Month: April 2024

Handle was 15.7% higher than $433.0m in Indiana in March last year and 22.5% more than $408.7m in February. The total was also just 2.5% behind the all-time monthly high of $513.7m posted in November 2023.

Basketball again proved the most popular sport to wager on, drawing a total of $167.9m in total bets in March. The state is home to National Basketball Association team the Indiana Pacers.

In contrast, $9.9m was wagered on baseball and just $1.7m American football. A further $173.0m was bet on other sports and $148.1m parlay bets.

Indiana revenue dips to $39.4m

While handle was higher year-on-year, the same could not be said for revenue. In total for March, taxable adjusted gross revenue amounted to $39.4m.

The monthly revenue total was 7.9% lower than $42.8m in March 2023 and only 3.7% more than $39.0m in February. 

Indiana does not publish a sports-by-sport breakdown for monthly revenue.

DraftKings and Ameristar Casino retake the lead

In terms of individual operators, DraftKings and partner Ameristar Casino moved back into the lead in Indiana. The partnership generated $14.5m in revenue from $186.5m in wagers during March.

FanDuel and Blue Chip Casino, which led in February, slipped to second, but only by a small margin. Revenue was only $9,481 lower than DraftKings and Ameristar Casino, while handle hit $153.7m.

Elsewhere, Belterra Casino, another FanDuel partner, posted $3.2m in revenue off $43.5m in total bets. 

Not far behind was Hollywood Lawrenceburg and ESPN Bet with $2.2m from $35.1m. French Lick Resort and Bet365 followed with $2.2m off a $31.3m handle. 

Harrah’s Hoosier Park and Caesars was the only other partnership to generate more than $1.0m in revenue. For March, revenue totalled $1.9m and handle $30.1m.

It was also noted that Indiana was able to generated some $3.7m in sports betting tax during the month.

The monthly total was some way ahead of the $392.7m wagered in Tennessee in March last year. It was also 25.2% more than the $378.2m spent by players in February of this year.

However, the March total was some way short of the record in Tennessee. Players wagered an all-time monthly high in November 2023.

After taking into account $1.6m in adjustments, cross handle for Tennessee in March was $472.0m.

In terms of privilege tax from sports betting, the state collected a total of $8.7m. This was up 24.8% from February’s $7.0m but 0.5% down on the previous year, despite the handle rise.

The Tennessee Sports Wagering Council does not publish data regarding monthly revenue, nor any information on individual operator performances.

Who is active in Tennessee?

While data on Tennessee is limited, the Volunteer State does feature some of the leading names in US sports betting. BetMGM, FanDuel and DraftKings have all been active since the state opened its legal market in November 2020.

One of the most recent additions is Fanatics Sportsbook, which went live in August last year. ESPN Bet is also a relative newcomer, rolling out its brand last November as part of a wider launch across 17 states. 

Other brands active in the state include Hard Rock Bet, which launched in Tennessee in September 2022. In addition, Caesars Sportsbook runs sports betting via a multi-year partnership with Tennessee-based NBA team Memphis Grizzlies. 

BlueBet was found guilty of 43 charges of displaying gambling advertising on or above a public road. This is an offence under the Gambling Regulation Act 2003 in Victoria.

The VGCCC investigation following a complaint from a member of the public. During two weeks in August and September 2022, BlueBet adverts appeared on digital billboards at several locations on freeways. 

Such breaches led the VGCCC to file charges against BlueBet and the case has since been heard in court. During the court hearing, Magistrate Greg Thomas said he found it difficult to accept BlueBet’s defence that it did not know it was breaching the law, given the prime position of the billboards to target males aged 15-54 years old. 

Thomas did not record a conviction but said if the breaches were accidental, this showed a “high degree” of negligence. Ruling on the case, BlueBet was found guilty of 43 charges of displaying gambling advertising on or above a public road.

Thomas said that he would have fined BlueBet $70,000 and recorded a conviction. However, considering the guilty plea, cooperation with the VGCCC and changes BlueBet implemented to prevent these breaches from happening again, a lower amount was agreed.

BlueBet must now pay the $50,000 and also cover all costs agreed with the VGCCC. 

