Month: January 2024

Senate Bill 172 was submitted in Georgia in February last year by State Senator Bill Cowsert. It went up against a rival bill, HB 380, that also sought to regulate and legalise sports betting in the state.

The bill made it as far as a third reading in the Senate. It was shelved in August but has now returned as sponsors seek to push through the bill and launch legal wagering.

The latest version of SB 172 is very much unchanged in its core goal. Measures set out in the bill are near enough identical to last year’s version, with proposals covering matters such as licence fees and tax.

No limit on licences issued in Georgia 

SB 172 comprises several licence types, with each having different fees. The Georgia Sports Betting Commission would oversee the awarding of licences. 

A type one sports betting licence covers wagering through an online sports betting provider. This would command an application fee of $100,000 (£78,544/€91,328) and an annual fee of $1.0m.

For physical betting, this requires a type two sports betting retail licence. This comes with an application fee of $500 and an annual $1,000 renewal cost. 

Also in relation to retail betting is a type two sports betting distributor licence for supplying self-service betting terminals. In addition, a type two sports betting platform licence allows holders to offer retail sports betting on behalf of retail licensees.

The bill states that there will be no limit on the number of licences offered and issued to operators. However, the Commission will issue a minimum of six type one licences and five type two permits.

Georgia sports betting tax rate to be decided

If licensees breach any rules or regulations decided by the Commission – such as allowing minors to place bets – the Commission has the power to suspend or revoke licences or impose an administrative fine up to $25,000 per breach.

All licensees would be required to pay tax. While there is no specific information on the tax rate operators and partners would be subject to, the bill outlines that an annual privilege tax will be imposed on adjusted gross income derived from online sports betting.

This consists of 25% of the adjusted gross income from parlay bets, proposition bets and live betting wagers and 20% of adjusted gross income from all other sports betting wagers. This will be paid monthly by type one sports betting licensees.

Should the bill pass into law, it would come into effect on 1 January 2025.

The research revealed a rise in players who had self-excluded on GAMSTOP being targeted by the black market. The number of illegal operators was also found to have increased “fourfold” between 2021 and 2022. That number doubled again to 231 during 2023. In total, more than 1,000 affiliates helped to publicise illegal operators.

According to Yield Sec, this means that illegal gambling now makes up 4% of the UK’s online gambling market share and gross gaming revenue (GGR). This results in a significant drop in tax revenue, as well as funding for responsible gambling initiatives such as GAMSTOP.

The data showed illegal operators were disregarding “mainstream customers”. Yield Sec instead stated they were targeting vulnerable demographics, such as self-excluded players and children.

Yield Sec also found thousands of Google searches bidding to aid the avoidance of self-exclusion. By January 2024, Yield Sec detected millions of “not on GAMSTOP” and other similar Google search results. This allows vulnerable gamblers to bypass self-exclusion strategies with legal operators.

As a result, at-risk players are falling through the “trap door” of looking to bet with illegal and potentially dangerous operators, who are not monitored by tools such as Yield Sec and GAMSTOP.

Commenting, Ismail Vali, founder and chief executive of Yield Sec, stated: “Our surveillance highlights the disturbing and cynical growth of a certain type of illegal operator present in the UK over the past three years.

“The evidence of illicit gambling options that seek to cynically work around and enable vulnerable problem gamblers to avoid GAMSTOP self-exclusion is distressing and demands immediate and meaningful intervention.”

UK White Paper’s illegal market measures

As per Yield Sec’s findings, Vali has announced that he wants to see more resources dedicated towards the prevention of illegal gambling. This includes greater collaboration between regulators, legal operators and law enforcement – in order to clamp down on illegal operators and protect vulnerable players.

Yield Sec’s “stark warning” comes after the UK’s White Paper was released in April 2023. The White Paper committed to increase regulatory powers to combat illegal gambling.

However, David Brown, a UK industry veteran since 1976 and former executive trading director for William Hill, Coral and LadbrokesCoral, believes the affordability checks called for in the white paper are instead driving vulnerable players to the black market.

“This present scenario of potentially highly intrusive affordability checks is likely to encourage illegal operators within Britain,” Brown told iGB in a recent interview. “There is no room for complacency here.

