Page 171 – canadiangamingbusiness

DraftKings completes GNOG acquisition, expects Q2 Ontario launch

May 6, 2022

DraftKings has announced that it has completed the acquisition of Golden Nugget Online Gaming (GNOG) that it had announced in August 2021.

The all-stock transaction, which has an implied equity value of approximately US$1.56 billion, will enable the group to leverage the Golden Nugget brand to broaden its reach into new customer segments and enhance the combined company’s iGaming product offerings, said DraftKings in a news release.

The deal had initially been expected to close in the first quarter of 2022. However, that deadline passed without the businesses gaining all the approvals necessary to combine, and was pushed back to 31 May.

The acquisition does not include brick-and-mortar Golden Nugget casinos, which will continue to be owned by Fertitta Entertainment. However, Fertitta and DraftKings expect some DraftKings rebranding to occur at selected current and future retail sportsbook locations at the properties. DraftKings also intends to bring GNOG onto its in-house technology to reduce third-party platform costs, operating expenses, and vendor costs.

As part of the acquisition, DraftKings will integrate GNOG employees across its business. Tilman Fertitta, chairman and CEO of Golden Nugget, will join the company’s board, and Thomas Winter will transition to General Manager of North America iGaming from his previous role as GNOG president. Fertitta said the alliance will be “unlike any other in the digital sports, entertainment and online gaming industry”.

Meanwhile, DraftKings said in an earnings call on May 6 that it expects to launch in Ontario’s regulated market in the second quarter of 2022, i.e. before the end of June.

The company said it anticipates its all-stock acquisition of GNOG and the coming launch in Ontario will add another US$130 million to US$150 million in revenue and negative US$50 million to negative US$70 million in adjusted EBITDA this year.

DraftKings has thus far been a noticeable exception to the flurry of big-name operators joining Ontario’s nascent regulated online gaming and betting market.

“Due to the presence of grey-market operators, many of which have been present in Ontario for several years, we do not believe that the timing of our launch will have any impact on the share we are able to achieve in that province,” Robins said during a conference call for analysts and investors, per Covers.

GameOn appoints Luke Gniwecki as Web3, NFT special advisor

May 5, 2022

GameOn Entertainment Technologies Inc., a leading NFT game technology company partnered with the world’s biggest IPs to launch, operate, and monetize NFT-based games, has appointed Luke Gniwecki as a Special Advisor focused on Web3 and NFT product innovation.

Gniwecki comes to GameOn with a wealth of experience in the Web3, gaming, NFT, blockchain, and broader product space, notes a press release. Prior to his appointment, he served as Head of Product for Boson Protocol where he launched Boson Portal, the first-ever Metaverse experience enabling brands to set up virtual stores, create mini-games, and sell physical products as NFTs.

He has also previously worked at a London-based Blockchain R&D company building Web3 products for governments and the fintech sector. In addition to his new role with GameOn, Gniwecki advises a metaverse and games technology company, Admix, and has founded Metaverski, a Web3 and Metaverse product consultancy business. He’s also held other prominent roles which include Head of Blockchain Product at Cudo Ventures (CUDOS Blockchain) where he was responsible for strategic direction and development of blockchain-related products within the Cudo ecosystem.

“On behalf of the GameOn team, I warmly welcome Luke to our organization,” said GameOn CEO Matt Bailey. “Luke brings the ideal blend of Web3, NFT, and gaming experience that perfectly suits the needs of our company. More specifically, with his prior tenure in developing extensive product lines, he adds immense incremental value to our already well-respected team of advisors. We continue to remain laser-focused on scaling customers and growing revenues, and it’s with hires like Luke that will help us achieve that goal and expand our growing footprint.”

GameOn has also announced that Chief Product Officer, Santiago Jaramillo, left the company effective April 29, 2022, by mutual consent. “I’d like to personally thank Santi for his commitment and dedication to pioneer GameOn’s product to the position it is in today,” said GameOn CEO Matt Bailey. “Santi leaves the company in an infinitely better place than when he got here, setting us up for success to now scale customers and revenues. We wish Santi the best of luck on his next adventures, and look forward to him remaining a close friend of the company.”

Ontario market shaping up well one month on

May 5, 2022

One month into the new regulated online gaming and betting Ontario market and things are going pretty well, all told.

As of May 5, at least 34 operators have been successfully registered with the AGCO and 21 websites/apps are up and running. Those include numerous big-name operators from within Canada, the U.S. market, and elsewhere.

