Hawaii has made an unexpected entry into the US online gambling discourse as a new bill offers to implement a limited form of online gambling in 2024. Despite not being a likely candidate for gambling expansion, Senator Ronald D. Kouchi has introduced bill SB3376, proposing the creation of a single-operator market for online poker and sports betting.

Legalized Gambling Could Solve Several Issues

The proposed bill establishes the Hawaii Gaming Control Commission (HGCC), consisting of seven part-time members appointed by the Governor. It aims to regulate online-only gambling, keeping Hawaii free of any regulated retail gambling. The HGCC would be responsible for selecting a single operator for licensing, with a 10-year renewable license, prioritizing ease of regulation.

Senator Kouchi’s legislation aims to address the tens of thousands of Hawaii residents engaging in illegal online gambling, often on offshore platforms. The bill argues that a regulated market would capture lost revenue and benefit the state and its citizens. Hawaii urgently needs extra income, especially after the 2023 wildfires, as it still struggles to recover from the disaster.

The selected licensee may offer sports betting and online poker but not casino games. The financial terms involve a unique profit split, starting at 70% for the state and 30% for the operator in the first year. This ratio gradually shifts in favor of the operator by 5% each successive year, reaching a minimum of 5%.

The Bill’s Future Remains Uncertain

While Hawaii’s proposal is unique in structuring the revenue split and proposing online poker without casino games, the bill faces several immediate issues. The state’s small population size and the niche nature of poker could make it less attractive to operators. The bill omits any references to negotiations for interstate compacts, leaving questions about sustaining online poker traffic.

Hawaii’s strategy mirrors past proposals in Kentucky that prioritized sports betting over poker due to broader appeal and potential revenue. Mounting financial pressures mean the legislation has very ambitious timing, aiming to become effective on 1 July 2024. This timeframe gives the HGCC 120 days to accept applications and an additional 90 days to select a winning candidate, setting a probable market launch in the first half of 2025.

House sports betting bill, HB 2765, does not yet have a hearing date, making its fate even more uncertain. It reflects a continuing trend of states exploring online gambling as a source of revenue and regulatory control. Industry experts are keenly observing the situation to see how Hawaii’s unique approach will fare in the legislative process.

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The Malta Gaming Authority (MGA), whose purpose is to regulate gaming industry sectors by ensuring fair and transparent gaming, crime prevention, and the protection of minors and vulnerable players, has placed a Cancellation of Authorization number ‘MGA/ B2C/425/2017’ against Arabmillionaire Limited. 

The latter will need to notify its players of the new development and provide fund withdrawals to any current players, together with clear guidelines on the procedure. They will also need to send a transaction report to the MGA and settle an outstanding fee of €50,000 ($52,708) within five days from the date of receipt of their letter.

The Initial Notice, Filed in August 2022

The initial Notice of Cancellation was issued by the MGA on August 4, 2022, and offered the company 20 days to “show cause” as to why the regulator should not enforce the measure that was highlighted in the respective Notice, according to reg. 10 (2) (a) of the Gaming Compliance and Enforcement Regulations (S.L. 583.06).

Following the issuance of the Notice, Arabmillionaire and its consultants informed the MGA of the “major restructuring exercise” it was undergoing while requesting, among other things, a freezing of its license with the intent to finish and settle all outstanding problems.

Pursuant to these submissions, and in spite of the several different breaches that constituted grounds for authorization cancellation, the MGA decided to suspend the Arabmillionaire’s license on October 12, 2022, as a means of offering the company the chance to rectify its standing with them.

The MGA, whose 2022 report reflected on a troubled year, also informed Arabmillionaire they would initiate the cancellation of its license in case it would not remedy its breaches and settle all outstanding payments to both the MGA and its registered players while providing “full assurance” that it is capable of holding the authorization and operating under its terms. 

