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New Jersey’s regulated betting and gaming market generated total gaming revenue of $264.5m in July, buoyed by another strong performance from iGaming and improved results from sports betting and land-based gaming.

Total revenue fell by 21 per cent compared to the same period last year as Atlantic City casinos, retail sportsbooks and racetracks began re-opening at the start of the month following their mandated closure due to COVID-19.

NEW JERSEY GAMING REVENUE COMPARISON: JULY 2020 (US$)
July 2020 July 2019 % Change
Land-Based 147.4m 277.2m (47%)
iGaming 87.5m 39.3m 123%
– Online Poker 4.8m 1.9m 155%
– Online Casino 82.7m 37.4m 121%
Sports Betting 29.6m 17.9m 65%
TOTAL 264.5m 334.4m (21%)
Revenue from iGaming soared 122.5 per cent year-on-year to $87.5m in July, comprising a 155 per cent increase in online poker revenue to $4.8m and a 121 per cent rise in online casino revenue to $82.7m.

Golden Nugget continued to lead the iGaming market as it grew revenue by 111 per cent to $31.5m for the month, although the biggest growth came from Ocean Casino, where revenue soared 217 per cent to $1.2m.

iGaming revenue at Resorts Digital rose 162.5 per cent to $18.0m, while Borgata revenue grew 140 per cent to $15.3m and Caesars Interactive revenue climbed 90 per cent to $9.7m. Tropicana revenue increased by 62 per cent to $6.2m, while revenue from Hard Rock increased by 195 per cent year-on-year to $5.6m.

Total sports betting wagers amounted to $315.1m in July, with online generating $295.8m of the total and retail just $19.3m. As a result, sports betting revenue increased by 65 per cent to $29.6m, with racetrack Meadowlands generating nearly half of the total as revenue rose 55 per cent to $14.1m.

The next biggest sports betting operator was Resorts Digital, which saw revenue climb 119 per cent to $8.2m, while Borgata revenue soared 245 per cent to $3.0m. Monmouth Park generated $1.7m in sports betting revenue, with Hard Rock at $856,358. The remaining five operators generated combined sports betting revenue of $357,825 during the month.

Land-based casino revenue fell by 47 per cent year-on-year to $147.4m, with Ocean Casino the only operator to record growth, up 23 per cent to $23.6m.

For the first eight months of 2020, total gaming revenue decreased by 33 per cent to $1.29bn. iGaming revenue increased by 99 per cent to $510.2m, with sports betting revenue up 9 per cent at $138.5m and land-based casino revenue down 58 per cent at $643.2m.

The Virginia lottery released its full draft sports betting regulations for public comment Monday, with the regulated online sports betting market expected to launch in January 2021.

The proposed regulations cover topics including operations, internal controls and enforcement, and are open to public comment until September 9, one week prior to the deadline set for the lottery board to approve the regulations.

Subject to approval of the regulations, licensing is expected to begin in October, with the first online sports betting operations expected to go live in January next year. A total of 12 online-only sports betting licenses will be available in the state.

“The Virginia Lottery takes very seriously its role assigned by the General Assembly to appropriately and responsibly regulate sports betting in the Commonwealth,” said Virginia Lottery executive director Kevin Hall.

Sportradar
“The regulatory framework we are building now is vital to the process, and we are committed to doing so with transparency to allow stakeholders and the public to weigh-in on these preliminary rules-of-the-road for sports wagering in Virginia.”

There is little doubt that business development chiefs want conferences to come back. But do they want them back with all the restrictions that will come with a hasty return? And do they want so many?

On 10 March, SBC Events optimistically postponed its CasinoBeats Malta event until June. It also postponed Betting on Sports America to the more realistic date of December 2020. A month later it accepted the inevitable and made CasinoBeats an online event.

On 24 March, the day after Prime Minister Boris Johnson announced the UK’s lockdown, Clarion Gaming postponed ICE North America. It was due to take place in May but is now scheduled for 2021. Just three days later, SBC announced it would hold a Digital Summit across five days from 27 April – 1 May. Clarion soon followed suit with the announcement of a free digital version of ICE North America, as organisers hurried to offer participants an alternative to cancelled events.

