MGM Resorts Eyes Strategic Expansion in the UAE
MGM Resorts has officially applied for a casino license in the United Arab Emirates (UAE), marking a significant move as the first major operator to pursue such an opportunity in the burgeoning Middle Eastern market. This bold step was announced by Bill Hornbuckle, CEO of MGM Resorts, during the Skift Global Forum 2024, as the company seeks to expand its global footprint into the UAE, specifically in Abu Dhabi.
MGM’s Strategic Move to Abu Dhabi
MGM’s focus on Abu Dhabi is a calculated effort to enter the region’s gaming market. Hornbuckle confirmed during the forum that the company submitted its application to the Abu Dhabi government, with the federal authorities overseeing the process. “Yes, we have [applied]. We’ve done it in Abu Dhabi,” Hornbuckle stated, explaining that both federal and local approvals are required for the license.
The UAE’s General Commercial Gaming Regulatory Authority (GCGRA) only began accepting casino license applications in July, creating a fresh opportunity that MGM was quick to seize. Despite having no operating hotels in the region, MGM’s current focus is firmly on securing the casino license, with Hornbuckle hopeful that the company will gain more clarity on the federal mandate by the end of the year.
Competitive Landscape: Wynn Resorts vs. MGM
MGM’s application follows Wynn Resorts’ high-profile development in the UAE. Wynn is investing $3.9 billion into a luxury resort in Ras Al Khaimah, expected to open in 2027, although Wynn’s casino license status remains unconfirmed. This intensifies the competition between the two casino giants, with both companies seeking to capitalize on the growing demand for entertainment in the region.
MGM has a strong foundation in the UAE, having established ties through past collaborations such as the CityCenter project in Las Vegas, which was a joint venture with Dubai World. In addition to its casino ambitions, MGM is developing a luxury resort in Dubai, set to feature brands like Bellagio and Aria, further cementing its commitment to the region.
Potential Market and Regulatory Outlook
The UAE represents a unique market opportunity for casino operators, particularly due to its large expatriate population. With expatriates making up between 80% and 90% of the UAE’s residents, the country is seen as an attractive destination for global tourists, particularly from India, China, and other Middle Eastern nations. As Hornbuckle noted, “It’s a huge travel market… Dubai airport is one of the largest airports, and I think it will be the biggest in the world.”
The broader shift towards legalized gaming in the UAE reflects changing attitudes in the region. The creation of the GCGRA signals a gradual loosening of restrictions, mirroring efforts in other Gulf states like Saudi Arabia and Qatar to diversify their tourism sectors. However, the UAE has not yet permitted its Emirati citizens to participate in casino gaming, a policy expected to continue.
MGM is optimistic about its chances, leveraging its long-standing regional relationships and proven track record in global gaming. “We’re excited by what it presents and we hope to be there,” Hornbuckle expressed.
Future Prospects: A Regional Gaming Hub?
If MGM succeeds in its bid for the casino license, it could become a key player in establishing Abu Dhabi as a premier destination for international gaming. As the UAE continues to evolve its tourism and entertainment sectors, the entrance of world-renowned operators like MGM and Wynn could transform the region into a competitive hub for the global casino industry.
NetBet, a veteran in the European online gambling arena, has set its sights on Danish shores. As of February 2024, the Malta-based operator proudly brandishes a newly minted license from Spillemyndigheden, Denmark’s gambling authority. This strategic move plants NetBet’s flag in one of Europe’s most vibrant digital gaming landscapes.
Hitting the Ground Running with Premier Partnerships
Wasting no time, NetBet has woven a web of alliances with heavyweights in the gaming industry. Thanks to collaborations with Pragmatic Play and Push Gaming, players in Denmark can now access a treasure trove of popular titles, including the high-octane “Razor Returns” and the mythological “Gates of Olympus. “
The momentum continued into spring, with NetBet’s game library swelling by over 200 titles. A flurry of deals inked between March and April 2024 brought aboard an impressive roster: Playson, 1X2 Network, Amusnet Gaming, G Games, Nolimit City, Play’n GO, Stakelogic, and Wazdan. This influx of content promises Danish gamers an array of options, from classic fruit machines to cutting-edge video slots.
Denmark’s Digital Playground: A Growing Market
NetBet’s arrival comes at an opportune time. Since opening its doors to regulated online gambling in 2012, Denmark has seen its digital gaming sector flourish. Industry analysts project the market to hit a staggering $1.16 billion in revenue for 2024, with online casinos and sports betting leading the charge.
While some experts note a slight dip in per-user spending compared to recent years, the overall trajectory remains upward. Sports betting, in particular, is expected to maintain its strong position in the Danish market over the next half-decade.
