Macau public backs gaming industry with support for six concessions

The consultation opened in September 2021 to consider changes to Law No. 16/2001 – “The Legal System for Casino Gaming Operations”.

In total, 1,340 responses were received, mostly from individual citizens.

The issue that attracted the most responses was the number of concessions that the Macau government would issue in future tender processes. In total, 217 responses were provided to this issue.

Of these responses, 22 indicated they wished to see no more than six concessions issued. A further 95 said they would prefer exactly six concessions, while 36 supported there being more than six concessions. The remaining responses did not have a clear preference.

Although the previous bidding process allowed for only three concessions, it also allowed for winning bidders to issue sub-concessions to their own licence, a concept the government proposed removing in the consultation. The report noted that removing sub-concessions was a popular idea with respondents.

“A large number of bids hinders the diversified development of the industry and may lead to unhealthy competition in the gaming market and increase the difficulty and administrative cost of the government’s supervision of the industry,” the Macau government said.

“If the number of grants is too small, it will weaken Macau’s international competitiveness.”

The second most popular issue for responses was that of the length of time for concessions. Here, 72 respondents, around half of those who expressed a preference, wished to see the length a concession lasts cut down from the previous 20-year term. Meanwhile, 56 said the length should stay at 20 years and 17 said they should be longer.

“Opinions pointed out that the excessively long grant period lacks flexibility and also makes gaming companies inert and lose market competitiveness in the long run,” the report said.

Most respondents who wished for a shorter length recommended a 10-year term, with an option for extension to 15 under special circumstances.

Of the proposals in the original consultation, among most notable was a suggestion that government representatives should sit on the boards of operators permitted to open casinos in Macau.

“The power of supervision allows the government to have greater supervisory power in the daily work of gaming companies and directly monitor the operating status of approved companies,” the report said.

“In addition, it is more effective to guarantee the development of the industry and the interests of the society as a whole, and prevent the occurrence of unfavorable conditions for the development of the gaming industry.”

In total, 134 people responded to this aspect of the consultation, with 57 approving, 38 opposing it and 39 having no clear opinion one way or the other.

The report said that most people said the introduction of representatives would “help the government and the society to monitor and approve companies and ensure that they operate legally, ensure that the approved company fulfills contractual obligations, enhance transparency, and facilitate communication with the government and prevent the approved company from violating regulations”. 

However, some respondents were concerned that the change would lead to “too much interference” in company affairs, and so recommended clearer definitions for the functions, powers and responsibilities of these representatives.

Others noted that, despite high levels of supervision in some other jurisdictions, the introduction of government representatives would be unprecedented, making it hard to predict the consequences.

As a result, the report noted that any plans to introduce representatives must be “carefully considered and balanced”.

A key topic area for the Macau market in late 2021 was that of junkets, after the arrest of Alvin Chau, who was chairman of the region’s largest junket operator, SunCity.

Chau was one of 13 people suspected of creating an illegal live betting platform in the Philippines, which attracted customers from mainland China via a Macau-based junket. The group is then said to have used local bank accounts to transfer its revenue from the operation.

In the consultation, the Macau government proposed “strengthening the review mechanism” for intermediary businesses, highlighting junkets in particular. This, it said, may include a “qualification review” of people hired by intermediaries.

Of the 72 people who responded to this aspect of the consultation, 53 approved of the push for higher standards.

Some respondents suggested stricter restrictions, including a ban on lending money to VIPs.

“[Junkets] have played a positive role in promoting Macau’s overall economy and tourism, and has also ensured the government revenue, but there are also illegal acts by shareholders, employees, gambling intermediaries and partners,” the report said.

“Therefore, the government attaches great importance to the qualification review of all entities participating in gambling activities, and it is necessary to establish comprehensive and effective prevention mechanisms to strictly ensure the healthy and orderly development of the gaming industry.”

Besides the introduction of representatives, the consultation also suggested other requirements for concessionaires.

These included requiring someone based in Macau to serve as managing director of the business, encouraging operators to use their profits to support the diversification of Macau’s economy and raising the amount of capital that operators must hold. All three moves were approved by the majority of respondents, the last one being approved unanimously.

Another proposal listed was the promotion of non-gaming projects, requiring resorts to feature more non-gaming activities in an effort to diversify Macau’s economy, after chief executive Ho Iat Seng  warned last year of of Macau’s “excessive dependence” upon the gambling industry.

This was a widely popular recommendation, with more than 97% of responses in favour.

The government also proposed that licensees should take on a number of specific social responsibilities, including supporting small and medium-sized local businesses, protecting labour rights and taking part in philanthropic ventures. Again, this suggestion was widely supported.

