Industry News of the Day for February 20, 2024

Industry News

• iDEA: Cannibalization Argument Debunked By Detailed Report Into Casino Revenues
  • iDEA Growth (iDevelopment and Economic Association), the leading trade association for online gaming in the U.S., has commissioned groundbreaking research from Eilers & Krejcik Gaming (EKG), which reveals that, in addition to adding a revenue stream for land-based casino operators, iGaming helps boost revenue from operators’ brick-and-mortar properties.  As part of the project, the EKG team dissected a research note by Deutsche Bank, which overlooked some key factors, and a study on iGaming by The Innovation Group, which used a flawed methodology when considering potential cannibalization.

• iGaming Business: EKG Study: Online Casinos Improve Revenue At Land-Based Venues
  • The report was authored by gaming consultancy Eilers and Krejcik Gaming (EKG). It analyzed data from casinos, regulators and state governments over a period of 16 years, with the aim of discovering whether online gaming cannibalizes revenue from land-based casino. To determine what, if any, effect the introduction of online casino has on land-based gross gaming revenue (GGR), EKG studied this scenario in regard to six states. These were Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and West Virginia. The consultancy compared the compound quarterly growth rates (CQGR) of land-based casino GGR before and after online casino was introduced.

• TheLines: PrizePicks Issues Opinion To California AG Regarding Pick’Em Product
  • Just as PrizePicks announces plans to exit Florida, the popular DFS app takes its legal battle to California. California is one of the latest markets challenging the validity and legality of popular DFS pick’em apps like PrizePicks. In an effort to dispute the claims of illegal activity, PrizePicks’ legal representative Frederick Woocher of California-based law firm Strumwasser & Woocher issued their opinion to California Attorney General Rob Bonta. A copy of the legal opinion was sent to TheLines.com. PrizePicks is working to maintain its California access. Their legal opinion focuses on the legality of daily fantasy sports in the state. Woocher argues that they do not violate any California law as their products do not classify as a “game of chance.”

• Bonus.com: Non-Gaming Activities, Online Integration Key Concerns For US Land-based Casinos
  • The gaming floor has traditionally been the lifeblood and raison d’être of any casino but increased demand for non-gaming activities is transforming how we see retail gambling destinations. According to LT’s (formerly LaneTerralever) 2024 Casino Player Trends Report, these alternative forms of entertainment are a factor for roughly three-quarters of guests when choosing which casinos to patronize. Additionally, thanks to the popularity of online gambling,  LT found that many land-based operators are looking for ways to integrate online options with the live casino experience. The report notes the importance of non-gaming experiences to casino operator success.

• SBC Americas: Kambi And PENN Entertainment Extend Retail Sportsbook Agreement Until 2025
  • Kambi and PENN Entertainment have agreed to extend their retail sportsbook agreement until the end of 2025. The deal, which was set to expire in July, will see Kambi continue to supply its range of retail sportsbook products including kiosks, point-of-sale terminals and odds boards to PENN. In 2022 PENN entertainment announced its plan to migrate its retail sportsbooks to proprietary technology and agreed a revenue share during this transition period with Kambi. According to Kambi, the extended agreement is part of a new deal which means that any sports betting revenue generated by PENN, either via Kambi’s platform or via PENN’s proprietary sportsbook in jurisdictions previously supported by Kambi, will be subject to revenue share payments.

Kansas

• Gaming Today: Kansas Orders Six Daily Fantasy Sports Apps To Leave State
  • Kansas gaming regulators have asked six daily fantasy sports apps to exit the state over allegations of “illegal sports wagering”, according to findings from a report. Among the companies named in the cease and desist letter was Underdog, one of the country’s most popular platforms for fantasy sports. In a statement, Kansas Racing and Gaming Commission General Counsel Judith Taylor said: “I can confirm that we have sent out six cease-and-desist letters to date to various parties who may be in violation of Kansas law.” n a copy of the letter dated Sept. 7, 2023, the Kansas Racing and Gaming Commission stated that it has become aware of several illegal sports wagering operations in the state.

Maryland

• PlayMaryland: Study: Online Casinos Won’t Hurt Maryland’s Brick-And-Mortar Venues
  • One main argument against legalizing online casinos is that iGaming will take business away from existing retail casinos. A recent study from research firm Eilers & Krejcik, however, debunks that theory. The study completely contradicts a study commissioned by the Maryland Lottery and Gaming Control Agency released last November. The report “iGaming in Maryland” was conducted by The Innovation Group and found online casino legalization would spark an 8.2% drop in brick-and-mortar revenue. However, the newer study found that of the six states that currently offer online casino gaming, all six saw revenue gains at retail casinos after iGaming was added.

Mississippi

• SportsHandle: Mississippi Sports Betting Revenue Tops $6.6 Million For January
  • The Mississippi Gaming Commission reported sports betting revenue of $6.6 million for January, as operators posted a hold of nearly 25% on parlay wagers. Revenue was up 30.4% compared to last January despite handle plunging 22% to $44.6 million, with the overall hold just shy of 15%. Mississippi does not have mobile sports betting, which has put it a competitive disadvantage with neighboring states Louisiana and Arkansas. A bill to legalize mobile wagering passed through the Mississippi House earlier this month. Mississippi handle in 2023 was down 10.8% compared to 2022, as Arkansas bettors had their first full year with three betting apps available after launching online wagering in March 2022.

Pennsylvania

• PlayUSA: Supremeland Enters US With Pennsylvania Online Casino License Approval
  • Sweden-based iGaming firm Supremeland Gaming announced it’s ready for a US debut. The company won an interim authorization to provide online casino games in Pennsylvania through its in-house game studio, Powderkeg Studio. Supremeland Executive Chairman Johan Apel said in a press release that Pennsylvania will serve as the company’s canvas for its creativity. To get full licensure, the company will have to undergo a full background investigation, according to a news post by Corey Sharp at PlayPennsylvania. Supremeland is headquartered in Stockholm, Sweden. Its CEO, Rickard Öhrn, has a background in investing and heading a sports broadcasting company.