Since then, SiGMA Group rescheduled its Asia events SiGMA Manila and AIBC Manila to 2021. ICE Asia was postponed until 2021. The Indian Gaming event was postponed until further notice. The IAGA International Gaming Summit, G2E Asia, ASEAN Gaming Summit, East Coast Gaming Conference, the OIGA Conference and Trade Show all cancelled or postponed.

Throughout all this, the big question was whether G2E would take place in Las Vegas in October. Along with ICE Totally Gaming in February (and to a lesser extent G2E Asia in Macau) it is one of the year’s flagship events. If you are only going to attend one, depending on your geographic focus, it would be one of these.

G2E is organised by the American Gaming Association and Reed Exhibitions. The event seemed so far away they were understandably reluctant to cancel it. However, as lockdown continued into its third month it became harder and harder to envisage a scenario where the industry could meet safely and within guidelines.

Las Vegas casinos reopened in June, but the organisers were still reluctant to commit to a physical event. So many questions remain unanswered. Would people travel to the event from the US or from overseas? Would executives be too busy trying to save their businesses?

Konami took the decision in May to withdraw from all trade shows until the end of the financial year and focus investment on its employees. Many will be feeling similarly, even if they will not say so publicly. One marketing exec confided that he hadn’t even thought about G2E, let alone ICE. Plans would normally be sorted for both by this time of year.

The only thing that the organisers of ICE and G2E were willing to admit was that neither event would look the same as normal. What else could they say? Their businesses are in danger as much as any of their exhibitors. [G2E has since confirmed that there will be no physical event in Las Vegas this year].

Events go digital

In the meantime, the digital events started to take place. On the surface, the numbers are impressive. The digital version of ICE North America is said to have attracted over 4,000 registrations from 558 companies, based in 85 countries around the world, and recorded over 7,000 visits to the site. The SBC Digital Summit in April claimed over 10,000 delegates. But were contacts made and were they meaningful?

Among the handful of attendees Gaming Intelligence surveyed there was respect for how quickly SBC got their event up and running. One attendee says he made a few leads but not the suitcase-full he would normally at a real-life conference. Business development chiefs have had a busy lockdown as operators focus intently on their online operations, but there are drawbacks to doing everything on Zoom.

“I believe in face-to-face contact, when you’re establishing a relationship,” says Continent 8 managing director Americas Nick Nally. “Once established, it’s easier to do a Zoom.”

“My area of business is new business,” says Red Tiger Gaming commercial director Chris Looney. “The best business comes from the best relationships, immersing yourself in the operator’s business.”

He cites a deal done with Swiss Casinos. He met the team that were going to launch the land-based casino group’s online operation, but it was not until visiting the land-based casinos and getting to know the core business that a deal could be struck.

“I don’t think you can replicate that relationship through Skype or Zoom,” says Looney. Looney and Nally both admit it is hard to measure return on investment from trade shows. Looney describes it as “the unanswerable question”. But suppliers will be looking in closer detail at the numbers – and particularly the number of shows they visit and the number of employees they send.

Playtech
A medium-sized stand at ICE would cost around £300,000, and then you have to consider other costs such as connectivity, plus transporting and accommodating 50 or 60 staff. That will cost another £100,000. For the bigger suppliers it will be a £1m+. At a time when staff are being furloughed or let go, that becomes harder to justify – as Konami recognises.

“Covid-19 will change the way we think about shows and the way shows are done. Sometimes it feels like there is a show every other week. It is an important channel for us. It’s still a good platform to launch products but do we need to go to so many?” asks another seasoned marketing professional.

“It is over-saturated,” says Playson business development manager Lars Kollind. “Every year I look at the iGaming calendar and have a hard time understanding why we need to go to all the events. It’s the same people attending.”

Successful emerging suppliers such as Big Time Gaming and Relax Gaming have thus far refrained from spending anything on splashy stands but that might change as they grow bigger.

Suppliers at an earlier stage in their development are even more loathe to spend money on smart stands. ReelPlay chief commercial officer David Johnson enjoyed a long career at Cryptologic and NextGen/NYX before launching ReelPlay. He has seen how companies grow and how they deal with trade shows, but the industry is changing.