“A wise position would be to be alive to the threat of illegal activity and work collaboratively as an industry to identify it and prosecute under the law.

“Stopping illegal traffic through geo-blocking and advertising into the country is a good place to start.

“However, that will not halt British bettors engaging with betting operators outside the GC’s jurisdiction. This also does nothing to identify any black market non-digital betting within Britain.”

Germany and France also struggling with black market issues

The United Kingdom is not the only nation struggling with illegal gambling. Both Germany and France have revealed the prevalence of the black market in their respective countries.

A recent study found nearly half of all online gambling in Germany occurs with unlicensed operators. This has put the German gambling regulator (GGL) under increasing pressure to combat the issue.

The study identified the black market to be generating three-quarters of revenue. At a conference in October 2023, it was said that Germany’s licensed gambling operators are under more pressure from black market competition than ever before.

In France, meanwhile, the regulator l’Autorité Nationale des Jeux (ANJ) estimated France’s black market to be worth up to €1.5bn. This accounts for over 10% of the total bets wagered in France each year.

The ANJ has since revealed an action plan to tackle illegal gambling. Measures included increasing collaboration with European regulators, as well as looking to boost public awareness over the potential dangers of illegal gambling.

The case dates back to July 2022 when the Court of Appeal granted IGT permission to challenge the selection. The Gambling Commission named Allwyn as the successful bidder for the National Lottery licence in March 2022.

In July 2023, the Court said IGT did not have legal standing for a claim for damages against the Commission. IGT appealed this ruling in September but this week asked the Court to dismiss the appeal. The tech giant will no longer pursue the damages claim.

“We remain resolute that we have run a fair and robust competition, and that our evaluation has been carried out fairly and lawfully in accordance with our statutory duties,” the Commission said.

“Our priority is to continue to work to implement our decision for the benefit of participants and good causes. The fourth National Lottery Licence is due to be granted on 1 February 2024.

“Allwyn has committed to investment in the National Lottery that is expected to deliver growth and innovation across the National Lottery’s products and channels, resulting in increased contributions to good causes, subject to the protection of participants and propriety.”

IGT follows Camelot in withdrawing 

IGT was not the only party to challenge the decision. Camelot Group, which has operated the National Lottery since its launch in 1994, also sought a legal route to block the move. 

Camelot was among the parties bidding for the licence alongside Allwyn. Also involved was The New Lottery Company, owned by Health Lottery operator Northern and Shell, and Italy’s Sisal.

In April 2022, Camelot launched a High Court challenge, regarding whether the Commission lawfully awarded the licence to Allwyn. This led to the formal issuing of the lottery licence to Allwyn being suspended.

The High Court lifted the suspension in June 2022. However, the legal challenge continued, with Camelot and IGT approaching the Court of Appeal in July 2022. Like IGT, Camelot was given permission to appeal.

The challenge ultimately came to nothing, with Camelot dropping the legal bid in September 2022. In response, Allwyn agreed to waive all claims for costs or damages against Camelot.

Conflict eases as Allwyn acquires Camelot businesses

While Allwyn and Camelot were once at loggerheads over the issue, the two companies have become much closer since the legal challenge ended.

Camelot will be stepping aside as the lottery’s operator in a few weeks but will retain links to the games it has run since the mid-1990s. This is through a series of acquisition deals struck by its successor.

Allwyn acquired Camelot UK, current operator of the National Lottery in February 2023. It also acquired Camelot Lottery Solutions (Camelot LS) earlier in 2023. The US-facing business has since been rebranded as Allwyn North America to reflect the purchase. 

The impact of the acquisitions has already been felt by Allwyn, both in the first half and Q3 of 2023. During Q3, Allwyn announced a 98% rise in consolidated total revenue. This, it said, was driven by the double Camelot acquisition.

Other stand-out figures from include consolidated gross gaming revenue rising 98%. As for geographical performance, the UK is now the core market for Allwyn, with total revenue in the UK in Q3 at €956.5m (£822.3m/$1.05bn).

One such country with real regulation issues in regards to igaming is Germany. A recent study found nearly half of all online gambling in the country takes place with unlicensed operators.

