Category: News

Hedge-fund billionaire Cohen has set out plans for a development at Citi Field, the New York Mets’ stadium in Flushing Meadows-Corona Park. The proposed $8bn development in partnership with Hard Rock International includes a new entertainment complex, a live music venue and a Hard Rock hotel alongside gaming facilities.

This would be supported by community investments including 20 acres of new park space, five acres of athletic fields and playgrounds, underpinned by a commitment to “climate-ready infrastructure”. 

Named Metropolitan Park, it would be built on a 50-acre plot of land, currently used as the stadium’s parking lot.

However, Ramos has now taken a direct stand against the plans, reports Casino Reports. 

Ramos refusal could kill Cohen’s Queens casino

The Democrat, representing New York’s District 13, says she will not introduce legislation that would downgrade existing parkland in Corona to facilitate its redevelopment for the casino. 

“We want investment and opportunity, we are desperate for green space and recreation for the whole family,” Ramos said in a statement. “We disagree on the premise that we have to accept a casino in our backyard as the trade-off”.

Ramos decried “the generations of neglect that have made so many of us so desperate that we would be willing to settle” for a casino as the only way to spur a renewal of the area. This could prove a definitive blocker to the project, which requires Ramos to pass a parkland alienation bill, which would give Cohen permission to build on a site that is technically city-owned parkland. 

Instead, Ramos proposes an alternative alienation bill “that strikes a balance”. It would allow Cohen and Hard Rock to build a convention centre and hotel, as well as doubling the proposed open green space – but no casino. 

“The parcel in question is in strategic proximity to LaGuardia Airport, and allows for visitors and tourists to feed into our vibrant food scene while addressing the consequence of climate change in the area,” she said.

“Mr Cohen and Hard Rock would still make a profit, albeit less.”

Has the field for New York’s downstate casinos narrowed?

While the New York State Gaming Commission doesn’t expect to finalise the three downstate casino sites until late 2025, there are still plenty of operators jostling for position, with each facing their own difficulties.

Currently there are prospective sites across four boroughs including Cohen and Hard Rock’s Citi Field proposal, and one in Yonkers.

The runners and riders

Two of the bidders, MGM Resorts and Genting Group, aim to repurpose existing facilities. MGM aims to transform the Empire City Casino – a video lottery racino – into a full-scale commercial resort, while Genting’s Resorts World NYC in Queens could undergo a similar transformation. 

The Chickasaw Nation is part of a consortium vying for a licence in Brooklyn’s Coney Island in partnership with Saratoga Casino Holdings and Thor Equities. Locals have already voiced opposition through community forums, however. 

In Manhattan, there are two prominent bidders; Wynn Resorts and Caesars Entertainment. Wynn’s site in Hudson Yards is considered particularly attractive, though again locals have raised concerns especially about adding more traffic to an already congested area. 

Caesars, meanwhile, has partnered Jay-Z’s Roc Nation for a site in Times Square, one of the busiest areas of New York City. 

Up in the Bronx, meanwhile, Bally’s Corporation is bidding to build at the former Trump Golf Links at Ferry Point. That may hinge on a shareholder battle for control of the business. K&F Growth Capital is looking to prevent Standard General from taking the operator private, proposing a more streamlined approach that would take it out of the mix for New York.

Significant shareholder Donerail sent a letter to the Penn board of directors and board chair David Handler. In the letter, Donerail urged the company to sell assets to generate “meaningful and certain” value creation for investors.

Donerail stated its belief that Penn’s casino assets alone are valued at over double the company’s current market capitalisation.

The hedge fund manager noted heavy criticism of Penn from the investment community over its capital allocation strategy. It highlighted that Penn’s shares are down over 80% over the last three years.

Donerail said: “The growing pattern of guidance misses, alongside a demonstrated unyielding appetite to continue to invest in the company’s fledgling interactive projects, irrespective of past results and without a clear return framework, has significantly damaged the credibility of this management team and board of directors.”

Donerail is urging Penn to consider the sale of Penn’s assets, especially with other companies looking to grow through M&A.

