iGaming Wrap-Up of CW 42-43 2024
#iGaming News of the week
0.?????? France looks to legalise online casino in 2025
France is moving closer to legalizing online casinos, with Prime Minister Michel Barnier’s government introducing a proposal as part of the country’s 2025 budget plan. The move is aimed at addressing the growing illegal gambling market and boosting government revenue through taxation.
If approved, the new regulation would see online gaming operations taxed at 55.6% of their turnover.
The proposal is also seen as a response to the expansion of illegal gambling in France. According to estimates from the National Gambling Authority (ANJ), illegal online gambling is currently valued between €748 million ($806.28 million) and €1.5 billion ($1.62 billion). Legalizing and regulating online casinos could help curb this activity while providing an estimated €1 billion ($1.08 billion) in tax revenue to the state.
France’s current regulations are among the strictest in Europe, banning all online casino games like blackjack and roulette, although sports betting and poker are allowed. With the rise of illegal gambling platforms, the government is facing pressure to create a legal framework for online casinos. Support for the proposal has come from several online operators, including Betclic, Winamax, and Unibet, who are eager to expand their presence in the regulated market.
#Breaking News
1.?????? Las Vegas Sands reports 4.3% Q3 2024 revenue decline; net income falls 21.4%
Las Vegas Sands announced its Q3 2024 financial results, reporting a 4.3% year-on-year decline in net revenue to $2.68bn.
The company's net income for Q3 2024 dropped by 21.4% to $353m. Consolidated adjusted property EBITDA stood at $991m, reflecting an 11.5% decrease.
Performance across its major properties showed mixed results. Macao recorded an adjusted property EBITDA of $585m, slightly impacted by a $2m reduction, while in Singapore, Marina Bay Sands posted an adjusted property EBITDA of $406m, with a more significant $78m decline attributed to low hold on rolling play.
Robert Goldstein, Las Vegas Sands Chairman and CEO, said: “Although our reported financial results for the quarter reflected lower than expected hold in Singapore and the impact of disruption from our ongoing development work at the Londoner in Macao, we continued to execute our strategic objectives during the quarter.”
2.?????? Star fined A$15m, licence suspended after second Bell Report
The NSW Independent Casino Commission (NICC) will fine Star Entertainment Group A$15m (€9.24m) for the failings raised in the second Bell Report.
The troubled Australian casino chain will retain its licence, despite again being found to be unsuitable in the state parliament’s second investigation into its regulatory failings. For now, however, the licence will remain suspended pending the completion of transformation actions, with the NICC set to reassess Star’s suitability by 31 March 2025.
The company said in an ASX release: “The Group will continue to engage constructively with the NICC in respect of The Star Sydney and its operations while its licence remains suspended including regarding the directions above and the proposed amendments to The Star’s Sydney’s licence conditions.”
3.?????? Catena Media cuts jobs, expects revenue to drop at least 30% in Q3
The affiliate company now expects its Q3 revenue to fall between €10.5m (￡8.73m/$11.3m) to €11m, down from the forecasted €15.9m target. While total adjusted EBITDA is now expected to be in the range of €1m to €1.5m, reduced from a €3.2m aim, with a corresponding margin of 10 to 14%.
Catena will also streamline its content production and content marketing teams as part of a transition to a “leaner, product-led organisation”. The affiliate aims to also help move finances to a smaller core of flagship products and diversify revenue streams.
The cost-saving programme will generate a net annual saving of approximately €2.2m and will be in effect from 1 November.
On the lower Q3 estimates and the impairment charge, Stan acknowledged that the company’s balance sheet reflects its current reality.
“In sports betting, we have been operating at a loss for an extended period,” he said. “We have responded to market challenges by shifting resources away from loss-making products and into those that we believe have the best potential to generate long-term value.
4.?????? Former Cura?ao master licence holder Cyberluck declared bankrupt
Cyberluck NV., one of the four historic Cura?ao gaming master licence holders, was declared bankrupt in court on Friday (18 October).
The business was previously one of four master licence holders which contracted licensing to the sub-licensees, who in turn offered online gambling services to customers from the offshore hub.
