Month: April 2024

Spillemyndigheden’s decision came after SkillOnNet provided the regulator with material which it believed complied with anti-money laundering (AML) regulations.

However, the material was found to be worthy of three injunctions. These were for violations of the Money Laundering Act’s rules on documentation of completed controls, business procedures for internal controls and risk assessments.

Meanwhile, Spillemyndigheden also charged SkillOnNet for breaching regulations on business procedures, as well as rules on the whistleblower scheme.

The injunction orders necessitate an obligation to act from SkillOnNet. The company must submit a revised risk assessment and business process for checking internal controls within two months. Additionally, SkillOnNet must also submit documentation ensuring that checks on internal controls have been conducted.

Spillemyndigheden noted: “Adequate risk assessment, business procedures and whistleblower arrangements are fundamental to the Money Laundering Act and the seriousness of the breach has therefore led to three injunctions and two prosecutions.”

In a statement shared with iGB, SkillOnNet said it was surprised by the Spillemyndigheden’s decision.

“SkillOnNet Ltd maintains high AML standards in Denmark, as it does in all markets where it operates,” the statement read. “The orders are entirely regarding more detail in the description of procedures and SkillOnNet suspects there is possibly a misunderstanding.

“We have engaged with the DGA [Danish Gaming Authority] to fully understand what they consider to be the improvements which have to be made.”

A closer look at SkillOnNet’s breaches in Denmark

The first injunction was handed down because of SkillOnNet’s deficient risk assessment, which was found to have not addressed risks on the company’s business model, including payment solutions and products, thus breaching the obligation on risk assessments in section 7 of the Money Laundering Act.

Injunction order B was related to section 8 of the Money Laundering Act. It concerned the failure of SkillOnNet’s written business procedures to convey how and when, as well as by whom, checks are undertaken to ensure internal controls are conducted. Order C, meanwhile, was given due to SkillOnNet’s failure to document those checks had been carried out.

In regards to the two charges, Spillemyndigheden outlined “defective” business procedures for establishing customer relationships until 16 October 2023 as the reason for the first charge. This was down to a discrepancy between business procedure and practice, with the company’s customer familiarisation procedures carried out at inappropriate times, a breach of section 10 of the Money Laundering Act.

Charge A was also decided upon because of SkillOnNet’s failures to conduct screenings, as outlined by section 18 of the Money Laundering Act, to identify politically exposed persons, or close associates or business partners, for customers who hadn’t paid over a fixed defined amount.

Charge B was handed down due to insufficient anonymity on SkillOnNet’s whistleblower scheme, with reporting only possibly by email. Section 35 of the Money Laundering Act states employees must be able to report violations of money laundering legislation. This can be done anonymously and through independent channels.

What punishment could SkillOnNet receive?

Spillemyndigheden has increased its effort to clamp down on money laundering in recent times. In July 2022, it started an AML crackdown in line with the ministry of justice’s new strategy.

In 2023, operator Tipwin was fined DKK100,000 ($14,500/€13,400/£11,500) for breaches of anti-money laundering (MLA) regulations. That was over a year after violations were initially identified.

Tipwin’s offences included gross and negligent violations of rules on risk assessments, policies and internal controls, similar to SkillOnNet’s infringements. Alongside Tipwin, other operators to have faced injunctions for AML reasons in recent times include Casumo, Casino Copenhagen and Bet365.

Money laundering isn’t the only area that Spillemyndigheden is honing in on, with illegal gambling also in its sights.

In a new report, Spillemyndigheden set out details of how it countered illegal activities during 2023. This covers both the online and land-based sectors in Denmark.

The regulator said Stake.com was the highest profile operator blocked last year. This was after it obtained a court order to block 49 websites deemed to be operating illegally in Denmark.

SkillOnNet’s AML failings in Great Britain

SkillOnNet’s troubles in Denmark come after it was ordered to pay £305,150 (€350,351/$378,299) by Great Britain’s Gambling Commission. This was over a number of AML and social responsibility failings.

The company was ordered to make the payment in lieu of a financial penalty having reached a settlement agreement. The funds are to be directed to socially responsible causes.