Besides the elements of the consultation, respondents also suggested that online betting should be permitted and that the market for sports betting should be opened up. However, the government said it “does not approve” of these measures, due to concerns about addiction.

In addition, some argued that the gaming tax rate of 35% was too high. In response, the government said the issue “must be carefully considered and evaluated”.

Meanwhile, Macau’s Bureau of Gaming Supervision (DICJ) also announced that in 2021, operators in the Special Administrative Region brought in revenue of MOP83.86bn (£7.71bn/€9.21bn/$10.40bn).

While this was up 43.7% from 2020, it was still down 72.4% from 2019.

In December, revenue came to MOP7.96bn. This was up 1.8% from 2020 but down 64.8% from 2019.

Inspired moves into lottery vertical through Sportech Lotteries acquisition

The acquisition marks Inspired’s expansion into the lottery sector to further diversify its product range and customer base, and increase its geographic reach. 

This, the supplier explained, should provide additional growth opportunities in North America as well as strengthening its ilottery offering, as well as allowing it to offer a turnkey lottery and igaming solution to new customers.

The $12.5m cost represents a multiple of 4.0x Sportech Lotteries’ adjusted earnings before interest, tax, depreciation and amortisation of $3.1m for the year to 30 June 2021. A further $2.0m may be paid should the business meet conditions to trigger the earn-out. 

Sportech Lotteries’ principal asset is the lottery systems contract to provide online and retail lottery services to Loteria Electronica Internacional Dominica (LEIDSA), the national lottery of the Dominican Republic. 

Under a contract that runs to 9 March 2025, Sportech’s Quantum System is used to power 2,100 land-based ales outlets, as well as providing software and field support. As part of the deal, Inspired will license Sportech’s Lot.to ilottery solution, which will be used to launch online lottery sales for LEIDSA later this year. 

Alongside the closing of the deal, Inspired and LEIDSA have agreed a ten-year extension to the systems contract, to 9 March 2035.

“This acquisition accelerates our entry into the lottery business, where, as a management team, we have extensive collective experience and long-standing relationships,” Inspired executive chairman Lorne Weil commented. 

“We expect to build on Sportech’s established lottery supply contract to increase our scale and scope within the lottery and gaming ecosystem,” he explained. “We are excited to enhance the value proposition we provide to operators and consumers as we seek to realise on significant opportunities in the sector.”

Weil described LEIDSA as one of Latin America’s largest and most successful lotteries. “Beyond the immediate potential in the Dominican Republic, we anticipate that the lottery systems platform can be further enhanced in order to accelerate the path of our strategic objectives in the worldwide online and retail lottery market,” he added. 

The sale of its lotteries division sees Sportech continue to reshape its business by divesting key assets. Last year it sold its Global Tote business to Australia’s BetMakers, and raffle technology provider Bump 50:50 to Canadian Banknote. 

As a result of this downscaling the company moved its shares from trading on the London Stock Exchange to the Alternative Investment Market in July 2021. Following this, chief executive Richard McGuire and chief financial officer Tom Hearne announced their departures. McGuire replaced by chief operating officer Andrew Lindley, while group financial controller Nicola Rowlands was promoted to CFO. 

Its core business is now its Connecticut-based sports bar and advance-deposit wagering chain, which generated revenue of £11.5m in the six months to 30 June 2021. Income from divested operations took net profit for the period to £24.0m.

Ten of those venues will be able to offer fixed-odds wagering, through a partnership with the Connecticut Lottery Corporation.

MGA cancels Fantasy Sports Interactive’s licence

The business, founded in 2012, provides fantasy sportsbook solutions, allowing operators to offer betting on individual player performances in fantasy games.

Its clients include Intralot, 888, OPAP and Hollywoodbets.

However, the MGA revealed last month (21 December) that the business “has failed to comply with an order issued by the Authority; and […] has failed to pay in a timely manner all amounts due to the Authority”.

This, it noted, was in violation of regulation 9 (1) of Malta’s gaming regulations.

As a result, it is no longer permitted to carry out gaming activities. It must immediately settle any outstanding debts owed to the regulator.

The MGA cancelled a number of other licences this year, including Evobet, CZ Trading and Cyberslotz Services, which all did not pay certain regulatory fees to the MGA, as well as Magic Service Limited, which failed to pay its annual licence fee.

Rush Street Interactive co-founder Carlin steps down

Carlin co-founded RSI in April 2012 and also helped launch the Rush Street Gaming business in January 2005.

Carlin stepped down as chief executive of RSI in August of last year, making way for Richard Schwartz and taking on the new role of vice chairman.

However, RSI said that Carlin resigned from its board and any other offices, committees and positions that he held with effect from December 28, 2021.

