Month: March 2024

The ministry’s advisory explained that those with influence in India are prohibited from advertising illegal gambling operators in a surrogate manner. Those who do risk facing “rigorous scrutiny”.

Under the current system, the Indian government can issue notifications to intermediaries such as social media platforms to remove access to posts advertising illegal operators.

Beyond that, celebrities and influencers could also face proceedings under the 2019 Consumer Protection Act. This could lead to social media accounts being disabled, while further penal action can also be administered under applicable statutes.

The advisory highlighted the “significant financial and socio-economic implications of online betting” as reasons not to promote offshore operators.

CCPA warns celebrities on gambling advertising

Earlier this month, the Central Consumer Protection Authority (CCPA) also published an advisory against celebrity advertising. This came after a notable rise in influencer marketing of illegal gambling.

That was the latest of a number of government advisories on the topic. Multiple warnings have been issued to social media platforms against the promotion of betting platforms. Non-skill based gambling is still illegal in the majority of regions in India under the Public Gambling Act 1867.

The CCPA stated that those with influence marketing gambling give the impression that betting is acceptable, even if it’s illegal. As a result, celebrities are “equally liable” for the offence.

India’s gambling market

India’s government published new rules last January to regulate online gambling. In doing so, it stated that any online game offered must not be in violation of existing laws.

Proposals were also submitted for self-regulatory bodies, comprising online gaming businesses and being responsible for creating rules. Other areas of focus included added protection for players from harm, addressing addiction, preventing financial crime and safeguarding children.

However, a recent study found only a tiny percentage of online gamblers had a “comprehensive awareness” of industry regulations and were at risk of using unregulated operators.

The study, published by Ken Research and entitled Consumer Behaviour Analysis for Online Gambling Industry in India, identified that more than a quarter of online gamblers in India experience significant issues, ranging from identity theft to transaction complications.

As part of its clampdown on offshore operators, the Indian government issued blocking orders in November against 22 betting apps and websites it said had been operating illegally.

Yggdrasil received its software licence on 22 March 2023. This permitted it to create, supply and instal gaming software used for online games in Sweden. This licence expires on 20 June 2028.

The regulator said it began its investigation on 16 January 2024, when it began to investigate websites being run by unlicensed operators in Sweden. It is understood that Yggdrasil was a supplier for one of these websites, according to Spelinspektionen’s decision outline.

This contravenes chapter 11, section 6 of Sweden’s Gambling Act. This section outlines that game software licensees must not provide software for anyone that does not hold a licence.

In response to the investigation, Yggdrasil said it had corrected the issue on 23 January 2024. It stated that the contravention had come about due to a breach in contract between itself and a retailer. Yggdrasil stipulated that it no longer “manufactures, supplies, installs or changes gaming software for players without the necessary licence”.

The regulator acknowledged that Yggdrasil complied with its order, but added that this is expected of all licensees.

“Yggdrasil has promptly taken corrective action and removed games and all other types of assets belonging to Yggdrasil from the website in question and ceased the violation since it was notified by the Gaming Authority,” reads the decision.

“The collaboration cannot, however, be considered to have been active in a different way than what one must normally be able to expect from a company that has chosen to operate licensed activities under supervision.

“The mitigating circumstances do not outweigh the seriousness of the offense in such a way that it can be considered minor or excusable. In summary, the Swedish Gaming Authority assesses that the violation is serious.”

Decision to impose a warning and fine

Spelinspektionen concluded that a warning would be given rather than revoking Yggdrasil’s licence in Sweden altogether. This is also combined with the penalty fee issued.

The fee must be at a minimum of SEK5,000 and set at a maximum of 10% of the company’s turnover in relation to the preceding financial year. As Yggdrasil’s net sales hit €514,566 in 2023 – the equivalent of SEK5.8m – the fee could have been as high as SEK580,000.

Yggdrasil has not responded publicly to the warning and penalty fee.

