August 2024 – Page 5

August 13, 2024

Flutter beats street and won’t tax winners in the US; DraftKings backs off plan

Flutter CEO Peter Jackson said on Tuesday (13 August) that his company has no plans to follow DraftKings' lead with a winners' surcharge. The company, the market-share leader in the US, reported second-quarter results that exceeded analyst expectations and raised earnings guidance for FY2024.
DraftKings in early August announced that it will introduce a winners’ surcharge in four high-tax states beginning 1 January 2025. Industry watchers have since been waiting to see if other companies, and Flutter in particular, would follow suit.

“We have no plans to introduce a surcharge to winners,” Jackson said during the Q&A portion of the call. He then declined to entertain the issue further when others asked.

Less than an hour after the Flutter call ended, DraftKings released an announcement saying it would not move forward with the idea.

DraftKings Statement on Gaming Tax Surcharge pic.twitter.com/cucbsQJIVD
— DraftKings News (@DraftKingsNews) August 13, 2024

Other companie..

August 13, 2024

Nebraska wagering bill gets out of committee, but floor vote uncertain

On Monday (12 August) Nebraska's General Affairs Committee advanced a constitutional amendment that would put the decision of whether or not to expand gaming to include digital sports betting to the voters.
The committee voted, 5-2, to send LR3CA to the floor, but failed to advance framework legislation. If the Nebraska wagering bill passes and voters approve the ballot referendum, the legislature will be tasked with deciding what digital wagering will look like.

In addition the framework legislation, LB13, includes language that would have put the constitutional amendment on the ballot this year. Unless an exception is made, the decision won’t go to the voters until 2026.

Senator John Cavanaugh introduced a change to LR3CA before it passed. According to the Lincoln Journal-Star, Cavanaugh said the change “keeps power in the hands of the legislature, allows voters to speak on it and then lets the legislature decide once it’s legal how proscriptive you want to make it”.

He al..

August 13, 2024

EstrelaBet and SportyBet among latest Brazil betting licence applications

With just over a week to go until the 20 August deadline, on Monday (12 August) EstrelaBet and SportyBet submitted licence applications to operate betting in Brazil.
Reals Bet then applied today (13 August), taking the total number of applications in Brazil to 13.

Operators that apply within the 90-day initial submission window will ensure their applications are processed ahead of 1 January 2025. That is currently expected to be the launch date for the legal market.

After that date, operators active without a licence will face punitive measures.

The trio joins the likes of Betano and Betsson in applying for licences to operate in what looks set to be a huge market. A recent International Betting Integrity Association study predicted Brazil could reach $34bn (£26.8bn/€31.1bn) in sports betting turnover by 2028.

EstrelaBet chief business officer Fellipe Fraga recently told iGB the company was waiting for the final regulations to be outlined before it applied for a licence.

“There a..

August 13, 2024

North Carolina handle lowest since March launch; Indiana records another high hold

Sports betting handle in North Carolina fell for the fourth consecutive month in July, although revenue increased for operators in the Tar Heel state thanks to an improved hold.
Total handle for July was $340.4m (£266.6m/€311.4m), down 14.5% from June. It is also the lowest monthly total since North Carolina launched legal online sports betting in March.

July is traditionally a quieter month in the US sports betting calendar and, while the MLB season is underway, North Carolina doesn’t have a team in the league.

There were only three major sporting events taking place in July. Wimbledon from 1-14 July, and the Copa América concluded on 14 July – with matches played at the Bank of America Stadium in Charlotte, North Carolina – and the Olympics started at the tail end of the month.

Stronger hold grows North Carolina sports betting revenue
During the month players wagered $328m with North Carolina sports betting operators, who handed out a further $12.4m in promotional credits. Playe..

