iGaming Wrap-Up of CW 38-39 2024
#iGaming News of the week
0.?????? Flutter to double earnings by 2027 as leadership opens $5bn buyback programme
Flutter Entertainment has declared its medium-term goal to double its corporate earnings to more than $5bn by 2027.
The company noted that by 2027, as more states legalise sports betting and online gaming, Flutter expects around 80% of the U.S. population will have access to regulated sports betting markets. FanDuel, which currently holds the largest market share in U.S. sports betting, is forecasted to continue its dominance, contributing significantly to the group’s revenue growth.
Alongside its earnings goal, Flutter forecasted a significant rise in group revenues, targeting $21bn by 2027, a sharp increase from the current estimate of $14bn. To further incentivise shareholders, the company also announced a $5bn share buyback program, reflecting its confidence in future cash flow generation and long-term value creation.
Peter Jackson, commented:“I am very excited about Flutter’s strong trajectory and how well positioned we are to capitalize on a global regulated addressable market of nearly $370bn. With our unmatched scale, diversification, and our global differentiator, The Flutter Edge, we have clear sustainable global advantages that will continue to drive sustainable growth and power our financial model with operating leverage building over time.
#Breaking News
1.?????? Entain calls for global crackdown on black market gaming operators
Governments worldwide must take decisive action to tackle the growing threat of black market gaming operators, according to a new report by consultancy Regulus Partners. The report, commissioned by FTSE 100 sports betting group Entain, outlines a series of policy measures aimed at curbing the activities of unlicensed operators and closing a substantial tax gap in the UK and other international markets.
The report estimates that black market gambling in the UK alone could contribute to a tax shortfall of up to ￡335 million ($448 million) over the next parliamentary term. Research by Frontier Economics has pegged the annual tax loss at ￡70 million ($93 million), a figure that could rise without intervention.
Countries such as France and Germany are also heavily affected by unlicensed gambling, with 45% and 60% of gambling revenue lost to black market operators, respectively. According to Regulus, restrictions on popular gambling products in these markets have pushed players towards illegal platforms.
2.?????? Evolution Georgia strike reaches historic stalemate
The strike at Evolution’s operations in Georgia has reached a stalemate as neither party is willing to change its position.
Last week Swedish unions, including the Engineers of Sweden and Unionen, doubled down on their solidarity with the striking workers after a meeting with Evolution’s Swedish management “led to zero progress”.
“Evolution firmly rejects any form of violence, aggression, or illegal activity and will continue to work in accordance with established processes and applicable local laws to resolve the situation. We have urged, and will continue to urge, the union to do the same,” Linton concluded.
3.?????? Former police officer sentenced for ￡44m betting syndicate fraud
Ex-Kent Police officer Michael Stanley, 68 year old from Walderslade, Kent, was sentenced to six years’ imprisonment over horse racing betting fraud.
The prosecution showed that the fraud was carried out between 2013 and February 2019. Michael Stanley operated a Ponzi-style scheme under the name 'Layezy Racing Syndicate'. He convinced more than 6,000 gamblers that his formula for betting on horse races would lead to a higher success rate. In reality his Layezy Racing syndicate was failing but Stanley continued to falsely report that the scheme had made a profit.
The victims thought they were profiting from successful bets, but in truth, the money they received came from the investments of other members. He defrauded members of a horse racing betting syndicate out of millions of pounds and was spending their money on 23 racehorses, a villa and apartment in Spain for ￡400,000, new vehicles, expensive jewellery and he also bought ￡1.6 million of cryptocurrency and ￡622,000 worth of silver bullion.
4.?????? Jay-Z sweetens pot on Times Square casino bid with $250M in proposed grants to Hell’s Kitchen
Jay-Z is looking to sweeten the pot on his Times Square casino bid.
The rap icon and Roc Nation will commit more than $250 million in grant money for Hell’s Kitchen if they land the bid to create a Caesars Palace Times Square casino, Page Six has learned.
The hip hop mogul’s Roc Nation-led group would give an initial $15 million to the local community — plus regular grants based on .5% of the casino’s performance.
Jay-Z said in a statement announcing the grant initiative: “We are New Yorkers. Supporting and providing opportunities for our neighborhoods and community isn’t just a part of Roc Nation’s ethos… it’s our collective responsibility.”
The “Empire State of Mind” artist added, “Any proposal that wins a gaming license will undoubtedly profit. Our vision is to give back to New York and ensure that the Broadway community, Hell’s Kitchen, and the surrounding businesses and areas all benefit. And not just for a minute, but for the long-term.”
