iGaming Wrap-Up of CW 40-41
#Breaking News
1.??????UKGC sanctions GGPoker ￡670K for social responsibility failings
The UK Gambling Commission (UKGC) has summoned a penalty of ￡672,000 on the licence of NSUS Limited.
The penalty, ordered on 22 September, relates to social responsibility and anti-money laundering (AML) failures registered by NSUS, the operating company of GGPoker UK.
The company is reported to have failed on its social responsibility duties to identify and engage with customers who are at risk of experiencing gambling harms.
The Commission’s report detailed that NSUS had failed to take reasonable steps to prevent marketing material being sent to self-excluded customers – in which the company is alleged to have sent promotional emails to 125 self-excluded customers.
Further AML failings included NSUS being unable to conduct adequate risk assessments of its business being used for money laundering and terrorist financing.
The UKGC further underlined that NSUS did not ensure that it had the appropriate policies, procedures and controls to prevent money laundering and terrorist financing.
?2.??????Fanatics ready to launch US sports betting operations in January 2023
Fanatics CEO Michael Rubin has finally lifted the veil on his firm’s entry into real-money sports wagering and revealed the sports merchandising giant will kickstart its US betting operations in January.?
Rubin, who spoke at the Sports Business Journal World Congress of Sports in New York, said Fanatics intends to be live in around “15 to 20 states” by the start of the 2023 NFL season.
“We’ll be in every major state other than New York, where you can’t make money,” said Rubin, referring to the state’s 51% tax rate for licensed sportsbook operators.
“We do like to make money, by the way. It’s this crazy concept in business – where we have revenue, we try to have profits that follow it,” he added.
Last year, Fanatics together with rapper Jay-Z and Penn National Gaming’s Barstool Sportsbook applied for a New York online and mobile sports betting licence, but the group’s application was rejected.
Rubin also highlighted that sports betting and Fanatics’ other business segments could bring in $8bn in profits over the next decade, which “is a pretty massive number”.
Fanatics has recruited a high-profile executive team led by former FanDuel CEO Matt King and trading expertise in the shape of former Sky Betting & Gaming executive Andy Wright.
In May, the company applied to register the “BETFANATICS” trademark with the US Patent and Trademark Office, fuelling rumours that Fanatic’s long awaited move into the sports betting space was imminent.
While many believe Fanatics has the potential to become a market leader in the future alongside FanDuel, DraftKings and BetMGM, it is not yet known how exactly the company plans to enter the market.
?3.??????Lottery.com auditors resign
Troubled lottery broker and informational portal Lottery.com has been struck with another blow with the announcement that independent auditors Armanino LLP have resigned.
Armanino LLP, a top-25 US accounting and consulting firm, had audited Lottery.com’s financial statements for the year ending 31 December 2021. However, the business submitted a resignation letter on 27 September 2022.?
The auditors had previously been the party that discovered a line of credit which a subsidiary of the business had entered into and then did not record in any financial statements.
This unrecorded line of credit was the cause of a $30m shortfall in the business’ accounts. In July, the shortfall was made public following Armanino informing the company on the discrepancies with its financial statements. This was followed by the resignation of its president, treasurer and chief financial officer Ryan Dickinson. The company’s CEO Tony DiMatteo III also resigned soon afterwards.
?4.??????German regulator to ISPs: Block Lottoland or pay financial penalty
Germany’s federal gambling regulator Gemeinsame Glücksspielbeh?rde der L?nder (GGL) has ordered more internet service providers (ISPs) to block Lottoland Group websites.
In July, the GGL initiated two administrative proceedings to block access to Lottoland’s offer, which it has deemed illegal. Now, three more ISPs are being asked to similarly prevent access as the authority “steps up the fight.”
Any who fail to comply, said GGL Board Member Ronald Benter, could face fines. He remarked: “Raising awareness among internet service providers is extremely important.
“Providers who, despite the GGL’s order, do not prevent access to unauthorised sites are threatened with fines.”
Since 1 July, the GGL has been responsible for regulating iGaming in Germany and Lottoland has been the target of its first enforcement campaign.
Already, the authority said it has forced several payment providers to “terminate cooperation” with Lottoland as part of an effort to take the group’s services “off the market.”
Blocking websites is another tool in the GGL’s arsenal to combat illegal gambling, which said it “consistently uses all the instruments at its disposal.”
