Online Casino Growth Drives Revenue Surge in August
Denmark’s gross gaming revenue (GGR) for August 2024 reached DKK571m (£64.2m/€76.6m/$84.1m), marking a 4.3% increase from the same period last year, according to data from the Danish gambling regulator, Spillemyndigheden. This increase was largely driven by the substantial growth in the online casino sector, which posted a 20.8% year-on-year rise to DKK299m. This performance was also 5.3% higher than July, falling just short of the all-time monthly record of DKK309m set in March 2024.
In contrast, other sectors of Denmark’s gambling market saw declines. Sports betting revenue dropped by 14% year-on-year to DKK147m, which was also down by 1.3% from July. Meanwhile, land-based gambling continued to struggle, with physical slot machine revenue dipping by 0.2% to DKK96m. However, this was slightly better than the previous month. Land-based casino revenue also fell, down by 12% to DKK29m, a figure unchanged from July.
Crackdown on Illegal Gambling Intensifies
As Denmark’s licensed gambling sector faces both growth and challenges, efforts to combat illegal gambling operations have intensified. On August 22, 2024, a Danish court approved the blocking of 79 unlicensed websites offering illegal gambling services, following a request from Spillemyndigheden. This brings the total number of blocked sites to 162 in 2024, making it a record year for enforcement.
The move is part of an ongoing effort to protect consumers, particularly minors, from unlicensed gambling platforms that fail to meet Denmark’s strict regulatory standards. The court order included the blocking of several skin betting websites, which allow users, particularly younger audiences, to gamble using virtual items and currencies like “Robux” from the popular game Roblox. Spillemyndigheden’s Director, Anders Dorph, expressed relief over the shutdown of these platforms, underscoring the need to shield children from gambling-related risks.
Self-Exclusion Scheme Grows, Targets Vulnerable Users
August also saw the continued rise of participants in Denmark’s national self-exclusion scheme, ROFUS, which reached 51,893 registrants, an increase of 12.4% year-on-year. Of those registered, 66.6% have opted for permanent exclusion, while the rest have chosen temporary exclusions. The scheme aims to provide a safety net for those at risk of gambling addiction, offering individuals a pathway to limit or stop their gambling activities.
In addition, data from Spillemyndigheden reveals that younger individuals are increasingly using Denmark’s StopSpillet support service. Since its launch in 2019, the service has received 3,200 inquiries, with 37% of those coming from people aged 18 to 25—indicating a growing awareness of gambling risks among the youth.
Looking Forward: Balancing Growth and Regulation
As Denmark’s gaming industry navigates growth in online sectors and challenges in land-based operations, the country’s regulatory efforts to curb illegal gambling continue to expand. With Spillemyndigheden blocking more websites and telecom providers joining the initiative, the aim is clear: maintaining a fair, regulated gambling environment that protects consumers, particularly vulnerable groups like minors, from the dangers of unlicensed platforms.
The future of Denmark’s gaming sector will likely hinge on this delicate balance between fostering growth in the legal market and effectively regulating the industry to safeguard its users.
The Ute Mountain Ute Tribe has joined forces with the Southern Ute Indian Tribe in a legal dispute with the state of Colorado. Both tribes claim they have been unfairly denied access to the online sports betting market, an economic opportunity they argue was guaranteed under long-standing agreements with the state. They are now seeking legal recourse to ensure their rights are upheld.
Tribal Leaders Call for Justice
Chairman Manuel Heart of the Ute Mountain Ute Tribe expressed deep frustration with the state’s actions, emphasizing, “The state must fulfill its obligations to our Tribes as outlined in agreements and federal law. This injustice leaves us no choice but to pursue legal action.” He highlighted the economic setbacks this exclusion has caused for the tribes.
Southern Ute Indian Tribe Chairman Melvin J. Baker echoed this sentiment, stating, “Enough is enough. This unfair treatment has persisted for too long. We demand that the state correct this situation immediately.”
Blocked from the Online Sports Betting Market
The crux of the issue lies in the tribes’ exclusion from Colorado’s online sports betting market, despite federal and state agreements allowing them to engage in gaming activities. These agreements, which have been in place for decades, explicitly permit the tribes to conduct the same types of gaming that are available to others in the state.
When Colorado voters approved Proposition DD in 2019, online sports betting became legal, opening up new economic opportunities. However, both tribes argue that despite these legal allowances, they have been unjustly blocked from entering the market, while private operators have benefited since 2020.
