Online gambling operator Gaming Innovation Group (GiG) reduced its net losses in the third quarter of 2020 as the company adjusts to its new purely B2B focus.

Figures released Wednesday show GiG generated revenue of €17.9m in the three months ending September 30, a 78% rise over the same period last year. The company reported earnings of €3.2m versus a loss of €400k last year, while net losses shrank from €8.4m to €4.9m.

GiG has undergone a significant makeover since Q3 2019, which featured sufficiently dire results to prompt the company to undertake a strategic review that led to the sale of its customer-facing operations to Sweden’s Betsson AB this spring. These operations included the Rizk brand, which went live on GiG’s platform in both Croatia and Spain during Q3.

That spring sale saw Betsson sign on as a client of GiG’s platform services unit, which reported revenue up 51% year-on-year to €5.4m, while the unit’s earnings loss narrowed to €100k from €2.1m in Q319. GiG added six new platform clients in Q3 (and two more in the current quarter), most of which will go live early next year.  

Gamblers in Massachusetts are going to have to alter their schedules if they plan on making late-night casino runs. Starting this Friday, the state’s three commercial casinos will no longer be accessible after 9:30 PM each day because of COVID-19. A reappearance of the virus is forcing the state to take measures to keep it from spreading further, and Encore Boston Harbor, MGM Springfield and Plainridge Park are all going to suffer as a result. 

The three casinos were forced to close this past March because of the coronavirus and didn’t reopen until July. Since then, they have been operating at greatly reduced capacities as they tried to get back on solid ground, and the new order by Governor Charlie Baker is going to be a huge step backward. However, with a 278% increase in new coronavirus cases since Labor Day in September, something has to be done to keep things from getting out of control again. 

The gambling facilities will, as of this Friday, be forced to shut down at 9:30 PM and remain closed until 5 AM the following morning. This is because Barker has issued a stay-at-home advisory that limits travel to only “essential activity” between 5 AM and 10 PM, and gambling is not included on the list. The commercial casinos were only just getting back on their feet when the new order came down, and all of the gains they saw recently will be undone. 

In September, the three venues reported gross gaming revenue (GGR) of $70.5 million – not bad, considering they were only operating at about 50% their normal capacity. That figure is roughly 87% of what had been seen a year earlier, and shows the pent-up desire to gamble that had been percolating in Massachusetts during the previous shutdown. 

The U.S. sports gambling market is about to get a little more crowded. PlayUp, an Australia-based operator, announced this past July that it was interested in dropping in on the U.S. market, and views it as a potential gold mine waiting to be tapped. It already started making headway and, to help it reach its expansion goals, it went out shopping for money. PlayUp has now revealed that it succeeded, indicating that it picked up $25 million through an oversubscribed capital placement. 

PlayUp already has a hand in the online sports gambling markets of Colorado and New Jersey and will continue to pursue new agreements, especially as it now has deeper pockets from which to draw funds. Dr. Laila Mintas, who was appointed CEO of the company’s U.S.-focused operations this past summer, explains, “We have made great progress in the U.S., the market is being legalised state by state and PlayUp will be one of the first movers making sure we secure market access rights from the beginning. Through our strong presence and dynamic products, we will shape the future of this market. The raise allows PlayUp U.S. to rapidly progress our business.”

The money-grab reportedly found support from investors across the globe, all eager to capitalize on the possibility to benefit from the growing sports gambling market in the U.S. That market is currently worth around $17 billion, and is expected to reach 50% more within the next couple of years. The non-renounceable entitlement offer provided to the investors is showing the company’s confidence, as well as that of investors, that there is still a lot of money waiting to be made with sports gambling. Daniel Simic, PlayUp’s CEO, states, “Our investors are incredibly supportive and importantly, they are endorsing our vision with their money and bring significant international business networks that allow us to deliver on our business goals.”

PlayUp first gained access to the U.S. market when it partnered with the Bull Durham Casino in Black Hawk, CO. It also has a foot in the door in New Jersey, but has not yet taken its operations live in the state. Next on tap could be Illinois, and the fact that a handful of states are currently deciding if sports gambling should be allowed within their borders means there are still plenty of options on the table. PlayUp focuses on the online sports gambling segment, the more lucrative of the options, which makes it easy to ramp up operations while keeping expenses to a minimum. In addition to its home country and the U.S., it also has licenses to operate in India and New Zealand.

