Month: May 2024

Eduard Fumás Cases, Alea’s chief technology officer, speaks of the importance of sustainable and healthy platform growth. He explains the three key principles by which Alea is developing its technological capabilities: security, scalability and robustness.

Players spent more on sports betting in Louisiana, which led to a rise in revenue. However, it was very much the opposite in New Hampshire in April, where the market shrank year-on-year.

Starting in Louisiana, handle amounted to $283.0m (£222.5m/€250.4m), up 34.8% from last year but down 19.1% from March’s $350.0m total. Players spent $263.2m betting on sports online during April, in addition to $19.8m at retail sportsbooks.

As for revenue, this amounted to $33.0m in April. The monthly total is 49.3% ahead of last year and only 2.4% behind $33.8m in March this year.

The state collected $5.4m in tax during the month, with almost all of this coming from the online market. 

As for the financial year to date, total player spending in the 10 months to the end of April was $2.86bn. Of this, $2.61bn was bet online, with $257.2m wagered at retail locations.

In terms of revenue, the year-to-date figure stands at $328.4m. This includes $302.2m in online revenue and $26.2m from retail.

Different story in New Hampshire

Now looking to New Hampshire, things were not quite as positive in April. 

Player spending on sports betting amounted to $59.8m, down 8.1% year-on-year and 18.0% behind $72.9m in March. April’s total was also the lowest monthly spend since $38.8m was wagered in August last year.

Player spending on online betting amounted to $53.5m, with a further $6.3m wagered at retail sportsbooks.

Turning to revenue, this hit $5.3m in April, down 21.0% from last year and 5.4% less than the $5.6m reported in March 2024.

Almost all revenue came from online betting, with just $23,173 generated by retail betting locations in New Hampshire.

The state collected $2.3m in tax, with almost all this sourced from online betting.

As for the financial year to date, total spend in the 10 months to April was $645.7m. Of this, $565.2m was bet online and $80.4m at retail sportsbooks.

In terms of revenue, the state’s total hit $65.0m. This includes $58.7m from online betting and $6.4m retail.

The lottery technology broker posted revenue of just $285,523 (€262,000/£224,000) during the three months to 31 March 2024. This was less than half the $620,200 generated by Lottery.com during the same period last year. In its condensed consolidated statement, prepared assuming that the business will continue as a going concern, the Q1 2024 figure was $259,319.

In 2021, Austin-based Lottery.com generated revenue of $16.4m for the full year.

Lottery.com attributed the continuing revenue decrease to the waterfall impact of the operational cessation on the group’s subsidiaries in July 2022. This decision was made as it did not have sufficient financial resources to fund its operations. It has performed minimal day-to-day operations ever since, impairing its ability to invest in customer acquisition and other growth initiatives.

Lottery.com moving forward

The group relaunched its B2B API Platform on a limited basis last year and plans to relaunch its B2C platform by the end of June 2024. Its Sports.com subsidiary went live after the close of the reporting period in April 2024 following the acquisition of SportLocker. Lottery.com said each of TinBu, Aganar and JuegaLotto has had its revenue remain relatively consistent or decrease slightly from pre-operational cessation levels. Each have decreased expenses.

“The cornerstone of the company’s operational progress for FY 2024 will be driven by technology, product and service/capability enhancements,” it added.

Cost of revenue for the period was $72,171, an increase of 73% compared to the prior period. The increase was driven by the increase in the revenue from higher cost products sold as compared to Q1 2023. In its condensed consolidated statement, this figure was $83,787.

The consolidated financial statements do not include adjustments relating to the recoverability and realisation of assets and classification of liabilities that might be necessary should Lottery.com be unable to continue in operation. 

Gross profit dip due to lower revenue

Lottery.com posted a gross profit of $213,352 in its results of operations, which was down 52%. This decrease was primarily due to lower revenue in the first quarter of 2024 as compared to the same period in 2023. In its condensed consolidated statement, this figure was $175,532.