“We’ve dealt with some hiccups with payments and the financial services sector,” Paul Burns, President and CEO of the Canadian Gaming Association, told The Parleh. “It’s nothing we haven’t seen in other markets, just growing pains as banks get used to and understand that the transactions are legal.”

Amanda Brewer, former Canadian Gaming Association consultant and now Canadian manager for Kindred Group, added that “given the big-name operators who have come on board, it has been as smooth as we could have hoped for”.

“As we get more operators into the market, it will get interesting,” she added. “With every large, well-known operator that comes in, there’s a shift that happens with everyone jockeying for position.”

Recent operators approved for licenses include NorthStar Bets, DraftKings, BetRegal, Betway, and ComeOn.

“Everybody is waiting for DraftKings to come to Ontario,” Greg Warren told Global News. “They’re not licensed with the Alcohol and Gaming Commission of Ontario yet … but everyone is kind of expecting them to jump into the market soon. And I think when they come, they’re going to be very popular.”

SkillOnNet has also received approval to launch a number of its brands in Ontario, including the SpinGenie and SlotsMagic brands.

Another operator expected to launch soon in Ontario is Bet99, which signed Toronto Maple Leafs star Auston Matthews as an ambassador in February.

Ontario Lottery and Gaming chief digital and strategy officer Dave Pridmore told Sports Handle that he thinks the influx of operators to rival OLG’s PROLINE offering is great for the province and its residents.

“There were a lot of illegal operators, and now that money can go to Ontario. From OLG’s perspective, we’ve always been in a competitive market. Our world doesn’t change too much, other than we’re hyper-focused on delivering what our customers need,” he said.

On the supplier side, Armadillo Studios has officially secured certification and is preparing to enter the market, while Vancouver-based developer of digital iGaming content Playgon is one of several more to have applied for a license.

National Basketball League of Canada selects IMG as betting partner

May 5, 2022

The National Basketball League of Canada (NBL Canada) has selected Endeavour Group’s sports subsidiary IMG Arena as its official sports betting data supplier.

The two organizations’ exclusive audio-visual sports betting and data rights deal will begin at the start of the 2022/23 season with distribution to IMG Arena’s network of sportsbook operators worldwide.

“This is an important step for NBL Canada as we move into the sports betting realm and it’s an honour to do so with such a respected and experienced partner in this space,” said NBL Canada vice president of operations Audley Stephenson.

IMG Arena’s technology will give fans access to real-time data, allowing NBL Canada to grow their reach while also offering sportsbook operators new content.

IMG Arena rights director Mark Wrigley said: “NBL Canada is an established organization with an exciting brand. We are delighted they have chosen IMG Arena to work with them on their entry into sports betting and look forward to building a strong relationship to help grow their offering and audience by engaging fans around the world.”

Segev LLP promotes gaming, securities experts to partner

May 5, 2022

Law firm Segev LLP has promoted lawyers Aadam Tejpar and Marius Adomnica to partners and elevated lawyer Evie Sheppard to an Of Counsel position at the firm.

Adomnica has been with Segev since 2014 and has worked at the forefront of the firm’s technology, iGaming, and video game and esports law services, developing deep expertise in these fields.

Tejpar has been with Segev LLP since 2018 and has built a successful securities practice.

Sheppard has been an integral part of the Segev team for over four years and has made a significant impact in developing its commercial and corporate finance practices. Her experienced and thoughtful approach to sophisticated matters is highly respected by her peers and clients.

Segev LLP is a full solutions business and technology and securities law firm headquartered in Vancouver, with satellite offices in the USA and China. It provides insights, analyses, access, and strategy services to some of the world’s best and nimblest businesses, all underpinned by out-of-the-box thinking and high-quality legal work.

Segev LLP is recognized as a world leader in interactive entertainment, gaming, and betting law, and is also a leading corporate, commercial, and finance law firm for other bleeding-edge ventures.

CGA welcomes GeoComply, Bet99, FIS as new members

May 4, 2022

The Canadian Gaming Association (CGA) has expanded its membership roster by welcoming companies including GeoComply, Bet99, and FIS to its ranks.

GeoComply

GeoComply is a leader in geolocation security and compliance and provides fraud prevention and cybersecurity solutions that detect location fraud and verify customers’ true digital identities. Its software is installed on over 400 million devices worldwide and analyzes over three billion transactions a year across various industries.

Within the gaming industry, the Vancouver-based company works with the likes of William Hill, Caesars, Scientific Games, FanDuel, Golden Nugget, Bet365, 888 Holdings, and more, and its IDComply won Digital Product of the Year at the 2021 Global Gaming Awards.