“Our research over the last few months has left us with resounding confidence that the crown jewel of the company – Penn’s 43 gaming properties spread across 20 states – not only remains intact but has a stronger foundation than ever and continues to be highly valuable,” Donerail declared.

Interactive strategy “destroyed” shareholder value

In 2023, Penn divested Barstool Sports, selling the sportsbook back to its founder Dave Portnoy for $1 before launching ESPN Bet in November. This followed regulatory pushback, with Portnoy himself stating Barstool wasn’t a good fit with the gambling industry with concerns over his reputation.

“We underestimated just how tough it is for myself and Barstool to operate in a regulated world,” Portnoy explained, according to ProFootballTalk. “Every time we did something, it was one step forward, two steps back. We got denied [gambling] licenses because of me. So the regulated industry, probably not the best place for Barstool Sports and the type of content we make. It’s back to the pirate ship.”

In urging Penn to sell, Donerail was critical of the company’s ability to execute its interactive strategy. It stated the implied value of its estimated $4bn (£3.1bn/€3.7bn) investment into the sector was meaningfully negative.

Penn’s interactive revenue, which includes ESPN Bet, fell 11.1% to $207.7m over Q1. Penn attributed this to unfavourable hold on the major sporting events over the quarter. The company’s entire revenue decreased 3.8% to $1.61bn in the first quarter.

Donerail added: “While we understand that ESPN Bet appears as the company’s newest bright and shiny object that may very well have significant value under the right owners, we ask that the board take a moment to reflect objectively on the past four years of execution, assess the shareholder capital that has been destroyed, and recognise that shareholders may simply be tired of continued gambling on uncertain outcomes.”

Donerail questioned whether such loss of credibility could be rectified. The group called for an “immediate strategic shift” to prevent Penn’s equity price and shareholder returns stalling further.

Snowden criticised

Donerail criticised Jay Snowden, appointed Penn CEO in January 2020, for failed online gaming investments such as Barstool.

Donerail also highlighted the $99.3m in compensation Penn’s board had approved for Snowden between 2020 and 2023.

In 2022, when Penn’s stock fell by over 40%, Snowden received more than $14m. In the past, Donerail’s fellow investors such as BlackRock and Vanguard have voted against Penn’s executive compensation.

“Perhaps most concerning, Mr. Snowden appears to have little confidence in his own strategy or ability to lead Penn to success, given the fact that he has consistently sold stock and is, in fact, responsible for the most stock sales by any Penn executive since being named CEO,” Donerail continued.

“Since he was named CEO, Mr. Snowden has sold more than 750,000 shares, for proceeds of approximately $45 million, with several of his sales coming on the heels of the company’s deals and his own seemingly optimistic comments.”

Truist: Penn would survive without ESPN Bet

Despite Penn’s struggles, a Truist Securities report in April concluded the company would operate as normal even if ESPN Bet was to fail.

Penn’s interactive division would keep the company afloat should ESPN Bet stall, according to the report. Truist also stated Penn was well-placed to capitalise on ESPN Bet’s success despite the fact it’s still in the early stages of its existence.

“What we think the market is missing is that Penn Interactive is comprised of multiple businesses beyond just ESPN Bet,” Truist analysts wrote. “In the event that ESPN Bet falls through, then we think interactive would still have value for Penn.”

On the face of it, raising the sports betting tax rate seems like a good way for any state to bring in more revenue. But stakeholders say Illinois consumers will likely be the recipients of unintended consequences. During the house budget debate, one Republican representative suggested an appropriations line for funds to treat the Democrats’ unchecked “spending addiction.”

The budget bill is now headed to Pritzker’s desk, and it seems like a slam dunk that he will sign it. That, stakeholders say, will seal the fate of Illinois bettors.

“Players are probably going to see fewer promotions, and that is not good for the consumer,” West Virginia lawmaker and government affairs chief for Play ‘n Go Shawn Fluharty told iGB. “It could impact the lines, and that is another negative for the consumer. And it could force some operators out, which means less choice, which is also bad for the consumer.”

Increase bigger than Pritzker proposed

The progressive tax-rate idea surfaced last last week. The senate amended and passed the house budget bill 26 May. Two days later, the house concurred on a FY2025 budget that includes $700m (£549.7m/€645.1m) in tax increases. The bill must be sent to Pritzker within 30 days of passage.

