iGaming Wrap-Up of CW 49-50
#iGaming News of the week
0.??????Brazil misses open goal to regulate sports betting
A year of optimism ends in disappointment as Jair Bolsonaro’s inaction and electoral pandering come at the expense of Brazil taking its best shot to regulate a federal sports betting market…
December 12, 2022, marked the last possible day for Brazil to approve it’s federal sports betting regime… A date which passed without a trace of legislative action.
On reflection, Jair Bolsonaro’s presidency did little to convince its biggest electorate, the Evangelicals, to support regulating sports betting. A hurdle needed to launch an industry that would place Brazil among the five most popular global betting markets.
Due to its affinity to sports and maintaining the sixth largest population, a regulated Brazilian sports betting sector could be worth around $3.4bn by 2027, according to H2 Gambling Capital – That is, of course, if the industry is to be regulated soon.
Back in 2018, the government of former President Michel Temer established a two-year period to approve the regulatory proposal, with the possibility of a further two-year extension period. Rumours have circulated in recent weeks about a possible ‘deadline extension’ for Bolsonaro to sign the regulation before leaving office, yet reality shows that the original deadline established for December 12 was not met.
?#Breaking News
1.??????GGL takes charge of German gambling’s interstate duties
Germany’s new regulator has taken full control of the duties outlined in the nation’s Fourth InterState Gambling Treaty (GlüNeuRStv), with Gluecksspiel (GGL) becoming the “common authority for German gambling”.
Earlier this week, representatives of Germany’s 16 federal states met for the final time to dissolve the state-sanctioned ‘Gambling Collegium’ body, which served as the treaty’s temporary placeholder before the GGL finalised its preparation.
Ending a period of transition for the German market, the GGL can now assume full responsibility of the country’s regulation, overseeing licensing, technical accreditations, penalty enforcements, taxation and market disputes of the GlüNeuRStv mandate.
This development sees the country end its divided licensing policy which was shared between “transitional federal states of Saxony-Anhalt (online poker/virtual slot machines), Hesse (sports and horse betting), Rhineland-Palatinate (public lotteries), Hamburg (state lotteries) and Lower Saxony (commercial game brokerage)”.
?2.??????GiG acquires AskGamblers for €45m as Catena sheds Euro assets
Leading iGaming technology company that offers solutions, products, and services to operators Gaming Innovation Group (GiG) has inked an important acquisition deal with Catena Media Plc. The latter had agreed to sell its two wholly owned subsidiaries located in Serbia and Malta that are responsible for operating the AskGamblers brand and associated online casino brands NewCasinos and JohnSlots. The two brands agreed to seal the deal for €45 million which will be paid in cash in three tranches in the first quarter of 2023.
The Decision to Sell, a “Major Step” for Catena’s Journey?
Catena Media’s chief executive officer Michael Daly commented on the agreement, calling it a “major step” on their “journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas”. Daly also expressed his confidence in GiG’s ability to nurture and grow a “strong environment” for AskGamblers and the rest of the brands that are part of the agreement.
https://www.gamblingnews.com/news/gig-buys-catena-medias-askgamblers-related-casino-brands-for-e45m/
?3.??????Jetbull to shut down business
The online casino and sportsbook operator Jetbull has advised customers that it will cease operating at Jetbull.com this month. It is no longer accepting deposits and intends to close completely in two weeks.
A message to customers read: “We regret to inform you that Jetbull will be shutting down operations this month. We are grateful for all your support shown in over a decade of operations, where Jetbull established itself as a strong, steady brand. However, the time has come to seek new ventures.”
It added: “Thank you for your patience and understanding and for standing by our brand throughout this time. Customers were advised to withdraw any remaining funds.”
?4.??????The Cordish Companies unveils details of $1.4bn development in Petersburg
The Live! Gaming & Entertainment District is located at the intersection of Wagner Road and Interstate I-95, and will offer easy access on and off the east coast's major north-south interstate.
Petersburg Mayor Sam Parham said: "The details show what the City's vision is for this type of project and why we wanted to work with Cordish as the developer.
"An important part of our selection process was to identify a development partner with a proven track record in developing and operating mixed-use and casino properties, a long history of revitalising cities across the country, and strong community engagement practices."
?5.??????Evolution stock slides as EU rubberstamps 15% corporate tax rate
Evolution’s share price has fallen nearly 5% at the time of writing after EU member states agreed to implement a global corporate turnover tax at a minimum rate of 15%.
EU state ambassadors advised the European Council to adopt the tax directive on 12 December 2022. It was first agreed upon in October 2021 by nearly 140 countries.
The switch means the profit of companies with a combined annual turnover of at least €750m will now be taxed at a minimum rate of 15%.
In 2021, Evolution reported annual revenue of €1.7bn, so it meets the EU’s criteria of a large multinational or domestic group or company and will be subject to the tax change.
The changes are designed to limit a “race to the bottom” on corporate tax rates, according to the EU. The directive must be implemented by law in each country by the end of 2023.
?6.??????Court rejects Daub Alderney’s appeal against ￡5.85m Gambling Commission fine
In September 2021 the Commission fined Daub Alderney ￡5.85m for social responsibility and anti-money laundering failures.
Daub Alderney appealed to the First-Tier Tribunal on the grounds that the financial penalty was excessive, unfair and disproportionate.
But following a hearing Judge Findlay dismissed the appeal and stated the financial penalty was a “fair and reasonable regulatory response”.
She said: “I find that there were serious breaches which were similar to the breaches for which a substantial financial penalty was imposed in 2018 and there are no new facts which persuade me that the decision was wrong. I find that the (Commission Regulatory) Panel did not err in law and complied with its statutory obligations.”
