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Pennsylvania Sportsbooks Up, But Still Lost Out $275 Million, While Online Casinos Surge, According to PlayPennsylvania

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According to an estimate by PlayPennsylvania, the revenue from retail and online sportsbooks in Pennsylvania has risen in May, but lost out on about $275 million in potential bets. Also, the gamblers turned to online casinos and poker rooms in record numbers.

“May was another challenging month for Pennsylvania’s gaming industry, but it appears that it will be the last month of online casinos and poker rooms being the only bearer of good news. The casinos that have recently reopened appear to be experiencing relatively strong traffic, and sports bettors are finding increasingly more to bet on. Recovery for the entire industry will be a long road, but there are reasons for optimism,” Dustin Gouker, lead analyst for PlayPennsylvania.com, said.

Online sportsbooks generated $77.5 million in wagers in May, up 68.4% from April’s $46 million handle. But Pennsylvania sportsbooks would have accepted more than $350 million in a more typical May, according to PlayNJ.

May’s handle yielded $4.8 million in gross revenue, up from $3.2 million in April, and $1.6 million in state taxes.

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“A normal menu of sports would likely mean an almost instant recovery for online sportsbooks, though we may still be a few months from that happening. Pennsylvania’s online sportsbooks have been savvy in keeping their customers engaged with sports well outside the mainstream. That will only help when things begin to return to normal,” Valerie Cross, analyst for PlayPennsylvania.com, said.

FanDuel Sportsbook at Valley Forge Casino topped the market with $29.6 million, up from $19 million in April. Those bets fueled $2.5 million in taxable revenue, up from $1.3 million. DraftKings at The Meadows generated a $21.8 million handle, up from $12.6 million.

Online casinos and poker rooms set a fresh record with $55.9 million in gross revenue, up 29.7% from $43.1 million in April.

A remarkable $1.8 billion was bet on online table games and slots in May, up from $1.4 billion in April. Operators, though, were still out of the $286.1 million land-based casinos generated in May 2019.

“As welcome as the online revenue has been, it can’t come close to replacing what was lost with the shutdown of land-based casinos. So far early signs are good for Pennsylvania’s land-based casinos, but they are still navigating diminished capacity and uncertain demand as they reopen. For that reason, online casino games and poker will remain critical in bridging revenue gaps as Pennsylvania casinos recover,” Cross said.

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Rivers-Philadelphia led the online casino market with $17.6 million in revenue on $641.3 million in wagers, up from $13.7 million in revenue on $477 million in wagers in April. DraftKings enjoyed a strong debut of its online casino under the Penn National license. After launching on May 1, DraftKings helped boost Penn National to $9 million in revenue on $313.4 million in wagers from $4.6 million in revenue and $122.2 million in wagers in April.

“DraftKings’ online casino is a well-designed product, and bettors obviously reacted positively. FanDuel and DraftKings are the dominant players in the state, and their dominance will only grow as their online casinos grow and sports betting returns,” Gouker said.

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Alcohol and Gaming Commission of Ontario (AGCO)

Soft2Bet strengthens integrity monitoring with IBIA membership in Ontario

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Soft2Bet, a leading casino and sportsbook platform provider, has joined the International Betting Integrity Association (IBIA) and activated its membership in Ontario, Canada, following its licensing in the Canadian province.

Soft2bet obtained its Certificate of Registration from the Alcohol and Gaming Commission of Ontario (AGCO) at the end of March, where the company’s Ontario-focused brand Tooniebet.com will now feed into IBIA’s world-leading sports betting integrity monitoring platform before worldwide implementation in the coming months.

IBIA includes over 50 of the world’s leading sports betting and gaming companies, who operate over 125 sports betting brands. Soft2Bet’s decision to join the association further strengthens its own internal betting integrity protocols and IBIA’s position as the world’s leading sports betting integrity monitoring body.

David Yatom Hay, General Counsel at Soft2Bet, commented: “Soft2Bet is delighted to be joining the IBIA as we strengthen our own betting integrity monitoring processes and play our part in furthering the IBIA’s long-standing work on this key issue. Ontario is a world class iGaming jurisdiction; it will be the first market where we will implement our IBIA membership and we look forward to deploying the monitoring infrastructure worldwide in all the other markets in which we operate.

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Khalid Ali, CEO of IBIA, said: “Soft2Bet is a very welcome addition to IBIA, further strengthening our position in the Ontario market. The operator’s decision to join IBIA demonstrates its desire to utilise the best integrity protection available for its sportsbook product. The association is delighted to be able to integrate Tooniebet within our integrity monitoring system and looks forward to working closely with Soft2Bet to maintain the high integrity of its sportsbook.”