Operating expenses decreased slightly despite a small increase in personnel costs. With total operating expenses of $3.4m, loss from operations was flat at $3.2m. However, in its condensed consolidated statement, greater operating expenses put the figure up to $5.8m.

Lottery.com said it continued to address legacy issues during Q1, as it had during the full 2023 year. It said it has also regained full compliance with Nasdaq rules. Changes in management were announced last year while Lottery.com said it faces “material weakness” over accounting non-compliance. This relates to a class action suit served in 2022 on behalf of investors and former high-ranking employees.

Why Lottery.com acquired SportLocker

Lottery.com announced a deal to acquire sports-streaming site SportLocker and rebrand it as Sports.com in February 2024. SportLocker, which has links to Saudi Arabia’s burgeoning sports programme, previously announced plans for club acquisition, sponsorship and media partnership programmes – focussed on UK football and the US Major Soccer League (MSL).

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

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

March’s revenue figure of $257.1m was the highest total in Michigan so far in 2024, though comparably April’s numbers fell short. Nonetheless, April’s revenue total still beat January and February, which produced $229.6m and $218.5m respectively.

Year-on-year, April revenue was 20% ahead of the same month last year, when Michigan’s sports betting and igaming operators reported revenues of $195.7m.

Igaming revenue down but sports betting stable in Michigan

Igaming revenue fell from $215.5m in March, Michigan’s strongest igaming month to date, to $192.9m in April.

Sports betting handle, meanwhile, also dropped significantly. Michigan’s online sports betting operators took $399.1m in bets in April, down from $480.4m in March. However, April sports betting revenue stayed stable at $41.9m.

In terms of monthly adjusted gross receipts (AGR), igaming and sports betting combined for $201.9m. Of that total, $174.1m came from igaming, while online sports betting produced $27.8m. Igaming monthly AGR dropped 10.4%, while sports betting increased by $4.1m.

Year-on-year, however, igaming monthly AGR was up by 21.4%, while online sports betting AGR increased by 13.3%.

Monthly taxes and payments to the state were $37.6m in April. This was 8.5% down on March’s figure of $41.1m, with igaming contributing $35.8m of the total to online sports betting’s $1.8m. Tribal operators made $4.3m in payments to governing bodies in April.

Michigan casino revenue down in April

Detroit’s three commercial casinos previously reported revenues of $109.4m in April.

Those figures were down 11.7% month-on-month, though only slightly lower than the $109.7m generated in the same month last year.

MGM kept its lead among the three commercial casinos, holding a market share of 46%. Meanwhile, MotorCity and Hollywood Casino at Greektown held market shares of 30% and 24% respectively.

The three casinos paid the city of Detroit $9.8m in taxes and municipal services fees during April. This fell 10.9% short of March’s total of $11m.

WFA argues that the 2021 Florida-Seminole Tribe compact explicitly allows for wagering outside of Indian Country. That allowance, it says, violates the Indian Gaming Regulatory Act (IGRA). Last week, the DoJ wrote that the validity of the compact isn’t a federal issue and it doesn’t violate IGRA. Further, the DoJ argued that the US Department of the Interior’s (DoI) decision to allow the compact to become “deemed approved” does not violate any laws, state or federal.

WFA filed a writ of certiorari with the Supreme Court in April. At issue in the Florida wagering case is whether the DoI should have approved a compact that gives the Seminoles exclusivity to online wagering. It also allows the Seminoles to accept a digital bet placed anywhere in the state of Florida. Those bets, according to the compact, are considered placed in Indian Country if they flow through a tribal server.

WFA’s ultimate goal would be either to open the Florida market or shutter the Seminole’s Hard Rock Bet platform. The tribe launched the platform in November 2023.

WFA: Appellate court decision in conflict with SCOTUS

Previously, a US District Court judge ruled in favor of WFA, but that decision was overturned by a three-judge panel at the appellate level. WFA appealed for an en banc appellate hearing, but the full court declined to hear the case. Now, the question is whether or not SCOTUS will. That decision is expected as early as next month.

In Tuesday’s filing, WFA lawyer Hamish Hume argues that even though the DoJ believes that the compact doesn’t violate IGRA, its argument for why means SCOTUS should hear the case.