Arabmillionaire, Given “Ample Time” to Address the Issues

Arabmillionaire chose not to appeal the MGA’s license suspension decision. In spite of being offered “ample time” to tackle the breaches, the company did not “rectify its position and cooperate” with the MGA. 

The authority also explained that all its attempts to communicate with the company following November 2022 “have been rendered futile” and that their breaches never stopped. 

The MGA stated that, in addition to the payment of the outstanding license fee mentioned in their Notice, Arabmillionaire’s license fee for the year 2023 fell due on June 13, 2023, during the operative period of the license suspension. 

Accordingly, the MGA considers Arabmillionaire owns an additional amount of €25,000 ($26,350), totaling €50,000 ($52,708) in annual license fees for license periods starting June 13, 2022 and June 13, 2023, respectively.

The MGA also reserves the right to take additional measures to recover the outstanding dues from the company provided they would fail to “rectify accordingly” and also in case they would not settle all outstanding claims from all registered players.

In June, the authority announced it would push for the implementation of fresh legislation that would protect the country’s online gaming companies from global prosecution. 

At the start of the year, the same regulator brought significant changes to its Player Protection Directive, asking licensees to monitor harm-related markers. 

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The Netherlands’ gaming authority, Kansspelautoriteit (KSA), continues its vigilant watch over the Dutch market. In one of its latest announcements, the regulator revealed that it has imposed a fine of EUR 2,074,000 (around $2,180,000) on the gambling operator LCS Limited.

According to the KSA, LCS offered gambling illegally, targeting local customers through its www.sonsofslots.com brand. Citing this as a violation of the Netherlands’ Gambling Act, the regulator noted that this is not the first time LCS has received a penalty.

In August 2022, the KSA handed a EUR 165,000 fine to the gambling company, asking it to immediately cease its unauthorized operations and leave the Dutch market.

The current fine is in line with the KSA’s current fine policy, which takes over a number of factors, including gambling operators’ local turnover.

Jansen Says Operators Aren’t Safe Just Because They Have Gone Dark

The Kansspelautoriteit’s chairman, René Jansen, commented on the new fine, highlighting the usual efficiency of such measures. However, he noted that some unlicensed operators are not safe when they “go dark,” warning that companies’ past violations can also be punished.

Jensen added that the KSA would regularly check whether unlicensed operators have truly ceased their unregulated activities. The regulator’s job is to diligently make sure that such services aren’t re-introduced.

The Kansspelautoriteit’s announcement reminded gambling companies that only companies with a license from the regulator are allowed to offer gambling in the Netherlands. The authority also reminded companies that they must follow the safer gambling protocols outlined by the KSA and make sure that their players are protected from gambling harm.

KSA Report Outlined the State of Gambling in the Country

In other news, the KSA just published its latest industry report, outlining the state of the gambling industry in the Netherlands. The regulator reported that growth is slowing down as the local market levels off.

At the time, the regulator announced that there are around 676,000 active players in the country, two-thirds of which gamble at least once a month. The total number of players and active accounts has more or less remained stable during the last few months.

In addition, the KSA’s efforts to crack down on unlicensed gambling and channel players toward licensed operators have been paying off as attested by the latest figures. According to the report, the KSA has successfully channeled a stellar 93% of players toward licensed operators, in line with its goal of having 8 in 10 players gamble legally.

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The gambling regulator in Malta, the Malta Gaming Authority (MGA), announced a new sanction against a license holder in the country. The regulatory watchdog revealed Friday that it decided to suspend the authorization of SFJL Holding Limited. At the time of the announcement, the MGA said that the authorized company is no longer allowed to conduct any gambling activities. This is in effect throughout the suspension’s operative period, explains the MGA in a statement.

Judging by the latest announcement, the suspension comes after the regulator claimed it uncovered multiple breaches by SFJL Holding Limited. The Authority said that the operator breached multiple provisions within regulatory condition 9 of its established regulations.

