WynnBet ceases operations in Massachusetts

Players in Massachusetts have 30 days from yesterday (12 February) to withdraw any funds from their WynnBet account.  

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 remains active in Nevada, New York and Michigan. However, Wynn chief financial officer Julie Cameron-Doe last week said its operations in New York and Michigan remain under review.

Incidentally, WynnBet was due to continue to operate in Massachusetts, as per the plans set out last summer. However, Cameron-Doe last week confirmed the brand would also be exiting the state. 

“We’re working on closing down Massachusetts online as well,” Cameron-Doe said last week. “And wherever we’re able to and where we can interact with anybody else, we’ll make sure that we do the best for our shareholders and monetise the assets that we have in a way that works well with what’s allowed and what’s available out there in the market.”

WynnBet falling behind in Massachusetts

The most recently released monthly results for Massachusetts show WynnBet some way behind the market leaders.

During December, WynnBet posted $870,876 (£688,762/€808,966) in online sports betting revenue from $12.5m in bets. In comparison, market leader DraftKings reported $29.9m in revenue from $316.9m in online wagers.

As for the market as a whole, Massachusetts reported a record handle for the second consecutive month in December. Players wagered a total of $658.7m, including $643.2m online.

Turning to taxable revenue from sports betting, this reached $60.6m in December. This was 23.9% ahead of $48.9m in November and just 0.7% behind May’s $61.0m monthly record.

Online betting accounted for $59.3m of all sports betting revenue in December, with retail’s share at $1.3m.

Revenue hits record $6.53bn in 2023 at Wynn

Last week also saw Wynn Resorts report its 2023 financial results. For the past year, revenue hit $6.63bn (£5.16bn/€6.06bn), up 73.9% year-on-year and a new record for the operator.

Wynn reported widespread growth in 2023, with revenue up across all properties. However, it was in Macau where Wynn saw the most success, with significant growth at the Wynn Palace and Wynn Macau, following the removal of Covid measures in the region.

Operations in Macau accounted for $3.10bn of all revenue, up 329.7% from the previous year. Wynn Palace drew $1.89m in revenue and the Wynn Macau business $1.21bn.

Elsewhere, Las Vegas revenue climbed 16.3% to $2.48bn, while revenue at Encore Boston Harbor increased 4.2% to $865.8m.

Net profit for the year hit $730.0m, compared to a $423.9m loss in the previous year. In addition, adjusted property EBITDAR hiked 191.4% to a record $2.11bn for 2023.

Maryland’s January sports betting revenue up 23.4% year-on-year

Maryland’s January figures far exceeded the same month last year, when it recorded $441.5m in revenue. Taxable win for the month was $55m, with the contribution to the state standing at $8.2m, an all-time high.

Hold in January was 14.7%, 1.2% higher than the same month last year, while prizes paid to players amounted to $465m, again a 21.8% increase year-on-year.

Maryland has now accumulated $3.1 trillion in sports betting handle for its 2024 financial year, a 144.9% hike on 2023.

Maryland lottery and gaming director John Martin attributed the strong revenue figures to the NFL playoffs, stating the sporting calendar was the “driving force” behind the state’s sports wagering success.

FanDuel out in front

fanduel led the way in maryland for january in both online and retail

Live! Casino Hotel and FanDuel recorded a handle of $244.6m in January for online sports wagering, while DraftKings trailed behind with $154m for the month.

BetMGM was third for handle with $40m, while Caesars took $24.5m in bets for the month.

In terms of retail, Live! Casino Hotel and FanDuel again led the way, recording a handle of $3.5m. Retail accounted for $17.2m in revenue, just 3.3% of the total, with online continuing to dominate the market.

Maryland sports betting flourishing

Since online sports betting was launched in Maryland in November 2022, the state has consistently enjoyed strong revenue figures.

In December, Maryland set a new sports betting handle record for the second consecutive month, with players wagering a total of $559.9m.

Online casino is also performing well in the state, with online casino revenues for December amounting to $165.6m, a 5% increase on the previous month.

Slot Trumps: Do German regulations limit player behaviour?

Slot Trumps lays bare the impact of restrictive regulation on the German online casino market, which has the second-lowest average bet size of all markets covered to date and the lowest of the European countries. 

Germany’s online slot restrictions are cutting stakes and play sessions

The €1 maximum stake limit on slots pushes average stakes down to €0.52, roughly 50% below the global average across EveryMatrix’s SlotMatrix network. 

