Latest Gambling News: BlueBet Exits U.S. To Focus On Australia, and more

Catch up on six of the stories our gambling compliance analysts have covered lately, and stay up-to-date on the latest news.

BlueBet Exits U.S. To Focus On Australia

BlueBet Holdings confirmed Thursday (August 29) it will exit the U.S. to focus on its core Australian market, following a merger with Betr in April.

After the company agreed to acquire Betr’s wagering business, BlueBet conducted a strategic a strategic review of its U.S. operations. The decision comes about a month after BlueBet terminated its market access deal with Horseshoe Hammond Casino in Indiana.

Plans to launch in Iowa, Colorado, and Louisiana have also been terminated. BlueBet, which operated its ClutchBet brand in the U.S., stated objective now is to exceed 10 percent market share in Australia.

“The decision to exit the U.S. comes as slower than expected regulation has hampered total market growth and hindered interest in the company’s B2B SaaS platform, which BlueBet viewed as a significant opportunity,” the company said in a statement.

“Further, the industry dynamics in the U.S. B2C market are such that scale players are currently dominant with smaller operators unable to achieve the necessary unit economics – driving a recent wave of consolidation and exits, which is likely to continue into” fiscal year 2025.

The statement continued: “Importantly, the company maintains ownership of its highly scalable, proprietary international sportsbook technology and will continue to pursue further monetization of its technology assets in the U.S. and internationally."

DraftKings Acquires Microbetting Provider Simplebet

DraftKings has reached an agreement to acquire microbetting technology company Simplebet Inc. and intends to incorporate their proprietary live betting offering into its existing technology platform.

The merger has been approved by the boards of directors of DraftKings and Simplebet. DraftKings already held a 15 percent stake in Simplebet through an agreement that enabled the operator to offer real money micro-betting

Terms of the deal were not disclosed but JMP Securities analyst Jordan Bender estimated the deal cost at $195m with an upfront payment of $70m. Bender believed the terms were favorable “with an upfront payment for the technology and earnouts for up to $125m … if the company meets the criteria.”

“Live betting represents an area for potential growth for online sports betting, and the proposed acquisition would allow DraftKings to leverage Simplebet’s proprietary technology to create an in-play wagering experience that moves at the speed of sports,” Corey Gottlieb, DraftKings chief product officer, said in a statement Wednesday (August 28).

Founded in 2018, Simplebet has created a niche product that allows gamblers to bet within milliseconds for individual events, or plays, such as the next pitch of a baseball game.

In a research note on Thursday (August 29), Bender wrote that in-paly betting ranges from 20 to 35 percent of handle in the U.S. depending on the sport, with micro-betting a small portion within that range.

“That said, DraftKings balance sheet will help grow Simplebet beyond its current capabilities.”

Irish Bank Adds Gambling Block

One of the "big four" commercial banks in the Republic of Ireland, Allied Irish Banks, has introduced gambling payment blocking.

Its customers can now voluntarily block credit and debit card transactions to gambling companies, the bank said in a press release.

“The financial services industry has a role to play in supporting customers as they combat any gambling difficulties they may have, and it’s important AIB does what we can to help them stop the harm. That is why we are putting in place additional supports for customers who wish to take steps to protect themselves from problem gambling," said Geraldine Casey, AIB's managing retail director.

Brazilian Football Confederation Wants Betting Revenue From Clubs

The Brazilian Football Confederation (CBF) has said it may change the rules of its leagues to make clubs pay some of their revenue from bookmakers to the CBF to help combat match-fixing.

The CBF originally tried to claim 5 percent of gross gaming revenue of football bets back when the details of what is now Law 14790 were being hammered out, but were unsuccessful in that attempt.

This latest proposal will, by the CBF’s estimate, generate R$82m (US$15m).

According to Brazilian paper of record Folha de S. Paulo, football clubs are vehemently against the proposed change, as they say that fighting match-fixing within the league is the responsibility of the CBF.

Match-fixing has been a buzzword since a scandal was uncovered in the state of Goiás in February 2023 and its impacts were traced all the way to the upper echelons of football, including England’s Premier League. There have been two congressional investigations since.

When Law 14970 was being debated, multiple parties vied for a small cut of revenues. This includes former football legend turned Senator, Romario, who wanted 0.5 percent for the Ministry of Equality (MIR) to help combat racism.

In the end, all were denied.

Penn Targets Skill Games In License Renewal Hearing

Tony Frabbiele, vice president and general manager of Hollywood Casino at Penn National Race Course, told regulators Wednesday (August 28) during a license renewal hearing that the continued growth of skill games in Pennsylvania continues to put pressure on the slot side of the business.

The Pennsylvania Gaming Control Board (PGCB) last week approved the casino’s request to remove 169 slot machines from the casino floor, to take the current count down to 1,532.

“We do not see growth from the additions to our brick and mortar casino,” Frabbiele said. “So why is that? When we look at what else could be putting pressure on gambling, we go to skill games.”

According to Penn, a recent search within a ten miles radius of Hollywood Casino found 77 locations with more than 325 skill games, including several so-called skill game parlors each with more than ten games.

“It continues to grow, and we don’t know how much it is growing,” Frabbiele told the control board.

The Pennsylvania General Assembly is expected to debate the issue of skill games later this year or early 2025.

The PGCB did not issue a decision on whether to renew Hollywood Casino’s Category One slot license but will refer its findings back to the full control board, who will make a licensing decision at a later meeting.

Americans Embrace Sports Betting, Casinos

Americans are increasingly embracing casino gaming and sports betting as acceptable forms of entertainment and responsible industries, according to a report released Wednesday (August 28) by the American Gaming Association (AGA).

The report found that 75 percent of Americans believe the gaming industry behaves responsibly in the communities where it operates, and nine in ten Americans view sports betting as an acceptable form of entertainment. The AGA’s survey also states that 75 percent of Americans support legal sports betting in their home state.

"These latest survey results highlight a consistent trend over the years: as gaming expands to new audiences, Americans increasingly see the benefits of a legal, regulated gaming marketplace that contributes to communities, prioritizes responsibility and provides unmatched entertainment,” AGA spokesman Joe Maloney said in a statement.

The study reveals particular increases in favorable views toward the industry’s commitments to responsible gaming, with 65 percent of those surveyed now saying the gaming industry is committed to encouraging responsible gaming and combating problem gambling, a notable rise from 55 percent last year.

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