?7.??????Star hit with AU$100m penalty and licence suspension in Queensland & Australian financial watchdog sues 11 executives of The Star
The Star Entertainment Group has been hit with AU$100m (US$67.6m) in fines by the Queensland Government following “major failings” at its casinos.
The Government also deferred suspension of the group’s casino licences for a year to monitor operations in the state.
The Star has been given 12 months to pay the fines, while its casino licences for Treasury Brisbane and The Star Gold Coast will be suspended for 90 days, but that action has been deferred until 1 December 2023.
The operator’s shares were halted in early market hours on Friday pending an announcement on “determinations regarding disciplinary actions.” Shortly after the release the shares resumed trading.
领英推荐
?#US / Canada
8.??????New sheriff in town: Fertitta takes Las Vegas
In a city long known for bigger-than-life figures such as mobster Bugsy Siegel, reclusive tycoon Howard Hughes and casino mogul Steve Wynn, Tilman Fertitta is the newest big player on the Las Vegas Strip.
The billionaire Texas businessman and owner of Fertitta Entertainment, which owns more than 600 restaurants, hotels, casinos and other entertainment destinations across the US, has planted his flag on the Strip.
After first venturing into Vegas through his acquisition of the former Wynn-controlled Golden Nugget downtown, Fertitta made a stir in growing his influence on the Strip.
?9.??????Massachusetts regulator awards first sports betting licence to Encore Boston Harbor
Encore Boston Harbour has become the first facility in Massachusetts to receive a sports betting operator licence after certification was confirmed by the Massachusetts Gaming Commission (MGC). In-person sports betting will launch in Massachusetts in January 2023, to be followed by online betting in early March.
The Massachusetts Gaming Commission voted unanimously to approve the licence. Encore Boston Harbor intends to operate two online platforms, WynnBet and Caesars Sportsbook. In-person sports wagering will begin in Massachusetts ahead of the Super Bowl and mobile sports betting in time for the NCAA March Madness basketball tournament. However, the commission has reserved the right to push back the timeline.
Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino each submitted applications for a Category 1 operator licence. Each licensee will be able to operate in-person betting as well as on up to two online platforms.
?10.??US commercial gaming continues record revenue pace in October
The U.S. commercial gaming industry’s momentum is far from over. The sector delivered in October revenue of $5.29 billion, increasing 10.5% year-over-year and marking an impressive 20 consecutive months of growth. But most importantly, October was the industry’s second highest-grossing month on record, only eclipsed by March 2022, at $5.35 billion.
The figures were unveiled on Tuesday by the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker, which provides state-by-state and nationwide insight into the U.S. commercial gaming industry’s performance.
All in all, the picture is a promising one for the sector which, as 2022 draws to a close, remains on track for another record-setting year. Over the first ten months, commercial gaming revenue totaled $49.85 billion, 14.7% ahead of the same 10-month period in 2021.
?11.??New York sports betting revenue hits record $148m in November
November was the best revenue month on record for New York online sports betting, as gross gaming revenue for the month hit a new high of $148.2m.
According to a report from the New York State Gaming Commission, November’s handle also beat out October to claim the third-highest handle month overall for the Empire State since it launched online sports betting earlier this year.
November’s $1.55bn handle topped the previous month’s $1.54bn to become the state’s third-biggest monthly handle since its mobile sportsbooks began operations (January: $1.66bn, March: $1.63bn).
The new GGR high of $148.2m beat the previous best set in October of $145.65m, as well as September’s $143.33m.
?12.??North Dakota tribes settle for on-site online sports betting in new compacts
North Dakota’s gaming tribes are set to have official federal government permission to open online sportsbooks, but those betting options are set to be confined to tribal lands.
North Dakota Gov. Doug Burgum and representatives of the state’s five gaming tribes agreed to new compacts last week that will allow casinos on tribal lands to open mobile sportsbooks that are only accessible within these territories. The new compacts will also allow casino-style gaming via mobile apps, including digital slots and table games, on tribal lands.
The new deals are subject to approval from the federal Department of the Interior, which is expected by next month.
?#M&A & Finance
13.??PlayStar to receive $15m Meyer Global Management equity funding
PlayStar noted that it has caught the attention of Meyer Global Management, with the group enjoying a ‘flying start in its five months of operations in New Jersey.’
The tech-focused investment firm has now put an eight-figure sum behind the online casino brand to fuel its growth plans. PlayStar stated that it will use the investment to support its launch in Pennsylvania next year.
“PlayStar is delighted to welcome Meyer Global Management as a shareholder in our business,” said PlayStar CEO Per Hellberg. “MGM’s confidence in PlayStar to provide $15m to support us in a time of such economic uncertainty says a lot about PlayStar’s performance over the past few months.
#Legal & Regulation:
14.??ACMA issues two further blocking orders against offshore sites
The ACMA has requested the Australian internet service providers (ISPs) to block two illegal offshore gambling websites, after investigations found that those two websites are operating in breach of the Interactive Gambling Act 2001.
The latest sites blocked include Pokizino and ABA Lucky 33.
Website blocking is one of a range of enforcement options to protect Australians against illegal online gambling. Since the ACMA made its first blocking request in November 2019, 652 illegal gambling and affiliate websites have been blocked.
15.??Monzo blocks 20% more gambling transactions over last six months as 50,000 users sign up
Online bank Monzo’s gambling block tool has seen a sharp increase in demand over the past six months, with 50,000 customers using it for the first time.
This is a third more than the number of people who started using it for the six months prior.
The London-based bank also blocked 20% more transactions than it did in the previous half-year period, according to the PA news agency.
The tool is designed to help people overcome gambling addiction by blocking transactions to betting companies through their current account.
The software groups transactions into specific spending categories, allowing the bank to identify if a transaction is sent to a gambling merchant.