This comes after a string of regulatory actions taken by Spelinspektionen. In December, Casino Cosmopol was issued with a fine of SEK2m for a number of anti-money laundering (AML) failings. The regulator also issued a warning to Svenska Spel at this time.

According to the regulator, Casino Cosmopol “failed in its work with customer knowledge in several areas” in reference to AML.

Spelinspektionen also banned Moonrail Limited and Perfect Storm in November 2023 for operating without a licence. Both operators had found to be targeting their websites to Swedish customers. This included information such as the terms and conditions section of their websites and marketing materials listed in the Swedish language.

The counterclaim against Entain has been submitted by BetCity’s former owners, which consists of various members of the Singels family. Also included are former CEO Melvin Bostelaar and former marketing director Robert Kooiman.

It comes in response to Entain’s original accusation that undeclared regulatory investigations at the time of the acquisition meant the Dutch-facing business was worth as much as €156m (£133m/$169m) less than assumed.

Entain acquired BetCity for €450m in January 2023, with the deal ultimately giving it access to the Dutch market. BetCity was one of the initial 10 licensees in the Netherlands.

However in January this year, Entain launched a compensation claim after details of two regulatory cases came to light. Entain said in the claim it was unaware of the investigations into BetCity when it acquired the business.

In a document obtained by CasinoNieuws.nl, Entain said BetCity’s former owners signed papers stating they were not aware of any ongoing regulatory investigations. The filing claims several personnel at BetCity knew of the cases but did not declare this information. 

The Dutch gambling regulator Kansspelautoriteit (KSA) was leading both investigations.

Entain was “ultimately aware” of the investigations into BetCity

In the counterclaim, the plaintiffs accuse Entain of being aware of the investigations that were taking place. This was during the acquisition stage of 2022 and 2023.

The former owners of BetCity filed the counterclaim with the High Court of Justice in England and Wales on 19 March 2024. In total, it is seeking €143m from Entain Holdings (Netherlands) BV and Entain Holdings (UK) Limited.

The two investigations, which BetCity was informed about in April 2022, related to it sending promotional emails to young adults. This is in breach of Dutch law and resulted in a €400,000 fine.

The second investigation, launched in May 2022, referenced shortcomings with anti-money laundering and terrorist financing measures. BetCity was fined €3m for such failings.

In the counterclaim, the plaintiffs highlight that in November and December 2022, the BetCity team informed Entain of the ongoing investigations in several messages.

These included emails, telephone conversations and a meeting on 17 November 2022 regarding the two investigations that took place between the signing of the acquisition agreement in June 2022 and the deal’s completion in January 2023.

According to the counterclaim documents, it is understood that on 10 December 2022, Entain also made it clear in a letter that it was concerned about the two investigations.

Changes in BetCity structure resulted in lower earn-out

After the acquisition and the appointment of Vic Walia as CEO, Entain made several adjustments to BetCity’s business operations. According to Entain, these changes were made to act in accordance with Dutch law – which Entain claims BetCity was still in violation of.

However, the group of former owners (the plaintiffs), emphatically deny this in their counterclaim. It is claimed that on the date of the agreement and afterwards, BetCity was already acting in compliance with the WWFT, the Netherlands’ Money Laundering and Terrorist Financing Prevention Act.

Due to the adjusted business operations, BetCity earned €22m less after the acquisition than projected as part of the earn-out for the former owners. This resulted in a loss of €83m for the plaintiffs.

What happens next?

The High Court of Justice in the UK will hear both cases. While court dates have not been set for either case, this is likely to be a long and protracted saga.

Such has been the controversy around the case, rumours have begun to swirl about the possibility of Entain selling BetCity. Earlier in March, the Financial Times reported Entain could be open to a sale among multiple other assets.

The news comes following its full-year 2023 net loss of £936.5m, announced on 7 March in its annual earnings report.

Entain is understandably keen to reduce its asset exposure given the cost of its extensive acquisition campaign.