The bankruptcy followed several court decisions which found Cyberluck liable for money owed by its licensees.
5.?????? XLMedia to end business as Sportradar buys US media assets for $30m
After selling off its European assets earlier this year, XLMedia is fully getting out of the affiliate business, selling its remaining North American domains to Sportradar in a deal that could be worth up to $30 million.
The sites include Crossing Broad, SportsBettingDime, EliteSportsNY and SaturdayDownSouth.
In a notice of the proposed divestment of the North American assets, the board conceded that the “value of its individual businesses was not being fully reflected in its share price.” Accordingly, the group concluded the right path forward was to sell.
“While it was confident that the US market would provide long-term success for a larger organization, the Board believes XLMedia’s current scale on a standalone basis could impact its ability to compete in the evolving US market. In addition, the Board is also mindful that following the Europe disposal, the continuing business of the North America business may be considered too small to remain listed,” the notice read.
6.?????? Q3 2024: Georgia strike and Asian cyberattacks hit Evolution
Evolution reported total operating revenue for Q3 2024 of €579m, up 27.9% year-on-year. Net revenue increased by 14.7% to €519.4m, with €446.9m coming from its live casino segment, which grew 15.8% year-on-year.
Evolution’s EBITDA jumped 30.3% to €415.3m, resulting in a margin of 71.7%.
Still, profit for the quarter rose to €328.6m, compared to €272.8m the previous year, while earnings per share increased to €1.57, up from €1.28.
CEO Martin Carlesund acknowledged the impact of two external factors that had a “negative impact” on the quarter: a labour strike in Georgia and increased cyberattacks in Asia.
“We expect margins to remain around the same level for the final quarter of the year and therefore we expect to complete the year slightly below our expectation from the beginning of 2024, of full year EBITDA margin in the 69-71 percent range,” he added.
7.?????? Kindred's share of revenue from high-risk players up to 3.2%
The operator has reported these statistics since February 2021, which it has called a key part of its work with “fostering a factual and transparent dialogue, paving the way for a more sustainable industry.”
In the third quarter, there was an increase in the share of gross winnings revenue from high-risk players with the percentage reaching 3.2%, up from Q2 2024 when it was set at 3%. This was slightly better than last year, though, when the percentage in Q3 2023 was 3.3%.
Kindred Group Head of Responsible Gambling Esther Scheepers said: "The general awareness and knowledge around gambling disorder is increasing rapidly, as is the sophistication of technological support tools. By combining our own knowledge with new and improved technology, we can enhance detection capabilities further. We are currently upgrading our detection system with a new improved system, which will enable us to integrate more robust compliance features and optimise our overall approach to safer gambling.?
https://www.gamblinginsider.com/news/27181/kindreds-share-of-revenue-from-high-risk-players-up-to-32
#US / Canada
8.?????? Rally planned in favour of New York’s Hudson Yards casino project
On 21 October the head of New York’s building and construction trades union announced a rally in support of the plan by developer Related Companies and Wynn Resorts for a $12bn (￡9.3bn/€10.9bn) casino, office and housing complex at Hudson Yards.
Gary LaBarbera blasted the group’s efforts to derail the project in a letter published by the New York Post. LaBarbera, president of the Building and Construction Trades Council of Greater New York, wrote a letter to his union affiliates.
In that letter, LeBarbera wrote,“We appreciate the experience of the High Line. However, we cannot let the fact that a new building may create new shadows prevent our city from moving forward. We live in a vertical city. We must continue to build. We must continue creating opportunities for our city’s residents, including residents of this community, to earn a middle-class lifestyle. We must raise our voices and be heard.
9.?????? DraftKings and Fanatics VIP chief near settlement after bitter dispute
DraftKings and the former executive who left to lead Fanatics’ VIP team are close to a settlement after a bitter non-compete dispute.
According to court documents filed in Massachusetts District Court, DraftKings and Fanatics Betting & Gaming president of VIP, Michael Hermalyn, are negotiating a potential resolution to their lawsuit.
The judge, who ruled it likely he misappropriated DraftKings trade secrets, barred the executive from working with Fanatics for the 12-month maximum period permitted under Massachusetts law.