A Commission-led regulatory review of SkillOnNet for the period between January 2021 and December 2022 found the operator failed to comply with several Licence Conditions and Codes of Practice (LCCP).

Much like its infringements in Denmark, SkillOnNet’s core failures in Great Britain included insufficient policies, procedures and controls to comply with AML responsibilities. Deficiencies in its responsible gambling policies, procedures, controls and practices were also highlighted.

The charity, which commissions prevention and treatment services, said 28,000 of those individuals – around one in four – afterwards sought further support from a trained advisor via the National Gambling Helpline.

GambleAware’s self-assessment tool gives users a series of statements. It asks them to select how much the statement applies to their gambling behaviour on a scale of 1-10.

GambleAware said the uptake aligns with increasing numbers accessing treatment and support through the National Gambling Support Network. This includes a 20% rise in people receiving extended early intervention support.

“The figures released today underscore the critical role third-sector services play as part of a whole-system-approach to addressing gambling harms,” said Zoë Osmond, CEO of GambleAware.

“As we approach the government’s planned announcement around the structure of the new system, it’s imperative a comprehensive prevention-led approach is prioritised, including increased investment into free, confidential support services, educational initiatives, public health campaigns and digital resources, which allow for a tailored approach for all communities across Great Britain who need our support.”

Success of wider gambling harms campaign

The tool became available in April 2023, at the same time GambleAware’s “Let’s Open Up About Gambling” campaign was launched.

The campaign reached tens of millions of people as part of the drive to reduce barriers in accessing support. More than 50% went on to take steps to prevent gambling harm.

The charity said the past year has also seen a record 24% rise in calls to the GambleAware-commissioned National Gambling Helpline. It said this points to growing demand for a holistic response to address the impact of gambling on society.

GambleAware has now trained more than 8,000 professionals across different sectors to assist those who may be experiencing gambling harm.

Last month, GambleAware defended its record following a complaint submitted to the Charity Commission by the Good Law Project. The non-profit organisation alleges that GambleAware trustees are not meeting the charity’s aims to offer sufficient gambling harm education.

According to the complaint, this has been fuelled by GambleAware’s connections to the industry and its “reliance on industry funding”.

At the time, Osmond said GambleAware is “robustly independent from the gambling industry”.

“I think James has a unique ability for being in a leadership position and listening to the different sides of everything, giving tribal leadership a chance to hear both sides, and come to a compromise,” Tuolumne Band of Me-Wuk Indians tribal council member Dennis Hendricks said.

Siva said Hendricks was a mentor when he first joined the CNIGA executive committee.

Siva, the current CNIGA chairman, is hoping that is the kind of leadership that the Indian Gaming Association (IGA), which meets beginning Monday (8 April) in Anaheim is looking for. Siva announced his intent to run for vice chairman at the Western Indian Gaming Conference in February. He’ll be running against incumbent David Z. Bean of Washington’s Puyallup Tribe.

Young minds want to rise

Siva is one of two young tribal leaders who made this year’s National Center for American Indian Enterprise Development “40 Under 40” list of emerging tribal leaders and is running for national office.

The other is Justin Barrett, treasurer of Oklahoma’s East Shawnee Tribe. He’ll likely be running against incumbent treasurer Andy Ebona, of Alaska’s Douglas Village. Together, Siva and Barrett would bring representation from the two biggest tribal gaming states in the US onto the IGA executive committee. Neither California nor Oklahoma currently has a voice on the board.

IGA elections will take place 9 April, on the second day of the annual conference. Those interested in running for office must be nominated that day, then regional caucuses meet to determine who they will support, and then delegates vote. Every member tribe – no matter how big or small – is entitled to one delegate, one vote.

Time for change?

Siva and Barrett are both running in the hopes of effecting change.

“I feel there has been a level of complacency that has crept into IGA in the last five-10 years,” Siva said. “I think it’s not surprising at that level, things get a little repetitive. You have the same kinds of conferences, the same kinds of lobbying efforts in DC, it’s becoming a criticism from tribes across the country.”

