iGaming Wrap-Up of CW 37-38
#iGaming News of the week
0.?????? SBC moves flagship event from Barcelona to Lisbon
SBC’s flagship global event SBC Summit will move to Lisbon, Portugal, starting in 2024. Previously known as SBC Summit Barcelona, the upcoming event will be named SBC Summit 2024. It will take place over three days from 24 September 2024 at Feira Internacional de Lisboa (FIL), where 500 speakers are set to appear across eight stages.
The event should occupy more than 100,000 square metres of exhibition and conference space, where SBC expects to welcome 600 exhibitors and 25,000 attendees.
SBC founder and CEO Rasmus Sojmark said: “The city and FIL are home to the Web Summit that annually gathers over 70,000 attendees and transforms the city into a tech hub and was an immediate and obvious choice.
“I’m excited about what lies ahead. This is a unique moment for SBC, and we’re wholeheartedly embracing it,” he added.
#Breaking News
1.?????? DAZN Bet goes live in fourth market with Germany launch
DAZN Bet’s launch in Germany has been confirmed by the operator, the sportsbook platform of sports media and entertainment giant DAZN Group.
The bookmaker’s pending debut in the German market was confirmed by the federal regulator, the Gluecksspiel (GGL) last month when DAZN Bet was publicly added to its whitelist of approved operators.
Confirmation of DAZN Bet’s entry into Germany this week marks the fourth market launch for the company, which was first taken live in the UK in August 2022, with later rollouts occurring in Italy and Spain.
Mark Kemp, CEO at DAZN BET, said: “DAZN Bet is delighted to launch in Germany, our fourth successful new market launch for DAZN Bet in the last thirteen months.
“With our DAZN brand partnership, we are confident that German players and sports enthusiasts will enhance their enjoyment through the distinctive sports betting entertainment experience, offers and value of DAZN Bet. Sports fans can get more exclusively if they link their DAZN and DAZN Bet experiences.”
2.?????? Swedish government proposes 4% gaming tax hike to 22% of GGR
This move comes because the Government believes the gambling market has achieved stability since its re-regulation in 2019. It points to high channelisation rates as a key factor behind the decision.
The announcement, however, has garnered criticism from the Swedish Trade Association for Online Gambling (BOS), with Secretary General, Gustaf Hoffstedt, expressing deep disappointment. Hoffstedt argues that the Government's decision reflects a lack of understanding of the market it seeks to regulate and the precarious position it places the industry in.
Recent data indicates that channelisation in Sweden's gambling market stands at 77%, with certain sectors, such as online casinos, struggling at 72%. These figures stray from the Government's original goal of achieving at least 90% channelisation.
Hoffstedt argues that if the Riksdag approves the proposed tax increase, the industry could revert to the low channelisation rates seen before the 2019 re-regulation.
3.?????? France considers online casino amendments to digital bill
MPs in France have begun considering amendments to a proposed bill to secure and regulate the digital space, which could lead to the regulation of online casino.
The bill calls for the regulation of “games with monetisable digital objects” which, as defined in article 15, it names JONUM.
If passed, the bill would regulate Web3 products like those powering Sorare and Socios, as non-fungible tokens (NFTs).
Distinguishing JONUM from gambling
Article 15 was subject to a number of proposed amendments. Many of these amendments focused on distinguishing JONUM from distinct gambling products.
One amendment proposed adding “by preventing risks of harm to public order” to the title of the article. This amendment explained that, currently, there is a risk that illegal online casinos could be classified under JONUM.
4.?????? Golf legend Phil Mickelson opens up about “hurricane” gambling addiction
Phil Mickelson has revealed the harm and hurt his gambling addiction has caused to those closest to him. The 53-year-old six-time major winner, who opened up about his addiction in a lengthy post on social media, claimed it affected those he cared about “in ways I wasn’t aware or could fully understand”.
Mickelson wrote on X: “I won’t be betting this year because I crossed the line of moderation and into addiction which isn’t any fun at all. “You’re here but you’re not with us", is something I’ve been told often throughout my addiction. It affected those I care about in ways I wasn’t aware or could fully understand.”