Hume wrote that the key issue in the DoJ response is that the “Court of Appeals correctly interpreted the Compact as not authorizing any sports gaming off Indian lands, and therefore the approval of the Compact did not violate IGRA.”

He goes on to say that the DoJ “concedes” that if the compact allows betting off of tribal land, the approval is an IGRA violation. Such a decision, the DoJ argued, would be in conflict with previous SCOTUS decisions, and therefore merits review. The ultimate question is whether or not the appellate court properly interpreted the compact.

Hume argues that the appellate court’s decision is simply to validate a compact approval that is “plainly unlawful.” He wrote that the DoJ did not address this and cites a previous SCOTUS decision that the decision is in conflict with. In addition, Hume argues that the “deemed” language in the compact that allows for the idea that a bet is placed where it is received is a “contrived device.” The appellate court, Hume argued, “evaded” addressing that issue.

Voters never got a say in Florida wagering case

Both sides agree that IGRA governs gaming on Indian lands. But IGRA, adopted in 1988, does not explicitly address digital gaming. Tribes, state governments, and other entities have struggled with this issue across the US. Online sports betting isn’t directly banned via IGRA. But IGRA does not directly allow for it. The 2021 compact is the first approved that uses “shall be deemed” language as a workaround.

Also at issue is a state law that requires that any expansion of gaming in Florida go to the voters. By approving the 2021 compact, WFA argues, the state legislature expanded gaming without voter approval.

While this would seem like a state issue — and Justice Brett Kavanaugh all but said it is — Hume wrote, “the state law question of whether the online sports gaming provided for in the compact is legal bounces back to a question of federal law. It is authorized only if federal law accepts the “deeming” provisions and holds that IGRA authorizes the online sports gaming that occurs off Indian lands. IGRA does not authorize such gaming, and it is the job of the federal courts to so hold.”

More than 7,000 cases are filed with SCOTUS annually. It usually hears between 100-150.

As the MGC begins to learn about why and how operators set bet limits on players, the only operator representative was Justin Black of Bally’s Interactive. That platform is licensed, but not live in the state.

BetMGM, Caesars Sportsbook, DraftKings, ESPN Bet, Fanatics Betting & Gaming and FanDuel requested executive session for the roundtable. The Massachusetts regulator declined. Most operators cited confidentiality concerns, and were ultimately left out of the conversation.

Commissioners didn’t hide their disappointment and anger. Interim Chair Jordan Maynard said that the Massachusetts regulator is required by an open-meeting law to have discussion in public, and that is sometimes “uncomfortable.” He also said that integrity and transparency are of paramount importance.

Commissioner Brad Hill was more direct.

“I’ll go so far as to say anger that I have today for not being able to get more information that I thought we would be able to get to start this conversation,” Hill said. “Although it was started today, it didn’t give us the starting point that I had hoped we would get.”

PG/RG sometimes used as cover to restrict players

Massachusetts is the first state in which the issue of regulating betting limits has been discussed. Forty-one US states and jurisdictions offer legal, live sports betting.

The Massachusetts regulator also heard from professional bettor Jack Andrews, problem and responsible gaming consultant Brianne Doura-Schawohl and consultant Dustin Gouker.

Doura-Schawohl offered up that in Washington, DC, a player was limited and the reason given was responsible gaming concerns. But upon further review, she said, that was just a cover story. She also shared that in Australia, regulators responded to similar concerns by implementing bet minimums.

Andrews shared that on sports betting platforms in Massachusetts, maximum and minimum bets are not posted. And when bettors are limited, they don’t know until they place a bet that is kicked back. Andrews also shared that he was limited by DraftKings in New Jersey within three weeks. He was down $600 at the time.

He later had a chance to talk with DraftKings’ traders, who told Andrews they saw him”taking second-inning lines in baseball, and we knew that anyone betting second-inning lines must know what they are doing, and we didn’t want your action anymore.”