August 12, 2024

Politics of DraftKings’ proposed winners’ tax – and how the US industry is responsible for high wagering taxes

There is an argument to be made that DraftKings put the gambling industry in a tough spot in 2019 when it agreed to a 51% tax rate in New Hampshire and that its latest idea to impose a surcharge in high-tax states is a consequence of that.
When DraftKings, in early August, rolled out its plan to essentially tax winners in states with a tax rate above 20%, reaction was overwhelming negative.

Since then, Rush Street Interactive CEO Richard Schwartz said his company won’t follow suit. And Penn Interactive’s Jay Snowden said during the company’s earnings call said that the idea was “interesting” and “unexpected”. He didn’t completely close the door on it, but the company has no plans to tax winners in the near future.

DraftKings says it will impose the surcharge beginning 1 January 2025.

DraftKings is the second-biggest US operator by market share. The only company ahead of it is FanDuel, which declined to comment on the topic. FanDuel’s parent company, Flutter, is set to release sec..

August 12, 2024

Illinois $1bn handle streak ends in June as player stakes drop to $848.1m

Illinois sports betting handle for June was up 27.4% year-on-year to $848.1m (£665.2m/€777.3m), although amounts wagered came in below $1bn after a nine-month run.
Illinois Gaming Board figures show sports betting handle up compared to the prior year, but falling 16.9% from the $1.02bn wagered in May 2024, in the last month before the state’s new progressive tax rate comes into effect.

The vast majority – $823.7m – of this total was staked online, with $24.4m bet in-person.

Bets placed on professional sports in June amounted to $839.6m, with $815.5m online and $24.2m at retail locations. A further $7.2m was bet across online and retail on college sports, while motor racing drew $1.3m in bets.

DraftKings adjustment accelerates Illinois sports betting revenue growth
Looking to adjusted gross revenue from sports betting during June, this reached $94.6m due to a $9.1m adjustment to DraftKings’ revenue for the month, with little additional context provided. This means AGR is 72.9% highe..

August 12, 2024

US July sports betting round-up: Iowa, Maine, Maryland, Tennessee

Rounding up some of the latest monthly sports betting figures in the US, iGB takes a look at how Iowa, Maine, Maryland and Tennessee fared in July.
Jump to:
Iowa sports betting revenue up thanks to improved hold

Parlays rule the roost in Maryland

Maine reports second-highest sports betting handle in July

Lowest handle of the year in Tennessee

Iowa Racing and Gaming Commission figures show monthly handle topped $138.1m (£108.1m/€126.4m) in July, 25.9% up year-on-year but 5.9% behind June 2024. Online betting accounted for $130.6m of all bets with retail at $7.5m.

An improved hold of 10.1% meant revenue grew strongly, up 31.1% from July 2023 at $13.9m. This also marked an 11.2% improvement on June 2024’s $12.5m revenue, when hold averaged 8.5%.

Looking at revenue by operator, DraftKings remained the market leader in July with $53m wagered and $4.8m in revenue, a 9% hold. FanDuel, on the other hand, saw stakes decline to $31.7m, although a strong 12.6% hold reduced the revenue decl..

August 12, 2024

Weekend Report: Olympics drive betting in France; Hong Kong arrests over mahjong gambling

Welcome to the Weekend Report, where iGB covers the news that you may have missed over Friday, Saturday and Sunday. This week, we look at an Olympic boost for sports betting in France and the arrest of elderly residents in Hong Kong for mahjong gambling.
Going for gold: France Olympics betting set to triple
French regulator l’Autorité Nationale des Jeux (ANJ) has estimated that players in the country will have bet approximately €360m (£308m/$393m) by the end of this summer’s Olympics in Paris.

The games concluded yesterday (11 August) after two weeks, with estimates suggesting the total bet could triple what was wagered on the last games in Tokyo, Japan.

Week one of the games alone drew around €125m in bets. Tennis was most popular with French players, while football, rugby, handball, basketball and swimming also performed well.

Florida man sues Hard Rock over betting promotion
Heading stateside, one Florida man is suing the Seminole tribe and Hard Rock over a sports betting promo..

