iGaming Wrap-Up of CW 39-40 2024
#iGaming News of the week
0.?????? US gaming execs positive about current business conditions but future outlook mixed, says AGA report
US gaming executives are positive about current business conditions but feel cautious about future growth expectations, according to the latest American Gaming Association (AGA) Gaming Industry Outlook.
The majority of respondents (88%) view the current state of the gaming industry as either good or satisfactory. Meanwhile, executives have a more conservative outlook on future business conditions.
When it comes to the future of the sector, respondents are split on whether they?expect conditions to improve over the next three-to-six months (3% net positive) or a decrease in customer activity (28% net negative).
"After years of very strong consumer gaming spending growth, expectations around customer activity over the next three to six months have cooled considerably," said AGA Vice President of Research David Forman. "Still, gaming businesses remain well positioned, with executives touting strong balance sheets and more viewing access to credit as easy than restrictive for the first time in two years."
#Breaking News
1.?????? Online gambling in the Netherlands: new deposit limits enter force
New protection measures for Dutch consumers gambling online come into effect from today (1 October), with players facing tighter restrictions on deposits.
The regulations, the Dutch government said, are designed to help operators monitor player behaviour and intervene to prevent gambling-related harm. All licensed operators in the Netherlands must abide by the new measures.
Among the new rules are deposit thresholds that relate to a player’s net deposit during a calendar month. If the net deposit exceeds €700 (￡583/$777), any further deposits will be blocked until the end of that calendar month. This limit will be set lower (at €300) for young adults (those aged 18-25). These limits will be automatically enacted on the first day of each calendar month.
2.?????? Brazil Allows 89 Operators to Operate Until the End of the Year
Brazil’s Ministry of Finance announced that 89 operators will be permitted to offer their products by the end of the year. The country had previously announced that the period from October 1 to December 31 will be a transitional phase during which only those serious about doing business in Brazil will be allowed to operate.
Brazil had warned offshore companies that they must exit the country after October 1, unless they have submitted an application for a license.
Now, 89 operators will be allowed to continue running a total of 193 brands by the end of the year. The Ministry of Finance’s Secretariat of Prize and Bets (SPA) published a list of these brands, which included the likes of bet 365, Betano, Betway, Betsson, Entain, Flutter, LeoVegas and Superbet, among other notable names.
3.?????? Allwyn International moves business over to Switzerland
Multi-national lottery operator Allwyn International has relocated to Switzerland and become a Swiss entity.
The company, which operates the UK’s National Lottery and related products, has moved from the Czech Republic. The relocation has no effect on Allwyn’s Czech workforce or lotteries or gaming operations.
“As of the date of relocation, the €500m 3.875 per cent senior secured notes due 2027 originally issued by Allwyn International have been transferred to Allwyn Entertainment Financing (UK) as substituting issuer,” the company added.
“Allwyn Entertainment Financing (UK) is the issuer and borrower of certain other Allwyn bonds and loans. AIAS has become a guarantor of the 2027 Notes, which continue to be guaranteed and collateralised pari passu with other indebtedness under Allwyn’s intercreditor agreement dated December 16, 2020.”
4.?????? Bet365 opens new US headquarters and secures $14m in tax credits
Bet365 has officially opened its new US headquarters in Denver, Colorado, to enhance its brand awareness in the North American market.
The company plans to hire nearly 1,000 employees and anticipates onboarding over 300 within the first year of its Denver operations. Approximately 50 employees were already on staff at the time of the opening.
The new headquarters will offer positions across a full suite of services, including customer service operations, trading, software development and technology, with additional openings in marketing, legal, finance, facilities, human resources and recruitment.
Bet365’s decision to locate in Denver was influenced by the city’s skilled workforce and its reputation as a hub for innovation and technology.
5.?????? GiG begins new Stockholm listing as B2B technology group
Gaming Innovation Group (GiG) has begun its first day of trading as an independent iGaming technology group, listed on Stockholm’s Nasdaq First North Premier Growth Market. Stockholm investors were informed that “GiG continues to leverage its enormous potential for driving growth and innovation with its proprietary technology across the global B2B iGaming sector.”
A reorganised GiG will service its B2B technology suite, including the iGaming platform CoreX, sportsbook SportX, and the new North American-focused social casino sweepstakes platform, SweepX.
