Internet casino gambling in the United States has a bright future ahead, according to industry experts and executives, who participated in this year’s SBC Summit North America. Despite a range of obstacles that are currently thwarting its expansion and concerns regarding its impact on brick-and-mortar casinos, the overall sentiment from the industry is positive.

Industry Executives Optimistic Despite Sluggish Uptake of iGaming

The progress of legalizing online casino gambling in the US has been slow but still a number of US states, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia, have already introduced it. Despite this slow uptake, industry experts and leaders believe that the future of gambling lies online.

Elizabeth Suever, a vice president at Bally’s Corporation, noted that consumers, particularly millennials, have changed their habits considerably and are more and more reliant on their smartphones for anything from shopping to banking services making their lifestyles predominantly mobile-centric. She added that this is where gambling is going to as well, reported the Associated Press.

However, these positive sentiments do not reflect the state of the market. Despite online sports betting being available in 38 US states and Washington D.C., internet gambling has remained very limited. Even Nevada, the Mecca of gambling, has only introduced online poker and no online casino games.

Controversy Amidst Hope: Addressing Concerns in US Online Gaming Expansion

Shawn Fluharty, president of the National Council of Legislators from Gaming States, highlighted that there is a significant disparity between the extensive growth of sports betting following the US Supreme Court’s landmark decision in 2018 and the next-to-non-existent expansion of online casino gaming. However, he also expressed optimism about the eventual uptake of igaming. 

Brandt Iden, a vice president at Fanatics Betting & Gaming, echoed this sentiment. He commented on how important it is to embrace online gaming for the industry as a whole in order to be successful. He also stressed that the industry has to make efforts to educate legislators regarding the benefits of legalized online platforms compared to illegal offshore gambling websites.

The industry’s stance may be positive, but there are still many concerns regarding the negative implications of the spread of iGaming across the US. These include fear of increased addiction rates and the cannibalization of revenues from physical casinos.

However, online gambling supporters argue that iGaming can complement traditional casinos and stimulate economic growth. Adam Glass, an executive at Rush Street Interactive, highlighted that there is a potential for new job openings and synergy between online and offline gaming operators.

The post Internet Casino Gambling in the US Gains Momentum Despite Challenges appeared first on Keno Wizard.

A former DraftKings executive is challenging non-compete agreements he signed with his employer. The legal case, filed by Michael Z. Hermalyn, Fanatics VIP’s president and former senior vice president of growth at DraftKings, was filed Thursday. In his lawsuit, the executive argues that the non-compete policies he agreed to with his former employer are unenforceable and overly restrictive in California.

Hermalyn initially joined DraftKings back in September 2020. His former employer learned about the lawsuit shortly after he submitted his resignation recently. Per Hermalyn’s non-compete agreement with DraftKings, he is not allowed to engage in employment within the gaming and betting vertical, an industry where he spent nearly two decades, a report released by Daily Journal reveals.

Additionally, Hermalyn is prohibited from working in gaming and fantasy sports along with other related industries or communicating with former co-workers or clients under a 12-month non-compete clause in his contract. Ultimately, the plaintiff anticipates a court’s decision that would enable him to void the aforementioned non-compete clauses, allowing him to engage in further employment in the sector.

“These sweeping provisions purport to prohibit Mr Hermalyn from being employed in the betting and gaming space in which he has worked for 16 years, from engaging in any work pertaining to fantasy sports, betting and gaming, and other various industries, and from communicating with his former clients and co-workers,“

reads the lawsuit filed by Michael Hermalyn

Supporting his statement that the non-compete clause is unenforceable, Hermalyn explained that before filing the lawsuit, he relocated his domicile to Los Angeles, California, where he entered into a rental agreement for an apartment and purchased a car. Moreover, Hermalyn said he plans to relocate his children to Los Angeles.

The Betting and Gaming Giant Responds to the Lawsuit

The leading betting and gaming company argued that Hermalyn’s lawsuit wasn’t filed properly in California. DraftKings cited a clause in the former employee’s contract where he agreed that a Massachusetts court would be in charge of litigation of disputes.

As a result, the gambling operator moved the case to the federal court, the US District Court for the Central District of California. In its response to Hermalyn’s legal claim, DraftKings asked the court to deny the plaintiff’s request. Moreover, the operator disputed the former employee’s “factual allegations.”

Recently, a young adult who engaged in cyber fraud against DraftKings dating back to 2022 was sentenced to 18 months in prison. The sentence came after the 19-year-old male pleaded guilty.