According to the Financial Times, operator brands directly integrated into the company’s platform will be given priority for sale. In total, these accounted for close to a third of net gaming revenues in the first half of last year.

Flinck currently serves as chairman of Swedish digital health start-up dr HUD. He would take the same role at Catena should the appointment be approved at the group’s AGM on 15 May.

Earlier in his career, Flinck had two spells working for strategic management business Boston Consulting Group (BCG).

Between January 2015 and October 2023 at BCG, Flinck held several senior roles including managing director and senior partner. During his earlier spell, from March 2005 until November 2012, he was a principal for the consultancy.  

In addition, he spent over two years as head of group strategy at engineering group Sandvik.

Other board changes being considered

Meanwhile, Catena has announced another proposed board appointment in Dan Castillo. An investor in the group since 2015, Castillo has previous experience of listed board work in Kotipizza.

Castillo also currently serves on the boards of five companies across different sectors. These include Quartr.com in the fintech market and Hope Studios in movie production.

In addition, the Catena nomination committee has put forward plans to reappoint four of its current board members. These include Øystein Engebretsen, Theodore Bergquist, Adam Krejcik and Sean Hurley.

Göran Blomberg, Esther Teixeira-Boucher and Austin Malcomb have declined re-election as board members. Therefore, should the appointment by approved at May’s AGM, the new-look Catena board would shrink from seven to six members.

A new era for Catena?

The proposed board changes come following the announcement last month that CEO Michael Daly has left the business.

Daly joined Catena in April 2018 as general manager for the US. He went on to serve as general manager for the Americas and president for North America, before becoming CEO in March 2021.

Daly’s exit came shortly after Catena published a disappointing set of results for the 2023 financial year. The group registered a sharp decline in revenue. 

One major area of concerns was US revenue, which fell 21% to €67.1m (£57.5m/$72.7m). Some 80% of all revenue at Catena comes from the US, with the group active in 27 North America jurisdictions.

Group adjusted EBITDA from continuing operations fell by 47% to €25.4m, corresponding to an adjusted EBITDA margin of 33.0%.

On March 5 2024, Catena appointed Manuel Stan as the company’s new CEO. A veteran of almost 20 years in the industry, Stan spent 16 years at Kindred Group, where he led marketing teams and served as SVP North America.

Stan will lead Catena Media’s North American and global market operations from Las Vegas, and will assume his position on July 1, 2024.

Lottery saw a GGR increase of 1.5% to €946.8m in 2023. For the Casinos Austria division alone, GGR was upped by 15.8% to €304.5m, while Casinos Austria International brought in €212.1m.

Consolidated profit for the year came to €182.8m, up by 18.3%. Looking at Casinos Austria’s business segments, GGR at sports betting operator Tipp3 – in which Austrian Lotteries has a 56% stake – fell 2.7%. The group noted that 2023 had been a year without any major sporting events.

Video lottery terminal business WINWIN saw GGR increase by 3.3% year-on-year.

The group contributed €724m in taxes and duties in 2023, 4.8% higher than in 2022. Casinos Austria noted that this upholds its position as “one of the largest taxpayers in the country”. Gaming-related taxes grew 2.3% to €612.0m.

But the largest jump of the year came from a combination of other taxes, duties and social security contributions, which increased by 20.5% to €112.0m.

Martin Škopek, Casinos Austria’s CFO said the company had performed well in spite of an “economically challenging environment” brought on by the Covid-19 pandemic.

“Despite an economically challenging environment in recent years, we have also managed to be economically successful with an entertainment offering in 2023,” he said.

He added that the group’s realignment strategy – which kicked off in 2020 – is beginning to pay dividends.

“The path of realignment and innovation that we have successfully taken is paying off thanks to the commitment and know-how of our employees, which means we are well prepared for all the challenges that lie ahead.”