German online slot restrictions bite

There are further limitations to contend with and clear evidence of these impacting player activity. Consumers can only play one game at a time, which coupled with fixed spin speeds results in average bets per session of 59. 

Wait times between spins also mean German online slots players prefer a higher volatility game – the highest recorded by Slot Trumps to date, as they look for more entertainment for less. 

In Greece, another market where low stake limits affect play, average bets per session are 30% higher. Romania doesn’t impose such restrictions and average bets per session are 50% higher as result. 

Slot Trumps Germany: Classic themes, classic features

The prevalence of free spins as the most visible bonus feature (found in 85% of SlotMatrix’s top 20 games in Germany) is a consequence of the limitations. Free spins extend gameplay without any additional spend, which may mitigate the low stakes and slow game rounds. 

When it comes to themes, tried and tested works best – animals, fruits and fantasy themes rule the roost. For German online slot players, there’s very little difference between the three though, with 24.7% animal themed games are the most popular. 

Ready for the full breakdown? Click here for the full Slot Trumps Germany dashboard

A holistic approach to safer gambling

The responsible gambling side of the industry has grown in recent years, with many companies springing up devoted to analysis and prevention, or with an alternative way of looking at the issue.

Despite many excellent people doing great work in the space, it’s questionable whether any progress has been made for players regarding effective intervention.

Enter Sarah Ramanauskas and Simo Dragicevic. Ramanauskas is well-known in the industry through years of work with the likes of Gambling Integrity, BetKnowmore and The Howard League. Dragicevic is perhaps best known for his time at Playtech, after founding BetBuddy. Their combined skills and a side-step from the norm in terms of approach looks like a very promising route to successful, long-term player care.

The pair’s new project, the Game Safety Institute (GSI) is aiming to incorporate all aspects of the player experience to produce a multilayered picture of the combined causes of harm to individuals. It’s an ambitious, exciting project, but does the industry really need another RG-focused business? Ramanauskas says yes, because their approach is both novel and valid. But what is it?

SIMO DRAGICEVIC and Sarah Ramanauskas, co-founders of The Game Safety Institute

“The Game Safety Institute is a starting point for any operator that wants to understand how to make the gambling products available to their consumers safer to play with, more entertaining, more useful and in line with their customer needs,” she says.

“We have brought together a whole load of research insight, a lot of which Simo has contributed to and started to flip the story from ‘We’ve got some products that people want to play’ to, ‘We’ve got people who want to play, what are the safest products to give them?’”

The key here seems to be a shift of focus. Where historically the onus has been on the player to opt out, or choose the tools to look after themselves, GSI is looking to incorporate safety mechanisms at all points and levels of interaction in a way that the player will not even be aware of.

Ahead of the game

“If we think about consumer protection and regulation, most of the focus has been around the player,” explains Dragicevic. “And understanding the player, from a variety of perspectives, is really key from a regulatory perspective.

“Take the UK, where there’s been a lot of focus on responsible gambling tools, making those more efficient and better. With Gamstop you can self-exclude through one point across all online operators; there is the land-based equivalent in SENSE.

“What you’re seeing is this real tightening of the regulations around the player and it will reach a point where there’s only so much you can do.”

Dragicevic adds that other elements come into play here – such as the environment, the product and whether the player suffers from harmful gambling behaviour.

So where does an idea like the GSI come from?

“We met for lunch – fish and chips – and both agreed that product safety is where the next big thing will be,” says Dragicevic. “We’re probably a bit ahead of the game with this, but we can see it coming quite quickly.”

Being ahead of the game, however, can be both a blessing and curse. It means the pair have to establish the idea and prove it can work without killing a business and also to explain it.

Dragicevic and Ramanauskas carried out research to find out how casinos and lotteries viewed product safety

But it’s also an opportunity to create the standards by which everything subsequent is measured and that’s a golden opportunity. So what’s the starting point for such a new concept?

“We started off by sending out a survey to some of our favourite lottery and casino operators around the world asking about product risk and product safety: is this important to you?,” Dragicevic continues. “What do you think? What are you using at the moment to decide whether or not your products are safe? Most of them came back and said ‘this is a really important topic, we don’t think we’re necessarily doing it terribly well’.

