Michigan Gaming Control Board

Henry Williams has become executive director of the Michigan Gaming Control Board following a 34-1 roll call confirmation vote in the Michigan Senate.

Williams, who has 20 years of experience working at the MGCB and most recently was deputy director for the agency’s casino operations division, was confirmed to a to a six year term, which began on Monday 17 May, by Governor Gretchen Whitmer.

“I am honoured to begin my appointment as executive director of the Michigan Gaming Control Board,” said Williams. “I look forward to leading the agency’s continuing success and thank outgoing executive director Richard Kalm for his leadership and the opportunities he provided that paved the way for my appointment.”

Esports Technologies

Esports Technologies, a global provider of advanced electronic sports wagering products and technology, has announced a new marketing partnership with NBA star Jordan Clarkson of the Utah Jazz.

As a brand ambassador, Clarkson will partner with the firm on marketing campaigns to raise awareness of the brand across digital and social platforms through creative content, various guest appearances and streaming events.

Aaron Speach, CEO of Esports Technologies, noted: “We’re honoured to team up with one of the NBA’s biggest stars as he is enjoying his finest season in the league. Jordan Clarkson’s background, talents and dynamic personality make him an ideal brand ambassador for us. He embodies everything we stand for.

“I’m confident this partnership will likely help us catapult our brand globally, and I can’t thank our strategic advisor Jack McClinton enough for the opportunity to work with Jordan. Together we are building a great team.”

PointsBet

PointsBet has announced that Kosha Gada, a seasoned executive with expertise across media, technology, and digital business, has been appointed by the group’s board as an independent non-executive director,

Gada, the CEO and managing director of Recastled, is a regular contributor on various business and news networks, including Sky News, CNBC, and BNN Bloomberg, as well as publications including Forbes and TechCrunch.

Brett Paton, PointsBet chairman, stated: “I am delighted to welcome Kosha to the Board. Her expertise and strong knowledge of the US media and technology landscape will provide great benefit to PointsBet.

“As we continue to expand into new US jurisdictions, I could not think of a better set of skills to assist the Board as we execute on our strategy. I congratulate Kosha on her appointment and look forward to her contribution.”

DraftKings

DraftKings has announced the appointment of Roy Pollitt as its new Vice President of Regulatory Affairs. He joins the firm from Exiger where he was managing director, head of investigations for the global regulatory and financial crime, risk and compliance company.

Pollitt comes with deep experience of regulation, compliance and security, having also served as a special agent for the FBI for 17 years.

Paul Liberman, DraftKings’ co-founder and president of global product and technology, welcomed the new addition, commented: “I am pleased to welcome Roy Pollitt to the DraftKings team, where he’ll play a critical role leading our US and international regulatory function.

“Roy brings unparalleled experience and a unique perspective to the position, having served both as an expert regulatory consultant to high profile public companies and FBI special agent investigating complex frauds within diverse industries, including banking, gaming, payment processing, and securities.”

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This related to the income tax treatment of payments for various licences and authorities, which Tabcorp had confidently declared had been paid to the Commissioner in full. Each proceeding brought by the taxpayers will be dismissed.

As part of the settlement, the ATO will return the aforementioned sum, which is said to represent 20 per cent of the disputed tax liabilities and interest.

However, the company will pay approximately $37m to The Lottery Corporation under the terms of a separation deed dated March 25, 2022.

This saw Tabcorp document the terms of a demerger of TCL, the unit that operates the Tatts Lotto and Keno business across Australia’s six states, from the group’s gaming and wagering division.

After first being disclosed in July 2021 following a “thorough and rigorous assessment of all relevant structural and ownership options”, the aim was to forge two standalone ASX-listed companies, with distinct operating profiles, strategies and growth opportunities. 

As a result of its TLC payment, Tabcorp is set to recognise a benefit of approximately $45m after tax in its financial statements for the year ending June 30, 2024. This will be treated as a significant item. 

“The settlement also included an agreement in relation to how Tabcorp will treat future licence fees payable in respect of renewals of relevant existing licences,” the company updated.

“Subject to agreed limitations, Tabcorp must treat the fees as being of a capital nature. Tabcorp does not believe this will have any material effect on future results.”

