iGaming Wrap-Up of CW 42-43
#iGaming News of the week
0.?????? Addabbo plans another legislative NY online casino push
The new year is not too far off, which means a new push for gambling legislation is on the horizon.
For online casino legislation, 2023 was a relatively quiet year, with only Rhode Island choosing to regulate it in a very limited capacity.
That is not deterring New York State Sen. Joseph Addabbo. A frequent champion of gambling legislation, Addabbo confirmed with Sports Betting Dime he will be once again pushing for online casino expansion in the state. In addition, the bill would also allow for online lottery sales in the state.
As he tells the publication, Addabbo plans to pre-file the bill before the end of the year. However, as he explained, it is really Gov. Kathy Hochul who will make or break the bill’s chances.
“We know we need revenue in New York. Here we are, we’re on the cusp of an iGaming and iLottery bill, and all I need is the Governor in her budget to merely say seven words or so. ‘We’ll look and explore the possibilities of iGaming and iLottery.’ No other details,” he said.
Earlier this year, operators were also in Albany to potentially persuade lawmakers to revisit the 51% tax rate on sports betting. During that hearing, operators made the push for online casino legislation as well but the bill never gained traction.
#Breaking News
1.?????? Founder teases return of Hero Gaming after trio of acquisitions
Hero Gaming has completed its restructuring and acquired three companies that should more than double the operator’s revenue, according to founder and CEO George Westin.
In a LinkedIn post, Westin announced that “great things are happening” and that “Hero Gaming is back”. He also shared what appears to be a new logo for the company.
In August, NEXT.io reported exclusively that Hero Gaming experienced a fresh round of staff cutbacks, which included the departure of former CEO Sarah Stellini.
Significantly, nearly the entire leadership team at Hero Gaming chose to leave the organisation in connection with an impending merger with another company.
At the time, Westin revealed he had returned to the CEO role at Hero Gaming, taking operational charge for the first time since 2015.
2.?????? René Jansen to end KSA chairmanship in 2024
Kansspelautoriteit (KSA) has confirmed that René Jansen will not stand for reappointment as Chairman of the Netherlands gambling authority.
This afternoon, KSA informed that Jansen, who’s tenure expires on 1 October 2024, “has chosen not to stand for reappointment because he will reach retirement age at the end of 2023.”
KSA has alerted Franc Weerwind, Minister for Legal Protection, of Jansen’s decision, in which he intends to end his chairmanship on 1 July 2024.
Jansen explained: “In recent years I have committed myself to the Ksa’s mission of safe play with great energy and pleasure. There are many great challenges for the new chairman.”
As Chairman, Jansen oversaw the launch of the KOA marketplace in 2021, regulating Dutch online gambling.
3.?????? Q3 2023: Svenska Spel hails online growth as land-based revenues dwindle
Sweden’s Svenska Spel has seen revenue and earnings stall as market-wide pressures take their toll on its retail gambling businesses.
In a trading update for the three months to 30 September 2023, Svenska Spel said Q3 revenue was up 1% year-on-year to SEK1.97bn ($177m/€167m/￡145m). That stagnation was in line with the Swedish market, which stopped growing in H1 for the first time since mid-2020.
Net gaming revenue for Tur, Svenska Spel’s lottery division and largest business area, was up 2% year-on-year to SEK1.2bn. This growth was driven by the success of its Eurojackpot game.
The biggest percentage rise was seen in Sport & Casino, which was up 4% year-on-year to SEK510m. The growth was driven by a continued increase in active customers, a successful launch of new poker games and online casino growth.
However, the Casino Cosmopol and Vegas business areas saw net gaming revenue decrease by 11% to SEK247m. Svenska Spel said the main commercial challenge for the casino and slots brands is increased competition from online games and restaurant casinos. It has responded by adapting business practices, including new opening times at Casino Cosmopol properties from the start of October.
4.?????? Kindred Group’s share of revenue from harmful gambling hits 3.3%
Kindred Group plc (Kindred) share of revenue from harmful gambling for the third quarter of 2023 was 3.3%. In the past quarter, automated interventions have been rolled out continuously and enhanced features in the safer gambling toolkit have been implemented to provide a more comprehensive responsible gambling journey across Kindred’s brands. The data for 2023 indicates that while the trend is consistent, more needs to be done. While Kindred continues to work actively to achieve a safer gambling experience for all customers, it also recognises that further steps need to be taken to establish a long-term sustainable industry across all markets. A positive trend is seen across detected customers improving their gambling behaviour after an intervention. This quarter, 86.7% of detected customers improved their behaviour after interventions.