The possible settlement led to both parties requesting a 30-day stay on further proceedings in the lawsuit, pending negotiations.
领英推荐
10.?? Ohio online casino bill faces uphill battle ahead of lame-duck session
A new bill aimed at legalizing online casino games in Ohio, introduced by Senator Niraj Antani, is on the brink of legislative debate but faces significant hurdles as lawmakers gear up for a critical lame-duck session following the November elections.
Antani's Senate Bill 312, which was introduced in September, proposes a 15% tax rate on online gaming, 5% lower than the current 20% tax on online sports betting in the state. The bill also outlines the fee structure for operators, including a $100,000 application fee, a $300,000 licensing fee, and a $250,000 contribution to a problem gambling fund, bringing the total annual costs to over $500,000 for each operator.
With Antani in his final term and unable to sponsor the bill in 2025, lawmakers could address the bill during the upcoming lame-duck session, which will commence on November 13. .
11.?? Michigan falls just short of online betting and igaming records in September
Michigan narrowly missed out on new online sports betting and igaming revenue records in September, with the month proving to be the second-best in the Wolverine State’s history.
Figures from the Michigan Gaming Control Board (MGCB) show combined online betting and igaming revenue in September hit $261.0m (￡200.2m/€240.4m). Reported as ‘gross receipts’, this is 24.1% higher than last year and 16.5% ahead of August.
Adjusted gross receipts, which account for promotional spending in Michigan, was $209.9m. This beat last year’s total by 24.6% and was also 2.5% more than August.
12.?? New Jersey smashes igaming revenue record again in September
The New Jersey Division of Gaming Enforcement has released the state’s gaming revenue figures for the month of September, showcasing a new record high for iGaming. For the first time in the state’s history, internet gaming win surpassed $200m for a total of $208.1m, a 27.1% increase from the prior year period, while total iGaming revenue in 2024 was reported to be $1.73bn.
While there are six other states that are permitted to operate online casinos, only Michigan has ever exceeded the $200m revenue amount with its $215.5m performance in March of 2024.
Casino win in New Jersey did show a decrease, however, as the Division of Gaming Enforcement reported a revenue of $230.6m from the sector, 6.5% less than what was reported in the prior year period. Year-to-date revenue saw a smaller decrease from what had been reported at this time in 2023, only dropping 0.9% to $2.15bn.
Sports wagering revenue also saw an increase for September revenue, reporting $119.6m in gross revenue and a 7.6% increase from September 2023. Reported by casinos, racetracks and partners of the respective properties, year-to-date sports wagering gross revenue was $835.4m, a 17.8% increase from the prior period.
#M&A & Finance
13.?? Catena books €40m impairment on under performing sports assets
Catena Media Plc has booked a non-cash impairment charge of €40m ahead of publishing its Q3 trading results on 7 November 2024.
The impairment charge is recognised as Catena has authorised a writedown of “specific sports betting assets” as part of the media group’s transition to a new operating model.
As disclosed in H1 trading, Catena modified its remaining US media network, taking the “strategic decision to focus product development efforts on a cluster of core brands.”
The transition comes as Catena observes an “underperformance in sports betting,” impacting the firm’s book value. H2 trading saw Catena register year-to-date losses of €5m attached to its US sports betting unit, impacted by higher operating costs and Google algorithm changes.
14.?? Atlas World Sports acquires daily fantasy sports platform Lockspread
Sports betting app Atlas World Sports has acquired daily fantasy sports (DFS) platform Lockspread.
Atlas World Sports will integrate Lockspread’s DFS platform into its existing software.
Kevin Koeppel will oversee the launch of the new fantasy division and integration, set for early 2025. Koeppel has previous experience founding a daily fantasy sports platform at No House Advantage, which transitioned to Betr in 2023 under the leadership of Jake Paul.
“This is an exciting opportunity to create a premier destination for both season-long and daily fantasy sports, driving value for users across all aspects of the platform, from sports betting and news to fantasy contests and expert insights,” Koeppel said.
#Legal & Regulation:
15.?? KSA hits Winbet with weekly penalty for unlicensed gambling
The Netherlands Gaming Authority (KSA) has issued a penalty payment order against Winbet NV for offering unlicensed games of chance.