Largest fine in Victoria

This comes off the back off Tabcorp being the latest target of regulator action within the Australian state of Victoria for a major system outage during the 2020 Spring Racing Carnival.

Last week, the Victorian Gambling and Casino Control Commission’s enforcement crusade continued with a A$1m fine being imposed on Tabcorp, the largest received by the company within the state.

Set against the backdrop of a 2021 royal commission and numerous recent financial sanctions and gambling reforms, the scale of the fine, the VGCCC said, reflects a failure to comply with directions to provide information concerning the issue. This left the group’s wagering and betting system unavailable for around 36 hours. 

Tabcorp suffered the outage on Saturday 7 November 2022, however, due to an obligation for the WBS to be continuously available, the Victorian Commission for Gambling and Liquor Regulation, the VGCCC’s predecessor, commenced an investigation.

The regulator noted that its directions were issued after the company was not voluntarily forthcoming with provision of adequate information concerning the outage.

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As local media report shots being fired at the long-term prospects of rivals such as Betr, Adam Rytenskild, MD and CEO, is looking to take a larger digital slice than the 25.1 per cent reported through H1 2022.

This figure, it was noted, represents the first time since 2019 that Tabcorp has held its digital revenue market share.

“I’m excited to announce that we are targeting 30 per cent digital revenue market share by FY25,” he commented.

“We’ll do this with a transformation of our entire wagering ecosystem, including new products for punters, a reinvigoration of Sky Racing that will include a greater integration with TAB and the implementation of our new marketing strategy. 

“The successful launch of the new TAB App, which helped us retain digital market share despite the introduction of a new competitor, has provided a strong launch pad to reach our 30 per cent target.”

Alongside this, the company has also pulled back the curtain on further targets by 2025, under the TAB25 heading, which includes a reduction on operating costs to A$600m-A$625m.

Rytenskild continued: “Now that our demerger has been successfully implemented we are in a position to create a new operating model that is simpler, more agile and delivers faster for customers. The cost discipline will also deliver stronger results for shareholders.”

Through H1 Tabcorp recorded a 11 per cent revenue rise to A$1.27bn, with wagering and media up nine per cent to A$1.16bn following an increasing return of punters to retail venues. 

The transitioning gaming services division, which is becoming an integrity services model following the A$62m sale of eBet, saw revenue increase 37 per cent year-on-year to A$109m.

Net profit for the group through the reporting period stood at A$52m, with group EBITDA up 24 per cent to A$197m, which is also aligned to a strong wagering rebound.

“Today’s results highlight that our transformation strategy, which commenced on 1 June 2022, is working,” Rytenskild explained.

“Our business has rebounded strongly from a COVID impacted first half last year to experience strong growth in group revenue and EBITDA. 

“The COVID lockdowns presented an opportunity for digital only operators, but our retail customers have quickly returned and our digital transformation is amplifying that opportunity.

“I’m particularly pleased that, with new entrants entering the market and retail venues reopening, TAB held digital revenue market share for the first time since 2019. 

“To retain our market share, while a new entrant took share from competitors and retail reopened, highlights that customers are loving the new TAB App. 

“The demerger has been seamless and the separation from The Lottery Corporation remains on track.” 

With it reiterating that cost discipline and commercial rigour “continues to be a key priority,” he concluded: “I said in our FY22 results that we had drawn a line in the sand and we have. We are delivering on our actionable priorities for FY23. 

“Our revenue and EBITDA has rebounded from the challenges of COVID, our new TAB App is live and the strength of the product ensured we retained digital revenue market share for the first time in four years. This rapid transformation shows our strategic direction is the right one.”

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This appointment was made following a “comprehensive search by a global executive firm” earlier in the year, with a date confirmed after receipt of requisite regulatory approvals in Queensland was obtained. Similar green-lights in New South Wales are pending.

Upon taking office, current Executive Chair Mr Ben Heap will return to his non-executive role, however, he will retain responsibility for certain decisions that require ‘close associate’ status in the region until Cooke’s approvals are issued.

Cooke is the current MD of Australian bank and payments fintech provider Tyro Payments, but boasts significant history within the gambling industry.

