USA

BetMGM Michigan’s Top Performer in Online Casino Market

February 21, 2024 William Mcmaster

Michigan continued its impressive start to online gaming in May. According to numbers from the Michigan Gaming Board, online casino operators in the state raised $94.9 million for May, a figure which put the state among the best in the country. Online casino operators paid state taxes worth $18.1 million, along with $5.2 million paid as taxes to the city of Detroit and $1.9 million to tribal governments.

The total revenue gained by Michigan online casinos in May was almost unbelievably consistent with the numbers from April. The difference between both months was a slightly imperceptible $213.47 (0.0002%) drop from $94,851,765.56 to $94,851,552.09. (Michigan Gaming Control Board, 2021)

The breakdown of Michigan’s online gaming revenue for May revealed that BetMGM Online Casino led the way again, with $36.1 million gained in revenue, amounting to 38% of the total revenue. The revenue was for the most part a result of winnings from BetMGM MI Casino, but earnings from BetMGM MI Poker also contributed.

Behind BetMGM’s class-topping numbers

BetMGM’s high-performing online casino numbers for the month of May included $36,089,904 in revenue, $7,073,621 in state taxes, and $3,482,676 in local taxes. Those figures make it the second month in a row where BetMGM has held almost 40% of Michigan’s online gaming market.

Despite the pretty strong competition facing the operator – including giants FanDuel and DraftKings – BetMGM has managed to navigate its way to an undisputed top spot in Michigan’s online casino market since it launched in January.

The company experienced a drop in revenue from April, but much in the same vein as total online gaming revenue in Michigan, the difference was almost negligible. In April, BetMGM Online Casino brought in online gaming revenue of $36,813,468.11. That figure fell 1.9% in May with total revenue of $36,089,904.12.

Breakdown of BetMGM’s Revenue Since January

BetMGM’s combination of consistent promotion rollouts and a variety of casino games has seen the company take massive strides in the Michigan online casino market. Before May’s slight drop-off from May, the operator had gone from $11 million to $36 million in three months. (Michigan Gaming Control Board, 2021)

January – $11,075,980.37
February – $26,912,267.71
March – $30,792,815.02
April – $36,813,468.11
May – $36,089,904.12

It is impossible to know the exact amount online poker has contributed to these revenues, as the Michigan Gaming Control Board does not release poker revenue data away from casino revenue. However, the online gaming classification that it gives to the numbers means that revenue from BetMGM’s online poker offering must have been factored into calculations.

The first few months of online gaming in the Wolverine State have thrown up a three-way race between the top USA online casinos BetMGM, FanDuel, and DraftKings. But with a market share percentage that’s more than double their nearest competitors, BetMGM’s hold on top spot appears almost insurmountable.

Sources

Michigan Gaming Control Board, 2021 – https://www.michigan.gov/mgcb/0,4620,7-351-79263-561862–,00.html
Michigan Gaming Control Board, 2021 https://www.michigan.gov/mgcb/0,4620,7-351-79127_82898-244408–,00.html

New Jersey Records Huge Profits for May 2021

February 21, 2024 William Mcmaster

New Jersey has announced revenues made from total gaming for May 2021. According to reports filed by the Division of Gaming Enforcement, a total of $814.3 million was reported as profits. This showed an 8.9% rise from revenues generated in April. Sources have attributed a majority of this to the National Basketball Association (NBA) playoffs, as it raked in 27% of the entire profits for May alone.

According to the report, New Jersey online casinos made good profits as marked by a 25.9% rise in its third month, showing back-to-back increases since the calendar year started. With revenues tipping towards $108.2 million, and a tax bill of $18.9 million, business has been good for New Jersey online sportsbooks.

In a statement by the State Attorney’s office, compared to May 2020, there was a 290.4% increase. Information obtained between May 2020 and May 2021 shows internet gaming submitted a 25.9% increase. Sports wagering gross revenue was about $52.9 million for May 2021.

According to reports, Covid-19 also had a hand in the increase when revenues were compared between May 2020 and May 2021. Even though business has begun to pick up, there is still a long wait before normalcy returns back to USA online casinos.

Since the beginning of the year, New Jersey online casinos in particular showed an aggressive $895.9 million made. Internet Gaming Win saw a rise of 56.1% with $527.2 million reported. Sports wagering Gross Revenue also generated $297.1 million for the past 5 years. In total, the gaming industry made a total of $1.72 billion as compared to the period of the previous year.

For New Jersey online casinos, Borgata retained its position as the highest-earning casino, earning $32.8 million for the month. Golden Nugget Online Gaming followed suit, making $31.1 million last month. Resorts Digital and Caesars Interactive were next in line, making $21.6 million and $9.2 million respectively in iGaming revenue.