Betting guru Billy Walters opened the lid on Mickelson’s gambling habit in his autobiography, claiming the LIV golfer had placed bets of more than one billion dollars in the last 30 years.
5.?????? Better Collective nets Danish media outlet Tipsbladet in €6.5m acquisition
Affiliate group Better Collective has acquired Tipsbladet.dk, one of Denmark’s leading soccer media outlets. The acquisition is valued at €6.5m, to be paid in three installments and financed with cash. Better Collective expects that the post-synergy 2024 EBITDA multiple will be below 5x. The financial targets for 2023 remain unaffected by the acquisition.
As of 2 October, Tipsbladet.dk will officially become part of Better Collective, headquartered in Copenhagen, Denmark.
Better Collective co-founder and CEO Jesper S?gaard commented: “The acquisition fits perfectly with our vision to become the leading digital sports media group and our strategy to acquire strong media brands with a loyal audience.
“I look very much forward to welcoming the dedicated editorial team at Tipsbladet to the Better Collective group and I am convinced that together we can further elevate the content that for years has excited so many Danish sports fans.”
6.?????? Brazil lower house passes sports betting bill, amendments include online casino
Brazil’s Chamber of Deputies has approved sports betting regulation bill set to come into effect in the country next year, but one amendment has brought the possibility of online casino becoming regulated in the process.
Per the bill, operators will be obliged to pay 18% tax on GGR, whilst all licensees will be liable to a 30 million reais fee, which must be paid within 30 days after authorization.
“We approved the base text of PL 3626/23, a modern and effective matter to combat fraud in sports betting and also put an end to tax evasion,” he wrote.
The legislation defined online gaming as an “electronic channel that enables virtual betting in a game in which the result is determined by the outcome of a random future event; based on a random generator of numbers, symbols, figures or objects defined in the system of rules” has been added, paving the way for online casinos to be regulated in Brazil.
7.?????? GiG confirms Richard Brown has stepped down as CEO
Following the announcement from Gaming Innovation Group (GiG) in May 2023, Richard Brown, the current CEO of GiG will be stepping down from his position, effective as of today. However, Brown will move to a board advisory position until December 31 2023.
This change comes following the company’s strategic decision earlier this year to conduct a thorough review of its operations. The objective of the review was to split the company into two separate divisions.
By doing so, GiG aims to optimise growth opportunities and allow each business to benefit from the strategic and financial flexibility of its business models. GiG says the split is anticipated to pave the way for both resulting businesses to achieve accelerated growth compared to the current corporate structure.
In preparation for this division, GiG appointed Richard Carter as the CEO of Platform & Sportsbook in August. Meanwhile, Jonas Warrer will continue to serve as the CEO of GiG Media.
#US / Canada
8.?????? Colorado regulator launches sports betting self-exclusion program
The Colorado Division of Gaming (DOG) has announced the launch of the US state’s new gambling self-exclusion programme.
Players can withdraw from gambling for one, three or five years, blocking themselves from all licensed operators in Colorado. This covers gambling at casinos and placing sports wagers at retail and online sportsbooks.
Consumers can sign up to the scheme online or in person at one of the DOG offices across the state.
The new programme replaces an existing scheme where the Problem Gambling Coalition of Colorado (PGCC) enrolled players and managed the self-exclusion list.
“The DOG is committed to promoting responsible gaming in the Colorado gaming industry,” DOG director Christopher Schroder said. “The launch of the state’s self-exclusion programme is an exciting advancement for our state.
9.?????? PointsBet fined $25,000 for triple sports betting breach in New Jersey
Online sports betting company PointsBet committed three different types of violations of New Jersey sports betting laws, according to gambling regulators who fined the company $25,000.
The fine was imposed Aug. 23, but details of the case were not released by the New Jersey Attorney General's Office until Tuesday, nearly two weeks after The Associated Press requested them.
According to a posting on the website of the state Division of Gaming Enforcement, the agency reached a settlement with PointsBet under which the Denver-based company was to pay a $25,000 fine.
PointsBet declined comment Wednesday.
One aspect of the fine involved the company accepting so-called "pre-match" bets in August 2021 on games that had already begun. All five bets came from one customer, who wagered $13,500 and received $28,275.