The emergence of games aggregators means suppliers can get to know their customers better if they are closely aligned with the aggregators. For an aggregator like Relax it might make sense to bring all their supplier partners together on one stand. Microgaming and Playtech have done something similar – although they own the studios that they show off on their stands; they are not just partners.

“We haven’t typically done deals at trade shows. At this stage of our growth it’s more about enhancing the throughput of licensed content to known partners,” says Johnson. “We are very active all year round – visiting our operators in Malta, Gibraltar and the US largely, so our partners see us regularly and we aren’t reliant on trade shows.”

He goes on to say that certain shows do offer value. For example, the Latin American or Tribal Gaming contacts made at G2E would be very difficult for a European supplier to access from home.

Kollind says that ICE has always been a tremendous success and echoes Johnson’s thoughts on G2E, but the future of others must come into question.

Future plans

Everyone welcomes a break from travelling. Not only is it good for the planet, it has given everybody a chance to reflect, analyse and prioritise. And there are a lot of people doing their sums.

“We had already taken a group decision not to exhibit at every show this year,” says Looney. “We will have to look at the whole picture. Do we do it the same way? I’m not sure.”

The event organisers try and reassure us that although conferences will not be the same as previous years, every precaution is being taken to protect attendees. From hand sanitisers to a careful re-evaluation of layouts to allow for physical distancing and the provision of personal protective equipment. But how do you greet somebody at your stand if your smile is hidden by a mask and you are too scared to shake their hand?

If Covid-19 flips the world into recession it will affect every business, and gambling industry conferences will be no different. There will be casualties. G2E Las Vegas has been cancelled for this year but the question remains: will ICE take place? No one is willing to answer that question just yet.

The District of Columbia Office of Lottery and Gaming has issued sports betting licenses to William Hill, Sportradar and Scientific Games.

William Hill’s American Wagering Inc. has been awarded a provisional sports wagering Class A operator license, allowing it to operate a sportsbook at Washington DC’s Capitol One Arena, where the ceremonial first bet was placed Monday.

“Washington, D.C. is known for its dedicated sports fans, and we’re excited to finally bring them a new way to engage with their favorite teams. Being the first to open a retail location in a professional sports venue wouldn’t be possible without our relationship with Ted Leonsis and his team at Monumental,” said Joe Asher, CEO of William Hill US.

“Our teams are working hard to finalize the permanent sports book, restaurant and bar concept we originally envisioned inside the arena.”

Sportradar
The Office of Lottery and Gaming also issued provisional sports wagering supplier licenses Friday to Sportradar and Scientific Games subsidiary NYX Digital Gaming, allowing them to provide gaming related goods and services to licensed sportsbooks in the District.

Rhode Island’s regulated sports betting market generated total wagers of $200.2m in the 2020 fiscal year ended 30 June, despite the impact of COVID-19 over the past four months.

Total wagers climbed by 57 per cent compared to the previous fiscal year, which included eight months of results from the state’s first sportsbooks launched in November 2018.

Twin River contributed $120.1m in wagers, with Tiverton generating $30.3m and the IGT-powered Sportsbook Rhode Island mobile app contributing a further $49.8m.

RHODE ISLAND SPORTS BETTING: (US$)
Wagers Payouts Revenue
Twin River 120.1m 108.2m 11.9m
Tiverton 30.3m 27.3m 3.0m
Online/Mobile 49.8m 46.0m 3.8m
TOTAL 200.2m 181.5m 18.7m
A total of $181.5m was paid out in winnings during the year, generating total book revenue of $18.7m. This comprised $11.9m from Twin River, $3.0m from Tiverton and $3.8m from mobile.

With the state’s two casinos closed in mid-March due to COVID-19, sports betting wagers over the past four months totaled just $13.1m. The two venues reopened on 8 June with limited capacity, as per state guidelines.

Lawmakers in Massachusetts are making another attempt to legalise sports betting with a new bill introduced Friday.

The proposed legislation would allow the Massachusetts Gaming Commission to issue three types of operator license; Category 1 licenses for in-person and remote sports betting, Category 2 licenses for in-person sports wagering at a racetrack, and Category 3 licenses for remote-wagering only.