Prtizker was the reason the legislature even considered a hike. The governor earlier this year began talking about an increase and ultimately proposed bumping the 15% tax rate to 35%. In the end, at least some operators will end up with an even bigger increase.

The budget that the general assembly sent to Pritzker includes a graduated tax rate that is dependent on adjusted gross revenue. Here’s a look:

20% tax on AGR up to $30m

25% on AGR of revenue between $30m-$50m

30% on AGR of revenue between $50m-$100m

35% on AGR of revenue between $100m-$200m

40% on AGR of revenue over $200m

The proposal separates retail and digital AGR, meaning that any in-person bets with a sportsbook will be taxed separately from digital bets. In 2023, no brick-and-mortar sportsbook reached wagering AGR of $30m, so it’s likely that going forward, all will be taxed at 20%.

It’s unclear if operators will pay a blended or single rate once AGR exceeds $30m. Seven of the state’s eight digital platforms had AGR above $30m last year. Will the first $30m of an operator’s AGR be taxed at 20%? And then the amount between $30m-$50m taxed at 25%? If so, operators will pay a blended rate.

Smallest operator would still see a 30% increase

On the digital side, DraftKings ($350m) and FanDuel ($421m) exceeded the $200m threshhold for FY 2024. Under the new plan, both would be taxed at 40%, a more than 140% increase. No other operator had AGR above $100m. The other six operators would see their tax burden increase up to 100%:

BetRivers ($81m) new tax rate — 30%

Fanatics ($51.7m) new tax rate — 30%

BetMGM ($44m) new tax rate — 25%

Penn/ESPN Bet ($42.3m) new tax rate — 25%

Caesars ($36.1m) new tax rate — 25%

Circa ($880k) new tax rate — 20%

The Sports Betting Alliance (SBA), comprised of BetMGM, DraftKings, Fanatics, and FanDuel, went beyond what Fluharty had to say.

“It’s also a subsidy to bookies and illegal market: legal operators have just started to make serious inroads into Illinois’ robust illegal sports betting market,” the SBA said in a statement. “Worse odds, no promotions, worse product all give the offshore illegal market apps (who pay no tax) a massive leg up when competing for customers. We shouldn’t be driving back customers to dangerous bookies and illegal offshore operators. That will mean less—not more—tax revenue for the state in the long run.”

‘Volatile’ tax rates make doing business tough

The decision by Illinois lawmakers isn’t a first. Last summer, Ohio Governor Mike DeWine was the architect of doubling that state’s wagering tax. Operators there saw their rate double, from 10% to 20%. New Jersey lawmakers are contemplating an increase — from 13% to 30%. Massachusetts lawmakers earlier this month shot down the idea of hiking taxes from 20% to 51%.

The changing landscape could make it difficult for operators to commit to certain states.

“Operators need to budget when they enter a state,” Brian Wyman of Innovation told iGB. “For the state to go from 15% to 35%, it makes it impossible for operators to pay fair prices to their suppliers, and they can’t pay high licensing fees. If the rules of the game are so volatile and everyone is waiting for the ‘other side’ to do something different, that’s not a good way to do business. You’re going to see a backlash as other states come on.”

Illinois operators have already paid high licensing fees — it cost $10m to get into the state tethered to a casino or pro sports venue.

DraftKings, FanDuel have made capital investments

As budget negotiations were going on in Illinois, it was reported that DraftKings and FanDuel might have to reconsider their presence in the state. Dating to 2019, when sports betting was legalised, it has seemed as if Illinois didn’t want them. The law includes three $20m stand-alone mobile licenses intended, it seemed, for companies with no retail footprint. Owners of those licenses would have had to wait 18 months to launch, while those tethered to casinos were able to launch sooner.

At the time, neither DraftKings nor FanDuel was much in the brick-and-mortar sportsbook business. But both partnered and invested in existing businesses in order to launch sooner. Five years later, there is a DraftKings-branded sportsbook at Wrigley Field and a FanDuel-branded sportsbook at the United Center. DraftKings also has a retail sportsbook at the downstate Casino Queen, and FanDuel has a physical location at Fairmount Park.

