbuster deal to simultaneously acquire IGT Plc’s Gaming & Digital business alongside Everi Holdings Inc. The US private equity fund has submitted a cash offer of $14.25 per share to Everi shareholders to acquire its combined business with IGT’s Digital and Gaming spin-offs.
The offer comes as Everi moves to complete its February transaction to merge its business with IGT’s Global Gaming and PlayDigital units, as dealmakers seek to form a new independently owned IGT separated from its lottery technology business.
Deal terms saw Everi secure $3.7bn and $500m credit facilities from Deutsche Bank and Macquarie Capital to finance its merger with IGT spin-offs.
The PE fund has submitted an all-cash counteroffer which places a value of approximately $6.3bn to acquire the combined business.
Announced by Apollo: “Under the terms of the new agreements, the Apollo Funds will acquire IGT Gaming and Everi. Following closing, IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise.”
7.?????? France records 24% increase in H1 bets despite underwhelming Euros
Sports betting in France grew 24% as €5bn (￡4.2bn/$5.4bn) was wagered on sports in the country during the first half of 2024, according to new data from the l'Autorité Nationale des Jeux (ANJ).
France took €5.2bn in bets during H1, marking a 24% year-on-year increase, while gross gaming revenue (GGR) rose by 16% when compared to the same period of 2023, reaching €871m.
Online continues to flourish in France, with the online market up 10% year-on-year over H1 and accounting for over €1.3bn in GGR. Online active player accounts (APAs) were up 13% compared to H1 2023, powered by a particularly strong month of June, which included the early stages of Euro 2024. There were over two million APAs in June, up from 1.25 million in the same month last year.
Despite growth across active players and the increased betting amount in the period, the amount bet on the Euros fell short of the ANJ’s €1bn expectations, coming in at €650m. In France, the 2022 tournament generated €900m in total stakes.
#US / Canada
8.?????? Las Vegas Sands seeks North Texas support for casino legalization ahead of 2025 session
Las Vegas Sands is actively seeking support from business and city leaders in North Texas for the legalization of gambling and the development of destination resorts, including casinos.
This initiative comes ahead of the 2025 legislative session, as the company, whose leadership owns the Dallas Mavericks, aims to bolster its lobbying efforts in the region.
“I’m personally not a gambler, and I don’t really want to be. But I do think it’s an industry that has an incredible economic impact opportunity. I unequivocally believe Texas will legalize gambling, and, because of that, I think we have a fiduciary duty as representatives to be prepared for that,” Dallas City Council Member Chad West was quoted as saying in the report.
Sands has already acquired 108 acres in Irving, near the former Dallas Cowboys stadium site, indicating the company's investment in the region.
9.?????? Nebraska lawmakers could be first in US in 2024 to legalise or expand gambling
Nearly seven months into the year, no US jurisdiction has legalised or expanded gambling. Will Nebraska be the first?
Nebraska’s state legislature started a special session last week and, on Wednesday (30 July), the general affairs committee will debate five bills that could legalise digital sports betting and daily fantasy sports.
At the heart of the move to legalise digital sports betting is Nebraska’s high property taxes, which fund education. According to one of the bills, the state ranks among the top 10 in the US in “property tax burden” and “relies more heavily on local property taxes to support public education” than other states. The goal is reduce property taxes by using online sports betting revenue to defray the costs to homeowners.
Nebraskans approved an expansion of gaming in November 2020. At that time, it wasn’t clear whether or not that expansion included sports betting – retail or digital. But lawmakers eventually decided that in-person wagering met the criteria. The first bets were taken 22 June 2023.
10.?? Sen. Addabbo’s survey finds just 44% support of NY iGaming
Operators looking to add online casino to their existing NY sports betting products are ahead in an Empire State poll, although many voters remain undecided.
About 44% of 532 constituents in New York State Sen. Joe Addabbo’s district said they supported online casino gaming in an online poll conducted in May. The poll results, which were released this week, also showed that 33% opposed online casino gaming, with 23% unsure.
Separately, legalized prostitution received 56% voter support in Addabbo’s district, with 28% opposed and 16% unsure.