“Gambling advertising has no place on public roads where it is readily visible to children and other vulnerable groups,” VGCCC CEO Annette Kimmitt said. “These places are especially difficult to avoid as part of day-to-day activities. This decision sends a clear message to wagering providers that flout these protections for our community.”

Victoria operators face new online measures

The ruling comes in the wake of Victoria introducing new rules regarding online gambling accounts. These include how players view their spending and losses.

Effective 1 April, the changes focus on how certain information is displayed to players within their online gambling accounts. This includes information on spending, with their net loss now to exclude free and bonus bets. In addition, players’ monthly net win statements will subtract all stakes from their total pay-out amount.

Meanwhile, licensees must use plain English and avoid unnecessary jargon when presenting data. Gambling harm messaging should feature on monthly statements.

Victoria has been taking steps to better protect consumers from gambling harm. In recent months, the VGCCC has increased its efforts to clamp down on operators breaching rules.

This month, MintBet was fined AU$150,000 for repeated breaches of responsible gambling rules. In January, Tabcorp was ordered to make most of its electronic betting terminals cashless following multiple incidents of underage gambling.

New era for BlueBet

As for BlueBet, the fine will come as a blow but will not distract from the recent acquisition news. Last week, BlueBet entered a binding asset sale agreement to acquire the Betr wagering business. 

This, BlueBet said, will allow it to create an enlarged organisation in Australia with increased scale and market share. BlueBet will issue approximately 265.4 million fully paid shares to Betr shareholders. This equates to around 56.9% of BlueBet’s current shares.

The deal is subject to closing conditions, including the backing of BlueBet shareholders. BlueBet “unanimously” recommended shareholders vote in favour of the merger, saying it will create material value.

If all conditions are met, BlueBet expects to complete the deal by 1 July.

Stålros takes on the CEO position after almost 10 years as chief operating officer of Relax Gaming. 

He is replacing Simon Hammon, who has served as Relax CEO since 2022 after three years as chief product officer.

Hammon joined Relax as CPO in 2018 after more than six years at NetEnt, which saw the studio launch some of its most successful titles.

During his time as CEO at Relax, Hammon oversaw the continued development of Relax’s Money Train series, considered to be one the industry’s most popular set of titles in recent years.

Under his watch, Relax also launched its Dream Drop progressive jackpot in 2022, which has so far made 14 players millionaires since its launch.

Hammon will now remain with Relax until October 2024 to support the handover process.

As an experienced gambling executive, Stålros held several other industry roles before joining Relax in January 2015. These included business development manager and head of poker operations at Kindred-owned Unibet.

In addition, Stålros spent more than two years at Ladbrokes Egaming. Here, he worked as customer development manager for poker and also as a marketing executive. 

“Having the opportunity to step up as CEO after seeing the company grow from 30 to 350 people during my time as COO is tremendously exciting,” Stålros said. “I’m humbled by the task. It’s the strength of the team that surrounds me which makes me even more motivated about the challenge.”

Stålros set to drive “ambitious” growth trajectory at Relax

Relax chairman Patrik Österåker also commented on the appointment. In his statement, he highlighted Stålros’ extensive knowledge of the business and his confidence that Stålros will continue to drive Relax’s growth plans.

“Martin has been involved with Relax from the very early days and has had a material impact on the success of the company,” Österåker said. “As the business and organisation continues to mature and grow we feel that Martin has the ideal profile needed to support and guide us on our ambitious growth trajectory. 

“Martin has full support from the board to implement the strategy set out for Relax Gaming.”

Outgoing CEO Hammon added: ““Martin is the natural choice to take the reins at this pivotal junction. Having proudly invested the past five years in Relax’s outstanding growth journey, it is safe to say that I wholeheartedly believe in and will always cherish the company and team within it.

“As Relax moves into its next stage, Martin’s extensive understanding of the company’s DNA, offering, and team, along with his passionate yet pragmatic approach, will enable him to successfully steer Relax to achieve all the goals set. 

“It has been a true honour serving as CEO of Relax gaming for two years, and I look forward to seeing what the future brings them.”

Relax makes US debut

The appointment comes just a few months after Relax expanded into the US market. Relax secured a vendor transactional waiver for New Jersey towards the end of last year. The provider is partnering with BetMGM in the state.