The MGA claimed that the operator breached provisions 9 (1) (c), 9 (1) (k) and 9 (1) (j). Describing the alleged breaches, the MGA said that 9 (1) (c) relates to failure to “comply with one or more applicable obligations in terms of any regulatory instrument or any other applicable law of Malta.”

On the other hand, 9 (1) (k) of the regulations refers to failure to seek approval from the MGA for a material change in cases where such approval is required or the failure to notify the gambling regulator for such material change where such notification is needed.

While the suspension prevents SFJL Holding Limited from conducting any gaming operations for the duration of the suspension, the company has the option to file an appeal.

The Gambling Regulator Remains Vigilant

The latest sanction imposed by the MGA comes after last month, the regulator issued another suspension of the authorization of another gambling operator. At the time, the regulator said that it suspended the authorization of Tipster Limited, effectively stopping the licensee from offering gambling activities. This suspension came on the grounds of the company “being wound up” and was in accordance with reg. 9 (1) (f) of the established Regulations, explained the gambling watchdog at the time.

Before that, in June, the MGA imposed a tough regulatory sanction against the Malta-based iGaming and betting operator, MKC Limited. The tough sanction was a cancellation of the operator’s license, which effectively stopped it from providing online betting and gaming activities. The sanction came during a difficult time for MKC after its Betworld247 brand was asked to exit the regulated gambling market in the Netherlands.

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The UK Gambling Commission (UKGC), the gambling regulator in the country, is tasked with monitoring the compliance of gambling licensees. The work of the commission includes not only monitoring but the implementation of penalties whenever breaches to the established regulations are observed. In addition to fines, the UKGC has the power to suspend or revoke licenses for serious offenses.

Now, the gambling watchdog unveiled details regarding a monetary sanction imposed against the gambling operator Star Racing Limited trading as Star Sports. On Thursday, the Commission revealed it uncovered breaches by the company relating to anti-money laundering (AML), as well as social responsibility. According to the Gambling Commission, the breaches occurred between March 2020 and May 2021.

Describing the breaches, the gambling regulator said that it found that Star Sports breached Paragraphs 2 and 3 of license condition (LC) 12.1.1 which are related to AML and the prevention of money laundering and terrorist financing. Additionally, the gambling watchdog said that the operator breached License Condition 12.1.2 which requires foreign jurisdiction-based operators to comply with the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017.

Last but not least, the UKGC said that Star Sports failed to comply with Paragraphs 1 and 2 of the Social Responsibility code provision (SRCP) 3.4.1. The aforementioned paragraphs require gambling operators to interact with their customers to help prevent gambling harm or associated risks.

Due to the described breaches, the Commission said it imposed a monetary penalty of £594,000 ($776,400) against Star Sports. The company also received a warning and saw the addition of an extra condition to its license. The additional conditions to its license will demand the operator to “conduct risk-based due diligence on the third parties it transacts with,” explains the UKGC.

The Gambling Regulator Continues to Monitor the Market

The latest fine and warning come after the UKGC recently imposed a hefty fine against Videoslots. In mid-June, the regulator announced it uncovered breaches related to AML and responsible gambling practices. As a result, the licensee was hit with a substantial £2 million ($2.53 million) financial penalty.

Before that, in May, the Commission unveiled details regarding an investigation into PPB Counterparty Services Limited, trading as Paddy Power and Betfair. That probe uncovered deficiencies related to marketing, which resulted in a £490,000 ($606,300) fine against PPB Counterparty Services Limited.

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Digital sports media group Better Collective has acquired Skycon Limited, a British global display advertising company, in a $57 million deal (converted to USD). The new acquisition will help the former company cement its leading position in sports media, helping it improve its advertising efforts.

Skycon Limited was founded in 2017 and is a Newcastle-under-Lyme-based company that specializes in display advertising. What sets Skycon apart from other brands is its audience-based approach to advertising.

