iGaming Wrap-Up of CW 49-50 2024
#iGaming News of the week
0.?????? US senators call for FanDuel and DraftKings antitrust probe
Two US senators called for the Federal Trade Commission (FTC) to investigate the two leading online sports betting operators for violating competition laws.
Sen. Mike Lee and Sen. Peter Welch called on the head of the Department of Justice’s antitrust division Jonathan Kanter and FTC chair Lina Khan to investigate FanDuel and DraftKings. In the letter, the senators said the operators’ conduct may be in violation of Section 1 of the Sherman Act, which prohibits coordination to impair or obstruct competition.
The two traditional daily fantasy sports giants have a combined 67% of the US online gaming market, according to research by consultants at Eilers & Krejcik Gaming.
The letter said: “We urge you to look into these allegations to ensure that competition is protected and consumers continue to benefit from innovation and new offerings in sports entertainment.”
#Breaking News
1.?????? GCGRA hunting season now open for illegal UAE operators
The UAE’s General Commercial Gaming Regulatory Authority (GCGRA) has begun chasing illegal operators out of the market with a warning to local residents.
The regulator has warned consumers about the risks of gaming with illegal operators including financial losses due to fraud, personal data theft, malware infection, phishing attempts, general cybersecurity threats, as well as being subjected to a criminal investigation by the relevant authorities.
Kevin Mullally, CEO of the GCGRA, commented: “The GCGRA is committed to ensuring a safe and legal gaming environment in the UAE.
“Stay vigilant and informed, to protect yourself from the risks associated with illegal gaming. Your adherence to the law not only safeguards your personal and financial security but also upholds the integrity of our community. If you choose to play, do so only with licensed operators.
2.?????? Senate to vote on Brazil Bets exposure to Sin Taxes
The Senate of Brazil has been informed that sports betting and online gambling activities can be considered new criteria for “selective taxes.”
The determination forms part of a report filed by Senator Eduardo Braga (MDB-AM), who serves as the Rapporteur for the Senate’s federal tax reform project.
As reported by SBC Notícias Brazil, Braga’s report classifies sports betting, online games, and fantasy sports as “targeted goods and services deemed harmful to health or that generate negative externalities—such as alcoholic beverages, cigarettes, and fossil fuels.” The tax aims to include these sectors, which have been experiencing significant growth in the country.
3.?????? Brazil government deepens gambling site blocking cooperation
The Prizes and Betting Department at the Ministry of Finance (SPA) and the National Telecommunications Agency (Anatel) formalised a Technical Cooperation Agreement earlier in the week.
The deal aims to speed up and optimise the blocking of unlicensed gambling websites operating without a licence just weeks ahead of the launch of the regulated market on 1 January.
SPA secretary Regis Dudena said: “Anatel has already been a very important partner, since we intensified the fight against illegality. Now, with [the agreement], this relationship will be even more fluid and efficient, which is a gain for the country in the challenge of ridding the betting sector of the presence of opportunistic and malicious groups.”
4.?????? Spain online GGR up 14.4% in Q3 as ad restrictions easing continues to aid growth
Spain’s Directorate General for the Regulation of Gambling (DGOJ) has reported results relating to the nation's online gambling market for the third quarter of 2024.?
In total, gross gaming revenue (GGR) for the quarter came to €348.1m ($366.5m), up 14.4% year-on-year and 0.5% quarter-on-quarter. Of this, €188m, or 54%, came from casinos, €135.9m, or 39.1%, came from betting, €20.5m, or 5.9%, came from poker and the remaining €3.7m, or 1.1%, came from bingo. Nothing was raised during the quarter from contests.
According to results, there are 77 licensed operators in Spain.
5.?????? iGaming entrepreneur Andrey ‘TTR’ Nikolaev survives attempted kidnapping
Andrey "TTR" Nikolaev successfully escaped four men who tried to force him into a van in a kidnapping attempt, likely for ransom
It is not uncommon for the gambling sector to be targeted by criminals. While some culprits think it’s a good idea to rob a casino, others prefer to participate in illegal gambling and benefit from huge profits, at least before they are caught.