Macau has already taken a nasty hit from COVID-19, with gross gaming revenue (GGR) levels at its casinos flatlining for parts of the year. The chances of making a quick recovery from the pandemic have been hampered by sporadic outbreaks of the virus in certain feeder markets for the city, and it has already been projected that Macau will need a couple of years to get back to where it was before COVID-19 struck. That prediction could be extended even further, however, and the Macau government believes that next year isn’t going to bring any major relief. 

Macau has presented its budget proposal for 2021 and indicates that the “harsh” conditions brought about by COVID-19 are weighing heavily on the city’s casino industry. As a result, it anticipates that the GGR the gambling venues collect will only be around $16.28 billion, which is 45% lower than they were last year. With 2020 seeing months that brought GGR that was as much as 90% lower than in 2019, the chances of putting the gambling market back together quickly are weakened. 

Macau’s government typically errs on the side of caution when presenting its budget proposals, but recovering 45% would be a difficult task. The city currently hopes to take in around $5.69 million in gaming-related taxes in the upcoming fiscal year, a figure that could be boosted by improved performance and the effective tax rate, which stands at around 40%. City leaders had that Macau is looking at the possibility of a “structural fiscal deficit” due to its “narrow tax base” and “increasing expenses but no rise in income” that will keep it in the red for the second consecutive year. 

The weakened forecast could ultimately precipitate changes in Macau. There are already plans in the works to diversify the city’s tourism efforts, and these plans might be sped up going forward. Angela Leong, the co-chair and executive director of casino operator SJM Holdings, understands the necessity to alter the city’s paradigm to attract a wider range of international tourists and said during a gaming seminar this week, “We’re now seeing a certain increase in gambling revenue but under the current circumstances we can’t expect too much other than to strive for stability. I believe that all concessionaires are now thinking about switching their current development methods to strengthen the development of non-gaming elements. Some [gaming] measures also need to be changed.”

[Image credit: Wikimedia Commons]

If it were up to Adam Bell SC (Senior Council), he might perhaps yank Crown Resorts’ casino license. The legal adviser has been assisting New South Wales (NSW) as it looks into whether the casino operator was worthy of continuing to hold its license and Bell said this week that Crown was “not suitable” as a licensed operator. While the decision isn’t final, it paints a dark picture for Crown, but the company also has a chance to turn things around and get on the right track. 

Crown came under fire for several discrepancies recently, including accusations that it facilitated money-laundering activity and let war criminals gamble at its casinos. As the investigation has continued, more damaging news surfaced, especially against its former chairman and current largest shareholder, James Packer. Bell had reviewed all of the information submitted over the past 48 days of public hearings and presented his findings to the NSW Independent Liquor and Gaming Authority (ILGA), which he told, “We submit that the evidence presented to this inquiry demonstrates that the licensee is not a suitable person to continue to give effect to the license and that Crown Resorts is not a suitable person to be a close associate of the licensee.”

Bell asserted that there were “failures in Crown’s culture, its risk management and compliance processes,” and that the company’s continued attempt to deny any wrongdoing only exacerbated an already precarious stance regarding whether the company should hold its license. The results could have an impact on Crown’s attempt to build its massive, billion-dollar casino in NSW, and could ultimately jeopardize its ability to hold a license anywhere in the country. 

South Shore Holdings may soon no longer exist, at least not in its current form. The casino operator had big plans for The 13 hotel in Macau, expecting to turn it into a large resort that would ultimately compete with the incumbent venues. However, circumstances proved to be a challenge and The 13 has never fulfilled its dream. As a result, a couple of board members were already forced out by a shareholder, and that same entity is now pushing for the company to be dissolved. Global Allocation Fund (GAF) has requested a Special General Meeting (SGM) of South Shore shareholders, and the company has no option but to oblige.