Under its US name RLX Gaming, the supplier’s slots selection is now available in the US. This includes titles such as The Great Pigsby and Epic Joker.

The move follows a successful launch in Ontario, Canada in 2022. The company sees its New Jersey debut as the next landmark step in its North American expansion.

To recap, the OLG in March alerted the DC Council that it would be unwinding its chronically underperforming sports betting platform, GambetDC. The platform is run by lottery vendor Intralot.

Under its existing contract, the agreement will expire on 14 July. In March, OLG approved Intralot’s request to subcontract online sports betting to FanDuel.

Now the agency will request a two-year extension for the soon-to-expire deal. If approved, the deal could mean that FanDuel would have a two-year head start on digital sports betting in the District.

That two years, lottery chief Frank Suarez told the DC Council’s Committee on Business and Economic Development, would allow it enough time to issue an RFP (request for proposal). This would be either for a new vendor or multiple new vendors.

Councilmember Kenyan McDuffie has filed a bill that would create a competitive marketplace in DC. This would be in contrast to the current single-operator model. The DC Council has not yet taken any action on the bill, 25-0753. It is on the agenda for a 6 May Business and Economic Development meeting.

OLG planning to launch FanDuel today

If McDuffie’s bill passes, and the OLG extends lottery vendor Intralot’s contract, it would see Intralot, and therefore FanDuel, have a two-year monopoly before other operators are allowed to enter the fray.

The OLG announced last week that it planned to launch the FanDuel digital platform today (15 April) and did so at about noon local time. It will then begin replacing GambetDC kiosks with FanDuel products at retail locations. According to the OLG, bets placed on GambetDC prior to 14 April, but which will be settled by 30 June, will remain active. Customers can also withdraw funds from GambetDC until 15 October. However, funds from GambetDC will not transfer to FanDuel. Instead, customers will have to create a FanDuel account in order to bet in the District after 14 April.

So far, the DC Council has not yet taken any action on McDuffie’s bill.

As things stand now, the OLG is mandated to contract only with lottery vendor Intralot. This is because the current regulation only allows for one wagering platform that is available throughout the city. McDuffie’s bill would change the rules and allow multiple platforms to be available throughout DC.

RFP and launch process would take two years

Suarez told the committee that the two-year extension would be for lottery vendor Intralot to continue the lottery and wagering contracts. But after that, the OLG could split the contracts, meaning that Intralot would not automatically renew its sports betting contract.

During the Business and Economic Development hearing, Suarez said that the RFP process takes about a year. This includes drafting the request, accepting and vetting bids and awarding a contract.

As per the hearing, it is asking for the Intralot/FanDuel contract to be extended two years. This is in order to have enough time to award one or more licences. Following that, it will then need to license additional or different operators, if necessary.

Other operators will see inequity

Operators not named FanDuel are likely to be fuming at the inequity. In particular, BetMGM and Caesars Sportsbook are already offering wagering in DC. Under the current law, they can offer betting at their partner venues and within a two-block exclusion zone.

Currently, operators partnered with sports teams or venues can offer platforms at the venue and within two blocks. lottery vendor intralot’s platform is the only one available throughout dc.

Extending their offerings to the whole city would be just a matter of changing the geofencing. BetMGM is partnered with the MLB Washington Nationals. Caesars is partnered with the NBA Wizards and NHL Capitals.

In addition, operators such as DraftKings, ESPN Bet, Fanatics Sportsbook and others have highlighted their desire to enter the market. This is given their proximity in neighbouring Maryland and Virginia. None of these, however, were offered the opportunity to take over GambetDC. This is because just like the original Intralot no-bid sports betting contract, the latest round was also not an open process.

NeoGames will provide its player account management (PAM) platform, sportsbook solution and online games to BIG Brazil as part of the deal. It will also offer additional operational products and services.

The news comes exactly one month after BIG Brazil confirmed that it was seeking accreditation with the Rio de Janeiro State Lottery, Loterj. BIG Brazil International Games president André Feldman had visited Loterj president Hazenclever Lopes Cançado in February, and inquired about receiving accreditation to provide lottery in Rio de Janeiro.

