Proponents of the California sports betting initiative have submitted crucial amendments to their proposal to the state attorney general. The revised initiative not only addresses concerns raised by tribes and regulators but also introduces key changes that promise to enhance revenue sharing and inclusivity among California’s diverse tribal communities.

California Sports Betting Initiative’s Key Transformations

One of the pivotal alterations includes an increase in the revenue share for limited- and non-gaming tribes, a move that aims to rectify the disparities among different tribal groups. The amended initiative eliminates provisions that larger tribes found problematic, fostering a more unified stance among stakeholders.

The original proposal faced criticism from three California Indian tribes in 2021, who highlighted concerns related to offshore online gaming operators. In response, the proponents removed the contentious provisions, demonstrating a commitment to addressing the specific needs and worries of the tribal leaders.

Key modifications in the finalized initiative involve a boost in the percentage of operator revenue allocated to Revenue Sharing Trust Fund (RSTF) tribes to 25%. This replaces the previous 10% allocation to homelessness and mental health funding. 

Additionally, the initiative now limits the in-person sign-up requirement for online sports betting accounts to the first two years, allowing mobile sign-ups within a 10-mile radius of tribal casinos.

The initiative also introduces a five-year sunset for promotional credits, starting at 15% in the first year and gradually decreasing to zero. Furthermore, the start date for California online sports betting has been pushed to no earlier than July 1, 2025.

CNIGA Firmly Rejects California Sports Betting Proposals

Last month, the California Nations Indian Gaming Association (CNIGA) formally opposed two sports betting proposals, introduced by Kasey Thompson and Reeve Collins in October, aiming to regulate online and in-person sports wagering in the state. Following a vote by 52 CNIGA members, the association expressed irrevocable opposition, criticizing the handling of the initiatives and emphasizing the Tribes’ expertise in deciding what is best for their communities, urging the proponents to drop the proposals as promised in case of tribal opposition.

The next steps for the California sports betting initiative involve the state producing a fiscal estimate by December 18 and the attorney general releasing a circulating title and summary by January 2. Proponents, confident in tribal support, are prepared to fund the initiative entirely, from signature collection through the potentially costly ballot campaign, reinforcing their commitment to a zero-cost initiative for the tribes.

The California sports betting initiative, if successful, would amend the state constitution to permit sports betting on professional, collegiate, and select amateur sports. Tribal compacts with the state would include sports betting, and the initiative will legalize craps and roulette at tribal casinos.

The post Revised California Sports Betting Initiative Promises Increased Tribal Benefits appeared first on Keno Wizard.

The central government of Japan has greenlit a revised implementation agreement for Osaka’s integrated resort project. Compiled by the Osaka Prefecture and the MGM Resorts consortium, which are behind the project, the plan would allow a formal agreement to be signed later this month.

The approval was announced by Japan’s Minister for Land, Infrastructure, Transport and Tourism, Tetsuo Saito, last Friday. It follows the prefecture’s submission of a revised agreement earlier this month.

Under the revised agreement, the opening of the integrated resort will be further delayed to 2030. In addition, the initial investment in the property has been increased by $1.3 billion to a total of $8.6 billion. The agreement revisions came amid rising prices of construction materials.

The current approval means that the prefecture and the MGM Resorts consortium could sign the implementation agreement in September, securing the future of the highly-anticipated Osaka integrated resort project.

Depending on how the situation unfolds, construction of the main facility could start in spring 2025.

The IR Project Is Closer to Realization Than Ever Before

The MGM Resorts consortium is comprised of the international casino and hospitality giant MGM Resorts International and its local partner Orix Corp. The planned casino resort would be built on Yumeshima, an artificial island in Osaka Bay.

The property would include as many as 2,500 hotel rooms and some 730,000 square feet of MICE space and tourism facilities. The resort is expected to be a major driver of tourism and visitation, bolstering the local economy.

Some experts believe that the project could turn Osaka into a preferred destination for tourism, reflecting the effect similar projects had in places such as Singapore.

Despite all the arguments in favor of the resort, some groups remain unconvinced. A year ago, for example, an anti-IR group pushed for a referendum in hopes of squashing the project. Certain political groups also opposed the project because of various concerns.

In spite of the challenges, the Osaka IR project is now closer to realization than it has ever been, signifying an important triumph for its supporters. The success of this project can not only provide boons to the Japanese economy but may also change the country’s relationship with the gambling industry.

In other news, Osaka selected the business consultancy Deloitte Touche Tohmatsu for the provision of support services for the development of its upcoming integrated resort earlier this year.  

The post Japan Greenlights Revised Osaka IR Implementation Agreement appeared first on Keno Wizard.

Gambling industry analysts at Morgan Stanley believe that gambling in Macau is on the way to recovering, raising its gross gambling revenue (GGR) estimate for 2023 by 42% and 2023 EBITDA estimate by 70%.

Better Product Mix, Higher Margins

According to the note released by Morgan Stanley on Monday, the gambling industry in the Special Administrative Region (SAR) of China is about to deliver $22 billion in GGR and $5.8 billion in EBITDA in 2023. The new 2023 EBITDA estimate still falls short of the $9.3 billion in EBITDA in 2019 but is 30% above the industry consensus of $4.5 billion.

The main factors analysts Praveen Choudhary, Gareth Leung and Stephen Grambling cited for raising the 2023 GGR and EBITDA estimates are the better product mix and higher margins due to the return of Chinese customers.

Further, the investment bank estimates that there should be further industry improvements in 2024 when EBITDA will reach $9.6 billion to surpass the 2019 level mainly due to the revenue mix. For 2024, Morgan Stanley’s estimate is 17% above the industry consensus.

Justifying the revised estimates, Morgan Stanley analysts stated that the reopening of China resulted in additional revenue and profit for Macau operators in the first two months of the year which was not factored in the previous calculations as it was not expected.

Mass to Trigger Operating Leverage

Analysts believe that the sustainability of premium mass will be key to achieving pre-pandemic EBITDA levels in 2024 in the absence of junket business, claiming “that EBITDA margin will be 500 bps higher than in 2019 mainly due to operating leverage resulting from mass gaming reaching a certain level.

The team of analysts outlined two main reasons why their revised estimates for 2023 and 2024 are significantly higher than the industry consensus: the historical correlation of Macau’s mass segment with China’s nominal GDP, which exceeded in 2022 by more than 20% the 2019 level and could maintain a pace of between 4% to 5% annually going forward, and the infrastructure improvements related to the larger customs checkpoints and increase in hotel rooms by 4,000 new rooms during the pandemic.

Morgan Stanley analysts concluded that due to the revenue mix improvement EBITDA margin in 2024 could increase to 28%, as compared to 23% in 2019.

Earlier in the month, data released from the Macau government revealed that the casino industry in the SAR generated MOP11.58 billion ($1.44 billion) in January, an increase of 82.5% year-over-year and its highest monthly in three years, sparking optimism that a solid industry recovery is underway.

The post Morgan Stanley: Macau 2023 GGR and EBITDA Revised Upwards appeared first on Keno Wizard.