While casinos can be targets of criminals, iGaming executives can also become victims of unlawful actions. According to a new report, a recognizable iGaming entrepreneur was able to successfully avoid a kidnapping attempt recently.
6.?????? Q3 2024: Allwyn posts revenue growth despite 84% UK EBITDA drop
Allwyn International has posted a 7% year-on-year revenue increase to €2.14bn in Q3 2024, driven by strong organic growth in Austria, Greece, and Cyprus, along with continued momentum in its digital channels.
Adjusted EBITDA for the quarter reached €410.8m, marking a 12% increase year-on-year.
The quarter’s performance was driven by particularly robust results in Austria, where gross gaming revenue (GGR) rose by 7% year-on-year, alongside standout growth in Greece and Cyprus, which recorded a 17% increase.
7.?????? BC.GAME withdraws its gaming license from Curacao, operator to focus on regulated markets
Crypto online gaming platform BC.GAME has announced the decision to withdraw its license from Cura?ao. In a press release, the company stated that this move comes in response to Cura?ao's “increasingly hostile environment” for operators in recent years and as the company seeks to prioritize more regulated markets.
“Despite ongoing efforts to modernize Cura?ao's iGaming law, proper legal protection for all operators established in Cura?ao is severely lacking, such as its bankruptcy law which dates to 1931 via the ‘Cura?ao Bankruptcy Decre’ which can easily be exploited by malicious actors and used against legitimate operators,” BC.GAME added.
Therefore, on December 5, BC.GAME decided to officially withdraw its Cura?ao license. The company assures that this decision "in no way" will affect BC.GAME's wider international operations.? Separately from Cura?ao, BC.GAME holds gaming licenses in multiple other jurisdictions, and its international operations remain "fully compliant" with its applicable regulatory obligations.
#US / Canada
8.?????? Michigan Lawmakers Propose Incremental Tax Hikes on Online Gambling
Michigan lawmakers have introduced two new bills aimed at increasing taxes on online sports betting and casino operators. The proposals, Senate Bills 1193 and 1194, were brought forward on December 5 by Senators Sam Singh and Jeremy Mossand and have since been referred to the Senate Government Operations Committee. These measures would amend the 2019 Lawful Sports Betting Act and the Lawful Internet Gaming Act, resulting in small increases to the tax rates applied to gambling operators in the state.
Under the current system, sports betting operators pay an 8.4% tax on adjusted gross revenue while online casino taxes operate on a graduated scale ranging from 20% for less than $4 million in annual revenue to 28% for earnings exceeding $12 million. Detroit-based operators also contribute an additional 1.25% city tax.
9.?????? Video gaming tycoon sues Illinois Gaming Board
A major video gaming terminal (VGT) businessman has sued the Illinois Gaming Board (IGB) for alleged constitutional violations. According to him, the board and its leadership unfairly targeted its business with its regulatory actions.
Monson Said His Business Was Unfairly Targeted
The lawsuit was filed by Matthew Monson, the man behind VGT companies, such as VVGT, Equitable Veteran Solutions and Vemco. In his complaint, he alleges that the board’s decisions targeted his VVGT business unfairly, violating its constitutional rights.
Monson claimed that the regulator continued to pursue unjust regulatory action against the company in question even after its license had expired. He described these actions as actively seeking to punish his businesses.
10.?? PrizePicks hit with second patent infringement suit in Georgia
PrizePicks was sued for the second time by a sports gaming supplier Vetnos in Georgia federal court for alleged patent infringement earlier this month.
The complaint alleges PrizePicks stole its Daily Fantasy Sports (DFS) concept with help of an ex-Vetnos employee poached by the business.
According to the lawsuit, the DFS business was in contact with Vetnos co-founder Dan Orlow, who is the co-inventor of each of the patents, from the summer of 2018.
During a reported phone call in July that year, former PrizePicks CEO Adam Wexler allegedly told Orlow “we liked your game so much, we decided to copy it.”