Realignment strategy paying off

Casino Austria’s board agreed to implement the restructuring plan in July 2020 following a proposal from the company’s management team. This outlined plans to reduce costs by over €40m and majorly reduce employee headcount. A report from Austrian newspaper Kurier said redundancies could hit 500 employees.

At the time, then-chief executive Bettina Glatz-Kremsner called the move “the largest reorganisation in the history of the company”.

The restructuring also aimed to lower costs by reducing personnel and material expenses and carrying out efficiency reviews of its casino operations.

Erwin van Lambaart, CEO of Casinos Austria, said the 2023 results show a commitment to focusing on the group’s operations, for the benefit of customers.

“Looking at the past financial year makes me proud; once again the Casinos Austria and Austrian Lotteries Group achieved a positive balance and also made a significant contribution to the federal budget,” he commented. “This balance sheet is also a valuable confirmation of our company’s course to focus even more closely on our company value and the experiences we offer our guests and customers, especially in the post-Corona period.”

New tender process ahead

Van Lambaart also confirmed that there would be a new tender process ahead to regain licensing compliance in Austria.

“… we’re going into the new year with great confidence, with our most important goal in mind: regaining the licenses for Austria, for lotteries, casinos and also online,” he explained. “There is no call for tenders yet, but we will apply for all licences and prove that we are the best partner for this in the future.”

Casinos Austria is currently operating on licences that are set to expire in 2027 and 2030. It is unclear when the new tender process for licences will begin.

As the world of sports betting continues move at warp speed, we’re doing our best to keep up, and keep you in the know.

Cavaliers coach: Gambler threatened me

Cleveland Cavaliers coach JB Bickerstaff told reporters on 20 March that a gambler tracked down his phone number and sent “crazy messages about where I live, my kids, and all that stuff”.

Bickerstaff went on to stay he shared the information with stadium security, the Associated Press reported. The gambler was located and escorted out of Rocket Mortgage Field House. The coach did not press charges.

Ohio’s regulator last summer was given increased powers to deal with bettors who threaten athletes when Governor Mike DeWine included in his budget language that would allow the Ohio Casino Control Commission to issue a lifetime ban to harassers. It was the first state to pass legislation tackling harassment in sports. Last month, the state made it illegal to offer or place prop bets on individual college athletes.

In January 2023, Dayton basketball coach Anthony Grant reported his players were threatened after giving up a 14-point halftime lead and losing a game. At that time, the OCCC threatened a lifetime ban.

MGC names new executive director

The Massachusetts Gaming Commission 20 March announced that Dean Serpa, a former aide for ex-Governor and current NCAA chair Charlie Baker will be its new executive director. The commission voted unanimously 18 March to offer Serpa the position.

Serpa replaces Karen Wells, who resigned in July 2023 after 10 years in the position. MGC general counsel Todd Grossman was the interim director.

His hiring comes during an unusual time for the MGC, as commission chair Cathy Judd-Stein announced her retirement in February, and her last day was 21 March. Governor Maura Healy’s office appointed Commissioner Jordan Maynard interim commission chair effective 22 March.

The MGC also formally announced Caitlin Monahan as its new Investigations Enforcement Bureau chief. Monahan has been the interim director since Loretta Lillios resigned last summer.

Changes coming to NY sports betting?

The latest proposed New York senate budget has legislation that would expand what markets are available for bettors in New York. Spectrum News 1 reported 21 March that pre-game coin tosses, prop bets, and awards, like the Major League Baseball’s Cy Young or the NFL’s Walter Payton Man of the Year Award are included in the proposal.

Other new markets for the Super Bowl could be wagering on the length of the national anthem or what color Gatorade the winning Super Bowl coach gets doused in. 

Also proposed is earmarking 1% or a minimum of $6m per year for problem and responsible gambling services. 

Louisiana lawmaker wants wagering ad ban

In the middle of Problem Gambling Awareness Month, Louisiana freshman Representative Shaun Mena filed a bill that would place limits around sports betting ads.