?5.??????Betr Bans Credit Cards and Enforces Deposit Limits
The fast-growing micro-betting application, Betr, boosted its responsible gambling efforts earlier this week. On Monday this week, during the Global Gaming Expo in Las Vegas, the company revealed that it decided to ban funding of sports betting accounts with credit cards.
The effort comes just ahead of the Gambling Harm Awareness week set between October 17 and October 23 this year. Additionally, Betr added further measures to protect young adults by implementing deposit limits. The deposit limits will be targeting the younger demographic, aged 21 through 25, and will seek to protect them from potential harm. The bold decision to ban funding of sports betting with credit cards makes Betr the first US sports betting operator to implement such a restriction.
Joey Levy, the co-founder and CEO of Betr, revealed on Twitter that besides being the first operator to ban credit card depositing for user accounts, the company is the first to enforce a deposit limit for the younger demographic. He explained that sports betting should be an activity that complements the experience for fans. Levy acknowledged that sports betting shouldn’t be much different than a night out for a movie, where customers pay $20 for 2 hours of entertainment. He added that spending $20 for a sports betting event undoubtedly makes the game more entertaining.
?6.??????California sports betting: Tribes, operators believe neither ballot measure will pass in November
Proponents and opponents of the two sports betting initiatives in California believe neither will pass, with less than a month to go before November’s general election. Supporters of Proposition 26 and 27, which both were behind in polls last week, discussed the outlook of the two ballot measures within the framework of the four-day Global Gaming Expo Las Vegas at the Venetian.
Representatives of California tribes tackled the issue on a Tuesday panel. “It doesn’t look great for either proposition,” said James Siva, chairperson of the California Nations Indian Gaming Association, as reported by Las Vegas Review-Journal. Siva said proponents of Proposition 27 – an online sports betting initiative backed by industry heavyweights such as FanDuel and DraftKings – have spent more than $450 million in support of their effort, an amount higher than the one estimated in previous reports.
Those companies also believe that both proposals may fail. In a keynote session featuring FanDuel CEO Amy Howe and DraftKings Founder and CEO Jason Robins that same day, both acknowledged that confusion over the initiatives and the tribes’ opposition to their online betting plan could likely result in defeat – a scenario many have been suggesting for a time now.
When both initiatives qualified for the ballot, many analysts had predicted that both could fail to pass, despite the millions being spent in the battle for legalization. Campaign spending has already broken records, with more than $400 million and counting poured in by both sides. But when two similar proposals show up on the ballot, history suggests that voters are inclined to be confused and vote “no” on both measures.
?#US / Canada
7.??????Regulators Set Timeline for Massachussetts Sports Betting Launch
Gaming regulators set a timeline for the launch of Massachusetts sports betting during a meeting held last Friday.
The Massachusetts Gaming Commission voted 4-0 in favor of launching in-person sports betting in January 2023, in time for Super Bowl LVII, and online sports betting in March, in time for NCAA’s March Madness.
The vote came one day after the commissioners could not agree on a timeline in a separate meeting last Thursday. But while many cheered after regulators finally set a timeline, some still raised concerns that the target date may be “too aggressive” and still could be pushed back.
The approval of the timeline did not come without controversy. During the two consecutive days of meetings, both commissioners Eileen O’Brien and Nikisha Skinner kept on expressing their concerns about the potential burden that the timeline would give the Commission and its staff. O’Brien said on Thursday that the “aggressive” timeline “appears to be a decision made without a wholesome five-person commissioner conversation”. Per O’Brien, the process “should be done in a responsible way that gets it to patrons, and does so in a manner that maximizes the benefits and minimizes the harm”.
https://www.thesportsgeek.com/news/regulators-set-timeline-for-massachussetts-sports-betting-launch/
?8.??????Ontario reports $4.3bn in Q3 iGaming handle
Ontario recorded more than $4bn in online casino gaming and sports betting handle in Q3 2022, its second with legal commercial online gaming.
Ontario’s $4.3bn ($6bn Candian) combined digital casino and sportsbook handle increased more than 25% from the second quarter. That figure did not include free bets or other similar promotions or figures from the province’s lottery-run sportsbook and iCasino site.
Legal commercial gaming began in Ontario in April. Ontario is North America’s most populated legal online casino gaming jurisdiction.