领英推荐
11.?? Pennsylvania ranks first in US casino taxes collection at $2.3 billion in 2023
Pennsylvania collected more casino taxes than any other state in the United States in 2023, according to a new report. Conducted by Doc’s Sports Service, the study shows Pennsylvania coffers collected $2.3 billion, with New York coming in second at just over $2 billion, and Nevada at a distant third at $1.2 billion.
“Slots is taxed here at about 52% for the casinos,” said Doug Harbach, the Communications Director of the PA Gaming Control Board, as per an ABC27 report. “When you move to some other states like Vegas that are there somewhere around 6 or 8%.”
While traditional casino gaming plays its part, the rise of sports betting and online gaming are also factors contributing to the growing tax revenue.
12.?? Illinois FY24 gambling report: Tax revenue over $2 billion, but casinos not key drivers
Data from the fiscal year 2024 edition of the Wagering in Illinois report from the legislature's Commission on Government Forecasting and Accountability showed that the state's gaming industry generated a record $2.08 billion (￡1.62 billion/€1.97 billion) in tax revenue in FY24, the most ever for the Prairie State.
According to the report, state tax revenue grew 4.8% year-over-year from $1.99 billion in FY23. Illinois has one of the strongest gaming industries in the US, with casino gaming, video gaming (slot routes), sports betting, horse racing and lottery.
The report covers not just the last fiscal year, but references financial reports dating back to legalisation dates for each genre of gambling.
13.?? North Carolina has second-best wagering handle month since launch
North Carolina bettors wagered a near record $657.7 million (￡515.8 million/€623.3 million) in November, the second-highest handle since betting went live in March.
The largest total bet in a month in North Carolina was $693.3 million in March, when wagering went live. That amount includes real-money and promotional bets. In November, bettors laid down $638.7 million and operators wrote off $19 million in promotional play. In March, bettors wagered $456.7 million in real-money bets and also used $202.6 million in promotional play.
Operators in the Tar Heel state took in record revenue of $78.1 million for November, according to today’s (9 December) report from the North Carolina State Lottery Commission. The next highest gross gaming revenue (GGR) month was September, when operators reported $70.1 million.
14.?? New York sets $231.6 million online sports betting revenue record in November
Mobile sports betting gross gaming revenue in New York reached a monthly record of $231.6 million (￡181.6 million/€219.0 million) during November, while handle fell just short of the state’s all-time high.
Revenue from online sports betting was 53.5% higher than $150.9 million in November last year. It also surpassed the $176.3 million posted in New York in October this year by 31.4% and beat the state’s existing record – $211.5 million in January – by 9.5%.
Spending-wise, data from the New York State Gaming Commission reveals monthly handle for November hit $2.27 billion. This is the second-highest monthly amount on record since the state launch legal online betting in January 2022.
#M&A & Finance
15.?? Ugnius ?imelionis: our acquisition of SysGaming marks a new chapter for TG Lab
Last week, TG Lab announced that it had acquired SysGaming, a regional B2B gambling provider based in Foz do Igua?u, Paraná, Brazil – a move that CEO Ugnius Simelionis is confident will accelerate the company’s growth in Latin America.
The acquisition not only strengthens TG Lab’s presence in the rapidly expanding LatAm region, but also opens new avenues for localised content and bespoke solutions that are specifically tailored to local operators.
SBC caught up with TG Lab’s CEO to discuss this major acquisition, highlighting its impact on the company’s future as well as discussing some of the exciting developments taking place in Brazil’s rapidly evolving regulated gaming market.
16.?? Groupe Partouche posts €434.3m turnover for FY24
Groupe Partouche has posted its final financial results of 2024, reporting an annual turnover of €434.3m ($456.6m), up 2.5% in comparison to figures from 2023. Results for the full year of 2024 span across the period from November 2023 – October 2024, with Q4 spanning from August to October 2024.?
Turnover aside, Groupe Partouche’s gross gaming revenue (GGR) figure for the year reached €712.3m, a marginal 1.5% increase in revenue when compared to results from 2023. This rise was primarily driven by the organisation's French operations, as GGR in the nation reached €636.1m, rising by 0.9% year-on-year. Further, this figure was driven by a strong performance from slot machines, which generated a revenue of €504m for the year, rising by 1.5%.
