NH sports betting handle up 57.5% to $73.1m in April

Player spending was comfortably ahead of the $46.4m that was bet in the same month last year, but 7.2% lower than the $78.8m wagered during March 2022.

DraftKings’ mobile app accounted for the majority of wagers, with a total of $60.5m bet in April, while the remaining $12.7m was spent at DraftKings-branded retail sportsbooks in Seabrook, Manchester and Dover.

In terms of revenue, this reached $3.4m for the month, which was marginally higher than $3.3m in April of 2021 but 37.7% below $5.3m in March this year.

Some $2.9m of all revenue generated in April came from mobile wagering, while $583,767 was attributed to retail betting.

The New Hampshire Lottery also revealed that the state was able to generate $1.5m in tax from sports betting during the month.

Looking at the financial year to date, player spending for the 10 months to the end of April reached $731.3m, with revenue for the period at $41.1m and tax income $19.1m.

888 launches Sports Illustrated sportsbook in Virginia

Consumers in Virginia will now be able to access the SI Sportsbook and place bets on a wide range of sports competitions including the National Football League, National Basketball Association, Major League Baseball, National Hockey League and NASCAR.

To support the launch, 888 partnered with Virtual Entertainment Partners (VEP), a Virginia-based small, woman-owned, and minority-owned (SWaM) certified company with 100% African American female ownership. 

In collaboration with VEP, 888 committed to making contributions to communities across Virginia, specifically minority communities, to drive meaningful value, opportunity, and diversity for consumers in the state.

888 first launched the SI Sportsbook in Colorado in September last year and plans to roll out the platform in other states in the coming months. 

This came after the operator entered a commercial partnership with Authentic Brands Group, owner of the Sports Illustrated monthly sports magazine, in June 2021.

“We are delighted to launch SI Sportsbook in Virginia. Following the success of its debut launch in Colorado last September, this is an important milestone for both ourselves and our partners,” 888 US president Howard Mittman said.

“With its growing base of sports betting fans, we believe that Virginia will play a significant role in the continued development of SI Sportsbook over the coming months. 

“Expanding further in the US market is an important part of our ambition to become a global online betting and gaming leader, and we look forward to introducing the brand to players across the state.”

Last month, 888 appointed former Bleacher Report chief executive Howard Mittman as the president for its US operations, with responsibility for leading the rollout of the SI Sportsbook.

GC’s questionable prevalence survey figures risk undermining public trust

Research intended to increase public trust in the gambling regulator may just have the opposite effect – and could yet have a distortive impact on the outcome of the Gambling Act Review.

The Gambling Commission’s pilot gambling prevalence survey released this week reports a ‘problem gambling’ rate among adults of 1.3% on the Problem Gambling Severity Index (PSGI). This is far above the 0.375% found by the Health Survey for England in 2018 and the 0.2% for 2021/22 from the Commission’s own Quarterly Telephone Survey. 

The Commission was careful to note at the time of releasing the data that the finding “requires further attention in the experimental phase of the project” and that “the percentage of 1.3% should not be used as an estimate of problem gambling at this stage”.

Dan Waugh of Regulus Partners says that the results are both unsurprising and unlikely to be particularly reliable. 

“The Commission was explicit at the outset of the exercise that the switch from tried and trusted household interviews to an online survey would result in selection bias towards those ‘more likely to be engaged online’ and that this would ‘skew the data’. 

“At the same time, it warned that the shift from Health Survey to gambling-specific survey was likely to attract a disproportionate number of both gamblers and ‘problem gamblers’.”

He adds that the new pilot survey reports “implausible levels of participation in gambling” given that a majority of licensed operators spent the first half of the year being surveyed in Government-imposed lockdown. 

“Overall, the pilot survey provided a national gambling participation rate for 2021 of 63% – or 17% higher than in 2018 when no such lockdown restrictions existed. It suggests for example that 2.5 million people played games of bingo in bingo clubs or that 1.5 million people played table games in casinos. Such estimates are clearly unrealistic and don’t match up against hard data.” 

Waugh notes that there are several other reasons to exercise caution where the pilot survey is concerned. 

These include its very small sample (1,078 – or around 15% of the size of the most recent Health Survey for England) and a response rate of just 21% (compared with 54% for the Health Survey in 2018) – both of which limit the extent to which respondents might be considered representative. 