“Today is the realisation of our long-held confidence in the company’s ability to thrive independently. By focusing exclusively on our technology and full end-to-end services, we are unlocking new avenues for growth and innovation,” commented Petter Nylander, Chairman of the Board of GiG Plc.
6.?????? Evolution partners with Atlantic Lottery in Canada
Evolution has come to an agreement with the Atlantic Lottery, which will see its games made available to players in three provinces in Canada.
Through this partnership, players in New Brunswick, Newfoundland & Labrador and Nova Scotia can now access a variety of games from Evolution, NetEnt, Red Tiger, Big Time Gaming and Nolimit City, via the Atlantic Lottery online casino platform.
This marks the fifth Canadian provincial organisation that has partnered with Evolution; with the company previously agreeing deals with British Columbia Lottery Corporation (BCLC), Alberta Gaming, Liquor and Cannabis (AGLC), Ontario Lottery and Gaming Corporation (OLG) and Loto-Québec.
Evolution North America CEO Jacob Claesson said: “We are beyond excited to partner with AL and expand Evolution’s presence into Atlantic Canada.?
7.?????? FanDuel sued for $250m by former NFL team employee
A former Jacksonville Jaguars employee filed a $250m lawsuit against FanDuel today (1 October) alleging it exploited his gambling addiction and ignored signs that he was using stolen funds to place bets.
Amit Patel, who is currently serving a 6.5-year prison sentence, claims in the lawsuit filed in the Southern District of New York that he gambled over $20m on FanDuel’s daily fantasy sports platform between late 2019 and early 2023.
The complaint alleges that FanDuel was aware of Patel’s addiction through data it collected on his deposits, bets, and gambling frequency.
Patel’s attorneys said: “To be clear, this suit does not allege liability on the basis that Defendants passively permitted an addicted gambler to use its platform.
“Rather, this suit alleges violation of statutory and common law because Defendants actively and intentionally targeted and preyed on Plaintiff with incentives, credits, and gifts to create, nurture, expedite, and/or exacerbate his addiction with the only possible outcome that he would ultimately hit rock bottom.”
#US / Canada
8.?????? Hard Rock International and NY Mets Owner Steve Cohen Officially Unveil Renderings of Metropolitan Park
New renderings of Metropolitan Park, the partnership between Steve Cohen and Hard Rock International, give New Yorkers a look of what turning empty parking lots into 25 acres of new public park will actually feel like. The $8 billion privately funded project is now moving forward with ULURP (Uniform Land Use Review Procedure) New York City’s process for public approval of the development. The design and the layout were informed over three years of community engagement by Cohen and his partners with local residents, small businesses, Mets fans, and Queens community leaders to transform the area.
“We are very proud to present New Yorkers with the visualization of what’s possible for a world-class city and its surrounding neighborhoods. We’d like to thank our partners for working with us to create something truly transformative. We take great pride and the utmost care in bringing forth something that will create much needed jobs and memories that will live on for generations to come,” said Jim Allen, Chairman of Hard Rock International.
9.?????? More BetMGM betting violations revealed in Massachusetts
An external audit commissioned by BetMGM in Massachusetts revealed multiple potential violations of state wagering regulations. The Massachusetts Gaming Commission (MGC) decided on Wednesday (2 October) to handle the newly found violations and two existing ones in a single adjudicatory hearing.
After BetMGM allowed banned prop bets on college football games and professional soccer matches, the operator hired Gaming Laboratories International (GLI) to audit its books. That company found additional potential “non-compliant” bets.
Commissioners decided to hear all of the issues together in a single adjudicatory meeting. No date was set.
10.?? Sweepstakes operator VGW exits Connecticut after cease-and-desist
Leading sweepstakes casino operator VGW Holdings has been ordered by the Connecticut Department of Consumer Protection to stop offering its services in the Constitution State.
A letter dated February 2024 was sent to VGW, accusing the company of conducting unlicensed gambling in violation of state law. It follows increased scrutiny on sweepstake operators in the US in 2024, as well as calls for public officials to clamp down on their activities.
The letter said: “VGW is hereby ordered to immediately cease and desist offering its games and services to Connecticut customers.
“Failure to comply may result in additional action including, but not limited to, civil penalties under CUTPA and/or criminal penalties under Conn. Gen. Stat. 53-278b and 53-278d.”
