Month: February 2024

McGill stepped into the hot seat at the online gambling solutions provider last September following the resignation of long-term leader Dermot Smurfit.

Nasdaq-listed GAN said McGill will remain on the business’ board of directors and will be focused on the completion of its $107.6m (£87.7m/€100.8m) buyout by Sega Sammy Holdings.

“Seamus has the full backing of the board of directors and we are confident that his experience and leadership make him the most qualified candidate to be GAN’s next CEO,” said David Goldberg, GAN’s chairman.

“Seamus has been with the company since 2014 and has a deep understanding of GAN’s products, customers and strategy. On behalf of the entire board of directors, I’d like to congratulate Seamus on his appointment and we look forward to his success.”

McGill had been non-executive chairman of GAN since January 2014, prior to which he was president of Joingo. He also had a spell as chief operating officer of Aristocrat Technologies and worked for Cyberview Technology and WMS Gaming.

McGill said: “It’s an honour to be named GAN’s CEO and I’d like to thank David and the board for their vote of confidence.

“Going forward, our focus remains unchanged. We remain committed to a timely closing of our transaction with Sega Sammy to maximise value for all of our stakeholders.”

GAN brand to remain following takeover

Smurfit led California-headquartered GAN as CEO for more than 21 years before his departure was confirmed in late September. The agreement with Sega Sammy was announced little more than a month later, in early November.

In announcing its bid for GAN in November 2023, Japan-based Sega Sammy said it hopes to expand its gaming business and wider gaming portfolio. The business already operates an integrated resort through Paradise City in Japan, while it supplies gaming equipment and content through its Sega Sammy Creation (SSC) arm.

Much of this expansion will focus on the US igaming market, with Sega Sammy saying it has identified “promising” growth opportunities in the country.

GAN shareholders overwhelmingly voted to approve the transaction earlier this week. If the acquisition goes ahead, GAN will merge with SSC’s new special purpose company. GAN will be the surviving corporation after this merger.

The acquisition comes in the wake of a strategic review that GAN launched in Q1 last year. GAN said it was looking at strategic alternatives to improve value for shareholders.

Under the same agreement with the NSW treasurer, Daniel Mookhey, Star Entertainment will also begin a trial of cashless and carded play at its Sydney casino. That is a precursor to the reforms to be introduced later this year in NSW.

The jobs guarantee agreement was approved by Star Entertainment along with the NSW authorities and United Workers Union. The Star has agreed to maintain a minimum headcount and certain ratios of full-time, part-time and casual employees. The agreement runs until 30 June 2030.

Following amendments to the Casino Control Act, penalties can apply to The Star for failing to comply with the commitment. The jobs commitment is subject to certain permitted adjustments in certain circumstances, including for material adverse change events.

In August last year, Star Entertainment secured concessions on casino duty rates with the NSW state. It has since worked on a transition plan to stabilise operations at its Sydney casino and curb further cuts.

Cashless casino play trial agreed

Star Entertainment has also agreed to a trial of cashless and carded play at The Star Sydney.

The trial is a precursor to reforms to the NSW regulatory framework which will see cashless gaming and carded play introduced from August 2024. The trial will apply to 51 poker machines and eight table games until the framework comes into effect.

Commenting on the formalisation of the arrangements, Star Entertainment chief executive Robbie Cooke, said: “The Star appreciates the constructive engagement with the current NSW government that has led to finalisation of an agreement that provides employment certainty for our dedicated and hardworking team members in Sydney.

“As we continue to focus on earning back the trust of the community and implementing the reforms required to restore The Star to suitability, we are also committed to the continuation of our role as a valuable contributor to the NSW economy.”

Star Entertainment’s AU$2.4bn full-year loss

Last August, Star Entertainment announced a full-year loss of AU$2.4bn ($1.6bn/€1.5bn/£1.2bn) as it counted the cost of a write down in the value of its casinos.

Star Entertainment, which has faced a string of penalties, announced $2.8bn of outgoings labelled “significant items” during the year.

This consisted of an AU$2.2bn non-cash impairment of the Sydney, Gold Coast and Treasury Brisbane goodwill and property assets. There were also regulatory and legal costs of AU$595m, debt restructuring costs of AU$54m and redundancy costs of AU$16m.

Those costs, minus a positive and growing EBITDA of AU$317m, means an after tax loss of AU$2.4bn.

Star Entertainment was declared unsuitable to hold a casino licence in New South Wales in September 2022. Adam Bell SC’s report outlined a catalogue of AML and social responsibility failings at The Star Sydney stretching back years. A year later, a report into The Star Sydney’s progress found the casino had implemented 22 of 30 recommended measures from the Bell report.

