Latest Gambling News: Flutter Acquires $350m Stake In Brazilian NSX Group, 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.

Flutter Acquires $350m Stake In Brazilian NSX Group

Flutter has announced the creation of its new “Flutter Brazil” business with the acquisition of an initial 56 percent stake in the NSX Group, the Brazilian online operator of the Betnacional brand, for cash consideration of approximately $350m.

The deal aligns with Flutter’s strategy to invest in market-leading brands in new markets, with NSX being among the four largest operators in Brazil, and is expected to generate revenue of approximately $256m and adjusted EBITDA of approximately $34m in 2024, according to Flutter’s press release on September 13.

Peter Jackson, the CEO of Flutter, said: “We believe that combining the extensive local expertise of the NSX team, our existing Betfair business and the power of the Flutter Edge, will create a compelling opportunity to capitalize on the growth opportunity in Brazil which presents an exciting runway of future growth."

Flutter said the acquisition will create shareholder value by delivering an enhanced competitive position in a fast-growing, newly regulated market, enhancing its local brand portfolio and “presents a compelling opportunity to drive synergies via access to the Flutter Edge, and deliver meaningful value creation”, according to the press release.

Flutter can increase its shareholding through reciprocal put/call arrangements in year five and year ten following the completion date.

UK Gambling Commission Annual Report Praises Improving Compliance Of Larger Operators

There was a “significant” increase in the number of larger operators being compliant at the point of their assessment by the UK Gambling Commission, according to the regulator’s 2023 annual report published on September 11.

The reports forward, signed by Gambling Commission CEO Andrew Rhodes and chair Marcus Boyle, states: “The rate of operators achieving compliant first-time outcomes in our assessments more than doubled and the compliance rate of the largest operators has almost trebled in the past 2 years.”

In 2023, the Gambling Commission collected £7.16m in fines and £6.24m in regulatory settlements, compared with £20.9m in fines and £39.2m in regulatory settlements in 2022.

“These are positive indicators of the work that the Commission has been doing to raise standards of compliance with our rules and on the part of operators as well. Alongside this we have made a significant impact tackling illegal online gambling, through our upstream work with third parties in finance, payment services and internet service providers,” the forward states.

Colombian Will Drop VAT Tax, For Now

The Colombian Congress' proposed Value Added Tax of 19 percent on online gambling and other services will not become law, according to well-placed sources.

The much-protested tax was never formalised but was discussed in various congressional budget committees at the beginning of the month as a part of President Gustavo Petro’s tax-reform plan.

A source who wished to remain anonymous told Vixio GamblingCompliance that “congressmen are not going to support the tax reform”, which extends beyond online gaming to other online businesses like Airbnb.

However, Congress believes that online gambling should be taxed, but potentially on a presumptive basis.

Operators in the country currently pay a headline tax of 15 percent and additional fees that add up to an effective tax rate of about 20 percent.

Nevada Grants Preliminary Approval Of Sega Sammy, GAN Merger

The Nevada Gaming Control Board (NGCB) granted preliminary approval Wednesday (September 11) to the proposed merger of sports-betting technology provider GAN Ltd with Sega Sammy Creation, a wholly-owned subsidiary of Sega Sammy Holdings.

Naoki Kameda, president of Sega Sammy Creation, told the NGCB the company has $500m to $700m in cash to invest, and could be used to improve GAN or look for a new opportunity.

“We are a very cash rich company and are ready to support GAN’s business,” Kameda said.

The Nevada Gaming Commission (NGC) will consider granting final approval of the deal at its meeting later this month. The deal still needs to be approved by gaming regulators in several states.

Upon completion of the merger, GAN will cease to be a publicly traded company, and its shares will be delisted from the NASDAQ allowing it to be owned by Sega Sammy Holdings. The deal, which was announced in November 2023, valued GAN at $107.6m.

The deal was expected to close in the fourth quarter or by early 2025.

Missouri Group Launches Anti-Sports Betting Campaign

A new group, Missourians Against the Deceptive Online Gambling Amendment, has launched a campaign to oppose Amendment 2, a proposed constitutional amendment that would legalize sports betting in Missouri.

Amendment 2 will be on the November 5 ballot. Brooke Foster, a campaign spokeswoman, said the initiative was a “bad deal for Missouri.”

Foster also targeted DraftKings and FanDuel for their financial support of the initiative. So far, both companies have contributed more than $10m to bring the sports-betting measure to the ballot.

Additionally, the initiative received support from the Kansas City Chiefs, of the National Football League, Major League Baseball’s Kansas City Royals and St. Louis Cardinals, and St. Louis Blues of the National Hockey League.

“This deceptive measure was written by and for the financial benefit of its out-of-state corporate sponsors and funders,” Fister said. “But Amendment 2 provides no guarantee that any funds will actually be provided to the state.”  

The measure sets the sports-betting tax rate at 10 percent and includes deductions for promotional play of up to 25 percent of the operator’s total cash received for a month and federal excise tax. Missouri’s four professional sports franchises, along with 12 casinos, could also operate retail and online sports betting.

Amendment 2 also would make two online betting platforms eligible to receive a license.

Caesars Expands D.C. Sports-Betting Footprint

Caesars Entertainment continues to expand its operations in the District of Columbia, with the acquisition of 53 locations that will host Caesars Sportsbooks, the company confirmed Tuesday (September 10)

The Caesars Sportsbooks wagering kiosks will replace the GambetDC kiosks currently in place at Office of Lottery and Gaming licensed retail locations. In addition to wagering, the kiosks will accept cash deposits to Caesars Sportsbook mobile accounts.

In July, Caesars launched its mobile sportsbook throughout Washington, D.C., except for federal lands, which are restricted areas. Previously, the Las Vegas-based gaming company opened the district’s first retail sports book in 2021 at Capital One Arena.

MGM Resorts International also operates retail sports book until its BetMGM brand at Nationals Park, which is home to Major League Baseball’s Washington Nationals, and FanDuel offers retail wagering at Audi Field home of DC United of Major League Soccer.

BetMGM, FanDuel and DraftKings also operate district-wide mobile betting after the DC Council relaxed restrictions allowing companies full mobile access if they partnered with one of the city’s professional sports franchises.

The Sports Wagering Amendment Act of 2024, passed by the DC Council earlier this year, also led to the elimination of the D.C. Lottery’s GambetDC, which was plagued with technical issues since its launch in May 2020.

‍

Want to know more?

‍Request a demo with one of our experts today to gain full access to the stories we cover - and much more - and start learning how you can make compliance a competitive advantage for your organisation.