While it doesn’t specify sweepstakes casinos, the new law prohibits all internet gambling involving any currency:

“The term [internet gambling] includes online casinos, by whatever name known, which constitute internet gambling and therefore are prohibited. This includes but is not limited to any platform, website, or application that knowingly transmits or receives gambling information, allows consumers to place a bet or wager using any form of currency, and makes payouts of any form of currency.”

The phrase “any form of currency” is critical regarding sweepstakes and social casinos. These online gaming platforms don’t use cash directly; they utilize a dual currency system.

One allows users to play for fun, while the other enables them to redeem winnings for cash prizes. Users cannot buy the premium currency directly. Instead, they can receive it through promotions or as a gift with purchases of the fun-to-play currency.

Per SB 555, each violation is a felony punishable by a fine of up to $50,000 and/or 10 years in prison. The bill does allow internet gambling without currency.

Industry Pushback: SPGA Condemns the Montana Sweepstakes Ban

The Social and Promotional Games Association (SPGA), now one of two trade groups representing sweepstakes casinos, immediately criticized the new law.

The SPGA argues the law is overly vague and could criminalize legitimate promotional programs, such as Microsoft Rewards. In a press release, a spokesperson for SPGA called it a dangerous precedent:

“Montana just criminalized everyday digital promotions with a law so broadly written it fails to name what it bans.”

It continued: “It’s a dangerous precedent that could undermine consumer trust, business innovation, and long-standing legal marketing practices.”

SPGA highlighted that lawmakers in other states, such as Arkansas and Florida, have rejected similar proposals. It urged lawmakers nationwide to avoid vague bans and support clear regulations.

Twelve States Have Targeted Sweepstakes Casinos

Montana may be the first to ban the social gaming platforms, but it’s one of 12 states where lawmakers have introduced legislation aimed at sweepstakes casinos:

• Arkansas
• Connecticut
• Florida
• Illinois
• Louisiana
• Maryland
• Mississipi
• Montana
• Nevada
• New Jersey
• New York
• Ohio

Efforts have already failed in several states. Mississippi’s Senate became the first legislative chamber in the US to ban the platforms, but arguments between the Senate and House over sports betting resulted in the bill failing.

Maryland’s Senate also passed a ban on sweepstakes casinos, but the proposal stalled in the House. As SPGA pointed out, bills in Florida and Arkansas also died.

Elsewhere, momentum is building. Last week saw significant movement as Ohio became the latest state to propose a ban. Meanwhile, Connecticut and Louisiana moved closer to joining Montana in making the platforms unlawful.

Both bills have passed the Senate. Connecticut’s bill is already scheduled for a House vote, while Louisiana’s has cleared the committee and awaits a floor consideration.

Meanwhile, companion bills in the New York Senate and House have moved past initial committees and await further action.

The post Montana Becomes the First State to Officially Ban Sweepstakes Casinos appeared first on CasinoBeats.

In what amounts to an escalating crackdown on federally regulated prediction markets, Maryland has called to terminate sports event contract trading, declaring it a form of unlicensed sports betting.

Maryland’s state regulators—the Maryland Lottery and Gaming Control Commission—appear to have chosen to tackle the issue head-on. They have sent cease-and-desist notifications to Kalshi, Robinhood, and Crypto.com, demanding they immediately void sports-related event contracts within state lines.

The move makes the Old Line State the sixth known state alongside Ohio, Illinois, New Jersey, Nevada, and Montana to take regulatory action against the trading platforms.

Looking to emphasize the perceived nature of unlicensed and unauthorized sports wagering under Maryland law, John Martin, Director of the Maryland Lottery and Gaming Control Agency, wrote, “Kalshi is operating in Maryland and is offering and conducting what is, in fact, wagering on sporting events.”

As stated in the letter dated April 7, Kalshi has been given 15 days to respond to Maryland’s demands and confirm whether it intends to comply. Failure to do so may lead to legal challenges, though the state has not yet announced any court action.

Montana One of the First to Take Action

While the Nevada Gaming Control Board was the first to send out a cease and desist order, Montana was not far behind, despite its statement of intent being overshadowed by New Jersey’s similar announcement the following day.

