iGaming Wrap-Up of CW 45-46
#iGaming News of the week
0.?????? Penn Entertainment's rebranded ESPN Bet app launches across 17 states
ESPN Bet, the new online sportsbook operated by Penn Entertainment, has officially launched in 17 states in the United States. The sportsbook, accessible on the ESPN Bet app and website, now allows players in various states, including Arizona, New Jersey, Pennsylvania, Massachusetts, Illinois, and Ohio, to engage in sports wagering.
This launch follows Penn’s $1.5 billion partnership with Disney-owned ESPN, a collaboration aimed at solidifying Penn's position in the rapidly growing online sports betting market. The partnership entails Penn operating ESPN Bet, while ESPN leverages its online and broadcast platforms to promote the app.
Jay Snowden, CEO of Penn Entertainment, expressed enthusiasm about the potential impact of this partnership during Penn’s Q3 results announcement. At the time, he stated: "This strategic alliance is expected to further expand our digital ecosystem and drive re-engagement with the millions of customers in our digital and retail databases, leading to compelling cross-sell opportunities."
#Breaking News
1.?????? New York becomes first US state to surpass handle of $2bn in monthly mobile sports wagering
New York’s mobile sports betting handle was $2bn in October, up 17.6 per cent compared to September. The figure makes New York the first US market to see $2bn in bets in one month.
According to the New York Gaming Commission, revenue reached $166.3m, beating the previous record set in September ($165.6m). The state collected $84.8m from the 51 per cent tax rate.
FanDuel and DraftKings took 77 per cent of all wagers placed in the Empire State. FanDuel took $891.9m and revenue of $83.1m, while DraftKings’ handle fell by 8.1 per cent month-on-month to $652.3m and revenue dropped 3.5 per cent to $59.3m. Caesars had a handle of $193.2m, its best since March.
2.?????? Sands NYC casino project in jeopardy after state Supreme Court ruling
A New York state Supreme Court ruling could create major problems for the proposed Nassau Coliseum casino project from Las Vegas Sands.
Back in April Hofstra University sued the Nassau County Planning Commission claiming the group failed to properly adhere to public meeting laws before voting to enter into a 99-year lease with Sands for the land adjacent to Nassau Coliseum. Per Hofstra’s complaint, the commission did not properly notice meetings where the potential lease transfer was discussed.
Last week, New York Judge Sarika Kapoor ruled in Hofstra’s favor, annulling the lease.
However, an appellate court has issued an emergency stay of Kapoor’s decision. That stay will last until next week, when the court will hold an appeal hearing on the case.
“For far too long, the Coliseum site known as The Hub has been languishing in a twilight zone of inaction,” said Nassau County Executive Bruce Blakeman. “We are grateful that the Appellate Division granted a stay of the lower court’s decision, and we’re confident the lower court’s ruling will be overturned. I will continue to stand for the proposal by the Sands to develop a world-class luxury hotel, spa, entertainment center, and casino which will bring $5 billion in construction, good paying permanent jobs and tax relief for our residents.”
3.?????? German Gambling Study Finds 1.3m Suffering from addiction
Titled “Glücksspielatlas Deutschland 2023” (The Gambling Atlas of Germany 2023), the study was conducted by the Institute for Interdisciplinary Addiction and Drug Research in Hamburg, in partnership with the University of Bremen’s Gambling Research Department and the German Centre for Addiction Issues in Hamm.
Analyzing data from 2021, the study found that 30% of German adults engage in gambling. While that figure is significantly down from the 55% recorded in 2007, gambling addiction remains a serious problem in the country, with 7.7% (1.3 million) of residents experiencing financial, social, or health issues because of it. A further 3.3 million exhibit signs of addiction, the report states.
According to the study, young men aged 21 to 35 are at a higher risk of experiencing gambling-related problems, along with individuals suffering from mental disorders and those with alcohol issues. Migrants are also considered among the most vulnerable to gambling addiction, as many of them view gambling as a way to cope with trauma and solve financial problems.
https://www.legitgambling.com/news/german-gambling-study-finds-1-3-million-suffering-from-addiction/
4.?????? Paysafe Q3: Revenue up 8% year-on-year
Paysafe has published its financial and business results for the third quarter of 2023. The company posted overall revenue of $396.4m for the quarter.