Siva said that IGA, which lobbies around tribal issues in Washington, DC, requires unanimity before taking a clear position on an issue. As chairman of CNIGA – a coalition of 52 tribes in California – getting total agreement on issues is elusive, so Siva had to start thinking outside the box.

“We’ve had to really think about what unity of purpose means,” he said. “Unity built on complete consensus puts any action out of reach. But you have to have agreement on principles. We had to nail down our core beliefs and then we can disagree, but move forward.”

Respect critical to keeping CNIGA unified

One of the latest examples came in 2022, when a group of seven commercial operators ran a ballot initiative to bring online sports betting to California. In the end, Indian Country opposed and killed the initiative.

But along the way, three tribes – the Big Valley Band of Pomo Indians, Middletown Rancheria of Pomo Indians, and the Santa Rosa Rancheria Tachi Yokut Tribe – all signed on to support Proposition 27, the commercial initiative, because they believed it would be a step toward financial independence and would help them maintain their sovereignty.

Most of the rest of CNIGA disagreed, but Siva and his executive board did not shun or turn away the tribes.

“They came to all of our meetings and were treated with respect,” Siva said. “And they shared their thoughts. We had to be able to see our deficits so these tribes didn’t feel like they hard to turn to commercial operators for help.”

Said Hendricks: “It was a difficult time, and CNIGA’s job is to protect the sovereign right to have gaming on our lands. When someone takes the other side, it hurts some. We worked a long time for tribal unity, and it was painful, but now that we have come through it, even if we didn’t agree with their statements or cause, they are still part of our group and we respect what they have to say.”

Siva’s goal: Allow everyone to be heard

As California’s Indian Country was healing from that rift, in 2023, another commercial group came forward with another plan for a ballot initiative. This time, Siva and CNIGA were firm in their opposition.

The group abandoned its plan, leaving the state’s tribes the opportunity to mend fences within their larger community and determine what legal sports betting and, eventually, online casino will look like in the nation’s biggest state.

“I try to advocate and create space where everyone has a place at the table and can share their decision,” Siva said. “I want to grow our industry, to promote tribal exclusivity, and defend tribal sovereignty. I think I can bring that to the national stage.”

Siva was elected chairman of CNIGA in 2020 after serving as vice chairman and a member-at-large. He’s also the vice chairman of the Morongo Band of Mission Indians, where he previously served as a tribal council member. Siva says he stumbled into tribal leadership, but has found it is his calling.

“This is the first thing that I have done that has really kind of checked all the boxes for me,” Siva said. “I get still do some academic work, like working on things for the legislature and policy. I’ve always been really comfortable as a public speaker and have come into my own on that. And I’ve always been a people person.”

Kindred spirit?

Twelve hundred miles east, Siva has found something of a kindred spirit. Barrett, who just turned 30, is the youngest tribal executive committee member in East Shawnee history, and if he wins his bid for IGA treasurer, it appears he will be the youngest ever to do so. Barrett said his family has long been involved in tribal leadership and politics, so it was a natural fit for him.

Barrett and Siva are part of a group that is putting together the new Tribal Leadership Council, the goal of which is to give young tribal leaders the tools to succeed. The idea was born, Barrett said, through a conversation between himself and California’s Paskenta Band of Nomlaki Indians chairman Andrew Alejandre, who also made the “40 under 40” list.

“We had this conversation about how we don’t see anything out there for new or existing tribal leaders about how to do the job,” Barrett said. “The question is, ’How do we build a new generation of leaders and have a sustainable future?’”

Time to write the next chapter?

Barrett and Siva see one of the first steps as winning their elections and having platforms at the national level. Siva says Barrett’s background in casino operations and as his tribe’s treasurer make him uniquely qualified to be “an incredible treasurer with well-rounded experience”, while Barrett says Siva’s strength is “coalition building”.

If things play out the way Siva and Barrett hope, by this time next week, they will be starting to write their next chapters, something Siva is passionate about.

“I’ve always been a geek or a nerd,” Siva said. “I’ve always been inclined toward academics, but I am a high-school dropout with an Ivy League degree. I floated around for awhile (after getting a GED) before I found myself back in school, and then at Columbia.