Montana’s Gambling Control Division’s objections to Kalshi stem from its certification that the firm’s sports contracts meet the legal definition of gambling under MCA § 23-5-112(14)(a).

Jeremy S. Craft, Chief Legal Counsel for Montana’s DOJ Gambling Control Division, highlighted the state’s objections, stating Kalshi lacks the appropriate Montana gambling license to operate legally in the state, writing: “Kalshi’s event contracts are gambling… because participants risk money or other things of value for a gain that is contingent… upon lot, chance, or the operation of a gambling enterprise.”

To date, Kalshi has facilitated more than $380 million in NCAA March Madness traded contracts, which included wagering on college teams, Houston, and eventual men’s championship winners Florida. The platform’s lucrative contract exchange expansion follows the New York organization’s entry into major sporting events, including the Super Bowl and now March Madness, which has ignited the scrutiny of the six state gambling regulators.

Will Kalshi Push Back in Maryland?

For the time being, Kalshi, Robinhood, and Crypto.com have all cited their regulatory approval from the federal Commodity Futures Trading Commission (CFTC) as justification for their operations in each state.

Kalshi, the most high-profile of the trio, argues that its contested product offerings are, in fact, financial derivatives and should be treated like other federally regulated instruments. “The CFTC is our regulator. If the CFTC tells us to stop, we will absolutely stop. If they don’t, then we won’t,” Kalshi CEO Tarek Mansour told TechCrunch.

Mansour directly compared Kalshi to a financial exchange where the underlying asset is an event, not a commodity. He also claimed that the gambling lobby was orchestrating the complaints, arguing that sportsbooks like FanDuel and DraftKings are pressuring state regulators because it directly threatens their state-licensed operations.

With Kalshi having already filed lawsuits against Nevada and New Jersey claiming that state-level orders violate the federal Commodity Exchange Act, insiders expect similar legal battles will follow now in Maryland and Montana.

As things stand, Kalshi says it will remain in operation in all 50 states, pending further federal or judicial intervention.

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Last week, the company finalised the $260m sale of the Rocky Gap Casino to Century Casinos, with $175m of those proceeds allocated to repay outstanding debt.

Furthermore, the group is also proceeding with the offload of its Nevada and Montana-based distributed businesses to J&J Gaming, for approximately $360m. After closing, this will see the latter become the largest distributed operator in the country.

Charles Protell, President and CFO of Golden, commented: “We remain confident that both transactions will close by year end, and we look forward to having J&J as our gaming partner in our Nevada taverns.

“These transactions will accomplish our goal of divesting non-core businesses at attractive valuations, leaving us with a Nevada portfolio of owned casino assets and the largest gaming tavern footprint in the state.”

“We obviously have the capacity to go out and look for deals”

Charles Protell, President and CFO of Golden Entertainment

The comments came in an earnings call as the firm reflected on its performance through the second quarter of the year, with revenue down one percentage point to $286.7m (2022: $289.4m).

Net income plummeted to $12.3m (2022: $21.2m), while adjusted EBITDA dropped 22.13 per cent to close the April to June period at $58.4m.

Across Nevada, revenue and EBITDA declined 4.6 per cent and 28 per cent, respectively, which was negatively affected by ongoing renovation at The Strat. Montana saw revenue rise slightly, however, AEBITDA also declined. 

Despite this, Protell noted that both regions boast “strong pipelines of new locations,” which are expected “to come online in the second half of this year”.

For the year-to date, revenue is up less than half of a percentage point to $564.73m (2022: $563m), net income maintained a Q2 trend by declining 58.25 per cent to $23.91m (2022: $57.28m) and AEBITDA declined 15.29 per cent to $120.57m (2022: $142.34m).  

He continued: “Our company remains uniquely positioned to benefit from the growth drivers of Nevada’s resort and local markets, and we believe our properties will demonstrate better performance in the back half of the year. 

“In addition, our strengthened capital structure will allow for maximum flexibility to invest in our core assets, return capital shareholders on a regular basis and evaluate future strategic alternatives.”

Looking at expansion, and bringing things full circle, the topic of M&A once again became the focal point of discussions as Protell was first quizzed on potential opportunities and the boundaries associated with pursuing these. 