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“What this leads me to believe is that people are, I guess, hesitant about expanding gaming. But there was another poll put out during session, when we were thinking about revenue: Do you want to raise taxes or do you want iGaming? And, of course, you give people that choice and they go boom, iGaming. So it’s all relative,” Addabbo said.
11.?? One theatre union voices opposition to Caesars NY casino
Caesars Palace Times Square, the casino proposed for New York City by Caesars Entertainment, developer SL Green and rapper Jay-Z, has run into new union opposition.
Under the Caesars NY casino plan, partners have pledged to invest $250m for improvements in Midtown and Hell’s Kitchen. It was originally opposed by theatre owners. But the plan has gained support from several Times Square tenants.
The International Alliance of Theatrical State Employees (IATSE), however, has come out against the project.
“A casino in New York would add a new dimension to New York City’s vibrant entertainment industry, but placing it amid our theatre district would be a mistake,” the IATSE told the New York Post on Thursday (25 July) in a statement.
12.?? Boyd reaffirms M&A expertise amid Penn acquisition rumours
Boyd Gaming CEO Keith Smith said the company has “developed a great expertise” in M&A, amid continuing rumours around a possible acquisition of Penn Entertainment.
Smith (pictured) made the comments on the casino operator’s Q2 2024 earnings call, as multiple investment analysts put questions to management on the potential for future acquisitions.
While a possible acquisition of Penn was not discussed explicitly during the call, both Smith and Boyd CFO Josh Hirsberg offered commentary on Boyd’s approach to M&A generally.
When asked about the company’s appetite for M&A on the earnings call, CEO Smith gave a positive, if non-committal answer. “If you look back over the history of our company, the majority of our growth obviously has come through M&A. And I think we’ve developed a great expertise at it,” he said.
13.?? WynnBet stops taking bets in New York
WynnBet has stopped taking bets in New York after agreeing to sell its New York mobile sports betting licence To Penn Entertainment. Penn will launch ESPN Bet in the state.
Wynn’s website has updated to include New York among the 10 jurisdictions in which its platform has closed operations, along with Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia, West Virginia, and Massachusetts (mobile only). WynnBet Sportsbook users will be able to access their accounts and make withdrawals until August 29. The firm went live in New York in 2022.
In November 2023, ESPN Bet launched in 17 US states, replacing Penn Entertainment’s previous sportsbook.
14.?? Massachusetts legalizes online lottery, late 2025 launch expected
The lottery in Massachusetts will finally be available online, but it will take more than a year to make it happen.
Governor Maura Healey signed the new state budget for fiscal year 2025 Monday and it includes legalizing online lottery sales in Massachusetts for the first time.
The Massachusetts Lottery said it will take about 16 months to get the online platform up and running. That would be around December of 2025. If you want to play the "iLottery" when it launches, you will have to be 21 years old to buy tickets online, instead of the minimum age of 18 for sales in stores.
15.?? Alabama baseball scandal leads to prison sentence for Neff
Indiana businessman and youth baseball coach Bert Neff has been sentenced to prison for his role in a gambling scandal that led to the firing of the former head coach of Alabama’s baseball program, Brad Bohannon.
According to court documents obtained from the U.S. District for the Northern District of Alabama, Neff has been sentenced to eight months in prison and three years of supervised release after pleading guilty in February to one count of obstruction of justice. The Indiana native was handed the sentence after betting at Great American Ballpark.?
Last April, Neff attempted to place a $100,000 wager at BetMGM’s retail sportsbook in Cincinnati after being provided with insider information about the Alabama baseball team from Bohannon. Neff attempted to place the wager on Alabama’s opponent, LSU, but was limited to $15,000 by BetMGM staff who flagged the bet as suspicious. According to court documents, Bohannon told Neff to bet against Alabama.
#M&A & Finance
16.?? PointsBet FY24 revenue up 16% as US sale arms group for future investments
PointsBet has closed off its full-year 2024 with $267.1m in net win and $28.1m in its cash reserves, as its US business US$225m sale to Fanatics closed.