Bet99

Bet99 is an online casino and sports betting operator that is licensed by the Kahnawá:ke Gaming Commission and has operated in the country’s grey market since 2020 prior to the launch of Ontario’s regulated gaming market. It intends to launch in the new market in the coming weeks. Its offerings are tailored specifically for Canadian sports fans.

The sportsbook recently signed a high-profile partnership by bringing Toronto Maple Leafs star Auston Matthews on board as a brand ambassador. The deal made Matthews the first active NHLer to sign an endorsement deal with a betting company and sees the NHLer promote the company’s free-to-play site in Ontario. Canadian UFC fighter Georges St-Pierre is also a Bet99 ambassador.

FIS

FIS is an American multinational Fortune 500 corporation which offers a wide range of financial products and services. Its Worldpay offering provides online gaming payment processing that satisfies global gaming customers however they want to pay and processes at a capacity of thousands of transactions per second.

With access to the leading domestic payment partners and a vast network of alternative payment types, it allows operators to increase revenue through fast, safe and efficient online gaming payment processing.

Check out the full list of CGA members.

AGEM Index ends growth with 9.7 per cent drop in April

May 4, 2022

The AGEM Index ended a three-month period of growth by falling by 92.98 points to 862.42 in April, marking a 9.7 percent decrease from the prior month.

Compared to one year ago, however, the index added 3.99 points for an annual growth rate of 0.5 per cent.

During the latest reporting period, 11 of the AGEM Index companies reported stock price declines, with only one company posting an increase. As a result, all 12 companies in the AGEM Index posted negative contributions to the overall index.

The largest negative contributor to the monthly index was Aristocrat Leisure, which reported a 47.42-point index loss as a result of an 8.3 per cent decline in stock price. Meanwhile, International Game Technology (IGT) suffered an 11.40-point loss to the index due to a 11.6 per cent drop in the company’s stock price. Despite a 3.7 per cent increase in stock price over the period for Konami, a weakened exchange rate between the United States dollar and the Japanese yen led to a 5.19-point loss for the index.

The decline game at a time when all three major U.S. stock indices observed negative growth. The Dow Jones Industrial Average decreased by 4.9 per cent from March, while the S&P 500 fell by 8.8 per cent. Meanwhile, the NASDAQ saw a 13.3 per cent decline over the month.

The Association of Gaming Equipment Manufacturers produces the monthly AGEM Index that comprises 12 global gaming suppliers throughout the world and is based on the month-end stock price of each company and weighted based on an approximation of market capitalization.

Auditor predicts Ontario betting & gaming will generate $75M by 2025

May 4, 2022

An Ontario Auditor General report has predicted that the regulated private market for online Ontario betting and gaming is expected to generate around $75 million in revenue for the provincial government over the next three years.

Auditor General Bonnie Lysyk’s latest fiscal review included a breakdown of the estimated net income of iGaming Ontario, the agency charged with executing operating agreements with companies and overseeing the market.

Lysyk’s report said that financial projections indicate that iGaming Ontario is expected to see net income of $18 million for the 2022-23 fiscal year, followed by $26 million for 2023-24 and $31 million for 2024-25, totalling a combined $75 million over three years.

The report noted that the total may vary as “given the lack of history in this area, it was not feasible to assess the reasonableness of the projections.” A small portion of iGaming-related funds is expected from sales tax on top of that $75 million projection.

One major aim of Ontario’s new market is to bring betting revenues from offshore and formerly grey market sites into regulated channels. It is estimated that Ontario residents were spending around $700 million a year on grey-market sites before April 4.

The auditor general’s report didn’t say anything about how much revenue private iGaming operators are expected to generate in Ontario overall. Whatever that number winds up being, the province’s reported tax rate for companies participating in the new iGaming market is 20% of their revenue.

iGaming Ontario also says its approach to reporting revenue will be communicated at a later time.

“iGO is encouraged by the number of operators that have joined the regulated market and the level of iGaming activity seen to date,” the agency told Covers. “Given the recency of the market launch and the anticipated growth as more operators go live, iGO is constantly in the process of reviewing and revising any forecasts made prior to launch.”

AGCO fines BetMGM, PointsBet over alleged advertising breach

May 4, 2022

The Alcohol and Gaming Commission of Ontario (AGCO) has announced that it has issued penalties to the Canadian operations of BetMGM and PointsBet for alleged advertising and inducement infractions.