Operators would be allowed to offer bets on professional and collegiate sports and athletic events, motor racing, eSports, competitive video game events, and any other event authorized by the commission.

Sports bets would be broken down into Tier 1 and Tier 2 wagers, with Tier 1 applying to all bets that are solely determined by the outcome or final score of an event and placed before the start of the event. Tier 2 wagers apply to all other types of wagering such as in-play and require operators to use official league data to settle bets relating to US headquartered sports, with in-play wagering on collegiate sport or athletic events prohibited.

Operators must already be licensed in the state to be eligible for one of the three categories of license, with Category 1 licenses reserved for gaming licensees and Category 2 licenses for racing licensees. Category 3 licenses are reserved for fantasy sports operators who have been active in the state for at least one year prior to the enactment of the bill and are also licensed to offer sports betting in at least two jurisdictions in the United States.

The bill (H4879) sets a $50,000 initial license fee and $250,000 application fee, renewable every five years at a cost of $100,000.

Sportradar
Wagering would be available to players over the age of 21 and taxed at 15 per cent of an operator’s adjusted gross wagering receipts in the form of a privilege tax, with a further 1 per cent payable annually for sports wagering security and integrity.

All operators licensed to conduct sports wagering must employ a monitoring system, utilizing software to identify irregularities in volume or changes in odds that could signal suspicious activities and promptly report such information to the commission for further investigation.

The bill was introduced Friday and referred to the House Committee on Bills in the third reading.

The UK Gambling Commission (UKGC) has suspended the operating licence of multi-brand online casino operator Genesis Global with immediate effect.

The gambling regulator said Tuesday that it has commenced a review of Genesis Global’s licence under section 116 and section 118 of the Gambling Act 2005 due to a number of compliance issues.

“We suspect that Genesis Global Limited has breached a condition of the licence (section 116(2)(a) of the Act)) and is unsuitable to carry on the licensed activities (section 116(2)(c)(i)) of the Act),” said the UKGC. “We therefore consider it appropriate to suspend the licence with immediate effect pending the conclusion of the review.

“We have instructed the operator to facilitate customers accessing their accounts to withdraw funds and advise customers not to place any bets through the above websites.”

Sportradar
The licence suspension makes it illegal for Genesis Global to offer gambling services in the UK via brands including Casoola.com, Casinoplanet.com, Kassu.com, Casinocruise.com, Casinogods.com, Casinojoy.com, Genesiscasino.com, Pelaa.com, Sloty.com, Spela.com, Spinit.com and Vegashero.com.

Spain’s regulated online gaming market recorded a 12.5 per cent increase in first quarter gross gaming revenue, driven by strong performances across all products.

Gross gaming revenue (GGR) amounted to €217.97m in Q1 2020, with sports betting accounting for half of total market GGR at €110.62m, an increase of 8.65 per cent year-on-year.

Online casino gaming was the second largest vertical with GGR of €77.59m, up 16.76 per cent, followed by online poker at €24.4m and online bingo at €3.69m, representing growth of 13 per cent and 14.7 per cent respectively. A further €1.88m in GGR was derived from contests, an increase of almost 100 per cent compared to the first quarter of 2019.

Total marketing spend during the quarter increased by 28.3 per cent to €118.2m, with advertising amounting to €59.5m, promotions €42.4m, sponsorship of €6.0m and affiliate costs of €10.3m.

These marketing costs are expected to continue to rise ahead of the implementation of new regulations designed to combat problem gambling.

The new regulations, which were notified to the European Commission late last week for approval, aim to limit gambling broadcast advertising to the hours of 1am to 5am, with no exception for live sporting events.

They would prohibit naming rights to events and stadia and shirt sponsorship by licensed gambling operators, as well as prohibiting all advertising by unlicensed operators. Sign-up bonuses would be banned, as would the use of any celebrities in marketing communications, while free-to-play games would be available to registered, verified players.

The new rules also prohibit the unathorised use of another party’s brands and trademarks, including references to or games based on the draws or games of another operator, and online advertising would also be subject to numerous restrictions.

Operators would also be required to actively monitor and detect signs of problem gambling among customers and take remedial action.

The proposed regulations remain subject to approval by the European Commission under its emergency procedure, which was invoked due to the “the existence of serious and unforeseeable circumstances relating to the protection of public health and the protection of minors”.

