Daily Archives: May 21, 2024

West Flagler to SCOTUS: DoJ laid out why you should hear Florida wagering case

On Tuesday (21 May) West Flagler and Associates (WFA) discounted a recent argument by the the US Department of Justice (DoJ) in the Florida sports betting case. The reply from the pari-mutuels suing the federal government is the final piece needed before the US Supreme Court (SCOTUS) considers whether or not it will take the case.

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..

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Michigan online gaming revenue drops 8.7% to $234.8m in April

Michigan sports betting and igaming operators reported $234.8m (£184.7m/€216.3m) in April revenue, down 8.7% on March’s total.

March’s revenue figure of $257.1m was the highest total in Michigan so far in 2024, although 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..

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US April round-up: growth in Louisiana but New Hampshire declines

Casting an eye over the latest monthly US state results, iGB analyses sports betting growth in Louisiana during April and a decline in revenue and handle in New Hampshire.

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, wit..

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High regulatory costs driving potential for M&A “boom” in Brazil

Economist Adam Patterson believes high regulatory costs will drive an M&A “boom” for Brazil's sports betting market.

Brazil passed Bill 3,626/2023 to regulate sports betting and igaming on 21 December. President Luiz Inacio Lula da Silva then signed the bill into law later that month.

The country is currently in the process of rolling out its regulations. Licence fees are expected to cost BRL30m (£4.6m/€5.4m/$5.9m) for up to three brands.

Normative Ordinance No 722 outlined regulations on the technology and security requirements of betting systems. Operators must gain certification of their systems from accreditation entities recognised by the ministry of finance. They must also keep their systems constantly updated to maintain compliance.

With operational fees expected to be costly, smaller companies could face obstacles if they are to operate in Brazil.

Patterson is an economist and partner at Redirection International, which specialises in M&A and has a team working in Bra..

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