Month: January 2024

Flutter Entertainment’s AGM is scheduled to take place on 1 May 2024, with Flint expected to step down from the board at the conclusion of the meeting.

Flint joined the board in March 2020 following the merger of Flutter Entertainment and The Stars Group Inc (TSG).

He formerly served as executive chair of Sky Betting & Gaming, until October 2019, having previously held the position of chief executive officer for 10 years until the company was acquired by TSG in 2018. 

Commenting on the board changes, chair of the group John Bryant said:

“The board wish to thank Richard for the considerable value and strategic insights he has brought to Flutter during his tenure and acknowledge his tremendous contribution to the development of the Sky Bet business since its inception in 2001. We wish him success in the future.”

Flint exits with Flutter “leading the race” in UK

Flint’s decision to step down comes with Flutter looking to get ahead of the curve in regards to the UK’s white paper, released in April 2023.

Chief executive Peter Jackson believes Flutter has done exactly that, stating: “We’ve been pretty clear that we’re leading the race from the UK perspective.

“We got ahead of the changes and others are catching up, which would infer we’re ahead. The team are executing very well in the UK.”

Jackson made the claims on Flutter’s Q3 earnings call in November.

In Flutter’s Q3 results, UK & Ireland revenue was up 11.2% to £566m (€657.8m/$721.4m). Online revenue in the region grew 11.5% to £494m, while retail edged up by 9.1% to £72m.

Dublin-based Flutter also said ongoing US growth was its main driver. Group revenue increased 7.6% year-on-year to £2.04bn.

Flutter’s US success despite changes

Flint’s departure in early 2024 follows the trend of personnel changes on Flutter’s board in 2023.

Group chief operating officer Jonathan Hill stepped down from the company’s board in April. John Bryant then replaced the outgoing Gary McGann as chair in September.

Mary Turner also left the company during the same month, departing her role as non-executive director. Turner’s role as chair of the workforce engagement committee also came to an end.

In spite of the upheaval at the company, Flutter-owned FanDuel ensured the company achieved impressive growth in Q3 2023.

Acquired in May 2018, when still a daily fantasy sports operator, FanDuel has grown into a leading provider of sports betting and online casino in the US.

FanDuel is now Flutter’s main revenue generator. US revenue reached £668m in Q3, up 11.7% and over £100m more than the next highest contributor – Flutter’s UK and Ireland business.

The initiative will be funded by a Series M subscription agreement. Genting Empire Resorts has agreed to subscribe for up to $100m worth of Series M preferred stock of empire.

Empire Resorts will use proceeds from the subscription working capital purposes. Funds will also pay off an existing bank facility of approximately $58m.

Stock can be converted on or after 31 December 2030. The Series M stock will mature on 31 December 2038.

New York focus for Genting Empire Resorts

Empire Resorts owns the Resorts World Catskills casino and Resorts World Hudson Valley gaming facility, both located in New York. It has also offered mobile sports wagering in the state since March 2022.

Resorts World Las Vegas, which opened in June 2021, is operated by a separate arm of the Genting Group. 

“The proposed equity injection will enable Empire to further optimise its capital structure by reducing financial leverage and correspondingly interest expense,” GENM said. 

“In addition, this will allow quicker ramp up for Resorts World Hudson Valley and enable Empire to continue its focus on strengthening Resorts World Catskills’ operating performance to realise its full potential.

“The proposed equity injection will also allow GENM to reinforce its position and grow its market presence in the expanding New York State gaming market to compete effectively in the north-eastern US region. Resorts World Catskills will also be able to continue benefitting from the operating synergies with Resorts World New York City.”

Resorts World Genting reaches for the sky

The proposal comes on the back of a multibillion dollar makeover at Resorts World Genting.

The facility stretches across an area measuring 1.2 million metres, with gaming forming a key part of the site. This includes SkyCasino which, opened in 2017, has 70% of the resort’s 600 gaming tables, 2,000 slots and 1,300 electronic gaming terminals.