This has put the German gambling regulator (GGL) under increasing pressure to make regulated casinos a more attractive proposition in 2024.

Elsewhere, France is another European nation struggling to deal with illegal gambling. The country’s regulatory body recently unveiled an action plan to help target the black market.

Germany struggling to control the igaming black market

At a recent conference in Germany, it was said the country’s licensed gambling operators are under more pressure from black market competition than ever before.

It’s a statement that’s hard to argue with, after a study in the wake of that conference stated the State Treaty on Gambling, in operation since July 2021, is missing its primary objective of ensuring all online gambling takes place on licensed sites.

The study found three-quarters of online revenue is generated through the black market. As a result, hundreds of millions in annual tax revenue is missed out on.

The findings prompted the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV) to call for urgent measures to tackle the issue, primarily by making the licensed market more attractive to players.

These include a GGL review into the current regulatory environment, as well as greater collaboration between the GGL, political bodies, interest groups and the regulated industry. Taxation is also an area the DOCV and DSWV want to be looked at, as well as more flexible regulation.

Gambling harm fears

Since the launch of Germany’s legal online casino market in July 2021, there’s been concerns over the rise of addiction.

These fears manifested themselves in a study last year that revealed four out of 10 of those gambling on slot machines in Germany suffer from gambling harm. The report was the first to measure gambling harm in the country.

Entitled “Gambling Atlas Germany 2023: Numbers, Data, Facts“, the report also stated online casino holds the highest risk for problem gambling.

Of these more high-risk games, 46% of men take part weekly or daily, compared to 35% of women. Slots are recognised as the highest contributor to problem gambling, with four out of 10 players at risk of harm.

The report declared 2.3% of Germany’s population between 18 and 70 years old suffer from gambling harm. In absolute numbers, this is the equivalent of 7.7% of all those who gamble, or 1.3 million people in total.

The prevalence of illegal play in Germany isn’t helping the cause in regards to problem gamblers. Burkhard Blienert of the Federal Council on Addiction and Drug Issues warned the illegal gaming machine market is growing, too.

However, the German government maintains a desire to tackle illegal gambling in tandem with tight controls on the regulated market.

But with illegal online gambling such a problem in Germany and the GGL’s strict regulation believed by some to be only benefitting the black market, 2024 will be an intriguing year to see how the country fares in tackling the issue.

Lack of regulation in France driving black market interest

While attempts were made in 2023 to legalise igaming in France, online casino remains prohibited in any form. This is despite online sports wagering being legal, as well as licensed land-based casinos.

Bill 1248, which set out proposals to open a regulated online casino market in France, may yet be passed. Until then, however, the absence of regulated igaming means the black market is on the rise.

Research published by the French gambling regulator l’Autorité Nationale des Jeux (ANJ) in late 2023 estimated the illegal gambling market in the country could be worth up to €1.5bn (£1.28bn/$1.62bn). This would account for more than 10% of the total wagered across France each year.

510 illegal websites were identified to be generating traffic. Of these, just 21 of them were estimated to generate 60% of the illegal gambling traffic.

The study, carried out by PwC, estimated the gross gaming revenue generated by illegal gambling is between €748m and €1.5bn. This makes up between 5% and 11% of the total gambling market, which was worth a record €12.9bn in 2022.

Plans to tackle the igaming black market

In September, an amendment to a proposed bill looked to facilitate the fight against illegal online casino offerings in France. It planned to do this by authorising land-based casinos to offer online gambling.

The ANJ also revealed its plan to tackle illegal gambling. Having blocked more than 300 websites in the last year, the ANJ will look to take action to warn publishers of software and those who provide hosting solutions for illegal sites. Action will also be taken against payment service providers that facilitate financial flows between illegal operators and players.

Half of the illegal gambling websites whose operators have been identified are owned by companies registered in Curaçao. Therefore, the ANJ announced plans to make reports to the relevant authorities so that proceedings can be brought against those in Curaçao or Cyprus running these sites.

The ANJ intends to enhance the exchange of information and best practices with its European counterparts. Finally, it will also seek to raise public awareness of the dangers of illegal gambling.