“There is always time to rewrite your story.”

Gerrow will succeed interim incumbent Erik Edeen when he assumes the role on 15 April 2024. His appointment comes just over a month after the departure of Catena chief executive Michael Daly and the recent proposal of Erick Flinck as new chairman.

Gerrow joined Catena’s Malta-based operations in 2020, and in his current role as vice-president finance, is based in Miami. On assuming his new role, he will be part of the group’s executive management team.

Gerrow’s appointment comes after a disastrous 2023 in which the group saw revenue decline and its share price decimated. Daly resigned shortly after the group’s 2023 financial results were published in February.

Gerrow provides ‘strategic continuity’

Catena interim chief executive Pierre Cadena said: “We are delighted to see Michael step into the role of group CFO. His extensive experience and deep understanding of our financial operations make him exceptionally well-suited to lead our financial operations going forward.

“Michael’s transition to this role will provide strategic continuity in our executive management team, supporting Catena Media as we continue on the next phase of our journey.”

Edeen was named interim CFO in May 2023 following the departure of Peter Messner. During his tenure, Edeen has focused on improving Catena’s operating model and financial position. Catena said he will continue to support the business in a strategic advisory role.

In his current role, Gerrow leads the group’s financial planning and analysis function. Gerrow holds a bachelor’s degree in commerce from Dalhousie University in Halifax, Canada, and professional accounting qualifications from CPA Canada and ACCA UK.

Catena’s challenges following 2023 travails

The group registered a 41% decrease in revenue in its full-year 2023 results.

However, perhaps of most concern is a drop in US revenue, which declined 21% to €67.1m (£57.4m/$72.8m). Given that 80% of all revenue at Catena now comes from the US, with the group active in 27 North America jurisdictions, this could prove problematic moving forward.

There was more bad news for Catena in terms of new depositing customers from continuing operations. This amounted to 184,257, down 19%, although slightly cushioned by not-as-bad figures in Q1 and Q2.

In terms of its EBITDA, this also made for tough reading. Adjusted EBITDA from continuing operations fell by 47% to €25.4m, corresponding to an adjusted EBITDA margin of 33.0%.

What’s more, shortly after the results were released on 13 February, Catena’s share price plummeted. On the day, the price fell 10%, but in terms of year-on-year comparison, its share price was down 75% at the time.

On Wednesday (3 April), PNR Tecnologia delivered documentation seeking to operate sports betting and online games with Loterj accreditation. On Friday (5 April), Lema visited the Loterj headquarters.

This was to carry out a proof of concept and evaluate its compliance with Loterj regulations. This was after Lema had previously presented its platform to operate sports betting and ilottery in March.

In March, Caesars Sportsbook-licensee BIG Brazil announced it was looking for Loterj accreditation to offer both sports betting and lottery. Loterj has since been criticised for its attempts to operate outside in Brazil outside of its state of Rio de Janeiro.

PNR Tecnologia director Yuri William threw his support behind Loterj’s initative. He stated: “Loterj has a lot to add to the new Brazilian regulated market, being the first lottery to do this.

“We believe that, with support from Loterj, we will be able to grow given Brazil’s potential for the world in the fixed-odd betting market. We want to be part of this market.”

Ongoing dispute between IBJR and Loterj in Brazil

Loterj’s announcements of the attempts of PNR Tecnologia and Lema to seek accreditation come in the face of criticism from the country’s Ministry of Finance and the Brazilian Institute for Responsible Gaming (IBJR).

Brazil’s IBJR has published a note denouncing Loterj’s actions. It outlined that it was acting beyond its appropriate reach in accrediting gambling companies for nationwide activities. The IBJR has labelled its movements a “clear violation” of federal regulations.

“The acts carried out by Loterj create disorder, raise unnecessary doubts and harm the process of regulating the fixed-odd betting industry in Brazil,” the IBJR note read.

“It is illegal to take the position that fixed-odd betting operators licensed by Loterj (or any other authority other than the Ministry of Finance) have the right to explore this lottery modality and offer these services to consumers located in any location other than the territory of the Rio de Janeiro state.”