5.?????? Operators face second class action over Dutch player refunds
The Dutch online gambling sector is facing mounting legal challenges, as advocacy group Gokverliesterug plans to launch a class action lawsuit against major operators such as Unibet, Bwin, and PokerStars.
Lawyer Benzi Loonstein expects the Supreme Court to release its decision on the matter at the beginning of 2025.
The Netherlands is just one of several European countries where legal systems are dealing with the question of player compensation for pre-regulation losses, following similar cases in Austria and Germany.
6.?????? Pix gambling transfers in Brazil up 200% since January
In Brazil, betting transfers using Pix have increased 200% since January, Roberto Campos Neto, president of the Central Bank of Brazil, has reported. He also expressed concerns over the increase in gambling among those receiving financial benefits.
The Central Bank president pointed to the increase in Pix usage in relation to gambling this year, while warning about the potential fiscal impacts.
“We can map what Pix has done for these platforms and the growth since January has been quite large,” Campos Neto told the conference, as reported in Brazilian newspaper O Globo. “It has gone up by more than 200%.
Speaking to iGB in June Hugo Baungartner, CCO for local operator Aposta Gahna, said Pix is used by 99% of the online betting market. “It is really important and the government thinks they can block those operators through this payment method. It’s a really fair way to think,” he said.
7.?????? Paul Gauselmann steps down from Merkur Group leadership
Merkur Group has announced that its Founder, Paul Gauselmann, will step down as Chairman of the Management Board effective 1 October 2024, after leading the company for 67 years.
Gauselmann established the group in 1957, transforming it from a small, part-time operation into a global company with annual revenues of approximately €4bn ($4.4bn).
The leadership transition will see Jürgen Stühmeyer, responsible for sales and Manfred Stoffers, who oversees marketing and political affairs, taking on the roles of Vice-Chairs.
Gauselmann stated: “Mr Reinhard’s appointment as Board member responsible for Technology and Development ensures continuity in the area of development that is so important for the corporate group while also creating scope for fresh ideas.”
#US / Canada
8.?????? NY Sports Betting Back To Nine With ESPN Bet Launch
ESPN Bet is live for a soft launch for NY sports betting, just in time for Week 4 of the NFL season.
Penn purchased its NY sports betting licenses from WynnBet in February. The company finished its regulatory paperwork and submitted it to the NYSGC in August.
During the NYSGC hearing this week, commissioners questioned Penn about ESPN Bet’s presence on ESPN college sports coverage. A Penn Entertainment spokesperson confirmed the soft launch with a full launch expected Friday.
New York represents more than 13% of the US online market by population and accounted for 17% of the total US sports betting handle in 2023.
FanDuel has taken 47% of New York wagers by dollar this year. DraftKings is second with 35%.
9.?????? Flutter Entertainment predicts U.S. online gambling market will surge past $60B by 2030
Flutter Entertainment plc (FLUT) has seen its stock surge by as much as 8%, reaching an all-time high after the company revealed a $5 billion share repurchase initiative. This announcement comes alongside a newly updated projection that estimates the North American online gambling market could grow to a staggering $70 billion by 2030, a significant increase from previous forecasts.?
The firm, which operates FanDuel, indicated that approximately $63 billion of this market will stem from the United States. This revision marks an increase from the $40 billion figure Flutter had anticipated during its investor day in 2022. Flutter's global market outlook is equally ambitious, with an estimated total addressable market of $368 billion worldwide by 2030.?
Flutter’s CEO, Peter Jackson, expressed confidence in the company’s position within the market, stating: "We are the No. 1 business here in America with FanDuel, No. 1 in sports, and No. 1 in iGaming, and it gives us a lot of confidence around projecting the size of the market."
10.?? More opposition surfaces to Wynn NY casino project
Manhattan residents and community organisations have added their opposition to that of local lawmakers objecting to the proposal of Wynn Resorts and Related Companies for a $12bn (￡8.96bn/ €10.75bn) casino and residential complex at Hudson Yards on Manhattan’s West Side.
The objections were reported on 24 September by amNewYork. They relate to what are seen as potential negative aesthetic effects on the High Line public park.
The group Protect the High Line said they have been joined by three community organisations in opposing the project. In addition to a hotel and casino operated by Wynn, it would also consist of multiple skyscrapers. This includes 1,500 apartments, two million square feet of office space, a 750-seat public school and a day care centre.
