iGaming Wrap-Up of CW 43-44 2024
#iGaming News of the week
0.?????? EasyJet owner expands into online betting with launch of easyBet
EasyGroup, the brand behind the renowned budget airline easyJet, is now entering the sports betting industry with the launch of easyBet.net .
This new venture will operate as a peer-to-peer betting exchange in partnership with Matchbook, a platform designed to allow customers to bet directly against each other and not against the “house.”
For easyGroup, the move into betting is both a strategic expansion and a measure to protect its brand in an industry where unauthorised use of the “easy” name has been a recurring issue.
“The launch of easyBet.net will provide customers with the assurance of a legitimate member of the easy family and a trusted ‘easy’ brand and prevent any further brand infringement in this sector,” the company said.
Historically, EasyGroup has taken legal action against entities using variations of the “easy” name in sports betting without permission.
#Breaking News
1.?????? UK gambling operator share prices surge after escaping tax hike
Share prices of listed UK gambling operators rebounded today (30 October) after the industry escaped the rumoured dramatic tax hike in the Autumn Budget 2024.
Entain, evoke plc, Rank Group and Flutter Entertainment all saw their share prices return to close to their pre-11 October levels. Major UK gambling businesses saw over ￡2bn of value wiped away earlier in the month after The Guardian’s Rob Davies reported the UK Government was planning a multi-billion pound tax raid on the industry.
The change was rumoured to involve taxes doubling on “higher harm” gaming products, including a Remote Gambling Duty (RGD) of 50%, which would be one of the highest rates in Europe.
However, Chancellor of the Exchequer Rachel Reeves did not ultimately opt to pull this lever, announcing no new gambling taxes in Parliament.
Commenting on the budget, Richard Moffat, chief executive of sports betting affiliate OLBG, said: “We were initially worried about the rise in remote gaming duty rumours, as operators would likely have swallowed these costs by rolling out worse products, worse pricing and fewer offers for gambling consumers.
2.?????? M&A: changing the game for US affiliation
News of Sportradar’s acquisition of? XLMedia’s North American gaming assets has set the industry abuzz this week, and it’s clear to see why. For a cool $30 million, Sportradar will add well-known brands – such as Sports Betting Dime, Saturday Down South and Crossing Broad – to its roster, providing a significant platform from which to build a presence in the affiliate sector.
But the impact of the acquisition extends far beyond the immediate transaction. In fact, it could disrupt the landscape as we know it. This acquisition is likely to embolden other non-affiliate brands to dip their toes into the space, pushing boundaries and reshaping what it means to be an affiliate in the digital age.
For the affiliates themselves, the clock is ticking to embrace this revolution or be swept aside by it. With Sportradar entering the field, the US affiliate game has just gotten a lot more interesting.
3.?????? Glitnor Group to acquire OneCasino in major European expansion
Glitnor Group has signed a Share Purchase Agreement (SPA) to acquire OneCasino, a European iGaming operator with an established presence in regulated markets including the Netherlands, Spain and Denmark, as well as a pending licence for entry into Germany.
This acquisition positions Glitnor to operate in over eight regulated jurisdictions across Europe, and is anticipated to create operational and technological synergies supporting further revenue growth and profitability.
Its in-house game studio, integrated within the proprietary iGaming platform, is expected to bolster Glitnor’s offerings with additional customisable features. On a proforma basis, the combined revenue for Glitnor and OneCasino is projected to surpass €150m ($162m) in 2024.
4.?????? DraftKings to shutter NJ live dealer studio, lay off 101 staff
DraftKings announced plans to lay off 101 employees in New Jersey, attributed to the company’s decision to shut down its live dealer studio in Atlantic City. It is yet unknown whether this downsizing will affect the company’s gambling harm prevention team, as New Jersey officials recently raised significant concerns regarding rising addiction rates in the state.
DraftKings announced the strategic decision in a New Jersey WARN Act notice, mandating a 60-day advance notice for employees affected by mass layoffs. This downsizing appears connected to DraftKings’ shutdown of its Atlantic City live dealer studio, as reported by Next.io , who received the information from inside sources familiar with the matter.
The studio opened in 2019 at the Hard Rock Casino in partnership with Evolution and has been a key part of DraftKings’ iGaming services, operating 24/7 with exclusive branded tables for online players. Despite the live casino sector’s substantial success, the operator is reportedly scaling back its live dealer team amid operational shifts and growing concerns about the effects of online betting.
5.?????? Ireland’s new Gambling Regulatory Authority set to launch in phases by mid-2025
The recently signed Gambling Regulation Act overhauls the licensing regime and establishes the new regulatory body.
Key points:
- New Gambling Regulatory Authority in Ireland to launch in a phased approach in 2025
- Regulator will oversee betting businesses, including implementing licensing requirements
- Authority to establish a national self-exclusion register for problem gamblers
Ireland's new Gambling Regulatory Authority is expected to start overseeing the country's betting businesses by mid-2025, industry figures predict.
