This week’s State of the Union, in partnership with Segev LLP, covers major news involving DraftKings – both its acquisition of Golden Nugget Online Gaming and its announcement that it had received a subpoena from the Securities and Exchange Commission (SEC) oncerning allegations made by a report from short-sellers Hindenburg Research – as well as the bidders for mobile sports betting in New York.
DraftKings subpoenaed by SEC over Hindenburg allegations
US sportsbook giant DraftKings has revealed it received a subpoena from the US Securities and Exchange Commission (SEC) concerning allegations made by a report from short-sellers Hindenburg Research.
DraftKings said it received the subpoena on 9 July, soon after the report was published.
New York mobile betting license bidders revealed
The New York State Gaming Commission has revealed which operators have submitted proposals for mobile betting licenses within the state, with FanDuel, Kambi, Bet365, Fox Bet and theScore all in the mix.
Under New York’s mobile betting rules, the state must select two platform providers, which together must offer at least four skins. Players, however, may only have one account per platform provider.
Florida sports betting compact approved by Department of the Interior
A compact agreement that would allow sports betting in Florida through the Seminole Tribe – including statewide mobile sports betting – has been approved by the federal Department of the Interior.
In becoming law, the compact would allow sports betting exclusively through the Tribe online and in its class III gaming facilities.
DraftKings to acquire GNOG in $1.56bn deal
DraftKings has agreed to acquire 100% of Golden Nugget Online Gaming (GNOG) from Fertitta Entertainment, Inc in a $1.56bn all-stock deal that will see Tilman Fertitta join the DraftKings board.
DraftKings will pay 0.365 newly issued shares for each common share of Golden Nugget Online Gaming.
FanDuel retains top spot as Iowa betting revenue and handle climb
The Iowa Racing and Gaming Commission reported a year-on-year increase in sports betting revenue and handle in the US state in July, with FanDuel partner Diamond Jo Casino in Dubuque retaining top spot in the market.
Total market revenue for the month amounted to $7.1m, up 222.7% from $2.2m in July last year, but 15.5% lower than $8.4m in June this year.
Illinois sports betting handle continues to fall in June, but revenue grows
The Illinois Gaming Board has reported a continued drop in sports betting handle for the third consecutive month in June, while revenue grew.
Handle came to $476.5m in June, a month-on-month decline of 6.0% compared to May. Almost all of this- $474.5m- was generated from professional sports, with both college football and basketball in their offseasons.
US Q2 commercial gaming revenue reaches record $13.64bn
The American Gaming Association (AGA) has reported that US commercial gaming revenue reached a record high of $13.64bn (£9.8bn/€11.6bn) in Q2 2021, according to its commercial gaming revenue tracker.
The previous record was set in Q3 2019, which generated $11.1bn, a figure that was then matched in Q1 2021. The new record is an increase of 22.5% from that previous high.
Full House returns to profit in H1 as revenue rockets 97.6%
US land-based casino operator Full House Resorts returned to profit in the first half of its 2021 financial year after a 97.6% year-on-year increase in revenue led to a net profit of $2.0m.
Revenue for the six months to June 30 amounted to $89.7m, up from $45.4m in the same period last year, though Full House’s performance in the first half of 2020 was significantly impacted by the novel coronavirus (Covid-19) pandemic.
DraftKings raises revenue guidance again but H1 losses grow to $650m
DraftKings increased its revenue guidance again after recording half-year revenue of $609.8m, up 282.3% from 2020, though losses also continued to grow as operating expenses exceeded $1.00bn.
Of the operator’s $609.8m in revenue, $530.9m came from its own gaming operations, up 281.7%. The operator said this increase was due to “strong customer acquisition and retention, the successful launches of our Sportsbook and igaming product offerings in additional states since the second quarter of 2020, and a more favorable sports schedule compared to the six months ended June 30, 2020, which was more substantially impacted by Covid-19.”
MGM Growth Properties sees Q2 profit edge up ahead of VICI acquisition
MGM Growth Properties (MGP), the real estate investment trust spun off from MGM Resorts International, reported a 7.1% year-on-year rise in net profit for the second quarter of its 2021 financial year, ahead of its anticipated acquisition by VICI Properties.
Total revenue for the three months through to June 30 amounted to $194.3m, which was level with the same period in 2020. Rental revenue remained flat at $188.3m, as did ground lease revenue at $6.0m.
New Jersey becomes first state to legalize fixed-odds betting as Governor signs bill
New Jersey has become the first US state to legalize fixed-odds horse racing betting after its Governor Phil Murphy signed a new bill into law.
