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Kahnawake-based Morris Mohawk Gaming Group named in KY class action

A new class action suit in Kentucky could create issues for online gambling site Bovada and a group of people the plaintiff believe to be affiliated with the site.

Bovada’s alleged parent company, MMGG and its CEO and founder, Quebecer and Olympian Alwyn Morris have been named in the case. The lawsuit also names Bodog founder Calvin Ayre and the Curaçao-based Harp Media BV.

In the case, Kentucky resident Billi Jo Woods accused Bovada of illegally catering to US customers.

“Bovada has evaded the laws of Kentucky and other states. Bovada has advertised and presented itself to consumers in Kentucky as a legitimate online business. But this is false. In fact, Bovada is an illegal enterprise. Bovada’s online presence and advertising provided an aura of legitimacy and legality to Plaintiff and class members,” the complaint read.

In the complaint, Woods claims that Bodog lists Bovada as a sister site in its network and encourages those in Kentucky visiting Bodog.com to check out Bovada instead.

In 2012, Bodog was the subject of a federal indictment involving a quartet of Canadians, including Ayre. The case eventually concluded in 2017 with Ayre pleading to one misdemeanor count.

When Bodog left the US market in 2011, a press release noted that the Morris Mohawk Gaming Group would operate as Bovada in the US going forward.

Woods also asserts that MMGG currently owns Bovada. While MMGG has previously owned the Bovada, the current Bovada website lists Harp Media as its owner and operator.

Moreover, Morris says on his website that he sold MMGG and Bovada in 2017 and has not been involved in the organization since.

Bovada does not operate in Ontario but does cater to customers in other Canadian provinces as part of the grey market.

The lawsuit invokes a Kentucky gambling law that has been on the books for over 200 years that allows those who have lost money gambling to recoup those losses from those operating the gambling entity.

The state of Kentucky successfully used the law to sue PokerStars, resulting in the online poker state paying the state $300 million, though it did take the better part of a decade for the suit to reach a conclusion.

FansUnite eyes new North American markets amid ‘significant’ YoY revenue increase in Q2

FansUnite has expressed excitement over its financial results in Q2 while outlining a desire to support its growth with expansion into more North American markets.

The Vancouver-based betting and gaming firm reported total revenue of $5.3m between Apr. 1 – June. 30, an increase of 14% over Q2 FY2022, as well as gross margin of $3.3m (62%), up 70% compared to $2m (41%) during the same period last year.

Furthermore, EBITDA of $4.3m represented an increase of $15.3m YoY (Q2 FY2022: $11.1m).

“We are excited to announce a significant increase in revenue and gross margins during the second quarter of Fiscal 2023,” said Scott Burton, CEO of FansUnite.

“During the quarter, we saw a 14% increase in revenues year-over-year while our overall gross margins exceeded 60% due to our focus on higher margin operations.

“This renewed focus allowed us to record an EBITDA of $4.3m during the quarter which was up from a loss of $11.1m during the same quarter last year.”

The second quarter of 2023 was also significant as the firm sold both its Chameleon igaming platform and McBookie, the Scotland-focused sportsbook and online casino.

FansUnite cited the tightening of regulations in the UK as a leading factor in its decision to sell McBookie while the sale of Chameleon to Betr was heralded as a ‘transformational transaction’ for the company.

Both sales also open up further opportunities in other areas, according to Burton.

He added: “Following the sale of McBookie and the Chameleon igaming platform, we will focus more on growing business segments that produce significant cash flow.

“We intend to achieve this goal by scaling our affiliate business segment, led by Betting Hero, which has generated substantial revenue and high gross margins as well as identifying more opportunities to improve our operational and financial efficiency.”

FansUnite is also looking to enter new North American markets once legislation is in place to regulate sports betting and igaming in those markets.

Additionally, the firm plans to grow Betting Hero’s additional revenue streams, namely Betting Hero Hotline and Betting Hero Research.

Real Luck Group draws up new investment plans after private placement fails

Real Luck Group has been forced to abandon its proposed private placement after experiencing a ‘very difficult fundraising environment’.

The Calgary-based company, owner of the esports and sports betting platform Luckbox, announced last month a private placement of up to 60,000,000 units, at a price of $0.04 per unit, for gross proceeds of up to $2.4m.

Real Luck Group intended to use the net proceeds of the offering for corporate development, facilities expansion, technology advancement and general working capital.