This relates to the COVID-19 pandemic, which the Spanish government believes will increase the economic vulnerability of society due to the “extraordinary rise in unemployment” and, consequently, “a higher probability of gambling behaviour in an attempt to resolve economic problems”.

Gaming Intelligence

The UK Gambling Commission (UKGC) has published new data on the impact of the COVID-19 lockdown on gambling behaviour, revealing an overall decrease in active players accounts between April and May.

The latest data from the UKGC and YouGov COVID-19 Tracker reflects two months of full lockdown in April and May, and highlights an increase in sports betting, partly due to the return of top-flight football with the German Bundesliga resuming in May.

The YouGov online survey shows that the lockdown period did not attract many new customers to gambling, with only 0.4 per cent of adults surveyed stating that they had started gambling for the first time during the last four weeks.

This compares with 2.1 per cent of adults who stopped gambling altogether during this period. Neither of these figures are significantly different from the rates recorded in the early lockdown period.

Operator data on overall active player accounts indicates a 1.2 per cent decrease between April and May, with the number of active players down across each of the verticals, excluding sports betting, which increased by 13 per cent month-on-month.

According to the survey, gambling participation has remained relatively stable over the past four weeks, within a range of 28 to 32 per cent. Sports betting participation fell to 1 per cent in early May but had risen to 5 per cent by mid-June as a result of the return of more elite-level sport, including the Premier League. This offset a decline in virtual sports participation, which was down from 3 per cent at the start of the YouGov tracking to 1 per cent in the latest survey.

For the UK National Lottery, four-week participation in draw-based games fell from 26 per cent in mid-April to 22 per cent by mid-June, with lottery sales having now recovered and only slightly down on normal levels. The survey notes that this was also the result of a change in customer behaviour, with a significant move from retail to digital products.

There was a slight decrease in the proportion of active players who engaged in more than one gambling activity during May, down from 43 per cent to 40 per cent.

NetEnt
Only 1.6 per cent of respondents said they had gambled online on activities that they used to take part in on premises or in person. In addition, only 2 per cent of recent gamblers said they had signed up to one or more gambling websites during the period.

Online operator data shows that with the exception of sports betting, which rose 13 per cent from April to May, there has been a fall in the number of active players for each vertical. This includes a 5 per cent decline in slots, a 4 per cent drop in other gaming products (including casino), an 11 per cent decline in poker and a 48 per cent decrease in virtual sports.

Between April and May, gross gambling yield (GGY) increased across slots (9 per cent), other gaming (1 per cent) and sports betting (64 per cent), offsetting a 12 per cent decline in virtual sports and a 9 per cent drop in poker GGY.

“We have previously highlighted our concerns about slots, so will continue to monitor data about the risks they may pose to consumers during the lockdown period,” said the UKGC.

The YouGov survey also asked recent gamblers whether they had increased the time or money spent on individual gambling activities, with the majority (73 per cent) indicating that they had not done so.

Australia does not have one overarching statute or a single gambling authority that regulate gambling activities in Australia. Instead, gambling is regulated at state, territory and federal levels. Australia’s eight mainland territories and States regulate gambling activities separately within their respective jurisdictions. Moreover, there is a series of federal statutes that cover different aspects of gambling in Australia. The constitution in Australia grants the federal government the power to regulate and govern in the various states and territories. Such capabilities include enacting legislation to regulate interactive gambling, anti-money laundering, counter-terrorism financing, consumer and competition protection.

Reforms Under Consideration

Gambling reforms currently being considered at a federal government level include disruption measures, blocking of internet service providers and financial blocking. The implementation of any rules will be implemented progressively throughout states and territories in Australia. In January 2019, the federal government enacted legislation prohibiting corporate bookmakers from taking bets on the outcome of a lottery. In December 2019, state parliament in South Australia introduced legislation significantly reforming gambling regulations. Amendments planned for the regulations under the gambling acts include changes to the Advertising and Responsible Gambling Code of Practice, guidelines for a new gambling administration, and community impact assessment guidelines. Stakeholders are to be consulted regarding the proposed changes in late 2020 to commence the reforms as a finished package later in the year. In effect, state parliament already passed legislation in 2019 to significantly reform the regulation of gambling activities across South Australia.

