iGaming Wrap-Up of CW 44-45
#Breaking News
1.??????Flutter wins FOX dispute on FanDuel’s fair price value
Flutter Entertainment has announced that it has won a New York arbitration against Rupert Murdoch’s FOX Corporation related to the ownership terms and valuation of FanDuel.
The FTSE100 gambling group has settled its 18-month legal dispute against the US media network that had initiated an arbitration on the terms of its option to acquire an 18.6% stake in FanDuel and further ownership issues.
Legal proceedings began in April 2021, as Fox questioned the value of FanDuel, following Flutter’s decision to exercise options to acquire its US asset outright, agreeing on terms to buy a remaining 37.2% stake from FastBall Holdings for $4 billion.
FOX argued that it should be allowed to exercise its right to acquire an 18.6% stake in FanDuel for the same price that Flutter paid for its stake in December 2020 – based on an $11.2bn valuation.
Further proceedings saw FOX claim that “Flutter had failed to provide commercially reasonable resources for FOX Bet”, a US joint-venture formed by FOX and The Stars Group Inc (TSG) prior to TSG merging with Paddy Power Betfair (PPB) in 2020 – a deal which led to the creation of Flutter Entertainment.
As a strategic partner, FOX was granted a ten-year exercise option (from December 2020) to acquire an 18.6% stake in FanDuel, which carried a fixed annual compound adjustment rate of 5%.
This morning, Flutter announced that “the tribunal has determined the fair market value of FanDuel as of December 2020 amounts to $20bn. This contrasts with an implied $11.2bn valuation for FanDuel when Flutter acquired the stake from Fastball.”
Subject to the 5% annual compound adjustment rate up to December 2030, Flutter can value FanDuel at $22bn, pricing FOX’s exercise option for an 18.6% stake at $4.1bn.
https://sbcnews.co.uk/featurednews/2022/11/05/flutter-fox-dispute-fanduel/
?2.??????Store owner “Mattress Mack” nets record $75m payout as Houston Astros win World Series
An American furniture store owner has claimed one of the largest payouts in betting history after winning $75m on the Houston Astros to win the World Series.
Jim McIngvale, known as “Mattress Mack”, placed a number of bets with six different sportsbooks, adding up to around $10m on the Astros victory, which earned him $75m when Houston closed out the championship with a win over the Philadelphia Phillies on Saturday (5 November).
“This last week has been especially… beyond words,” McIngvale tweeted.
He also shared a photo of himself with a suitcase full of cash.
Mattress Mack’s largest bet was a $3m wager on the Astros to win at 10-1 odds via the Caesars Sportsbook mobile app, which paid out $30m.
Ken Fuchs, head of sports for Caesars, said: “What can we say? We just wrote the biggest check in sports betting history to Mattress Mack for $30 million,” he said in a statement. “Would we do it all again? You bet.”
Fuchs also said Caesars would continue taking McIngvale’s bets, including on next year’s World Series, if he desires.
McIngvale’s other winning wagers reportedly included a $1m stake to win $12m from WynnBET, $2m to win $10.6m from Penn Entertainment’s Barstool Sportsbook and $2m to win $10m at the BetMGM book at Bellagio.
The businessman staked a further $1m to win a combined $6.3m from both Betfred and Kindred-owned Unibet.
https://igamingnext.com/news/record-bet-on-houston-astros-world-series/
?3.??????Flutter doubles US revenues as Q3 sees home unit return to growth
Flutter Entertainment Plc has upgraded its full-year 2022 US revenue guidance to stand at $2.95bn-$3.2bn (￡2.45bn–￡2.65bn) as its FanDuel continues to outperform corporate expectations.
Publishing its Q3 trading statement, Flutter achieved corporate revenues of ￡1.89bn up 31% on 2021 comparative results of ￡1.43bn – as the FTSE100 gambling group accounts for +9.5m active monthly players (AMPs) across its global brand portfolio.
Headline growth was attributed to a doubling in US revenues to $598m, which reflected FanDuel’s position as the “Number-1 online sportsbook with 42% of US market share”.
US trading sees FanDuel mark its dominance via a strong start to the NFL season, bolstering Flutter’s headline forecast that its US asset will achieve positive EBITDA during 2023.
Group CEO Peter Jackson commented: “Flutter delivered a strong Q3 performance with pro forma growth of 11% in both revenue and average monthly players. Our US division is now our largest and generated $700m in revenue, up 82%.
“We are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season. The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.”