Many in the industry had high hopes for the 58th edition of the Super Bowl. And they were right too – Sunday’s game was the most-watched American television broadcast since Neil Armstrong walked on the moon.

While loyal American football fans and cheerful once-a-year viewer types undoubtedly tuned in, the hype around the final was no doubt amplified by the presence of Taylor Swift. According to Apex Marketing Group, Swift has generated a hefty $331.5m (£264.0m/€309.5m) for the National Football League (NFL), simply by showing up to watch her boyfriend Travis Kelce, the Chiefs’ tight end, play.

A survey by the American Gaming Association projected that a record 67.8 million American adults would bet $23.1bn on this year’s Super Bowl, marking a 35% rise in bettors from 2023. Regulus Partners, meanwhile, made a more conservative estimate of $1bn being spent on the big game.

Regulus noted that the AGA’s wagering estimate is a bit unbelievable compared to the actualities of the wider US market, where total legal sports betting market handle was $100bn in 2023. For all NFL games, $20bn was wagered throughout the year.

It’s been a long time coming

Also according to the AGA’s survey, 28.7 million adults intended to place online bets with a legal US sportsbook. Regulus says the AGA’s estimates, particularly around the legal sports betting market, bring the sports betting industry’s faults to light.

Despite this, Regulus highlighted one positive side to the projections – namely the success of sports betting channelisation. It stated that illegal bookmakers now make up just 19% of traditional betting engagement. Nonetheless, legal bookmakers are channeling just 45% of Super Bowl betting demand by channel.

Gameday data from GeoComply suggests that the AGA’s estimations were on the low side. In the minutes leading up to kick-off it recorded an enormous spike in traffic, coming to 14,750 transactions per second. This is more than double last year’s peak and the highest transactions per second GeoComply has ever recorded.

GeoComply also reported that 1.77 million new users signed up for legal online betting accounts in the two weeks leading up to the game.

Top of the world

All of this culminates in a huge win for so many groups – the NFL, the US sports betting market and maybe even the occasional Swiftie. But Regulus says the Super Bowl’s great success could spell bad news on the customer acquisition front.

“NFL fans now have a long wait until September before the new season becomes properly engaging again; March to August represents just 2% of NFL bets,” noted Regulus. “Super Bowl is the apex event of a six-month season, worth 2% of all NFL betting or 8-10x more than a typical NFL game, but then the season leaves bettors flat.

“This climax is excellent for sports engagement, but a very poor customer acquisition proposition for betting unless customers can be cross-sold into gaming, basketball or baseball.”

Although there’s a comedown on the horizon, the highest high may have been worth it. In Nevada, which hosted the Super Bowl for the first time this year, $185.6m was wagered on the game across 182 sportsbooks, breaking the state record.

And as expected, the nitty-gritty details of the Super Bowl betting stats back up the hype. FanDuel – which had one of only three total sports betting ads shown during the broadcast – recorded more than 14 million bets during the game, totalling a record $307m in handle for the operator. More than 2.5 million active users wagered with the operator on the big game.

Suspicious transactions surge 206% on Super Bowl Sunday

But the game wasn’t all touchdowns and popstars. According to identification verification service Socure, the Super Bowl endured its fair share of fraud attempts.

Socure reported that, on Sunday, the rate of suspicious transactions on gaming platforms linked to fraud spiked 206%. This was compared to volumes recorded during January’s playoff games. Fraudulent betting attempts saw enormous spikes three hours before kickoff, as well as at the beginning of the game.

A lot of this comes down to email addresses, according to Socure. Transactions were most likely to be reviewed if a person’s email address was not active.

And the most likely group to be targeted? None other than Gen-Z. Socure found that the 21- to 25-year-old age group attempted the most risky transactions by far. However, it noted that this may indicate a slew of stolen identities within the age group, rather than fraud attempts.

All around the globe

This popularity isn’t just limited to the US. Yesterday, Entain released its Super Bowl stats, revealing that there had been a surge in bets placed in the UK and wider Europe. This was particularly true among women, with the number of female bettors growing 51% from 2023’s game and 86% since 2020.

Data from Entain’s Coral, Ladbrokes and Bwin brands found that UK and European bets spiked 12% compared to last year’s Super Bowl.

And according to data from Entain and BetMGM – Entain’s joint venture with MGM Resorts International – Super Bowl bets rose 30% yearly. This was surely enhanced by the 72% year-on-year increase in new customers.

