Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. M&A activity concerning Super Group and Bally’s, an RFA concerning potential new casinos in New York, a Swedish investigation, potential monopoly drop in Finland and white paper urges in the UK, all form part of first headline recap of 2023.
12
Super Group is looking to maintain “a consistent track record of driving profitable growth” after expanding its global footprint following the purchase of Digital Gaming Corporation.
The acquisition of the online sports betting and igaming will provide the company, which also boasts Betway and Spin as part of its network, with market access in up to twelve US states, eight of which are live.
This purchase, which was first disclosed in April 2021, enables Super Group’s US market entry, with ambitions of a swift expansion across the country being eyed.
DGC is currently live in Iowa, Pennsylvania, New Jersey, Arizona, Colorado, Indiana, Virginia and Ohio, all of which utilise the Betway brand, which it licences from Super Group on an exclusive basis.
During the first quarter of the new year, DGC expects to go live in Louisiana, which will join Arizona, Virginia and Ohio on the Betway technology platform.
7.1
A Labour MP has warned that the government “must not put at risk yet another British industry,” and cautioned that any proposed changes in the much delayed white paper need to be “sensible and proportionate”.
Writing in The House for the Betting and Gaming Council, John Spellar MP advised that “backing British business and protecting British jobs is vital to the success of our economy” amid a “grim warning of a worldwide recession” by the IMF.
Criticism is levelled at a Conservative government that has experienced highly publicised internal uncertainty throughout 2022, including three Prime Ministers’ during the year, for being “all too willing to turn its back on British business”. Manufacturing, technology or leisure and hospitality are all cited.
Labelling the white paper as “an opportunity to safeguard a £7.1bn Great British success story,” Spellar highlighted bet365 as a British success story before referencing EY reports, which are also alluded to by the BGC, in pointing to the industry’s contribution to the British economy and sports.
Furthermore, Spellar also reiterated consistent BGC warnings of potentially dangerous wholesale implications to come from the white paper, cautioning against potentially throwing open the gates to the black market.
31
The Swedish gambling regulatory has been tasked by the country’s government with investigating why players choose to withdraw from the activity, as well as if these individuals maintain play with illegal entities.
Furthermore, the assignment will also see the Spelinspektionen look into the potential necessity to offer an added wave of options when it comes to suspension via the SpelPaus self exclusion register.
The alternatives to be considered, said the SGA, could include if additional choices are required when it comes to the length of the suspension, or whether it should be possible to choose which forms of play you want to be suspended from.
The investigation looking into the reasons for exclusion from SpelPaus, as well as looking into the percentage of those suspended that choose to play with gambling companies without a Swedish licence, must be submitted by October 31, 2023, at the latest.
2017
After years of rejecting recommendations to shift from a monopoly to a multi-licence framework, the Finnish government is reportedly changing its tune.
Tytti Tuppurainen, Minister of Europe and Ownership Management, of the governing Social Democratic Party, disclosed in a recent interview to MTV Uutisten that a report examining a potential transition has been ‘hastened’.
Veikkaus has functioned as the state-backed gaming monopoly since 2017, offering gambling machines, lotteries and betting – a change to a multi-licence would enable other firms, including overseas operators, to enter the market, and the Finnish government to tax these companies.
21
Penn Interactive was deemed suitable to hold a licence in Massachusetts after the state’s Gaming Commission voted unanimously to approve a temporary category three sports wagering operator permit, which will be tethered to Plainridge Park Casino.
The move followed several public meetings between all parties, however, a number of conditions have been imposed on the Barstool Sports, which PENN will take full control of next month, that must be met ahead of a potential entry into the region’s digital ecosystem.
In handing down a “preliminarily suitable” finding, it has been deemed that the company must ensure that no one under the age of 21 is permitted entrance into any live Barstool College Football Show events, as well as providing the MGC with diversity goals.
Further conditions include providing updates on an Indiana violation and pending action in Illinois, and fully cooperating with an Investigations and Enforcement Bureau probe into Barstool branding.
500
Successful applicants bidding to secure a licence to run one of up to three casinos in the New York city region will be required to pay a fee of at least $500m.
This was revealed after the New York Gaming Facility Board unanimously voted to issue a Request for Applications, which revealed that licences will run for between 10 and 30 years depending on the proposed total investment of the applicant’s project.
Revenue from the new gaming facilities is expected to generate substantial fiscal benefit to public schools across New York, local governments and problem gambling treatment services.
Furthermore, the board warned that jobs created by these casinos must deliver liveable wages to help families live, stay and prosper in New York.
However, it is also noted that applicants must first complete local government zoning and land-use processes, as well as gain the green-light from a Community Advisory Committee, before progressing to the board for consideration.
6
The six successful applicants of fresh ten-year gaming permits in the Asian gambling hub of Macau saw their new licences kick into gear, as analysts predicted a 2023 bounce back following a year of struggles.
The awarding of a new 10-year gaming concession contract permitted the operation of games of chance or other games in casinos in the region from January 1, 2023.
In November, after considering the contents of each submitted, the list of recipients was confirmed as Melco Resorts (Macau), MGM Grand Paradise, Galaxy Casino, Venetian Macau, Wynn Resorts (Macau) and SJM Resorts. This saw Genting Malaysia miss out on its bid to muscle in on the action.
635
Bally’s and Gaming and Leisure Properties finalised a sale and leaseback transaction regarding a pair of the former’s casino resort properties.
This saw the real estate investment trust acquire the land and real estate assets of Bally’s Tiverton Casino & Hotel in Tiverton, Rhode Island, and Bally’s Hard Rock Hotel & Casino Biloxi in Biloxi, Mississippi, for a total consideration of $635m.
These venues have now been added to operators master lease, with GLPI also retaining the option, subject to receipt by Bally’s of required consents, to acquire the real property assets of Bally’s Twin River Lincoln Casino Resort in Lincoln, Rhode Island, prior to December 31, 2024, for a purchase price of $771m and additional rent of $58.8m.