Taxation Dispute at the Center
A major sticking point in the conflict is the state’s inability to tax tribal gaming revenue, which is exempt under federal law. Tribal gaming profits must be used to support government functions and the welfare of tribal members. This has caused tension, as Colorado has continued to prevent the tribes from fully participating in online sports betting, citing concerns about taxation.
While the state has had opportunities to address this issue, such as introducing a ballot measure in 2024, it has failed to take action. This contrasts with states like Kansas, which quickly amended its laws to allow tribal participation in online sports betting after initially excluding them.
Seeking a Legal Resolution
After years of unsuccessful negotiations, the Ute tribes are now turning to the federal courts. They are asking for an injunction that will allow them to access the online sports betting market, as promised under their agreements with the state. Both tribes remain hopeful that the court will side with them, ensuring that they receive the economic opportunities they are legally entitled to.
WA.Technology, a leading provider of B2B iGaming solutions, has revealed its acquisition of Onseo, a global technology firm known for its work in the iGaming sector. This acquisition marks a significant milestone for WA.Technology, allowing the company to enhance its in-house capabilities in game production, sportsbook development, and platform expansion.
By integrating Onseo’s expertise, WA.Technology is set to strengthen its suite of products, including:
- WA.Platform
- WA.Sports
- WA.Casino
- WA.Affiliates
- WA.Lottery
- WA.Fantasy
This acquisition empowers WA.Technology’s network of operators with a broader range of innovative solutions, promising greater flexibility and faster product delivery.
Onseo’s Role and Impact
Onseo, with over 700 developers, has built a strong reputation in the iGaming industry, developing key technologies for major players in the sector. The partnership enables WA.Technology to offer rapid customization and scalable features to its clients, furthering its mission to deliver cutting-edge iGaming solutions.
WA.Technology’s CEO, Tim Scoffham, expressed his excitement: “We are thrilled to welcome Onseo to the WA.Technology family. Their ability to deliver top-quality technology quickly is impressive, and this acquisition brings huge capacity in-house. Onseo’s expertise will enable us to enhance our portfolio and deliver new experiences for our partners globally.”
WA.Technology Partners with Miracl for Enhanced Security
In a move to bolster security across its platform, WA.Technology has entered into a new partnership with Miracl, a leading provider of passwordless multi-factor authentication (MFA). This collaboration aims to enhance both account and payment security, significantly reducing fraud risk for iGaming operators and their players.
Enhanced User Experience and Security
WA.Technology, already renowned for its wide array of game providers and payment options, will now offer Miracl’s cutting-edge MFA solution to streamline the login process for users. The partnership seeks to protect players while simultaneously enhancing their gaming experience.
Tim Scoffham, CEO of WA.Technology, commented: “Security is paramount in the iGaming industry. Our partnership with Miracl allows us to provide a state-of-the-art, passwordless authentication solution that both safeguards players and improves their overall experience.”
Rob Griffin, CEO of Miracl, added: “We are excited to collaborate with WA.Technology to bring our secure, single-step login to their platform. This integration not only boosts security but also increases operator revenue by driving more traffic and improving conversion rates.”
A Growing Ecosystem
This announcement follows WA.Technology’s acquisition of Onseo, further solidifying its position as a major player in the iGaming industry. The addition of Onseo’s expertise and Miracl’s advanced security measures positions WA.Technology to continue delivering innovative, secure, and scalable solutions to its global network of operators.
Financial Highlights
Playtech plc, a leading gambling software development company, has reported exceptional results for the first six months of 2024. The firm’s financial performance exceeded expectations across several key metrics. Adjusted EBITDA reached €243 million, marking an 11% increase year-over-year. Total revenue climbed to €906.8 million, representing a 5% growth. The B2B division was particularly impressive, with revenue surging by 14% to €382.2 million.
Americas Market Boom
The Americas region emerged as a powerhouse for Playtech, with revenue skyrocketing by 42%. This remarkable growth can be attributed to successful partnerships with prominent operators such as Caliplay in Mexico, Wplay in Colombia, and Parx in the United States. These collaborations have solidified Playtech’s position in the rapidly expanding North and South American markets.
Strategic Divestment: Snaitech Sale
Deal Overview
In a landmark transaction, Playtech announced the sale of its Snaitech division to Flutter Entertainment. The deal is valued at €2.3 billion, including debt, and is expected to close by Q2 2025. Playtech plans to return a substantial portion of the proceeds to shareholders, with a special dividend between €1.7-1.8 billion planned. This move represents a significant return on investment for Playtech, which acquired Snaitech in 2018 for €846 million.