Revenue in Q3 rose 8% year-over-year. Total payment volume during the third quarter also grew by 8% to reach $35.1bn. Paysafe reported a net loss attributed to the company of $2.5m, the equivalent of $0.04 per diluted share when compared to nearly $1m in net income the year before.
However, adjusted net income during the quarter total rose by more than $5m year-over-year and reached $35.3m, or $0.57 per diluted share.
In Q3, adjusted EBITDA rose by 22% when compared to figures from one year ago to $116.1m.
5.?????? Wynn Resorts reports 178% increase in Macau operating revenue
Macau casino operator Wynn Macau Ltd reported third-quarter total operating revenues of US$819.8 million, up 6.5 percent from the preceding quarter. Judged in year-on-year terms, such revenue increased 609.2 percent, according to a Thursday filing to the Hong Kong Stock Exchange.
Wynn Macau Ltd recorded adjusted earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) of just below US$255.0 million, up 3.6 percent from the second quarter. The latest quarterly result compared with a negative figure of US$65.6 million a year ago.
The firm said operating profit for the three months to September 30 stood at US$127.7 million, a 4.7 percent increase quarter-on-quarter. The figure compared with an operating loss of US$161.3 million a year earlier.
6.?????? Aristocrat hails strategic investments as revenue rises 13% to AU$6.3bn in 2023
Aristocrat has published its year-end report and financial results for 2023, with revenue increasing year-over-year by 13% to $4.1bn.
This increase was chiefly owed to the growth of Aristocrat's gaming outright sales, as well as the continued expansion of its Class III Premium Gaming Operations footprint. EBITDA continued its growth since the Covid-19 pandemic, as demonstrated in the graph, posting a year-over-year increase to $1.37bn for the financial year 2023.?
There was year-over-year growth in NPATA (net profit after tax) as well, increasing to $863.9m, representing an increase of 21%. It was also mentioned in the report, that AUS$443m (US$288.48m) in surplus cash was returned to shareholders in the form of on-market share buy-backs over the 12 months to 30 September 2023.
7.?????? Over half of UK gamblers view betting funds differently to money in their bank accounts, new research reveals
Over half of UK gamblers view the money in their accounts with betting websites as different to the money in their bank account, new research from BetMGM can reveal.
To mark Safer Gambling Week in the UK, BetMGM surveyed UK residents who have placed a bet or gambled within the last 12 months, with 51% of them saying they see money in gambling accounts differently to their personal funds. Despite the money holding the same value no matter where it is held, the research highlights that there is an innate awareness of its true value.
Further highlighting this and the need for greater education and awareness around gambling, 19% admitted they usually or always chase their gambling losses, while 14% do not view their winnings as ‘real money’.
However, there is a positive trend among younger players, with those aged between 18-34 more likely (92%) to put a monetary restriction on their betting to ensure their safety.
#US / Canada
8.?????? ESPN BET: media firm lays down law to employees ahead of launch
ESPN has banned reporters and team insiders from placing bets on the new ESPN BET platform as it seeks to uphold the integrity of its editorial output.
The company sent out communications to staff ahead of the launch of ESPN BET tomorrow in which it placed several restrictions to ensure the integrity of both the sportsbook and its journalism.
ESPN has told staff that they may not use any non-public information they have obtained via their work, such as injuries or team news, to place bets. Staff also cannot bet on any games that they are assigned to report on or cover and this extends to journalists and production staff.
The guidelines also aim to prevent conflicts of interests, banning employees from “engaging in any betting-related activities that could call into question their or the company’s integrity” such as employees who have relationships with sports leagues and properties being banned from placing bets.
9.?????? LiveScore’s Sam Sadi predicts Fanatics will reign supreme over ESPN BET
LiveScore Group CEO Sam Sadi has outlined his belief that Fanatics Sportsbook has a bigger chance of winning in the US sports betting market compared to its fellow challenger brand ESPN BET.
Speaking at a fireside chat at a recent XtremePush event in London, Sadi explained that the Fanatics Sportsbook team has a more varied experience in the business and this, alongside Penn Entertainment’s legacy problems with the Barstool Sportsbook brand, will help it to come out on top.
ESPN BET is set to launch in 17 states on November 14 while Fanatics Sportsbook has been rolling out its product in stages throughout 2023. Buoyed by the acquisition of Pointsbet US, Fanatics is live in 14 states, though in several states in which the switchover is yet to be completed, is branded PointsBet, A Fanatics Experience.