The Gambling Regulation Act, recently signed into law by President Micheal D Higgins, overhauls the licensing regime and establishes the new regulatory body.
Several key milestones must be reached before the authority can begin operations.
6.?????? Aristocrat issued first UAE supplier licence
Aristocrat has become the first international gaming technology company to receive a license from the United Arab Emirates' General Commercial Gaming Regulatory Authority (GCGRA), the Australian slot machines manufacturer announced on Monday.
The license, categorized under "Gaming Related Vendor," allows Aristocrat to supply land-based electronic gaming machines (EGMs) and online gaming solutions to licensed commercial operators in the UAE. This marks a significant milestone in the UAE’s ongoing efforts to develop a regulated commercial gaming sector as part of broader economic diversification plans.
Established in September last year, the GCGRA serves as the federal executive body responsible for overseeing and regulating the UAE's commercial gaming sector. In July, the authority issued its first national lottery license, initiating a move to include gaming as an entertainment offering within the country's economy.
7.?????? Caesars closes $500M sale of World Series of Poker brand to GGPoker
Caesars Entertainment has finalised the sale of its intellectual property rights for the World Series of Poker (WSOP) brand to NSUS Group, the parent company of GGPoker.
The transaction has been closed for the previously reported $500m price tag, which equates to $250m in cash and a $250m promissory note due five years after the transaction’s closing secured by the WSOP intellectual property assets being sold.
While Caesars has sold WSOP to NSUS, the operator will continue its relationship with the poker brand for several more years, both in a land-based and online manner.
Through the deal, Caesars’ Las Vegas casinos will retain the right to host the flagship WSOP live tournament series for the next 20 years. The live event has been hosted in the Horseshoe and Paris casinos since it moved from the Rio in 2022.
#US / Canada
8.?????? Sands CEO “still interested” in NYC casino bid, but concerned
Las Vegas Sands chairman and CEO Rob Goldstein is raising concerns about the company’s $6 billion casino-resort proposal for New York’s Long Island. The potential introduction of legal online casino play in the state is emerging as a factor that may impact the company’s long-term investments in traditional brick-and-mortar casinos.
Speaking during Sands’ third-quarter earnings call on Wednesday (23 October), Goldstein expressed reservations about committing to such a capital-intensive project when New York could potentially pass igaming legislation by 2026.
领英推荐
Goldstein noted that New York’s decision-making process regarding brick-and-mortar casino licences has been delayed, which adds even more uncertainty. However, the concerns don’t mean Sands is ready to give up on New York.
“We remain interested in the process,” Goldstein said.
9.?????? Texas Sports Betting Likely Long Shot in 2025
As a majority of states have legalized sports betting, eyes are turning to major markets like Texas that have eluded US sportsbooks.
Texas legislators made a push in 2023 when the House passed a package of bills legalizing Texas sports betting. However, with Lt. Gov. Dan Patrick, a vocal opponent of gambling, at the helm of the Senate, the bill stalled.
Texas legislators only meet during odd years. Earlier this year, Dallas Stars President Brad Alberts told LSR the odds of sports betting passing were “50-50 at best.”
“I think it’s in the same spot it was. The same challenges exist, which is a resistant Senate, led by the lieutenant governor,” Alberts said. “And I don’t think that that has changed. Obviously, those same personalities are still in office.
10.?? Caesars Entertainment reports $9m net loss for Q3 2024 as revenues decline 2.6%
Caesars Entertainment has announced the company’s financial results from the third quarter of 2024 as well as the closing of its deal with NSUS Group to sell its World Series of Poker brand for $500m. In Q3 2024, Caesars’ net revenue decreased 2.6% year-over-year, reported to be just under $2.9bn.
“During the third quarter, we delivered another quarter of $1bn of same-store consolidated Adjusted EBITDA. Results in Las Vegas reflect record third quarter hotel, F&B and banquet revenues driven by strong occupancy and cash ADRs,” Caesars CEO Tom Reeg said.
“Regional segment operating results were negatively impacted by new competition, construction disruption and difficult comparisons versus the prior year. Caesars Digital set a new all-time quarterly record for Adjusted EBITDA driven by over 40% growth in net revenues.”
11.?? Seminole Tribe of Florida reaches deal over online sports betting
Calling it a “win-win,” Seminole Tribe of Florida leaders announced Monday they had reached an agreement with pari-mutuel companies that will end litigation over a 2021 deal that gave the tribe statewide control over online sports betting.
The agreement announced Monday includes the Seminole Tribe; West Flagler Associates; Bonita-Fort Myers Corp.; Southwest Florida Enterprises, Inc.; and the pari-mutuels’ owner, Isadore Havenick, according to a news release.
Also as part of the deal, jai alai provided by Battle Court Jai Alai, LLC, which is affiliated with West Flagler, will be offered on the Seminoles’ betting app in early 2025.
Jim Allen, CEO of Seminole Gaming, called the deal “a win-win agreement” for the tribe and the companies.
