Latest Gambling News: MGM Confirms Brazil JV With Globo, 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.

MGM Confirms Brazil JV With Globo

MGM Resorts International will launch a BetMGM-branded sports betting and online gaming operation in Brazil through a joint venture with major Brazilian media conglomerate Grupo Globo, according to an announcement made by the company on Thursday (August 15).

The announcement confirmed earlier reports of the partnership in Brazilian media and follows an acknowledgement by MGM CEO Bill Hornbuckle that his company was in negotiations with a potential joint-venture partner for online gambling in Latin America.

MGM and Globo will apply for a Brazilian license for BetMGM via their Sao Paulo-headquartered venture and intend to launch in early 2025, the companies said.

Brazil’s Ministry of Finance is presently accepting applications for federal licenses for iGaming and sports betting, with an August 20 deadline looming for any companies that wish to be part of a first wave of approved operators to go live at the start of next year.

BetMGM was not among the 26 operators that had applied for a license as of Thursday afternoon. Major international operators that have applied include bet365, Flutter and MGM’s US-facing BetMGM joint-venture partner Entain.

MGM’s chief US casino rival also will be active in the Brazilian market via a local operator, Big Brazil Tecnologia, that has acquired the brand rights to deploy Caesars Sportsbook in Brazil.

U.S. Gaming Revenue Growth Reaches 14th Straight Quarter

U.S. commercial gaming revenue reached $17.63bn in the second quarter marking the 14th consecutive quarter of annual revenue growth, according to the American Gaming Association’s (AGA) Commercial Gaming Revenue Tracker released Thursday (August 15).

The report also found commercial gaming contributed $3.73bn in state taxes in the second quarter.

Traditional brick-and-mortar casinos generated quarterly revenue of $12.49bn, a 1.8 percent gain year-over-year, while Americans waged $31.75bn on sports in the second quarter, generating $3.16bn in revenue.

That 35.3 percent year-over-year growth in sports betting was bolstered by new market launches in Kentucky, Maine, North Carolina and Vermont. The AGA found iGaming grossed $1.97bn in the second quarter, a 24.2 percent year-over-year increase by a slight 0.1 percent declined from the first quarter.

“While sports betting and iGaming continued to drive overall industry revenue growth in the second quarter, new brick-and-mortar property openings in Illinois, Nebraska and Virginia also led to rising traditional commercial gaming revenue,” said David Forman, AGA vice president of research.

“Across the country, land-based gaming markets are seeing mixed year-over-year comparisons due to slower consumer spending economy-wide, which may continue to be a factor through the remainder of 2024,” Forman said.

Playtech In Talks With Flutter To Sell Snaitech For Around £2bn

Playtech has confirmed that it is in discussions with Flutter Entertainment over the potential sale of its Italian-facing Snaitech business for about £2bn.

The Isle of Man-based supplier said in an update on August 14 that it has granted Flutter a “period of exclusivity to complete due diligence and finalise the necessary Transaction documentation. There can be no certainty that any Transaction regarding the potential sale of the Snaitech business will ultimately be agreed, or as to its terms. Further announcements will be made as and when appropriate.”

The latest online market share data from Italy indicates that the acquisition of Snaitech would elevate Flutter alongside current market leader Lottomatica Group at the top of the Italian online gambling market at a corporate level. Flutter's existing Italian-facing brands Sisal, PokerStars and Betfair held a combined market share of 20.1 percent in the first half of 2024, which rises to 29.5 percent on a theoretical pro forma basis when adding SNAI's 9.4 percent share.

DraftKings Emails Customers About Golf Bets Not Placed

DraftKings early Wednesday (August 14) sent emails to customers and former customers updating them on golf bets that were never placed.

The email provided an update on “two or more golfers tied for the same winning position,” and said that DraftKings had settled the wagers using Dead Heat Reduction rules.

DraftKings’ Dead Heat Reduction is calculated by dividing the odds proportionally among the number of winners for a particular position, according to rules posted on its website. The payout is less than what the customer would have won if only one golfer had won.

The DraftKings email informed gamblers that they were being gifted a bonus bet as a “one-time courtesy.”

DraftKings did not send a follow-up email telling customers to regard the update but instead posted a message on social media stating: “You may have received an email regarding this past weekend’s golf tournament and the ‘Dead Heat’ rule that was inadvertently sent more broadly than intended. Please disregard that email.”

Brazil Judge Agrees To Rio Reversal On ISP-Blocking

A federal judge in Brasilia has suspended his earlier ruling obliging Brazilian ISPs to block local access to betting sites that are not licensed by the state of Rio de Janeiro.

The initial June order of Judge Pablo Zuniga Dourado had recently caused the primary web domains of major Brazilian betting brands to be taken offline, not just for users in Rio but also in various other Brazilian states, as major ISPs advised that they were unable to comply with such a blocking order on a state-specific basis.

In a decision published on Monday (August 12), the judge reversed an earlier decision denying industry association ANJL the right to participate in the case and acknowledged that the original blocking order contradicted specific federal regulations that provide for a transitional period through to December 31 for offshore operators to gain a national licence in Brazil.

The initial court order was obtained through a legal challenge filed by Rio lottery authority LOTERJ, which also licenses and regulates online betting platforms in the state of Rio de Janeiro. LOTERJ intends to appeal the ruling, according to the Brazilian industry publication BNLData.

D.C. Investigating Intralot Over Sports Betting

D.C. Attorney General Brian Schwalb has ordered Intralot to turn over documents as part of an unspecified ongoing investigation, according to the Washington City Paper.

The attorney general’s office filed the court documents on July 22, but they are under seal, as are any documents Intralot submits. Intralot, which used to operate Gambet DC, in July received a one-year extension worth $39m to be the D.C. Lottery’s contractor.

A spokeswoman for the attorney general told Vixio GamblingCompliance in an email Monday (August 12) that as a “general practice, we do not confirm, deny, or comment on investigative activity.” Intralot executives were unavailable for comment.

Schwalb’s investigation is reportedly focused on Intralot’s business practices and its compliance with laws in the District of Columbia. Intralot launched Gambet DC in March 2020 but after several underperforming years, the D.C. Lottery made the switch to FanDuel.

The future of the D.C Lottery offering sports betting is in doubt after FanDuel abandoned its partnership with Intralot once the D.C. City Council opened the market.

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