Flutter noted that excluding US results, the group maintains its commercial growth at “revenues of +6%, combined with?AMPs growth of +19%”.
https://sbcnews.co.uk/featurednews/2022/11/09/flutter-q3-fanduel/
?4.??????A single winning ticket for the $2.04 billion Powerball jackpot was sold in California
A lone winning ticket for the record $2.04 billion Powerball lottery jackpot was sold in Altadena, California, lottery officials said Tuesday, making the lucky ticket holder the winner of the largest lottery prize ever.
The ticket was sold at a Joe’s Service Center, the California Lottery said on Twitter. Results posted to Powerball.com similarly said there was one winner who matched all six numbers in California – the odds of which were 1 in 292.2 million, according to the Multi-State Lottery Association.
The winning numbers, which were announced Tuesday morning after Monday night’s drawing was delayed, were 10-33-41-47-56 and the Powerball was 10, according to the association.
And while you likely weren’t the jackpot winner, lotteries are urging players to check their tickets on the chance you won one of the other – albeit smaller – prizes: Per the Multi-State Lottery Association, more than 11.2 million tickets won cash prizes totaling $98.1 million, including 22 tickets that won $1 million prizes for matching the five white numbers but not the Powerball.
https://edition.cnn.com/2022/11/08/us/powerball-lottery-record-delayed-drawing-tuesday-trnd/index.html
?5.??????California online, retail sports betting measures defeated despite record spending
California voters rejected two sports betting legalization ballot measures, leaving no legal wagering options in the nation’s most populated state for the foreseeable future.
The two failed ballot measures come despite more than $600m in spending both in support and opposition to each measure. Most of that money went to advertisements, both for and against, Proposition 27, which would have permitted statewide mobile wagering. Proposition 26, which would have permitted in-person betting at tribal casinos and certain horse tracks, was also defeated.
With a little more than one-third of the state’s precincts at least partially reporting, Proposition 27 was down, 16% – 84%, per the California Secretary of State’s office. Proposition 26 was down 29.6% – 70.4%.
California is the first of seven states to reject a constitutional amendment that would legalize sports betting on its ballot. Voters in New Jersey, Arkansas, South Dakota, Maryland, Colorado and Nebraska all approved sports betting, either as part of larger casino gaming expansions or as standalone referendums.
Multiple polls in the weeks leading up to Election Day showed both measures were headed for defeat despite the record spending. Officials from DraftKings and FanDuel, the biggest financial backers of Proposition 27, were bearish in public that their measure would pass and the companies suspended advertising with nearly a month to go before the election.
DraftKings and FanDuel each contributed more than $30m to the campaign, while the partner companies of other major sportsbooks including BetMGM, Barstool, WynnBet and the coming Fanatics sportsbook contributed at least $10m.
California tribal gaming leaders likewise predicted the online sports betting measure would be defeated. The state’s major gaming tribes pushed campaign contributions toward defeating Proposition 27 instead of supporting Proposition 26.
https://igamingnext.com/news/california-sports-betting-defeated/
?6.??????Brazil: Sao Paulo presents bill to attract betting shops with tax benefits
The mayor of the city of S?o Paulo, Ricardo Nunes, advanced his idea of turning the city into an investment center for the installation of gambling companies.
On October 31, Nunes presented PL 613/2022, which contemplates the application of a minimum tax rate of 2% to companies in the lottery, bingo, and betting sector. The proposal was announced to the market in the recent edition of SBC Summit Latin America, in the state of Florida, as well as in a meeting with Entain authorities in September.
Nunes analyzed the growth of the local sports betting market and considered it a fantastic opportunity to attract investment and generate employment. With this project, S?o Paulo intends to be the first city in the country to offer advantages to local companies and, above all, to large international groups in the sector that plan to expand in Brazil, especially when the market is regulated.
In his explanation, Nunes explained that 'in this scenario, although the proposed amendments represent an option for the collection of the tax at a lower rate, they actually seek to establish a tax burden capable of providing the retention or attraction of highly mobile taxpayers to the municipality, the generation of jobs and the development of the local economy, either by the promotion of the economic activities involved or by the maintenance and attraction of companies in adequate operating conditions in the Municipality of S?o Paulo'.
https://www.yogonet.com/international/news/2022/11/09/64964-brazil-sao-paulo-presents-bill-to-attract-betting-shops-with-tax-benefits
?7.??????AGA reveals consecutive record quarter for US gambling, with revenue hitting $15bn
The results come courtesy of the American Gaming Association (AGA), which said 2022 is set to be the biggest year in history for US gambling, as it is currently tracking 14.7% up on the first nine months of last year.
