iGaming Wrap-Up of CW 33-34
#iGaming News of the week
0.?????? FS Gaming loses Shay Segev’s 2% voting rights in 888 as agreement is terminated
Investment consortium FS Gaming has terminated an agreement with DAZN CEO Shay Segev which previously saw it control Segev’s voting rights in 888.
FS Gaming was established by former GVC Holdings CEO Kenny Alexander, together with the operator’s former director Stephen Morana and former chairman Lee Feldman.
The group secured a 4.55% shareholding in 888 in June, before putting forward a leadership plan for the business which would see Alexander take charge as CEO, Feldman become chair and Morana as CFO.
As part of the plan, the group secured the voting rights from another former GVC (Entain) executive in DAZN CEO Shay Segev.
Segev’s 2.02% voting rights in 888 were transferred to FS Gaming, giving the consortium total voting rights of 6.57%.
In July, however, 888 revealed that it had terminated talks with the group, after the UK Gambling Commission expressed concerns over an ongoing HMRC investigation into GVC’s international activity under Alexander’s leadership.
#Breaking News
1.?????? Jesper S?gaard: Better Collective ‘keeping foot on the pedal’ for Americas growth
Transatlantic business is at the forefront of Better Collective’s post-Q2 agenda as it continues to target a standing as ‘the leading digital sports media group’, CEO Jesper S?gaard reiterated to investors.
Whilst Better Collective is seeking to maintain its standing in its found market of Europe, the growth opportunities of North and Latin American betting sectors are becoming too alluring to ignore.
With Brazil nearing regulation, a host of international and domestic operators prepare for what could be one of the world’s biggest betting markets. As S?gaard put it, Latin America in general poses ‘vast potential and opportunities’ for Better collective.
“Recently, I had the pleasure of visiting Rio de Janeiro as we opened our South American headquarters, and I was impressed to experience the region’s strong sports culture,” he said.
“I’m certain that Better Collective will have a long term trajectory in this region as we continue to expand our efforts. South America continues to be a very important growth pillar for us, and with the anticipated upcoming regulation of sports betting in Brazil. We expect a lot more from this region.”
2.?????? How will ESPN Bet carve out its place in the industry?
The stakes are high for ESPN's long-awaited foray into sports betting. Vice president of sports betting Mike Morrison believes the broadcasting behemoth will upend the established industry order.
“There was an inevitability about this,” ESPN’s Mike Morrison says of the sports giant’s move into betting.
Partnering Penn Entertainment to launch ESPN Bet brought years of speculation – and the operator’s partnership with Barstool Sports – to a close. This was momentous at every level.
3.?????? Trustly powers NFT marketplace from Station Casinos
Global payments firm Trustly has partnered with Station Casinos to become the exclusive payments provider for its new NFT loyalty marketplace STN Charms.
The NFT platform launched last March to enhance the gaming experience by revamping its loyalty program in a “ground-breaking way”.
Trustly aims to provide guaranteed deposits and withdrawals for user wallets to help assist in customers engaging with NFTs on STN Charms.
John Parsons, VP of Gaming at Trustly, stated: “We’re excited to partner with Station Casinos and CentralAMS. Our work with them has allowed us to show how Open Banking technology can assist in creating a ground-breaking loyalty program by providing an integral payment system for its members-only marketplace. We’re proud to be a part of such a unique and innovative project.”
4.?????? GGL brands Malta Bill-55 a “protective shield incompatible with EU laws”
Gluecksspiel (GGL),? the Federal Authority of German gambling, maintains its opinion that Malta’s ‘Bill-55’ is incompatible with European Union laws and member-state protections.
Signed in June by Malta President George Vella, Bill-55, titled the “Gaming Amendment Bill’ allows Maltese courts to “refuse the recognition and enforcement of foreign judgements related to the online gambling sector.”
As such, the Act prevents enforcement actions against Malta Gambling Authority (MGA) licensed operators under two sets of circumstances. Firstly, if an action “conflicts with or undermines the provision of gaming services in Malta it cannot be undertaken.”
In addition, enforcement measures cannot be taken if the action made by the operator relates to an authorised activity lawful under the Gambling Act of Malta.
The Bill’s authorisation has become a point of conflict for European regulators, as German and Austrian gambling authorities cite recent disputes related to the infringement of MGA-licensed operators on their respective markets.
5.?????? Dazn Bet granted German sports betting licence
Online sports betting and casino operator Dazn Bet has been authorised to offer sports betting in Germany.
Dazn Bet is owned by sports media streaming service Dazn. It was first formed in April 2022, as part of a partnership with Pragmatic Gaming. It was added to the sports betting section of Germany’s white list.
The operator joins the likes of Jackpot50, 888 and Tipico on the list. Dazn Bet, which is registered in Malta, will operate under the Daznbet.de domain.
