Legalization Efforts Prompt the Rise of New Sports Gambling Options

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More states are now introducing proposals and bills to further expand sports betting under new regulations, making online sports betting legal or removing certain restrictions. As the legal system slowly becomes more friendly towards online sports betting, states around the country turn towards the young and popular industry as a means for generating stronger tax revenue and improve budgets. For example, last year the progress made in Illinois in regards to online sports betting vastly expanded the mobile wagering options available to the state’s 12.7 million residents, helping the state to generate millions. According to data from Odds.com, which was published by Forbes, Illinois was poised to generate upwards of USD 73 Million in taxable revenue if the estimates of a USD 488 Million annual market come to fruition. The 15% tax imposed on gaming revenue could see this number rapidly increase once measures to allow online and mobile offerings are put in place. FansUnite Entertainment Inc., DraftKings Inc., GAN Limited, Wynn Resorts, Limited (NASDAQ: WYNN), Scientific Games Corporation.

States are now also anticipating a tax revenue bump from the Super Bowl this coming Sunday. According to The American Gaming Association, Americans are estimated to wager a total of USD 4.3 Billion on the highly anticipated matchup between Kansas City Chiefs and the Tampa Bay Buccaneers. Among Super Bowl bettors, a record 7.6 million will bet with online sportsbooks this year, up 63% year-over-year. “This year’s Super Bowl is expected to generate the largest single-event legal handle in American sports betting history,” said AGA President and CEO Bill Miller. “With a robust legal market, Americans are abandoning illegal bookies and taking their action into the regulated marketplace in record numbers.”

FansUnite Entertainment Inc. and Vancouver-based OneComply Inc. announced last month that they have, “entered into a partnership. OneComply, a compliance and licensing solution, will assist FansUnite as they enter additional North American legalized gaming jurisdictions by advising on protocol and strategy.

This move follows the June 2020 announcement by FansUnite of the amalgamation with Vancouver-based Askott Entertainment Inc. to create one of Canada’s leading online gaming companies, focused on sports betting, esports wagering, and casino games.

‘We are pleased to be partnering with OneComply as we look to tackle the North American gaming market,’ said Scott Burton, CEO of FansUnite. ‘As a licensed betting and iGaming company, we understand how difficult and nuanced the licensing process can be. With the help of OneComply, we will be able to streamline the process to enter new North American markets and showcase our suite of gaming solutions to a broader audience.’

The repeal of PASPA, being the Professional and Amateur Sports Protection Act, has created a wave of newly regulated States across the United States’ gaming market. Companies seeking to gain market entry into these States face massive regulatory processes to obtain operational licenses. The United States legalized gaming industry is State-regulated, meaning companies need to file for each jurisdiction independently. These individual disclosure filings can be thousands of pages in size resulting in substantial internal and external expenses.

‘The amount of opportunity in North America for new-to-market companies can be overwhelming given the various licensing processes and jurisdictional requirements, with companies no longer trying to enter one jurisdiction, but multiple jurisdictions simultaneously. This creates a tremendous amount of lag in productivity even with the most seasoned of compliance and legal teams,’ said Cameron Conn, CEO of OneComply Inc. ‘We understand the importance FansUnite places on regulation, and we look forward to supporting them scale in the North American market.'”

DraftKings Inc. announced that it had reached an agreement with the National Football League (NFL) to expand their current daily fantasy sports (DFS) and content partnership to Canada. Previously, the landmark marketing and content deal between DraftKings and the NFL was limited to the United States. Today’s announcement of an expanded deal further deepens the relationship between the two organizations and enhances the DFS fan experience in Canada as the NFL season approaches the Super Bowl. “The relationship we share with the NFL is important for DraftKings to provide customers a great experience,” said Ezra Kucharz, Chief Business Officer at DraftKings. “This expanded agreement gives us a unique opportunity in the Canadian market, and we look forward to working with the team at the NFL Canada as we continue to shape the modern fan experience.”

GAN Limited announced last week that it has entered into a definitive agreement with the Seneca Gaming Corporation (“SGC” or “Client”) to provide Simulated Gaming solutions to SGC patrons across all properties on both desktop and mobile. The unique solution is powered by GAN’s core Simulated Gaming software and provides meaningful marketing, brand building and revenue opportunities for both operators and GAN. Seneca Gaming Corporation operates three casinos in New York on behalf of the Seneca Nation of Indians: Seneca Niagara Resort & Casino in Niagara Falls, Seneca Buffalo Creek Casino in downtown Buffalo, and Seneca Allegany Resort & Casino in Salamanca.

Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company’s Wynn Palace segment operates 424,000 sq. ft. of casino space with 323 table games, 1,011 slot machines, private gaming salons, and sky casinos. In recent years the Company also partnered with sports betting operators. For example, earlier in 2018, Wynn announced that it has entered into a strategic partnership with BetBull Limited (“BetBull”), a Europe-based digital sports betting operator, to pursue sports betting opportunities in the emerging U.S. market. The strategic partnership will position both parties to capitalize on the developing U.S. opportunity by combining Wynn Resort’s nationally recognized brand with BetBull’s digital sports betting operations capabilities and technology. In conjunction with the formation of the strategic partnership, Wynn Resorts will make a minority equity investment in BetBull. Wynn Resorts will own 22.5% of BetBull on a fully-diluted basis upon closing of the investment which will occur in due course subject to customary closing conditions. Moelis & Company LLC acted as financial advisor to Wynn Resorts.

Scientific Games Corporation announced back in December that it is partnering with Genius Sports Group, a leading provider of sportsbook management solutions, to provide in-game content to its wagering customers worldwide, excluding U.S. leagues. Sportsbooks operating on Scientific Games’ OpenSportsTM platform will gain access to Genius Sports Group’ LiveData and LiveTrading services, trusted by over 150 of the world’s largest wagering brands and fully customizable for every customer. Genius Sports Group and its sports betting division, Betgenius, created the market for official data across all tiers of sports and today offer partners access to official data for over 170,000 events each year.

SOURCE FinancialBuzz.com

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George Miller has started working in the gaming industry as an Editor/Content Manager in 2016 and since then he has acquired many experiences when it comes to interviews and newsworthy subject covering. In 2017, he became Head of Content and he is responsible for the editorial team, press release and story covering on multiple websites that are part of Hipther Agency, including EuropeanGaming.eu.

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