The post Former DraftKings Executive Challenges Non-compete Policy in Court appeared first on Keno Wizard.

Bally’s Corporation’s third-quarter trading report revealed consistent growth across most metrics, reflecting its successful efforts to adapt to rising industry challenges. The United Kingdom is emerging as an increasingly significant market for the renowned US gambling group despite the country’s ongoing regulatory changes. Such successful financial results should set the stage for further growth in the European market.

Recent Results Indicate Impressive Momentum

In an update to investors, the NYSE-listed company unveiled group-wide revenues of $632.5 million, marking a 9.4% year-on-year increase compared to Q3 2022’s $578.3 million. Bally’s International Interactive was one of the most significant contributors, reporting revenues of $243.9 million, a 7.2% rise from the previous year’s $227.6 million. The group’s UK operations were pivotal to this success, achieving a remarkable 13.1% increase.

Bally’s UK market share centers around the Gamesys Group, which the company acquired for over $2 billion in October 2021. This strategic move allowed the gambling giant to operate brands like Jackpotjoy, Virgin Casino, and Monopoly Casino. In September, Bally’s launched its branded online casino app, further bolstering its UK presence.

We believe that Bally’s brand will drive revenue and profit growth and build brand equity in the UK market.

Robson Reeves, Bally’s CEO

In a recent earnings call with investors, CEO Robson Reeves was confident that the company would sustain to exceed its current levels, hoping for even better Q4 performance. This quarter’s solid financials should allow the company to pursue growth opportunities in select international markets while reinvesting in its core UK and Asia businesses.

Flexibility Remains Paramount for Sustained Growth

Bally’s has maintained its impressive UK market share expansion despite the country’s ongoing regulatory changes. The UK Gambling Commission and the DCMS are currently engaged in consultations with stakeholders regarding the ongoing White Paper review. While more stringent affordability checks and KYC compliance requirements could impact revenues, Bally’s timely preparations allowed it to thrive.

Despite the company’s increasing focus on overseas projects, Bally’s maintains its leadership position in the USA. The gambling giant’s newest Chicago casino recently had a stellar debut, attracting over 80,000 visitors and generating approximately $6.7 million in revenue. Continued investments in promising projects across several states suggest that Bally’s will attempt to balance its core regions to achieve optimal results.

CEO Reeves was optimistic regarding the company’s long-term success, noting investments in its C&R segment should pay off in 2024 and bolster long-term profitability. Working within the UK’s tight restrictions has caused substantial innovation in customer onboarding and retention, reducing cost per acquisition and boosting deposit rates. These insights should benefit Bally’s other segments and help it stand despite rising competition.

The post Bally’s Reports Strong Q3 Performance amid Regulatory Challenges appeared first on Keno Wizard.

A recent report commissioned by the New Jersey Division of Gaming Enforcement (DGE) and conducted by researchers at Rutgers University reveals a notable decline in high-risk problem gambling in the state, even as sports betting continues to gain traction. 

New Jersey’s Problem Gambling Stays Three Times Higher Than National Norm

The report’s key findings indicate a decrease in high-risk problem gambling rates from 6.3% to 5.6%. However, the study highlights that New Jersey’s rate of problem gambling remains three times higher than the national average, persisting as a concern for state authorities.

Attorney General Matthew Platkin stated: “Through the release of this report, we are taking a comprehensive look at the pervasiveness of gambling across the state, and with it, we are able to better identify challenges for our most vulnerable populations and design programs and initiatives to assist them.”

The research, led by Dr. Lia Nower, J.D., Ph.D., indicates that sports betting saw a significant surge, with participation rates rising from 15% to slightly over 19%. Simultaneously, the study identified a shift in gambling patterns, with the percentage of individuals exclusively gambling online tripling from 5% to 15%. In contrast, those solely engaging in in-person gambling at casinos dropped from 76% to 49%.

Moreover, the report highlighted the increasing popularity of high-risk stock trading, with approximately 25% of participants involved, signifying a nearly seven-fold rise since the previous survey. This trend raised concerns among experts about the potential link between risky gambling behavior and financial trading activities.

New Jersey Takes Proactive Measures Against Problem Gambling

Dr. Lia Nower, from Rutgers University’s School of Social Work, Center for Gambling Studies, emphasized the significance of the report’s findings. She remarked: “This report provides evidence to guide prevention and education efforts for those at highest risk for gambling problems: Younger adults, members of ethnic and racial minority groups, and those who gamble on multiple activities and bet both online and in land-based venues.”