Referring to the new deal with NeoGames, Feldman said that the supplier met BIG Brazil’s ambitions to enter Brazil’s new regulated market.

“We have major ambitions to become the go-to brand for players in Brazil once the regulated market opens up, and to achieve this, we need to team up with the right partner,” Feldman explained.

“After exploring supplier options, it was clear that we need a partner that holds the same level of commitment as us, and from day one we saw that NeoGames shares our vision of building a significant market presence and how to best achieve that.”

Newly regulated market

Tsachi Maimon, president and head of igaming at NeoGames, added that NeoGames is ready to support BIG Brazil’s venture into the Brazilian market.

“Over the past two years we have become closely acquainted with the BIG Brazil team and have learned firsthand of their ambitious plans for the Brazilian market,” he said. “We are excited to have been selected as their supplier and to have the privilege of supporting them in their journey to become the leading operator in the Brazilian market.”

Brazil’s online gaming and sports betting market was ratified by president Luiz Inacio Lula da Silva in December, following months of twists, turns and delays over Bill 3,626. The bill’s progression intensified in the second half of the year as it appeared in front of various legislative bodies, such as Brazil’s Chamber of Deputies, the Economic Affairs Commission and the country’s Senate.

The bill’s journey saw the initial 18% tax rate – the subject of much backlash – lowered to 12%. An attempt to remove igaming from the bill altogether was a brief success, before being overturned later in December.

Last week Brazil’s ministry of finance published official plans to implement fixed-odds betting. The roll-out will take place in four stages, each concerned with a certain aspect of regulation, and is expected to end in July. The plans also saw the establishment of a regulator, the Regulatory Policy of the Prizes and Betting Secretariat (SPA).

In March, New Hampshire reported a 16.5% month-on-month increase in sports betting handle, likely boosted by the March Madness NCAA tournament.

New Hampshire had previously seen its handle drop for three consecutive months, even with the Super Bowl in early February.

New Hampshire’s March figures were aided by its mobile sector, with online accounting for $65.0m in bets taken, or 89.5% of the monthly total, having recorded a handle of $55.9m in February.

Retail handle also increased, jumping 18.8% to $7.6m from February’s figure of $6.4m.

New Hampshire revenue down despite handle rise

Although New Hampshire’s handle ended its slide, revenue continues to falter in the Granite State.

March’s gross gaming revenue stood at $5.6m, the third-lowest in its FY2024 and the lowest since August 2023, prior to the NFL season getting underway.

Consequently, the sector’s contribution to the state also decreased again, dropping from $2.9m in February to $2.4m in March.

The year-on-year comparison

New Hampshire’s year-on-year figures also shows an alarming decline in handle. March 2023 was the state’s highest monthly handle total at $103.4m, 42.4% higher than the same month this year.

However, New Hampshire’s March GGR of $5.6m was higher than the $4.8m generated in March 2023, while the state contribution for this year was also 14.2% up on the same month last year.

Cumulatively, the state has an accumulated handle of $585.8m so far this year, falling well behind the $727.1m in bets taken at the same point last year.

New Hampshire’s GGR for its FY2023 so far, totalling $59.7m, is also lagging behind the $62.9m generated in the first nine months of FY2022. State contributions are also $2.6m lower than the previous year.

Inspired filed its Q4 and full-year results on Monday (15 April), much later than it was initially expected to do so, having been warned by Nasdaq about the late filing.

Nasdaq had already given Inspired a warning for delays to its Q3 results, stating the late filing was a breach of its rules.

Inspired put the new delay down to a review of accounting policies during Q4. After finding errors in financial statements from 1 January 2021 onwards, the company announced it was planning to restate previously issued financial statements.

iGB has contacted Inspired for further clarity on the restated financial statements.

Inspired revenue for 2023

According to Inspired’s restated financials, revenue was up 14.7% on its previous year of FY2022, where it generated $281.6m. Product sales increased by 86.1% year-on-year from $33.2m to $61.8m, while service revenue went up to $261.2m from $248.4m.

Total company adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, edged up to $100.5m from $99.0m in 2022.