11.?? Brooklyn Man Pleads Guilty in Sports Betting Scheme Involving Jontay Porter
A man from Brooklyn has pleaded guilty in a sports betting scandal that had an impact on former NBA player Jontay Porter resulting in Porter’s permanent exclusion from the league earlier this year.
领英推荐
Long Phi Pham also called Bruce Pham confessed in federal court to plotting to commit wire fraud in a plan where Porter underperformed in two games, reported Associated Press. Pham is set to attend a sentencing hearing in April 2025 where he might receive up to 20 years in prison.
The case revolves around a scheme Pham cooked up with three other guys to rig betting results by talking Porter into faking injuries and dropping out of games. The group had a chance to pocket over $1 million by betting against Porter’s expected performance, according to prosecutors. But their plan started to fall apart when a betting company got suspicious and stopped paying out a big chunk of the winnings.
12.?? Judge dismisses Atlantic City casino-hotel price-fixing lawsuit
A US District judge on Monday (30 September) dismissed a consumer class-action lawsuit that alleged price-fixing in the setting of room rates by Atlantic City hotel-casinos.
In the lawsuit, the plaintiffs argued that the use of a revenue-management platform led to overcharging for rooms in Atlantic City. Ultimately, they said, using the platform amounted to price fixing. The plaintiffs allege that hotel owners submit real-time price and occupancy data in a shared software programme to set prices.
Caesars Entertainment, MGM Resorts International and others are named in the lawsuit.
13.?? California tribes able to sue cardrooms after Newsom signs bill
California Governor Gavin Newsom signed a bill into law yesterday (30 September) that allows state tribes to sue cardrooms.
Senate Bill 549, also known as The Tribal Nations Access to Justice Act, allows tribes to request judges to review whether California’s around 80 cardrooms are illegally offering games like blackjack, poker and baccarat.
While tribes have long argued cardrooms are breaching their exclusivity agreements, they had previously been prevented from entering legal proceedings by their sovereign status which left them without legal standing to sue.
California Nations Indian Gaming Association (CNIGA) chairman James Siva said: “We are incredibly pleased that the California Legislature and governor Newsom have turned good legislation into law."
14.?? Pennsylvania gaming revenue hits record $5.89 billion in FY24
The Pennsylvania Gaming Control Board (PGCB) reported a record-breaking year for the state’s gaming industry in its 2023-2024 Annual Report, with total revenue reaching $5.89 billion and generating $2.54 billion in tax revenue. The report underscores the growing success of the industry, which includes revenues from slot machines, table games, sports wagering, internet gaming, fantasy sports contests, and video gaming terminals (VGTs).
“At the same time as we report the positive economic impacts of legalized gambling, the Gaming Control Board remains committed to protecting our citizens,” said PGCB Chair Denise J. Smyler. “The PGCB ensures games are properly regulated and fair, and that tools are easily available to assist those who develop adverse gambling habits.”
Pennsylvania’s gaming operations now include 17 land-based casinos, 18 retail sports wagering locations, 12 online sports wagering sites, 22 online casino platforms, 74 truck stops with VGTs, and 9 fantasy sports contest sites, all contributing to the state's booming gaming market.
15.?? Ohio Sets Monthly Revenue Record in August with $204.1M Raked In
Ohio’s 11 casinos and racinos have managed to bring in as much as $204.1 million, outpacing expectations and setting a new record, the Ohio Casino Control and Lottery Commission reported.
Revenue Sets New Record in Ohio for August
Factoring in the latest revenue rake, licensed operators in the Buckeye State have brought in $1.6 billion in revenue year-to-date.
August 2024 was not expected to be the biggest month on record for Ohio, as it had fewer weekend game days, but it managed to surpass expectations nevertheless bringing in a ton of extra revenue.
#M&A & Finance
16.?? Filing Claims FanDuel Founder Eccles ‘Nearly Destroyed’ Company
FanDuel co-founder Nigel Eccles “nearly destroyed” the company before it was sold to Paddy Power Betfair, the defendants claim.
The statements were made in a memorandum filed Sept. 16 supporting a motion to dismiss Eccles’s second amended complaint in the attempt to get original FanDuel shareholders what they believe they should have.
Eccles and his co-plaintiffs are suing a large group headlined by shareholders that controlled the board, Shamrock and KKR, for more than $120 million, the combined stake owed to ordinary shareholders they say was due at the time FanDuel was sold. The two firms held preferred shares, which they say were paid out first based on a plan made by FanDuel.