For a six year stint until 2005 he was head of strategy and legal counsel at Queensland-based wagering and gaming company UNiTAB, in addition to occupying the position of Group CEO and MD of Tatts Group from 2013 to 2018. From 2006 to 2013 Cooke was MD of Wotif.com.

Upon the appointment first being detailed, Cooke said of the road that lay ahead: “There are challenges for The Star that have been well documented. They will be my priority and focus. Ensuring continuity of the business through a comprehensive renewal program is of paramount importance. 

“This is also an incredibly resilient business with thousands of team members providing the commitment, enthusiasm and inspiration that helps deliver outstanding customer service.

“Major development projects are also underway or in planning across The Star, and in South East Queensland they represent transformational opportunities for the company and the state. It’s all the more exciting with the Olympics on their way in 2032.” 

Earlier this month, Star was found unsuitable to hold a casino licence within Queensland, where the group operates two properties, in developments that mirror those already encountered further south in New South Wales.

Shannon Fentiman, Queensland Attorney-General and Minister, made the comments after studying the findings of a report that was undertaken by former Court of Appeal Judge Robert Gotterson.

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Cooke, whose start date will be confirmed in the near future, is the current MD of Australian bank and payments fintech provider Tyro Payments, but boasts significant history within the gambling industry.

For a six year stint until 2005 he was head of strategy and legal counsel at Queensland-based wagering and gaming company UNiTAB, in addition to occupying the position of Group CEO and MD of Tatts Group from 2013 to 2018. From 2006 to 2013 Cooke was MD of Wotif.com.

“I am delighted to have the opportunity to re-join the gaming and hospitality industry, which is a passion of mine and where I have spent the majority of my career,” Cooke commented.

“There are challenges for The Star that have been well documented. They will be my priority and focus. Ensuring continuity of the business through a comprehensive renewal program is of paramount importance. 

“This is also an incredibly resilient business with thousands of team members providing the commitment, enthusiasm and inspiration that helps deliver outstanding customer service.

“Major development projects are also underway or in planning across The Star, and in South East Queensland they represent transformational opportunities for the company and the state. It’s all the more exciting with the Olympics on their way in 2032.” 

Star is currently the subject of a New South Wales probe to determine if it is complying with its statutory obligations and remains suitable to hold its licence, and is also faced with similar action regarding its properties in Brisbane and the Gold Coast.

The firm, which has undertaken an aforementioned executive reshuffle after vowing to “embark on a program of renewal in a timely manner,” saw closing submissions wrap up in NSW last month amid allegations of money laundering and fraudulent activity.

Most recently, the New South Wales government rejected a Star proposal to increase the number of gaming machines that the group is permitted to operate at its Sydney facility.

Ben Heap, Interim Chair, commented: “A comprehensive search conducted by global executive recruitment firm Spencer Stuart identified a number of quality candidates. 

“Following a thorough process, the board concluded that Robbie was the standout candidate with the ideal combination of experience, capabilities and attributes to lead The Star.”

Adding: “Given The Star’s significant investments to develop world-class tourism and entertainment destinations in South East Queensland and Sydney, the company will benefit significantly from both his understanding of the industry’s regulatory environment and extensive insights and experience across the hotel and broader hospitality sector.

“Robbie is well placed to lead The Star and restore confidence in the organisation. He is an outstanding choice to guide the company through its critical ongoing renewal program, a body of work already underway that will deliver a number of near and medium-term initiatives focused on governance, culture, training, systems and technology.”

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The collaboration, which also sees the company become exclusive wagering partner of the Sydney-based rugby league outfit, will include digital advertising across website and social channels, game day signage and a promise of “money can’t buy” opportunities for clients.  

Furthermore, in addition to match day activations, PlayUp will also gain naming rights to the Wests Tigers Field Club at Commbank Stadium, as well as a number of branding rights.

These include branding on 2022 playing shorts, which will expand to two panels for the 2023, 2024 and 2025 seasons, and jersey branding across these same years for the men’s and women’s jerseys.

Justin Pascoe, Wests Tigers CEO, welcomed PlayUp on board: “On behalf of all at Wests Tigers, I’d like to welcome PlayUp as our official wagering partner and express our thanks for their support over the next four years,” he said.

“It’s great to embed a first-class global wagering brand into our corporate family, and we’re looking forward to a strong partnership on and off the field.”