In terms of sports wagering revenue, Resorts Digital recorded a $9.5 million profit, Borgata following in second position with $3.8 million in sports betting revenue. The next was Ocean Casino, where sports wagering revenue made them $1.3 million and Hard Rock made $0.5 million.

It seems New Jersey Online casinos may be in contention with other USA online casinos from major states. Even though New Jersey has been at the forefront of sports betting since 2018, New York seems to be edging closer with their recent plan to host the Super Bowl. With 20% of New Jersey’s revenues coming from players from New York, according to Gov. Andrew Cuomo, the revenue of New Jersey may drop when New York implements its plan to commence online gambling.

PointsBet Increase Player Protection with New Appointment

February 21, 2024 William Mcmaster

Online gaming operator PointsBet has made a significant effort to improve player protection by announcing the hire of Teresa Fiore as Responsible Service of Gambling and Corporate Social Responsibility Manager. The announcement came as part of a move by operators in the US to strengthen responsible gambling.

The global online sportsbook operator has experienced massive growth since it launched into the US markets of Illinois, Colorado, Indiana, Michigan, Iowa, and New Jersey. The online gaming brand quickly endeared itself to fans in the US thanks to its extensive bet markets and top drawer app. Now, the company appears to be doubling down on efforts to increase player protection within its ranks.

Speaking after announcing the appointment, PointsBet CEO Johnny Aitken said: “We have been viewed as an industry leader for responsible gambling efforts and awareness since we launched in the US. We have the utmost respect and seriousness for the space, and we’re fortunate in being able to utilize our mature Australian market expertise to help push the industry standard here to be better.”

He added: “We are excited to now take a further step in responsible gambling by bringing a great talent in Teresa to the PointsBet team. Her experience in the US industry, understanding of the current landscape, and knowledge of best practices will be of great benefit to the company as we continue to realize the growing sports betting opportunity,”

PointsBet High-profile Hire – Teresa Fiore

Teresa Fiore joins PointsBet with almost five years of experience working within the responsible gambling space, most of which came from her time working at the Massachusetts Gaming Commission. While she worked there, Fiore was in charge of GameSense, a $3M responsible gaming program that serves more than 300,000 customers annually across three of the state’s land-based casinos.

One of the key roles she played at GameSense involved being at the helm of monthly stakeholder meetings with casino management. She was also in charge of overseeing the design and construction of GameSense Info Centers, as well as offering specific insights that drove a $200,000 multimedia ad campaign. Fiore’s other notable duties included managing a state-wide Voluntary Self-Exclusion program which offered a platform for individuals who’d made the decision to step away from casino gambling and also helped promote regulation.

Speaking after her appointment at PointsBet, Fiore stated: “I am delighted to have joined PointsBet and I welcome the opportunity to continue to find ways to innovate within the responsible gambling sector. With the rapid emergence of legalized sports betting, attention to safe and sustainable business practices is crucial. Driving this work is a holistic view of the player, which will be used to ensure that messaging and safeguards are seamlessly integrated throughout the entire player journey.”

Before her spell at the Massachusetts Gaming Commission, Fiore spent some years working at research and consulting firm, Envirosell. There, she worked on data analysis, strategic oversight, and customer insight projects. Bringing in someone of her experience and expertise is expected to be a very beneficial move for PointsBet, one that will keep the brand firmly on its upward trajectory in the US.

Nevada and New Jersey Top Online Betting Regulatory Rankings in IBIA Report

February 22, 2024 William Mcmaster

The International Betting Integrity Association combined with data business H2 Gambling Capital to release a study assessing and ranking the 20 strongest regulatory markets in the world. The report ranked the markets based on regulation, product availability, tax, marketing, and integrity, and it showed Nevada and New Jersey to be among the highest regulated markets. The two US online betting powerhouses ranked 4th and 6th, respectively, with three points separating them.

The study, a first-of-its-kind, also covered sporting integrity and match-fixing and included an overview of the global market. Speaking after the release, the chief executive of the IBIA, Khalid Ali, said, “The contents of this study can rightly be justified as unprecedented. H2 has conducted a detailed examination of product data that covered $137 billion in turnover, as well as its market data.” The study used data from almost 50% of the world’s online betting market (International Betting Integrity Association, 2021).

How the IBIA-H2 Study Was Carried Out

The world’s prominent trade associations were involved in the recent study by the IBIA and H2, including The European Gaming and Betting Association, NOGA, Jdigital, Branscheforenigen for Onlinespel, and the Betting and Gaming Council.

According to Ali, “This report provides a real, never-seen-before insight into global consumer demand, regulatory practices, and integrity risks. At IBIA, we hope that these evidence-based findings – which reveal the core facets of a successful betting regulatory framework – will help the important ongoing debate surrounding global betting and integrity.”