Top games are baccarat, roulette and sic bo, with betting on totals and combinations from three dice. 

Lasst month iGB Asia editor at large, Muhammad Cohen, covered the revamp in an in-depth article on iGB.

VAD works with the Flemish government and acts as an umbrella group for over 70 substance and addiction groups. The organisation is calling for the minimum gambling age to increase, in a memorandum out this week.

As well as gambling, the document details nine of VAD’s priorities for policies on alcohol, psychoactive medication, video games and illegal drugs.

Need for “consistent legislation”

In reference to both gambling and alcohol, the memorandum calls for stopping access to both by looking at three “cost-effective measures in legislation”. These are: price increases; advert bans; and limiting availability.

According to VAD, limiting availability includes raising the minimum age for gambling to 21 and the purchase of alcohol to 18.

Currently, Belgians cannot gamble with casinos and slot machines – both online and retail – until the age of 21. However, the minimum age to place online or retail bets is 18.

VAD said that limiting access to gambling and alcohol could also help to protect people in vulnerable situations.

Developments in care for Belgian gamblers

This is the latest move to address Belgium’s gambling market. In November last year, the Belgian Association of Gaming Operators (BAGO) created a self-imposed mandate for a duty of care.

BAGO represents six of the market’s most popular operators, accounting for 70% of Belgium’s gambling sector. These are Ardent Group, Betfirst, Golden Palace, Kindred, Napoléon Sports & Casinos and Starcasino.

The duty of care mandate saw the operators commit to measures to monitor problem gambling within their customer base. These include a uniform detection system, player communication and staff training.

The duty of care was created in response to BAGO stating that it had been “demonised” by the political sector in Belgium. In an interview with L’Echo Emmanuel Mewissen, vice-president of BAGO, said attempts had been made to “discredit” Belgium’s gambling market.

Operators applying for a sports betting licence in North Carolina must send over proposed controls by this date. The North Carolina State Lottery said this helps ensure the applicant is ready to launch on the market’s opening day.

The deadline was set during a Commission meeting staged yesterday (10 January). During the same meeting, the Commission approved processes and document advising applicants on submitting internal controls for approval.

Each licensed operator must receive approval of internal controls before offering bets in North Carolina. 

Uncertainty remains over opening date

North Carolina is yet to set a launch date for legal sports betting, although it is expected to be in March 2024. Commission chair Ripley Rand previously said this will mainly hinge on how long the licence application process takes.

The Commission will need to review all applications and supporting information. It must also complete background checks and analyse internal control details before it can set a launch date.

The Commission is currently reviewing the applications of nine prospective operators. The application process launched at the start of December after governor Roy Cooper signed House Bill 347 into law in June.

Final decision due on sports betting rules

Uncertainty also remains over sports betting rules in North Carolina. The Commission is yet to finalise these rules, though some measures were set out in the bill signed off last year.

These include bets being allowed across college sports, esports and other sports matches authorised by the Commission. Tax will be set at 18% of each licence-holder’s gross gaming revenue. 

There is also a stipulation whereby operators must have a written designation agreement with a sports team, league or venue in order to launch sports betting.

Among those seeking a licence is BetMGM, which has struck a market access agreement with Charlotte Motor Speedway. Located in Concord, North Carolina, the complex regularly hosts stock-car racing series Nascar.

Upon announcing this arrangement, BetMGM said that it hoped the North Carolina market would open before the end of Q1.

Also preparing to launch in the state is DraftKings, which will partner with Nascar. The deal makes DraftKings the exclusive daily fantasy sports partner of Nascar in the US and Canada. 

DraftKings will also be an authorised gaming operator of Nascar and benefit from additional sponsorship benefits across the series.

Fanatics Betting and Gaming has also began its market entry process, entering into a long-term partnership agreement with NHL’s Carolina Hurricanes. This will see Fanatics become the team’s Official Sports Betting Partner.

The partnership gives Fanatics Sportsbook access to the North Carolina market for mobile sports betting, as well as, the opportunity to put a retail sportsbook at PNC Arena.