This partnership represents PlayUp’s first major sponsorship of an Australian sporting team, with rugby league said to represent “a significant component” of the group’s offering

Paul Jeronimo, PlayUp Australia CEO, said: “PlayUp and the Tigers have bright futures being up and coming players against their respective competition, so this partnership is a perfect match. At PlayUp we love NRL and are excited to partner with the Wests Tigers ahead of the 2022 season.”

Wests Tigers’ 2022 NRL campaign gets underway on Saturday 12 March at their CommBank Stadium home versus Melbourne Storm, before a first away game of the season eight days later at the Newcastle Knights.

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Iowa’s online and retail sportsbooks accepted $108.4m in bets in August, which is up 21.1 per cent from $88.9m in July (March: $161.4m). Bettors placed $3.5m per day over the 31 days of August, up from $2.9m per day during July.

Despite the volume increase, operator revenue fell 14.3 per cent to $6.6m from $7.7m in July, resulting in $486,608 in tax revenue for the state.

Year-over-year, August’s wagering was up 115 per cent compared with $50.3m in August 2020. Meanwhile, revenue grew 120 per cent in August from $3m in August 2020. Iowa sportsbooks have now generated $997m in bets since January 1, falling just short of reaching $1bn in wagering for the year.

“Futures betting and a handful of college games are enough to move the needle. That’s how important football is to the sports betting industry,” said Eric Ramsey, analyst for the PlayUSA network. 

“August is a precursor for what should be the busiest stretch of the year. Optimistic projections for the last four months put the state past $1.7 billion in wagers for the year.”

In August, $96.1m in bets were made online, representing 88.6 per cent of the state’s handle. Retail betting accounted for the remaining $12.4m.

William Hill topped the online market with $34.8m in online wagers, which yielded $229,427 in net receipts. DraftKings was second with $29.9m in online wagering, generating a market leading $2.3m in revenue.

Ameristar Council Bluffs topped the retail market with $3.6m in wagers, netting $643,585 in revenue. Diamond Jo Worth was second with $3.4m in bets, producing $246,324 in revenue.

“Operators have been jockeying for market share since the beginning of the year, but the real test comes with the beginning of the football season,” added Russ Mitchell, lead analyst for PlayIA. 

“If operators put in place a solid strategy for reaching out to customers over the summer, the fruits of that labour will start to come in September.”

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CDI temporarily suspended operations at its roster of properties in March, with temporary employee furloughs announced a short time later as a direct result, however, the firm has now resumed action of all gaming venues in its portfolio with the exception of Calder Casino in Miami, Florida.

Revenue for the quarter declined 61 per cent when contrasted with the same period a year earlier, finishing up at $185.1m from $477.4m. Q2 net loss came in at $118.8m contrasted to an income of $107.1m in 2019 with adjusted EBITDA falling 86 per cent to $30.1m (2019: $215m).

Revenue at the firm’s flagship Churchill Downs Racetrack reached $30.2m (2019: $193.1m) as adjusted EBITDA dropped from $121.9m to $4.5m, driven by the rescheduling of the 146th Kentucky Oaks and Derby, and a $13.5m decrease at Derby City Gaming due to the temporary suspension of operations.

CDI’s gaming segment saw revenue and adjusted EBITDA reported as $37.3m (2019: $177.8m) and a loss of $2m (2019: +$76.1m), respectively, due to the temporary suspension of operations of all properties and the related loss of revenue at each.

Increases were felt across the group’s online wagering reporting section, as revenue rose from $96m to $121.6m and adjusted EBITDA reached $38.8m from $22.2m.

For the six month period to June 30, CDI’s revenue came in at $438m (2019: $742.8m), net loss was reported as $142.2 compared to 2019’s income of $118.7m with adjusted EBITDA of $85.4m (2019: $289.6m).

“Our teams have been excited to welcome our guests back to our properties with enhanced safety and social distancing protocols,” noted Bill Carstanjen, chief executive officer of CDI.

“Our team is looking forward to a safe and successful 146th Kentucky Derby on September 5th when we can come together to celebrate this time-honored great American tradition.”

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The independent commonwealth statutory authority, which regulates communications and media services throughout the country, has made the move after receiving 35 complaints about the services in question being accessible in Australia.