“Our commitment to progress continues as we roll out further PS-EDS (Player Safety Early Detection System) automated interventions; this has enabled us to increase the volume of cases handled and improve the speed at which we can provide interventions. The short, customer-friendly messages provide tailored insight into the customer’s gambling activity, promoting awareness and encouraging using our Responsible Gambling tools,” the company said.
Sara Lennartsson, Sustainability Partner at Kindred Group, said: “As a Sustainability Partner I work with tasks that are related to us being a sustainable and responsible operator. That includes outbound contacts regarding responsible gambling, compliance and GDPR.”
5.?????? Q3 2023: Betsson scores another record quarter as revenue climbs 19%
Betsson reported revenue of €237.6m (￡207.4m/$250.6m) during Q3, the third consecutive quarter of record revenue for the operator, while net profit also increased year-on-year.
Revenue was marginally ahead of the previous record of €236.8m set by Betsson in Q2. It was also 18.6% higher than the €200.3m posted in Q3 of last year.
Betsson reported growth across both its sports betting and casino businesses, but it was the latter that drove year-on-year growth. Casino revenue reached a record €172.1m in Q3 and turnover €8.29m, just short of the all-time high of €8.36bn in Q2.
Reflecting on the quarter, CEO and president Pontus Lindwall hailed casino as the main driver of growth. However, he also spoke of success within the sports betting business, referring to the recent acquisition of BetFirst Group. Betsson purchased Belgium-based BetFirst in June, with Q3 being the first full quarter that it was part of the Betsson business.
6.?????? Q3 2023: Evolution revenue exceeds €450m despite foreign currency headwinds
Evolution generated revenue of €452.6m in Q3 2023, an increase of 19.6% year-on-year, according to its latest interim report.
Of the total revenue, the live casino segment accounted for the majority at €385.8m, up 24.3%. Evolution said it is currently seeing “a higher demand for our product than what we currently can deliver,” and will therefore focus on continuing to expand its footprint to meet demand.
In the RNG segment, however, revenue fell by 1.9% year-on-year to €66.8m, despite the business saying Q3 “was a quarter when we made progress in our RNG operations.”
By region, Evolution’s largest market was Europe, which generated €175.1m in revenue, up 10% year-on-year. Asia generated €172.1m, meanwhile, amid growth of 34.7%. Growth in North America was modest, at 9%, as the region generated €54.7m in revenue. In Latam, meanwhile, revenue was up 38.7% to €34.4m. Other markets generated just €16.3m, a slight 1.2% reduction compared to Q3 2022.
Overall, 40% of Evolution’s Q3 revenue came from regulated markets. That figure is consistent with the previous three quarters but one percentage point lower than in Q3 2022.
7.?????? Boyd reports $903M in revenue during Q3
Boyd Gaming has announced its financial results for the third quarter ending September 30 2023.
The operator reported Q3 revenue of $903.2m, up from $877.3m in the same period in 2022.
The company's net income for the third quarter of 2023 was $135.2m, or $1.34 per share, compared to $157.0m, or $1.46 per share, for the third quarter of 2022.
Keith Smith, President and CEO of Boyd Gaming, commented on the results. He noted: "Our third-quarter results reflect the value of our diversified business model. Continued strength in play from our core customers, strong results from Sky River and online gaming and growth in our non-gaming business all contributed to a solid performance in the quarter."
The third quarter also saw Boyd Gaming's expansion initiatives yielding positive outcomes. The recent expansion project at the Fremont property resulted in record quarterly results. Boyd Gaming's online segment benefited from strong results from FanDuel’s operations and the addition of Boyd Interactive, which the company acquired in November 2022.
#US / Canada
8.?????? Tough 2022 drives Smarkets to hit brakes on US expansion
Smarkets faced a challenging financial climate in 2022, the firm’s CEO, Jason Trost, acknowledged in its fiscal accounts for the year, which saw a drop in revenue and gross profit.
The company – active in the UK, Ireland, Sweden, Malta and the US via its flagship Smarkets exchange and SBK sportsbook – reported a 10% decline in revenue from ￡20m in 2021, to ￡18m in 2022 in its statement to Companies House.
This drove a 29% drop in gross profit from ￡12.7m to ￡9m, although the group’s loss before taxation rose only marginally from ￡17m to ￡17.7m. These difficulties were despite a 7% increase in active monthly customer numbers from 45,439 to 48,670 over the year.
Trost remarked: “The changing economic climate, characterised by inflation and increased living costs, impacted both our customer base and our operations. Despite these ups and downs, I take pride in the company’s resilience and ability to adapt in the new world.”