The two companies have been served with Notices of Monetary Penalty for alleged infractions of the Registrar’s Standards for Internet Gaming pertaining to advertising and inducements.

Standard 2.05 details restrictions on the advertising of inducements, bonuses, or credits, except when they are on an operator’s site or through direct advertising and marketing issued after receiving active player consent. Meanwhile, Standard 2.04 requires that materials must not imply that the chances of winning increase with the more one spends.

BetMGM Canada has been issued a fine totalling $48,000 for its alleged failure to comply with Standards 2.04 and 2.05.

The AGCO says that contrary to Standard 2.04, the company tweeted that “the more money you put in per bet, the higher your chance is of winning” on April 10, which the AGCO said was misworded and too suggestive of something that is not a fact. In addition, the AGCO asserts that BetMGM posted three separate advertisements on Twitter that were in alleged contravention of Standard 2.05. One was a “$250K Launch Party” advert, including a contest offer where the winner would receive a $100,000 casino bonus; another was a “Bellagio” ad, including an offer of a $10 casino bonus in return for a $25 bet; and the third was a “Jimi Hendrix Free Spin Friday” for the chance to win 100 free spins.

Meanwhile, PointsBet Canada has been fined $30,000 for an alleged failure to comply with Standard 2.05. The AGCO says it advertised two gambling inducements for customers to play for free, one via posters on GO trains and in multiple products and the other via posters at two GO train stations.

Registered operators served with a Notice of Monetary Penalty have the right to appeal the Registrar’s action to the License Appeal Tribunal, an adjudicative tribunal independent of the AGCO and part of Tribunals Ontario.

PointsBet Canada CEO Scott Vanderwel issued a public apology for “our error made in the interpretation of the standards” and emphasized that the company will ensure it toes the regulatory line in the future.

Ontario is one of the only jurisdictions in the world to prohibit broad public advertising of bonuses and other gambling inducements. The Standards were finalized and announced in September 2021 ahead of Ontario opening its legal online gambling market on April 4 this year.

Canadian Gaming Association President and CEO Paul Burns told PlayCanada that the regulations are a learning curve for everyone in the industry.

“Regulations are one thing when they’re written. In terms of understanding how those are being applied, I think it’s going to be a bit of a learning process for everybody,” Burns said. “I think it will sort itself out in the coming months. But obviously, the AGCO wants to set the tone of what they look for in compliance. Inducements and incentives were really one of the particular areas where they were very firm.”

Kambi to power Fallsview Casino’s online sportsbook

May 3, 2022

Mohegan Gaming & Entertainment (MGE) has signed up Kambi Group to leverage the latter’s market-leading online mobile sportsbook at Fallsview Casino in Ontario.

The multi-year deal will see MGE use Kambi’s award-winning technology and mobile sports betting offering, including its expansive Bet Builder capability, for its PlayFallsview online mobile sportsbook brand.

Operated by MGE, Fallsview Casino is the largest gaming resort facility in Canada and one of the most recognizable gaming brands in the country. It is set to launch an online brand to launch following the opening of the newly regulated Ontario market last month.

The long-term agreement further strengthens Kambi’s presence across North America. Kambi is already live in 17 US states, partnered with the likes of BetRivers owner Rush Street Interactive, Unibet owner Kindred Group, LeoVegas, and Penn National Gamin, and already works with MGE in Mohegan’s home state of Connecticut.

It also recently launched in Ontario on the first day that the regulated market went live, and has partnered with other brands hoping to go live in the province, including Torstar-aligned NorthStar Bets and MaximBet.

Kristian Nylén, Kambi’s CEO and co-founder, said in a press release: “The Canadian market, and Ontario in particular, is full of potential for Kambi and our partners so I am pleased to have agreed this partnership with Mohegan and its Fallsview online mobile brand. I look forward to the combination of our industry-leading mobile sportsbook and the prominent Fallsview name as together we bring players in Ontario all the excitement of single and in-game wagering along with the unrivalled bet combinability our sportsbook offers.”

Rich Roberts, President of Mohegan Digital for MGE, added: “It’s an exciting time for the mobile gaming industry as sports betting continues to grow, and we’re thrilled to be entering into another partnership with Kambi Group plc with the launch of PlayFallsview online mobile sportsbook. Once launched, this will mark MGE’s first online mobile gaming product outside of the United States and we’re really looking forward to our partnership with Kambi Group on this new venture.”

Image: Idawriter via Wikimedia Commons