“Where people are approached to take part in the Health Survey, the orthodox response is to accept; where people were approached to take part in the pilot survey, the orthodox response was to refuse, despite the financial inducement offered,” says Waugh. 

The timing of the release, coming as it does just ahead of the government’s white paper on gambling now rumoured to be slated for late June, is particularly sensitive.

The GB Gambling Commission has stated that the NHS Health Survey remains the ‘gold standard’ when it comes to assessing rates of problem gambling and that the prevalence rates reported in the pilot survey “should not be used as an estimate of problem gambling”.

But such is the fevered atmosphere surrounding the public debate around gambling in Great Britain right now, there is a risk that these warnings may be ignored.

Part of the problem, Waugh observes, is that the publication of prevalence data has become highly politicised, with different interest groups making competing claims in order to support extant agendas: “In general, the industry wants to show low prevalence while public health activists – rather morbidly perhaps – appear to crave high prevalence. 

This may be due in part to the fact that the Commission has threatened punitive action if rates of ‘problem gambling’ are not reduced. It is not difficult to understand the consternation of operators if the regulator suddenly decides to come up with new figures to measure this rather simplistic objective.”

“Surveys however can only ever provide imperfect estimates – one cannot diagnose a gambling disorder or any other mental health disorder by survey. The Gambling Commission and the NHS use surveys to make guesses of prevalence – but some guesses are better informed than others.”

The Health Survey – described by Dr Heather Wardle of the University of Glasgow as “one of the finest survey vehicles we have in this country” – provides the best estimates currently available to us.

The squabbling over prevalence rates is an unedifying waste of resources, says Waugh and presents a test of the Commission’s mettle: “The regulator has said that it wishes to ‘increase public trust and confidence in its statistics’. It therefore has a duty to ensure accurate reporting of the information it releases. If it fails to do so then a project designed to strengthen public trust may in fact have the opposite result.”

Waugh warns that the potential impact on public trust goes much further than gambling. “If, as some people appear to believe, this small-sample pilot survey shows that the Health Survey underestimated rates of ‘problem gambling’, we are forced to ask what else might the NHS have got wrong? 

“Suggestions that the Health Survey might be quite so inaccurate is likely to call into question just how gilt-edged it is as an instrument of health research in this country.” 

Scott Longley has been a journalist since the early noughties covering personal finance, sport and gambling. He has worked for a number of publications including Investment Week, Bloomberg Money, Football First, eGaming Review and Gambling Compliance.

iGaming Dashboard – May 2022

The graphs below show how total global gambling gross win for igaming has grown since 2003 and is set to evolve between now and 2027. Geographical breakdowns provide an overview of revenue levels for key regions around the world. Scan over the keys underneath the chart to highlight specific elements.

H2 projects that the remote channel will break the €100bn mark this year (see Chart 1) and continue growing at a CAGR of 11% over the next five years to hit €173bn by 2026. Sports betting is estimated to account for 30% of the total in 2022, ahead of casino with 27% and race betting on 23%.

Chart 2 shows how global online sports betting revenues are predicted to grow at a CAGR of 9.9% over the next five years to €86.8bn, with pre-match activity generating the bulk of this at €56.9bn. In-play revenue is however expected to grow at a CAGR of 13.4% vs. 8.2% for pre-match to grow its share of total global online betting revenues from 29% to 35%.

Digital acceleration during the Covid-19 pandemic has put igaming on track to account for more than 30% of the global gambling market by 2027 (Chart 3). In 2019, its share stood at just 14.3%.

Europe is projected to account for 46% of global revenues from the digital channel in 2022, followed by Asia/ME with 26% of the total (Chart 4). North America is however the region projected to grow most strongly over the next five years at a CAGR of 20.8% to account for €46.6bn of the €173.4bn global market, increasing its share from 18% of gross win in 2022 to 27% by 2027.

H2 Gambling Capital is the gambling industry’s leading consulting, market intelligence and data team. The company has a track record of 20 years focused on the global gambling industry, its projections have been influential in shaping legislators’  and investors’ views of the gambling sector across the globe.

STS net gaming revenue hits record high in Q1

Despite the increase in gross gaming revenue, STS’s gambling and lottery tax bill declined by 3.1% to PLN123.6m.

As a result, net gaming revenue for the quarter – which excludes gambling taxes – came to PLN158m, up 15% year-on-year and a new record for the business.