The $4.3bn generated around $193m in operator revenue. There are 24 companies licensed to accept online casino bets and/or sports wagers, which now operate across 42 sites.
There are also now more than 628,000 registered active player commercial iGaming accounts across all sites, not necessarily individual players, up from around 500,000 at the end of the previous quarter. The average monthly spend per active player account was nearly $103, up from $86 the quarter prior.
Provincial gaming officials said Wednesday they expect those figures to increase as more operators come online. Speaking in Las Vegas at Wednesday’s Global Gaming Expo, iGaming Ontario Executive Director Martha Otton said there were more than 40 operators still waiting for licensure.
“A common question I get is, ‘are you pleased with what you’ve seen in the Ontario market so far?’,” Otton said. “It looks like yes, definitely. We are.”
Assuming all applicants are licensed, there would be more than 60 individual digital commercial gaming operators in Ontario, more than double the total of any other US or Canadian jurisdiction.
?9.??????Maryland retail sports betting handle climbs to $31.4m in September
Maryland’s seven sportsbooks registered a sports betting handle of $31.4m in September, a 67.9 per cent increase compared to August’s $18.7m. According to the report from the Maryland Lottery and Gaming Control Commission, sportsbooks posted a 17.6 per cent hold for the month.
The win rate just surpassed August’s 17.2 per cent. Maryland collected $984,308 in taxes, most of which go to the Blueprint for Maryland’s Future Fund.
Live! Casino, which operates a FanDuel Sportsbook, reported a $12.7m handle. It was followed by MGM National Harbor (BetMGM) with $8.6m. Horseshoe Casino (Caesars Sportsbook) and Ocean Downs Casino (TwinSpires) reported a $1.5m handle. Hollywood Casino (Barstool Sportsbook) rounded up the top five with $1m.
The two newest sportsbooks in the state, Bingo World and Riverboat on the Potomac, which launched sports betting operations in September, reported just under $18,000 for their first weeks of operation.
Maryland’s Sports Wagering Application Review Commission (SWARC) has reported that mobile sports betting will be available sooner than expected. It’s decided to let online sportsbooks start operating as soon as they’re licensed instead of making them wait to launch together.
Operators must submit applications for online sports betting licences by October 21. The SWARC will have 45 days to review them. That means Maryland’s first sports betting apps could be up and running by late November or the first week of December.
?10.??Iowa September betting revenue up 345.6% from 2021 despite handle decline
Revenue from sports betting in Iowa increased 345.6% year-on-year in September despite the state reporting a 4.9% decline in player spending.
领英推荐
Sports wagering revenue reached $25.4m (￡23.0m/€26.2m) in the month, up from $5.7m in September 2021 and also 76.4% higher than $14.4m in August of this year, according to the Iowa Racing and Gaming Commission (IRGC).
Of this total, $21.2m was attributed to online betting, while the remaining $4.2m came from retail wagering.
In terms of spending, the $200.2m wagered in September was down from $210.4m in the same month last year, but 63.3% more than in August this year.
Players spent $177.6m betting online, as well as $22.6m at retail sportsbooks across the state.
?11.??New York sports betting revenue hits record $143.3m in September
New York sports betting revenue hit an all-time monthly high in September when online sportsbooks and land-based betting terminals posted a record $143.3m returns. The September total was also 43.9% higher than $99.6m in August.
The state, which fully opened its doors to legal online sports betting back in January, has grown to become one of the most important markets for bettors and sportsbooks in the United States.
And it has been smashing records all year.
Data collected from New York’s nine sportsbooks shows how revenue has bounced back to an all-time high that was previously set in January.
Revenue in sports betting in an important metric because it shows the bare interest customers have in the industry. It doesn’t take into account expenditure, so is a better gauge of how retailers – in this case sportsbooks – are interacting with their customers.
Data shows $143.3m in revenue across the state’s big online sports betting platforms. It accounts for a 15.5% increase on the previous monthly high of $124.1m, set in January.
It’s also the highest revenues since May, and ends a summer dip that sportsbooks were predicting due to the lack of NFL and NBA action to wager on.
#M&A & Finance
12.??Nygaard-Andersen: Interest rates won’t stop Entain from acquiring
Entain chief executive Jette Nygaard-Andersen has said high interest rates will not stop the business from making new acquisitions, and may even “open up new doors”.