Commission approves testing laboratories 

In other news, the Commission has given its approval to two independent test laboratories to work with companies in North Carolina. 

Gaming Laboratories International (GLI) and BMM Testlabs can evaluate gaming equipment, software, and processes for compliance with state law and Commission rules

The Commission is still accepting submissions from other entities that would like to serve as an independent testing laboratory.

Both ballots would give tribes exclusive rights to offer retail and online sports betting in California. They were filed with the state’s attorney-general in October 2023.

The two ballots name Reeve Collins, co-founder and CEO of Pala Interactive, as the contact for media inquiries. Pala Interactive was founded by the Pala Band of Mission Indians in 2013. It was acquired by Boyd Gaming in November 2022.

Authors of the ballots have been seeking financial support for signature gathering from sports betting operators. However, SBA members – BetMGM, DraftKings, FanDuel and Fanatics Sportsbooks – have said they will not provide funding.

SBA blasts proposed ballots

SBA spokesperson Nathan Click says this is in line with the organisation’s opposition to the measures.

“In the interest of clarity, and consistent with our previously stated opposition to these measures, we can commit that SBA won’t be funding or otherwise supporting either of these sports wagering initiatives,” Click said. “Without significant and widespread tribal support this initiative fails and sets back productive conversations for several years. 

“Further, this initiative is constructed to prevent the market from reaching anything close to its potential to the detriment of all stakeholders — commercial operators, Californians, gaming and Revenue Sharing Trust Fund tribes- – while enabling the unregulated illegal market to continue to thrive. 

“Finally, the original premise of building a business based off customers acquired illegally through offshore operations falls significantly short of the regulatory standards to which our membership adheres.”

What are the ballots proposing in California? 

The first version of one ballot, entitled The Sports Wagering Regulation and Tribal Gaming Protection Act, set out detail proposals.  These included tribes submitting 15% of adjusted sports betting gross gaming revenue (GGR) into a tribal wagering revenue sharing trust fund.

Tribes would also contribute 10% of their adjusted sports wagering GGR into the California homelessness and mental health fund. In addition, tribes would need to partner sports betting operators, which would operate as vendors. 

The initial version was amended in December in an effort to gain tribal support. Changes include that sports wagering could not launch until 1 July 2025. This is slightly earlier than the originally proposed date of 1 September 2025.

Tribes receiving approximately $1.0m (£786,254/€913,395) yearly under current conditions would receive an estimated 15-20 times more under the proposed measures.

Sports betting GGR contributions to the tribal wagering revenue sharing trust fund increased from 15% to 25%. In addition, a requirement for in-person online gambling registration for those outside of a 10-mile radius from a casino will be removed after two years.

Details are sparse on the other ballot proposal, entitled The Tribal Gaming Protection Act. It outlines that sports betting will be offered exclusively through tribes in California.

What can we expect next?

The SBA declaration will come as another blow to ballot backers, with many tribes and other operators have also stated their opposition to the measures.

When the ballots were first published, it was stated Pala Interactive had 180 days to gather the required signatures through random sample.  

Backers would need 874,641 for the ballot to be put forward for consideration with voters. Election officials would also need to verify at least 500 signatures. The 2024 election will take place on 5 November.

The ballots are the latest effort to legalise sports wagering in some form in California. In November 2022, voters rejected sports betting proposals – despite a poll in February 2022 revealing some support for legal sports betting. 

In May 2022, it was confirmed a proposition would feature on the ballot. This was to sit alongside another sports betting initiative backed by tribal gaming groups entitled the Tribal Sports Wagering Act Initiative.

However, Democrats in California recommended voters vote against the proposals. Both proposals appeared on the ballot but were ultimately rejected by voters.

Simmonds had been the BGC chair since its inception in 2019, overseeing attempts to represent the UK’s gambling industry.

She will be replaced by Michael Dugher, who will leave his role as the body’s chief executive, on 21 April. The BGC stated the search for a new chief executive will begin “shortly”.