However, in its latest operational and corporate update, the firm confirmed the private placement has failed.

Thomas Rosander, Real Luck Group CEO, said: “We have continued to demonstrate operational improvements into Q3 2023 and have made significant optimizations and reductions in our operational costs.

“While we are pleased with our business results, which have grown at a faster pace than we initially expected, our recently announced capital raise was unsuccessful in raising a satisfactory amount of capital in a timely manner.

“This has led us to pursue alternative options to strengthen our balance sheet and enable us to deliver our targets this year.”

Real Luck Group’s update added that there has been ‘significant’ interest from industry investors in both its B2C platform and wholly-owned B2B micro-betting product.

However, the firm also stated that there can be ‘no assurance’ that this process will result in any specific strategic plan or financial transaction, with no timetable set for its completion.

On a more positive note, Real Luck Group confirmed that over $23.9m has been wagered across the site from a registered player base of more than 450,000 since its last operating update in May.

Real Luck Group also achieved another high in July for Average Revenue Per User (ARPU) which, according to the company, shows the ‘extensive growth’ of the Luckbox brand given the protracted platform issues last year, while it also continues to develop a proprietary, live micro-betting product which is expected to launch later this year.

Braight AI unveils ambitions in Canada following Kings Entertainment takeover

Braight AI has shared its global expansion strategy for the next 12 months, highlighting Canada as a key location for growth.

A provider of Artificial Intelligence Big Data analytics solutions, specializing in leveraging the power of AI to extract actionable insights from vast amounts of data, Braight AI was acquired by British Columbia-based betting supplier Kings Entertainment last month.

Kings stated the intention of the acquisition was to leverage Braight AI’s technology to accelerate its user verification process while also exploring other ways AI can benefit its lotto and gaming platforms.

Braight AI CEO Maciej Jarzab has now provided an update from his side as the firm looks to “revolutionize the financial landscape”.

Previous significant milestones include expansion into Central and Eastern Europe (CEE) last year, and successfully operating out of Canada and Europe this year while hiring additional personnel for key roles in the drive for expansion.

In an update to shareholders today, Jarzab said: “We are now building on that foundation by embarking on an ambitious global expansion strategy for the next 12 months. Our central objective is to drive revenue growth by leveraging our substantial expansion opportunities.”

Braight AI’s blueprint includes geographical expansion encompassing Mexico, Colombia, Canada, Spain, and the CEE region in 2023, with expansion plans for the US, Brazil and Africa in 2024.

The company is also targeting an increase in its annual revenue to €100m ($147.3m) by 2027.

Jarzab concluded: “Since our scope extends beyond individual risk assessment to also encompass the entire B2B sector, this breadth of impact positions us to continue our role as transformative trailblazers across multiple industries, globally.

“We have had a successful 2023 so far and I am optimistic about exceeding our growth plans for 2024 and beyond.

“I would like to extend my appreciation to Braight AI’s employees and the Board of Directors for their dedication to accelerating the company’s strong growth.”

Apollo Entertainment takes RG action after six-figure AGCO fine

The Alcohol and Gaming Commission of Ontario (AGCO) has served Apollo Entertainment with a Notice of Monetary Penalty totalling $100,000 for failing to adhere to its responsible gambling standards.

Apollo entered the Ontario market last September, receiving licenses from the AGCO for seven igaming sites:

  • Zodiac Casino
  • Yukon Gold Casino
  • Luxury Casino
  • Grand Mondial Casino
  • Casino Classic
  • Captain-Cooks Casino
  • Golden Tiger Casino

However, the regulator announced last week that the firm has violated multiple responsible gaming provisions in the Registrar’s Standards for Internet Gaming, including:

  • Failing to conduct required interventions with players who may be experiencing gambling related harms. This included the case of a player experiencing over $2m in losses in under four months without receiving interventions from the gaming site operator during that period.
  • Failing to implement an adequate voluntary self-exclusion program, as well as providing insufficient tools for players to set financial and time-based gambling limits (i.e., loss and deposit limits).
  • Failing to ensure their employees understood the importance of responsible gambling, including assisting players who may be experiencing gambling related harms.

Canadian Gaming Business reached out to the AGCO to ascertain which of the sites operated by Apollo had fallen foul of its standards.

“The violations were against the operator, Apollo Entertainment Ltd,” the regulator responded.