Nygaard-Andersen spoke on an earnings call after Entain published a third-quarter earnings update. Revenue was up 2% year-on-year for the group, thanks to both record customer numbers and a favourable impact from currency movements.
When asked whether the new macroeconomic environment and high interest rates would make acquisitions difficult due to the costs of borrowing money, Nygaard-Andersen said that this was not necessarily the case.
“We of course remain vigilant and very prudent,” she said. “But the health of the business remains good. We still have a strong pipeline on M&A and we have opportunities that we will continue to pursue.”
The results came after a busy period of acquiring for the business, with Nygaard-Anderson noting the business agreed nine acquisitions in the past 18 months, including those of Unikrn, BetCity and SuperSport.
?13.??Playtech refinances debts with amended €277m credit facility
As outlined in the Company's Interim Results, announced on 22 September 2022, Playtech has been engaged in a comprehensive review of options to refinance the €530 million senior secured notes and the Company's revolving credit facility ("RCF"), both of which mature in Q4 2023. Playtech is now pleased to announce that it has entered into an amended €277 million RCF until October 2025, with a further one-year extension option.
Given its strong balance sheet and cash generation, Playtech also announces that it is serving notice to redeem at par on 16 November 2022 €330 million of the €530 million senior secured notes due to mature in October 2023. This will be funded using current cash balances with the amended RCF expected to remain undrawn following the early redemption. This will result in cash interest savings of approximately €12 million in 2023. The balance of the outstanding bond will be repaid at maturity, or sooner, taking the total annualised savings to €20 million. Following the early redemption, Playtech will have more than €200 million of available cash on its balance sheet. Playtech's only other material debt obligation is the €350 million senior secured notes maturing in 2026.
Andrew Smith, Chief Financial Officer said, "The combination of Playtech's strong balance sheet and the high cash generation from its operations have enabled the Company to carry out this efficient refinancing, in spite of challenging debt market conditions. We are pleased to have achieved this result, and to have made the significant interest savings that otherwise could have been incurred."
?14.??Greentube acquires US game development studio Present Creative
Greentube, an iGaming and entertainment company, has reinforced its business in North America with the acquisition of the Present Creative development studio. The new addition boosts Greentube’s presence in the region as the company seeks US expansion.
The United States has cemented itself as one of the fastest-growing markets. As a result, Greentube prioritizes its growth in the region and greatly boosted its local offering over the last year. The acquisition of Present Creative will further boost the company’s foothold in the region, helping it become one of the local powerhouses.
The agreement will arm Greentube with a local team that is very experienced in game design and sales. The acquisition will also be beneficial for Present Creative as it will now have Greentube’s backing and will be able to roll out content at a faster pace.
Greentube has operated in the US for over a year now. The producer joined the local market in September 2021 and is currently live in New Jersey and in Michigan. In addition, Greentube now holds a license to operate in Ontario, Canada, which further reinforces the company’s NA footprint.
?15.??Tabcorp makes A$33m strategic investment in social sports betting platform Dabble
ASX-listed operator Tabcorp has agreed to make a A$33m strategic investment in the “fast growing, socialised digital wagering platform” Dabble Sports.
Tabcorp said Dabble, which was founded in 2020, is one of the fastest growing wagering brands in Australia, boasting more than 150,000 customers and generating some A$47m in annualised revenue (based on average monthly revenue during Q2 2022).
It added that the business offers an innovative, socialised betting experience, providing access to a new customer market as a younger audience currently represents more than 80% of Dabble’s customer base.
Dabble’s product allows punters to follow each other’s betting activity, as well as that of verified tipsters and sports stars, while offering the option to copy others’ bets, chat with friends and comment on their activity.
Tabcorp has agreed to invest A$33m for a 20% equity interest in the business on a fully diluted basis, giving the business a total valuation of around A$165m.
Under the agreement, Tabcorp will also have the right to appoint a director to Dabble’s board.
The investment is subject to customary conditions including approval from the Northern Territory Racing Commission, while the appointment of a new director will be subject to probity approval.
#Legal & Regulation:
16.??UKCG Gambling Act white paper back on track for publication in next few weeks
The Gambling Act white paper is back on track to be published in the coming weeks, despite earlier concerns the document could be pushed back to next year or shelved entirely.
The white paper has now been anticipated for more than a year, following an initial consultation almost two years ago, which formed the first part of the wider Gambling Act review. However, it has been subject to numerous delays, many of which have been connected to personnel changes both in government and at the Gambling Commission.