AGA President and CEO Bill Miller commented on the fiscal results, saying: “While business challenges remain, high consumer demand continues to fuel our industry’s record success. Our sustained momentum in the face of broader economic volatility points to gaming’s overall health today and provides confidence as we look to the future.”
Furthermore, the AGA pointed out that sports betting had set a new quarterly revenue record of $1.68bn – representing a rise of 80% annually.
This comes as no surprise, as more and more US states are legalising sports betting. In the last nine months, several US states have launched sports betting, including Kansas – while Ohio has set a 1 January 2023 date for the launch of sports gambling, with Maryland also launching in Q4 2022.
Furthermore, Massachusetts finally legalised the activity, and it is set to launch at some point in 2023.
https://www.gamblinginsider.com/news/19055/aga-reveals-consecutive-record-quarter-for-us-gambling-with-revenue-hitting-15bn
?#US / Canada
8.??????WynnBet continues to cut losses as Wynn gears up for Massachusetts sports betting launch
Wynn reported continued balance sheet improvements for its online gaming division during the company’s Q3 earnings call Wednesday ahead of a highly-anticipated launch in Massachusetts.
Wynn announced nearly ($18m) in adjusted EBITDA losses from its Wynn Interactive digital gaming division the third quarter of 2022, an improvement from ($70m) in losses from Q3 2021. The company has lost ($104m) on its online properties through the first nine months of 2022, compared to ($188m) during that same time frame in 2021.
WynnBet posted similar overall online sports betting and casino handle figures in Q3 2022 and Q3 2021 despite a roughly 90% decrease in marketing and an 80% decrease in cash burn year-over-year, Wynn CEO Craig Billings said during his company’s earnings call.
In Massachusetts, the company is set for its most consequential sports betting launch since the company announced a dramatic shift in its digital gaming strategy roughly a year ago. Wynn has spent several billion dollars on its Encore Boston Harbor property, located just outside Boston city limits and has hoped to translate that to success for its digital gaming platform in the state.
Wynn officials have said for months they see Massachusetts as a key market for the sportsbook, which has been a relatively minor player in the overall digital gaming landscape. The WynnBet retail sportsbook at Encore Boston Harbor could open as early as January, several months before online platforms begin.
https://igamingnext.com/news/wynnbet-continues-cutting-losses/
?9.??????MGM Resorts Bullish On BetMGM Profitability In 2023
MGM Resorts echoed its BetMGM joint venture partner, Entain, that profitability should come at some point in 2023.
CEO Bill Hornbuckle was not ready to say on MGM’s third-quarter earnings call Wednesday if BetMGM‘s profitability could come sooner than next year’s third quarter as expected because of the likely failure of Prop 27 in California:
“I don’t want to get ahead of ourselves. We continue to invest in the business. We want to see it grow. We like the positioning we have, both from iGaming in particular and ultimately in sports betting. And so it will take some investments.”
“Point on California is well-taken. But we’re not going to get ahead of ourselves right now.”
MGM’s stock dropped 5.9% from Wednesday’s close to open at $33.05 Thursday.
No questions about BetMGM post profitability
One of the questions hanging over MGM’s call but not asked is about what could happen to BetMGM once it is profitable.
Entain said on its recent trading update that spinning off BetMGM to its own public entity or paying out special dividends are options. MGM had also shown interest in acquiring Entain as well.
领英推荐
Caesars CEO Tom Reeg was up-front about why spinning off a digital segment might not be the best idea:
“I’d say that our competitive advantage here is tying it to the existing brick-and-mortar business and our Caesars Rewards database. And it would be my preference that that remains 100% owned by the parent company.”
#M &A & Finance
10.??GiG targets further expansion after record revenue in Q3
Richard Brown, CEO of Gaming Innovation Group, has vowed to keep “building on from where we stand today” after Q3 witnessed “several areas of the business achieve new monthly records”.
Revenue through the three month period increased 35 per cent year-on-year to a record €22.9m (2021: €16.9m), which it is hoped will set “a good pace for the coming quarters”.
Gross profit through the second quarter increased 26.27 per cent €25.97m (2021: €20.56m), with adjusted EBITDA up 47 per cent to €8.5m (2021: €5.8m) and profit for the period reaching €579,000 from a loss of €27,000 one year earlier.
Elsewhere, marketing expenses tracked a 73 per cent uptick through the quarter to €4.6m (2021: €2.7m), driven by GiG Media scaling up marketing across both publishing and paid.
GiG also elaborated on a “meaningful step forward” regarding Sportnco’s post acquisition plans, with the technical integration of the sportsbook product finalised and attention turning “to the next phases of the integration”.