In its unedited 2024 results on 31 July, PointsBet CEO Sam Swanell told analysts the US business disposal had left the group with significant cash reserves of $28.1m to “invest in further growth”.
Swanell highlighted record quarterly cash flow performance of $7.1m in Q4. He said the company remained “well capitalised to invest in further growth and execute ongoing operational and strategic plans”.
“We continue to invest to further growth, in particular, in our core technology and product capabilities and through our strategic marketing investment. This is driving our market share growth in Australia and Canada and setting the company up for further success,” he said.
17.?? Q2 2024: Increased marketing helps Codere Online grow revenue 39%
Codere Online has seen net gaming revenue gains across all its segments in the second quarter of 2024, with average monthly active players rising in both Spain and Mexico.
Following the “solid performance” in the first six months of the year, CFO Oscar Iglesias has stated that the operator has raised its full year outlook for 2024 once again.
Publishing its financial results, Codere Online declared a €51.7m in total revenue and net gaming revenue of €54.4m, up 39% when compared to the same period last year (Q2 2023: €39.1m) with gains seen across all segments. Per segment, Spain’s revenue reached €21.8m while Mexico’s revenue was €25.3m.
18.?? Caesars reports Q2 2024 financial results, posts net loss of $122m
Caesars Entertainment has released its financial results for the second quarter of 2024. The company reported total net revenue of $2.83bn, a slight decrease of 0.1% year-on-year.
Caesars experienced a net loss of $122m. The decrease was reportedly primarily due to a $940m release of valuation allowance against deferred tax assets associated with its Real Estate Investment Trust (REIT) leases in the prior year.
The operator reported $1bn in adjusted EBITDA for Q2 2024, up 0.6%. The Las Vegas segment saw growth in adjusted EBITDA, driven by same-store revenues, hotel occupancy and an increased Average Daily Rate (ADR). The Las Vegas operations generated $1.1bn in revenue for the quarter.
19.?? VICI Properties Q2 2024 revenue increases by nearly $60m year-over-year
The company announced an up to $700m investment to fund extensive reinvestment projects at The Venetian Resort Las Vegas.
VICI Properties has announced its financial results for Q2 2024, with revenue having been reported to be $957m as compared to the $898.2m figure reported during the second quarter of 2023.
“In the second quarter, we committed up to $950m of capital into existing high-quality partnerships, $650m of which will be deployed this year, comprised of our $400m property improvement investment into the Venetian and $250m credit investment into Great Wolf Resorts,” VICI Properties CEO Edward Pitoniak said.
“We believe these investments demonstrate that VICI has advantageous levers for sustained, sustainable growth with quality tenants in durable sectors across attractive geographies."
#Legal & Regulation:
20.?? New Zealand plans to regulate online casinos from early 2026
The New Zealand government has outlined a new regulatory approach for online casinos, which will aim to minimise harm while enhancing consumer protection and tax collection.
The regulatory framework will see the country introduce a licensing system requiring online casino operators to meet stringent criteria before offering their services to New Zealanders. The country’s Minister of Internal Affairs, Brooke van Velden said: “Licensing is how we regulate most forms of gambling domestically.
“This is not intended to increase the amount of gambling New Zealanders do, but to ensure operators meet requirements for consumer protection and harm minimisation, as well as paying tax.”
21.?? Holland Casino publicly reprimanded for money-laundering compliance failures
In 2019, the Dutch Gaming Authority (KSA) issued an indication to Holland Casino for failing to comply with certain requirements of the Law on the Prevention of Money Laundering and Financing of Terrorism (WWFT).
The KSA's investigation found that Holland Casino did not adequately monitor player behaviour or the sources of the funds used for gambling. Compliance with these measures is mandated by the WWFT.
As a result, the KSA ordered Holland Casino to address these issues within specified deadlines, which the casino met.
The indication and the decision on Holland Casino's objection have now been made public, following a ruling by the Board of Appeal for Business (CBB) on 26 March? 2024.
The CBB's decision made the indication irrevocable. While the indication and the decision on the objection are publicly disclosed, certain parts based on the appeal grounds have been redacted. The disclosure decision itself remains confidential under WWFT obligations.