However, despite the rise in revenue, Inspired’s net income for the year stood at $7.6m, a drop of 63.1% from 2022’s figure of $20.6m.

This was largely down to increased expenses, with selling, general and administrative expenses jumping from $101.9m in 2022 to $115.5m in 2023. Cost of product sales also rocketed from $21.9m to $52.6m year-on-year.

Net income per basic share for FY2023 dropped 63.0% year-on-year to $0.27 a share from $0.73, while net operating income also fell to $39.9 from $46.0m.

Additionally, adjusted EBITDA margin was 31%, compared to 35% last year. On the investors’ call following the release of the results, the company’s president and chief executive officer, Brooks Pierce, revealed the business was targeting an adjusted EBITDA margin of 40%.

With revenues and EBITDA reaching record levels in 2023, Inspired’s executive chairman Lorne Weil believes the company is well-placed to continue on its upwards growth trajectory in the coming years.

“As the global online betting and gaming ecosystem continues evolving, with some new markets opening and consumer adoption increasing, we see opportunities for continued growth,” Weil said.

“We are excited about the opportunities ahead as we seek to capitalise on the expanding online betting and gaming markets globally.”

Inspired interactive growth alleviates stagnation fears

While Inspired’s gaming, virtual sports and leisure sectors grew by just 1%, 4% and 1% respectively in terms of year-on-year revenue, its interactive sector generated $27.9m in total revenue, up 35.4% on FY2022’s figure of $20.6m.

The interactive segment’s adjusted EBITDA also increased to $15.4m from $11.3m. Gaming’s adjusted EBITDA went up just 0.7% to $44.0m, while virtual sports also only saw a 6.2% jump from $44.9m to $47.7m.

The interactive sector enjoyed a particularly strong Q4, with its revenue for the final quarter of the year at $8.0m, a 48.1% year-on-year increase, while its adjusted EBITDA also shot up to $4.0m from $2.8m in the same period last year.

Weil company’s interactive segment’s Q4 performance, declaring: “Our fourth quarter performance capped off a strong year, fuelled by our successful strategic focus on scaling our higher-margin digital verticals alongside steady growth in our land-based operations.

“Our digital business fourth quarter results continue to be led by the interactive segment, where revenue and adjusted EBITDA increased approximately 41% and 39% year-over-year on a constant currency basis, respectively, as we continue to increase our footprint through new customer launches and benefit from the growth of our existing customer base.”

Increased costs a theme of Inspired’s Q4

While Inspired’s Q4 revenues went up 6.0% to $81.2m from $76.6m in the same quarter last year, increases in costs meant the company’s net operating income dropped to $9.3m from $11.6m in Q4 FY2022.

Cost of product sales in Q4 edged up to $10.8m from $10.7m, while cost of service also jumped from $16.5m to $18.2m. The biggest rise was in selling, general and administrative expenses, which were up 18.0% at $32.8m from $27.8m in the same quarter last year.

Inspired’s Q4 results also included $5.0m in costs related to its accounting restatements. Across the whole year, Inspired’s corporate sector reported a loss of $77.9m, as well as an adjusted EBITDA loss of $26.0m.

Additionally, other total net expenses increased from $6.4m to $7.1m, while Inspired paid $2.2m in Q4 income tax, meaning Inspired recorded a net income of zero for Q4.

Gaming still performing well

While gaming revenues only went up by $700,000 year-on-year during FY2023, the segment is still vital for Inspired. The sector accounted for $111.3m in total revenue, 39.6% of Inspired’s total yearly revenue, while it accumulated $43.7m in adjusted EBITDA, 34.1% of the company’s FY2023 figure.

Virtual sports are also performing well, with the segment’s $54.2m in total FY2023 revenue making up for 19.2% of the business’ total revenues for the year. It’s also outperforming gaming in terms of its contribution to adjusted EBITDA, with the sector responsible for 40.4% of the yearly figure.

While the interactive segment showed stark growth in FY2022, it was still only responsible for 7.3% of Inspired’s total yearly revenues and 9.6% of its adjusted EBITDA total.

The future for Inspired

Notably, Inspired doesn’t publish guidance as one of its policies. However, on the investors’ call, Weil says the company is comfortable with where the full-year consensus is, which is “modestly up” from FY2023’s numbers.