Mena, who represents New Orleans, home to the Caesars SuperDome and the biggest land-based casino in the state, told WDSU his goal is protect the “young men and women who are addicted to these products”.

Louisiana’s legislative session opened 11 March, and lawmakers have until 2 April to introduce bills. The crossover deadline is 31 May, three days ahead of adjournment. Louisianans legalised sports betting in 55 of 64 parishes on the November 2020 ballot, and digital sports betting launched 28 January 2022.

Other Louisiana lawmakers don’t think the idea is business friendly, and told the TV station they thought Mena would struggle to move it forward. The bill has been referred to the House Committee on Committee on Administration of Criminal Justice.

Rebet the latest in ‘social sports betting’

Four Dartmouth University students launched a free-to-play social sportsbook on 18 March, one day after NCAA basketball conference tournaments ended and a day ahead of the First Four in Dayton.

The concept is to bring together sports fans and bettors into a community where they can share their love of sports, fandom, and betting, according to multiple media reports.

Rebet does not charge customers for peer-to-peer wagering. Rather it makes money through a “coin system”, where users are allotted a set number of free coins per day, but can purchase more. The site has two kinds of currencies, and offers free-to-play betting and live data on 60 pro sports leagues.

“Our focus is on what people think of the business itself, are these features that we believe are changing the industry?” Rebet CEO Carson Hubbard told Sports Handle. “Are these features that people care enough to use? And, are the features important enough to users where they’re actually going to switch from their traditional sportsbook to the Rebet platforms.”

Wisconsin’s Oneidas increase access to sports betting

The Oneida Nation, the first in Wisconsin to compact with the state to be able to offer sports betting, last week went live on its lands with the Oneida Casino Sportsbook digital app, according to Indian Gaming.

The launch means anyone on Oneida lands can bet on the platform via a mobile device, in addition to betting in person. Accounts must be funded in person at one of two casino locations and the reservation’s PreK-12 school and land are geofenced out.

“This strategic opportunity allows us to better meet the growing demands of legal sports wagering,” Louise Cornelius, Oneida Gaming General Manager, told Indian Gaming.

Since the Oneidas in 2021 compacted with the state for sports betting, two other tribes have followed suit. Eleven tribes have gaming compacts with the state. As each compact comes up for renegotiation, it is expected that all tribes will add sports betting.

ICYMI from iGB

Defendant claims ‘character assassination’ in DraftKings’ court case

Florida Supreme Court won’t hear Florida sports betting case

US Representative Tonko files bill that would require states to get federal permission for wagering

New Washington, DC bill seeks to open market, do away with lottery monopoly

Georgia’s sports betting bill isn’t going anywhere

Maryland online casino bill passes House and heads to Senate

Law no 31557, which regulates online gaming and sports betting, went into effect on 9 February.

Operators had until 10 March to apply for a licence. Mincetur had warned those already active in the Peruvian market that they could face a fine of up to Sol990,000 (€245,394/£212,401/$257,838) or criminal prosecution if they did not apply.

That initial application process has now closed for companies already active in Peru. The country’s minister of foreign trade and tourism, Juan Carlos Mathews, confirmed 145 requests had been received from both national and international companies. Those not previously in the Peru market can continue to apply.

During the initial 30-day period period, 144 linked service providers were registered with seven international certification laboratories gaining accreditation. This included Gaming Laboratories International.

Mincetur also received 184 applications seeking approval for technological platforms and game modalities.

“This is an important step that Peru is taking to regulate this activity, not only because of the economic movement it generates and the revenue it will have, also because of the need to provide security to citizens who enter and use these applications,” said Mathews.

Specifics of Peru’s online gambling market

Mincetur approved gambling regulations in Peru in October. Supreme Decree 005-2023-Mincetur outlined the requirements that operators must meet to offer their services.

