UK-listed gambling giant GVC Holdings says its global online strength and US market expansion will allow it to withstand the imminent shakeup of its UK retail business.

GVC released its official FY18 financial report card on Tuesday, the results of which largely mirrored January’s earnings preview. GVC’s business underwent a major transformation last year due to its completion of the Ladbrokes Coral acquisition, plus the Neds and Crystalbet deals, so we’ll focus on the ‘pro forma’ numbers, which assumes that these entities were already one big happy money-hoovering family in 2017.

GVC’s 2018 net gaming revenue (NGR) was up 9% year-on-year to £3.57b, gross profit improved 7% to £2.4b, underlying earnings rose 13% to £755.3m and underlying operating profit jumped 19% to £610m. In actual numbers, underlying profit before tax nearly tripled to £434.6m but the company booked a net loss after tax of £56.4m primarily due to non-cash write-offs of acquired intangibles.

GVC’s online operations were the report’s unquestioned stars, with much of the credit going to the continuing turnaround of the bwin and PartyPoker brands, although the Lads Coral UK-facing online brands’ performance was dubbed “particularly pleasing.” GVC noted that it’s still “early days” but it sees “a significant opportunity” in reinvigorating the Ladbrokes brand.

Georgia is starting to warm up its efforts to introduce legalized sports betting. On February 27, the state House of Representatives received a house resolution that would kick things off for the Peach State.

House Resolution 380 doesn’t really do much except start the conversation and make a couple of promises. It’s a plan, really. If passed, the people of Georgia would vote on an amendment to the state constitution, which in turn would allow the General Assembly to create laws for sports betting.

The bill is cosponsored by six representatives, including four Democrats and two Republicans. That bi-partisan support has become typical for most sports betting laws in the U.S., as each state rushes to cash in on additional gambling revenues.

The resolution itself states:

Minnesota is getting serious about sports betting now. The state Senate is scheduled to discuss Bill 1894 on March 7, which if passed, would introduce regulated sports wagering, both in casinos and on mobile phones.

The bill was put forward on February 28 by five senators, with four Republicans and one Democratic-Farmer-Labor party (a party unique to Minnesota, but generally affiliated with the democrats).

The bill is a thorough 13-page document, getting into specific regulations, taxation rules, and even zoning laws. Generally, though, it sets up casinos run by tribes, or racetracks, to offer sports betting, and then for customers to be able to use the internet or mobile devices to continue to do so at home. Only people over 18 would be able to participate, and only on professional or collegiate sports. It specifically also restricts wagering on virtual sports.

The tax laws aren’t too bad for a new market. Operators will pay 6.75% on net revenue, but it does not make clear how much a license would cost.

If there’s a licensing deal that might have the most upside for operators, it’s probably Major League Soccer (MLS). Lucky for them, MLS looks like it’s more than ready to jump into the sports betting industry and sign a deal, ESPN reports.

MLS Commissioner Don Garber sees sports betting as a way of building up the brand. It would drive engagement, attract a larger audience, and bringing in more revenue for the league. He reportedly said:

“If people are going to do it, you might as well manage it, organize it. You might as well generate tax revenue for it and find ways that the league could use it as a marketing tool to have people engage more with our players and our clubs.”

Commenting on the possibility of a league stadium getting a naming rights deal with a gambling operator, Garber spilled the beans. “If there’s a possibility with a gaming company naming one of our stadiums, I’m all for it,” he said. “We’re in the process of getting close to a major league-wide sponsorship with a respected gaming company, and I’m very supportive of that as have the other leagues.”

The Lim family, founders of Genting Bhd, have given up their share of Donaco International. The Malaysia-based Lims held 27.25% in the casino operator, but have now relinquished them to third parties, according to a filing with the Australian Securities Exchange (ASX).

