This Week's Sports Betting Update

Hello, we’ve taken a look at what’s new, 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?

Kentucky sports betting bill passes committee and awaits vote in the House

Legalised sports betting in the US state of Kentucky took a step closer to fruition after House Bill 551 passed committee. The bill must now move on to a vote in the House, where it must be approved prior to reaching the Senate.

House Bill 551 is a bipartisan effort, achieving cross-party consensus. The proposed legislation will enable racetracks in Kentucky to partner with sportsbook operators to offer retail and online services.

The Kentucky Horse Racing Commission has been hand-picked within the bill to act as the gatekeepers of regulatory compliance in the Bluegrass State.

Click here to discover more about House Bill 551 and the key proponents of the legislation.

What you need to know

Commercial

• ???? Online sportsbook provider OpenBet has penned its first deal in the Greek sports betting market with OPAP. Under the terms of the partnership, OpenBet will supply its full complement of underlying sports betting technology services, spanning trading and betting content through SportCast.?More
• ???? The sports betting handle in the state of Arizona was up 15% year-on-year in December 2022, according to new figures from the Arizona Department of Gaming. The handle for sports betting totalled $572.5 million, up from $499.2m in December 2021. Just 1% of all sports bets placed were made at retail sportsbooks, with mobile sportsbooks enjoying a dominant 99% market share.?More
• ???? Entain has announced the acquisition of Tiidal Gaming NZ, the parent company operating Esports betting developers Sportsflare. The ￡10.9m buyout is aimed at strengthening Entain’s offering in the world of Esports, following on from Entain’s purchase of Unikrn in October 2021 and its subsequent relaunch in December 2022.?More
• ???? Spotlight Sports Group has sealed a multi-year arrangement with XL Media to supply highly targeted horseracing betting content through its Superfeed content engine. With a full API integration and bespoke widgets, Superfeed will supply content on UK and Irish races across all relevant domains owned by XL Media.?More

Regulation

The Betting and Gaming Council (BGC) has urged the UK government not to impose any new taxes on the UK’s gambling industry. The BGC’s CEO, Michael Dugher, is calling for “no new tax rises” as well as balanced reforms within the government’s overdue gambling white paper. Dugher warns that new draconian regulations and taxation would put several operators at risk. More

Technology

Playtech has informed investors it has secured a single-digit stake in Hard Rock Digital, the iGaming subsidiary of Hard Rock International. Around ￡80m will be invested by Playtech to underpin Hard Rock Digital’s worldwide expansion plans. Under the terms of the arrangement, Hard Rock Digital will be permitted to license a host of Playtech’s own iGaming content, as well as its underlying technology solutions, primarily on a revenue-share basis. More

People news

AGCO’s CEO Tom Mungham is set to step down later this year

The Alcohol and Gaming Commission of Ontario (AGCO) has confirmed the departure of chief executive Tom Mungham later this year. Mungham will also step down from his role as registrar, as he plans to take retirement in the autumn.

The AGCO said Mungham would remain in his roles until such time as a replacement is found.

Mungham has been a part of the AGCO for almost 17 years, starting out as director of licensing in registration, before becoming chief operating officer and being appointed in his existing roles in 2020.

Click here to get the thoughts of AGCO’s chair, Lalit Aggarwal, on Mungham’s departure.

This week's talking point

The main takeaways from Flutter Entertainment’s FY22 results

Flutter Entertainment was one of the first UK iGaming giants out of the block in publishing its full-year 2022 results. The owner of Betfair, Paddy Power and Sky Bet is one of the biggest iGaming companies on the planet, so its performance through a testing 2022 almost certainly sets a benchmark for the wider UK gambling industry.

The headline from Flutter’s FY22 results is that it is winning the battle for market share in the US. Flutter claims to have a 50% market share, with its FanDuel platform appearing to be the leading sportsbook in 15 of the 18 states in which it is live.

Its average monthly customer base in the US had grown to over three million in Q4 2022, while it confirmed the addition of 1.2 million new bettors thus far in 2023.

The data also suggests that Italy is now the biggest gambling market in Europe, with gross gambling revenues of ￡18 billion last year. This explains why Flutter acquired Italy’s leading betting operator, Sisal, in August 2022.

Click here to discover if Flutter’s figures suggest there is still life in the UK and Irish betting markets.

This week's insight

Are free bets still favoured by punters in the UK?

The Betting and Gaming Council (BGC) commissioned a survey through YouGov to gauge the appetite for free bet promotions among bettors in the UK.

The survey was conducted amid the landscape of likely reform to the UK’s gambling legislation, which could include alterations to laws on gambling promotions.

According to the results, four-fifths (82%) of bettors agreed that bookmakers should be permitted to offer promotions like free bets. More than half (54%) of bettors surveyed admitted the prohibition of free bet offers and other promotions would likely drive them to use black market operators.

The BGC’s CEO, Michael Dugher, said the findings show that bettors are comparable with consumers of any other products in that value offers like free bets remain popular.

Click here to learn more about the economic footprint of the UK’s gambling industry, including billions of pounds generated in economic activity and tax revenues for the Treasury.

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