August 12, 2024

Belgium reports 16.7% rise in 2023 GGR despite tighter regulatory controls

A new report from the Commission des Jeux de Hasard (CJH), the regulator of gambling in Belgium, has revealed the country’s industry saw its gross gaming revenue (GGR) grow by 16.7% over 2023.
Belgium gambling gross revenue total for 2023 was €1.7bn (£1.5bn/$1.9bn), a significant rise from the €1.5bn generated in 2022. Online grew by 18% to a GGR of €944.6m, while offline GGR also increased substantially, with €758m reflecting a 15.2% year-on-year rise.

Growth came despite the Belgian government ratcheting up restrictions on the sector. From 2022 operators had to enforce a €200 weekly loss limit, down from 2020’s €500 limit.

Midway through 2023 they were then forced to halt all advertising. After a last-ditch attempt from a consortium of Belgian sports teams and operators failed to halt the move, a ban on advertising came into force from 1 July 2023.

Restrictions? What restrictions? Belgian gambling market grows in 2023
Casino GGR increased 18.7% year-on-year to €594.9m, powered by..

August 12, 2024

New York sports betting revenue rises despite handle falling to 2024-25 low

An improved hold helped New York’s mobile sports betting market grow revenue year-on-year despite handle falling to its lowest total for the current fiscal year.
New York sports betting spend amounted to $1.26bn (£988.8m/€1.16bn) in July, according to the New York State Gaming Commission figures. This is 31.2% ahead of July 2023 but 14.3% behind the $1.47bn bet in June.

It is the lowest monthly handle since $1.11bn was wagered in August 2023.

July is traditionally one of the quieter months for US sports, with MLB the only league in action. This year, however, the final week of July did benefit from the start of the Olympic Games, while the US hosted football’s Copa América in the first half of the month, contributing to the year-on-year growth.

The growth in revenue was down to a stronger hold. Revenue hit $140.3m, up 33.5% year-on-year and 4.8% up month-on-month. Across all operators hold improved to 11.1%, compared to 9.1% for June 2024.

FanDuel continues New York sports bettin..

August 12, 2024

Report: DC attorney-general prepping investigation into Intralot’s mismanagement of wagering platform

According to the Washington City Paper, DC attorney-general Brian Schwalb has requested documents from lottery contractor Intralot. The request may mean the AG's office is looking into whether or not the company violated the city's “false claims” law.
What Schwalb’s office learns from the request will determine next steps, according to the City Paper report on Thursday (8 August). But if the AG’s office finds Intralot broke the law, it could fine the company.

It would also seem that likely that Schwalb’s office could create a compliance plan for Intralot or prohibit it from doing business with the city.

Intralot’s most recent lottery and sports betting contract expired on 15 July. The lottery did not renew the wagering contract. It did request and get approval from the DC Council for a one-year $39m contract extension for “lottery gaming systems and related services”. The Office of Lottery and Gaming (OLG) initially asked the council for a two-year extension, that include..

August 9, 2024

Bowyer pleads guilty; sentencing for US illegal bookie set for February

Mathew Bowyer, who ran an illegal bookmaking business for at least five years in California, pleaded guilty on Friday (9 August) to three federal charges. Bowyer had more than 700 customers, including former Shohei Ohtani interpreter Ippei Mizuhara.
Bowyer told Judge John W Holcomb, “I was running an illegal gambling operation, laundering money through other people’s bank accounts.” The hearing was held at the Ronald Reagan Federal Building and US Courthouse in Santa Ana, California.

That is the same location at which Mizuhara pleaded guilty to stealing $17m from Ohtani to bet with Bowyer. Mizuhara faces up to 33 years in prison and is set to be sentenced in October.

Shohei Ohtani’s former interpreter Ippei Mizuhara faces up to 33 years in prison. Photo by Jill R Dorson
Holcomb set Bowyer’s sentencing for 7 February 2025. He faces a maximum of 18 years in prison and three years of probation. He could be fined $750,000 or two times the “gross gain or gross loss resulting from the of..

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