Widely known as the Fixed-Odds Wagering Act, the legislation will allow customers to place fixed-odds horse racing bets through official license-holders, rather than only pari-mutuel bets.
Illinois sets December deadline for online-only sports betting licenses
The Illinois Gaming Board has set a deadline of December 3 this year for applications for three additional online-only sports betting operator licenses in the US state.
The licenses will be available to operators that do not currently hold a license in the state or only have a temporary operating permit.
Rivers Casino hit with $7,500 fine in Pennsylvania
The Pennsylvania Gaming Control Board (PGCB) has approved a consent agreement between its Office of Enforcement Counsel and Sugarhouse HSP Gaming, operator of Rivers Casino Philadelphia, resulting in a $7,500 fine for the operator.
The fine relates to a violation of approved internal controls, in which a member of the gaming floor personnel at the casino duplicated surveillance footage onto his cell phone in an attempt to settle a patron dispute.
Oregon lottery sports betting revenue dips month-on-month in July
Oregon experienced a month-on-month dip in sports betting revenue for the month of July, having previously been on the increase in recent months.
Gross gaming revenue figures were $2.2m during July for the state’s DraftKings-powered Scoreboard product, which represents a 21% decrease on the previous month but a 37.5% increase from July 2020.
PointsBet appoints Aonghus Mulvihill as sportsbook trading VP
Online gaming operator PointsBet has announced the appointment of Aonghus Mulvihill as its new vice president of global sportsbook trading.
Mulvihill has 15 years of experience in international sports betting, having previously held the roles of director of corporate strategy at Flutter Group and head of performance, proposition and trading at Betfair Exchange.
Global Gaming Women names Boyd’s Stratford as new president
Global Gaming Women (GGW), an industry group that focuses on the development of women in the gambling sector, has appointed Cassie Stratford of Boyd Gaming as its new president.
Stratford, who is currently vice president of legal affairs and assistant general counsel for Boyd, officially began her term last month.
WynnBet appoints Shaquille O’Neal as brand ambassador and advisor
Mobile sports betting app WynnBet – from operator Wynn Resorts – has announced that it will partner with basketball legend Shaquille O’Neal, appointing him as the app’s new brand ambassador.
As part of the partnership, O’Neal will take on a strategic consultancy role within WynnBet.
Scientific Games reports Q2 growth and “great progress” with divestitures
Scientific Games reported a revenue of $880m (£664.0m/€748.0m) in its half-year 2021 results, a revenue rise of 63.2% year-on-year, as it plans to divest its lottery and sports betting arms.
Revenue came to $880m (£634.2m/€748.1), a significant increase compared to its revenue of $539m in Q2 2020.
BetMGM to enter Arizona via Gila River and Cardinals partnerships
Entain and MGM Resorts International joint venture, BetMGM, is set to enter the state of Arizona through new partnerships with Gila River Hotels & Casinos and NFL team the Arizona Cardinals.
The partnerships will allow BetMGM to operate retail and online sports betting in the state.
Bally’s sees profit soar during Q2 ahead of Gamesys deal
Bally’s Corporation recorded net profit of $68.9m for the second quarter of 2021, marking a significant increase when compared to the same period last year.
The figure is an increase of $92.5m from 2020, when the operator made a loss of $23.6m amid venue closures because of the novel coronavirus (Covid-19) pandemic.
Rush Street Interactive invests in developer Boom Entertainment
Online casino and sports betting operator Rush Street Interactive (RSI) has made a minority investment in game developer and technology provider Boom Entertainment.
Financial terms of the deal were not disclosed, but it was confirmed that the arrangement included a commercial agreement whereby Boom will integrate its remote gaming server and license online casino and sports betting games for RSI to make available to its real-money and social casino players via RSI’s proprietary online gaming platform.
NBC Sports establishes new division for dedicated betting focus
NBC Sports has established a new division to streamline its development efforts in betting, gaming and a number of other areas.
Overseen by NBC Sports’ Digital & Consumer Businesses, the new NBC Sports Next division will focus on digital applications in sports and technology, covering betting, gaming and emerging media, as well as youth and recreational sports and golf.
Mohegan sees Q3 revenue increase by 206.1%
Mohegan Gaming and Entertainment has reported a revenue increase of 206.1% year-on-year in its results for the third quarter of 2021, ended 30 June.
Net revenue for the quarter totaled at $328.1m (£237.1m/280.1m), substantially more than the $107.1m in revenue posted in its Q3 2020 results, which were affected by the novel coronavirus (Covid-19) pandemic.