In a statement, Simmonds said: “It has been a privilege to play my part in the development of the BGC since its formation in 2019 and it has been an honour to represent the 110,000 people whose jobs rely on the regulated betting and gaming industry.

“I have thoroughly enjoyed working with our members, large and small, to raise standards, create a culture of safer gaming and build public and institutional trust in our world class industry.

“I would like to thank the Executive Committee, colleagues, members, charities and stakeholders, who have supported me and worked very hard to deliver all of the achievements of which the BGC is rightly proud.”

Dugher to oversee white paper transition

Upon taking over from Simmonds, Dugher will be tasked with overseeing the implementation of the white paper. Released in April 2023, the white paper outlined how gambling should be regulated in the UK.

The Council broadly backed the government’s gambling white paper, particularly in relation to casino reform. The white paper includes proposals on affordability checks, sports betting and machine numbers.

However, in November 2023 the BGC accused the UK government of launching a “stealth tax raid” on casinos. It is estimated that it could cost the industry £5m (€5.8m/$6.4m) per year.

It also noted that casinos contribute £300m annually in taxes. Across the entire economy, the sector provides an estimated £800m a year in gross value. Dugher himself has stated that the “stealth tax” could slow recovery and hamper future growth.

After the culture, media and sport committee (CMS) called for a reduction in visible gambling advertising in stadiums, the BGC praised the rejection of a blanket ban that some had called for.

The BGC also urged for a code on sport sponsorship to be “published without delay” to “drive up standards”.

BGC under fire from some quarters

Despite its role in representing the gambling industry, not all of the BGC’s work has been well-received.

In an article for iGB, industry expert Jon Bruford argued the BGC is instead further polarising the two opposing sides. Bruford questioned whether the body is fit for purpose.

Bruford claimed the BGC exists only “for its own luxury”, before criticising the BGC’s lack of action on advertising within sports stadia in a separate article.

Meanwhile, the BGC had to defend Dugher in August, after the then-chief executive cited Samaritans advice that “suicide is complex” when giving evidence to the Culture, Media and Sport Select Committee on gambling in July 2023.

Responding to the Samaritans complaint, the BGC denied that Dugher attempted to “manipulate guidance”, describing the accusations as “a smear”.  

The National Ordinance for Games of Chance (LOK) entered the market’s parliament for approval in December. The LOK will overhaul how gambling is regulated in Curaçao.

Currently, Curaçao operates under the existing National Ordinance on Offshore Games of Hazard (NOOGH) legislation.

In a statement released today (11 January), Silvania acknowledged that the LOK’s submission to parliament would naturally generate “wider debate”. However, he made two clarifications regarding the legislative process. The first was the spreading of misinformation, which he warned against.

“First, amidst this entire process we have been all too aware of a significant amount of misinformation, confusion and accuracy, and I strongly urge against the further propagation of unverified rumours or speculation,” said Silvania.

“Full and accurate information can only be guaranteed when issued by either the Ministry [of Finance] itself or the Curaçao Gaming Control Board.”

Ongoing licensing process and milestones

Silvania also confirmed that the current licence issuing process under the NOOGH remains in place.

“Second, and crucially, I would like to clarify that the current process of licence issuance by the GCB under the current legislation remains unchanged meaning that the Critical Milestones published on 20th December 2023 are likewise unaltered,” he continued.

The minister concluded by stating his support for the GCB during the transition.

“The GCB is acting on delegated authority from the Minister in this regard and is fully committed to this process in advance of and until the enactment of the LOK, whenever that may transpire, and the GCB has my full support during this period of transition,” he assured. “To suggest otherwise would be reckless and misleading.”

The Critical Milestones document detailed the Ministry’s process for transitioning from the current framework to the LOK.

A key date in the process is 31 March 2024. From this date, the registration of sub-licences on the GCB portal – and the subsequent application for a direct licence under the NOOGH, if required – will no longer be possible. In addition, no new extensions or renewals of Master Licences will take place after this date.