“We’re looking at things that move the needle and that we can use synergies within our current organisation”

Blake Sartini, Chair and Chief Executive Officer of Golden Entertainment

“We obviously have the capacity to go out and look for deals,” he said. “I think those opportunities for us would need to be in the west, casinos or portfolios of a more meaningful size. 

“To us, that’s $50m plus, $50m to $100m are the things that we would target to look at. And importantly, where we think we can create value through synergies in the operations with our existing portfolio. 

“So I think that that is a fairly narrow lens to look at acquisitions, but we will do that. I think the other thing that we’re trying to highlight as we think about our future going forward is that it will be weighed against simply buying our own stock given the capacity that we have on the balance sheet and the buyback authorization from the board.”

Detailing the need to be patient but opportunistic, Blake Sartini, Chair and Chief Executive Officer of Golden, added: “As we look through the landscape right now in M&A … we see a lot of value in our own shares. We see a lot of value in our own company, but the capacity is there for us to look. 

“I think Charles mentioned 50 million plus. We’re looking at things that move the needle and that we can use synergies within our current organisation. So patient, but opportunistic.”

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Reporting a 15.8 per cent overall revenue decline during the quarter to finish up at $205.3m (2019: $243.3m), the firm’s food and beverage, rooms and other segments all documented decreases. 

For the three month period ending September 30, 2020, Golden Entertainment reported gaming revenue of $145.5m, which represents a slight increase from $142.2m year-on-year. Operating income during the period came in at $9.4m, a slight drop from $9.8m, with net loss narrowing from $9.4m to $6.9m.

Casino revenue was $135.3m in the third quarter of the year, a 12.7 per cent drop from 2019’s $155.1m, with adjusted EBITDA coming in at $50.5m (2019: $42.2m).

Golden Entertainment’s distributed gaming division saw revenue fall 20.5 per cent from $88m to $69.9m, as adjusted EBITDA plummeted from $11.4m to $4.7m.

Publishing details of its performance during the first nine months of the year, revenue dropped 23.8 per cent to $329.4m (2019: $432m), operating loss is reported as $66.3m as opposed to 2019’s income of $35.6m, and net loss widened from $31.8m to $118.1m.

Blake Sartini, chairman and CEO of Golden Entertainment, explained “Our financial performance quickly recovered from the impact of the mandated shutdowns in March reflecting the benefit of our diversified portfolio of local and regional gaming operations as well as adjustments we made to managing the business. 

“Our third quarter results demonstrate the continued strong operating trends at most of our properties since reopening as we generated the highest third quarter adjusted EBITDA in the company’s history.”

Golden Entertainment, which owns and operates properties across its casino and distributed gaming divisions, boasts a footprint of 15,700 slots, 130 table games, and 6,200 hotel rooms. The firm owns ten casino resorts, nine in Southern Nevada and the Rocky Gap Casino Resort, its sole Maryland-based entity.

Through its distributed gaming business in Nevada and Montana, Golden Entertainment operates video gaming devices at approximately 1,000 locations and owns over 60 traditional taverns in the former.

Third quarter revenue across the firm’s Nevada casino and distributed gaming divisions declined to $114.8m (2019: $135.4m) and $48m (2019: $69.3m). Montana, however, showed slight increases across the pair to finish up at $20.4m (2019: $19.6m), and $21.8m (2019: $18.6m), respectively.

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A number of agreements undertaken led to the firm reporting substantial gains and 2019 first quarter revenues of £4.6m, with partnerships alongside FanDuel Group, the US arm of Flutter Entertainment, and Parx Casino gaining particular attention.

Dermot Smurfit, chief executive officer of Gan, commented: “Since last year’s AGM, Gan has been firmly focused on taking advantage of the incremental US internet sports betting opportunity which we launched online in New Jersey in September 2018,” he stated.

“Since launch, sports betting has driven substantial increases in our clients’ revenues, in which Gan participates. We also prepared to launch internet gambling in Pennsylvania for the largest retail operator, Parx Casino, as well as extending our relationship with FanDuel Group, the US arm of Flutter Entertainment plc (formerly Paddy Power Betfair plc) to rapidly deploy our platform in selected additional US states. 2018 was clearly therefore a pivotal year for Gan.”