ACMA investigations found them to be operating in breach of the Interactive Gambling Act 2001, with the subsequent request to ISPs to block the sites made.

The websites are questions are Happy Hugo, Mucho Vegas Casino, Kahuna Casino, Rich Casino, Box 24 Casino, Bondi Bet, JokaRoom, Omni Slots, Fruits 4 Real, XPokies and Slottica.

Since the ACMA made its first blocking request in November 2019, 66 illegal gambling websites have been blocked. More than 100 illegal services have pulled out of the Australian market since the authority started enforcing new illegal offshore gambling rules in 2017.

“Website blocking is one of a range of enforcement options, to protect Australians against illegal online gambling,” the ACMA explained in a media release.

“Website blocking provides a valuable opportunity to alert the public to illegal gambling services though the messaging that appears when there is an attempt to access the site.

“Consumers are directed to information about online gambling on the ACMA’s website including a register of licensed interactive wagering services for consumers to check legal services in Australia.”

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High aspirations regarding The Centennial State were expressed from the outset, with many pinpointing a good size population and a high propensity of those associating with sports, despite a COVID curveball bringing uncertainty to all involved.

“Colorado has gone on and launched sports wagering right in the middle of a global pandemic, this is a testament to not only the regulatory body but the operators and all the stakeholders involved in the launch,” expressed Joe Bertolone, executive director of the University of Nevada Las Vegas’ international centre for regulation, on day one of the SBC Digital Summit North America.

“It’s also a testament to the power of sports wagering as it continues to roll across the nation, even with no or very few sports to book.”

Bertolone was joined on ‘Tackling Colorado – Best Practices to Licensing’ by Rhea Loney, director of compliance at Penn Interactive, Dan Hartman, director, division of gaming at the Colorado Department of Revenue and Charles LeBoy, VP of compliance at Roar Digital, as the event entered full flow.

“We launched May 1 with sports betting and is was certainly a difficult time to decide whether we were going to go or whether we weren’t going to go because of the timing,” Hartman said of the indecision that took hold following the global health crisis.

After expressing relief that the launch contained both retail and online, the future prospects of the region were never in doubt as LeBoy proclaimed “We knew from the go that this would be a fabulous market for us”.

But what exactly did the Centennial State get so right that has had both US and European incumbents rushing to claim a piece of the action alongside one of 33 casinos situated across three mountain towns?

Loney heaped praise on the concerted effort undertaken by the authority to unite stakeholders in regulatory conversation early on through a series of workshops and roundtable discussions.

Organising meetings with operators as early as September 2019, which subsequently stepped up later in the year, the open discussions eventually welcomed 70 individuals from 50 different organisations and are lauded as leading the state with its set of permanent rules.

“I think I’ll put reasonable tax fees and licensing fees as one, I think that’s the first step to a competitive market,” Loney suggested when pressed on what best practices would be recommended to other regulators who are going through the process, or could be doing so in the future.

“And the second thing is that I think the working groups got us there, which is a set of regulations that protect the public, that are fair to operators and that operators understand what the expectations are out of those regulations and they’re clear and a process that we can follow.”

LeBoy on the other hand lauded a transparent process from start to finish as key to developing a key partnership that ensured regulatory success: “I think having a process and timelines that are well communicated to people, that if there are particular deadlines that that be made clear in advance, and to the extent possible having a go live date is very helpful to an operator when they are trying align multiple processes to a particular date.

“And two, just the collaborative nature of working with the regulator and operator whether it’s just providing feedback on the initial set of rules to the whole journey from someone looking to submit to actually getting live. I see that as a partnership between both the operator and the regulator, and the better that that partnership works the more successful an industry you’ll have in the end.”   

SBC Digital Summit North America recreates many of the key features of a physical trade show, providing attendees with an opportunity to learn, make new connections, and view the latest products from the comfort of their own home or office.

Running alongside the conference content is a program of themed networking sessions, while attendees will also have further opportunities to connect at workshops and in the 20-booth interactive exhibition hall where major international suppliers will showcase their latest innovations.

SBC Digital Summit North America is running this week July 14-16. To register or obtain more information visit the event’s official website.

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