6.?????? Bulgaria launches new AML unit amid international pressure
A new unit will enforce anti-money laundering measures among gambling operators in Bulgaria. The unit will be overseen by the National Revenue Agency (NRA), which took over responsibility for gambling regulation in 2020.
The dedicated unit will monitor gambling operations, transactions and customers that are flagged as suspicious and will share information with international authorities. It will see to enforce requirements on customer verification, documentation and money laundering and terrorist financing risk assessments.
The creation of the new unit comes as Bulgaria seeks to raise standards following a critical national money laundering risk assessment in 2020 and the risk of greylisting by the Financial Action Task Force (FATF). Moneyval, the European Union AML watchdog, signalled the gambling sector as an AML risk in a report in May last year, noting challenges from organised crime and corruption and limited government resources.
7.?????? Kentucky approves temporary online, retail sports betting licenses ahead of September launch
Kentucky Governor Andy Beshear announced Tuesday that the Kentucky Horse Racing Commission (KHRC) has granted temporary licenses to sports wagering operators and service providers. The move comes as the Bluegrass State, on an accelerated push since lawmakers legalized sports betting in late March, readies to launch its market in September.
These temporary licenses offer the opportunity for operations within the state for a period of up to one year, subject to ongoing evaluation. This development now provides clarity to Kentucky bettors regarding the authorized retail establishments for placing sports bets, along with the list of approved mobile applications permitted within the state.
“The countdown continues as we move closer to sports wagering with retail locations opening in just 15 days,” said Gov. Andy Beshear. “Thank you to the KHRC commissioners for their dedication to getting this done right and getting it done in time for the opening of the NFL season.”
#US / Canada
8.?????? North Carolina: Rockingham County Board approves land rezoning
The Rockingham County Board of Commissioners, North Carolina, has unanimously approved the rezoning of 192 acres of farmland near Madison for highway commercial usage. The move came despite some local residents having expressed apprehension about the rezoning's potential link to a forthcoming casino near the US 220 area.
Last month, it was reported that a company named "NC Development Holdings" submitted a request to rezone approximately 200 acres of land along U.S. 220 in Rockingham County from residential/agricultural to commercial.
The location is in close proximity to a recently opened casino in Danville, Virginia, situated just a mile from the North Carolina border. Registered with the Secretary of State's office last month, NC Development Holdings is linked to Maryland-based casino developer The Cordish Companies, according to filings retrieved by WNCN.
9.?????? Mississippi sports betting revenue level at $2.5m in July
Sports betting revenue in Mississippi remained level year-on-year at $2.5m in July, despite a slight dip in player spending.
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Revenue was in line with the $2.5m posted in July 2022 and 38.9% ahead of $2.5m in June this year.
In terms of handle, players wagered a total of $17.7m. This was down 3.3% from $18.3m last year but 13.2% behind $20.4m in June.
Coastal casinos drew $11.5m in bets during the month and posted $1.2m in total revenue.
A further $3.9m was spent at central casinos, with revenue at $896,790, while handle for northern casinos hit $2.3m and revenue $403,005.
10.?? Michigan gaming market sees monthly jump after early summer lull
Michigan’s sports betting market returned to monthly growth in July after consecutive months of decline as the Great Lake state came closer to the NFL season.
Per the Michigan Gaming Control Board, operators across both the sports betting and online casino markets made $176.1m, up 4% from the results posted in June. This also marks an uptick from the $148.2m made in July of 2022.
This was broken down into $153.6m in online casino revenues and $22.5m in sports betting revenue, with both verticals marking growth from June when they stood at $151m and $18.3m respectively.
Online casino revenue of $153.6m represents growth of 21.3% on an annual basis as Michigan’s industry continues to become a big player in the online casino industry in the US.
11.?? Delaware igaming wagers continue to decline in July
Delaware reported year-on-year declines across online casino and sports betting spend in July, while player wagers on igaming in the state fell to a calendar-year low of $36.4m.
The total amount wagered in July was 7.6% lower than wagers in July 2022 and also 4.0% less than in June this year.
Players spent $24.6m playing online video lottery games and a further $11.8m on internet table games.
Online casino revenue amounted to $1.2m in July. This was 5.6% behind July last year but 7.3% higher than June 2023.
Video lottery games generated $915,640 in revenue and table games $221,187. The other $44,861 came from poker rake and fees.
12.?? Pennsylvania gambling revenue up 8.9% to $467m in July
Gambling revenue in Pennsylvania increased 8.9% year-on-year to $467.0m in July, driven by growth across the igaming and sports betting segments.
Monthly revenue in Pennsylvania was ahead of $429.1m in July 2022 and 6.0% higher than $440.5m in June this year.
Retail slots remained the primary source of revenue by some margin, generating a total of $214.7m during the month. This was 0.4% higher than in the previous month. In contrast, retail table games revenue slipped 3.8% to $83.4m.