“Fanatics has the better chance of winning,” said Sadi, in a fireside chat with Xtremepush CEO Tommy Kearns at London’s Southbank Centre. “ESPN Bet probably won’t, unless they realise the full difficulties they face with Barstool, they understand what’s missing, they’re patient and they invest a lot in technology.
10.?? North Carolina sports betting won’t be launching on Jan 8
When legislators in North Carolina legalized sports betting earlier this year, they wrote the law to allow for wagers to be placed in time for the college football national championship on Jan. 8, 2024. But regulators said Tuesday the new program won’t be online by then.
North Carolina sports betting operations won’t begin as soon as hoped. While the law allows betting to begin as early as Jan. 8, 2024, regulators say they won’t be ready by then.
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It is unclear when legal wagering will be available in the Tar Heel State. But it could come as late as June 15.
The North Carolina Lottery Commission is tasked with establishing new regulations for sports betting. Regulators on Tuesday told the commission’s sports betting committee that they won’t be able to hit the January 8 launch date, according to press reports.
11.?? Maine sports betting opening weekend garners $3.4m in bets
DraftKings took $3.4m in bets on the opening weekend of sports betting action in Maine last weekend as the newest US market kicked into action.
Per the Maine Gambling Control Unit, bettors in Maine spent $3.9m in bets on the opening weekend, with the vast bulk of that being on DraftKings compared to a small amount on Caesars Sportsbook.
From Friday, November 3 to Sunday, November 5, bettors engaged with NFL content and bet almost $4m, with around $2.98m paid out in winnings. DraftKings paid out around $2.57m in winnings while Caesars reported $405k paid out in winnings from around $528k in bets.
Combined, DraftKings and Caesars paid around $94k in taxes for their trading on the opening weekend.
12.?? DraftKings responsible for 57% of MA sportsbook revenue in October
DraftKings set new monthly records for sports betting handle and revenue in Massachusetts during October, while the Bay State’s overall market also grew month-on-month.
Players in Massachusetts spent a total of $571.8m (￡461.5m/€527.6m) betting on sports in October, up 11.6% from $512.2m in September. It is also the second-highest monthly total since the state launched legal betting in March, just short of the $579.3m bet in April.
Online sports betting spend in October reached $555.7m, with retail wagers at $16.0m.
Breaking down the market by operator, DraftKings remains the clear leader in the online segment. DraftKings’ revenue was $33.5m from $304.8m in wagers, both of which are monthly records in Massachusetts for a single operator.
13.?? Colorado sportsbooks enjoy return of NFL with over $500m handle
Colorado’s sportsbooks have reported a significant increase in betting activity as the beginning of the NFL and college football season propelled handle to above $500m during September.
Per the Colorado Division of Gaming Enforcement, bettors wagered $512.8m during September, up 13.9% year-over-year and up nearly 68% on August’s figure of $306.1m.
It marks the second time this year that Colorado sportsbooks have taken over $500m in bets after the record handle detailed in January. The overwhelming majority of the bets were placed online, as $507.9m was wagered on online and mobile sportsbooks, with just $4.9m wagered via retail channels.
The return of football drove the large increase in betting activity, as NFL bets accounted for 30.7% of wagers in Colorado in September. Meanwhile, college football made up 13.6% of bets.
#M&A & Finance
14.?? Rivalry announces $14m investment
Rivalry, a Canadian media and sports betting company, has received an investment of CA$14m from an existing shareholder. The company, which offers casino, sports and esports online wagering has a target audience of Gen Z and Millennials, calling itself a platform ‘for the next generation of fans.’
he investment is the first part of a non-brokered private placement offering of convertible debentures. These debentures will be offered and sold to investors in Canada, and will generate interest from the date of issue that will be payable in cash quarterly.?
The proceeds of the sale of these debentures will go on to fund the company and will ‘be used to fund general working capital and corporate purposes,’ indicating that these sales in tandem with the investment will provide fuel for company growth.?
On the investment, Co-Founder and CEO of Rivalry Steven Salz said: “We are very pleased to receive the support of a long-standing institutional shareholder of Rivalry with this investment.
15.?? Q3 2023: Genius Sports more than doubles adjusted EBITDA to $17.7m
Genius Sports has increased its full-year revenue and adjusted EBITDA guidance after posting a 29.3% increase in revenue to $101.7m (￡83.0m/€95.3m) in Q3.