“We delivered strong financial performance in the third quarter, and importantly we achieved some key milestones as we saw our media business continue to rapidly expand and scale its player intake,” said Brown.
On a division basis, GiG’s online casino and sports betting affiliate arm saw revenue increase 35 per cent to €15.1m (2021: €11.2m) to bring up a seventh successive quarter of growth.
https://casinobeats.com/2022/11/09/gig-record-results-improvement/
?11.??Accel Entertainment generates $267m in revenue for Q3 2022
The supplier has also made a net income of $22.4m for Q3, an increase of 108% compared to Q3 2021.?
Furthermore, Accel has posted adjusted EBITDA of $41.1m for Q3 2022, a 9% increase year-on-year.?
The supplier was able to repurchase $22.5m of Class A-1 common stocks for the quarter while increasing the number of gaming terminals it provides by 68%.?
However, Accel saw its debt increase 109% year-on-year, owing largely to borrowings of $160m as part of its credit facility in Q2 2022 to finance the acquisition of Century.?
Q3 2022 also saw Accel acquire the amusement assets of Nevada-based operator VVS for $9.5m, as well as the assets of River City Amusement Company for $2.8m.?
Accel CEO Andy Rubenstein said: “We're pleased with another strong quarter and remain focused on executing our growth strategy.?
“Our solid performance despite the current inflationary pressures further demonstrates the strength and resilience of our locally focused business model.?
“We expanded our footprint in Nebraska and continue to evaluate multiple opportunities across the country while returning capital to our shareholders."
Accel primarily operates in Illinois, Nevada and Montana – and Illinois remains its most lucrative market in 2022, where $200.9m of its Q3 revenue was generated.
https://www.gamblinginsider.com/news/19038/accel-entertainment-generates-267m-in-revenue-for-q3-2022
?12.??Super Group reiterates €1bn 2022 revenue projections
Expecting to significantly expand its US presence in the new year, Super Group continues to project strong revenue growth to close the year.
Issuing an update to its NYSE investors, the Malta-based reiterated its predictions 2022, maintaining that it will achieve revenue of between €1.15bn and €1.28bn and Adjusted EBITDA of between €200m and €215m, respectively.
In an assessment of its Q3 developments, the group’s Betway sports betting brand entered negotiations with Apricot, a sportsbook provider for ‘a number of jurisdictions’ where the operator maintained a presence outside of Africa.SBC News Super Group reiterates €1bn 2022 revenue projections
There is potential for an agreement that would materially increase Betway’s dedicated development resources, including spending and investment growth ‘for the next several quarters’, focused particularly on software development.
A portion of said funding will be a loan to Apricot of no more than €43m to cover ‘the substantial resources dedicated to Betway’ – whilst another element of the negotiations could see Super Group secure full ownership of Betway through an option to purchase a copy of Apricot’s underlying technology.
“These discussions are in their early stages and Super Group cannot give any assurance on reaching binding terms,” the group asserted.
Meanwhile, in North America, both Betway and Spin – the latter being Super Group’s igaming brand – were able to successfully launch in the Canadian province of Ontario in H2 2022, in line with the firm’s expectations.
https://sbcnews.co.uk/sportsbook/2022/11/07/super-group-e1bn-revenue/
?13.??IGT posts $1.1B revenue in Q3, driven by global gaming and digital segments growth
IGT announced Wednesday its financial results for the third quarter of the year, showing an increase in revenue by 7.7% to 1.06 billion. However, chief financial officer Max Chiara stated during a conference on Tuesday that the supplier would continue to work on reducing its leverage in case of “bad times” ahead.
Adjusted EBITDA for the period was $402 million, reflecting robust Global Lottery profitability and a strong increase from Global Gaming, according to the firm. The company’s lottery division made up a narrow majority of revenue at $623 million, but was also down by 4% in a year-over-year comparison. Meanwhile, revenue from lottery product sales was up to $39 million.
The brand's Global Gaming division saw a revenue increase of 30.9% to $379 million, making up for the decreases in the lottery division. For this segment, $184 million came from services, up 7.2%; and $195 million from product sales, up 66.5%.
Digital and betting revenue was up by 27.2% to $54 million, which coincided with the closed acquisition of game aggregator iSoftBet. All in all, services brought in $826 million of IGT’s revenue while product sales revenue was up to $234 million.?
https://www.yogonet.com/international//news/2022/11/09/64968-igt-posts--11b-revenue-in-q3--driven-by-global-gaming-and-digital-segments-growth
#Legal & Regulation:
14.??Gambling Commission suspends football prediction app for failure to integrate GAMSTOP
The UK Gambling Commission (UKGC) has suspended an online operator for failing to integrate the GAMSTOP self-exclusion scheme.