Read the full story on iGB North America.

KSA warns operator for advertising odds during football matches

The regulator said that the licensee published odds on Eredivisie.nl during matches, and clicking on these would direct users to its website.

The KSA, however, said that this violated its ban on advertising during broadcasts of live sport.

“This form of advertising is prohibited,” it said. “License holders are not allowed to advertise bets on those matches just before, during or just after sports competitions.

“This is intended to protect people watching the match or checking the results from impulsive participation in a bet.”

As a result, the KSA informed the operator in question that this ad placement was a violation of its rules and ordered it to stop the campaign.

The operator did so, with the KSA noting that follow-up checks showed no promotion of betting during the next round of Eredivisie fixtures.

The operator was one of the 11 granted permission to go live when the Dutch online gambling market opened on 1 October.

Initially, only 10 operators were granted licences as online gambling launched, before an eleventh – JOI Gaming, a division of Dutch land-based casino operator JVH Gaming & Entertainment Group – was given a licence in November.

A number of high-profile operators, however, had their market entry delayed as a result of passively accepting bets from Dutch players. Many of these operators, including Entain, Kindred Group, 888, Betsson, Leovegas and Casumo, agreed to block access to Dutch customers as they pursued licences of their own.

Last month, the KSA also sanctioned a licensed operator that had placed a “misleading” affiliate ad. The operator had advertised its odds on a football news portal, but the regulator said the ad was not clearly labelled as gambling marketing.

In addition, it cracked down on 15 affiliate websites it said were advertising illegal online games of chance to players in the country.

Abios extends its game coverage to include Halo Infinite

Halo Infinite was developed by Microsoft-owned 343 Industries and published by Xbox Game Studios. The full game was released on the 8th of December, although the multiplayer section was launched earlier in tandem with the 20-year anniversary of the Halo franchise. It’s the 6th enactment of the Halo-series, being the third sequel to the Reclaimer Saga. Halo Infinite is the first game in the series with a free-to-play multiplayer mode and had a peak player base of 272,586 players on Steam alone. 

In terms of esports, the game had its first tournament in December 2021. HCS Kickoff Major Raleigh was played between the 17th-20 December, with a prize pool of $250,000 and 267,279 peak viewers. The tournament is the beginning of the 2022 season for the Halo Championship Series, and it will be interesting to see how it develops over the coming year. 

Indeed, interesting times lie ahead for HCS. $3m (£2.21m) has already been committed to the 2022 season prize pool, with additional crowdfunding increasing the prize pool further. 

Tournaments will be held in several regions including North America, Mexico, Europe, Australia and New Zealand, with operators such as ESL and Dreamhack already signed. This has led many top teams to sign up their rosters, including NAVI, Team Liquid and Cloud9. To further the competitive landscape for the game, an additional league will also be created apart from HCS, namely Faceit Pro League, bringing more exciting Halo-content when the world championships aren’t in play. The tournaments will both be streamed on Twitch and Youtube. 

As the game was generally well-received among critics and the first tournament experienced great success, Abios has received numerous requests from customers and partners to include it in its offering. Thus, they’ve started to cover the game. This allows customers to see match and series scores as well as rosters and tournament information, just in time for the 2022 season. New data points are continuously added upon demand. 

Oskar Fröberg, CEO and Founder of Abios

“Having played Halo growing up when it first came out on Xbox, I am thrilled to have sufficient demand from our customers to motivate adding it to our coverage. I sincerely hope that watching Halo’s esports scene unfold will be as exciting as it was playing the original multiplayer maps such as Blood Gulch in split screen.”

About Abios

Abios provides industry-leading esports data and technology for customers all over the globe. They provide data, compliance, odds and widget products for the most popular esports titles including CS:GO, League of Legends, Fortnite and Dota 2.

Arizona sportsbook handle jumps to $486.1m in October

The significant increase in handle, from $291.2m staked between 9 and 30 September, came as Rush Street Interactive joined BetMGM, Caesars, WynnBet, FanDuel, Penn National’s Barstool Sportsbook, Kindred’s Unibet and Churchill Downs’ TwinSpires in the market.

DraftKings, with $151.5m staked during the month, led the market in terms of handle ahead of FanDuel on $120.8m, with BetMGM following in third on $92.1m. 

Online sportsbooks accounted for the vast majority of this total, at $479.3m, with just $6.8m staked through retail outlets. 

Players won back $448.6m of amounts staked, leaving adjusted gross revenue of $36.3m across all licensees. Again DraftKings led the market, with revenue of $11.0m, followed by FanDuel on $9.1m and BetMGM on $7.6m. 