9.?????? Supreme Court Denies Florida Sports Betting Stay, With A Twist
The US Supreme Court on Wednesday denied a West Flagler Associates request for a stay of mandate in the ongoing Florida sports betting case, while adding interesting commentary looking toward potential future filings.
While West Flagler can still file a cert petition with the Supreme Court and has until Dec. 11 to do so, a legal expert told LSR the decision was a bad omen for its chances moving forward.
领英推荐
The Seminole Tribe of Florida could turn back on legal Florida sports betting via the Hard Rock Bet app at anytime, though its immediate plans are unclear.
A spokesman for the tribe told LSR in a statement:
“The denial of the stay by the U.S. Supreme Court is very good news.? The Seminole Tribe of Florida is heartened by this decision.”
10.?? Mississippi starts the conversation about legalizing online betting
Mississippi was one of the first states to legalize retail sports betting but it is taking its time and weighing its options when it comes to expanding to allow for online wagering within the state.
Part of that process included the formation of the Mississippi Mobile Sports Betting Task Force. The group of 13 consists of lawmakers, appointees, and Mississippi Gaming Commission Director Jay McDaniel.
Some casino owners worried about retail betting cannibalization
On Tuesday, the group heard testimony from a range of witnesses both in favor of and opposing sports betting expansion in the state. Members of the task force also offered a plurality of opinions. DraftKings Director of Legal and Government Affairs Kevin Cochran offered context on how DraftKings and other operators have worked in other markets, while Riverwalk Casino-Hotel General Manager Cathy Beeding expressed concerns about online betting’s potential cannibalization of retail revenues.
11.?? Kentucky announces $250m has been wagered since sports betting launch
Andy Beshear, Governor of Kentucky, has announced that almost $250m has been wagered in Kentucky since sports betting went live in the state last month.
Retail sports wagering went live with physical sportsbooks on 7 September, which brought in $15.7m of the total amount.
With a delayed launch, mobile and online sports betting went live on 28 September, with over $232.3m wagered through mobile devices since then and 500,000 accounts created.
Beshear said: “Kentucky is approaching $250 million wagered.
“That is a strong number that certainly reflects excitement for the opening of sports wagering.
12.?? Michigan sports betting market returns to growth upon NFL kick-off
After a summer slump, Michigan’s sports betting market returned to growth as bettors enjoyed the first few weeks of the 2023/24 NFL season.
Data from the Michigan Gaming Control Board revealed that sportsbooks in the Great Lake State made $44m in revenue from trading last month, marking an increase of nearly 100% from August’s tally of $23.2m. However, this does represent a 7.9% decrease year-over-year.
The regulator’s data showed that sportsbooks handled $457.7m in September, more than double the amount that was bet in August, fueled by NFL bets. Handle also grew a significant 35.6% on an annual basis showing the growing appetite for betting in the state which launched its market around three years ago.
13.?? New York mobile sports wagering generates 16% higher GGR in September
The New York Gaming Commission has released its September 2023 financial report, outlining statewide results in the commercial casino, mobile sports wagering and video gaming sectors, respectively.
From this time last year, the total GGR for commercial casinos was down $2.1m, from $61.7m in September 2022 to $59.6m in September 2023.
Reflecting on the four commercial casinos reported on by the NY Gaming Commission, this is an overall decrease of 3%, presenting a small but notable overall decrease that is not reflected in the other sectors reported on.
Mobile sports wagering’s GGR in September 2023 was $165.6m, reflecting a 16% increase from last year's report. At this time last year, the GGR for mobile sports wagering was $143.3m. Notable contributors to this figure included FanDuel, whose GGR was at $76.9m in September 2023 compared to $65.7m in September 2022, and DraftKings, whose September 2023 GGR was $61.4m, compared to $44.9m this time last year.
#M&A & Finance
14.?? Okto acquires Flexia Payments
Payments solutions provider OKTO has announced the acquisition of Flexia Payments, a specialty fintech US company. OKTO says that the strategic move is set to accelerate its expansion into the North American gaming markets, and further its cashless and omnichannel payments offering.
The deal followed a successful show of Flexia at the Global Gaming Expo (G2E), where the company showcased its cashless system, which is integrated with an expanding suite of partners including WinSystems, Axes Information Management Systems, and CasinoTrac.
“With the completion of this acquisition, the Flexia team joins forces with OKTO, to jointly keep driving cashless and omnichannel payment solutions to North American casinos and gaming venues, enabling them to usher full digitalization of customer experience across gaming and non-gaming activities,” OKTO said in a statement.?