A tax rate of 12% of gross gaming revenue (GGR) has been set for operators as of 1 April. Mincetur estimates that online gaming and sports betting will produce around Sol162m a year for the Peru state. It also projects that around Sol3.8bn was placed in bets during 2022.

Of the tax, 40% will go to Mincetur for control and oversight of the operation of online betting technology. Of the remainder, 20% each will go to the public treasury, the Ministry of Health’s mental health department and the Peruvian Sports Institute for the development of sports in Peru.

However, there will be no tax on players’ winnings, with taxes only applying to companies.

Licence fee triples

Peru’s president Pedro Castillo initially signed Law no 31557 into effect in August 2022.

However, after Law no 31557 came under fire due to concerns over foreign operators being undertaxed, Law no 31806 was passed in May 2023.

This amended a number of provisions. Among the changes was the licence fee cost, which tripled to Sol2.97m. The new law also ended the practice of retail licences.

Under the new regulations, the government will ask points of sale to pay a warranty of Sol24,750 in order to offer gaming services.

Revenue for the 12 months to 31 December 2023 hit $108.7m (£85.2m/€99.6m). This was 42.1% ahead of $76.5m at Gambling.com Group in the previous year.

Growth was consistent for the group throughout the year, with revenue rising in Q1, Q2 and Q3. This quarterly growth trend continued into Q4, during which Gambling.com Group said revenue hit a record high.

The group noted several developments in 2023 that helped drive growth. These included the launch of the Casinos.com domain, as well as a new partnership with UK media publisher The Independent.

North America growth continues 

However, analysing the year, CEO Charlies Gillespie (pictured) noted the impact of the group’s ongoing expansion in North America. He said this has helped drive growth significantly in recent years, with this set to continue in 2024 and beyond.

“With consistent execution over the years, and especially over the past four years in North America, we have established one of the strongest and highest-growth performance marketing businesses in the online gambling industry,” Gillespie said. 

“Our Q4 and full-year North American revenue increased 103% and 69%, respectively. This growth was driven by new state launches, strong increases in ‘same-state’ sales and our blossoming media partnership initiatives. 

“We are confident in our ability to continue growing our North American market share this year. We will also benefit from the recent launch of online sports betting in our home state of North Carolina, where we are off to a strong start since the market launched.”

Widespread success for Gambling.com Group

While revenue growth will be the headline figure in 2023, this had a trickle-down impact on other figures.

First, higher revenue helped offset increased spending in all areas. Cost of sales was 203.3% higher at $9.1m, while sales and marketing expenses climbed 4.8% to $35.3m, technology costs 51.5% to $10.3m and general and administrative spend 24.6% to $24.3m.

After also accounting for lower finance income and increased financial expenses, this left a pre-tax profit of $20.1m, some 593.1% more than $2.9m in the previous year.

Gambling.com Group paid $1.9m in tax but also accounted for positive foreign currency exchange impact of $4.8m. This resulted in a net profit of $21.1m, in contrast to $2.4m in 2022.

In addition, adjusted EBITDA for the year was 52.3% higher at $36.7m.

Strong end to 2023 with record Q4

As noted by Gillespie, Gambling.com Group benefitted from a positive end to 2023. Revenue in Q4 reached a record $32.5m, an increase of 52.6%.

Spending-wise, cost of sales was up, while expenses increased across sales and marketing, technology and general and administrative. However, finance costs were reduced, while the group also noted $620,000 in finance income.

As such, Gambling.com Group posted $6.2m in pre-tax profit, in contrast to a $4.7m loss in the previous year. Income tax payments totalled $159,000 while positive foreign currency exchange impact hit $5.0m.

This left a comprehensive net profit of $11.3m for Q4, up by 140.4%. In addition, adjusted EBITDA jumped 53.6% to $10.6m. 

Gambling.com Group seeks more growth with Freebets.com acquisition

With an eye on further expansion, Gambling.com Group has announced a deal to acquire Freebets.com and related assets.