“The reality, as their new documents show, is that after Lead Plaintiff Nigel Eccles mismanaged [FanDuel Limited] into the ground, the Director Defendants were forced to step in, pursue a buy-out that Plaintiffs had facilitated, and accept the highest available offer—indeed, the only lifeline that would save FDL from collapse,” the filing says. “As a result, Plaintiffs’ claims all fail.”
FanDuel does not comment on pending litigation, according to a spokesperson. Eccles declined to comment as well.
17.?? Morgan Stanley: Wynn UAE Expansion could boost stock
Wynn Resorts’ upcoming project in the UAE could work to boost the company’s stock price, according to analysts from Morgan Stanley.
The note, which upgraded Wynn to “Overweight” with a 12-month price target of $104, suggests that the UAE opportunity is currently undervalued by investors. Analysts estimate that the UAE property could generate approximately $1.8bn in total revenue and $500m in EBITDA by its third year of operation.
The UAE expansion is particularly promising due to the country’s favourable demographics and Wynn’s position as the sole operator in the market for at least the first 3-5 years.
The analysts valued the UAE project at $12 per share, with potential to add 10-20% to Wynn’s stock price.
#Legal & Regulation:
18.?? Sweden channelisation rate at 86% according to Spelinspektionen report
Sweden’s gambling regulator has calculated the latest channelisation rate at 86 per cent for 2023.
The government had commissioned Spelinspektionen to help the industry better understand the prevalence of the illegal market and what percentage of players are playing via licensed operators.
Alongside data supplied by H2 Gambling Capital, a survey of player behaviour, the measurement of internet traffic and the estimation of turnover from internet traffic can together give an accurate picture of the channelisation rate, the regulator said.
“The results show that the degree of channelling varies depending on the method and form of play,” said Spelinspektionen’s director general, Camilla Rosenberg.
19.?? Brazil’s finance minister outlines illegal gambling enforcement plan
Brazil’s minister of finance outlined the government’s approach to illegal gambling enforcement yesterday (30 September).
In a radio interview, Fernando Haddad (pictured) said the ministry will implement new measures to protect people from unlicensed gambling sites. It follows the government’s decision last month to suspend any operators which have not applied for a licence from the beginning of October.
Haddad said: “This week we will take down websites that have not even requested official regulation. The Treasury’s decision to suspend unregulated betting in the country will come into effect immediately,”
20.?? Malta Gaming Authority suspends Goldwin licence
The Malta Gaming Authority has suspended Goldwin's gaming licence following regulatory breaches, requiring the company to provide access to player accounts and refund all player funds.
The Malta Gaming Authority (MGA) has suspended the gaming licence of Goldwin. Goldwin, holder of MGA licence MGA/B2C/533/2018, is no longer authorised to operate any gaming services.
However, the company is required to maintain access to player accounts and refund any outstanding balances, in accordance with Maltese law.
21.?? UKGC survey sees increase of female bettors during Euros
British betting activity during the 2024 Euros showed a healthy increase, especially among females, according to the UK Gambling Commission (UKGC).
A research co-led by consumer behaviour analyst Yonder showcased that the success of England in this year’s competition naturally strengthened the interest in the tournament, all the way through to the very final where the Three Lions went against Spain.
When looking at the betting activity divided by gender, a total of 20.8% of males reported betting on the Euros during the pre-tournament stage – against the backdrop of 6.6% of females. Mid-tournament saw 27% of males placing a bet, with 9.6% of the opposite gender doing the same.
In the last wave, a total of 13.3% of females reported placing a bet compared to a relatively unchanged male customer base of 27.3%, with Yonder concluding that the ‘notable increase’ in female bettors ‘significantly outpaced the rate of increase among male respondents’.
22.?? GamCare launches nighttime support for gambling harm victims
UK gambling harm prevention charity GamCare has launched a new chat service operating during night hours to further support victims of problem gambling.
The chat rooms are available every Tuesday between 1 a.m. and 2 a.m. and will serve as an accessible support tool that offers a confidential environment for those affected by gambling-related harm. According to the charity, the service poses an opportunity for vulnerable groups to “connect with others who truly understand what you’re going through”.
Each chat room will be moderated by a certified GamCare advisor who will follow strict policy guidelines when it comes to treatment and resource provision, inviting people to a conversation about personal experiences, coping strategies and navigating challenges.