The data, technology and broadcast business reported growth across all segments in Q3 but remained at a net loss. However, such was this growth that, coupled with success earlier in 2023, this was enough for Genius to raise guidance.?
Genius saw the most growth within its betting technology, content and services division in the quarter. A 34.1% rise in revenue here was complemented by double-digit percentage growth across both its media and sports businesses.
Co-founder CEO Mark Locke, along with CFO Nick Taylor, both praised Q3 growth and the impact of Genius’ ongoing expansion plans. Taylor went as far as saying the business has reached a “critical” turning point.
16.?? Q3 2023: Raketech declares record high quarterly revenue of €21.5m
Affiliate group Raketech delivered revenue of €21.5m in Q3 2023, an increase of 65.8% year-on-year. Meanwhile, adjusted EBITDA for the quarter grew by 16.5% to €5.6m, while adjusted operating profit dropped by 20.6% from €2.9m to €2.3m. Overall adjusted profit came in at €997,000, down from €2.2m in the prior-year period.
The business reports revenue separately for its two core business segments, its affiliate marketing division and the sub-affiliation division, which provides services to other affiliates and operators. Revenue from the affiliate marketing division totalled €9.5m, or some 44% of the total, amid a year-on-year increase of 10.5%.
“However,” the firm said, “the most significant success during Q3 has been within paid sub-affiliation,” where revenue shot up by 264% year-on-year to €11.1m.
17.?? Better Collective lauds operational excellence in restless Q3
Better Collective A/S maintains its full-year financial targets, reporting on its most eventful quarter in business, executing strategic M&As, opening its new office in Copenhagen, and finalising its dual-listing on the Danish Nasdaq.
Publishing its Q3 trading update, Better Collective registered corporate revenues of €75m, up 26% on 2022 comparative results of €60m. Investors were informed that recurring revenues accounted for €46m (61% of group income).
Q3 operational earnings, represented as ‘EBITDA before special items’, stood at €20m, up 35% on like-for-like 2022 results of €14.5m. The earnings result reflected a robust trading margin of 26%.
Of significance, Better Collective states that its revenue make-up reflects its rebalanced media network generating income of 87% via Revenue Share, 9% via Subscriptions, and 4% from advertising sales.
18.?? Light & Wonder Q3 results: Net income shoots up to $80m
Light & Wonder has published its Q3 2023 report, which has revealed a huge improvement in net income, growing year-on-year by 300% to $80m and an even bigger increase from Q2 2023, rising by 1,500%.
This sensational improvement has been attributed to posting higher revenue and operating income, as well as a non-cash foreign currency transaction.
However, net income attributed to Light & Wonder was reported in the third quarter of 2023 as $75m, which represents a decrease of 77.1%.
Net cash provided by (used in) operating activities rose from negative $351m to $204m, but the prior year’s quarter combined cash flows were primarily impacted by $465m in cash taxes paid; related to the divestiture of the lottery business as well as the $25m SciPlay legal settlement payment during the quarter.
#Legal & Regulation:
19.?? OKTO handed German clearance for igaming payment to flourish
OKTO.CASH , the cash-to-digital payment method of OKTO, has been granted approval by the German gambling regulator Gemeinsame Glücksspielbeh?rde der L?nder (GGL), becoming an approved payment method for igaming in the country.
This regulatory clearance has been hailed as a “significant milestone” by OKTO and allows igaming merchants in the German market to leverage the advantages of OKTO.CASH , offering an enhanced payment experience to their customers.
GGL’s approval of OKTO.CASH comes after a lengthy evaluation process, during which three different operators submitted applications to utilise the payment method, with OKTO.CASH emerging as the preferred choice for operators.
20.?? EU Court rules for investigation into Dutch lottery licensing
The European Gaming and Betting Association (EGBA) has won a legal battle in the Court of Justice of the European Union (CJEU) over the European Commission’s refusal to investigate how the Netherlands awards licences to incumbent lotteries.
This decision was in response to an original complaint filed by EGBA back in 2016. EGBA had urged the Commission to probe possible unlawful financial advantages resulting from how licences are issued to incumbent lotteries.
EGBA secretary general Maarten Haijer said that while he welcomed the ruling, he was not surprised by the outcome.
“The facts and data of this case raised serious doubts about the compliance of the Dutch licensing procedure with EU law,” Haijer said. “This should have warranted the Commission to open a formal state aid investigation to address those doubts.