Wyman said it would seem that lawmakers would want to give “preferential treatment” to companies that invest in a state. Illinois is not the first place to at least appear not to do that.

In Maine, when sports betting was legalised, the state’s two casinos were shut out in favour of its four Indian tribes.

‘Prescription to promote, preserve’ black market

A bigger concern, as pointed out by the SBA, is whether or not the decision to raise taxes will ultimately create an opening for the black market. Operators have long contended that restricting betting markets or limiting choices sends bettors looking for better deals.

To that end, raising taxes to the point where operators cut back on promotions, increase odds, or do anything that could cause a consumer to seek another option is perceived as negative by the industry.

“Increasing tax rates at a time when market entrants are directly competing with illegal offshore sites is merely a prescription to promote and preserve that still-present illegal market,” American Gaming Association SVP for government relations Chris Cylke said via e-mail.

“As regulations evolve and policymakers consider changes, it is crucial they continue to design and promote regulated markets that emphasize continued innovation and competition that build on the industry’s momentum in migrating bettors out of the illegal market and into the legal market, not jeopardise that progress.”

The launch builds on the LiveScore Bet platforms already live in Nigeria and the Netherlands. Kambi is replacing a third-party supplier to power the new sportsbook.

Confirmation of the roll-out comes after LiveScore and Kambi entered into a new sportsbook partnership in October of last year. The deal covers both the LiveScore Bet and Virgin Bet brands.

Kambi is providing its sports betting product suite for the new-look sportsbook. This offering includes a sports betting platform, managed services, AI-powered trading and Bet Builder.

In addition, the LiveScore in-house product teams will utilise Kambi’s open APIs, incentives tools and bespoke bet offer specials.

“We are delighted to have launched in the UK and Ireland with our enhanced sportsbook product ahead of the Euros and Copa América,” LiveScore Group CEO Sam Sadi said.

“It was crucial we were live on time in one of our most important markets. In collaboration with Kambi, we are incredibly excited to deliver memorable sports betting experiences for our players during these prestigious tournaments and beyond.”

Kambi’s managing director added: “This launch is a significant milestone in our partnership with LiveScore Bet. Kambi is committed to delivering a flexible sportsbook product that can be customised to meet the specific needs of each operator in their respective target markets. 

“The UK and Ireland are both highly competitive, but by leveraging the combined strengths and expertise of LiveScore Bet and Kambi technology, LiveScore Bet is uniquely positioned to create a one-of-a-kind sportsbook offering.”

What next for LiveScore?

The UK and Ireland launch marks the latest step for LiveScore and its ongoing expansion plan.

The group already has a sports betting presence in other markets including Nigeria, the Netherlands, Malta and Gibraltar. When the Kambi deal was announced last year, the group said it hoped to go live in “multiple” new markets. 

The actual LiveScore brand has been around since 1998, offering live scores from events around the world. At present, it has over 50 million daily users across more than 200 territories. 

LiveScore Group formed in 2019 following a spin-off from Gamesys and launched its first sportsbook product in the following year. Gamesys acquired the business in 2017 and, following Gamesys’ £490m sale to Jackpotjoy Group and the £2.0bn merger with Bally’s Corporation, LiveScore Group stands alone as an independent business led by Sadi. 

Mixed Q1 at Kambi

As for Kambi, the group last month released its Q1 results, with these revealing a slight drop in revenue to €43.2m (£36.7m/$46.7m).

Pre-tax profit hit €4.4m, in line with the amount posted last year. After paying €1.2m in tax, net profit for the quarter hit €3.2m, only marginally lower than in Q1 2023. In addition, EBITDA was 10.2% higher at €14.1m.

The mixed Q1 followed a follows a tricky 2023, during which CEO and co-founder Kristian Nylén said he was “not satisfied” with its financial performance. However, looking at Q1, Nylén was more upbeat. 

Nylén singled out the launch of LiveScore Group’s new Kambi-powered sportsbook in Nigeria as a key highlight. He also referenced the roll-out in the Netherlands soon after.

He went on to say the LiveScore partnership as a whole is “pivotal” for the group. 