Before moving on to welcome the spread of regulation across the country, with the firm recently welcoming legalisation of sports gambling in Illinois and Tennessee: “Since the beginning of 2019, we have witnessed the rapid and accelerating regulation of internet gambling in other US States including Montana, Indiana, Iowa, Tennessee and Illinois. Today, 58 million Americans, representing nearly 20 percent of the entire US population, now have legislation in place permitting one or more forms of internet gambling.

“Furthermore, industry analysts believe more than half of all Americans will be permitted to gamble online as a result of accelerating incremental state-by-state regulation within just a few more years.”

In its latest financial report Gan heaped particularly praise on New Jersey as the firm beat financial expectations, a primary driver of which was said to be higher than expected growth of the Garden State’s sports betting, in addition to an elevated level of casino cross-selling.

Smurfit explained: “We are especially pleased with our financial performance to date, building on the momentum achieved during the first quarter, during which we generated record revenues.

“All the company’s operational KPI’s continue to trend positively and therefore remain excited by the potential for the remainder of the year, starting with the imminent launch of Parx Casino in Pennsylvania.”

Adding: “In conclusion, 2018 was a pivotal year for Gan, and we firmly believe 2019 will be another year of tremendous operational and financial progress, and I look forward to updating shareholders with our financial results for the first half of the current financial year in due course.”

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As the New York Gaming Commission gets set to vote to approve the activity next week, which it is thought would permit the activity at four upstate properties, namely, Resorts World Catskills in Monticello, Rivers Casino in Schenectady, del Lago Casino near Rochester and Tioga Downs near Binghamton, lawmakers spearheading efforts have made amendments that could permit racetracks, off-track betting parlors, and sports stadiums and arenas to accept bets.

It is thought that off-track betting parlors at the Saratoga, Belmont and Aqueduct racetracks, operated by the New York Racing Association, could be permitted to proceed with operations when full-service casino have debuted their sportsbooks.

However, sports facilities, which would partner with casinos as a sports betting affiliate, would operate mobile kiosks that would be owned and operated by a licence casino property within the state.

As specified by Legal Sports Report, a stadium may only serve as the affiliate in a county that does not have another affiliate, meaning venues such as Madison Square Garden, Yankee Stadium, Barclays Center and Nassau Coliseum could well be included.

With the Wednesday 19 June cut-off point fast approaching, which marks the end of New York’s legislative session, the bill maintains 8.5 and 12 per cent tax rates for land-based and mobile betting and a 0.2 per cent ‘royalty fee’ to sports leagues.

No in-person registration would be required, only one skin would be permitted per casino licence and a $12m fee would be attached as a licence fee.

Currently seven states have regulated sports betting, namely Nevada, Delaware, New Jersey, Mississippi, West Virginia, Pennsylvania and Rhode Island, with New Mexico tribes also in operation due to state compacts.

Iowa, Indiana, Tennessee and Montana are also thought to be close to joining that list.

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Bringing in revenues of £4.6m, a 122 per cent increase on the prior year, and generating positive EBITDA of £600,000, a primary driver was higher than expected growth of the region’s sports betting, in addition to an elevated level of casino cross-selling.

Driving Q1 revenue to record levels, the swelling of Gan’s sports betting in the Garden State was also nudged along by the NFL’s Super Bowl and NCAA’s March Madness college basketball tournament.

Dermot Smurfit, CEO of GAN, commented: “We are very pleased with our performance through the first three months of 2019 with a record top-line figure, and return to a positive EBITDA.

“We knew that the initiatives set in place throughout 2018 positioned the company for a strong first quarter and fiscal year 2019.

“We remain focused on landing new clients, and expanding upon existing contracts with clients, in addition to preparing ourselves for a rapidly expanding market due to an acceleration in sports betting-led online gambling regulation in the United States.”

Looking ahead to the rest of 2019, Gan stressed the outlook “continues to remain highly positive,” as growth across real money gaming and higher than expected uptake in regulated sports wagering markets could lead the organisation “to a record year”.