The regulator found that Winbet operated illegal gambling services through four websites, namely galaxyspins.com , winnercasino1.bet , superb1.bet , and doctorspins.com . In the Netherlands, offering games of chance without the required licence is strictly prohibited.
Winbet’s violation of this rule led to a penalty of €280,000 per week, with a maximum fine of €840,000.
If Winbet fails to cease its illegal activities, the penalty will continue to accumulate until the maximum amount is reached.
16.?? UKGC begins new evidence-led methodology against illegal threats
The UK Gambling Commission (UKGC) has set out its approach to combat unlicensed gambling threats, viewed as a source of crime impacting society.
The mandate is led by Chief Executive Andrew Rhodes as the Commission upholds its “corporate strategy to increase investment, resources, and capacity to tackle illegal gambling”.
Cooperation with wider authorities, technology partners, and international regulators has seen the UKGC impose over 750 cease-and-desist notices. Over 78,000 URLs have been referred to Google and Microsoft, with 50,000 removed and 255 websites taken down.
17.?? Bulgaria strikes down over 50 illegal operators
Roumen Spetsov, Director General of Bulgaria’s National Revenue Agency (NRA), has expanded the country’s online gambling blacklist with 52 more operators.
After an exhaustive investigation by the national gambling regulator, its specialised branch – the Electronic Audit of Systems of Gambling Operators (EASGO) – concluded that the websites in question were targeting Bulgarian users without having an active licence under the gambling law.
Upon visiting the websites, some of which were bearing domains from Armenia (.am) and Kazakhstan (.kz), customers were met with advertising banners and accompanying text inviting users to participate in the illegal games by creating a player profile and then opening an account for deposits and withdrawals – all of which made easily accessible.
18.?? Online gambling in Finland: regulated market could launch earlier than expected
Finland’s gambling legislation will be sent to the European Commission by the end of this year.
The planned opening of a competitive regulated online gambling market in Finland had been put back from 2026 to 2027, but it appears that an earlier launch may be a possibility again. A cross-party steering committee was reviewing the proposed legislation this week with an eye to submitting it to the European Commission (EC) for review next month.
If that goes ahead as expected, the government would be submitting the proposed legislation to the EC three months earlier than planned. It could feasibly receive approval from the EC by the middle of next year.
#Tech:
19.?? Los Angeles Rams launch Next Gen Stats-powered, in-stadium highlights through new collaboration with Genius Sports
The Los Angeles Rams (“Rams”) have collaborated with Genius Sports Limited to provide their fans with augmented, data-driven in-game highlights within SoFi Stadium.
During every Rams home game, immersive highlights leveraging the NFL’s proprietary Next Gen Stats (“NGS”) data will be displayed on SoFi Stadium’s iconic Infinity Screen. These highlights, powered by GeniusIQ, Genius Sports’ next generation data and artificial intelligence platform will include crucial NGS insights such as player locators and speeds, time for the quarterback to throw and a complete minimap.
“Connecting our partners and sports fans with the excitement of live sports through memorable experiences is intrinsic to our GeniusIQ offering,” said Steve Bornstein, President, North America of Genius Sports. “Our partnership with the Los Angeles Rams breaks new ground in sports fan engagement, combining immersive highlights and rich tracking insights for brands like Verizon. We’re delighted to showcase the enhanced value of Genius Sports with the NFL and the Rams.”
20.?? Sportradar: Innovating the NBA experience
Sportradar has announced an expansion of its NBA partnership, introducing new technology tools aimed at enhancing how basketball fans experience and interact with the game.
The Switzerland-based sports technology company has unveiled four main products that utilise artificial intelligence and the NBA’s official data, including detailed player movement tracking.
Sportradar EVP Eric Conrad said: “Sportradar is committed to deepening our longstanding partnership with the NBA, while also supporting betting operators and media companies in capitalising on the immense global popularity of the league.
“Sportradar’s proprietary technology, underpinned by the application of powerful AI to deep data, continues to reimagine how fans interact with the NBA. We are excited by what the future holds, driven by our constant innovation.”