IBIA is a not-for-profit body that has no competing conflicts with the delivery of commercial services to other sectors and is run by operators and for operators to protect regulated sports betting markets from match-fixing. IBIA’s global monitoring network is a highly effective anti-corruption tool, detecting and reporting suspicious activity in regulated betting markets.

Through the IBIA monitoring network it is possible to track transactional activities linked to individual customer accounts. IBIA members generate more than $300bn in annual betting turnover (handle), accounting for approximately 50% of the global commercial regulated land-based and online sports betting sector, and in excess of 50% for online alone.

IBIA recently released a report on the Availability of Sports Betting Products which highlighted Ontario as a leading regulated gambling jurisdiction, with an expected onshore channelisation for sports betting of 92% in 2024 forecast to rise to 97% in2028. IBIA currently represents over 60% of the private sports betting operators licensed in the province. All online sportsbetting operators licensed in Ontario are required to be part of a betting integrity monitoring body.

IBIA’s Q1 2024 report detailed 56 alerts during the quarter. IBIA alerts contributed to the investigations and subsequent successful sanctioning of 21 clubs, players and officials in 2023, an increase on the 15 sanctioned in 2022.

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British Columbia Lottery Corporation

SCCG Management Signs Contract with British Columbia Lottery Corporation

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SCCG Management has signed a contract with the British Columbia Lottery Corporation (BCLC), the B.C. Crown corporation which conducts and manages commercial gambling in the province, including lotteries, casinos, and online gaming. This partnership aims to undertake a comprehensive assessment and strategic enhancement of BCLC’s diverse operations.

The work between SCCG and BCLC will involve a thorough review of technological infrastructures, strategic market positioning, and the integration of various gaming modalities. SCCG’s extensive expertise will be pivotal in harmonizing BCLC’s online and physical gaming experiences.

Stephen Crystal, Founder and CEO of SCCG Management, said: “Our collaboration with BCLC represents a remarkable opportunity to push the boundaries of innovation within the gaming industry. We are committed to deploying our resources and expertise to enhance BCLC’s operational efficiencies and customer engagement strategies. It’s an honor to partner with an organization that has a robust impact on the community through its support of public initiatives.”

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AGCO

AGCO Requires Ontario Gaming Operators to Stop Offering WBA Bets Due to Integrity Concerns

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The Alcohol and Gaming Commission of Ontario (AGCO) has mandated all Ontario-registered sportsbook operators to halt offering and accepting wagers on World Boxing Association (WBA) events immediately. This measure is being taken to protect the Ontario betting public following concerns that WBA-sanctioned boxing matches are not adequately being safeguarded against match-fixing and insider betting.

Since December 2023, the AGCO has been conducting a comprehensive review of suspicious wagering activity on a WBA-sanctioned title fight between Yoenis Tellez and Livan Navarro that was held in Orlando, Florida. Suspicious betting patterns on the bout lasting over 5.5 rounds were reported to the AGCO by two registered independent integrity monitors and detected in Ontario by a registered igaming operator. Media reports also alleged that Tellez’s Manager placed $110,000 on the match lasting longer than 5.5 rounds at a Florida casino. The bout ended with Tellez knocking out Navarro in the 10th round.

Following an intensive review that included outreach to the WBA, Ontario-registered gaming operators, independent integrity monitors, and regulators in other jurisdictions, the AGCO has concluded that bets related to WBA events do not currently meet the Registrar’s Standards for Internet Gaming.

The AGCO requires all Ontario-registered gaming operators to ensure the sport betting products they offer are on events that are effectively supervised by a sport governing body. At a minimum, the sport governing body must have and enforce codes of conduct that prohibit betting by insiders.

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Registered gaming operators were unable to demonstrate to the AGCO that the WBA prohibits betting from insiders, which could include an athlete’s coaches, managers, handlers, athletic trainers, medical professionals, or others with access to non-public information. Further, registered gaming operators were unable to demonstrate that the WBA took any action to investigate or enforce the allegations of potential match-fixing and insider wagering.

The AGCO has indicated to registered operators that in order for WBA betting products to be reinstated in Ontario, operators must demonstrate that the WBA effectively supervises its events, thus bringing them into compliance with the Registrar’s Standards. In December 2022, the AGCO required gaming operators to stop offering bets on UFC events for similar issues related to insider betting safeguards. Within a month, UFC amended its policies and implemented new protocols that allowed the AGCO to reinstate betting on UFC events in the province.

“Ontarians who wish to bet on sporting events need to be confident that those events are fairly run, and that clear integrity safeguards are in place and enforced by an effective sport governing body. Knowing the popularity of boxing in Ontario, we look forward to reinstating betting on WBA events once appropriate safeguards against possible match-fixing and insider betting have been confirmed,” Dr. Karin Schnarr, Registrar and CEO of AGCO, said.

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