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Gambling in the USA

Gaming Americas Weekly Roundup – July 27-August 2

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Welcome to our weekly roundup of American gambling news again! It was again an eventful week at the USA, despite the still-active virus attack.

Here, we are going through the weekly highlights of the American gambling industry which include the latest news, financial results and new partnerships. Read on and get updated.

Latest News

Unibet, part of the Kindred Group, has officially entered into the Indiana Sports Betting Market. Unibet is now available to bettors in the Hoosier State, adding to Indiana’s already impressive sports betting landscape.

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Online casino and sports betting operator Rush Street Interactive (RSI) and blank-check company dMY Technology Group have announced that they have entered into a definitive merger agreement. As a result of the transaction, RSI will become a publicly listed company on the New York Stock Exchange.

Financial Results

Newgioco Group has announced its operating and financial results for the first quarter of 2020. The Company reported a strong quarter in spite of global economic difficulties and shutdowns caused by the COVID-19 pandemic. Newgioco reported a year over year increase in revenue from $9.3 million to $10.2 million generated from $116 million in turnover (betting handle) during Q1 2020 which represents an increase in revenue of 9.8% over Q1 2019.

Partnerships

FanDuel Group has entered into a multifaceted, betting-focused partnership with The Ringer. As part of the deal, FanDuel has been designated the exclusive sportsbook, racing and fantasy sports partner of the multimedia sports and pop culture content hub created by Bill Simmons.

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Transaction technologies supplier JCM Global has entered into a partnership agreement with Cash Processing Solutions which enables JCM to supply advanced high-speed count/sort equipment and cash management software in North America.

Global Payments Gaming Solutions, a division of Global Payments, has announced that Wynn Resorts has implemented its suite of igaming solutions for use in the New Jersey online gaming market. Through Global’s igaming solutions, Wynn Resorts can enable a multi-channel approach, with an online casino and sports betting.

Acquisitions

Mozzart, one of the leading sports betting and gaming companies in Eastern Europe, has acquired Meridianbet, the betting firm licensed by Colombian regulator Coljuegos since 2018. Meridianbet has been rebranded as Mozzartbet.

HeadsUp Entertainment International Inc has entered into the final stage of negotiations to acquire a licensed online sportsbook and online casino platform. HeadsUp revealed that is in the final stages of a deal to acquire between 50% and 100% of shares of the company, which has processed over $110m in wagers and reported over $5.2m in revenue in the past four years.

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Soo Kim, the co-founder of hedge-fund giant Standard General, has scooped up three casinos on the cheap since the pandemic struck in March. The three acquired casinos are Bally’s Atlantic City Hotel & Casino, Eldorado’s namesake property in Shreveport and Eldorado’s Montbleu in Lake Tahoe.

New Launching

Video Gaming Technologies (VGT) has launched its first-ever The Hunt for Neptune’s Gold lounge at Osage Casino Hotel, Tulsa on July 31. The 1100 square foot gaming space is adjacent to the hotel lobby and offers 32 of The Hunt for Neptune’s Gold games on the Helix XT cabinet.

Churchill Downs Incorporated has announced that it will launch its BetAmerica sports betting and iGaming platform in Michigan through a partnership with the Hannahville Indian Community.

Compliance

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Las Vegas-based GameCo LLC has received a Casino Service Industry Enterprise License from the New Jersey Division of Gaming Enforcement. The company is now able to bring its diverse portfolio of esports betting, skill-based iGaming and Video Game Gambling products to casinos and sportsbooks in New Jersey.

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Gambling in the USA

MGCB to Increase Regulatory Capacity with Additional Staff, Contribute $6M to Compulsive Gambling Prevention Fund

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On Thursday, June 27, the Michigan Legislature reached an agreement on the state’s Fiscal Year 2025 budget which includes $1.9 million of funding earmarked to support the addition of 14 full-time equivalent (FTE) staff positions at the Michigan Gaming Control Board (MGCB). These positions are necessary to support the agency’s internet gaming and sports betting regulatory operations in one of the fastest-growing U.S. gaming markets, expand the MGCB’s regulatory capacity, and enhance protections against illegal activity.

Additionally, the Compulsive Gambling Prevention Fund and its associated programs will receive a $3 million funding increase from the MGCB. This increased allocation of proceeds from internet gaming and sports betting funds will enhance the 24/7 Gambling Disorder Helpline operated by the Michigan Department of Health & Human Services, and support gambling research and education for youth about gambling, as well as existing treatment options to assist those with gambling addiction and related problems.