NetBet: A Pedigree of Excellence
With roots stretching back to 2001, NetBet brings a wealth of experience to the Danish market. The company has built its reputation on a foundation of innovation, reliability, and top-notch customer service. NetBet’s trophy case includes accolades for excellence in player support, and its footprint extends across multiple European jurisdictions.
The operator has also made waves through high-profile sponsorships in the football world and by organizing unique events like its Multicultural Cup. This blend of gaming expertise and creative marketing positions NetBet as a formidable new player in Denmark’s competitive online gambling landscape.
As NetBet unfurls its banner in Denmark, local players stand to benefit from a rich tapestry of gaming options backed by some of the industry’s most respected names. This expansion marks another chapter in NetBet’s quest to become a dominant force in Europe’s regulated online gaming markets.
Introduction of New Sports Betting Bill
A recently introduced federal bill, spearheaded by Congressman Paul Tonko and US Senator Richard Blumenthal, is stirring controversy in the sports betting world. The “Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act” aims to enforce stricter consumer protections and establish uniform standards across the sports betting industry in the US. However, the American Gaming Association (AGA) has expressed strong opposition, viewing the bill as an undue infringement on state authority.
Key Provisions of the SAFE Bet Act
The SAFE Bet Act sets minimum federal standards in three critical areas: advertising, affordability, and the use of Artificial Intelligence (AI). It mandates that all licensed sports betting operators comply with these standards, enforced through Department of Justice (DOJ) oversight. States wishing to run legal sports betting markets must first gain DOJ approval, proving that they meet the specified federal criteria.
One of the bill’s most significant measures includes a nationwide prohibition on sports betting, allowing exceptions only for DOJ-approved states. In addition, it places strict restrictions on sportsbook advertising, forbidding promotions between 8 a.m. and 10 p.m. and during live sporting events. Bonuses and inducements are also banned under the proposed law.
Affordability and Consumer Protection
Further consumer protection measures include limits on the number of deposits players can make in a 24-hour period and mandatory affordability checks for high-value wagers. For instance, if a customer wishes to wager more than $1,000 in a day or $10,000 in a month, operators must first verify the customer’s financial standing. Credit card deposits are entirely prohibited to mitigate the risks of gambling-related debt.
The SAFE Bet Act also places restrictions on the use of AI within the industry. Sportsbooks would no longer be allowed to use AI to track individual gambling behavior, tailor offers to specific players, or create gambling products like microbets that incentivize frequent betting.
Congressmen’s Views on the Bill
Congressman Tonko emphasized the role of sports as a cherished American tradition, expressing concern that modern betting practices are turning every moment of a game into an opportunity for wagering. He stressed the importance of protecting individuals from the adverse effects of gambling addiction, which he said has led to devastating personal consequences for many. Senator Blumenthal echoed these sentiments, framing the bill as a public health measure designed to curb addiction and protect young people from predatory practices.
Impact on the Sports Betting Landscape
If passed, the SAFE Bet Act would take effect one year after its enactment. States with existing sports betting markets would have a one-year grace period to comply with the new regulations. The bill also tasks the Substance Abuse and Mental Health Services Administration (SAMHSA) with conducting a National Sports Betting Survey to assess the impact of sports betting and maintain a national self-exclusion list for problem gamblers.
Industry Backlash and Concerns
Despite its focus on consumer protection, the bill has faced sharp criticism from industry stakeholders. Chris Cylke, Senior Vice President of Government Relations for the American Gaming Association, labeled the federal oversight as unnecessary and overbearing. He argued that state regulators have already made significant progress in creating safe and responsible betting environments, with billions in tax revenue supporting local economies.
In a move set to reshape the landscape of sports betting media, BetMGM has struck a multi-year deal with Gannett Co., the publishing powerhouse behind USA TODAY. This collaboration positions BetMGM as the go-to online sportsbook and casino partner for USA TODAY Sports, promising to revolutionize the betting experience for sports enthusiasts across the nation.
Nationwide Integration of Betting Insights
The partnership will see BetMGM’s odds and betting information seamlessly woven into the fabric of USA TODAY Network’s vast digital ecosystem. With a reach extending to over 200 local markets across 43 states and encompassing more than 300 digital news outlets, the network will introduce a novel “Bet Now” feature. This addition will provide readers with instant access to BetMGM’s comprehensive sportsbook offerings, bridging the gap between sports news and betting action.
Executive Perspectives on the Alliance
Michael Reed, at the helm of Gannett as Chairman and CEO, expressed optimism about the partnership’s potential. He emphasized the strategic alignment with BetMGM, a respected name in sports betting, and the opportunity to deliver top-tier betting information to their extensive audience of sports fans. Reed anticipates that this collaboration will not only drive audience engagement but also boost the monetization of Gannett’s content platform.