#Legal & Regulation:
17.?? ASA clears Betfair over Prize Pinball radio advert
The UK’s Advertising Standards Agency (ASA) has today (11 December) cleared Betfair over a radio advert for its ‘Prize Pinball’ free-to-play promotion after a complainant challenged whether it had been “inappropriately” broadcast at a time children could hear.
A single complainant contacted the ASA over the Betfair advert that was broadcast on Radio X on 3 September. This focused on the timing of the advert and whether it may have been heard by children.
Responding to the complaint, PPB Entertainment, the branch of Flutter Entertainment that oversees Betfair, denied the claims. It said the ad was cleared by Radiocentre, the industry organisation for commercial radio, prior to broadcast.
18.?? Moldovan parliament signals approval for lifting strict ban on gambling advertising
The Moldovan parliament has approved the first reading of a draft law that would allow some forms of gambling advertising for low-risk verticals. The proposal would mean an end to the complete ban on gambling ads, but conditions would be very specific.
Broadcast advertising and audiovisual would be permitted between 10.00pm and 7am and during sports competitions broadcast live by national service providers. Meanwhile, display advertisements would be allowed for games such as lotteries and sports betting provided they do not exceed A4 size and are only displayed at retail outlets.
The Party of Action and Solidarity banned all gambling advertising after coming to power in 2021 but now proposes certain advertising to be allowed with strict conditions. The initiative was authored by deputies Radu Marian and Dorian Istratii due to difficulties in applying the total ban.
19.?? Colombia seeks to block social media accounts promoting illegal gambling
Colombia’s gambling regulator, Coljuegos, announced its new plan to block illegal gambling promotions on social media, partnering with Meta and the Cyber Center of the National Police.
Almost 289 accounts are now under the target, including those of high-profile influencers like Daneidy Barrera, Rojas Yeferson Cossio, and Carlos Mauricio Gómez La Liendra. Together, these personalities have more than 23 million followers.
Coljuegos director Marco Emilio Hincapié commented:
“We have asked Meta to block these and other profiles that operate games of chance without state authorization or promote foreign betting platforms that fail to pay exploitation fees in Colombia.”
20.?? Spelinspektionen hits Videoslots with fine over AML failures
The Swedish gambling authority, Spelinspektionen, has found Videoslots Ltd guilty of committing AML violations.
According to the regulator, the company had deployed “insufficient” customer awareness measures, leading to various deficiencies when it comes to document and information preservation.
Initial orders entailed that Videoslots must pay a fine of SEK 9m (￡649k) in damages, but based on a subsequent review which constituted that the violations were not systematic, the fine was brought down to SEK 4m (￡288k).
21.?? New Zealand calls end to Greyhound Racing by 2026
ew Zealand plans to outlaw greyhound racing because too many dogs are hurt or killed, the government said Tuesday, spelling an end to the practice in one of the few countries where it still operates.
The racing of greyhounds as a betting sport was wildly popular at times last century. But the number of dogs euthanized due to race-day injuries, or because homes cannot be found for them after their short careers end, has provoked animal welfare campaigns and growing public distaste for the sport.
Commercial greyhound racing continues in the United States, Australia, the UK and Ireland, with only two tracks remaining in the US after many states ended the practice.
#Tech:
22.?? DAZN boosts betting sector activity with LTN media deal
DAZN has revealed a new media deal with media technology solutions firm, LTN.
Looking to boost its engagement within the betting sector beyond the activities of its sportsbook, DAZN Bet, the brand will work on delivering live content from major international football competitions to betting audiences and commercial partners in Germany.
Meanwhile, the deal will utilise LTN’s automated linear channel creation and playout technologies to support DAZN’s delivery of 11 low latency, live streaming channel variants to 1,000 betting locations and to Amazon Prime Video, its distribution partner platform.
Chris Myers, LTN EVP, Chief Revenue Officer, commented: “DAZN spearheads innovative linear channel creation and distribution strategies to engage new audiences with fan-first streaming experiences on any platform.