The IBJR also alleges that the company has been issuing letters to gambling companies demanding they halt operations due to not having a Loterj-granted licence or risk a number of administrative sanctioning processes.

This was, in the IBJR’s view, an “unreasonable request” that lacked legal basis. This is because of the Federal Supreme Court’s decision that the competence to legislate continues to be exclusive to the Union under article 22 of the Federal Constitution.

Santa Ritta: IBJR “has a point”

André Santa Ritta, an associate lawyer at Pinheiro Neto Advogados, believes there’s basis to the IBJR’s criticisms.

Santa Ritta feels Loterj doesn’t have the power to allow its licensees to operate nationwide. He told iGB by email: “IBJR does have a point, and their arguments make sense.

“I myself have been involved in these discussions. I do not believe Loterj has the legal grounds to allow companies to operate in the entire country.”

iGB has asked Loterj for comment on the IBJR’s statement but is yet to receive a response.

Queens casino controversial among politicians

Businessman Steve Cohen’s plan to build a casino in Queens adjacent to the Mets’ Citi Field earlier this week got the endorsement of a city councilman, but a state senator said Cohen has not been “open and transparent,” according to the New York Post.

State Senator Jessica Ramos, who appears to back a Genting Resorts World project, took issue with Cohen’s lobbying strategy. Any downstate casino will need legislative approval in Albany. Cohen is partnered with Hard Rock in his proposed venture.

Queens Councilman Francisco Moya told the NYP that “If we fail to seize this once-in-a-lifetime opportunity, we ensure that the area around Citi Field remains underutilised parking lots for the foreseeable future; and we permanently stymie the future growth potential of Queens. Let’s not allow that to happen.”

In March, the New York State Gaming Commission said it won’t decide who gets the three available licences until late 2025.

Louisiana to ban college player prop bets

The NCAA last week made a public plea for a national ban on college player prop bets, and Louisiana’s regulator 1 April followed up by announcing that it will prohibit that betting market from the 1 August:

Stripped down Alabama gambling bill goes to conference

Alabama’s House refused to concur with a stripped-down version of the comprehensive gaming bill that it sent to the Senate 4 April, and the issue will now go to a conference committee, according to the Associated Press.

The House previously passed a gambling bill that would have brought 10 brick-and-mortar casinos, lottery, and retail and digital sports betting to the state. The Senate stripped out all sports betting, added electronic gaming machines at dog tracks, and lowered the number of retail casinos.

Either proposal would be a constitutional amendment that would go to the voters. Lawmakers have more than a month to conference and send a proposal back to the House and Senate floors. The legislature is set to adjourn 20 May.

New offerings

Circa Sports started taking bets in Kentucky 1 April, marking the company’s first launch since going live in Illinois last September, according to a company press release. The launch means that those in Kentucky now have eight wagering platforms to choose from. Circa Sports is also live in Colorado, Iowa, and Nevada.

In Mississippi, DraftKings opened a new brick-and-mortar casino at the Golden Nugget. The book features the largest seamless screen on the Mississippi Gulf Coast, the company announced. And in New Jersey, Prime Sportsbook soft-launched in New Jersey 31 March, its second market after Ohio.

Poll: Nevadans want a lottery

A Noble Predictive Insights poll of 829 registered voters held 27 February-5 March revealed the 75 percent of Nevadans support introducing a state lottery. Nevada is one of five US states that does not currently have a lottery.

Support for a lottery is bipartisan, according to the poll, and 82 percent of Democrats are in favor vs. 71% of Independents/Others. Whether or not to allow a lottery is one of five ballot measures that Nevada voters will consider in November.

Digital sports betting NOT coming to Nebraska

Following a public-opinion poll that revealed that 57% of those polled would vote yes to a constitutional amendment that would expand legal sports betting to online platforms, backers won’t run one, according to the Lincoln Star-Journal. Though the number is more than the 50% needed to pass an amendment, it is not high enough to convince backers to move forward.

“If you’re at 57 (% support), it creates some possibility that you could lose unless you really were to put substantial resources into it,” Lance Morgan of WarHorse Gaming told the Star-Journal “It doesn’t make any sense to go to war unless you have a war chest lined up.”