The report also highlighted correlations between gambling behavior and substance use, indicating that gamblers were more likely to use tobacco, alcohol, and illicit drugs, as well as report mental health problems.

In response to the findings, New Jersey has implemented various measures, including self-exclusion programs, advertising standards, and technological interventions to assist at-risk patrons. The state continues to evaluate these strategies in collaboration with responsible gaming organizations to curb the prevalence of problem gambling and promote safer gambling practices among its residents.

For example, in February, the DGE introduced a pioneering proactive approach to tackle problem and at-risk sports betting in the state, marking the first initiative of its kind in the US. The approach requires gambling operators to analyze player data to identify signs of at-risk or problem gambling.

The post New Jersey’s High-Risk Gambling Drops, but State Still Faces Challenges appeared first on Keno Wizard.

Despite legalizing and launching sports betting for a brief period, the activity remains on hold in Florida, at least for the moment. A prime reason for that is the ongoing legal battle by the state’s casinos with a contract inked by Gov. Ron DeSantis with the Seminole Tribe of Florida. Casinos alleged that the gambling compact was in violation of federal law.

Now, the latest part of the ongoing legal saga involves a petition filed by West Flagler Associates in the Florida Supreme Court. The petition, filed Monday, alleges that the gambling compact requires changes to the state’s constitution. This is because currently, tribal operators cannot offer gaming services outside of tribal lands.

Moreover, the petition explained that the Indian Gaming Regulatory Act is applicable for gaming activities offered exclusively “on Indian lands.” The legal document also claimed that the gambling compact signed in 2021 granted the Tribe a “monopoly to conduct off-reservation sports betting throughout the state of Florida without voter approval as required.”

Additionally, the petition reiterates West Flagler’s position that the Governor exceeded his authority when signing the gambling compact with the Seminole Tribe that ultimately granted it exclusive rights for in-person and online sports betting throughout the entire state.

“The 2021 Compact and Implementing Law are a clear expansion of casino gambling in Florida without a voter-approved constitutional amendment by citizens’ initiative, as required by Article X, Section 30. In so doing, the Respondents have exceeded their authority in direct violation of the Florida Constitution,“

reads the recently filed petition with the Florida Supreme Court

Legal Hurdle Continues

The ongoing legal battle continues to impact sports betting in the state which is currently on hold. Earlier this year, in June, the casinos in the state lost their federal case before a three-judge panel. Then, in August, West Flagler hinted at plans for an en banc hearing of its case. This process is different than a standard hearing or rehearing as it is before a majority of active service judges rather than the standard three-judge panel.

In 2021, Florida legalized sports betting. Thanks to the gambling compact that is currently involved in the legal hurdle, the state launched legal sports betting on November 1, 2021. Residents of Florida did not have a chance to enjoy sports betting for long as on December 4, 2021, a court ruled that the gambling compact was in violation of federal law. As a result, legal sports betting was put on hold while the legal battle continues.

The post Petition Challenges Sports Betting Compact in Florida appeared first on Keno Wizard.

Reality television stars Kim Zolciak and Kroy Biermann are facing dire financial straits, with mounting debts and an impending foreclosure on their Georgia mansion, according to court documents filed by Biermann. 

Debts Pile Up for Kim Zolciak and Kroy Biermann Amidst IRS Trouble

In the documents filed in Fulton County Superior Court, Biermann, 38, revealed that the couple owes the Internal Revenue Service (IRS) over $1 million in unpaid taxes dating back to 2013, 2017, and 2018. This shocking revelation comes on top of other outstanding debts, including a $400,000 lawsuit from BMW Financial and a $100,000 pending lawsuit from Capital One/Saks. Additionally, Biermann disclosed a lawsuit demanding repayment for a line of credit issued by a casino in the Bahamas, further exacerbating their financial troubles.

The couple’s primary concern revolves around their marital residence, a $3 million mansion in Alpharetta, Georgia. Biermann fears they are on the brink of foreclosure for the second time due to their inability to meet their financial obligations. He urged the courts to grant him permission to sell the property to avoid losing it to foreclosure, stating that it is their only asset.

Adding to their complex situation are the four minor children residing with them. Biermann filed a motion requesting the appointment of a Guardian ad Litem to protect the well-being of the children, citing the toxicity, which is currently present in their home as detrimental to their mental and emotional health.

