This week was notable for significant regulatory and business developments, with several events finalized or confirmed. Here, we highlight the most important updates. New York’s Attorney General, Letitia James, has issued cease-and-desist orders to 26 entities operating under the social and sweepstakes casino model. These entities have been informed that they are in violation of local laws and must immediately cease operations and leave the state. This action represents the latest in a series of regulatory pressures on the sector, which is facing increased scrutiny in regions like Louisiana. Additionally, Maine's gambling regulator has issued a warning, advising consumers that these websites are illegal and should be avoided to protect personal and financial information.
Business & finance
FanDuel has set a precedent by introducing a $0.50 charge on every sports wager placed on its platform for users in Illinois. This move may be expanded to other states where tax rates are similarly high. Interestingly, this charge was initially suggested by DraftKings, but it was dropped after receiving negative feedback from customers. Nonetheless, due to Illinois' recent tax increase, DraftKings will implement a surcharge as well, following confirmation from the company this week. Hacksaw Gaming has announced its plans to proceed with an Initial Public Offering (IPO) on NASDAQ Stockholm. The focus will be on attracting local and international institutional investors. If all goes as expected, the company aims to complete the listing by the end of the month. Entain has reported that Dean Shannon, the head of its operations in Australia and New Zealand, will be resigning. Shannon's tenure will formally conclude on June 30, 2025, as announced by the company. Allwyn has reported another successful quarter, showing revenue growth in the first quarter. The company achieved an adjusted EBITDA of €363.2 million during this period. CEO Robert Chvatal expressed satisfaction with the positive progress, noting it continues the momentum from a record-breaking 2024. In a remarkable outcome, Betfred celebrated by awarding its largest jackpot ever. A lucky player won an astonishing £11,498,211.89 from a mere £1.50 bet. The life-changing sum was won on Mega Moolah, one of the top progressive jackpot games, now managed by Games Global.
Responsible gambling
In the United Kingdom, the Advertising Standards Authority (ASA), the media watchdog, investigated two advertisements for Ladbrokes that appeared on TV and Video on Demand (VOD) platforms. These ads promoted Ladbucks, a unique token created by Ladbrokes that offers complementary services to gamblers, such as free spins and bets. The ASA concluded that the ads violated both the BCAP and CAP Codes. Ladbucks were similar to popular video game currencies like Fortnite's V-bucks and Roblox's Robux, which could potentially appeal to children. In Sweden, actions were taken against two Twitch streamers who promoted unlicensed and unregulated gambling products to their followers. The Swedish gambling regulator, Spelinspektionen, ordered these promotional activities to stop. The influencers complied, though this was not the first time they had been scrutinized by the regulator. The influencers under supervision have ceased marketing illegal gambling following the oversight of the Swedish Gambling Authority, read a statement on the regulator's website.
Laws and regulations
Brazil has opted not to proceed with a highly controversial financial transactions tax law. Instead, it has addressed the fiscal shortfall by raising the tax on sports gambling. This change will increase the effective tax rate in the country to 18%. The industry has warned that maintaining a competitive product under these constantly changing market conditions will be challenging. To note, Brazil's regulated iGaming and sports betting markets are set to launch in January 2025.
The voice of the industry
You can find the complete list of winners here. Ivan Kurochkin, the Head of the Consulting Department at 4H Agency, thoroughly examined the current regulatory landscape in Curaçao and the local introduction of independent test labs. He provided insights on what the industry might anticipate as a result. You can read Kurochkin's full opinion piece here.