10.?? Pennsylvania sports betting revenue drops over 35% YoY in August
Pennsylvania’s sports betting revenue took a 35% annual hit in August, but rapid online casino growth meant that the market did show a 7.5% uptick in the last 12 months.
Per the Pennsylvania Gaming Control Board, sportsbook revenue was just $22m last month, compared to the $34m made in August 2022, marking a downturn of 35% YoY.
Last month, sportsbooks handled $393m in bets, marking an uptick of 8.3% YoY, yet a tumbling hold rate which saw just two operators yield over $5m caused revenue to dwindle.
Operators made $22m in revenue last month, considerably down YoY, with bettors getting favorable results against the books.
Per operator, DraftKings took the most revenue last month, making $9.5m from its operations, whilst FanDuel was narrowly behind yielding $9.4m.
11.?? Michigan iGaming and sports betting revenues reach $175.4 million in August
In August, Michigan's commercial and tribal operators collectively reported total internet gaming (iGaming) gross receipts and gross sports betting receipts of $175.4 million. These figures indicate a 0.4% decrease compared to July.
Specifically, iGaming revenue for August amounted to $152.2 million, while gross sports betting revenue reached $23.2 million. The previous month saw iGaming gross receipts of $153.6 million and gross sports betting receipts of $22.5 million.
When considering the adjusted gross receipts (AGR) for total iGaming and internet sports betting in August, the figures totaled $153.1 million. This comprised $137.2 million from iGaming and $15.9 million from internet sports betting.
These figures reflect a minor 0.7% decrease for iGaming and a 3.0% decrease for sports betting compared to July 2023.
12.?? Massachusetts sports betting handle reaches $314.9m in August
Sports wagering handle in Massachusetts reached $314.9m (￡254.4m/€295.3m) in August, a month-on-month increase of 6.8%, although revenue in the state declined.
The figure was higher than $294.9m in July, which was the lowest total since Massachusetts launched legal betting in April.
Some $307.2m was spent wagering online, an increase of 6.6% from July. Retail betting was also 13.2% higher at $7.7m for August.
However, while handle was higher month-on-month, the same could not be said for revenue from sports betting. Total revenue in August hit $22.7m, down 22.8% from $29.4m in July.
13.?? DraftKings becomes sports betting leader in NJ during August
The New Jersey Division of Gaming Enforcement reported sportsbook revenue of $96 million, a spike of 57% month-over-month and 47.1% year-over-year.
The Garden State’s casinos, racetracks, and their online partners combined to produce an August handle of $725.8 million, up 43% from the same month in 2022 and 23% from July 2023.
Only New York has recorded a higher handle for the states that have reported in August, and New Jersey became the first state to surpass $40 billion in wagers since PASPA was overturned five years ago.
DraftKings carried partner Resorts Digital as the top mobile operator in August with a whopping revenue of $56.9 million, a massive jump from July’s $18.9 million and 58% of New Jersey’s overall profits.
#M&A & Finance
14.?? OpenBet agrees ‘major’ Play7.Bet deal to enter Brazil sports betting market
Online gaming software, Latest Casino and Gambling News, Brazil, Technology, Gaming Industry News, Mobile gaming, Sports betting, Online Gambling News, Mergers, Acquisitions & Partnerships
One of the leading platforms and trading & risk, content, and services providers to the sports betting industry, partnered with the renowned Play7.Bet to expand to the Brazilian market.
After the long wait for the legalization of sports betting in this key Latin American market, the company is among the first ones to expand to Brazil.
The experts expect Brazil to become one of the world’s biggest gambling markets. It is expected that the gross gaming revenues will go up to $6.4 billion a year, according to the data released by H2 Gambling Capital, which is why this expansion was a significant step forward for OpenBet. The company is completely prepared for this since its advanced sports betting experience is already both safe and thrilling.
15.?? French competition watchdog approves FDJ acquisition of ZEturf
French lottery operator Fran?aise des Jeux (FDJ) has been given the green light by France’s national competition regulator, l’Autorité de la Concurrence, to acquire online horse racing betting site ZeTurf Group. The regulator assessed the risk that the combined entity could reduce competition within the horse racing betting industry to ensure the merger meets its standards.