Renewal of licences

The GCB has also renewed all gambling licences in Curaçao, with the first renewal ceasing in August 2025. The final one will be renewed in January 2025.

From 1 January 2024, licence holders were permitted to begin displaying a Digital Seal on their websites. The GCB, which issues the Digital Seals, will release a dedicated policy on them in the future.

The GCB kicked off the application process for operators on 1 September 2023 by opening its online portal. The portal began accepting account registrations for applicants and sub-licence holders on 1 November.

Slots were by far the primary source of revenue for the Detroit land-based casinos in 2023. Aggregate revenue from slots reached $984.1m, marginally higher than $983.7m in the previous year.

However, table games revenue was 12.7% lower at $238.7m. Retail sports betting qualified adjusted gross receipts (QAGR) also declined 25.7% to $14.0m.

Slots accounted for 80.0% of all revenue in Detroit during 2023. Tables games’ share stood at 19.0% and sports betting the over 1.0%.

MGM remains clear leader in Detroit

Breaking down performance by each casino, MGM Grand Detroit was again led the way with a 46.0% market share. 

MGM posted $564.0m in combined slots and table games revenue, down 6.0%. The casino also reported $2.3m in sports betting QAGR.

Placing second was MotorCity Detroit with a 31.0% share. Slots and table games revenue fell 5.8% to $373.6m, with sports betting QAGR at $5.0m.

Rounding off Detroit’s market was the Hollywood Casino at Greektown with a 23.0% share. Revenue from slots and table games increased to $285.2m, while sports wagering QAGR amounted to $5.0m. 

The three Detroit casinos paid the state $99.0min wagering taxes for slots and table games. A further $528,314 was paid in wagering taxes for retail sports betting.

December revenue rises 5.7% year-on-year

Turning to the final month of the year, total market revenue in December was up by 5.7% to $116.2m.

Table and slots revenue climbed 2.9% year-on-year to $111.4m. This was also 46.6% ahead of $76.0m in November 2023.

Sports betting QAGR rocketed 200.0% from $1.6m in December 2022 to $4.8m, with this also 54.8% more than $3.1m in November. Detroit players spent a total of $30.4m betting on sports at retail facilities during month.

MGM had a 44.0% market share in December, with MotorCity at 32.0% and the Hollywood Casino 24.0%. 

Slots and table games revenue at MGM fell 0.7% to $50.6m, with sports betting QAGR at $291,171. MotorCity said slots and table games revenue was 5.1% higher at $34.7m and also posted $2.3m in sports betting QAGR.

Finally, Hollywood Casino reported a 7.5% rise in slots and table games revenue to $26.1m, plus $2.2m in sports betting QAGR.

During December, the three Detroit casinos paid $9.0m in gaming taxes to the state. They also reported $13.8m in wagering taxes and development agreement payments to the City of Detroit.

An additional $180,822 was paid in gaming taxes to the state in relation to sports betting. In addition, some $221,005 in wagering taxes was submitted the City of Detroit based sports betting revenue.

In line with the ruling, Rush Gaming must halt all activities being conducted under its Malta licence. Rush Gaming operates both the Fansbet.com and Onebet.com websites.

The MGA did not go into full detail on the reasons behind the decision. However, it did state that licences can be suspended if operators breach gambling-specific regulations or laws in Malta.

The regulator also said existing customers of Rush Gaming must be allowed access to their accounts during the suspension. In addition, the MGA said Rush Gaming should return all funds to registered players.

Rush Gaming’s B2C gaming licence covers several gambling activities. These include casino, controlled skill games and fixed-odds betting such as live betting.

Mizzi takes the lead at Malta Gaming Authority 

The ruling comes ahead of Charles Mizzi taking over as CEO of the MGA later this month. 

Mizzi is replacing Carl Brincat with effect from 26 January. Brincat will step down after two years at the helm.

Mizzi joins the MGA from Residency Malta Agency, where he served as its CEO for five years. He also held other senior roles during his career including head of the image and communications unit at BNF Bank.

