This Week's Sports Betting Update

Hello, we’ve taken a look at what’s news, trending and being talked about in the sports betting world this week. Grab a coffee, take five minutes and we’ll fill you in on everything you need to know.

One big story?

Kindred Group hails ‘solid’ start to 2024 as FDJ takeover deal looms

Kindred Group described Q1 2024 as a ‘solid start’ to the year within its latest trading update. The Swedish iGaming giant saw revenues remain equal to Q1 2023, standing at ￡307m.

There were marked improvements to its trading, posting 24% and 20% revenue gains in the Dutch and British markets. However, Kindred described its progress within the Nordic segment as ‘disappointing’, with a 20% decline in revenue in its native Sweden and flatlining figures in the Danish market.

Despite a string of challenges, Kindred says its income performance is on a stable footing, given that 84% of gross winnings revenue was derived from locally regulated markets.

It’s possible Kindred Group is sold to Groupe Francaise des Jeux (FDJ) this year, with those figures by no means deterring FDJ in their bid to acquire the Scandinavian firm. Kindred’s board has already approved the deal in principle, with shareholders having until 19th November to accept the deal.

Click here to check out the granular detail in Kindred Group’s Q1 2024 trading update.

What you need to know

Commercial

• ???? ?Lottomatica Group has finalised its acquisition of SKS365 Malta Holdings through its subsidiary GBO SpA. The purchase, valued at €639 million, aims to bolster Lottomatica's presence in the Italian market by integrating SKS365's significant online brands and retail betting locations. The acquisition also prompts a leadership change, with Alexander Martin stepping down as CEO of SKS365. More
• ???? ?Penn Entertainment has opened the doors of its inaugural ESPN BET retail sportsbook in Detroit, Michigan. Ahead of the 2024 NFL Draft, also hosted in Detroit, the first land-based ESPN BET sportsbook has been launched within Greektown’s Hollywood Casino. More
• ???? ?Live dealer casino giant, Evolution, saw operating revenues surge 16.7% year-on-year to ￡429.9m in Q1 2024. Operating revenues were also up 5.5% quarter-on-quarter, as Evolution aims to meet the growing demand for live streamed casino experiences. CEO, Martin Carlesund, said the firm was hungry to invest and expand in its global operations. More
• ???? ?Consultancy, Odds On Compliance, and sports betting monitoring firm, US Integrity, have finalised their merger and rebrand. The business, now known as Integrity Compliance 360 (IC360), will focus on launching new compliance and integrity solutions for the sports betting and iGaming sector. More

Regulation

New research commissioned by GambleAware suggests UK children are being enticed by “bright” and “eye-catching” gambling advertising. The study shows these bold and brash ads prove more appealing to the most vulnerable children, especially those with special educational needs and disabilities. More

Technology

Geo-location security solutions provider, Xpoint, has revealed its new Trust Mode product, designed to improve the efficiency of geo-location services for iGaming operators. The patent-pending solution minimises player location checks by up to 20%, realising potential cost savings for operators. More

People news

Lori Kalani named DraftKings’ inaugural chief responsible gaming officer

DraftKings has appointed Lori Kalani as its first chief responsible gaming officer. Kalani, who recently worked as a partner at law firm Cozen O’Connor, will oversee the elevation and integration of responsible gaming initiatives on the DraftKings platform.

During Kalani’s time at Cozen O’Connor, she co-chaired the state attorney’s general practice and was a partner at law firm Dickstein Shapiro.

Click here to get the thoughts of Kalani on her new role and CEO Jason Robins on why responsible gaming is a top priority for DraftKings.

This week's talking point

UK government moving ‘at pace’ to implement white paper measures by the summer

The UK government has responded to a committee of MPs to reiterate that it’s working “at pace” to usher in the core proposals laid out in its gambling review white paper. With collaboration from the UK Gambling Commission (UKGC), the government aims to have most measures in force by the summer.

However, the UK gambling sector is still lacking clarity on final plans for affordability checks, the prospect of a statutory levy on operators and the prospect of a new industry ombudsman.

The Culture, Media and Sport Committee’s recent report on the UK’s gambling regulation described the government’s summer target as “challenging” and in danger of being sidelined by wider political events.

The committee was also concerned at the lack of colour surrounding the UK’s gambling legislation in the King’s Speech, demanding a detailed timetable for the delivery of the white paper proposals. As yet, this has not been forthcoming.

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Click here to learn more about the progress made in developing a Single Customer View (SCV) across the leading operators, with 95% of operators having access to the GamProtect pilot since early April.

This week's insight

Is France inching closer to regulating its own iGaming market?

France is the only major Western European nation yet to have a regulated iGaming market. The size of the black market in France is said to be worth upwards of ￡1.7bn, although iGaming industry senior executives believe it could be higher still.

Following the approval of France’s new digital safety bill, followed by the sign-off of new regulations surrounding crypto-based web 3 gaming products known as JONUM, the prospect of a regulatory framework for iGaming could be back on the table.

There are two organisations that continue to lobby for such legislation. The Casinos de France trade group, which represents land-based operators, and the online representative body, AFJEL, remain passionate about a licensed French marketplace.

PMU joined forces to become a member of AFJEL last month, which could add weight to its proposals. Furthermore, the privatisation of FDJ in 2019 has empowered it to accelerate its corporate expansion plans, with a proposed takeover of Kindred Group still in the offing.

Click here to learn more about the French iGaming landscape as it stands today and its untapped potential.

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