Weil also stated he was expecting its FY2024 results to be weighted towards the back end of the financial year, with virtual sports starting to pick up following its prior decline. This he said, will reflect the time needed before the company’s initiatives fully take effect.

Additionally, Weil pointed to the “lingering unusual” aspects relating to the accounting restatements, as well as a backlog on product sales towards the end of the year, as potentially having an impact on the company’s 2024 financial year.

StopSpillet was introduced on 1 January 2019, providing advice and guidance to those in Denmark who are concerned over their gambling habits.

A new report revealed that since its launch, StopSpillet has received 2,933 inquiries, with figures suggesting that a large percentage of those callers have a problematic relationship with gambling. Players calling for themselves were responsible for just over 1,650 inquiries, accounting for 56% of the total.

Additionally, 1,150 inquiries, or 40% of the total inquiries, came from relatives of players. In around half of those calls, it was a parent getting in contact with StopSpillet. Meanwhile, 4% of calls came from professionals.

On the ongoing development of StopSpillet, the report read: “The Gambling Authority works continuously to spread awareness of StopSpillet, for example through campaigns.

“Trained counsellors sit by the phone when players, relatives or professionals call the help line. The advisers work continuously to develop their knowledge and skills.”

Online gambling dominates StopSpillet calls

When players call StopSpillet, the helpline asks what games the caller plays to establish where the majority of problems lie.

StopSpillet revealed that 67% of calls were about online casino and online betting. Physical bets and physical slot machines accounted for 20%, while players also mentioned poker and land-based casino betting.

When players call StopSpillet, they can also undertake a test which allows players to clarify whether they have a problematic relationship with gambling.

StopSpillet revealed that on average, callers score 5.94 on a scale of 0 to 9, with a score of 4 or above indicating that players have an issue with gambling.

Previous StopSpillet data identifies Denmark’s youth gambling problem

This new StopSpillet report follows data from May 2023 in which Spillemyndigheden uncovered that 88% of callers to the helpline had placed their first bet when they were 25 or younger.

Even though the age limit to gamble in Denmark is 18, 50% of callers had placed their first bet before the age of 17.

Research released in November revealed that 4% of calls to StopSpillet were from players aged under 18.

The deal with Danske Spil, Raketech said, will support further growth of its sports products in Denmark. Raketech added that the partnership will support a longer-term strategy of diversifying its revenue streams.

The deal will run for an initial three years, with the option to extend for an additional year.

Danske Spil marks Raketech’s second partnership in Denmark. Earlier this year, the group also struck up a relationship with gambling operator Vbet.

Raketech also has similar partnerships in place with other state-owned gambling operators, such as Svenska Spel in Sweden.

“We are happy to announce a three-year media partnership with Danske Spil,” Raketech acting CEO Johan Svensson said. “It expands our media offering while continuing to provide market-leading online assets to the Danish market. 

“The partnership marks a milestone for Raketech in Denmark. It is an endorsement of our product offering of supporting large, successful operators that demand high standards of execution.”

Svensson takes temporary charge at Raketech 

Svensson took on the role of interim CEO at Raketech in January following the departure of Oskar Mühlbach.

Mühlbach left due to different views on the strategic direction of the group. He had served as CEO since December 2019, prior to which he spent time as its chief operating officer.

Svensson, a co-founder of Raketech, was previously its CEO before stepping aside in 2017. He has now returned to the role on a temporary basis while Raketech seeks a permanent replacement. 

Lottery growth pushes revenue up at Danske Spil

As for Danske Spil, the operator reported a year-on-year increase in revenue and net profit during its 2023 financial year. This came in the wake of growth within its lottery division.

Key highlights included a 1.2% rise in revenue to DKK5.04bn (£576.3m/€675.6m/$720.2m). Of this total, the Danske Lotteri Spil lottery division generated DKK2.87bn, an increase of 2.5% and a record annual total.

Danske Spil reported a pre-tax profit of DKK2.35bn, an increase of 6.0%. After DKK526.5m in tax, the group ended 2023 with a net profit of DKK1.82bn, up 5.9% year-on-year.