Meanwhile, Tom Mungham, CEO and Registrar, of the AGCO, explained: “The AGCO’s goal is to ensure Ontarians can enjoy online gambling on sites that operate fairly, responsibly and provide important player protections.

“All registered operators have an obligation to proactively monitor patron play for signs of high-risk gambling, and must take appropriate actions to intervene and reduce the potential for gambling-related harm.”

The seriousness of the allegations laid against Apollo is evident in the severity of the fine issued by the Crown agency, which has taken action against numerous operators already this year.

Fitzdares Canada and BV Gaming were each handed a Notice of Monetary Penalty in June for alleged breaches of its Standards pertaining to minor league sports, while LeoVegas Gaming, Bunchberry and Mobile Incorporated were sanctioned in April for providing games on their Ontario sites that had not been approved by the Registrar.

The highest fine imposed on any of these operators, though, was $30,000 – under a third of that handed to Apollo.

Apollo, meanwhile, retains the right to appeal the Registrar’s action to the Licence Appeal Tribunal (LAT), which is an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

Jackpot Digital plots next jurisdictional moves after Glacier Peaks Casino deal in Montana

Jackpot Digital, an electronic table game manufacturer and mobile gaming provider for the regulated casino industry, has signed a deal to install its Jackpot Blitz dealerless poker ETG at Glacier Peaks Casino, Montana.

The Vancouver-based firm specializes in multiplayer gaming products, including poker and casino games, and is operational in a number of US states.

Jackpot Blitz, meanwhile, is an ETG system that removes the requirement to have a dealer on site, with its touchscreen technology enabling gesture control as well as offering multiple payment options.

Commenting on the software and license agreement signed with Glacier Peaks Casino, Jake Kalpakian, Jackpot President and CEO, said: “We are excited to be working with Glacier Peaks Casino, located in the state of Montana, and yet another new Montana property to order Jackpot Blitz.

“Players and casinos alike are excited by our product as it offers more game options and faster, error-free gameplay, all while improving casino operational efficiencies.”

Jackpot has announced new agreements or letters of intent for 17 Jackpot Blitz table installations so far this year, and has received letters of intent for an additional 16 tables from yet-to-be-announced partners.

These 33 new orders represent approximately 50% increase in Jackpot Blitz installations.

Jackpot is also in the process of obtaining licensing for more jurisdictions, and expects to install the next generation Jackpot Blitz in the second half of the year.

Kalpakian added: “Casinos all over the world are experiencing labor shortages and inflationary wage pressures, making our product more attractive than ever before. As a company we are uniquely positioned to take advantage of the macro trend toward automation in the casino industry.

“Through the innovative dealerless Jackpot Blitz technology, casinos are quickly recognizing the benefits of more revenues by dealing more hands per hour while at the same time drastically reducing costs and eliminating operational/employee requirements all at once.

“Demand for Jackpot Blitz has strengthened since [the] introduction of our next generation Jackpot Blitz, which allows for cash in/out and easier integration with each casino’s back-end system.”

AGLC & BtoBet announce imminent launch of new sportsbook on PlayAlberta.ca

Alberta Gaming, Liquor and Cannabis (AGLC) has joined forces with BtoBet to construct a ‘new and improved’ sportsbook which is ready to debut on PlayAlberta.ca this month.

PlayAlberta.ca is the only regulated gambling website in the province and is operated by the AGLC, the Government of Alberta’s Crown commercial enterprise and agency that oversees gaming, liquor and cannabis industries in the province.

BtoBet, meanwhile, is a B2B provider of sports betting software with a considerable presence in Europe but the NeoGames subsidiary has, up to this point, been inactive in North America.

That is all set to change now, though, with the sportsbook supplier making its North America debut through the roll out of Alberta’s first legal sportsbook offering, seven months after receiving regulatory approval to enter Ontario from the Alcohol and Gaming Commission of Ontario (AGCO), when NeoGames outlined its ambitions to expand across the continent.

The agreement between BtoBet and AGLC will encompass full delivery of the former’s betting solution to the provincial operator, with PlayAlberta’s migration onto the BtoBet sportsbook platform expected to be completed in Q3.

The deal also serves to further solidify the link between NeoGames and the AGLC, as the regulator has an agreement in place to build and maintain PlayAlberta’s gambling platform with NeoPollard Interactive, which NeoGames holds a stake in.