The group will pay a total consideration of between $37.5m and $42.5m to purchase the business. This comprises $20.0m on closing and $10.0m six months later with between $7.5m and $12.5m due one year after completion, subject to the revenue performance in 2024.

The group will fund the acquisition with existing cash on hand, borrowings under its new credit facility and future cash flow. The deal is expected to close early next month.

Gambling.com Group anticipates the purchase to produce revenue of approximately $10.0m and incremental adjusted EBITDA of approximately $5.0m during the nine months to the end of 2024.

“This acquisition will provide us with another big brand and assets that complement our existing website portfolio in a number of our key-focus markets, enabling us to drive further growth which is both high margin and highly accretive,” Gillespie said. 

“By operating the assets on our technology platform, we expect to unlock their full potential. We are confident that this latest acquisition will create incremental shareholder value in the same way we have done with previous acquisitions.”

Expectations high for 2024

Taking this into account, Gambling.com Group has issued positive guidance for its 2024 full year.

Total revenue is expected to be between $129.0m and $133.0m. The midpoint of this range would be 20.5% ahead of 2023. As for adjusted EBITDA, the forecast range is $44.0m to $48.0m, with the midpoint being 25.3% higher year-on-year.

The group says this guidance assumes no other US markets will open in 2024, nor that it will benefit from new acquisitions besides Freebets.com.

“Gambling.com Group is positioned for continued revenue, adjusted EBITDA and free cash flow growth in 2024 and beyond across all of our markets,” Gillespie said. 

“As significant shareholders, the founders and senior management of Gambling.com Group remain fully aligned with all owners and we are steadfastly committed to enhancing shareholder value.”

Revenue in February was at the same level as in the same month last year. However, it was half the $2.4m posted in DC in January of this year.

As for player spending, handle for the month reached $12.0m. This was down from $12.6m in February 2023 and 25.0% behind January’s total spend of $16.0m.

Caesars edges ahead in DC

Looking to individual operators, Caesars took a marginal lead in terms of revenue. During the month of February, it posted $409,386 in revenue from $3.3m in bets.

GambetDC slipped to second in DC – but only just – with $403,646 in revenue. This came despite having a much higher handle than Caesars, processing $5.3m worth of bets. 

Next came BetMGM, which generated $294,651 in revenue off $2.6m in total wagers for the month. FanDuel followed with revenue of $84,220 and a $565,595 handle.

Turning to Class B licensees in DC, Grand Central, partnered with Elys Game Technology, was the more successful with $25,946 in revenue and a $234,615 handle.

Cloakbook rounded off the market with revenue of $1,432 from $15,050 in total wagers in February.

Changing of the guard in DC?

The latest monthly results come amid reports of major change in the DC market. This month, a letter from the Office of Lottery and Gaming (OLG) to the DC City Council, obtained by iGB, suggests FanDuel will replace GambetDC as the only sportsbook platform available in DC.

Dated 8 March, the letter confirms the OLG “approved Intralot’s request to select FanDuel as a new subcontractor” for the lottery’s sports wagering platform. However, the letter does not indicate when FanDuel might launch its platform citywide.

Intralot, which contracts with DC, has struggled to put out a competitive product in GambetDC. The platform lost $4.0m in 2021.

“OLG and Intralot have evaluated the current platform and believe that FanDuel and its industry-leading platform will perform better within the highly competitive DMV region,” OLG executive director Frank Suarez wrote in the letter.

Bill seeks legal competitive digital sports betting

In other news, a DC councilman, Kenyan McDuffie, has filed a bill that would allow for an open, competitive market in the US capital. Consumers currently have only a single choice for online betting.

The bill would create a new Class C licence, under which operators could offer online sports betting citywide. GambetDC is currently the only platform available across all of DC.

Other operators in DC can only offer their digital platforms within a limited zone around their retail partner’s location.

In addition to the study, which was conducted by the Analysis Group, 2,389 current and “prospective” gamblers were surveyed.