WarHorse partnered with BetMGM, Caesars Sportsbook, DraftKings, and FanDuel to run the poll.

LSU-Iowa women’s game record setting

Though none of the major operators released hard numbers, all reported that the LSU-Iowa women’s basketball Elite Game 1 April was the most bet on women’s sporting event in history. According to ESPN, viewership for the Sweet 16 was up 96 percent.

Led by superstar Caitlin Clark, Iowa beat LSU to advance to the Final Four, which starts 5 April in Cleveland. The Connecticut-USC game was also in the top three most bet women’s sports events at BetMGM, according to USA Today.

ICYMI on iGB

Tribal leader wants to bring art of compromise to national stage

Responsible gaming a top-line priority two years in in Ontario

Bally’s shareholder blasts ‘woeful’ takeover bid

DOI requests another extension from SCOTUS in Florida sports betting case

Fanatics goes live in Arizona

Gibson will step down from his role as chair and from the board by September 2024, although he may leave earlier depending on the appointment of a permanent CEO. This search is progressing well, Entain says. 

“It has been a privilege to lead the board of Entain for the past four years and, while I have thoroughly enjoyed my time at this dynamic, exciting and innovative business, I reflected a little while ago that 2024 would be the right time for me to retire,” Gibson explained.

“I am delighted that, in Stella, Entain has an exceptional successor who knows the business well and has already proven herself to be a firm hand on the tiller in her role as interim CEO.”

Gibson joined the board in November 2019 and took up the chair on February 2020. During his tenure the business underwent wholesale change, from its rebrand to Entain, to the resolution of a long-running investigation into its legacy Turkish business.

In this time group EBITDA increased more than 50% to £1bn in 2023, with BetMGM growing to a $2bn business in the US, Entain said.

Entain promotes Stella David to chair

Entain’s board identified David as Gibson’s preferred replacement through its succession planning. She had served as a non-executive director since March 2021, before replacing Jette Nygaard-Andersen as interim CEO last December. 

“Barry has been a wonderful mentor and source of wise counsel to so many people during his time as chair of Entain and I would like to personally thank him for his unwavering support,” David said of her predecessor. 

“The fact that we now have a solid platform and a clear plan for future growth is due in no small part to his efforts. I am entirely focused on my role as interim CEO as we work to accelerate our operational strategy and look forward to taking over the baton from Barry in due course.”

Looking back on Barry Gibson’s tenure

Barry Gibson’s tenure started at GVC Holdings, but ended at a company very different in Entain. 

Throughout his time on the board His Majesty’s Revenue and Customs’ (HMRC) investigation into the operator’s legacy Turkish business loomed large. This began before he joined, when HMRC began investigating the business despite GVC’s protests that it had no ties to the Turkish operations after selling the asset in 2017.

Chief executive Kenny Alexander abruptly departed ahead of HMRC widening its investigation to examine “potential corporate offending” in 2020. 

GVC then rebranded to Entain under Gibson’s watch, to reflect a more socially responsible ethos. As part of this change the business pledged to withdraw from all markets where it saw no path to regulation. 

Gibson acted as the frontman for Entain’s response to the Turkish case. This ultimately resulted in a deferred prosecution agreement with the Crown Prosecution Service (CPS) in November last year. The operator will pay £585m in total, as well as making a £20m charitable donation and covering HMRC and CPS costs of £10m.

Jette Nygaard-Andersen’s tenure

Early in Gibson’s time as chair he dealt with the abrupt departure of Alexander’s replacement as CEO, when Shay Segev left for streaming giant Dazn. 

Jette Nygaard-Andersen, who joined as Segev’s replacement in January 2021, oversaw a flurry of M&A activity. Most notably this included the Entain CEE joint venture with Emma Capital, which acquired Croatia’s SuperSport and Poland’s STS as part of a push into Eastern Europe.

This ultimately led to pushback from activist investors questioning the operator’s strategy. Another deal, 2022’s acquisition of BetCity in the Netherlands, has resulted in a High Court case over an ongoing regulatory investigation at the time the deal was struck.