From 3 November, Lebom Limited, trading as lebom.app, has been suspended from operating until the regulator is satisfied that GAMSTOP has been successfully integrated.
Lebom is a weekly football predictor game that combines group chats with social betting.
Using the app, a group of friends can predict the results of Premier League matches and put money into the pot, effectively placing a wager against each other. Whoever scores the most points at the end of the round of fixtures wins the money from the pot.
The app is rated 4.8 out of 5 on the App Store from 44 user ratings. The customer-facing desktop website currently displays the GAMSTOP logo at the bottom of the page.
The UKGC has also commenced a review of Lebom’s operating licence.
UKGC executive director Kay Roberts: “It is simply unacceptable for any online operator to fail to integrate with the [GAMSTOP] scheme.”
GAMSTOP is used by at-risk gamblers who wish to block themselves from all UK-licensed gambling apps and websites to prevent further harm.
Integration with the software has been a mandatory licensing condition since 2020.
https://igamingnext.com/news/gambling-commission-suspends-licence/
?15.??Brentford and England footballer Ivan Toney assisting FA amid betting allegations
The Brentford forward Ivan Toney has said he is “assisting the Football Association with their enquiries” after it was reported in national newspapers that he is being investigated over allegations of historical match betting.
The FA has declined to comment on the reports, but Toney tweeted a statement on Saturday evening. “I’m aware of a story about me in a national newspaper today,” he said. “I have been assisting the FA with their enquiries and will not be making any comment until such investigation has reached its conclusion.”
Toney, who is hopeful of being named in Gareth Southgate’s England squad for the 2022 World Cup on Thursday, added: “I am a proud Englishman and it has always been my childhood dream to play for my country at a World Cup finals.”
Brentford have also issued a brief statement on their official website to acknowledge they were aware of the claims. “We note the story concerning Ivan Toney and the FA investigation. The club will not be commenting,” the statement said.
https://www.theguardian.com/football/2022/nov/06/ivan-toney-fa-assisting-enquiries-brentford-england
?16.??Crown handed mammoth AU$120m fine by regulator
The fine is a record amount for an operator in Australia, which comes amid a casino scandal in the country, where regional gambling regulators have been accused of not doing enough to punish casinos for regulatory failures.
However, now it appears that Crown is feeling the wrath of such pressures, with the Victorian Gambling and Casino Control Commission deciding to hand out a hefty fine for the poor conduct of the resort casino.
AU$100m of the fine is comprised due to a failure to stop people gambling for more than 24 hours at a time, while the additional AU$20m is because the casino didn’t prevent customers from using plastic picks to simulate automatic play.
The record sum comes after an investigation into Crown by the Royal Commission, with the commission’s Chairwoman, Fran Thorn, saying: “These were not isolated breaches. They were part of a pattern of extensive, sustained and systemic failures by Crown that spanned roughly 12 years.
“The stories of financial loss or suicide attempts or forced sex work and other hardships experienced by individuals, their families, and communities; the people who gambled for two to three days straight with no one stopping them; the people who stole to keep gambling and the people who lost their families because of their addiction.”
#Tech :
17.??TikTok shows Sportsbet adverts in Australia-only trial
Sportsbet will be able to advertise to its Australian customers as part of a new agreement with TikTok, according to ABC News.
The outlet reported that the social media platform is planning a ‘strictly controlled advertising pilot’ with Flutter Entertainment brand Sportsbet, which will only be seen by Australian consumers in a trial-run.
TikTok stated that Sportsbet’s advertising will only be seen by users over the age of 21, but the move contradicts the platform’s previous statements and advertising standards regarding betting promotion.
“A closed pilot for sports betting is currently in operation for one managed client who has obtained permission from TikTok via an application process,” the firm’s advertising policy read in ABC News.
Additionally, the company outlined that users will have access to an opt-out feature that will block any ads from Sportsbet, and that the number of times the ads can be shown will also be capped.?
However, TikTok has stated in the past that advertising promoting fantasy sports, bingo and gambling-related content or featuring gambling branding or sponsored by a gambling firm are prohibited.
There is nothing illegal about the plan under Australian law, as the federal government does not have regulation in place for social media advertising, only marketing on TV, radio and online streaming.
However, TikTok’s decision does come at a time when gambling and gambling marketing/advertising are increasingly falling under the public spotlight in Australia.
https://sbcnews.co.uk/marketing/2022/11/07/tiktok-sportsbet-australia-ads/