Whether these ANJ measures will succeed remains to be seen, but the potential legalisation of France’s igaming market and its subsequent impact on the illegal market is certainly one to keep an eye on.

2024 is set to be an intriguing year for sports betting, particularly when it comes to advertising, where operators’ marketing is set to come under more scrutiny than ever before.

This will be particularly prominent in the United Kingdom. The culture, media and sport (CMS) committee recently called for a reduction in sports betting advertising to protect children.

The white paper, published in April 2023, intended to outline how gambling should be regulated in the UK. However, it received criticism for its lack of measures on how to tackle advertising. The CMS committee is pushing for more to be done in 2024 than was outlined in the white paper.

Pressure to reduce sports betting advertising could also prove a common theme across Europe this year. France, Belgium and the Netherlands all took steps in 2023 to reduce the amount of visible gambling marketing.

This was the case in the US, too, where a bill was introduced into the House by Democratic representative, Paul Tonko, to propose a wide-reaching ban on sportsbook advertising.

Sports betting sponsorship debate rages on in the UK

The UK is likely the region in which the conversation over sports betting advertising will be most prevalent in 2024. The white paper has done little to abate the controversy, coming under fire for its lack of action on advertising.

In mid-April, prior to the release of the white paper, Premier League clubs voted to collectively halt gambling sponsorship on the front of matchday shirts from the end of the 2025-26 season. At the time of the vote, eight of the 20 clubs had shirt sponsorship agreements with gambling operators.

Yet, in an article for iGB, industry expert Jon Bruford expressed his opinion that the move was “placatory at best, pointless at worst”, with deeper action needed to truly address any issues in regards to advertising.

While the CMS committee welcomed the Premier League clubs’ decision, it also called for a “more precautionary approach” to advertising than the white paper proposed. It pointed to a recent study highlighting the high number of gambling messages visible during matches aside from shirt sponsorship.

On top of this, a study investigating Premier League advertising and released in September found that self-regulation was “completely failing”.

Bristol University’s study revealed 92% of content marketing ads from gambling brands breached regulations as they were not clearly identifiable. Researchers also found that less than a quarter (20.6%) included gambling harm reduction messages and only 18.7% featured age warnings.

It’s clear there is a problem to solve. A recent survey from the Football Supporters Association found almost three-quarters of football fans in England and Wales are concerned over the levels of gambling sponsorship in the sport.

It’s no easy fix, though, and 2024 is a vital year in how sports betting is advertised going forward.

Sports betting advertising a hot topic in Europe

2023 was an interesting year for a number of European countries in how they regulate sports betting advertising.

France was one of those to tighten its restrictions on how sports betting can be advertised. The Autorité Nationale des Jeux (ANJ), the French gambling regulator, prohibited the use of an athlete’s image in gambling communications.

The ANJ also released a number of new gambling sponsorship regulations for sports teams, as well as a role model ban, in which athletes popular with children are prohibited from featuring in betting marketing.

Belgium, meanwhile, had a near total gambling advertising ban introduced in July. Unsurprisingly, the ban came under fire from the industry, with some claiming the prohibition will instead aid the illegal market.

The Netherlands introduced a similar ban the very same day as Belgium, with gambling ads through most media channels prohibited. Unlike Belgium’s ban, however, targeting advertising was permitted in some contexts. The regulator’s goal was to ensure 95% of those viewing ads would be over 24-years-old.

Both Germany and Italy already have extremely strict rules on sports betting advertising, with operators in both countries pushing for such tight restrictions to be eased in the future.

US: The Betting on Our Future Act

In February 2023, Democratic representative Paul Tonko introduced a bill called the Betting on Our Future Act.

This proposed a ban on sportsbook advertising, aiming to “prohibit the advertising of sportsbooks on any medium of electronic communication subject to the jurisdiction of the Federal Communications Commission (FCC), and for other purposes”.

If passed, sportsbooks would not be permitted to advertise on mediums that fall under the control of the FCC, such as TV, radio or the internet. As of yet, though, the bill is yet to pass the House and has come under criticism from the industry.