Vincent Pirina and Mitchell Mansfield have been appointed as “joint and several receivers of approximately 224 million” Donaco shares that were “formerly controlled by the Lim family,” explains the filing. The appointment of the receivers was made by Madison Pacific Trust Ltd., the security trustee for OL aster (Singapore Fund 1) Pte. Ltd. That appointment was made “pursuant to certain financing agreements with entities controlled by Mr. Joey Lim.”

Donaco is aware of the transfer and stated yesterday that it might be viewed by Donaco’s Taiwan-based lender, Mega International Commercial Bank Co. Ltd., as a “change of control” according to terms defined in a loan agreement. Donaco added, “If so, the loan may become due and payable sooner than the currently scheduled repayment dates … The company will discuss this issue with Mega Bank, and keep the market informed of all developments.”

Last December, Donaco informed the ASX that it was contemplating its options regarding a debt of $39.9 million it held with Mega Bank. That debt is secured by firm’s Star Vegas Resort and Club, located in Poipet, Cambodia.

This past Saturday, Silver Heritage inaugurated its new VIP gaming facilities at the Tiger Palace Resort. The launch was held in conjunction with the one-year anniversary of the official grand opening of the Nepal-based casino and the facilities offer 4,500 square feet divided into three VIP rooms with high-limit slot machines, 11 gaming tables, a private dining area and a lounge.

Silver Heritage announced earlier this year its plans to offer the VIP gaming operations, following a successful in January. For that month, the company saw an increase of 110% in table drop, as well as an increase of 142% in traffic, at Tiger Palace. It was the first month since the venue opened in December of 2017 that it has been able to report positive year-on-year results and the table drop rose from $1.009 million to $2.128 million, with visitation increasing from 4,361 to 10,584.

The turnaround, and the new VIP operations, are good news for the casino operator. Last week, it reported that its venue in Vietnam, the Phoenix International Club, was shut down after a revised Investment Certificate caused it to lose the ability to offer table games.

Reporting on the closing of the Phoenix operations, which are meant to be just a temporary suspension, Silver Heritage stated, “As set out in the [Australian Securities Exchange] announcement dated 27 February 2019, Silver Heritage requested an immediate trading halt pending an announcement regarding its contract and operations at Phoenix International Club, Bac Ninh (Phoenix) in Vietnam.

A bill introduced by New York Assemblyman Gary Pretlow last Thursday hopes to expand the state’s gambling opportunities. It would allow digital gambling, as well as permit racetracks and other commercial facilities to join forces with New York’s four casinos to launch in-person sports betting through kiosks. If approved, sports gambling could soon make its way to venues such as Madison Square Garden and Yankee Stadium.

Sports gambling was first legalized in the Empire State in 2013 after voters approved an amendment to the state’s constitution that allowed commercial casinos. Four casinos were subsequently launched and the idea of offerings sportsbooks has always been on the back of everyone’s mind. However, it wasn’t until the U.S. Supreme Court reversed PASPA last May that New York was able to finally move forward.

After PASPA was eliminated, the New York Gaming Commission drafted regulations this past January that would authorize sports wagers at the casinos. Not much has moved since then, as the state’s governor, Andrew Cuomo, feels that legalization of sports gambling would require another constitutional amendment.

In speaking with LegalSportsReport recently, Pretlow stated, “Maybe [Cuomo] won’t veto it. Maybe we can override his veto. A lot of things can happen. But if we don’t try something, it’s never going to happen.” He reiterated that position during a discussion held at the Cardozo School of Law last Friday, asserting, “I have it on good authority that the governor, who has heretofore said it was unconstitutional, has backed away from that. We’ve not heard the governor say anything about it being unconstitutional in the past few days.”

The Financial Times, long an establishment mouthpiece for launching public policy trial balloons, published an article this week entitled “Why the party is over for online gambling”. It smells of being one of those trial balloons, persuading readers to think that public opinion is a certain way when in fact the article itself looks written to influence public opinion rather than survey it. The crux of the article is that the United Kingdom gambling industry is irresponsible and doesn’t care about the damage it causes. Far from proving that “the party is over for online gambling,” the only evidence the article cites of further restrictions on the industry was this: “Labour MP Tom Watson called for the [2005 Gambling] Act to be overhauled, imposing further restrictions on how much customers can wager and a system of checks to make it harder for people to place bets they can ill-afford.” That’s it.

