Another week in the gambling industry has been marked by significant developments, particularly involving asset sales and a dispute at one of the largest U.S. sports betting companies. Here is a review of the week's events. Penn Entertainment responded to claims made by HG Vora, an activist investor who released a 116-page presentation last week accusing the company’s leadership of various shortcomings. This week, Penn countered these accusations, stating they were mostly false and misleading. Tensions between HG Vora and Penn have escalated over management practices at ESPN Bet, a sports betting platform reportedly struggling under its current leadership, according to HG Vora. Penn has categorically denied allegations of excessive executive compensation and misuse of corporate jets, asserting that these claims are sensationalized rather than reflective of reality. Meanwhile, Playtech has continued its strategy of divesting business-to-consumer assets in Germany by agreeing to sell its Happybet brand to local operator pferdewetten.de AG. The transaction is pending customary regulatory approvals and closing conditions. Playtech’s decision to divest allows it to concentrate on its core strength: developing innovative software and solutions for the gambling industry. As part of the deal, pferdewetten.de AG has the option to acquire hardware and existing assets, although the financial details of the transaction have not been disclosed.
Business and finance
This week's news highlights several significant developments in the sweepstakes industry. Notably, VGW, the operator behind brands like Chumba Casino, LuckyLand Slots, and Global Poker, announced it will stop using its Sweeps Coins currency in New York. While the company will continue offering Gold Coins—which cannot be exchanged for real money—it faces increasing challenges in the state. The phase-out of Sweeps Coins will commence immediately and conclude by August 1, 2025, when they will no longer be available. VGW is also grappling with opposition in other regions, as dissatisfaction grows within the U.S. gambling industry. Concurrently, Montana has become the first U.S. state to completely ban sweepstakes, drawing sharp criticism from industry organizations. The Social and Promotional Gaming Alliance (SPGA) criticized the state for prohibiting something they argue is misunderstood. By 2025, Montana will have distinguished itself as the first state to take such drastic action, while other states like Arkansas, Maryland, Mississippi, and Florida have yet to follow suit. Meanwhile, Connecticut's Senate is advancing a bill to ban sweepstakes, potentially making it the next state to outlaw them directly. In an unrelated development, Thailand is progressing with plans to open its first casino resorts, referred to locally as entertainment complexes. Between five and seven international bidders have reportedly expressed interest in these projects, according to Julapun Amornvivat, Thailand’s Deputy Finance Minister.
Responsible gambling
The Wyoming Gaming Commission has issued a warning to players, advising them to avoid gambling on websites that are not regulated within the state. The commission emphasized their inability to provide customer protections for such unregulated sites. Many of these websites have exploited local players by offering iGaming products such as slots and casino games, which are not permitted in Wyoming. Meanwhile, Japan is experiencing a surge in demand for online betting, with a recent survey estimating that sports betting brought in $45 billion in 2024. This revenue came from wagering on various sports with foreign and overseas bookmakers, and it is projected to grow further. Despite the popularity of sports betting, Japan shows little interest in legalizing it, even as the country moves forward with an integrated resort and considers two additional projects. Simultaneously, a new study has found that extended periods of sleeplessness do not necessarily correlate with an increased frequency of gambling. The research concluded that after 18 hours without sleep, there is minimal difference in gambling behavior between 3 a.m. and 6 p.m.
The voice of the industry
For more information about this year's evaluation process, visit the detailed breakdown article here. The winners will be announced at the inaugural in-person ceremony on Friday, June 6, 2025, at the magnificent Hotel Hilton in St. Julian's, Malta.