The Coalition for Responsible Sports Betting Advertising launched in April. Numerous broadcasting entities and sports leagues collaborated with the aim of promoting responsible sports betting advertising. The National Basketball Association (NBA), Major League Baseball (MLB) and the National Hockey League (NHL) were all involved.

The NBA, MLB and NHL also joined forces in November, jointly releasing a new responsible gaming advert called Never Know What’s Next. The ad appeared on all three leagues’ X (formerly known as Twitter) accounts, aiming to display the unpredictability of sports.

In December, it was revealed FanDuel Group had lobbied against rules prohibiting advertising sports betting near colleges and universities in New York.

New York introduced updated sports betting rules in October. This came after the New York State registrar considered opinion from various licensees, including Flutter Entertainment-owned FanDuel.

With the ban now in place, unredacted state registrar documents now show FanDuel voiced its opposition to such a move. The operator also spoke out against a number of other measures put forward in October.

The United Arab Emirates’ (UAE) creation of a federal gambling regulator in September 2023 is the next step towards a legal casino market in the country.

The launch of the General Commercial Gaming Regulatory Authority (GCGRA), tasked with creating the regulatory framework for national lottery and commercial gaming in the UAE, was announced on 3 September.

While it’s still unclear what the final regulations will look like, operators are already taking steps to set themselves up to launch in the region.

One such company is Wynn Resorts. Chief executive Craig Billings has talked up the UAE as the most exciting new market opening in decades.

UAE moves step closer to regulated casino market with GCGRA creation

WAM, the UAE’s state-run news agency, announced the establishment of the GCGRA in early September.

Currently, anyone found gambling in the UAE can be subject to two years in prison and an AED50,000 (£10,699/ €12,452/$13,615), according to federal law.

However, the creation of the GCGRA is the next domino to fall towards a regulated gambling market in the UAE.

Kevin Mullally, previously the executive director of the Missouri Gaming Commission, will be the GCGRA’s chief executive. Mullally previously spent 17 years with Gaming Laboratories International (GLI).

Jim Murren will chair the GCGRA’s board of directors. Murren led MGM Resorts as its chairman and chief executive from 2008 to 2020,

It’s still unclear what exactly will be permitted in the country. Questions remain over whether there will be an online component available to bettors and operators in the market.

Another point of contention is whether the UAE’s two existing raffles, Emirates Draw and Mahzooz, will be regulated by the GCGRA.

According to iGB sources, Mullally’s former company GLI has spearheaded the consultations on the creation of the UAE’s regulatory framework.

Eilers & Krejcik Gaming, a gaming consulting and market research firm, has also supported GLI in this work. The consultant has previously involved itself more in digital offerings, sparking speculation the UAE plans for an online market.

These firms pushed for the government to handle gambling regulation on a federal level, as opposed to being the responsibility of each individual emirate.

Sources also stated the UAE plans on establishing a 25% revenue tax on mass market gambling. Premium gaming, meanwhile, would be subject to an 8% tax.

Wynn looking to capitalise on UAE’s casino potential

Wynn Resorts is the operator perhaps best-placed to take advantage of the UAE launching a regulated gambling market. It’s on track to open the region’s first integrated casino resort.

Wynn has begun construction on its Al-Marjan casino, with the venture set to cost around $3.9bn (£3.1bn/€3.6bn). Wynn holds a minority stake in the venture, with 60% of the business owned by the operator’s local partners.

The resort, Wynn’s first venture in the Middle East North Africa (MENA) region, is expected to open in early 2027.

The site is located approximately 65 miles from Dubai, the largest city in the UAE. It will include a gaming area, 1,500 hotel rooms, dining and lounge options, a spa and wellness centre, a high-end shopping esplanade, events centre, an on-site theatre and a range of other entertainment facilities.

Wynn first needs a licence, though, with questions over how this will work. The GCGRA is charged with managing licensing.

Wynn chief executive Craig Billings isn’t worried, however, claiming he expects Wynn’s Ras Al Khaimah licence to be issued “imminently”.

Wynn has consistently shown faith in the UAE launching a regulated market. Billings has lauded its growth potential on a number of occasions, particularly as the first operator to make its move in the region.

Billings recently said: “We believe it’s highly unlikely that every Emirate will ultimately avail themselves of the right to host an integrated resort. Our view is that it will likely be us and us alone for a multi-year period given that we are well underway on construction now.