Gambling Addiction Tore Apart Zolciak and Biermann’s Marriage

This financial turmoil is not the first setback for the couple. In October 2022, their Georgia mansion faced foreclosure after they failed to repay a $300,000 loan taken out on the property. Although they managed to avoid the auction block with a last-minute deal, their troubles continued to mount.

Their money problems escalated in May when it was revealed they owed $1.1 million in taxes, interest, and penalties to the IRS. Additionally, they allegedly owed the state of Georgia $15,000 for the year 2018. These financial challenges took a toll on their marriage, resulting in their initial divorce filing in May.

Amid public accusations and revelations of Kim’s gambling problem, they reconciled and withdrew their divorce petition in July. However, the reconciliation was short-lived, as Biermann filed for divorce a second time in August, stating that their marriage was unrepairable. He also sought sole legal and physical custody of their four minor children, as well as maintaining custody of Kim’s daughters, whom he legally adopted in 2013.

The post Zolciak and Biermann’s Financial Challenges Stem from Gambling Addiction appeared first on Keno Wizard.

Flutter Entertainment announced that its Alpha Hub startup partnership program is looking for fresh companies that are able to create innovative safer gambling solutions. The program’s goal is to shape a better future for gaming and society as a whole, in line with the Positive Impact Plan.

Flutter’s Positive Impact Plan utilizes the company’s global presence to achieve important sustainability goals. As a company committed to having a positive impact, Flutter helps communities “Do More.” By the end of 2030, the operator hopes to have improved the lives of no less than 10 million people through sport, play and its colleagues’ skills.

In addition, Flutter seeks to help its customers “Play Well” and is working hard to promote its Play Well safer gambling tools to its players. The company hopes that at least 50% of its players will use these tools by 2026 and 75% by 2030.

Flutter’s Positive Impact Plan is reflected in its Flutter Tech4Good Award and the Flutter & RGC: Play Well Challenge initiatives that are focused on responsible gambling and community support.

The Flutter Tech4Good Award initiative seeks to leverage technology to solve pressing social issues and appeals to startups at any stage from around the world to join the initiative. Flutter wants to collaborate with startups that are meeting the needs of disadvantaged groups and have a clear plan to measure the impact of their solution.

Flutter & RGC: Play Well Challenge is a collaborative effort with the Responsible Gambling Council (RGC) that seeks to solve real-world problems for the industry in partnership with promising startup companies. The challenge is seeking entrepreneurs and startups that want to create a better customer experience for everyone.

Flutter Desires to Make a Change

Conor Lynch, CIO at Flutter, commented on the Flutter Tech4Good Award and Play Well Challenge initiatives, saying that they align with the company’s ambitious targets. He added that the company plans to provide full support to promising startups that can make a change.

As part of this, we want to utilize our global scale and in-house talent to support the innovative startups that are developing technology that enhances consumer protection and drives positive change in the communities in which we operate.

Conor Lynch, CIO, Flutter

Meanwhile, Shelley White, chief executive officer of the Responsible Gambling Council, said that her team is proud to join Flutter for the Play Well program and work to minimize the negative impact of gambling-related harm.

The Flutter & RGC Play Well Challenge has the ability to drive real change in Responsible Gambling, globally, and ultimately create a safer gambling experience for millions of people.

Shelley White, CEO, RGC

Startup companies can find more information on how to apply on Flutter’s official website.

The post Flutter Seeks Startups Able to Improve the Gaming Sector and Tackle Societal Challenges appeared first on Keno Wizard.

PENN Entertainment has posted a report on its financial performance in the first quarter of the year, highlighting a modest revenue increase and a substantial net income rise.

As reported by the company, its revenues for the period increased by 7% year-on-year to $1.67 billion in Q1, 2023. In addition to that, the company reported a net income of $514.4 million, alongside a net income margin of 30.7%. For comparison, in Q1, 2022, the company reported a net income of $51.6 million with a 3.3% margin.

Adjusted EBITDAR during the period was $478.2 million, representing a 3.3% YOY decline. Meanwhile, adjusted EBITDAR margins declined by 300 bps year-on-year to 28.6%.

Adjusted EBITDA, on the other hand, was $332.2 million, representing a 23.6% YOY decline.

VIP Activity Delivered Stable Results

In Q1, PENN Entertainment was able to launch online sports betting in both Massachusetts and Ohio, two of the USA’s freshest wagering markets.

In addition to that, the company said that it has successfully repurchased $50 million of common stock at an average price of $30.36, as outlined in its February 2022 Share Repurchase Authorization.