“Rather than engaging in years of additional litigation, this agreement will allow the parties to work together to promote jai alai, which has played an important role in Florida’s gaming landscape for nearly 100 years,” Allen said.
12.?? Nevada casinos report $1.3 billion September win, baccarat volatility impacts Las Vegas Strip
Nevada casinos posted a $1.3 billion win for the month of September, with downtown Las Vegas reporting its second-highest total ever.
The Las Vegas Strip accounted for more than half of the state’s gaming win, taking in $727.7 million from gamblers, while locals casinos brought in $155.9 million, according to figures released Tuesday by the Nevada Gaming Control Board.
The win total for Strip casinos was 1.8% lower than September 2023, before the opening of Fontainebleau Las Vegas and the closing of the Tropicana. Also missing: The Mirage, which is closed as it rebrands under its new owner, Hard Rock.
13.?? Ontario online total gambling handle continue growth in Q2, but sports betting dropped
Digital sports betting handle and online casino revenue grew again in Ontario, according to iGaming Ontario, which reported second-quarter results on Thursday (24 October).
Gamblers in Ontario wagered CA$18.7 billion ($13.5 billion/￡10.4 billion/€12.5 billion) across all platforms, the highest amount bet during any quarter since digital sports betting and online gambling went live in April 2022. Handle in Q1 was CA$18.4 billion. Second-quarter handle for all forms of gambling was up 1.6% over the first quarter and 31.7% against the same period last year.
According to the report, handle does not include promotional deductions. iGaming Ontario does not report promotional deductions, hold or individual operator numbers. Fifty-three operators and 83 platforms were live in the province during the quarter.
#M&A & Finance
14.?? Q3 2024: Lottomatica’s Italian online market share hits record 30%
Lottomatica Group has achieved a record high in Italian online gambling market share, reaching 30%.
The announcement led the Milan Borsa-listed group’s Q3 trading update, as Lottomatica targets full-year revenues of €2BN and adjusted EBITDA between €700M and €730M.
Since May, group accounts now reflect the integration of SKS365, helping Lottomatica achieve a peak betting volume of €27.7BN, with approximately 62% (€17.1BN) generated online.
Guglielmo Angelozzi, Chief Executive Officer of Lottomatica Group, commented: “We are very pleased with the progress achieved so far this year. Our business has experienced double-digit growth, and in Q3 our online market share reached an all-time high across all verticals. The integration with SKS is advancing at a fast pace, and we upgraded the level of synergies we expect to extract.”
15.?? Caesars to sell LINQ Promenade for $275M, aims to cut debt further
Caesars Entertainment announced on Tuesday an agreement to sell the LINQ Promenade to a joint venture involving TPG Real Estate and Acadia Realty Trust’s Investment Management Platform for $275 million. The transaction, pending regulatory approvals, is expected to close in the fourth quarter of 2024.
The sale of the LINQ Promenade represents an accretive, non-core asset sale that will accelerate our debt reduction goals,” said Caesars CEO Tom Reeg. “I want to thank all the team members and tenants of the LINQ Promenade for their partnership over the last 10 years and wish them continued success.”
This sale includes only the LINQ Promenade, a popular shopping, dining, and entertainment district on the Las Vegas Strip. The adjacent LINQ and Flamingo casino-hotels, as well as the High Roller observation wheel located at the back of the Promenade, will remain under Caesars’ ownership.
#Legal & Regulation:
16.?? €675,000 fine for NetX over KSA rules breach
The Dutch gambling authority, Kansspelautoriteit (KSA), has fined NetX Betting Ltd with over half a million euros for breaching gambling regulations.
Totalling €675,000, the fine relates to the illegal offering of online gambling products without the necessary licence. NetX was previously the subject of another penalty payment relating to similar wrongdoings.
The investigation uncovered a number of websites through which the operator targeted Dutch customers, namely through the pferdwette.de and betbird.com websites. The base penalty was €600,000, with an additional charge being imposed for failure to comply with the cease order in a timely manner.
Michel Groothuizen, KSA’s Board Chairman, said: “Dutch players must be protected: that is why we are tackling illegal offers hard. We see that illegal providers often pay little attention to the player and do not comply with a duty of care.
17.?? UKGC partners MGA for safer gambling knowledge exchange
The UK Gambling Commission (UKGC) has signed a Memorandum of Understanding (MoU) with Malta’s Gaming Authority (MGA) to better regulate the gambling sector.
Through the agreement, both regulators will exchange information and intelligence to build up better consumer safeguarding measures, curb criminal behaviour, and reduce gambling harm rates.
Andrew Rhodes, UKGC CEO, said: “We welcome this agreement as a sign of our continued collaboration between the MGA and the UKGC. We’ve been working closely for some time now, and following our successful visit this summer, it is only fitting that we formalise our working relationship.
“We are keen to continue strengthening our efforts to raise standards across the industry, tackling common challenges such as illegal gambling, while also exploring future collaboration, including initiatives like shadowing and addressing key issues in areas like AML and sports betting integrity.”