“We then worked on establishing our ground rules, something that means that we are a centre of excellence, creating the brand that people will come to when they want to think about product safety. And so the Game Safety Institute was born.”

Game type

Think about roulette in its many forms. The basics of the game are the same across many platforms, but the potential harms for a player change radically from game to game.

In a casino, you have people around you, a dealer trained (in theory) to be looking out for problem behaviours and a limited number of spins per minute; a live dealer platform might have more frequent spins, but none of the social safeties that come with in-person interaction.

A fixed-odds betting terminal is another animal entirely, with much faster spin rates; a mechanical roulette would likely be in a casino, but might not be monitored… You get the idea. And that’s just one game.

But it does bring to mind the question, how does the GSI define “unsafe” within a gambling environment?

“When you think about products, the risk element is really what defines gambling,” Dragicevic elaborates. “If you take the risk element away, then it’s not gambling and it takes away a huge part of the experience. Having that element of risk in the product is really important.”

The GSI team say they’re developing an assessment framework to look at game design, marketing and player education in order to give an operator a chance to assess elements of risk and their impact. It’s about helping operators look at product risk and safety from a strategic perspective and to find out how the different elements interact – positively and negatively.

They’re also working on a product intelligence platform. With slots, for example, this would mean suppliers can upload game metadata, mechanics and maths. This would allow an assessment of these ingredients and to segment into different game and playing types.

A holistic approach

It’s the combination of these approaches that promises to be so potent and to look at games, players, delivery methods and more in a way that has simply not been possible before. Operators will be able to build sustainable player relationships with insight into the real factors of risk for the individual. And it’s the longer relationship that is much more valuable – after all, keeping a player is much cheaper than acquiring one.

It also means that the traditional method of delivering RG is redundant: responsible gambling messaging will not be needed because everything will be built into the entire experience with this holistic, multi-layered approach.

GSI is developing an assessment framework that will focus on game design, marketing and player education

“We don’t see responsible gambling as being a separate thing outside of the player experience, which is what it is at the moment,” says Ramanauskas. “You come onto a site and there’s some deposit limits, or there’s some loss limits but that’s not actually part of your playing experience. It’s four clicks away, on a different page that’s got sombre words on it about problem gambling.

“It’s about understanding when you get a new customer onto your site, what do they want to do? Why are they there? That’s what the gambling industry should be doing with safer gambling. It’s about baking it into the product.”

Dragicevic concurs.

“Responsible gambling should be invisible,” he notes. “You shouldn’t have to think about it. Policies should be in place that mean it’s not about squeezing every last drop from that player and these policies should not be over-ridden by other aspects of the business.

“It shouldn’t be ‘oh, use the deposit limits. It’s all on you to set your deposit limit.’ It should be more nuanced.”

Revenue risk?

Of course, the risk for operators is that if they act responsibly, they run the very real risk of losing valuable players to competitors. Then there’s the quarterly dividend, which is so often the driver behind short-term decision-making.

But Ramanauskas also points out that the people working behind the scenes are also extremely important.

“Yes, one group of stakeholders are the shareholders – but another key group are your staff,” she says. “There’s one particular operator who has finally had their licence taken away in the UK and I looked on Glassdoor at their employee reviews; they were appalling. There was one that said something like, ‘I go home at night knowing that I have made immoral decisions and I’m doing the wrong thing’.

“If the gambling industry wants to attract and retain really good staff, they need to show that they are doing the right thing by their players. If your employees feel that they are being forced to make the wrong decisions, to make moral choices when they’re trying to persuade players to spend more than they can afford, then you will have very high staff turnover and dissatisfied employees – and you won’t be able to attract the best talent.”

The responsible path is a win-win across the board, it seems.

Jon Bruford has been working in the gambling industry for over 17 years, formerly as managing editor of Casino International and presently as publishing director at The Gaming Boardroom, with Kate Chambers and Greg Saint. He owns a large dog with a sensitive stomach and spends his free time learning about stain removal.

Nevada breaks state record for Super Bowl bets with $185.6m wagered

The game, played between the San Francisco 49ers and eventual champions Kansas City Chiefs at the Allegiant Stadium in Las Vegas, exceeded the $179.8m wagered on the 2022 Super Bowl.

However, a 3.7% hold percentage meant sportsbooks’ total win was just $6.8m. Since 2015, only three editions of the Super Bowl have generated a lower sportsbook win than the 2024 game.