The study also reviewed the commercial progress made by the global betting market, predicting that by 2025, turnover will exceed $750bn while revenue will surpass the $100bn mark. In the section assessing market integrity, it was revealed that betting operators lost $25m every year to match-fixing. Another notable insight was that online betting has now surpassed land-based betting on the revenue scale, with it expected to continue to hold down that spot moving forward.

Speaking about the key factors that drive an optimum betting market, director of H2 David Henwood said, “Our assessment of various regulatory models operating around the world has determined that the key factors that are likely to create a successful betting market are: competitive GGR tax, unlimited licensing, wide product offering, integrity protocols, and balanced advertising rules. Our betting product and integrity evaluation are based on the most detailed market data collection ever assembled, and that is what makes our findings unique and illuminating.”

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Breakdown of New Jersey and Nevada’s Assessment

The top three spots in the IBIA-H2 ranking were taken by Great Britain (91 points), Malta (88 points), and Denmark (86 points). They were closely followed by two of America’s biggest online betting markets – Nevada (85 points) and New Jersey (82 points).

Nevada

Nevada’s regulatory framework, which existed even before the PASPA bill was repealed, gave the state an edge in the regulation rankings, even though online betting is only licensed through links with land-based operators in the state. According to the IBIA, Nevada’s GGR and overall tax percentage is enticing, granting it the joint-top spot on the tax rankings.

The state’s restrictions on non-college amateur sports and political betting counted against its product offering score but it still ranked comfortably ahead on that front, relative to other US markets. Nevada’s regulation, which insists that advertising must be carried out with decency and should not be aimed at self-excluded players, gave the state a relatively modest advertising score.

New Jersey

New Jersey’s regulatory system only came to the fore after the PASPA bill was struck down in 2018, but the state still received some commendation on that front. On the tax front, the state’s online tax rate was reported as being better than average. The 14.25% rate for online betting, though higher than land-based 9.25% tax, was lauded for being competitive and remaining close to Britain’s long-standing 15%. (Tax Foundation, 2020)

New Jersey’s product score was average primarily because of the restrictions placed on in-state college sports betting. However, because operators within the state must be part of betting monitoring systems, New Jersey compensated for its product ranking with an impressive integrity ranking.

The dynamic nature of online betting regulations and popularity within these two states means that we shouldn’t expect their rankings to remain the same for too long. All eyes are now firmly trained on these North American betting stakeholders as we anticipate the next moves from their legislation and operators.

Sources:

International Betting Integrity Association, 2021 – https://ibia.bet/an-optimum-betting-market
Tax Foundation, 2020 – https://taxfoundation.org/legal-sports-betting-states/

Comparing the USA and Canada Online Casino Landscapes

February 22, 2024 William Mcmaster

Considering that they share a border, it’s not much of a surprise that the two largest countries in the Americas are compared often. One notable point of comparison between them is online gambling. Though both countries share a passion for online gambling, they differ on every other count as far as the casino landscape is concerned. Let’s take a look at the difference between USA online casino laws and those of Canada.

Difference in Regulations

In the 1900s, gambling laws in the USA and Canada were not different from each other; it was pretty much illegal everywhere you went in both countries. While that is no longer the case in either country – there are now less strict levels of restriction in the gambling laws of both nations and gambling is no longer illegal – both countries have taken different routes to reach that stage.

The US introduced the Unlawful Gambling Enforcement Act in 2006. The law sought to prohibit casinos and other gambling organizations from approving any bets that were placed via the use of the internet. While that law persisted, online gambling in Canada began to increase in popularity.

In 2018, though, the US made up for the lost time by striking down the Professional and Amateur Sports Protection Act (PASPA) that had restricted sports betting in the country for 25 years. It also ruled in favor of New Jersey, legalizing sports betting in online casinos and horse racing tracks. In that period, sports betting in the US has taken massive strides in the states where it is allowed. Sports betting is not yet considered as prominent within Canada.

What might count as the most significant difference between casino regulations in the US and Canada is that online gambling is legal across Canada. The country’s government simply doesn’t grant licenses to online casinos, meaning there are not a lot of online casinos based there. Canadians who are interested in online gambling typically register at and play casino games at online casinos based offshore. There are also some online casinos in Canada that are operated from within Mohawk Territory. Some of these territories provide licenses to online casinos with the most prominent of these being the Kahnawake Gambling Commission.

However, in the US, online gambling is regulated differently in each state. Residents in states with legalized online gambling can register to play at online casinos, but residents in states that haven’t do not have that privilege – same country; different online casino regulations.

Gaming and Currency Disparities

One notable difference in the casino landscape between the USA and Canada is in the way online casinos are played. Online casinos in Canada are known for allowing free trials for casino games more often than not. These free trials help players get familiar with the games before staking real money, and are encountered more often in Canadian online casinos than in US casinos.