The rest of the article was basically industry finger-pointing for a “series of lurid scandals.” One of these supposedly lurid scandals he cites was Ladbrokes agreeing to pay £1m to the victims of a problem gambler who had stolen the money he was wagering in return for a pledge not to inform regulators. Here you have a voluntary out-of-court settlement where victims of a crime are fully reimbursed, the justice system is not burdened, and this is a lurid scandal?

The other “lurid scandal” he cites is of William Hill failing to prevent money laundering. Well, whose fault is money laundering? Money laundering is simply a method of tax avoidance. High taxes cause money laundering. Pay a babysitter under the table and you’re a money launderer, as is the babysitter. All babysitters paid in cash are guilty. The point is, money laundering for tax avoidance cannot be a moral crime because the same exact act is considered fine when it’s small, but wrong when it’s big. It’s a legal crime, not a moral one. It can only be a moral crime when it’s used to hide murder or slavery or some other violation of human rights.

The solution to money laundering is to lower taxes to a point where money laundering is no longer profitable, or not profitable enough to compensate for the risk. The fault is the government’s. If taxes on everything were 90%, literally everyone would be evading taxes and laundering money all the time just like they did in the 1950’s in the United States. It would just be considered the accepted way of doing things.

Connecticut is currently considering four gambling bills that cover different aspects of the activity. However, there may be trouble ahead for at least two, as two state tribes could become embroiled in a legal matter after it was revealed that former Department of the Interior (DoI) Secretary Ryan Zinke possibly lied to federal investigators regarding a partnership between the two tribes.

One of the bills being reviewed would have allowed the Mohegans and the Pashantucket Pequots to join forces to introduce a casino in East Windsor. In order for that to happen, both tribes must have a federal compact in place. The DoI has approved a compact for the Mohegan tribe, but not for the Pequot tribe.

According to a report by The Washington Post, the move stalled, according to the tribes, because of political pressure and the DoI’s Office of the Inspector General launched an investigation years ago. Now, the IG’s office has asserted that Zinke lied to them during that investigation.

Prosecutors have now started to present evidence to a Washington grand jury in order to determine whether or not Zinke did, in fact, lie and whether or not he should be charged with any crimes. Zinke denies any wrongdoing, stating, “I sided with a principle that I didn’t want to take a position on something that was off the reservation. I had multiple legal counselors’ opinions about what was legal. The investigators may not have liked my answers, but they were truthful.”

How quickly things can change when politicians feel they don’t need to listen to their constituents. Right at a month ago, a committee in South Dakota’s Senate showed favor for a sports gambling bill that was being considered. The bill was expected to be well received at almost all levels, as the state is facing local competition that could see it lose valuable revenue as gamblers go across state lines to place their wagers. Despite being supported by residents and lawmakers, the bill was always going to face a challenge at the top rung of the ladder, but it didn’t even make it that far.

The state’s Senate Affairs Committee approved a proposal to allow sports wagers in Deadwood last month by a 5-4 vote. Yesterday, however, the South Dakota House State Affairs Committee voted against it by a vote of 7-3. After the bill’s defeat, representatives used a procedural move that pushed it to the floor and the fight continues as the bill will now have to be considered by the House.

Backers of the bill are prepared to do everything in their power to see the bill through to the end. The executive director of the Deadwood Gaming Association (DGA), Mike Rodman, asserts that the bill’s proponents are exploring all of the legislative options to find support and that they will ultimately gather signatures to put the bill on a voter ballot next year if necessary. He believes it should be up to the voters of the state to decide whether or not sports gambling should be allowed.

If their efforts fail along the legislative path, supporters will need 34,000 signatures to have the measure put on the state’s ballot. Rodman states, “We believe that people have a right to have their say in sports betting, and we want to give them that opportunity.”