The monthly total was 6.9% ahead of $1.16bn in April last year but 3.9% less than $1.29bn in Nevada in March this year. March was also lower than February’s total, with February having been boosted by Nevada’s hosting of the NFL’s Super Bowl.

Once again, slots proved to be the primary source of revenue for operators, generating a total of $886.8m. This is 5.9% higher than in April last year. Multi-denomination slots drew the most revenue at $586.8m during the month, a rise of 26.4%. 

High-stakes slots also saw more revenue, with increases across both $25 (up 137.6%) and $100 machines (up 14.5%). In contrast, revenue from all lower-stakes machines was down year-on-year.

Blackjack and baccarat drive growth

Looking elsewhere in Nevada, revenue from table, counter and card games – including sports betting – climbed 9.8% to $353.4m. 

Within this segment, blackjack drew the most revenue, generating $110.2m in April, up by 16.0% year-on-year. Baccarat revenue also hiked 72.5% to $76.1m, while roulette revenue increased 4.6% to $35.9m.

In contrast, revenue from craps dropped 25.5% to $30.3m during the month, while Ultimate Texas Hold’em edged down 1.1% to $15.1m.

Sports betting revenue dips 5.0% in April

Focusing now on the sports betting market, revenue here was 5.0% lower at $30.8m in April.

Basketball wagering generated the most revenue at $13.3m, down by 12.1%. Revenue from baseball betting increased 18.4%% to $10.7m and hockey wagering revenue jumped 74.2% to $5.7m.

Football betting generated a $5.7m loss for operators, but this was a 17.1% improvement on last April. Wagering on other sports generated $6.8m in revenue, down 31.6% year-on-year.

Some $24.5m of all sports betting revenue in Nevada came from wagering online.

Las Vegas Strip revenue reaches $666.1m

As for the famous Las Vegas Strip, revenue in April amounted to $666.1m. This is 6.6% more than in the same month last year but 7.0% short of March’s total.

Slots revenue increased 5.1% to $409.3m, with high-stakes machines again seeing the most improvement. However, multi-denomination slots generated the most revenue at $276.9m, up 28.2%.

Table, counter and card games revenue amounted to $256.8m, also up 9.2% year-on-year. Blackjack drew the most revenue at $81.7m, up 10.2%, just ahead of baccarat on $76.7m, a rise of 11.6%.

Sports betting revenue on the Strip slipped 26.5% to $9.7m during April.

What else is happening in Nevada?

Looking at the wider Nevada market, the state has seen several key developments in recent weeks.

Earlier this month, London-listed Entain gained unconditional approval to operate in Nevada. The operator currently runs in the US as BetMGM, its joint venture with MGM Resorts.

Entain previously operated under a two-year licence and, more recently, a three-year licence that expired in May. The temporary licences reflected concerns from the Nevada Gaming Commission over its operations in unregulated markets. 

However, full approval suggests the Commission believes this is now in the past.

Meanwhile, Gaming and Leisure Properties (GLPI) announced the $105m acquisition of three casino resorts in South Dakota and Nevada.

GLPI acquired the real estate assets of Baldini’s Casino in Nevada. Baldini’s stretches across nine acres with around 492 slot machines.

It has also secured the Silverado Franklin Hotel & Gaming Complex and Deadwood Mountain Grand casino in South Dakota.

The VGCCC found patrons continued to play the pokies at the three Victoria casinos outside of opening hours. The commission said it takes such offences “seriously”, choosing to utilise available enforcement action by fining the casinos.

The VGCCC noted that venue operators can opt in to a free offering by Intralot Gaming Services that automatically switches poker machines on and off to align with opening hours.

Operators have also been urged to closely monitor poker machine play and review their licence conditions. The VGCCC encouraged operators to ensure processes are in place to restrict pokies to only being played during opening hours.

New online gambling measures in Victoria

In April, the VGCCC confirmed alterations to online gambling accounts. The new requirements were effective from 1 April.

The changes largely centred on how players viewed information relating to their online accounts. Information on spending will now deduct free and bonus bets from net losses, while net win figures will also be more accurate by excluding all stakes from total payouts.

Additionally, operators must use plain English, taking care to limit unnecessary jargon. The use of black and red should also be restricted to show losses more clearly.