11.?? DraftKings Settles SEC Charges Over Selective Information Sharing
The issue arose from posts on DraftKings CEO's personal X (formerly Twitter) and LinkedIn profiles, which were visible to his followers and violated Regulation Fair Disclosure
领英推荐
The posts in question appeared on July 27, 2023, before the company had shared its financial results for the second quarter of that year. DraftKings’ PR firm shared through CEO Jason Robins’ social media accounts messages about strong growth in existing markets. They pointed out big year-over-year revenue jumps from states where DraftKings already did business. The company did not share these facts with all investors until a week later when DraftKings put out its quarterly earnings report. The SEC did not like this delay. They stressed that companies need to make sure all investors get the same information at the same time.
Even though DraftKings asked for the posts to be taken down, the regulator pointed out that this did not fix the problem. The company did not tell the public about it soon enough.
https://www.gamblingnews.com/news/draftkings-settles-sec-charges-over-selective-information-sharing/
12.?? Massachusetts regulator gives Penn green light for ESPN Bet retail rebrand; removes betting on college awards from menu
As Penn Entertainment and ESPN Bet prepare to launch in New York, Penn got approval on Thursday (26 September) to rebrand its Massachusetts brick-and-mortar sportsbook. The company has rebranded and opened two others in the last two weeks.
Besides giving Penn the green light for its rebrand, the Massachusetts regulator approved a clarification to its betting markets. The state has some of the stiffest regulations around college wagering in the US. It does not allow for college-player prop bets. On Thursday it clarified that it also will not allow betting on individual college awards, like the Heisman Trophy in college football or the John Wooden Award in college basketball.
#M&A & Finance
13.?? Flutter claims 11% Brazil market share following NSX acquisition
Flutter is among the top three betting companies in Brazil with an 11% market share, thanks to its acquisition of a 56% stake in Betnacional parent NSX Group. Its position in Brazil was outlined in some detail during the group's Capital Markets Day presentation.
Flutter said the NSX Group acquisition would provide the group with necessary local expertise in the Brazilian market. The deal is expected to close by Q2 2025 and will help establish a new ‘Flutter Brazil’ business, which will include its existing Betfair brand. NSX Group’s Pagbet, MrJack.bet and Betpix brands will also fall under the new business arm.
“We think next year will be a point in time to grab market share,” international CEO Dan Taylor told investors, though he warned gambling taxes care are currently a big unknown, as is how big the market will ultimately be. But Flutter expects its early mover advantage within the first year of legal betting to reap success in the market.
14.?? Star Entertainment agrees deal with creditors amid A$1.69bn loss
Troubled casino chain Star Entertainment has agreed a debt deal with its creditors as it reported massive FY24 losses.
The operator’s lenders executed a commitment letter yesterday (25 September) for a further A$200m (€123.3m) of credit, to be drawn in two tranches from October to December 2024.
The debt facility is priced at 13.5% per year, with the existing A$300m credit agreement priced at this level.
“We were very reasonable in considering tax deferral, which is a common arrangement where you have taxpayers who can’t meet their tax obligations,” Premier Steven Miles said at an impromptu press conference, as reported by ABC. “But we wouldn’t entertain that arrangement while executives paying themselves performance bonuses.”
15.?? Star Entertainment net profit down 71% in FY24 report
The group’s corporate lenders have executed a commitment letter for a new debt facility of up to AU$200m (US$137.4m) in two-tranches.
The Star Entertainment Group has released its financial figures for FY24, highlighting a difficult period for the operator.
Total revenue during the period reached AU$1.69bn, representing a 10% drop year-on-year, which The Star indicated is because of factors such as cost of living pressures, casino operating reforms and loss of market share.
Meanwhile, EBITDA experienced an even sharper decline, down 45% to AU$175m. But, the operator has stated that both EBITDA and revenue totals were in line with previously announced earnings guidance.
#Legal & Regulation:
16.?? Illegal gambling in Germany: regulator thanks public for tip offs
The German federal gambling regulator, the GGL, has reported that it has received 1,500 tipoffs from the public about online gambling via its reporting portal since it began its regulatory duties at the start of last year. The regulator thanked the public for providing information in an announcement that was made to coincide with Germany’s action day against gambling addiction yesterday.
The GGL said that half of the tipoffs it received were related to illegal online gambling, which regulated operators continue to see as a major problem in the German market. The other half of the tipoffs related to claims of potential irregularities involving licensed operators.
GGL board member Ronald Benter welcomed the public’s action. He said: “This initiative makes an important contribution to raising awareness of the risks of developing gambling addiction. We have the common goal of preventing gambling and betting addiction.