Dan Keene, Vice President, Gaming, AGLC, commented: “Our team at AGLC continues to find ways to improve all aspects of PlayAlberta.ca. Partnering with BtoBet expands the sports betting options for users on Alberta’s only legal, gambling website.

“Soon, players can choose from a variety of new, pre‐game props, in‐game bets or unique, same‐game parlays.”

New features include player props for all major North American leagues (NFL, NHL, MLB and NBA), single game parlays, additional markets and leagues, additional outright bets and new promotional options such as boosted odds and parlay multipliers.

Importantly, the sportsbook will continue to integrate AGLC’s responsible gambling programs, GameSense and Self‐Exclusion.

Tsachi Maimon, President and Head of iGaming at NeoGames, added: “We are delighted to enter into this long-term partnership with PlayAlberta, allowing us to enhance and expand their sports betting platform and services.

“As a proven leader in sportsbook provision, BtoBet is confident that this collaboration with PlayAlberta will provide their players with the optimal betting entertainment they demand – be it a strong offering related to hockey, player props, or same game parlays.

“We are excited to usher in the next generation of betting experiences through localised betting offers, including offers for the Canadian Football League, the Premier Lacrosse League, and unique special bets for a variety of sports focused on Canadian athletes.”

As PlayAlberta.ca goes through the sportsbook provider migration process, an interruption to the sports betting service is expected between Aug. 12 – 14, though players will still have access to their account and all other Play Alberta games during that period.

Playmaker Capital plots NHL moves after multi-million La Poche Bleue acquisition

Playmaker Capital has announced its acquisition of La Poche Bleue, a Quebec-based sports media and entertainment group, in a move designed to ‘unlock a net-new audience’.

The Toronto-based digital sports media firm has acquired 100% of La Poche Bleue in a deal worth $8.8m, including a closing cash payment of $2.25m and the issuance of 1,666,667 Playmaker shares on closing, priced at $0.75 per share.

The transaction also includes two separate earn-out payments of up to a maximum of $5m in the aggregate, payable to the sellers upon La Poche Bleue achieving certain EBITDA targets in each of the 12-month periods ending Aug. 7, 2024 and Aug. 7, 2025, and deferred cash payments of $0.3m, payable to the sellers over the first two years following closing.

70% of the earn-out consideration is payable in cash and 30% of the earn-out consideration is payable by the issuance of Playmaker shares.

La Poche Bleue covers a range of different sports and leagues, including the NFL and MLB, and shines a particular focus on the Montreal Canadiens, which Playmaker aims to utilize to round out its regional and national hockey coverage in time for the upcoming 2023-24 NHL season.

The brand has cultivated a strong Quebec following with its video-podcast series, which includes eight shows served in both French and English language, and will play an integral role in expanding Playmaker’s North American reach.

“We’re very proud of the strong following that La Poche Bleue has cultivated over the past several years, and we’re excited to carry on our mission of developing and promoting Quebec products,” said La Poche Bleue Co-Founders Maxim Lapierre and Guillaume Latendresse.

“We’re also thrilled about the opportunity to join the Playmaker team which will help us embark on this next phase of growth and expand Playmaker’s business into Quebec.”

Playmaker stated that La Poche Bleue ‘immediately compliments’ The Nation Network’s suite of high-affinity web and social properties, including a top-ranked hockey fantasy website globally, Daily Faceoff, and its growing portfolio of video podcast shows.

Jordan Gnat, Playmaker CEO, added: “We’ve made it very clear that establishing a meaningful and authentic presence in Quebec is core to our continued growth in North America.

“La Poche Bleue is an incredible producer of sports content and consumer products with true fan affinity in Quebec. In addition, Maxim, Guillaume, and [Managing Director] Louis-Philippe [Dorais] are consummate professionals with strong ties to the local community. Maxim and Guillaume are bonafide sports personalities who will continue to drive the brand’s entertaining and culturally relevant content offering.

“This marks a significant step in our North America expansion strategy and an exciting day for Playmaker as we add more great players to our team.”

As part of the deal, Lapierre, Latendresse, and Dorais will remain with the business to continue to lead its growth within Playmaker’s ecosystem of sports media and affiliate businesses.

GAN probes effect of Coolbet’s exit from Ontario in Q2 report

GAN has noted a minimal drop in its number of B2C active customers during the second quarter of FY2023, despite the withdrawal of Coolbet from the Ontario market in April

Coolbet entered the newly regulated Ontario market when it launched in April 2022 but less than 12 months later, GAN’s B2C segment announced it would halt offering its services in the Canadian province after Apr. 3.