As agreed, $31 million will be paid upfront, with up to $25 million to be paid in earn-outs. Better Collective said that the new acquisition will greatly complement its existing Paid Media approach with a “search engine-based” approach. The deal will therefore expand Paid Media’s addressable market and further increase the value it brings to Better Collective clients.

Upon announcing its plans to integrate Skycon Limited into Paid Media, the sports media group also noted that it plans to boost the advertiser’s growth with cross-selling synergies. At the same time, Better Collective will improve its own operational synergies.

Better Collective noted that Skycon has worked with only one sportsbook, which will change following the acquisition. In addition, the digital media group will expand its newly-acquired subsidiary’s geographical scope in key markets such as the US. It was also noted that Skycon will be used on the AdTech platform that Better Collective is in the process of building.

Better Collective Improved Its Financial Targets

Following the new deal, Better Collective updated its financial targets for the year. With Skycon Limited consolidated into the group, Better Collective expects revenue of $335.5-346.5 million (previously $319-$330 million).

The latter company also forecasts EBITDA before special items of $104.5-$115.5 million. For the moment, Better Collective does not predict a net debt to EBITDA change.

Better Collective’s co-founder and chief executive officer, Jesper Søgaard, commented on the new acquisition. He noted that his company has invested a lot in growing its Paid Media division to its current scale. At the same time, the CEO noted, the company also invested in moving revenues to recurring revenue share contracts.

During the past year, our efforts have proven successful and acquiring Skycon will be highly synergistic to this journey. Skycon is a great business, which is built on Better Collective’s favored revenue share model.

Jesper Søgaard, co-founder & CEO, Better Collective

Søgaard called Skycon a “perfect fit” for Better Collective and said that he sees a clear path for further growing the asset and scaling it across more of its business partners in many markets.

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The New York State Gaming Commission recently opened the application bidding process for three new downstate casino licenses, and the list of applicants continues to grow. Bally’s is the latest operator to submit its proposal. While the operator’s project seems sound, it will have to compete with other industry heavyweights sporting equally compelling propositions.

The Operator Has Made Extensive Plans

Bally’s proposed new casino will occupy part of Ferry Point’s Trump Golf Link. The plans place the new establishment in a prime location in the Bronx, occupying 17 of the course’s 192 acres. The operator has already reached an agreement with the Trump Organization, which gave its approval for the $2.5 billion casino project.

If Bally’s successfully secures one of the coveted licenses, it will gain the right to remove the former president’s name from the golf course, hopefully avoiding any negative associations. Bally’s Corporation chairman Soo Kim stated in an interview for the New York Times that the company was ready to proceed as soon as it received a license.

We have the right to exercise our option at any time to make a payment and essentially step into their lease.

Soo Kim, Bally’s Corporation chairman

Building a casino at Trump Golf Link presents several hurdles despite initial arrangements. Since the property is still under lease with the city, Bally’s will need to secure regulatory approval to repurpose the land. Furthermore, the course stands on a former landfill, which could complicate the construction process.

All These Preparations May Be for Naught

The above considerations would still be pointless if Bally’s does not secure one of the three available New York casino licenses. The operator will have to compete with established and successful venues like MGM-owned Empire City Casino and Resorts World New York City, which can easily upgrade. Industry heavyweights like Caesars Entertainment and Wynn Resorts have also expressed interest.

Overall, at least ten companies have entered the contest with a spattering of projects varying in size and scope. For example, integrated resorts company Las Vegas Sands recently announced plans for a new multi-billion-dollar integrated casino project in Nassau County, western Long Island. The NYGC has kept quiet regarding their preferred specifications, so Bally’s still stands a chance.

The company is in an excellent position to pursue expansion opportunities, explaining its New York hopes. The recent preliminary Q4 and full-year results showed record profits in the Casinos & Resorts sectors, encouraging investments into these verticals. The operator’s project for a new $1.7 billion flagship casino in Chicago is proceeding as planned, recently clearing another big regulatory hurdle.

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