This came despite a decline in player stakes, by 3.9% to PLN1.08bn. The number of active players also declined, from 359,000 to 338,000, with 41,000 first-time depositors and 64,000 registrations.

Mateusz Juroszek, president of the management board of STS Holding, said this was mainly because the business will focus its customer acquisition efforts later in 2022.

“It is worth noting that this year, increased acquisition and activity of players will occur during the second half of the year due to how sports events are scheduled, including the World Cup in Qatar, where our national team will also be playing,” he said.

After adjusting for PLN16.2m in bonuses, the business was left with PLN142.6m in revenue, up 13.6%.

However, expenses also rose. External services were the largest expense, at PLN45m, up 12.7%, while employee payroll expenses grew by 11.3% to PLN23m.

Consumption of materials and energy led to an additional PLN2m in expenses, up by 4.0%, while other miscellaneous costs were down by 53.0% to PLN310,000.

As a result, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) also grew to PLN72m, a 17.0% increase.

The business’ capital expenditures came to PLN8m, leading to PLN64m of free cash flow, up 8.5%.

After including depreciation and amortisation, the business made an operating profit of PLN61.4m, up 13.5%.

The business then made a small net profit on financial items, leading to a pre-tax profit of PLN61.9m, up 10.0%.

After PLN14.4m in tax, STS was left with a net profit of PLN47.4m, up 7.0%.

“Throughout the first three months of 2022, despite the war and inflation, we were able to achieve excellent operational and financial performance,” Juroszek said.“During that period, adjusted EBITDA increased by 17% year-on-year.

“As declared, we will be sharing the generated profit with shareholders of STS Holding.

STS noted that the profitable quarter meant it now had PLN305m in reserve capital, including PLN185m in cash and cash equivalents.

STS went public last year through a December initial public offering. A total of 46,874,998 shares went live at a price of PLN23.00 (£4.26/€4.99/$5.62), representing an overall value of PLN1.1bn and accounting for 30% of the entire share capital in STS.

In 2021, the business said it set new records for stakes and active users.

Rivalry revenue and handle hit record highs again in Q1

Rivalry co-founder and CEO Steven Salz noted that this also meant the business continued its streak of revenue at least doubling year-on-year for every quarter since launching.

“We are pleased to report the highest betting handle and quarterly revenue in company history,” Salz said. “These results are a testament to the consistency Rivalry has delivered for over two years now, demonstrating triple-digit year-over-year growth in every quarter.”

The business’ costs of revenues also increased rapidly, however, by 198.2% to CAD$4.1m.

A a result, gross profit came to CAD$682,230, up 25.8%.

Operating expenses, meanwhile, were also up, by 155.5% to CAD$7.2m.

Marketing, advertising and promotion costs were the largest expense, growing by 370.1% to $3.1m. General and administrative costs, meanwhile, grew by 173.4% to $2.5m.

Share-based compensation skyrocketed, from CAD$26,287 in Q1 of 2021 to CAD$1.2m in Q1 of 2022.

As a result, the business made an operating loss of CAD$6.6m. This compared to a CAD$2.3m operating loss a year earlier.

After accounting for exchange rate differences, Rivalry’s total comprehensive loss was CAD$7.4m, almost exactly triple the loss made in Q1 of 2021.

After the end of the quarter, Rivalry launched in Ontario having received a licence before the market launched on 4 April, and then also launched in Australia earlier this month.

“We note that first quarter figures represent organic growth in our existing markets and do not include any results from our two new regulated markets, Ontario and Australia, both of which launched in the second quarter,” Salz said.

In 2021, Rivalry’s revenue grew by 640.0% year-on-year to $11.1m.

theScore launches Bet Mode Responsibly campaign

Bet Mode Responsibly builds on theScore’s existing Bet Mode marketing campaign. Like the original Bet Mode campaign, it features appearances from comedian Susie Essman, actor Rex Lee and television personality Gerry Dee.

In addition, it will introduce theScore Bet’s “Smarter Betting Hotline,” at 1-888-SCOR-BET, which is live now.

“Responsible gaming and player education is embedded into our entire operation and it was important to us to roll out a dedicated RG campaign in connection with our Ontario launch,” said Aubrey Levy, senior vice president for marketing and content at theScore. “While helping those with gambling problems is a core component of a responsible gaming program, RG is also about educating the market at large on how to keep gaming fun and playing responsibly.

Levy added that the business was determined to present an engaging message to promote responsible gambling that differed from existing campaigns.