Turning to igaming and revenue in this market increased by 34.8% year-on-year to $132.9m. This included $94.9m in online slots revenue, up 31.9%, and $35.4m in internet table games revenue, a rise of 48.0%
#M&A & Finance
13.?? Novig secures $6.4m in funding from more than 30 prominent investors
US sports betting exchange start-up Novig has concluded a seed funding round, raising a total of $6.4m from a consortium of high-profile tech investors.
This milestone comes just before Novig’s anticipated launch in Colorado in October.
The funding initiative was spearheaded by Lux Capital, a New York-based venture capital firm.
Notably, the funding pool attracted participation from around 30 investors, including computer scientist Paul Graham, investor and Hall of Fame NFL quarterback Joe Montana, and Dropbox co-founder Arash Ferdowsi.
The list also includes prominent VC fund Y Combinator, Soma Capital, Innospark Ventures, Rebel Fund, Bayhouse Capital, Archon Capital, Palm Drive Capital, TRAC, True Culture Fund, CapitalX, and numerous others.
#Legal & Regulation:
14.?? FOX Bet faces $80k New Jersey penalty before closure
The New Jersey Division of Gaming Enforcement has levied an $80,000 penalty on FOX Bet just days before the platform is closed down.
Resolving an issue dating back two years, the regulator has ordered the Flutter and FOX brand to pay the penalty after offering wagering on prohibited sporting events.
Specifically, FOX Bet offered sports betting on college sports events that were not allowed in the Garden State. On August 19, 2021, the regulator filed a complaint after FOX Bet allowed betting on the February 2021 NCAA basketball match between Rutgers University and Northwestern University.
A further filing was made when bets were placed on the NCAA game between Monmouth University and Lehigh University that November. FOX Bet then admitted further breaches on New Year’s Eve 2021 when it took wagers on the game between Fairleigh Dickinson University and St. Francis University and again on two more fixtures in January 2022.
15.?? Igaming accounted for 88% of Guernsey AML reports in 2022
Online gaming accounted for 88% of all suspicious activity reports related to money laundering received by the Bailiwick of Guernsey's Financial Intelligence Unit (FIU) in 2022.
Reports surrounding online gambling activity accounted for 76% of the total suspicious activity reports filed in 2022. The total number of reports submitted in reference to online gambling was 28% lower than in 2021.
Overall, the FIU received 2,656 suspicious activity reports in 2022. This was down by 26.2% from 2021.
The FIU processes suspicious activity reports filed by businesses in Guernsey. This is in respect to the country’s laws, including its 2022 Terrorism and Crime law.
16.?? BlueBet faces AU$1m fine over Victoria ad breaches
The Victorian Gambling and Casino Control Commission (VGCCC) has charged BlueBet for breaching state rules on advertising, with the operator facing a fine of up to AU$945,187 (￡475,332/€555,991/US$606,505).
The charges relate to BlueBet displaying three gambling ads on billboards in Victoria over a fortnight last year. Adverts appeared between 29 August 2022 and 11 September 2022 in the Australian state.
According to the VGCCC, this was in breach of state laws. The regulator highlighted section 4.7.1 of Victoria’s Gambling Regulation Act 2003, which bans static gambling ads from appearing in certain locations.
#Tech:
17.?? Rivalry launches same game parlays for esports in gambling industry first
The operator announced the launch today (23 August), as it introduced new functionality allowing bettors to combine multiple bets within a single esports match.
The new product feature, which will be referred to as ‘Same Game Combos’ on Rivalry’s platform, is available for top-flight matches across League of Legends, Counter Strike and Dota 2.
It has been made available with immediate effect to all Rivalry customers globally.
The product “will tap into what has quickly become one of the most popular ways to bet globally and is the wager of choice for casual users seeking the experience of a small wager that can return a large payout,” Rivalry said.
18.?? Sportradar scores betting data deal with US Soccer
U.S. Soccer has selected Sportradar as its official betting partner, signing an eight-year deal that grants the Swiss technology company exclusive rights to collect, license and distribute the federation’s official betting and media data. The agreement, financial terms of which were not disclosed, covers more than 111 matches annually, including those played by the U.S. men’s and women’s national team matches, as well as those contested as part of the Lamar Hunt U.S. Open Cup and SheBelieves Cup.
Sportradar will also be able to distribute streams of U.S. Soccer competitions to sportsbook operators outside the U.S. The federation’s domestic media deals with WBD Sports and Telemundo do not currently allow for streaming by online sportsbooks within the U.S. The deal is a key step for U.S. Soccer as it makes a more focused foray into the sports betting landscape. The federation previously worked with Stats Perform, one of the other major sports data providers, under a deal it signed jointly with MLS in 2020.?