However, heavy spending on promotions cut gross revenue significantly, with operators spending $26.0m on free bets and credits, resulting in taxable gross revenue of $10.4m. This, however, marketed a significant improvement on September, when all online gross revenue was wiped out by promo spend. 

In September, only Caesars and FanDuel, through their retail sportsbooks, posted any taxable revenue (of $392,417.8), though six did so in October. 

This promotional spend upended the running order, with BetMGM, on $2.8m leading the way in terms of revenue, followed closely by FanDuel around $50,000 behind across retail and digital. DraftKings, the biggest promotional spender, fell to third on $2.5m.   

This resulted in tax revenue of $1.0m for the state of Arizona. Retail betting revenue, subject to an 8% tax, brought in $50,867, with a further $971,974 coming from the online sportsbooks.

Bet-at-home shutters Malta business after Austrian casino withdrawal

In October, Bet-at-home announced plans to stop offering online casino in Austria. That decision followed a ruling in an ongoing legal case in the country in which a number of players sought reimbursement for losses incurred with unlicensed operators. Casinos Austria is the only operator licensed to offer online casino in the country.

At the time, Bet-at-home said it was still confident it would eventually win the case, but added it was now unclear how long this would take. As a result, it said, continuing to offer online casino would lead to a “steadily increasing risk potential that appears indefensible overall”.

This has already seen the business announce a restructuring plan in which 65 employees will be laid off, leaving close to 200 remaining employees.

Last month, Bet-at-home’s management and supervisory board then decided it was “not possible for Maltese Bet-at-home.com Entertainment Ltd to continue as a going concern” and therefore must be wound up. The operator noted that the Austrian online casino had been the “main business activity” of the Maltese operation, and without this revenue stream it was no longer able to cover its liabilities.

“Player balances of customers are in no way affected by the winding up of Bet-at-home.com Entertainment,” the operator noted.

In announcing the decision to withdraw its online casino offering from Austria, Bet-at-Home reduced its revenue and earnings expectations for the 2021 calendar year. The business now projects revenue of between €93m and €98m, compared to the €100m-€110m range projected after it published its first-half results in August.

Bet-at-home said that no further impact on its earnings was expected from shuttering the Malta business as its main source of business was already eliminated.

“The winding up of Maltese bet-at-home.com Entertainment Ltd. therefore has no consequences for existing activities, particularly in the key markets of Germany, Austria, the UK and Ireland,” the operator said. “In addition, work is underway to open up new markets to ensure future growth.”

Pennsylvania breaks gaming revenue record in November as betting spikes

The record figure represents a 52.1% increase on the same time in 2020, when revenue came to $284.3m.

Hollywood Casino at Penn National was the biggest contributor to the revenue total, generating $60.1m. Valley Forge Casino Resort was next with $57.1m, followed by Parx Casino with $56.3m. Live! Casino Philadelphia experienced the largest revenue increase from 2020, increasing 6140.1% to $18.4m.

Land-based slots proved to be the most popular form of game with revenue of $185.5m – up 43.2%. Land-based table games contributed $82.9m, while sports betting revenue saw a 70.5% increase in revenue, amounting to $63.7m.

Total igaming revenue for the month came to $93.9m, an increase of 57.1% from November 2020, with Hollywood Casino at Penn National, which operates a DraftKings-branded product as well as its own site, leading the way with $37.4m. Online slot revenue totaled $63.5m while online table game revenue came to $27.7m.

Parx Casino’s slot revenue total of $31.6m was a 14.7% improvement on 2020. Wind Creek Bethlehem recorded $22.6m for slots, while Rivers Casino’s Pittsburgh site came next with $21.1m.

Looking at sports betting, statewide handle amounted to $761.6m, up 55.0%. From this total, operators took in sports betting revenue of $63.7m, also a record high and up 70.% from the same point in 2020.

Valley Forge’s FanDuel-operated sportsbook contributed $242.0m to the handle total, with Hollywood Casino sites at the Meadows – where it operates its Barstool Sportsbook – and at Penn National – a DraftKings partner – adding $217.0m and $76.0m respectively.

Valley Forge led the way in sports betting revenue revenue with $29.1m, followed by the Meadows with $12.0m and Penn National with $7.2m.

Virginia sports betting revenue triples to $29.9m in November

Adjusted gross revenue was more than three times the total recorded in October, but was still slightly below the $31.0m record set in August.

The $29.9m in revenue came on betting handle of $402.6m, down 5.8% from the record $427.3m staked in the prior month.

Player winnings, meanwhile, declined month-on-month 11.9% to $354.3m while bonus and promotional spend dipped to $15.0m from $15.8m in October.

Read the full story on iGB North America