“We all know the advantages of being first as we have seen in other markets. As I’ve said before, this is the most exciting new market opening in decades.”

The use of cryptocurrency continued to grow in 2023, with the industry becoming more attuned to its benefits and pitfalls.

At the beginning of the year, Fabio Panetta, board member at the European Central Bank proposed that trading unbacked cryptocurrencies should be managed under gambling laws by regulators. Panetta pointed to the collapse of several crypto schemes throughout 2022. He argues that these were the result of poor structure and disfunction in the crypto market.

While some existing laws – such as the EU’s Regulation on Markets in Crypto Assets – focus on regulating crypto, Panetta said that more needs to be done to manage the industry effectively.

One group that experienced issues with crypto in 2023 was Stake.com. The Drake-backed company was the victim of several unauthorised crypto transfers in September. This affected the Ethereum, Polygon and the Binance Smart Chain wallets on Stake.com.

While Stake.com did not confirm how much had been stolen, media reports within the crypto community suggested that $41.3m (£32.8m/€38.4m) was taken.

The growth of crypto gambling

While crypto has its critics, some in the industry voiced support for it in 2023.

Joe McCallum, then-managing director of Yolo Group spoke to iGB about the company’s aims to offer gambling with cryptocurrency to a wider audience. This includes re-centring its offer to the 25-35 age bracket. This is the group that makes up a large part of the social media generation.

As the owner of Sportsbet.io and Bitcasino – two crypto gambling services – Yolo Group is well placed to take on the crypto opportunity in the year ahead.

In May, the European Council passed regulations requiring crypto businesses to be authorised. The passage kicked off a countdown for European national authorities. At the time, they were given three months to create the relevant authorisation framework.

The December total, including promotional bets, is 1.7% ahead of the previous Maryland record of $550.7m in November. It is also 17.1% ahead of the $478.3m bet in December 2022, the first full month of legal online betting.

Of this total, some $541.7m was bet online, representing 96.7% of all bets. This included $19.7m in free promotional wagers. The remaining $6.2m was spent by players betting at retail sportsbooks across Maryland, with $32,146 in free bets.

Turning to revenue, overall taxable win in the state was $62.3m in December. This was 49.8% up from $41.6m in November but 26.7% behind $85.2m in December 2022.

Mobile betting generated $60.1m in hold, with retail’s contribution at $2.3m.

After accounting for $19.8m in promotional wagers, monthly revenue stood at $43.2m. The December figure was more than double November’s $21.3m haul and 1,389.7% up from $2.9m in the previous year. The latter was due to operators issuing a large number of free bets during the debut month of online wagering.

Sports wagering tax for the month amounted to $6.5m. Of this, $6.2m came from online activity and $316,369 retail.

DraftKings out in front in Maryland

Looking at individual operators, DraftKings was the clear leader in the online market. The operator posted $10.0m in taxable win from $167.1m in total bets.

BetMGM was second in Maryland with $2.3m off a $35.9m handle. Caesars followed in third with $887,749 off $24.0m.

As for retail betting, Live! Casino Hotel and FanDuel took top spot. The partnership heralded $592,219 in taxable win off a $3.8m handle for December.

MGM National Harbor and BetMGM were second with $482,059 from $5.2m in bets. Not far behind in third was Oceans Downs Casino and TwinSpires with $466,632 from a $2.5m handle. 

In terms of the fiscal year-to-date, total spend in the six months to the end of December was $2.55bn. Taxable win amounted to $164.0m and tax payments totalled $24.6m.

As we all know, the esports market has undergone a meteoric rise since 2020. Since then, the market has began to settle on three big players – Entain, Esports Entertainment Group and Rivalry.

As we’ll see from this article, Entain and Esports Entertainment Group have had mixed fortunes throughout 2023, while Rivalry has surged ahead.

Entain and Esports Entertainment Group

Starting with Entain and Unikrn, both had ambitious plans at the beginning of the 2023. Entain relaunched the brand in December 2022, with a target set for global domination.