The VGCCC stated it could issue operators with 60 penalty units, equivalent to AU$11,539, for each non-compliant activity statement.

VGCCC chief executive Annette Kimmitt stated: “The days of inconsistent player activity statements are over.

“Wagering account holders will be better informed about their spending. Therefore, they are better equipped to make informed decisions about their gambling, thanks to the clarity and fairness these changes bring.”

VGCCC clamping down

The VGCCC has made increasing efforts of late to punish operators who breach rules on responsible gaming.

MintBet, for instance, was fined AU$150,000 in April for repeatedly breaching responsible gambling regulations. It was found to have violated measures by allowing a player to gamble for 35 hours over a period of around 50 hours. Over that duration, the player in question lost $31,149.

Tabcorp, meanwhile, was ordered to make the majority of its electronic betting terminals in Victoria cashless after numerous cases of underage gambling.

Players will be required to purchase a voucher. To do so, they must pass an ID check at the counter to ensure they are the legal gambling age of 18 or over.

The MGCB alleges that Bovada operator Harp Media BV is allowing Bovada.com and Bovada.lv to be accessible to Michigan players. This is despite it not having the appropriate licence.

The regulator has accused Harp Media BV of infringing upon several Michigan gambling laws. This includes the Lawful Internet Gaming Act, the Michigan Gaming Control and Revenue Act and the Michigan Penalty Code.

Only federally authorised tribal casinos and casinos licensed under the Michigan Gaming Control and Revenue Act are permitted to apply for an online gaming or sports betting licence.

Running an unlicensed gambling operation is a felony. Offenders could face a punishment of up to ten years in prison or a fine of up to $100,000 (£78,562/€92,276), or both.

Harp Media BV has 14 days from the receipt of the order to block Michigan residents from using its services. The letter was sent yesterday (29 May). After this period the MGCB will take legal action.

Henry Williams, executive director of the MGCB, said the cease-and-desist acts as a warning to other international operators.

“The proliferation of online gaming platforms has led to increased scrutiny from regulatory bodies worldwide and this action serves as a stern warning to overseas companies that flouting local regulations will not be tolerated,” said Williams.

“The MGCB remains steadfast in its commitment to upholding Michigan’s laws and regulations and will continue to actively monitor and enforce compliance within the state to ensure a fair and secure gaming environment for all.”

Curaçao re-regulation to improve reputation in industry

Bovada’s Curaçao homebase is currently in the process of reforming its gambling legislation. It is awaiting the implementation of the National Ordinance for Games of Chance (LOK), a new piece of regulatory legislation.

It is hoped that the incoming LOK will tighten up Curaçao’s industry reputation. The region has long been associated with lax anti-money laundering (AML) rules and criminal activity.

The LOK will replace the current legislation, the National Ordinance on Offshore Games of Hazard (NOOGH). Javier Silvania, Curaçao’s minister of finance, has said that the LOK would provide a “safety net” from grey-listing by AML body the Financial Action Task Force (FATF).

Earlier this month, Michigan reported an 8.7% drop in online gaming revenue for April. Sports betting and igaming operators in the state recorded $234.8m in April revenue, slipping month-on-month. Detroit’s casinos also reported a dip in revenue for April, sliding 11.7% monthly to $109.4m.

Prime Minister Rishi Sunak announced the 4 July general election last week. Yesterday (29 May), Andrew took to X – formerly known as Twitter – to confirm that he would no longer be a member of parliament.

“As of midnight tonight, parliament will dissolve and there will be no members of parliament until after the general election,” he wrote. “As the constituency of Pudsey, Horsforth and Aireborough will no longer exist at this point, I am no longer a member of parliament.

“All the very best for the future to all of my former constituents.”

Andrew was the Conservative MP for Pudsey. He was also the parliamentary under secretary of state for sport, gambling and civil society, as well as the minister for equalities.

The dissolving of parliament means that Andrew no longer holds the role of gambling minister. He was appointed to the role in March 2023, one month before the long-awaited Gambling Act review white paper was released. Andrew was the sixth minister appointed to oversee the review.