15.?? New 888 CEO doubles down on shareholding with purchase of 1.1 million shares
Newly appointed CEO of 888 Holdings Per Widerstr?m has more than doubled his previous shareholding in the operator via the purchase of a further 1.1 million shares.
Added to his existing stake in the business, the purchase brings Widerstr?m’s total shareholding to 2,066,535 ordinary shares in 888 Holdings.
His latest purchase saw the new CEO snap up just over a million shares at an average price of 84.3p – consisting of 125,539 shares bought at 81.3p each and a further million shares bought at 84.6p.
That prive gave the transaction a total value of around ￡949,000. At an average purchase price of 84.3p per share, Widerstr?m’s total shareholding is now valued at over ￡1.7m.
Elsewhere 888 chair Jon Mendelsohn, who led the business through an interim period between former CEO Itai Pazner’s resignation and Widerstr?m’s appointment, also increased his shareholding late last week.
Mendelsohn bought an additional 50,000 shares in the business at 79.5p each, bringing his total shareholding to 250,000 ordinary shares.
16.?? Light & Wonder closes 100% SciPlay acquisition
Light & Wonder now owns 100% of shares in SciPlay after closing a deal to purchase the previously outstanding shares still traded publicly.
The firm noted that the remaining 17% shares are in its control after agreeing a deal with SciPlay shareholders, in a move that will see the gaming technology developer become a wholly owned subsidiary of Light & Wonder and removed from the NASDAQ Exchange.
Under the terms of the deal sheet, Light & Wonder paid $22.50 per share in cash for the remaining 17% of SciPlay shares, meaning the full deal is worth around $500m.
“Fully integrating SciPlay with Light & Wonder creates a more streamlined organization with the financial strength to accelerate our cross-platform strategy and deliver enhanced shareholder returns,” said Matt Wilson, President and Chief Executive Officer of Light & Wonder.
#Legal & Regulation:
17.?? Colombian regulators propose new rules about ads, responsible gambling
The national gambling regulator Coljuegos has provided more details on its plans to regulate gambling advertising in Colombia. It has issued a resolution that would give it responsibility for overseeing all gambling advertising, marketing, sponsorships and “any other form of commercial communication”.
The resolution, which will come into force if a Coljuegos-sponsored bill is approved by Congress, outlines advertising content guidelines, caps on spending and penalties for non-compliance. The resolution would require operators to introduce mechanisms to detect customers showing signs of gambling harm in order to avoid sending communications to these players. It also proposes new payment rules, which would only allow deposits to be accepted using pre-paid credit cards.
Regarding advertising guidelines, operators would be prohibited from including “false or misleading” depictions that promote gambling as being free or without risk. They would not be allowed to include testimonies from people who describe having benefited from gambling.
18.?? MGM Springfield reaches $6.8m settlement over wages and tip violations
More than 2,000 workers impacted by wage and hour violations at MGM Springfield will be compensated for the casino’s wrongdoings that included failing to pay overtime, among others, according to the state Attorney General’s Office.
AG Andrea Campbell announced Wednesday that her office has reached a $6.8 million settlement with MGM Springfield in the form of restitution and penalties for wage and hour violations.
Investigators found, following a multi-year investigation, MGM Springfield failed to pay minimum wage to tipped employees, pay overtime wages, make timely payments of wages and provide paid earned sick time.
Casino management is also at fault for unlawful tip retention, officials say.
“We take our compliance obligations seriously and have made proactive updates since 2019 to address this issue,” Dara Cohen, director of regional corporate communications for MGM Resorts International, said in an email to the Herald. “We will continue to invest in training and regular reviews of our policies and procedures to ensure ongoing compliance.”
https://www.bostonherald.com/2023/10/25/mgm-springfield-hit-with-6-8m-wage-tip-violation-settlement/
19.?? Norway to introduce DNS blocking for unlicensed gambling
The government of Norway has proposed new legislation to introduce DNS blocking against unlicensed gambling sites. The move would require internet providers to implement technical measures to prevent access to named websites using the domain name system (DNS). Players would be redirected to a landing page that explains why the website has been blocked.
The move involves an amendment to the Gambling Act. It was recommended by the Ministry of Culture and Equality and was approved by cabinet on Friday.
Lubna Jaffery, minister for culture and equality, said: “We do this primarily to prevent and limit gambling problems and to look after vulnerable players and their relatives. If foreign gambling companies had followed Norwegian law, this would not have been imposed on the internet providers. We have to regulate this by targeting actors over whom we have jurisdiction.”
Retired County Attorney, Managing Attorney, In-House Counsel; seasoned litigator, appellate & transactional attorney. Large, medium, small entities.
1 年Good information. Thanks!