However, despite the launch happening to great fanfare, 12 months have passed since the relaunch and little has happened. So much so, that in a recent statement to iGB, Entain says that it will be scaling back direct-to-consumer operations with Unikrn.  

The other big name at the start of 2023 is Esports Entertainment Group (EEG), however- following a turbulent year, Rivalry again has surged ahead.

Arguably, the company has been in trouble since May 2022, when it admitted “doubt” it could stay in business for another year. In October 2022, its future lay in the hands of a creditor after EEG defaulted on convertible notes issues in 2021.

EEG also announced the sale of its Bethard online casino and sportsbook business in February, with the sale totalling at €9.5m.

Since then, with its net loss widening despite significant cost savings, we haven’t seen anything change just yet. Igelman remains upbeat however, and we might just see a 2024 rebound.  

Rivalry surges ahead

Onto Rivalry. Without a doubt this super-cool brand has definitely picked up the Entain and EEG slack and surged ahead. That’s certainly the opinion of Pinnacle, who were one of the main investors in its 2023 £5.9m financing round.  

The Toronto-based operator has smashed every revenue expectation so far this year, while its unique positioning on the market makes it the esports brand for all the Gen Z and millennial users out there.  

Catering to this audience is clearly bearing fruit – with 80% of its customer base claimed to be under 30. 

By engaging its millennial and Gen Z audiences with its “down with the kids” approach, its campaigns have been crammed with internet-speak, memes and sought-after influencers.  

Rivalry’s lack of profit: the last step to dominance

However, in its latest earnings report announced at the end of November, we can still see that the company is struggling to turn a profit. This, in our opinion will be key for it to stay ahead of the pack in the year ahead.

Looking more closely at its financials, we can see it remained at a net loss in Q3 despite posting record revenue of $8.7m (£6.9m/€7.9m), while comprehensive loss at the business also widened.

In what will no doubt be its biggest challenge in the year ahead, it wants to make the market its own.

Despite making record revenue, increased operating costs and foreign exchange loss offset the revenue hike in Q3. This meant comprehensive loss for the quarter widened to $6.0m, compared to $5.6m in 2022.

Reflecting on Q3, co-founder and CEO Steven Salz praised Rivalry for revenue growth amid a “challenging” capital markets environment. He said this will stand the business in good stead for further growth in Q4 and beyond.

Over to you to, Rivalry.

Senator Joseph Pennacchio’s bill, called SCR14, is an amendment looking to introduce slot machines at New Jersey racetracks. The bill also says revenue would be utilised to support the state in areas such as casinos and horse racing, as well as improvements to Atlantic City.

Pennacchio has introduced the bill on numerous occasions before, as far back as 2014. His efforts have so far been unsuccessful, however, with the bill also dying in committee in 2020 and 2022.

SB2156, meanwhile, introduced by Senator Joseph Cryan, has also failed previously to pass an iteration of the the bill through the senate.

In its latest form, SB2156 aims to limit advertising on casino games and sports pools in some circumstances. These include targeting self-excluded gamblers and children. The bill also aims to clamp down on “fraudulent” advertising, though it stresses “all other means and methods of advertising” will be left alone.

Both bills have been referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

New Jersey stagnating in 2023

The bills on slots and advertising in New Jersey come after a disappointing H2 2023 for the state’s gambling industry.

While gambling revenue in New Jersey increased 9.4% year-on-year in November 2023, monthly revenue was down $4.7m (£3.7m/€4.3m) from October’s $487.1m.

This came after October’s figures lagged 6.6% behind on September’s numbers. The decline in H2 2023 was largely down to a drop in land-based casino revenue.

According to November’s numbers, MGM Resorts’ Borgata remains the most lucrative property in the state, bringing in casino win of $51.7m. However, this was down 6.1% compared to November 2022. Bally’s saw the largest year-on-year growth, with casino win increasing more than 20%.

Meanwhile, Golden Nugget had the largest internet gaming win during November, totalling $50.1m. This was up 32.9% year-on-year.

Online gaming growth has been positive, though, with total gaming revenue reported by casinos, racetracks and their partners in the first 11 months of 2023 at $5.3bn. This reflected a 10.5% increase from $4.8bn reported in the prior year-to-date period.