For Ladbrokes and Coral only, the volume of UK Super Bowl bets grew 74% compared to 2020.

When it’s all laid out in black and white, it’s impossible to deny that Super Bowl LVIII more than lived up to the hype. Next year’s edition, set to take place at the Caesars Superdome in New Orleans, Louisiana, will certainly have a lot to live up to.

The sharp rise in gross gaming revenue (GGR) across the country’s 25 venues was helped by 7.1 million people visiting casinos in Chile in 2023, a 12% increase compared to the previous year.

The average expense per visit was CLP$76,042, although this was a 12% decrease in the average expense per visit seen in 2022.

The overall rise in GGR was despite faltering performances in 2023, with casino win consistently declining later in the year. In December casino revenues were 4.7% lower than the same month of 2022.

The casinos’ overall tax contribution of CLP$195.72bn was an 8.7% hike on last year’s figure of CLP$180m.

Chile: igaming potentially on the cards

In December, Chile’s chamber of deputies passed a bill that would regulate online gaming. The bill was officially approved to be sent to the country’s senate for a second legislative process.

The bill aims to carve out a competitive online gaming market in the country. It also sets the objective of protecting the health and safety of players. If passed into law, the bill would give new powers to several Chilean regulatory bodies.

The general hope is the bill will pass through the senate chamber between March and June 2024 and then go back to the chamber of deputies. If all goes well, Chile could have a provisional system by November this year.

There are expected to be issues to overcome, though, much like what has been seen in fellow South American nation Brazil, which is finally expected to have a regulated gambling market in 2024 after a long and winding journey.

Tax is predicted to be a hurdle, while there is a real need to make the industry attractive in order to drive players into the regulated sphere and away from the illegal market.

Study discounts cannibalisation threat

One concern that has potentially been overstated is the cannibalisation of casinos when regulated igaming is brought in.

Some quarters have previously believed that the legalisation of igaming can have a negative impact the performance of land-based casinos.

However, a fresh report commissioned by the iDevelopment and Economic Association (iDEA) has found that the introduction of online casinos instead has a positive impact on revenue at land-based casinos.

Gaming consultancy Eilers and Krejcik Gaming (EKG) authored the report. It analysed data from casinos, regulators and state governments over a period of 16 years.

The report compared the compound quarterly growth rates (CQGR) of land-based casino GGR before and after online casino was introduced. It noted each of the six states studied experienced a positive change in quarterly growth after igaming came into play.

EKG carried out a survey on casino operators, both land-based and online, as part of the research. It stated “the response from participants has been unanimous: cannibalisation has not been occurring”.

When asked about the impact online casino had had on land-based revenue, 20% of participants said it had “moderately increased”, while 80% said it had “stayed roughly the same”.

To the question “How would you describe the impact the introduction of online casino has on land-based casino revenue?”, 100% of respondents said they did not believe cannibalisation fears are valid.

Lottery.com said the strategic acquisition, financial details of which were not revealed, will see the rebrand take place immediately.

SportLocker, which has links to Saudi Arabia’s burgeoning sports programme, previously announced plans for club acquisition, sponsorship and media partnership programmes – focussed on UK football and the US Major Soccer League (MSL).

Austin-based Lottery.com said in a statement that it would acquire S&MI, the owner of SportLocker, in a stock-based deal. The deal comes after announcements in recent days relating to the issuing of 20m shares (totaling $100m) and “a substantial expansion” in fundraising. The latter includes commitments from new and existing investors rising to $5m from $1m.

No mention of betting

The Sports.com platform will first roll out in the US and Europe, along with dedicated efforts in the Middle East. It aims to combine sports news, live streaming and content such as documentaries and films. Despite Lottery.com’s links to gambling, there is no mention of sports betting being included on the new Sports.com platform.

Lottery.com said a core strategy behind the plan includes leveraging its existing partnerships with Mobile Network Operators (MNOs). These offer localised branded sports content services. This approach, it said, enhances the value proposition for MNOs by servicing the demand for sports video content from large scale audiences across many markets directly onto consumers’ mobile devices.

Sports.com is “determined” to expand worldwide, via sports such as soccer, motor racing, football, baseball, basketball, MMA, boxing, cricket, golf and tennis. A dedicated parallel program committed to women’s sports is also expected to launch.

Lottery.com CEO: ‘Great strategic importance’

Matthew McGahan, chairman and CEO, said: “This acquisition is of great strategic importance to our group. We are delighted to unveil Sports.com to the world with a revolutionary vision that will transform how fans engage with sports.