Snaitech Performance
Despite the impending sale, Snaitech maintained its dominant position in the Italian market. The division reported revenue of €483.6 million, representing a slight 1% decrease. This minor dip was primarily attributed to unfavorable sports betting outcomes early in 2024. Nevertheless, Snaitech continued its market leadership in Italy, demonstrating the strength of its operations.
Flutter’s Strategic Expansion
The acquisition of Snaitech aligns with Flutter Entertainment’s aggressive growth strategy. This move is expected to increase Flutter’s share in the Italian market to approximately 30%. Snaitech will join Flutter’s existing Sisal operations in Italy, creating a formidable presence in the country. This acquisition follows Flutter’s recent expansion in Brazil, where it acquired a 56% stake in NSX Group, the operator of Betnacional. These moves further cement Flutter’s position as the world’s largest gambling company, with a particular focus on expanding its international footprint.
Playtech’s Future Outlook
CEO’s Perspective
Mor Weizer, Playtech’s CEO, expressed confidence in the company’s strategic direction. He emphasized the strong contributions across key markets in the B2B sector and announced a revised agreement with Caliplay, their Mexican partner. Weizer expects Playtech to surpass its full-year EBITDA targets for 2024, highlighting the company’s positive momentum.
Financial Forecast
Playtech has adjusted its financial outlook for 2024, projecting adjusted EBITDA between €200-250 million. The company is particularly excited about its prospects in North America, where revenues have seen a remarkable 200% increase compared to the first half of 2023. Playtech continues to focus on emerging opportunities in the U.S. and Canadian markets, which are showing significant potential for growth.
Industry Implications
The Playtech-Flutter deal signifies ongoing consolidation in the global gambling industry. Increased competition is driving strategic acquisitions as companies seek to strengthen their market positions. The evolving regulatory landscape is also pushing firms to adapt to diverse international regulations. Furthermore, there’s a growing emphasis on technology integration, with companies looking to combine complementary platforms and innovations to enhance their offerings.
The Coalition of New Mexico Gaming Tribes recently convened at the Sandia Resort and Casino in Albuquerque for a membership meeting. The Indian Gaming Association (IGA) took this opportunity to brief member tribes on national legislative developments and organizational matters.
Chairman’s Address Highlights Tribal Gaming Success
Ernie Stevens, Jr., the IGA Chairman, delivered a keynote speech to the assembled gaming tribes and pueblos. He commended the tribes for their significant contributions to New Mexico’s economic landscape and their efforts in preserving cultural heritage. Stevens expressed his admiration for the impressive growth witnessed at Sandia.
Record-Breaking Revenue Reported
Stevens shared encouraging news about Indian gaming revenues. According to the latest National Indian Gaming Commission (NIGC) figures, revenues had reached a new high of $41.9 billion in 2023, more than the previous year’s record. He emphasized the positive ripple effects of this growth on tribal and neighboring communities. Stevens also noted that employment in the Indian gaming sector was approaching the same levels pre-COVID, demonstrating the industry’s resilience.
The chairman reflected on the sector’s recovery, noting that while some described it as miraculous, especially following the pandemic’s challenges, tribal leaders viewed this success as an expected outcome of their commitment to securing a prosperous future for their communities.
Focus on Sovereignty and Collective Action
Stevens stressed the importance of maintaining tribal sovereignty and fostering unity in pursuit of continued economic development. He urged New Mexico’s gaming tribes to remain cohesive as they navigate the evolving political landscape and advocate for policies that protect their sovereignty and promote growth.
Key Legislative and Policy Developments
The chairman provided updates on several crucial legislative matters. These included modifications to the General Welfare Exclusion Act, changes in the Interior Department’s fee-to-trust processes, and ongoing concerns about land restoration cases. Stevens cautioned about potential risks from unfavorable Supreme Court rulings and stressed the importance of collaboration with organizations like the National Congress of American Indians (NCAI).
He emphasized the significance of the upcoming national elections, stating that the Native vote would be crucial and urging support for policymakers who understand and respect the unique sovereign status of tribal nations.
Additional Insights from IGA Leadership
Complementing Stevens’ address, Danielle Her Many Horses, IGA Deputy Director, and Elizabeth Homer, IGA Regulatory Counsel, provided additional legislative updates to the member tribes.
Commitment to Ongoing Advocacy
In conclusion, Stevens stressed the IGA’s dedication to advocating for its member tribes. He stated that the work in Indian Country is continuous, and the Indian Gaming Association remains committed to protecting tribal sovereignty and ensuring the success of tribal gaming nationwide.