GAF is requesting that shareholders respond to its request that the company be “wound up pursuant to bye-law 164(2) of the Company’s bye-laws and the relevant provisions of the Bermuda Companies Act 1981,” according to a South Shore notice (pdf) from today. That section of the bye-laws indicates that a company can be “wound up,” or liquidated, either voluntarily or through a court order. To begin the process, shareholders have the right to discuss whether any liquidation is warranted.

The 13 has been a black eye for South Shore for the past couple of years and has never realized its full potential. The company has tried, unsuccessfully, to sell the property in order to help reduce its debts, and its most recent attempt fell through in September. It now hopes it can remove The 13 from its books before the end of March, but that may be difficult under the current COVID-19-induced economic reductions. 

GAF holds right at 10% of South Shore, giving it the legal right to call the SGM per South Shore’s bye-laws. It informed the company last month of its intentions, with South Shore indicating that GAF explained that the move was needed to address “the net liabilities position of the Group, the suspension of operations of the Hotel and the poor performance of the Hotel generally.” It added, “[GAF] expresses its belief that the remaining value in the Company will best be maximized with an independent unwind process supervised by a court.”

While markets contract around the world, battling the COVID-19 pandemic the future is bright in Latin America (LATAM) according to BtoBet CEO Alessandro Fried. Fried believes that the LATAM market is the perfect springboard into the African market, with companies like BtoBet well placed to take advantage of emerging technologies in that part of the world. Fried sat down to share the possibilities he sees for the LATAM market with our very own Becky Liggero Fontana.

Fried believes that the LATAM market has the potential to be the next California during the gold rush – exciting, unpredictable but also an endless realm of possibilities for the gambling industry. “We thought that it’s still a very good moment to increase our presence in Latin American and Africa,” Fried said.

[youtube https://www.youtube.com/watch?v=0Mxut0CmZRc]

To that end, BtoBet has made big investments in growing regions. “We become the leader in Africa and Latin America and we have grown our presence massively in almost all of the different countries, we’ve acquired a lot of knowledge over the years and we’ve made an effort to share that knowledge.”

Dr. Craig Wright appears to have claimed victory in his legal battle with podcaster Peter McCormack. The latter has seemingly abandoned his defence in a lawsuit over whether or not Dr. Wright is indeed Satoshi Nakamoto, creator of Bitcoin.

Our sister site CoinGeek reports the news comes from Dr. Wrights solicitors. “SCA ONTIER LLP, Dr Wright’s solicitors, have confirmed that Mr McCormack’s legal representatives have informed them of their client’s intention not to continue defending the libel proceedings, which proceedings will now continue to their natural conclusion.”

Dr. Wright had filed a libel claim against McCormack after the podcaster publicly accused the former of fraud. That attack was made in reference to Dr. Wright’s claim to have been the man behind the Satoshi Nakamoto pseudonym, and thus the man who wrote the Bitcoin White Paper and launched it in 2009. Dr. Wright started the libel suit with the hopes that a court case would conclusively prove his claim.

The case had not gone well for McCormack. In August, 2020, the court denied his request to delay discovery, and ordered he pay some of Wright’s court costs. Things got worse last week when Tether, who had been financially backing McCormack, stopped funding his case, perhaps leading to this latest development. It was speculated by CoinGeek that perhaps something Tether saw in the discovery phase of the case may have been their reason for backing out.

Spain has made good on its threat to prohibit most forms of online gambling marketing, a move that critics say will fail to achieve the government’s goal of protecting consumers.

On Tuesday, Spain’s Council of Ministers approved the Royal Decree on gambling advertising, which will restrict commercials on television/radio/YouTube to a narrow window of 1am-5am, eliminate gambling sponsorship of sports bodies and limit operators offering bonuses only to customers who have already made at least three deposits.

The new rules will take effect on a staggered basis, with existing football sponsorship deals recently grandfathered through the end of the current season. Existing marketing campaigns featuring athletes or other ‘famous’ figures will be allowed to extend until April 1, 2021, after which celebrity endorsements will no longer be permitted.

Similarly, existing online advertising contracts with third-party portals will be allowed to continue through May 1, 2021. After that, operators will only be allowed to promote via their own gambling sites, although promos can still be pushed out to operators’ social media followers provided those platforms employ age-related filters.