17.?? Study suggests Canadian regulators should pace themselves when crafting RG rules
Within a year of launching legal online gambling in Canada, complaints about frequency and content of advertising were common. A new study suggests regulators are moving too quickly to appropriately address the issue.
The Canadian Gaming Association on Wednesday (25 September) released an academic and policy study. It posits that new gambling regulations in Canada are “evolving at a faster rate than the accompanying evidence base”. This could ultimately mean that regulations don’t tackle targeted issues and could be “insufficiently nuanced”.
“The approach to regulation in Ontario was shaped in part by the necessity to integrate grey market operators into a regulated framework, ensuring that all market participants adhere to consistent standards of consumer protection and ethical advertising,” researchers wrote. “Many considerations about the current state of the market are dynamic and may change without regulatory intervention.”
18.?? Study calls to end self-regulation as gambling ads flood Premier League
New research revealed a significant rise in gambling advertising during the Premier League’s opening weekend, with messages nearly tripling compared to the previous season.
The study, led by the University of Bristol, found that fans were inundated with nearly 30,000 gambling messages across TV, radio, and social media during live match coverage and related reports.
According to the researchers, nearly 75% of these posts breached key advertising regulations, making them particularly harmful to children and vulnerable individuals. A previous study by the University of Bristol also explored the fine line between advertising and content marketing, with industry bodies such as the American Gaming Association (AGA) arguing that not all social media content should be classified as advertising.
“This new evidence shows how much the industry is out of control – with gambling ads now flooding Premier League coverage,” said Raffaello Rossi, a marketing researcher at the University of Bristol and co-lead author of the report.
19.?? New Zealand High Court finalises SkyCity AML penalty
The New Zealand High Court has formally imposed a NZ$4.16m (￡1.96m/€2.34m/US$2.61m) on SkyCity Entertainment Group for breaching anti-money laundering and countering financing of terrorism (AML/CTF) obligations in the country.
“SkyCity is aware that as a casino operator we have a responsibility to combat money laundering and terrorism financing,” Walbridge said. “This is a responsibility we take very seriously. “We will continue to upgrade our AML and CTF systems to ensure we meet both regulatory obligations and the expectations of the communities in which we operate.”
SkyCity in May agreed with the Australian Transaction Reports and Analysis Centre (Austrac) to pay a AU$67.0m civil penalty. This also relates to historical AML and CTF failings; this time at its land-based casino in Adelaide.
20.?? Philippine government task force begins orderly POGO shutdown
The Philippine government formed a multi-agency task force to oversee the shutdown of 41 licensed Philippine Offshore Gaming Operations (POGOs). President Ferdinand Marcos Jr ordered a ban on POGOs in July.
In addition to reputational risks for the Philippines, the social costs were “unquantifiable,” Recto added. “This includes the loss of life as well as physical and psychological harm to victims of criminal activities.” Allowing POGOs to operate “eroded institutional integrity,” he said.
The raids of POGO operations in Pampanga and Tarlac provinces were the last straw. They yielded evidence of online scams, money laundering, human trafficking and the torture of workers. The DOJ is now investigating rumours of a mass grave at the Pampanga site.
21.?? Norsk Tipping fined €383,000 by Norway regulator for payment error
Norsk Tipping has been fined NOK4.5m (€383,000) by the country’s gambling regulator for a payment error.
The Lotteries and Foundations Authority said the “serious breach” of the Money Gambling Act occurred after the state-owned monopoly mistakenly paid a player NOK25m on its KongKasino game in March.
The payment violated the country’s rules on prize limits, which limits players to NOK100,000 in winnings for online casino games.
While the Authority said it understood Norsk Tipping cannot prevent all incidents, it said the existing procedures had been inadequate.
#Tech:
22.?? Stats Perform unveils AI-powered, immersive features for Bet LiveStreams
Since pioneering live video streaming for sports betting almost 20 years ago, Stats Perform has strived to continue leading the space in both rights and product innovation, ensuring video experiences are tailored for more trusted and entertaining betting, across the world’s biggest betting sports.?
At the SBC Summit in Lisbon, the company be presenting their latest cutting-edge range of new AI-powered product upgrades to Bet LiveStreams, comprising:
·?????? Integrated, clickable in-play odds.
·?????? Interactive live Opta stats, including the new & hugely popular Opta Points.
·?????? Multi-game instant highlights.
·?????? A new way for your bettors to enjoy our vast Bet LiveStreams coverage.
SBC News sat down with Alexander Lanegger, SVP Product at Stats Perform, to hear more about the new features, Opta Interactive Overlays, Multi-Match Highlights Hub and Live Match Galleries.