Other initiatives, such as an innovation hub to invest up to £100m in metaverse technology, was disavowed by David in her first earnings call as interim CEO. 

“I understand the prior aspiration to move into broader interactive entertainment,” David said after Entain’s 2023 results release. “But quite frankly, that was a distraction. We are laser-focused on being 100% a betting and gaming company.

On the operator’s M&A activity, David said: “Complexity has gradually accumulated over time in this business and that has been exacerbated by the fact we’ve done numerous acquisitions. 

“And the problem with the complexity is hampering our agility and, therefore, our ability to get things done.”

Shares in the operator are trading up 1.11% at 767.80 per share at the time of writing.

PointsBet has confirmed receipt of the final instalment of the headline purchase price of $225m – agreed last June – and has transferred the remaining entities to Fanatics.

This includes all of the remaining entities that make up PointsBet’s US B2C gambling operations, Banach Technology, a copy of the PointsBet platform and a licence to use that proprietary technology platform.

Fanatics said its sportsbook will be available to 95% of the addressable online sports bettor market in the US following this closure. Remaining tasks include migrating New Jersey and Illinois from PointsBet to Fanatics, which will happen in the next 30 days.

PointsBet confirmed a final payment of $50m had been made to complete the transaction.

“The acquisition of the US businesses of PointsBet has super charged our expansion plans,” said Matt King, chief executive of Fanatics Betting and Gaming (FBG).

“In addition to our migration of PointsBet customers and technology to the Sportsbook and Casino platform, we have also added an incredibly talented team of passionate leaders from the ranks of PointsBet USA that have already made an impact on our business.”

With Illinois – Fanatics will soon be live in 20 states

By the end of the month, Fanatics will be operating online in 20 states, including Massachusetts, Michigan, New Jersey, New York and Pennsylvania, pending regulatory approvals. Fanatics Casino is available online in Illinois, Michigan, Pennsylvania and West Virginia with New Jersey to follow. Fanatics will also provide the betting operations to 19 retail locations, including the only retail sportsbook inside an NFL stadium at Commanders Field in Maryland.

Mark Hughes and Aonghus Mulvihill will join the executive leadership team at Fanatics from PointsBet USA. In addition, more than 200 PointsBet employees are joining the company in a variety of roles and the company has taken over the leases of the former PointsBet offices in Colorado and Ireland.

Fanatics made its $225m offer to acquire PointsBet US in June 2023 following a bidding war with DraftKings. Fanatics had struck an agreement with PointsBet to acquire its US business in May for $150.0m and shareholders were due to vote on this at a meeting on 30 June.

However, in June, news broke that DraftKings had submitted a higher proposal worth $195.0m. PointsBet said it would engage with DraftKings over what it said could be a “superior” proposal. Upon confirmation of the improved Fanatics offer, DraftKings announced that it would no longer pursue a deal to acquire PointsBet US.

Over the last year, Fanatics has taken over from PointsBet in each of the states it was operational. Last month it took over PointsBet’s operations in Kansas, while also rolling out in North Carolina when the state officially launched its legal sports betting market.

The Kansspelautoriteit gaming authority’s (KSA) sixth monitoring report on Dutch online gambling recorded gross gaming revenue (GGR) of €1.39bn for the year to 31 December 2023.

This was up 28% compared to the same period in 2022. However, in the last six months the GGR increased just slightly by 1% compared to the first half of the year.

The report revealed that the number of active accounts stood at 1.1 million in 2023. This was up 13% on 2022. A year earlier there were 970,000.

The KSA estimates that about a third of accounts are played by a total of 448,000 players per month. In the second half of 2023, around 726,000 players were active with legal providers. This means that approximately 5% of adult Dutch people gambled online in that six-month period.

The monitoring report estimated that players lost an average of €958 over the last six months of 2023. This amounts to approximately €160 per month, slightly lower than the €170 in the first half of the year.

The KSA warned that young adults are overrepresented within the Dutch gambling sector. Those aged 18-23 account for 9.5% of the population, but own 22% of gambling accounts.