Most of the company’s revenues came from the spectacular performance of its retail vertical. VIP players and older demographics were instrumental in driving PENN revenues, the company pointed out.

The quarter also saw PENN complete its acquisition of Barstool Sports, which it now plans to grow.

In addition to running its business, PENN remains committed to various social responsibility initiatives, such as supporting its customers, black people, women and other mistreated demographics.

CEO Snowden Praised the Results

Jay Snowden, the company’s president and CEO, commented on the results, saying that he is pleased to report another robust quarterly performance despite the macroeconomic headwinds. He noted that the company has raised its 2023 revenue guidance and now expects between $6.37 billion and $6.81 billion. The EBITDAR guidance range remains unchanged at $1.875 billion – $2 billion.

Snowden added that the company’s retail business performed well but the EBITDAR margins were negatively impacted.

Growth in our older demographics and VIP play led to largely consistent performance across the majority of our retail properties. However, the regional shift in our gaming revenues year-over-year to higher-taxed jurisdictions, and to a lesser extent, the settlement of certain property litigation matters, negatively impacted retail EBITDAR margins by approximately 100 basis points.

Jay Snowden, president & CEO, PENN Entertainment

PENN added that its total liquidity at the end of the quarter was $2.3 billion, including $1.3 billion in cash and cash equivalents. Traditional net debt as of March 31, 2023, was $1.4 billion.

The post PENN Entertainment Posts Decent Q1 Results despite Economic Challenges appeared first on Keno Wizard.

GambleAware has probed into gambling stigma, realizing that three in four people suffering from gambling harm are afraid to open up to their loved ones. The study confirmed that stigma is a serious problem that prevents people from seeking help.

Furthermore, one in four people think they know a person who has experienced problem gambling. However, 61% of these people do not wish to talk to them because of the stigma.

GambleAware has also commissioned additional probes into people’s attitudes and perceptions of gambling harm. As it turns out, 62% of the people who know problem gamblers would negatively judge them. Despite that, 56% agree that stigma should be challenged.

GambleAware reiterated that gambling harm can have serious lasting effects on people’s mental health and relationships. Seeking to address this, the charity has launched a new public health campaign, hoping to reduce the stigma associated with problem gambling.

The new campaign will leverage ex-problem gamblers who will share their experience to try to “change societal perceptions and understanding of the issue.”

GambleAware’s Initiative Is Backed by Health Professionals

Zoë Osmond, GambleAware’s chief executive officer, commented on the matter, saying that gambling harms tend to be hidden because many people feel embarrassed to talk about them. She noted that no one is safe from such harm, which is why it is important to break down the stigma and address the issue.

Dr Dame Clare Gerada, president of the Royal College of general practitioners, agrees with Osmond on that matter. She noted that problem gambling can manifest itself in various ways, including mental or physical health issues. General practitioners and the health sector as a whole, Gerada believes, should be able to better help people affected by harm.

Dr Ellie Cannon also spoke on the matter. As a general practitioner, she has already worked with patients seeking support for gambling harms. Cannon understands how challenging tackling such conditions can be and hopes that society will “challenge its outdated attitude towards gambling harms and those who experience them.”

The Charity’s Allies Know the Dangers of Gambling Harm

In the meantime, GambleAware has teamed up with Tyler West, a TV and radio presenter whose brother has experienced gambling harm for several years. West knows how destructive such harm can be and understands that stigma is an obstacle to helping people in need.

Meeting others who have been impacted by gambling harms, like my brother was, has really opened my eyes to the stigma attached to an issue that is very close to my heart and how common it is. We need to do something about this.

Tyler West

GambleAware and West worked on a film featuring lived experience individuals. He worked with the leading stigma expert Dr Joanne Lloyd who is just as aware of the dangers of stigma.

Opening up a dialogue is often the first step towards getting help. We know that stigma represents one of the main barriers preventing people experiencing harm from reaching out for support, and so it is essential that we take collective action to tackle this societal issue.

Dr Joanne Lloyd

The charity has also partnered with other organizations seeking to mitigate gambling harm in the United Kingdom. As a part of its ongoing campaign, GambleAware seeks to create a united front of companies from the private, third and public sectors.

Dame Clare Moriarty, chief executive officer of Citizens Advice also shared her thoughts. She noted that harm can affect anyone but people on lower incomes and those living in deprived communities are at a higher risk. She hopes that, with the help of GambleAware, her team will be able to make a change.

The post GambleAware Campaign Challenges Gambling Harm Stigma appeared first on Keno Wizard.