Consumers are angry, too

The roundtable came about after the MGC began hearing from consumers that their accounts were limited after wins. The commission received dozens of letters from players claiming their accounts were limited with no explanation. What commissioners are after, Maynard said, is an understanding about why players are limited and how that information is communicated to them.

If a letter from bettor Dave Connelly is any indication, at least some players are left in the dark. Connelly wrote that he had been limited by four operators in Connecticut, and included a screen shot of a letter he received from Fanatics. “We are not able to provide any additional information about why these changes have been made to your account.”

In letters from consumers in Iowa, Ohio and Virginia, bettors wrote that they were “severely” limited by multiple sportsbooks and were happy that Massachusetts is considering the issue.

Ideas for Massachusetts regulator: new license, lower barriers

Likely the most useful information to come out of the meeting was the suggestion from Andrews and Gouker to find a way to expand the market to smaller, less restrictive operators.

Andrews said that some smaller operators offer fewer markets, higher limits and peer-to-peer or exchange wagering. But those operators are shut out of Massachusetts because the “barriers to entry are very high.” He pointed specifically to the 20% tax rate and high licensing fees.

Gowker suggested the Massachusetts regulator create a second tier of licenses for smaller or unique operators as a solution. The MGC would be unable to create a new kind of license. The state legislature would have to do that.

Reports emerged earlier today (20 May) that Hard Rock was part of a group seeking to invest in Star. News broke in the Australian Financial Review and has also been reported elsewhere.

Reports suggest all Star land-based casinos would rebrand all under the Hard Rock name. It is also reported that each site would become less reliant on casino revenue and focus more on other aspects such as live music and hotels.

Star shares initially jumped more than 21.0% when the news broke just before midday local time in Sydney, Australia. Shares are currently trading 19.5% higher than today’s opening price.

Issuing an initial response, Star said it had received “inbound interest” from several external parties over potential transactions. It added that the nature of this interest is unsolicited, preliminary and non-binding, with no approach resulting in substantive discussions.

Star acknowledges Hard Rock interest

However, not long after, it issued another response, directly referencing Hard Rock. Star said it had not received a proposal directly from Hard Rock, but again confirmed interest from some parties, including one consortium featuring the Hard Rock Hotels & Resorts Pacific regional division of Hard Rock.

“The company has received inbound interest from a number of other external parties regarding potential transactions including a consortium of investors which includes the entity Hard Rock Hotels & Resorts Pacific, which Star understands is a local partner of Hard Rock,” Star said.

“The nature of the interest to date has been confidential, unsolicited, preliminary and non-binding. At this stage, none of the approaches has resulted in substantive discussions.

“Star remains focused on its remediation activities in New South Wales and Queensland and participating in the Bell Two Inquiry. Star will keep shareholders informed in accordance with its continuous disclosure obligations.”

The trials and tribulations of Star

The investment approach comes at a somewhat uncertain time for Star. The group currently finds itself the subject of yet another inquiry over its activities.

As referenced by Star in its response to the media reports, the second Bell inquiry launched in February. This is focusing on Star’s activities in New South Wales (NSW) and fallout of the first Bell report. 

One year after the first inquiry completed, a report into Star Sydney’s progress found the casino had implemented 22 of 30 recommended measures from the Bell report.

There is also an additional focus on the culture at Star. This covers risk management culture and Star’s management and reporting lines. In addition, the inquiry is examining whether Star has been able to obtain the financial resources needed to support The Star Casino.

Some relief with Queensland licence suspension extension

Alongside this, Star faces possible regulatory action in Queensland. Star was sanctioned in the state in December 2022 over a series of failings. The group was fined AU$100.0m (£52.8m/€61.6m/US$67.1m) and informed its licence would be suspended.

This came after an investigation into operations at Star Gold Coast and Treasury Brisbane. The inquiry ruled Star was found “unsuitable” to hold a licence in Queensland.

Primary issues include Star’s “concerted effort” to deliberately mislead banks and regulators on the purpose of China UnionPay transactions. Star also sought out individuals linked to criminal organisations and encouraged them to gamble. 