In other news, the MGA recently renewed its Memorandum of Understanding with the Alderney Gambling Control Commission (AGCC).

Established in 2013, the agreement ensures continued collaborative efforts between the two regulators.

The partnership focuses on enhancing cooperation, enabling the MGA and AGCC to perform their respective functions more effectively. These include preventing crime, protecting consumers and the protection of vulnerable persons against gambling addiction.

The Commission said it identified the failings at Gamesys during a compliance assessment in May 2022. The regulator added that the fine related to activity between November 2021 and July 2022.

Ballys Corporation-owned Gamesys operates 16 sites in the UK including Ballycasino.co.uk, Doublebubblebingo.com, Jackpotjoy.com and Megawayscasino.com. Alongside the fine, it will undergo a third-party audit to ensure it is effectively implementing AML and safer gambling policies.

“Our focus as a regulator is to ensure that operators are employing policies and procedures which make gambling fair, safe and crime-free,” the Commission’s executive director of operations, Kay Roberts, said. 

“We take this responsibility extremely seriously. Whenever we find failures in policies and procedures then the business can expect significant regulatory action.”

Gamesys blasted over social responsibility failures

Announcing the fine, the Commission also set out some of the incidents noted at Gamesys during the investigation. In terms of social responsibility failures, these included not always identifying customers at risk of experiencing harms associated with gambling. 

There was an inappropriate reliance on checks which indicate whether a customer had a historical individual voluntary arrangement or been bankrupt or insolvent as a sign of gambling harm.

The Commission also referenced a system of deposit limits which, for some customers, did not identify risks of harm. For example, no risks were identified when one player deposited £8,255 within three days of opening an account. Another customer lost £5,968 within five weeks of opening account and another lost £17,482 within 34 days.

Other social responsibility failures included not always interacting with customers who may be at risk of, or are experiencing, gambling harms. An example of this was carrying out one responsible gambling interaction with a consumer who lost £19,709 over five months.

In another instance, Gamesys only contacted a player after they lost almost £10,000. In the same case, ‘responsible gambling interaction’ involved the recommendation of new games and promotions. 

Also related to social responsibility, the Commission criticised Gamesys for not always recording sufficient detail regarding interactions, considerations, and rationale for decisions. This is despite this being specified in the Licensee’s responsible gambling procedures.

Concerns raised over AML failings

Turning to AML, the Commission also noted several failures. These included some customers evading certain AML triggers/thresholds and spending significant sums without AML checks being conducted. One player deposited £14,585 in 28 weeks, another £18,884 in six months and a third £34,280 in five-and-a-half months.

The Commission also flagged Gamesys for inadequate customer due diligence and over-reliance on third-party information or the customer’s verbal assurances. One user deposited over £25,000 in three months, another £58,000 in six months, and another over £65,000 in six months.

In addition, the regulator hit out at Gamesys’ reinvestment of winnings policy. It said this was insufficient to mitigate the risk deposited funds could be from illegitimate sources and not previous winnings.

Commission sets out specific breaches at Gamesys

Ruling on the case, the Commission published a breakdown of specific breaches of licence conditions.

These included paragraph two of licence condition 12.1.1 AML on the prevention of money laundering and terrorist financing. It also referenced paragraph one of licence condition 12.1.2 AML for measures for operators based in foreign jurisdictions.

The Commission also said Gamesys did not comply with paragraphs one and two of Social Responsibility Code of Practice (SRCP) 3.4.1 on customer interaction. In addition, the regulator highlighted non-adherence to Ordinary Code Provision (OCP) 2.1.1 AML on Commission guidance for remote and non-remote casinos.  

These failing led to the £6.0m fine and an additional condition to Gamesys’ operating licence in the UK. The Commission noted Gamesys co-operated throughout the investigation and advised that it had taken corrective steps.  

In addition, the regulator said it found no evidence of criminal monies being deposited by the specific customers looked at during its review.