“I extend my deepest gratitude to Governor Whitmer and the Legislature for their commitment to enhancing the Michigan Gaming Control Board’s operations with their support of additional FTE positions, underscoring their dedication to strengthening the agency and it’s regulatory efforts. Moreover, the MGCB’s increased contribution, from $3 million to $6 million, to the Compulsive Gambling Prevention Fund demonstrates our proactive approach towards responsible gaming. Together, we are safeguarding the integrity of the industry while prioritizing the well-being of Michigan citizens,” MGCB Executive Director Henry Williams said.

The MGCB will use another $3 million in its FY2025 budget to support the continuation of the agency’s “Don’t Regret the Bet” responsible gaming messaging campaign. Launched on March 1, 2023, the campaign provides tips and information to Michigan citizens that can help them play it smart and keep gambling from getting out of hand.

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The bipartisan budget agreement is now headed to Gov. Gretchen Whitmer’s desk for her consideration and signing into law, with funding allocations expected to take effect Oct. 1, the start of the state FY2025 budget calendar year.

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EGR North America Awards 2024

High 5 Casino Wins Social Gaming Operator of the Year for Second Consecutive Year

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High 5 Casino is thrilled to announce its consecutive win as Social Gaming Operator of the Year at the EGR North America Awards 2024. This prestigious award reaffirms High 5 Casino’s exceptional performance and innovation in the social gaming sector.

“We’re honored that High 5 Casino has once again received the Social Gaming Operator award,” said Tony Singer, CEO of High 5 Games. “Beyond our growth in users, it’s the happiness our players find in the H5C community that motivates us to continually improve. Our commitment is to provide players with top-notch casino content, and we’re determined to solidify H5C as the leading social casino brand worldwide.”

An independent panel of judges selected High 5 Casino for its outstanding performance and innovation over the past year. The award recognizes High 5 Casino’s notable commercial success and community-building efforts in the social gaming market.

“The recognition from EGR North America Awards is a testament to our team’s dedication and the support of our players,” added Tony Singer. “We are excited to continue pushing boundaries in social gaming and delivering unforgettable experiences to our community.”

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The winners were announced on June 27 at an awards ceremony held at Midtown Loft & Terrace in New York City. High 5 Casino secured the Social Gaming Operator of the Year award due to its outstanding product quality, revenue growth, and leadership in innovation across product differentiation, marketing, and technology.

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Gambling in the USA

Pennsylvania Skill, Powered by Pace-O-Matic, Congratulates PA Gaming Control Board and Casino Giants on Surpassing 2023 Revenue Numbers

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Pace-O-Matic (POM), creator of Pennsylvania Skill games, has congratulated the Pennsylvania Gaming Control Board (PGCB) which saw an 8.7% increase in gambling revenue in May 2024 over revenue in May 2023.

The funding comes from slot machines, table games, internet gaming, sports wagering, fantasy contests, and video gaming terminals (VGTs). The May revenue total is $520,997,868.

As the PGCB celebrates yet another enormous financial win, small businesses, veterans groups, volunteer fire companies and other fraternal clubs across the state also are pleased with the income they receive from operating legal skill games.

“The increased revenue for casinos and other gambling enterprises under the jurisdiction of the PGCB is good for the commonwealth. These numbers show that there is room in the state for both casinos and small businesses that operate skill games to be successful. There is no competition between the two,” said Mike Barley, spokesman for Pennsylvania Skill.

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Barley questions why casinos, especially Parx Casino, are fighting skill games when they continue to see increased revenues month after month and year after year. He added he is disappointed the giant casino industry wants to destroy family businesses and organizations that count on skill games for supplemental income by seeking to impose a crushing tax rate on the games. Legislation to regulate skill games calls for a 16% tax on skill games while casinos say the tax should be 52%.

“Sadly, $521 million a month is not enough to satisfy the greedy casino industry. Instead, they want to kill small businesses, American Legions, volunteer fire companies, Moose Lodges and other places that count on income from skill games. These locations could never afford to pay the same tax rate that wealthy casinos pay. Casinos know that but they simply don’t care,” Barley added.

Barley explained that POM supports legislation sponsored by Sen. Gene Yaw and Rep. Danilo Burgos that will regulate and tax skill games. There is bipartisan backing for the legislation that will put guardrails around skill game operations and provide $250 million in skill game tax revenue for the state in the first year alone. Gov. Josh Shapiro wants to see skill game tax revenue as part of his 2024-25 state budget. But, Barley added, that revenue is generated only through a reasonable tax on skill games.

Several courts have ruled Pennsylvania Skill games are legal, including a unanimous Commonwealth Court in November. In addition to providing supplemental income to small businesses, the games are manufactured in Williamsport and 92% of the income they generate stays within the local economy or the state.

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