The study shows that revenue at physical casinos in the legal igaming states of Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and West Virginia increased by 1.9% following the introduction of online casino.

The study does not break down which land-based casinos consumers visited or show if players were brand loyal.

Among the results of the survey:

Total gaming revenue in current online casino states was 46% more in 2023 than before online casino went live in those states; Land-based casinos in Maryland, where lawmakers are contemplating legal igaming, would bring in an additional $224m in revenue if online casino were made legal;Maryland’s total market is projected to grow from $2bn in revenue per year in 2024 to $3.9bn in 2029; andOf the legal igaming states, Pennsylvania has seen the most revenue growth since its introduction in 2018. Total gaming revenue in Pennsylvania grew 58.9% between 2018-23.

Online casino increases frequency of gaming, tax revenue

The study revealed that online casino can create new opportunities to increase frequency of gaming, bring tax revenue that is now lost to off-shore or out-of-state platforms back into a state and expand the market due to brand loyalty. This could bring customers from other sectors, like sports betting, onto an online gambling platform.

It also outlined that land-based casinos offer wholly different experiences from online casinos and can attract different audiences.

“The majority of customers who engage in igaming indicate that they have not decreased their land-based casino gaming activity (in terms of both visit frequency and total spend) after starting igaming,” the authors wrote.

Land-based casinos also offer additional activities that some find of interest.

Survey respondents echoed the sentiment: “It’s nice to do it online on a licensed casino app, but it’s also nice to do it at a real casino,” a 41-year-old male from Michigan wrote.

“Because casinos have other activities I would enjoy and there is plenty of stuff to do,” responded a 29-year-old male from New York. “It would make a good vacation.”

From the survey, Analysis Group learned that while 1,118 of respondents had participated in igaming in the last 12 months and 1,188 had participated in online sports betting, at least 64% of those in either category had crossed over to engage in another form of online gambling.

Of those surveyed, Analysis Group polled 200 people from each of the six already legal online gambling states and from each of the five projected legal states. Respondents were all aged 21 or over and said they had gambled in the last year. The online survey ran from 17 January-6 February.

Analysis projection: Revenue could nearly double in five years

Multiple US operators offer online casino and sports betting, including national players BetMGM, Caesars Entertainment, DraftKings, Fanatics and FanDuel and regional players BetRivers and Penn Entertainment. Online casino gives those companies the opportunity to cross promote their online casino and sports betting brands.

When looking at five states that could leglaise online gambling – Illinois, Louisiana, Massachusetts, New York and Virginia – Analysis Group projects that revenue could grow from $5.9bn in 2025 to $10.4bn in 2029.

In current online gambling states, 49.4% of respondents said they visit land-based casinos with the same frequency as before igaming was legal. A total of 26.5% visit brick-and-mortar casinos more often and 18.7% visit them less frequently.

For the five projected igaming states, results were similar, with 49.1% of respondents saying they would continue to visit physical casinos with the same frequency. Meanwhile, 28.3% said they would go more often and 16.8% said they would go less often.

Thoughts echoed by participants in projected online casino states

In terms of how much those surveyed said they spend at land-based casinos, 52.2% of those in legal igaming states said they spend the same as before online casino was introduced, while 26.1% said they now spend more. A total of 16.9% said they now spend less.

Those from the five projected online casino states had similar responses, with 49.4% saying they would expect to spend the same amount of time at land-based casinos while 28.6% said they would likely spend more and 16.5% said they would likely spend less.

The analysis uses what is refers to as a “unique model” to project online gambling revenue based on sports betting due to the similarities between the two. It also provides a comprehensive look at the history of igaming in the states in which it is legal, summarises previous similar studies done between 2008-2024 and culls data from eight sources.

“This study reinforces the empirical evidence regarding the market-expanding effect of igaming on the overall gaming market and the complementary nature of igaming and land-based casinos,” the study reads.