Other issues include social responsibility failings and deficiencies on anti-money laundering and combating terrorism financing practices. In addition, concerns were raised over historic dealings with junket operators.

Initially, Star was given 12 months to resolve issues flagged by investigators and prove it was suitable for a licence. An initial 1 December 2023 deadline was pushed back to 31 May this year after Star submitted a draft remediation plan to address issues.

Last week, this deadline was extended again to 20 December of this year. This is due to the authorities in Queensland wanting to see the results of the second Bell Inquiry before making a decision on Star’s licence. 

What else is going on at Star?

As if regulatory uncertainty were not enough, Star has also seen several senior staff leave the group in recent months.

These include group CEO and managing Robbie Cooke, whose departure was confirmed in March. Christina Katsibouba is also exiting as chief financial officer.

Meanwhile, Jessica Mellor is stepping down as CEO of Star Gold Coast and David Foster as executive chair. Foster had taken on additional duties following Cooke’s exit as CEO.

In addition, Star last month also published a trading update for Q3, with this showing a net loss of $6.8m. This, however, was an improvement on the $49.7m loss posted in Q3 of the previous year.

Q3 revenue was also down 4.6% to €419.2m, while normalised EBITDA fell 11.5% to $37.9m.

Hard Rock making moves

As for Hard Rock, the group has seen some level of movement in recent weeks and months.

Arguably the biggest news out of Hard Rock in recent times is its Hard Rock Digital business striking a deal to acquire certain US-facing B2C assets from 888.

Details of which assets Hard Rock will purchase have not been disclosed. However, 888 says it expects to the deal to complete in phases and finalise the sale by Q4 this year. The sale agreement came just weeks after 888 launched the strategic review.

Meanwhile, last week, Hard Rock revealed it will shut down The Mirage Hotel & Casino on 17 July for renovations. The group intends to develop a new integrated resort featuring a 700ft version of its iconic guitar-shaped hotel tower.

The final day for hotel occupancy at the iconic Las Vegas venue will be 14 July. Hotel and show reservations beyond this date will automatically be cancelled and refunded.

Hard Rock took over the property in 2022. Owned by Florida’s Seminole tribe, the complex is the first operated by a tribe on the Strip.

Instead, Minnesota’s session has been marred by the arrest of a state senator and mired in partisan politics. Although the house voted to convene on Monday (20 May) at 10am, the senate is adjourned for the session. In the final days, the DFL and Republicans called each other names, had shouting matches on the floor,and filibustered. Both chambers met in extended sessions – some going as late as 5am – beginning last week.

Over the weekend, an omnibus bill was created and included many key issues in an effort to get a vote on some issues. Sports betting is not believed to be in the bill, although lawmakers were unsure.

“Why don’t you go through it?” asked Minority Leader Mark Johnson during end-of-session media availability. “Why don’t you look?”

HHR machines were banned

Both parties live streamed post-session media availability.

Lawmakers did ban historic horse racing machines at the state’s race tracks Sunday morning. But the chance for a 39th legal US wagering market evaporated.

This year will be the first since the US Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018 during which no state legalised through a legislature.

Stakeholders enthusiastically pointed to Alabama, Georgia, Minnesota and Missouri as states that could pass legislation in 2024. None did. In Alabama, sports betting was stripped from a comprehensive wagering bill. Lawmakers did not pass the gutted version, which would have created a state lottery and allowed electronic games of chance at certain venues.

In Georgia, a bill passed the senate, but didn’t get out of the house. Legislators in the lower chamber never even debated a bill. In Missouri, the idea to tie legal wagering to video lottery terminals – which has failed repeatedly – persisted. That proposed marriage ultimately killed hope of legislative approval. Missouri’s sports teams are tired of the wait and will likely send the decision to the voters in November.

Minnesota lawmakers plagued by distractions

Minnesota State Representative Zack Stephenson once again carried sports betting in the house. Matt Klein was the champion in the senate. However long-standing issues remained a challenge.