“By integrating SportLocker’s robust MNO partnerships, localised content services and community-focused features with enhanced content and technology, we are creating a dynamic ecosystem where fans can not only consume sports, but also connect and create in ways never before offered to the mass of sports fans worldwide.

“We are positioning Sports.com to offer sports fans an unparalleled year-round experience. The introduction of our media platform is just a glimpse of how we intend to bring fans closer to the sports they love.”

Africa and India among target regions for Lottery.com

Throughout 2024, Lottery,com said it plans to add new features to the platform and invest in innovative technologies for Sports.com. These will focus on providing sports fans “with content that truly matters to them”. This will be achieved though the creation of communities and sports-centric social media campaigns with leading sports stars.

Following on from its initial US and European markets, Sports.com plans to extend its reach into Africa, India, South America, Asia and Australia.

It said it will aim to deliver global sports content along with regional sports content. The business will also offer comprehensive pre and post-match stats, news, and event highlights. This will include access to the Indy 500, Dakar Rally, FIA Formula E, and the Formula 1 season.

Broadcasts of the PGA Tour, LPGA Tour, and the Masters Golf Tournament will also be included. It will also include coverage of tennis Grand Slams, including the Australian Open, French Open, ATP and WTA tours.

Majed Al Sorour, president of Sports.com and Saudi Golf, said: “I am thrilled to lead Sports.com into a new era where technology and passion for sport converge to create unparalleled experiences for fans worldwide.

The former director and CEO of LIV Golf and Newcastle United FC added: “Our vision is to revolutionise fan engagement, making every moment more interactive, accessible, and engaging. Supporting Sports.com at this transformative stage, I look forward to leveraging my experience to catalyse growth, innovation, and community-building in the sports and technology landscape.”

Lottery.com on the up after turbulent times?

In its most recent financial results, Lottery.com said it reduced its net loss by more than 43.0% in Q3. This came despite reporting a decline in revenue for the period.

Lottery.com posted revenue of $285,523 (£225,800/€261,703) in Q3. This was 59.9% down from the $711,477 reported in the three months to 30 September 2022. It posted a pre-tax loss of $3.4m, compared to $6.1m in Q3 in the prior year.

Lottery.com in May 2023 revealed it faces “material weakness” over accounting non-compliance. This was in the face of a class action suit served in 2022 on behalf of investors and former employees.

More recently, Lottery.com regained compliance with Nasdaq Stock Market rules over a year after falling foul of regulations. In September, Nasdaq’s Listing Qualifications Department confirmed the broker evidenced compliance with minimum bid price requirements.

Pini Yakuel CEO and founder of Optimove discusses why the company offers the best marketing CRM solutions for the igaming market. From a deep rooted heritage in the industry to constant investment in innovation, Optimove is ready to grow with its partners.

The Alabama House passed two bills on Thursday which envisage the expansion of commercial gambling in the state.

Bills HB151 and HB152, both sponsored by Rep. Chris Blackshear, must still be passed by the state’s upper house. The former, as a constitutional amendment, also requires confirmation by the public and would be added to the ballot in November.

Gov. Kay Ivey, who would then have to approve both bills, said in a statement on Thursday that the bills “in their current form” have her support.

“The proposal passed by the House will clean up and crack down on the rampant illegal gambling and will give Alabamians the opportunity to have their say on regulated, limited forms of gaming,” Gov. Ivey said.

What the gambling bills include

On Thursday, HB151 was passed 70-32 by the House, with HB152 passed 67-31. The House Economic Development and Tourism Committee approved the two-bill package on voice votes on Wednesday.

HB151 would legalise retail and online sports betting, a state lottery, and casinos in areas of the state that have bingo-type games. It would also authorise the state to negotiate a gaming compact with Poarch Band of Creek Indians, which operates the three existing casinos in the state.

Bill HB152 creates a state lottery and gaming commission to regulate those sectors of gambling in the state. It would create an Alabama Gaming Commission that would licence the casinos and include a law enforcement division. The Alabama Gaming Commission could licence up to six casinos, with the seventh belonging to the Poarch Band.

“Finally, at least from the House perspective, we heard you loud and clear from the polling, and we’re giving the citizens the right to decide what they want in the state as it relates to gaming,” Blackshear said to reporters after the bills’ passage.

The Legislative Services Agency estimated the state could receive as much as $900m from the lottery, casinos and sports betting. That includes revenue that would come from a compact with the Poarch Band of Creek Indians.