Echoing this enthusiasm, BetMGM’s CEO Adam Greenblatt highlighted the unparalleled reach of the USA TODAY Network. He sees the integration of BetMGM’s odds and insights into Gannett’s content as a way to empower fans, keeping them informed and engaged with their favorite sports. Greenblatt is particularly excited about the partnership’s potential to amplify the thrill of sports betting throughout the football season and beyond.
A New Chapter Following Previous Partnerships
This alliance marks a fresh start for Gannett in the sports betting arena, following the conclusion of its previous partnership with German operator Tipico. The transition to BetMGM is expected to elevate the network’s sports betting content and user engagement to new heights.
To further enrich the betting landscape for readers, Gannett has also teamed up with Gambling.com Group. This collaboration will leverage cutting-edge advertising technology to deliver BetMGM’s offers and expert insights across regulated online gambling states.
BetMGM’s Expanding Media Presence
The Gannett partnership is part of BetMGM’s broader strategy to enhance its visibility through strategic media collaborations. Recent notable partnerships include:
– Becoming the official odds provider for the Associated Press in May
– Forming a pioneering alliance with social media platform X (formerly Twitter) in February, establishing itself as the platform’s exclusive live odds provider
Market Positioning and Future Outlook
BetMGM continues to strengthen its position in the competitive U.S. market, offering a range of sports betting and online gaming options under various brands. The company is making significant investments in marketing and customer acquisition, aiming to close the gap with industry leaders and expand its market share.
In a recent development, BetMGM expanded its operational footprint by introducing district-wide mobile betting in Washington, D.C., as the jurisdiction opened its online market to multiple operators. This move underscores BetMGM’s commitment to broadening its accessibility and enhancing the betting experience for users nationwide.
As the sports betting landscape continues to evolve, the BetMGM-Gannett partnership stands poised to redefine how millions of Americans engage with sports and betting content, promising an exciting new era for sports enthusiasts and bettors alike.
Flutter Entertainment is expanding its presence in the Brazilian gaming market by acquiring a 56% stake in NSX Group, the parent company of Betnacional. The deal, valued at $350 million, marks the creation of a new division called “Flutter Brazil,” which will oversee operations in the region. The company expects to complete the acquisition by the second quarter of 2025, with plans to increase its stake at the fifth and tenth anniversaries of the deal.
This acquisition highlights Flutter’s commitment to enhancing its global reach, particularly in markets like Brazil, where online gaming and sports betting are experiencing rapid growth. Flutter will also integrate its existing Betfair brand into this new Brazilian division.
A Strategic Acquisition
NSX Group operates several well-known gaming and sports betting platforms in Brazil, including Betnacional, Pagbet, MrJack.bet, and Betpix. In 2024, the group is projected to generate revenues of approximately $256 million and an adjusted EBITDA of $34 million. Since its launch in 2021, NSX has captured 12% of the Brazilian sports betting market and 9% of the overall online gambling sector, positioning it as a leading player in the region.
Peter Jackson, CEO of Flutter, emphasized the strategic importance of this acquisition: “By combining the local expertise of the NSX team with Flutter’s existing Betfair operations, we see a tremendous opportunity for growth in Brazil. This market presents a unique runway for future expansion, and we are confident that Flutter Brazil will be well-positioned to take advantage of it.”
Positioning for Future Growth
The acquisition is timely as Brazil moves toward full regulation of its online sports betting and iGaming market, expected to be finalized in January 2025. Flutter anticipates that the newly formed Flutter Brazil will have a competitive edge in this regulated environment, leveraging a proprietary technology platform developed by NSX in Brazil.
Flutter’s approach aligns with its “local hero” strategy, which focuses on acquiring established, locally recognized brands to strengthen its portfolio. The local management team in Brazil is expected to play a crucial role in shaping customer-oriented strategies, giving the business flexibility to meet the needs of the rapidly evolving market.
Flutter’s Future Outlook
While the acquisition offers significant growth potential, Flutter expects an initial adjusted EBITDA loss of $90 million to $100 million for Flutter Brazil in 2025. However, the company remains confident in its long-term strategy. By integrating NSX into Flutter’s technological ecosystem, the company aims to drive synergies and enhance revenue through proprietary pricing, risk management tools, and a differentiated sportsbook offering.
Flutter plans to provide further updates on the acquisition at its investor day on 25 September 2024. This acquisition positions the company as a major player in Brazil’s emerging regulated market, with a strong outlook for future profitability and market share growth.