Minnesota’s 11 tribal nations would have exclusivity for retail and digital wagering under Stephenson’s bill. But the state’s two race tracks are opposed and continued to push for a piece of the pie or a bigger payout than the $625,000 annually in Stephenson’s bill. By federal law, the tribes already have exclusivity to gambling and operator land-based casinos.

Stephenson was able to solve one issue that arose from a new law in Minnesota last year. The state’s charitable gaming groups make money from pull-tab machines. In the current setup, the state is the biggest winner in terms of pull-tab revenue. Allied Charities of Minnesota was looking to change the way the games are played to increase revenue.

The tribes balked, saying the change would make the pull-tabs too similar to slot machines. Stephenson brokered an agreement that would send $40m to charitable gaming. Because the bill didn’t pass, those groups won’t get the money this year.

Missouri initiative, DC bill last hopes

The road to the final day of the session also included multiple lawsuits between the tracks and tribes. In addition, the Minnesota Racing Commission decided to allow HHR machines at the tracks. In response, Stephenson moved a bill that would ban the machines. All of the distractions have taken time away from focusing on legal sports betting.

In the bigger picture, Missouri and Washington, DC are the only two US jurisdictions with hopes of opening up. Lawmakers in Mississippi tried to expand their market to include digital betting, but failed.

In DC, FanDuel in April took over the lottery’s GambetDC platform, giving bettors an improved option for wagering. But a DC Council bill could further open the market.

Agreed with the Australian Transaction Reports and Analysis Centre (Austrac), the proposal is now with the Federal Court of Australia. SkyCity and Austrac have put forward separate submissions for approval at a hearing on 7 June.

The penalty relates to a case that came to light in December 2022. At the time, Austrac said SkyCity Adelaide demonstrated a pattern of “serious and systemic non-compliance” with national AML and CTF laws.

While Austrac launched civil penalty proceedings in December 2022, the case actually dates back several years. An industry-wide compliance campaign began in September 2019, with SkyCity notified of alleged wrongdoing in June 2021.

Key issues include SkyCity failing to appropriately assess the money laundering and terrorism financing risks it faced. SkyCity also did not include risk-based systems and controls in AML and CTF programmes, nor did it establish a proper framework for board and senior staff oversight for these projects.

Other concerns include not creating an appropriate monitoring programme for transactions and identifying suspicious activity. Austrac also said SkyCity lacked an appropriate enhanced customer due diligence programme to carry out additional checks on higher risk customers.

In August last year, SkyCity said it had set aside $45.0m in anticipation of a civil penalty over the matter. However, the final amount agreed with Austrac is substantially more than this figure.

SkyCity executive chair apologises over failings

“We acknowledge that, as a casino operator, we play a key role in combatting money laundering and terrorism financing and safeguarding the community against these risks,” SkyCity executive chair Julian Cook said. 

“While we take this responsibility seriously, we accept we have failed to live up to the standard required of us and for this, on behalf of the SkyCity and SkyCity Adelaide boards and management teams, I apologise. 

“We know we need to do better to meet the expectations of our regulators, customers and our shareholders. This is a process that is already underway.”

Austrac CEO Brendan Thomas also commented on the matter. He said the action serves as an important reminder to casinos and the gaming sector to take their AML/CTF obligations seriously and be vigilant to money laundering and terrorism financing risks.

“Austrac took this action out of concern that SkyCity’s conduct meant that a range of high-risk practices, behaviours and customer relationships were allowed to continue unchecked for many years,” Thomas said.

SkyCity takes action over failings

In reaching the agreement, SkyCity notes how it has worked to address the failings at its Adelaide casino.

This includes appointing an independent expert to review SkyCity Adelaide’s AML/CTF programme and broader functions to identify areas for improvement. This took place in July 2021 and has led to changes at the venue.

On the back of this, SkyCity developed a comprehensive AML enhancement programme for the Adelaide casino. This, it says, takes into account failings listed in the initial case raised against the casino.

SkyCity Adelaide has also made numerous governance changes and expanded its financial crime and legal and compliance teams. Other changes include new investment in internal AML and CTF resourcing and capability, as well as strengthening its relationships with law enforcement agencies.