In the NGCB press release, chairman Kirk Hendrick said: “The Nevada Gaming Control Board congratulates and thanks all the stakeholders involved for successfully delivering such a spectacular event from the state of Nevada.”

AGA expecting Super Bowl bets to reach record numbers

The NGCB’s numbers should not come as much of a surprise. The American Gaming Association (AGA) predicted Americans would wager a record $23.1bn on Sunday’s game. Ahead of the showpiece match, the AGA surveyed 2,204 adults to predict wagering activity.

Findings from the survey suggested a record 67.8 million people were expected to place a wager, up 35%.

As to where players would bet, 11% of all bettors were predicted to do so with a licensed online sportsbook. The AGA said this shows Americans are continuing to migrate to the legal market.

GeoComply also finds rise in legal betting

Fraud prevention solutions provider GeoComply reported a 22.3% year-on-year increase in geolocation checks during Super Bowl LVIII.

In the minutes before kick-off, 14.75 thousand transactions per second were reported, the highest on record and almost double last year’s peak.

GeoComply says the increase in geolocation checks is positive for legal betting in the US. It says the rise underscores a shift towards a regulated, taxed and safe betting environment.

Looking across the entire 2023-24 National Football League (NFL) campaign, GeoComply customers added more than 13.7 million new accounts. This is 28% higher than in the previous season.

Nevada’s FY2023 record numbers

The Super Bowl records come after Nevada revealed its gambling revenue reached an all-time high of $15.5bn in 2023, exceeding the previous annual record by 4.6%.

As for sports betting, sports pool revenue for 2023 amounted to $481.3m. The Nevada Gaming Control Board also noted $240.7m of all sports pool revenue came from mobile betting.

Nevada’s growing role in the world of sports will see Las Vegas have teams in the NFL, National Hockey League and Major League Baseball by the end of 2025.

BetMGM are one of the companies looking to tap into the influx of sports events in Las Vegas, with chief executive Adam Greenblatt stating recently that 2024 would be the year the operator “unlocks” the city.

The Formula One race in the city last year attracted 300,000 fans and was a record-breaking weekend for BetMGM. The operator took three times the number of bets than any other F1 race in its history.

Flutter pens inaugural external B2B sportsbook deal with PMU

The agreement sees PMU become the first external brand outside the Flutter group to use the B2B sportsbook platform. It extends a partnership between the parties that launched in 2010.

PMU gains access to customer products and associated operational services via the Flutter platform. This is in addition to the continued provision of event management, fixed odds pricing and risk management services.

Flutter said PMU will also benefit from continued investment into the platform. This, it adds, allows for seamless sports betting product rollouts.

“In sports betting, we were looking to simplify our architecture through a turnkey solution and to concentrate our efforts on marketing and CRM,” PMU ecommerce director Emmanuel Vacher said. “Flutter’s offering meets this need. Alongside them, we are now engaged in a multi-year partnership. 

“Our common objective is, thanks to the expertise and technological capabilities of Flutter, to have within PMU.fr a leading sports betting offer, services and user experience such as for horse racing and to gain market share.”

Flutter chief strategy officer Tom Bowry added: “We are delighted that PMU have chosen to extend our partnership and become the first external brand to adopt our B2B sportsbook platform. 

“This sportsbook solution has been developed through a relentless focus on innovation. We are excited about our B2B sportsbook capabilities and the opportunities available to us in the future as we continue to invest to meet evolving customer needs and expectations.”

Another boost for Flutter

The deal is more good news for Flutter after a successful 2023. Last month, Flutter posted a 25% increase in revenue to £9.51bn (€11.18bn/$12.05bn) in the 12 months to 31 December.

The stand-out figure for Flutter in 2023 was US-facing FanDuel, with revenue rising 38% year-on-year to £3.06bn. 

However, there was also growth elsewhere, with UK and Ireland revenue up by 15% to £2.46bn. Flutter’s International arm, covering markets outside the US, UK and Ireland and Australia, saw revenue jump 36% to £2.29bn.

Meanwhile, Flutter last month also completed its acquisition of a majority stake in Serbian sports betting and gaming operator MaxBet.

Under the deal, struck in September 2023, Flutter agreed to pay €141m to purchase a 51% stake in the MaxBet business.