The Gambling Administration Act 1995

The previous Gambling Administration Act of 1995 was repealed and replaced by a new administrative and regulatory framework under the new Act, the Gambling Administration Act of 2019. Regulations to support the new Gambling Act will be drafted shortly and is subject to a thorough analysis of the Advertising and Responsible Gambling Code of Practice. Prescription notices with Guidelines will be replaced. It deals with the implementation of online solutions to facilitate a multi-venue barring system with changes to the length of the barring period. The broad social responsibility requirements include all gambling licences issued by state or territory adopting stricter requirements concerning responsible gambling. Restrictions to gambling advertising include inducements to open a betting account, and some jurisdictions prohibit adverts encouraging gambling.

Proposed Amendments to Gambling Legislation at Federal Level

The Federal government has recently implemented amendments to the Interactive Gambling Act. Gambling advertising and odds promotion are to be restricted during live broadcasts and online streaming of sports events. There are more stringent restrictions in place between 5.00 am to 8.30 pm. In late 2018, all Australian state and territory gaming ministers came together to agree on a National Consumer Protection Framework for online betting. It is in the process of being progressively implemented. The primary objective is to have a nationally consistent approach to minimising potentially harmful measures. They include prohibiting inducements like first deposit bonuses offered to prospective customers to open an online betting account. There is a mandatory opt-out of pre-commitments and a self-exclusion national register.

Run Down of Gambling Regulatory Bodies in Australia

Let’s take a look at the relevant regulatory bodies in Australia with a brief description of how they operate and regulate gambling. Interactive online gambling is under the wing of ACMA. The body is responsible for regulating media and communications throughout Australia. That includes the monitoring and enforcement of gambling regulations. ACMA also monitors compliance and enforces online gambling conditions. Federal interactive gambling laws prohibit activities like online slots, instant lotteries, casinos and poker. It regulates all forms of online betting services that provide in-play betting on live sporting events.

Australian Communications and Media Authority

ACMA has the power to instigate civil proceedings, notify border protection agencies of directors and principals who operate illegal offshore betting sites. They may be placed on a movement alert list that disrupts travel to Australia. It also liaises with foreign agencies and regulators to stop the offenders.

Australian Transaction Report and Analysis Centre

The Australian Transaction Report and Analysis Centre is responsible for regulating money laundering activities and the finance of terrorism. The Anti-Money Laundering, Counter-Terrorism Financing Act of 2006 requires specific gambling activities classified as designated services to maintain a compliant program and report suspicious transactions. They include threshold transaction reports and suspicious matter reports. If an operator fails to comply with regulations and does not maintain a compliant program or file reports late, civil penalties are imposed, and criminal proceedings started.

Australian Consumer and Competition Commission

The Australian Consumer and Competition Commission is responsible for enforcing Australian consumer protection laws under the Competition and Consumer Act of 2010. With regards to gambling, ACCC monitors compliance by providers or online gambling services and their obligations, including gambling advertising. It is empowered to take the appropriate enforcement action wherever it deems that necessary.

Regulatory Licences and Permits

Operators require a license to offer casino table games, slot machines, lotteries, keno and retail wagering. Permits are typically long-dated and granted by the relevant state or territory. Bookmakers providing sports betting and racing with fixed-odds as well as phone betting require a corporate bookmakers Licence. Australian corporate bookmakers are mostly licensed in the Northern Territories. Land-based casinos, gambling parlours, hotels and clubs require both a gaming venue and a permit for every gaming machine on the premises. Gambling machines in West Australia can only be offered at a casino, while bingo can be conducted for charitable fundraising purposes by a community or non-profit organisation.

Round-Up

Nevertheless, a state or territory license is required to operate bingo centres in relevant jurisdictions. Any kind is social gaming without cash prizes does not require a permit since it isn’t classified as gambling under federal, territory or state laws. Skill games without an element of chance are not considered gambling; therefore, no license is required. If operated online, skill games fall within the interactive gaming regimes that are regulated by each state and territory. Online gambling is growing at approximately 15% annually, registering the fastest growth in its sector and showing no signs of abating.