He succeeded Paul Scully, who was revealed to be the fifth minister appointed in October 2022. Prior to Scully was Damian Collins, who was preceded by Chris Philp. The first gambling minister – Nigel Huddleston – served in the role between 2018 and 2021 before being replaced by John Whittingdale.

Affordability checks top priority

With the process of implementing the Gambling Act review well under way, it is unlikely that the absence of a dedicated gambling minister will have much effect.

Progress in this area has ramped up in the last month, with both the GB Gambling Commission and the department for culture, media and sport (DCMS) making strides in their allotted policies. Certain aspects of the review are under the management of the Commission, while others require parliamentary legislation to pass.

At the beginning of May, the Commission outlined the next steps for some of the white paper’s most pressing policies – affordability checks, online games design, optimising consumer choice on direct marketing and improving age verification for land-based operations. These proposals were debated in the Commission’s first consultation round last summer.

The most talked-about aspect of this update was the announcement of an affordability checks pilot. The pilot is set to last for six months. The Commission stressed that customers would not be impacted by the trial and it would only be rolled out when the process of data-sharing is frictionless for a  “vast majority” of customers subject to checks.

Tim Miller, the Commission’s executive director, confirmed that an affordability checks pilot scheme was imminent in February.

Alongside the pilot, the Commission announced “light-touch” financial vulnerability checks. This will be implemented in two stages – firstly in August 2024 and then in February 2025.

White paper policies barrelling ahead regardless

As for the remaining three policies, the Commission announced that a number of games’ features are set to be banned from 17 January 2025. These include features that give the illusion of control, such as “turbo” and “slam stops”, autoplay and spin speeds under five seconds.

All land-based licence holders will also have to comply with tighter rules on age verification. Finally, all gambling companies will have to provide customers with the option to opt-in on which games types they would like to receive direct marketing on, as well as which channels.

Two weeks later, DCMS announced a host of new land-based rules stemming from the white paper. However, the reform in this area was also brought about by the ‘Smarter Regulation to Grow the Economy’ policy document, which was released in May 2023.

The DCMS announcement proposed five policies for implementation. The first is abolishing the ban on using debit cards on gaming machines, which will be enacted in relation to applicable player protection rules.

Under the proposals, a 2:1 ratio of Category B to Category C and D gaming machines will also be permitted in bingo halls and arcades. Casinos under the 1968 Act will also be allowed to increase their number of gaming machines to 80, if they meet the sizing rules of Small 2005 Act casino.

In addition, there will be an 18-or-over age limit for low stake Category D slot-style machines that pay out cash. Licensing fees for maximum chargeable premises will also be raised by 15%.

SweepX offers dual-wallet, store management for redemptions and prize rewards, together with AI-assisted content management technology from GiG.

Featured GiG technology includes GiG’s real money igaming platform, which is already live in the US, Europe and Latin America. This is combined with a bespoke sweepstake back office, AI-assisted gamification layer and a library of sweepstake casino content.

Accompanying the launch is a new binding head of terms for a strategic partnership with Primero Games. Under the deal, GiG will power the operator’s expansion into the online social sweepstakes casino market.

Founded in 2009, Primero Games develops casino software and equipment for the gaming industry. The operator runs over 50,000 sweepstakes machines across the US. It also owns UK retail operator and content studio Storm Games.

GiG expects solution to power market growth

“SweepX is the result of our tireless pursuit of excellence for product innovation across the online sweepstake market,” chief business officer of GiG Platform & Sportsbook, Andrew Cochrane, said.

“As an extremely experienced turnkey solutions provider, the strength inherent in our technology and services has allowed us to develop what we consider to be the leading platform, data and AI-driven solutions available within social gaming and will help power the growth of the market across the US within the next few years.”

Primero CEO Barry Rutherford added: “GiG’s world class platform will allow us to bring more content and an experience for our players that is second to none. Combining our unique player acquisition strategy and GiG’s innovative technology, we are positioned perfectly for the US market and for igaming markets across the globe.”

GiG close to completing split

The news comes as GiG edges closer towards completing is planned business split. Speaking after GiG published its Q1 results this month, chairman Petter Nylander said he hopes to complete the split by Q3.