“Our enhancement activities remain ongoing,” Cook said. “We have further important work to do in New Zealand and Australia… which will take time to complete. 

“We remain committed to ensuring that we provide safe and responsible experiences and environments for our people and customers. SkyCity will continue to engage cooperatively and constructively with regulators.”

Wider concerns for SkyCity

As referenced by Cook, SkyCity also has work to do in terms of addressing similar issues in New Zealand. 

In February, it was confirmed SkyCity will face civil penalty proceedings in the country. New Zealand’s Department of Internal Affairs is filing proceedings in the high court against the operator and its SkyCity Casino Management (SCML) subsidiary.

This relates to SCML’s alleged non-compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 in New Zealand. If the claim is accepted, either in whole or partly, SCML could face a penalty of up to NZ$8.0m.

Draft pleadings set out five causes of action seen as “significant” compliance issues related to the Act. However, according to SkyCity, these mainly refer to historical matters, some of which were previously self-reported to the department.

Alongside this, SkyCity has made several changes to its senior management team. Just last month, SkyCity announced experienced gambling executive Jason Walbridge as its new CEO. 

Walbridge is set to begin his new role at SkyCity in July this year. He is replacing Michael Ahearne, who exited the business last month. SkyCity first announced Ahearne would be leaving in October of last year. 

Other recent changes include Julie Amey resigning from her position as chief financial officer. Amey will continue as CFO at SkyCity for a further six months, officially stepping down on 25 September.

In addition, SkyCity in March named Andrew McPherson as chief information officer on a full-time basis. He had been serving in the role on an interim basis since November. 

Both M&A deals were announced late last week. Greenlite did not disclose financial details of the No Limit agreement nor did Clairvest of the Wyoming Downs purchase.

Starting with Greenlite, the company expects its acquisition of No Limit (NLTH) to complete after a 30-45-day due diligence period. NLTH specialises in sports betting, primarily its “No Limit Betting Exchange”. 

NLTH also runs a daily fantasy sports platform and allows customers to use cryptocurrency, including its own NoLimitCoin offering.

Should the deal proceed as expected, NLTH founder Rafael Groswirt will become CEO of the merged entities. 

In addition, Greenlite and NLTH are working on synergies to support the enlarged business moving forward. This includes securing strategic media partnerships, podcast initiatives and celebrity collaborations

“The timing of this alliance couldn’t be better,” Greenlite chairman Russell Elbaum said. “With the launch of our new Sports Podcast Network led by Defo’s ‘Bury Your Bookie’ show, we’re primed to drive significant daily traffic to No Limit’s exchanges and platforms.”

Groswirt added: “Greenlite provides No Limit with the resources and platforms necessary to make our mark among the industry giants. The extensive sports and media connections of Greenlite’s top management and largest shareholders position us to partner and white-label with some of the biggest players in the game. 

“Together, we’re committed to seizing the myriad of opportunities that lie ahead.”

Clairvest and ECL close in on Wyoming Downs

Meanwhile, investment group Clairvest is partnering with ECL Entertainment to purchase Wyoming Downs, a live horse racing and off-track betting (OTB) operator. 

Wyoming Downs began live racing operations in the 1980s. The group expanded in 2013 to also begin running OTB. It now has 19 locations live across the state, offering over 1,100 gaming terminals.

ECL, meanwhile, is an owner-operator of historical horse racing (HHR) gaming assets across Kentucky. The Wyoming Downs purchase represents Clairvest’s second partnership with ECL in the HHR space.

“Wyoming Downs is a compelling entertainment option,” Clairvest president and managing director Michael Wagman said. “We believe it will simultaneously support the local community and equine industry positively.”

Marc Falcone and Ron Winchell, co-managing partners of ECL, added: “We look forward to building upon Wyoming Downs’ success to date and will continue enhancing the offering across the state over the next few years with the Clairvest team. 

“The horse racing and HHR gaming operations in Wyoming have great potential and we are excited to bring our collective horse racing and HHR experience to the Cowboy State.”