Pennsylvania igaming continues to fall on the radar, with Gan expecting the launch alongside its Greenwood Gaming and Entertainment owned Parx Casino partner when the market goes live, which it stresses is “expected to commence before the end of June”.

Furthermore, the company is also set to launch Paddy Power Betfair’s FanDuel internet sports betting and casino gaming in Pennsylvania in the coming weeks, as it positions itself for “substantial growth” across both verticals.

Concluding its outlook, Gan emphasised that it’s also “ increasingly confident in the long-term prospects for intra-state real-money gambling in the US, and believe the opportunity of internet sports betting may now serve as a catalyst for other US states to regulate both internet sports betting as well as internet gaming, with recent regulatory progress noted in the states of Ohio, Indiana, Montana and Tennessee”.

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The two Laughlin based properties, Colorado Belle and Edgewater, adjacent to the company’s Aquarius Casino Resort, have been completed in a cash and stock transaction from Marnell Gaming.

Taking its total operations to ten casino resorts, nine in Southern Nevada and one in Maryland, that Golden now owns, the firm also operates video gaming devices at nearly 1,000 locations throughout Nevada and Montana, including its wholly-owned Nevada taverns.

The purchase consideration consisted of $155m cash, and approximately 911,000 shares of Golden Entertainment common stock.

Golden paid the cash portion of the purchase price using $10m of cash on hand, and $145m from its existing revolving credit facility.

Prior to the closing, Golden purchased approximately 1.2 million shares in the open market, at an average price of $16.06 under its stock repurchase authorisation.

Blake Sartini, chairman and chief executive officer of Golden Entertainment, commented: “The acquisition of these properties complements our market-leading Aquarius Casino Resort in Laughlin, and grows our portfolio of wholly-owned Southern Nevada casino resorts.

“Golden is excited to integrate the Colorado Belle and the Edgewater, and we welcome their guests and team members to the Golden family.”

Just last week Derek Stevens, who along with brother Greg owns the D and Golden Gate casino-hotels, unveiled plans which will see the construction of Downtown Las Vegas’ first casino resort to be built from the ground up in over three decades, when Circa Resort and Casino opens its doors in late 2020.     

Circa is to feature a two-level casino, a three-level, stadium-style sportsbook lauded as the “the largest sportsbook in Las Vegas history”, several bars and restaurants, further details of which are to be revealed over the next 23 months, and a rooftop complete with six pools and a 125ft screen, capable of hosting 4000 people.

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Currently the bookmaker operates the race and sportsbook at Golden’s Pahrump Nugget Hotel & Gambling Hall, in addition to deposit kiosks at approximately 80 wholly-owned taverns, and third party distributed gaming locations, throughout Nevada.

Via the expanded partnership, an extension is to be undertaken to include race and sportsbook operations at the Stratosphere Casino, Hotel & Tower (pictured right), Arizona Charlie’s Decatur and Arizona Charlie’s Boulder in Las Vegas, in addition to Aquarius Casino Resort in Laughlin, Nevada.

Furthermore, William Hill is to also continue its operations at Edgewater Casino and Colorado Belle Casino Resort in Laughlin, after Golden finalises the acquisition of the properties in the first quarter of next year.

Via the new agreement, there will be a provision of a minimum of 100 William Hill mobile deposit kiosks at gaming organisation’s wholly-owned taverns, and third party distributed locations, within the Silver State.

“Since entering the United States, William Hill has had an excellent relationship with Golden Entertainment, and we look forward to continuing it for many years to come in Nevada and elsewhere as opportunities arise,” commented Joe Asher, CEO of William Hill US.

Furthermore, both parties are to also pursue sports wagering opportunities within both Montana and Maryland, subject to legislation enabling such activities within these states being enacted.

Golden currently operates distributed gaming across Montana in approximately 300 locations, and owns Rocky Gap Casino Resort in Maryland.

Steve Arcana, COO of Golden Entertainment, added: “We are excited to expand our current relationship with William Hill, which has a proven sports wagering platform not only in Nevada but around the world.

“We look forward to growing our business in Nevada and other jurisdictions through this partnership.”

William Hill is expected to begin operating Golden Entertainment’s additional Nevada race and sportsbooks by December of this year, subject to receiving required regulatory approvals.

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