Last year, GiG announced it was to split the two businesses: GiG Media and Platform and Sportsbook. While this is yet to take place, GiG spent most of last year preparing for the move. As such, GiG has elected to report Q1 with the business as a whole – and to allow for year-on-year comparisons.

Group-wide revenue in Q1 jumped 27.5% to a record €36.2m (£30.8m/$39.2m). Of this, €28.0m came from GiG Media and Platform and Sportsbook €8.3m.

Plans for Flutter to list shares on the NYSE were announced in December, with the group eyeing a secondary listing. This then escalated in May when shareholders voted to approve to relocate its primary listing to the US.

Work has been ongoing to complete the transition, with the aim of listing by the end of May. Today’s (31 May) news confirms Flutter has hit this target.

Completion follows the transfer of its listing category on the Official List of the Financial Conduct Authority from ‘Premium Listing’ to ‘Standard Listing’. This is effective as of 08:00 BST today.

Flutter shares remain eligible for and continue to trade on the Main Market of the London Stock Exchange (LSE). Thes shares are located within the Standard Listing segment.

“Today marks an important milestone in the evolution of Flutter with the commencement of our primary listing on the NYSE,” Flutter CEO Peter Jackson said. 

“This closely follows the recent move of our operational headquarters to New York. Both reflect the increasing importance of the US sports betting and igaming market to our business. 

“We have a fantastic position in the US, with FanDuel the clear number one operator, and we look forward to this next step on our journey.”

Flutter names Coldrake as new CFO

In relation to this confirmation, Flutter has announced that Edgecliffe-Johnson is leaving as group CFO with immediate effect from today. 

Flutter said in anticipation of its US primary listing, its board spoke with Edgecliffe-Johnson about the “extensive” executive management time to be spent in the US. This was in light of his family commitments in the UK.

As such, Flutter concluded it is in its best interests Edgecliffe-Johnson to step down as group CFO. He will also leave his role as executive director of the business.

His replacement, Rob Coldrake, steps up having served as CFO of Flutter International since joining the group in 2020. 

Prior to this, Coldrake spent 14 years working in a range of financial roles at TUI Travel. He also had a spell at PricewaterhouseCoopers.

“During his four years at Flutter, Rob has shown himself to be a CFO of exceptional calibre,” CEO Jackson said. His skills and experience will help us to take advantage of the significant opportunities before us. 

“I would like to thank Paul for his contribution to the group, particularly in relation to achieving our US primary listing, and I wish him and his family well.

Flutter chair John Bryant added: “The board is especially delighted we were able to develop such a high-quality executive within our own business.  We look forward to working with him and the team into the future.  

“I would also like to take the opportunity to wish Paul well and to thank him for his contribution to the group.”

Net loss hits $375m at Flutter in Q1

The developments come on the back of a tricky Q1 for Flutter, during which it reported a net loss of $375m (£295m/€346m). This came as higher expenses and negative foreign currency translation offset a 16.4% year-on-year increase in revenue.

Revenue was up to $3.40bn, with Flutter reporting growth across almost all markets, with the exception of Australia. However, it is the US where the group continues to see the most growth, with ongoing expansion driving its listing transition.

In Q1, activity in the US accounted for more than 40.0% of all revenue at $1.41bn. Not only this, igaming gross gaming revenue (GGR) share hit a new high of 27%, helped by its focus on direct casino players and customer experiences, and the addition of new games and content to FanDuel Casino.

As for sports betting, online net gaming revenue market share also increased to 52%. During Q1, FanDuel went live in both Vermont and North Carolina, increasing its overall customer base and reach in the process.

Total new sportsbook and casino player volumes were lower in the quarter. This, Flutter said, is due to a full quarter of significant Ohio acquisition volumes last year. However, new players acquired in states that launched before 2022 was 12% higher than last year.

However, while the US growth is something to celebrate, higher costs let to a comprehensive net loss of $375m. This is in contrast to a $54m net profit in 2023. Last year’s figure was helped by significant foreign currency gains.

However, there was better news in terms of adjusted EBITDA, which improved by 46.0% to $514m. When excluding the US, this amount hit $488m, up 20.2% year-on-year.