Penn to acquire Wynn’s NY sports betting licences, launch ESPN Bet in state

The acquisition gives Penn market access in New York state. As part of the deal, Penn will acquire Wynn Resorts subsidiary Wynn Interactive’s mobile sports wagering licences entity, WSI US, LLC, for $25m (£19.8m/€23.3m).

WSI US, LLC holds the sports betting licences issued to Wynn by the New York State Gaming Commission in 2021.

Upon relevant approvals, Penn will launch ESPN Bet in the state later this year. Penn partnered with ESPN in August last year, in a deal that saw Penn’s Barstool Sportsbook rebranded as ESPN Bet and launched across 17 US states in November.

Jay Snowden, CEO and president of Penn Entertainment, said this acquisition will expose ESPN Bet to the most prominent sports betting market in the US.

“This is an important development that will bring ESPN Bet to the largest regulated online sports wagering market in North America,” said Snowden. “Together with ESPN, we’re building a brand that is synonymous with sports betting, and operating in the New York market is key as we grow ESPN Bet across the US.”

More to follow…

SkyCity faces civil penalty proceedings in New Zealand

Proceedings will be filed against SkyCity on 16 February. These relate to SCML’s alleged non-compliance with the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Should the department’s claim be accepted in whole or partly by the high court, SCML may face a civil penalty. In line with the Act, SkyCity’s maximum liability for the case would be NZ$8.0m (£3.9m/€4.5m/US$4.9m).

Confirming the news in a statement, SkyCity says the pending proceedings follow a review of SCML’s compliance. SCML holds the licence for operating SkyCity land-based casinos in Auckland, Hamilton and Queensland. 

The draft pleadings set out five separate causes of action seen as “significant” compliance issues related to the Act. Details of these are not yet available but SkyCity says they mainly refer to historical matters. SkyCity adds that some incidents were previously self-reported to the department.

SkyCity also noted that since late 2021, it has been running an anti-money laundering and counter-terrorism financing enhancement programme to address compliance systems and correct historical shortcomings. This includes investment in people and technology, as well as reviews of processes and systems to identify areas for improvement.

SkyCity “disappointed” over non-compliance

Responding to the civil proceedings, SkyCity committed to working with the department to rectify any issues. 

“SkyCity is disappointed that it has not met the standards to which it needs to hold itself and this has resulted in the action taken by the department,” SkyCity said. “SCML and SkyCity will engage constructively with the department in relation to the proposed proceedings, with a view to resolving these matters expeditiously. 

“SkyCity is committed to continuing to uplift its processes and systems, particularly with respect to anti-money laundering and counter-terrorism financing and host responsibility matters.

“Given that the matter will be before the court, it would be inappropriate for SkyCity to comment further at this stage.”

Another blow for SkyCity

The proceedings follow a turbulent 2023, with SkyCity hit by a series of blows. One overarching concern for the operator is a potential licence suspension in New Zealand. 

In September, New Zealand’s secretary of the department of internal affairs applied to suspend SkyCity’s casino licence for an estimated 10 days. This was also in relation to the SCML subsidiary. It is not clear whether the civil proceedings relate to this case.

in september 2023, New Zealand applied to suspend SkyCity’s casino licence for an estimated 10 days.

There are also questions regarding SkyCity in Australia. Near the end of 2022, the Australian Transaction Reports and Analysis Centre launched federal proceedings against SkyCity over anti-money laundering failings at SkyCity Adelaide.

The operator in May 2023 launched a review into its counter-terrorist financing and anti-money laundering programmes. This is in line with an order from the Consumer and Business Services, the gaming regulator for South Australia. SkyCity in August also made a provision of AU$45m ahead of an assumed civil penalty from Austrac. 

In October, SkyCity announced Michael Ahearne is to step down from his role as chief executive. Ahearne is due to leave the business in March and will return to Europe and spend more time with his family.

Warning over 2024 earnings

The year ended with yet more concerning news for SkyCity when in December it warned adjusted EBITDA could decline in its 2024 financial year. This is despite it previously saying it expected to report an increase.

SkyCity said adjusted EBITDA should be between NZ$290.0m and NZ$310.0m, based on the first five months of the financial year. It posted $310.0m in adjusted EBITDA during FY23 and forecast a modest increase in FY24. 

However, several factors have led to SkyCity reducing guidance to the point where earnings could in fact decline. These include a reduction in electronic gaming machine revenue in New Zealand and a weaker-than-expected performance in Adelaide, Australia.