“The analysis conducted by l’Autorité demonstrated that the new entity had the ability and incentive to consider implementing such strategies and that they would have been effective to the detriment of ZeTurf’s competitors,” the competition authority said.
The regulator then highlighted the potential competition issues regarding horse racing. To address their concerns, FDJ committed to separating its monopoly and competitive gaming operations. They agreed to set up separate websites and applications for each business area, with no common gateway or homepage connecting them.
16.?? Playtika to acquire Innplay Labs for up to $300m
Social gaming developer Playtika has entered into a definitive agreement to acquire Israeli-based mobile gaming studio Innplay Labs for up to $300.0m (￡241.4m/€281.5m).
The deal states Playtika will pay an initial $80.0m but various clauses mean the final price could be far higher.
Further terms of the agreement, including when the deal could close, were not disclosed. However, Playtika did state the proposed acquisition remains subject to certain, customary closing conditions.
Founded in 2019, Innplay Labs counts Water Ride, Brix Master and Animal Kingdom among its current titles. The studio has secured investment from several parties including Vgames, a venture fund for game entrepreneurs.
#Legal & Regulation:
17.?? Chile Supreme Court rules sports betting illegal
The Supreme Court of Chile has ruled that online sports betting from offshore websites is illegal in the country, siding with national lottery operator Polla Chilena de Beneficencia in the process.
The Court upheld a challenge from the lottery operator that claimed all online gambling in Chile as illegal in a 5-0 unanimous vote. Judges then ordered the government to block access to websites that must be “considered illegal until the government finds a regulator status for online gambling”.
“Online gambling is prohibited in our legal system, treating the debts contracted in said games of chance as an illicit object, as well as criminally sanctioning those who enable said activity, as well as those who participate in it,” read the court’s statement.?
18.?? German gambling regulator GGL imposes €50,000 fine on Red Rhino
The German federal gambling regulator, the GGL, has issued a €50,000 fine against Malta-based Red Rhino for offering online gambling without a German licence
The regulator says that although the operator had withdrawn its German-facing site platincasino.de from the market, German players could still play on platincasino.com, which is not on the GGL’s whitelist of approved igaming brands.
The regulator said it had also issued a high penalty against the payment provider that facilitated payments to Red Rhino but did not specify the amount or name the provider. The GGL warned that it will continue to take enforcement action against online gambling sites that target the market without a licence. It said penalties could be repeated or increased until unlicensed activities are halted.
19.?? MrQ operator Lindar Media hit with ￡691k UKGC regulatory settlement
The Gambling Commission began a regulatory review of MrQ, operated by Lindar Media, following a compliance assessment conducted in September 2022. As a result, Lindar Media is now set to pay ￡690,947 ($854,664) in the form of a regulatory settlement.
The operator – which trades as MrQ and runs MrQ.com – will pay the money as part of a settlement with the Commission. All ￡690,947 will go to 'socially responsible causes.'
The regulatory review found failings in MrQ’s processes aimed at preventing money laundering and protecting individuals from being harmed or exploited by gambling.
The offences commenced between July 2021 and September 2022.
A Commission compliance assessment and subsequent regulatory review found failings in MrQ’s implementation of its ‘AML policies, procedures and controls deficiencies in its responsible gambling policies, procedures, controls and practices.’
#Tech:
20.?? BetConstruct to improve gambling app creation with Bet Easy
Gaming technology and services supplier BetConstruct has launched Bet Easy, a cross-platform solution for creating mobile betting and gambling applications. The new solution is "crafted to transform the landscape of mobile betting and gambling apps," offering a new option for both iOS and Android users.
In a press release, the provider detailed that what sets its solution apart from traditional native app development is that it doesn’t require two separate teams to work on operational systems. "Now, with just one single team, partners can deliver a unified UI/UX across all mobile devices, significantly improving the user experience," BetConstruct says.
Furthermore, BetConstruct has sped up the setting up process of the app. Through its flutter feature, Bet Easy enables simultaneous development across multiple platforms. As a result, partners can get their own platform in as little as 4-5 weeks, "so they can stay ahead of the competition and meet their users' needs rapidly."