The document appeared to be ready for publication in July, but its status was suddenly thrown into doubt by a string of government resignations, including that of the minister responsible for the review, Chris Philp. Soon after Philp stepped down, prime minister Boris Johnson announced he would also leave, which meant the document was pushed back until the new prime minister, Liz Truss, took charge.
With Truss in Downing Street, however, questions arose about the future of the document. An article in The Guardian claimed that a number of regulatory policies were set to be axed by the Truss government, and said it was “rumoured” that the Gambling Act Review would be among those. Analyst Dan Waugh warned that in the event this occurred, reforms be put in place by the Gambling Commission unilaterally.
?17.??Dutch minister: Advertising restrictions delayed; no cross-operator deposit limits
Minister for Legal Protection, Franc Weerwind told the Permanent Committee for Justice and Security of the Dutch Lower House that the proposed ban on untargeted gambling advertising, originally scheduled to be introduced on January 1, 2023, would be delayed until February or March.?
On October 6, the Permanent Committee for Justice and Security convened to discuss the implementation of the proposed ban on all untargeted (broadcast, print, outdoor) gambling advertising, as well as the introduction of stricter deposit limits, with the responsible minister, Franc Weerwind.
During the debate, it became quickly clear that the efforts of political groups SP and CU have succeeded in convincing a significant majority of the Lower House to support significant additional restrictions on licensed online operators. Only the VVD group, the Lower House's largest individual faction, currently appears to be willing to offer some support to the gambling sector.?
While there is significant desire among MPs to impose additional restrictions on the gambling industry, this is not matched by actual knowledge of market conditions or even the current regulatory and legislative framework. At one point, a participant in the debate called on the Minister to introduce additional restrictions that would directly (and obviously) violate existing primary legislation.
18.??PokerStars VR among first games to launch on Meta’s Quest Pro mixed reality headset
Flutter Entertainment-owned PokerStars VR is set to be a launch title for Facebook owner Meta’s Quest Pro mixed reality headset, which is expected to launch on 25 October.
The firm’s free-to-play virtual and mixed-reality social casino game will be one of a select few game titles chosen to launch alongside the flagship device, which was revealed by Meta yesterday (11 October).
The Quest Pro, which comes with an eye-watering $1,499 price tag (compared to existing headset the Quest 2 which starts at $399), brings the added benefit of mixed reality capability, allowing digital content to be overlaid on the real world.
Meta chief Mark Zuckerberg has described mixed reality as “the next major step for VR”.
Flutter said Lucky VR, the developers of PokerStars VR, have been working behind the scenes to come up with new ways of taking advantage of the headset’s capabilities and integrate them into the free-to-play casino game.
PokerStars director of VR and innovation James O’Reilly: “Our goal with PokerStars VR is to push the potential of new technologies as far as we can to create a fun and authentic social casino game that really is limitless.”
PokerStars VR players using the Quest Pro will be able to choose between a fully immersive virtual reality experience, a partially immersive experience that brings objects or spaces from the physical world into the game through “passthrough windows”, and a full mixed reality experience allowing players to bring virtual game elements into their own world.
?19.??PointsBet unveils new content hub PointsBet+
PointsBet has unveiled a new content hub on its sportsbook app called PointsBet+, offering live streaming, betting event clips, and individual custom-curated feeds.
New shows from PointsBet, such as The Straight Line with Ryan Leaf, will be utilized to produce relevant content for the app about the day’s sporting events. 20-25 video-on-demand clips – news, insights, and analysis – will be created for individual markets including spread wagers, same-game parlays, and player props.
“Sports betting and content go hand-in-hand, and by delivering key information right within our app, we’re setting a new standard for the industry,” commented Liam Roecklein, SVP of Content at PointsBet USA.
“Getting insights directly from sports figures like Ryan Leaf will be a game-changer for bettors and help shape both how users wager on and consume sports. We aim to delight our customers by providing them with industry-leading live betting options like Lightning Bets along with the statistics and analysis necessary to make the best possible decisions.”
Updated daily with refreshed content tailored to individual betting types, PointsBet+ promises to deliver information for core markets, player and game props, as well as its proprietary bet type Points Betting.
“It’s exciting to be able to deliver clips from The Straight Line directly to sports fans via the PointsBet app,” added Leaf.