Playing online poker, roulette, or blackjack in the US is a slightly less lucrative endeavor than it is in Canada. Up north, players are permitted to spend whatever winnings are made without having to pay taxes. The US however taxes 25% of every win made on online gambling.

Another difference to note is in the currency. The US dollar is the most generally accepted currency in casinos online, alongside the Euro and British Pound. Quite simply, Canadian dollars do not come with that level of acceptance. This means that online casinos in Canada, especially those based offshore, will prefer to convert deposits or withdrawals made in CAD to USD rather than list the former as an accepted currency.

Software Providers and Popularity

Due to the generally accepted nature of online casinos across Canada, players in the country are able to access games from top software providers all over the world. Several popular game providers are restricted from providing games in online casinos in certain states in the US. These providers include NetEnt, Playtech, Quickspin, and Microgaming.

Banking options in both countries don’t hold too many differences. Deposits and withdrawals can be made via debit/credit cards or with several e-wallet options. Withdrawal times vary between different casinos and are not dependent on the country it is located.

As far as popularity is concerned, there isn’t so much to separate both countries. Major gambling states in the US, such as New Jersey and Nevada, can boast of having online casino popularity levels that could rival any in Canada.

The differences in the casino landscape in the US and Canada are quite extensive, but both countries are firmly on the upward path as far as online gambling is concerned. Different countries; same trajectory.

Sources

Federal Trade Commission, 2006- https://www.ftc.gov/enforcement/statutes/unlawful-internet-gambling-enforcement-act
Montreal Times, 2021 – https://mtltimes.ca/life/gambling-laws-canada-vs-usa/
Baron, 2021 – https://baronmag.ca/2021/01/the-usa-vs-canada-main-online-casino-differences/

Connecticut State Signs Gambling Bill into Law

February 22, 2024 William Mcmaster

Connecticut has become the sixth state in the US where online gaming casinos are legal, and also the seventh state to have regulated poker online. Governor Ned Lamont signed house bill 6451 on Friday, May 28 after it received support in the state senate, with an overwhelming vote margin of 28-6. Of all the senators, three Democrats and three Republicans voted against the bill, expressing fears over addictive gambling.

In a public statement released by the Governor’s office, the Governor described the signing as the beginning of an era.

“By signing this bill into law, Connecticut is now on the cusp of providing a modern, technologically advanced gaming experience that will be competitive with our neighboring states and positions us for success into the future. Today, we celebrate the result of months of hard work and dedication toward an agreement that is best for the residents of Connecticut and the respective tribal members.” Governor Lamont said.

The idea of legalizing online gaming casinos in Connecticut started in 2011 when former Governor Daniel P. Malloy advised state legislators that regulation of online casinos and online poker is worth looking into.

Legal Framework For the New Bill

The legal framework of the new bill shows that only the two tribes of the state, the Mashantucket Pequot and Mohegan tribes will be licensed operators, operating out of their Mohegan Sun and Foxwood casinos, although they will be regulated by the Department of Consumer Protection.

The Connecticut Lottery Corporation (CLC) will also be a beneficiary of the law, offering selected online games. This won’t cover online poker though. The corporation can own 15 retail sportsbooks across the state, 25 miles away from each of the two casinos. The lottery is expected to partner with Sportech, for many of these brick-and-mortar games.

With the framework, it is expected that there will be a swift approval from the Federal Government, as Federal tribal gaming laws including court proceedings have barred tribes from operating online gaming casinos or own a casino outside a tribal territory, except they are regulated under the state.

All that remains is the confirmation by the US Department of Interior.

The Future of Online Casinos in Connecticut

Online gaming casinos are expected to provide up to 80% of the state’s sports revenues with an estimated population of 600,000 taking advantage of this law. The law is projected to generate a minimum of $30 million in a fiscal year, with estimates seen to rise above $80 million by the year 2026. As for taxes, 18% in gross revenues will be remitted in the first five years, followed by a 2% rise in the next five years after with 13.75% on sports betting.

With the deal struck between the government and the two tribes, each casino will pay $500,000 each year towards programs for gambling addictions, while the lottery commission will contribute $1 million.

A new feature will also be added to every online gaming casino website, where there will be reminders to show the amount of time spent on the site, credit limits, and an option to go off at once.

Rep. Maria Horn, D-Salisbury, who led the passage commented on the safeguards:

“There are to be clear displays on your phone, whatever device you’re using to do online gaming, clear displays of the amount of time spent, means to initiate a break at play and display the amount of money available, as well as self-exclusion programs,” Horn said, describing them as a way to “hopefully catch addictive behavior before it goes too far.”

Sources

i95Rock, 2021
https://i95rock.com/sports-wagering-and-online-gambling-okd-in-connecticut/
CtMirror, 2021
https://ctmirror.org/2021/05/20/connecticut-house-votes-122-21-to-legalize-online-gambling