Blackshear said at a public hearing earlier this week that expanded gambling could bring in as much as $1.21bn to the state. According to HB152’s fiscal note, $315m to $492.2m would come from casinos and up to $42.5m from sports wagering. Between $305.6m to $379.4m could be raised from lottery. Blackshear said another $300m would come from a potential compact with the Poarch Band.

Massachusetts’ January revenue was a remarkable 17% increase on the previous highest month, set back in May 2023.

Handle fell just 1.1% short of December’s $658.7m record, still accumulating $651.7m in what was another strong month for Massachusetts’ sports betting industry. Tax collected was $5.8m, also 9.4% down on December.

Massachusetts has shown very encouraging growth since sports betting went live on the last day of January 2023. Online continues to perform very strongly, with online wagers accounting for 99.4% of January’s handle.

In terms of casino, Massachusetts produced $93.5m in gross gaming revenue (GGR) for January, 10.1% short of December’s figure of $103m. Encore Boston Harbor continues to lead the way, accumulating $60.9m in table and slot GGR.

DraftKings still the leader in Massachusetts

While DraftKings’ handle of $315.9m was $4.5m short of the $311.4m it accumulated in December, it still remains out in clear at the summit of the Massachusetts’ sports betting market.

FanDuel saw its sports betting handle jump by 3.6% month-on-month to $194m in January. However, it still continues to lag well behind DraftKings, falling $121.9m short of its rival’s January total wagers.

Having launched across 17 US states in November, ESPN Bet continues to make a dent in the Massachusetts market, ranking third in the state for the month with $45.4m in handle. BetMGM and Caesars Sportsbook were fourth and fifth with $36.8m and $22.5m respectively.

Wynn ceases Massachusetts operations

One operator who will not be tapping into Masachusetts’ growing online market will be WynnBet, with Wynn Interactive division of Wynn Resorts ceasing operations of its online gambling brand in the state earlier this week.

Wynn Resorts, however, will continue to operate retail sports betting in the state. Players can continue to wager at the land-based sportsbook and kiosks inside its Encore Boston Harbor casino.

The halting of operations in Massachusetts comes after Wynn Resorts last August set out plans to scale back the brand across the US. Along with Massachusetts, WynnBet will also exit Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia.

The brand will remain active in Nevada, New York and Michigan, though its operations in the two latter of those remain under review.

Greta Mascheretti, solutions account manager at EqualsMoney discusses how a fast, seamless and efficient payments processor is paramount for operators in the igaming space. From working directly with account managers to getting to grips with compliancy hurdles, Mascheretti believes that payment transactions don’t need to be complicated.

These were wagers made through both retail and online sportsbooks. In total, this is a decrease of 15.1% compared to Super Bowl 2023, when the Philadelphia Eagles were defeated by the Kansas City Chiefs.

The regulator added that after payouts, revenue should come to $11.0m, down 62.7% from the $29.7m revenue generated from last year’s Super Bowl.

This marked the sixth year that sports betting was legal in Pennsylvania for the Super Bowl. It was also the fourth year of online sports betting in the state. Bettors could choose between 18 retail locations and 12 online betting sites to place their bets.

Online versus retail breakdown

Online wagers totaled $64.6m for Super Bowl 2024, a decline of 12.5% compared to online wagers on 2023’s game. The 2023 online wagering total was also the highest since online sports betting was introduced in Pennsylvania.

Retail bets made up the remaining $6.8m in wagers, consistent with 2022, 2021 and 2020’s figures – but a far cry from the $10.3m in retail bets placed in 2023. This marked a 33.4% decrease year-on-year.

Turning to revenue, this is projected to hit $451,039 for retail, down by a staggering 90.4% yearly. But this was not the lowest retail revenue to date – Pennsylvania saw a loss of $450,894 in retail revenue from Super Bowl 2020. Online revenue is set to total $10.6m, down by 57.6%.

The Pennsylvania Gaming Control Board noted that more than 875,000 online wagering accounts were active in the state over Super Bowl weekend, a rise of 10.4%. This was sourced from geolocation service GeoComply.

Seismic Super Bowl betting activity

GeoComply also reported that it had conducted 13.6m geolocation checks for the state. These checks ensure that only those within Pennsylvania could access the state’s legal sports betting sites.

Across the US, states are reporting record numbers for Super Bowl betting. Among these is Nevada which broke its state record for Super Bowl bets with $185.6m wagered. Ahead of the game, GeoComply recorded 14,750 bets per second.

Findings from a survey conducted by the American Gaming Association projected that $23.10bn would be wagered on the Super Bowl.