However, GAN has reported that despite its ‘strategic decision’ to exit the Ontario market and focus on Europe and LATAM, alongside limited customer acquisition in Latin America, B2C active customers only decreased ‘modestly’ from the prior year period (Q2 2023: 257,000, Q2 2022: 260,000).

Meanwhile, GAN’s B2B gross operator revenue totaled USD$436m ($584.5m) in Q2 2023, a 54% increase on the USD$283m ($379.4m) it achieved in Q2 2022.

According to the firm, the increase was driven primarily by organic growth in Pennsylvania, Michigan, New Jersey and Connecticut, while Ontario supplemented the growth through achievement of greater market share.

Other top line figures include a USD$1.2m ($1.6m) decrease in total revenue YoY to USD$33.8m ($45.3m), while operating expenses dropped from USD$62.3m ($83.5m) last year to USD$32.8m ($43.9m) this year.

Dermot Smurfit, CEO of GAN, explained: “Our second quarter saw solid execution and progression of our business plan. We continued to see strength in international markets for B2C, expanded our roll-out of GAN Sports, and made significant progress on the new GameSTACK 2.0 version of our technology platform.

“With GAN Sports now live in nine US states and the encouraging momentum we are seeing in our international markets, we would expect our top-line performance to improve over the coming quarters and into 2024.

“As an update on our strategic initiatives, we have received indications of interest from prospective bidders interested in acquiring all or part of our business. A special committee of our Board of Directors, composed of non-executive directors, is evaluating those alternatives.

“The indications of interest are non-binding; no definitive agreements for a strategic transaction have been reached at this time. There is no assurance that a transaction will take place, and no timetable for completion of any transaction.”

What’s next for theScore in Canada after Penn’s ESPN sports betting deal?

Penn Entertainment has agreed a sports betting partnership with ESPN – dropping Barstool Media in the process – but it appears to be business as usual for its flagship brand in Canada, theScore.

Yesterday’s announcement sent shockwaves round the sports betting industry as Penn revealed plans to rebrand its current sportsbook to ESPN Bet this fall in the 16 legalized betting states where the company is licensed.

In return for exclusive rights to the ESPN trademark for 10 years, Penn will pay $1.5bn (CAD$2.01bn) in cash payments and grant approximately $500m (CAD$671.46m) of stock warrants to purchase nearly 32 million in Penn common shares in addition to another 6.4 million shares that are triggered with certain performance achievements.

The domino effect of this is that Penn has severed ties with Barstool Sports, just six months after finalizing a $524m deal to acquire 100% of the firm.

An announcement stated: “Penn sold 100% of the Barstool Sports, Inc. common stock to David Portnoy in exchange for certain non-compete and other restrictive covenants. Penn also has the right to receive 50% of the gross proceeds received by David Portnoy in any subsequent sale or other monetization event of Barstool.”

Amidst a time of uncertainty, though, there is comfort to be found in the success of theScore in Canada, which is now a double digit market share leader in Ontario according to Penn.

The brand’s achievements in the Canadian province were laid bare earlier this year in Penn’s 2022 Q4 report, which revealed Ontario had become its top market in North America for sports betting and casino.

Jay Snowden, Penn Entertainment CEO, was effusive in his praise for theScore’s tech stack, further hailing “the quality of our products and the stickiness of theScore media ecosystem”.

He echoed those sentiments upon publication of Penn’s 2023 Q1 report.

“In Ontario, we are seeing the benefits of our proprietary technology stack, which has led to our sustained market share in one of the most competitive markets in North America,” said Snowden in May.

Commenting on his company’s latest agreement with ESPN, Snowden also reserved some words of encouragement for theScore.

He said: “Our agreement with ESPN will provide us access to the largest ecosystem in sports, with 105 million+ monthly unique digital visitors, an audience of more than 370 million across social platforms, 25 million ESPN+ subscribers, and the nation’s number one fantasy database.

“Penn’s ability to leverage the leading sports media brands in both the US and Canada with ESPN and theScore, combined with our newly launched sports betting app, will allow us to significantly expand our digital footprint and catapult ESPN Bet into a strong podium position in this space.

“We believe we can achieve substantial adjusted EBITDA in our Interactive Segment over the coming years – and this will translate to very strong free cash flow generation for the company and value creation for our shareholders.”