“As with our overall campaign, we wanted to deliver that message in a way that is authentic and engaging, resulting in this campaign taking a different approach from the more traditional RG communications people are used to seeing,” he said. 

“Utilizing our well-known Bet Mode characters, we’re aiming to promote RG and player education in an interactive and entertaining way. We applaud the AGCO and iGO for making responsible gaming a cornerstone of Ontario’s regulated market and we intend to be at the forefront of RG education and promotion in our home province.”

The campaign was built with input from the Responsible Gambling Council (RGC) and National Council on Problem Gambling (NCPG).

“RGC commends theScore Bet’s commitment to responsible gambling and supporting player education,” Responsible Gambling Council CEO Shelley White said. Through this campaign theScore Bet is highlighting the importance of using safer play strategies in an innovative way.”

Dutch regulator warns affiliates with threat of penalties

The KSA said it recognised that gambling operators often use affiliate websites to advertise their offering, with users able to click banner adverts or links in text to visit sites.

However, the KSA said that this method does not always comply with advertising rules in the Netherlands and wrote to affiliates urging them to ensure their websites are compliant with national law.

In the letter, the KSA said affiliates may only advertise gambling sites run by operators that hold a licence to offer online games of chance in the country. 

Should an affiliate advertise an unlicensed operator’s website, then the KSA could regulatory action, including issuing the affiliate with a financial penalty.

Advertising is permitted for licensed operators, but the KSA said affiliates should ensure any adverts are in line with regulations. These rules include that adverts should not be targeted at minors or young adults under the age of 24, while all adverts should be clear as to which operator they are promoting.

“Affiliate websites can make an important contribution to better advertising compliance by gambling companies,” the KSA said. “This is why the KSA calls in these websites to account for their social responsibility. Consumers can be protected even better in this way.”

The news comes after Dutch Minister for Legal Protection Franc Weerwind last week said the KSA had launched an investigation into how operators advertise to players aged between 18 and 24.

Weerwind responded to questions from Socialist Party MP Michael van Nispen and ChristenUnie MP Mirjam Bikker about bonuses and the licensing process in the country.

When asked about the “hefty” welcome bonuses being offered to players, and how this fit in with the ban on bonuses for players aged 18 to 24, Weerwind revealed that regulator de Kansspelautoriteit was looking into the advertising practices of operators in regard to younger customers, though he also noted that bonuses can be a useful tool if used responsibly.

Greece raises online casino stake cap to €20

The country brought in a €2 stake limit for any games that use a random number generator in a set of rules that became law in 2019. During drafting of these laws, the government had previously considered banning random number generator games entirely.

However, a new law published in the country’s official gazette raises that cap to €20.

The maximum winnings from any type of game, meanwhile, has been raised from €70,000 to €140,000.

Finally, the new law also lowers the minimum amount of time that can take place between two “game rounds”, such as slot spins, from three seconds to two.

All of the changes came into effect from their publication in the official gazette, on 20 May.

The first licences under the new Greek regime were issued last year, after the process to apply for these licences opened in October 2020. Betsson, Bet365 and Play’n Go were among the first licensees.

FanDuel names Sheh as new CTO

In his new role, Sheh will be responsible for the oversight of FanDuel’s customer-facing engineering and platform development teams, as well as all IT architecture and personnel.

Sheh brings more than 20 years of experience to FanDuel, having most recent served as senior vice president of engineering at real estate technology brokerage business Compass.

Prior to this, Sheh was chief technology officer at real estate technology group Remine and also had a spell as product director at IT services and consulting business CEB.

Sheh also spent time as technical lead at software developer Palantir Technologies and senior member of technical staff for space satellite programs at defence and space manufacturing business Sandia National Laboratories.

“There is no faster growing and more competitive space in tech than mobile gaming,” Sheh, said. “It is a sector that requires the most innovative solutions to differentiate FanDuel from the competition and I am excited to build FanDuel into the leading gaming platform in the world.” 

FanDuel president and chief executive Amy Howe added: “FanDuel’s consistent focus on technology that drives innovation has been the fuel to our industry leading performance.

“I am confident that Andrew has the experience and vision to help us continue to extend that advantage into the future.”

The appointment comes after FanDuel earlier this month also named former PokerStars director Asaf Noifeld as its first managing director of casino. In the newly created role, Noifeld assumes responsibility for the oversight of the FanDuel online casino business.