Industry News of the Day for March 22, 2024

By iDEA | March 22, 2024

Industry News

  • Legal Sports Report: Sportradar Posts Record Annual Growth, Rise In US Betting After Q3 Cuts
    • Sportradar stock surged Wednesday after the data and analytics company posted record growth in fiscal year 2023 on the back of robust US sales. The company also announced a stock buy-back plan. Sportradar reported FY2023 revenue rose 20% to $953.1 million (€877.6 million.) That is at the upper end of the company’s $945 million to $955 million (€870 million to €880 million) outlook range, driven by a 30% rise in US sports betting and a 20% rise in rest of world (ROW) betting. Meanwhile, adjusted EBITDA increased 30% year-over-year to $181.1 million (€166.8 million). SRAD stock was up more than 12% as of 12pm Eastern Wednesday. Volume was already more than four times its daily average of 251,461.
  • Bloomberg News: Online Betting Firm Rush Street Interactive Weighs Sale, Approaches DraftKings
    • Rush Street Interactive Inc. is exploring strategic options including a potential sale, according to people with knowledge of the matter. Representatives of the company have approached potential buyers including DraftKings Inc., said one of the people, who asked not to be identified discussing confidential information. DraftKings “speaks to a variety of companies regarding various matters in the normal course of business, and it is our general policy not to comment on the specifics of any of those discussions,” a spokesperson for the company said. A representative for Rush Street, which operates brands including BetRivers and RushBet, declined to comment.
  • Gambling Insider: XLMedia Agrees Sale Of Europe And Canada Assets
    • In a strategic move to create shareholder value, XLMedia has announced that it will sell the entirety of European and Canadian sports betting and gaming assets to Gambling.com (GAMB) for an initial $37.5m with a potential deferred consideration of $5m. Based on the FY2023 results published by XLMedia in February, $42.5m represents 6.4x the estimated adjusted EBITDA of $6.6m for the assets. Aside from covering the transaction costs, XLMedia claims that the proceeds of the sale will be utilised to cover settle outstanding tax provisions, return cash to shareholders and provide working capital to support the North America business.
  • PlayMaryland: Casino Exec: Online Casino Cannibalization Debate Misses The Point
    • The biggest detractor when it comes to online casino expansion is the concept of hypothetical cannibalism. Opponents believe that since players can simply log into their mobile devices, rather than physically travel to a gambling location, foot traffic will plummet — and so will their revenue. Craig Billings, CEO of Wynn Resorts, thinks it’s a mistake to frame the debate like this in the first place. In a LinkedIn post, Billings tabbed the online casino discussions as “a bit reductive.” He goes on to say, “no matter which side of the ‘cannibalization vs. no cannibalization’ debate you are on, assuming that the (positive or negative) impact will be uniformly shared by all regional casinos is pretty naïve.”

Florida

  • SBC Americas: Florida Supreme Court Denies Petition From West Flagler
    • West Flagler has been denied its petition for a writ of quo warranto by Florida’s Supreme Court as it challenges a compact that provides the Seminole Tribe exclusive rights to offer online wagering in Florida. West Flagler argues that a Florida gaming compact from 2021 should have all online sports betting language removed. Florida’s Supreme Court has denied West Flagler’s petition for a writ of quo warranto for several reasons, including it not fitting within the scope of what the operator is challenging.

Louisiana

  • SportsHandle: Louisiana Sportsbooks Notch 11% Hold In February
    • The Louisiana Gaming Control Board reported Wednesday that the state’s 18 retail sportsbooks and nine mobile operators combined to attain an 11.3% hold on gross sports betting revenue in February despite a seven-figure loss on football bets. Operators reported $31.2 million in gross revenue against $274.8 million handle as the collective win rate topped 11% — four full percentage points above the 7% industry standard — for the 20th time in 28 months of wagering. It was the seventh time in the last eight months the hold was 11% or higher.

Maryland

  • Bonus.com: Maryland Senate Committee Sets March 26 Hearing Date For Online Casino Bill
    • Maryland Senators will hear testimony at noon on March 26 about the online casino bill that originated in the House. The March 26 Senate Budget and Taxation Committee hearing may bode well for HB1319. If Senators don’t change the bill Del. Vanessa E. Atterbeary proposed, as many as 30 online gambling operators will pay a 55% tax rate. Any online casino live dealer revenue will also see a 20% tax. Online casino isn’t imminent, though. iGaming probably won’t launch until 2025, even if all of the boxes are checked in 2024.

Minnesota

  • iGaming Business: Heavily Amended Minnesota Wagering Bill Gets Out Of Committee
    • Minnesota Representative Zack Stephenson revamped his HF 2000, adding daily fantasy sports, allowing for electronic pull-tabs, and doubling the proposed tax as a legal sports betting bill began moving through the House 21 March. The A-21 amendment passed 8-4, and the bill was approved 8-5, and is now headed to the tax committee. Stephenson told the Star-Tribune that he’s been working with the charities and tribes for several years and the current deal is one that “both sides can live with.”

New Jersey

  • PlayUSA: New Jersey Announces Year-Long Problem And Responsible Gambling Campaign
    • New Jersey Attorney General Matthew J. Platkin has launched a public awareness campaign to mitigate the negative impacts of problem gambling and to encourage a deeper commitment to responsible gaming during Problem Gambling Awareness Month. This recently launched campaign advocates for the provision of more funding for programs that encourage responsible gambling habits while simultaneously increasing awareness of the dangers of compulsive gambling. The campaign will predominantly utilize online advertisements. Furthermore, Mary Jo Flaherty, interim director of DGE, emphasized the importance of individuals utilizing responsible gambling tools, such as increased self-awareness and abstaining from certain games for extended periods.

Ohio

  • Cleveland.com: Ohio Lottery, Casinos, Online Operators Pitch Igaming, Ilottery To Lawmakers
    • Last month, a handful of casino app operators asked the lawmakers to legalize “iGaming” – or allowing Ohioans to gamble on blackjack, poker, and similar games via their phones. On Tuesday, the Ohio Lottery said it’s time the state allows residents to buy tickets for Mega Millions and similar games on their phones instead of just from physical retailers. As of now, the industry requests are just that – requests. The lawmakers, formally known as the Study Commission, are tasked only with authoring a report on the “future” of gaming, not necessarily proposing legislation. That report is due this summer.
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