“This percentage was virtually the same in the previous monitoring report, so the number of young adult players in the past year has not increased significantly,” the KSA said. “Young adults lose less money than players aged 24 and older: on average €52 per month.”

Dutch untargeted advertising ban makes little impact

The report also considered channelisation and advertising, with this being the first report published since the ban on untargeted advertising came into effect in July 2023.

Some 90% of players only gamble via legal websites, which is above the target of 80%.

On advertising, KSA said: “The report shows that the market has not experienced any noticeable contraction since the ban. However, the number of visits to gambling websites by people who are not players has decreased significantly. People who already played do not come less often, so the advertising ban mainly affects people who do not yet play.”

In February, KSA presented its supervisory agenda for 2024, citing four areas of focus. Looking to achieve its mission of “safe gaming”, the KSA says it will increase its protection of vulnerable players in the Netherlands by looking to prevent addiction.

The country took measures to do this in 2023, including the introduction of a ban on most forms of advertising.

The KSA is also looking to combat illegal online offerings, aiming for at least 90% of players to gamble with legal providers in the Netherlands.

In a December article for iGB, Yield Sec chief executive Ismail Vali noted how the KSA’s current approach appeared to lack clear success in actual enforcement terms.

In February, a motion to completely prohibit gambling advertising in the Netherlands was submitted by Derk Boswijk of the Christian Democratic Appeal (CDA) party. While the move to go further than the 2023 ban on untargeted advertising ultimately failed, its proposal was the latest indicator of the rising concern over gambling harms in the Netherlands.

Silver Lake will acquire 100% of the outstanding shares in Endeavor that it does not already own. This is with the exception of rolled interests.

Shareholders in Endeavor will receive $27.50 in cash per share. This is a premium of 55% compared to the $17.72 per share seen at market close on 25 October 2023.

On October 26, Endeavor announced that it had initiated a strategic review. This was to examine the potential of taking the business private. Silver Lake expressed its interest in taking Endeavor private at this time.

The deal’s $13bn equity value combined with the consolidation of TKO’s total value brings the total enterprise value to $25bn.

According to Silver Lake, this makes the acquisition the biggest private equity privatisation investment deal in more than a decade. It is also “the largest ever in the media and entertainment sector”.

When it confirmed its strategic review, Endeavor emphasised that it would not consider selling its interest in TKO Group. Through TKO Group, Endeavor is a majority owner of World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC).

Ariel Emanuel, CEO of Endeavor, said the deal would improve value for Endeavor shareholders.

“Since 2012, Endeavor’s strategic partnership with Silver Lake and Egon Durban have been central to our evolution into the global sports and entertainment leader we are today,” said Emanuel.

“We believe this transaction will maximise value for all of Endeavor’s public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company.”

Another string to Silver Lake’s bow

This isn’t the first time Silver Lake has worked with Endeavor on an acquisition basis.

In August 2022, it acquired Diamond Baseball Holdings – a baseball management and ownership company – from Endeavor. Silver Lake has also made investments in Fanatics Inc.

The investment company also has a wide portfolio outside the gaming industry, owning Airtable, Klarna and Madison Square Garden Entertainment.

Egon Durban, co-CEO and managing partner of Silver Lake and chairman of Endeavor’s board, said taking Endeavor private will allow it to grow further in its operating areas.

“This is a very special partnership,” said Durban. “Together, we have built and grown Endeavor from $350m in annual revenue when we first invested in 2012 to nearly $6bn in consolidated revenue today.

“Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports and live events with bold vision.”

Endeavor keen to continue FY23 success

Endeavor made a strategic move of its own in February, when it announced that it would integrate IMG Arena – its data business – and OpenBet under the OpenBet banner.

The combined business is led by Jordan Levin, OpenBet CEO, who told iGB this represented a natural evolution for the two companies.

In its full-year 2023 results, Endeavor reported $5.96bn in revenue. This was boosted by an 80.3% increase in revenue in its sports data and technology segment. Adjusted EBITDA for FY23 was up 31.1% to $62.7m.

Endeavor’s fourth quarter performance also saw year-on-year improvements, with the sports data and technology segment up 4.7% to $113.5m.