Gambling in the USA

PARX CASINO persuades the Keystone states regulators to confine the number of IGOs in the state

Published

6 years ago

February 13, 2018

Reading Time: 3 minutes

In an effort to confine the number of Interactive Gaming Operators (IGO’s — aka skins) that can establish shops in the State of Pennsylvania, Parx Casino Bensalem, the largest casino complex based in Pensylvania owned and operated by the Greenwood Gaming and Entertainment (GGE), persuaded the regulators of the state.

Parx: One skin per certificate holder

As per a letter discovered by Gambling Compliance Research Director, Chris Krafcik, on January 30^th, GGE beseeched the keystone state’s Gaming Control Board (paywall) to confine specifically each incoming internet gambling certificate holder (understood to be the land-based casinos that currently possess a license to conduct brick & mortar business in PA) to one skin per establishment; and that all branding should directly correlate to the main license holder.

GGE argued “The contrary scenario — whereby a Certificate Holder can have unlimited skins with it bestowing the ability to operate with any number of Interactive Gaming Operators (“IGOs”), some perhaps in partnership with third-party Qualified Gaming Entities and utilising the third party’s brand — creates a sublicensing regime that essentially transfers licensing authority from the PGCB to the Certificate Holder.”

In addition, GGE clings to the belief that the Board “should require that any branding associated with those skins match the brand of the Certificate Holder’s commercial casino operating under its PGCB slot machine license.” The entire email correspondence from GGE to the Gaming Control Board is available here.

The mandates suggested by GGE would essentially block sub-licensees (such as PokerStars, Betfair, and WSOP) from marketing their brands in Pennsylvania while locking-down the state’s future iGaming market in favour of a handful of large casinos with major brand power and customer databases in Pennsylvania. Parx Casino would, of course, be a primary beneficiary of such a policy, as it is the long-standing revenue leader in the PA brick & mortar casino industry.

Parx Casino is joined by Hollywood Casino Grantville, parent company Penn National, in its view that Pennsylvania should not adopt a similar strategy to neighbouring New Jersey, where iGaming revenue has consistently risen as more IGOs have entered the picture.

Response from iDevelopment and Economic Association

The iDevelopment and Economic Association (iDEA – which encompasses iGaming power brokers such as The Stars Group, GVC Holdings (parent company of Party Poker), Resorts Interactive and Tropicana Entertainment) has responded to GGE’s lobbying efforts with its own communication to the Pennsylvania Gaming Control Board.

Not surprisingly, iDEA points to the current New Jersey iGaming model which has provided clear benefits for the health of the industry as well as Garden State residents through additional tax revenue.

“By allowing multiple skins per license, Pennsylvania will encourage robust competition among operators,” iDEA states in its letter to the PGCB.

“To compete with larger casinos, smaller casino operators might partner with both poker and table game operators under separate skins to provide innovative products under larger brand names,” iDEA adds. “Without the availability of multiple skins, they would be unable to do so. That competition and innovation will result in higher revenue for the state and greater satisfaction for players.”

Thoughts and analysis

There is truth to iDEA’s arguments, as the allowance of multiple skins does encourage competition, ultimately resulting in a healthier environment for both operators and players. In New Jersey, there’s been a clear appetite for more sites than there are casinos, with brands such as Betfair and Play Sugar House gaining significant market share, all while bolstering the revenue of smaller Atlantic City brands.

In Pennsylvania, limiting the number of skins will be highly discouraging to smaller casinos, as the licensing fee to become an iGaming certificate holder for slots, table games, and poker is set at an outlandish $10 million (or $4 million per vertical). It is hard to foresee lesser land-based casinos getting too excited about paying this exorbitant amount for just one or two sites, especially for online gambling services that offer slots, which will be taxed at an unprecedented 54 percent of Gross Gaming Revenue.

Not to mention, if the sites are required to be self-branded, big brands like Parx will have a built-in advantage at launch, further discouraging smaller brands from taking a shot. This will be a shame, as smaller brands have proven more successful than the top dogs in New Jersey over the long haul — a fact we assume Parx is well aware of.

Ultimately this feels like a power grab from Parx, who will be a reluctant participant in the iGaming industry, and is looking to protect its industry-leading brand by all but preventing its competitors from entering the space.

The Pennsylvania Gaming Control Board will have the last say on this developing story as Keystone State residents anxiously await the 2018-2019 rollout of real money internet gambling.

Gambling in the USA

Gaming Americas Weekly Roundup – April 8-14

Published

5 days ago

April 15, 2024

Niji Narayan

Reading Time: 2 minutes

Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.

Latest News

FanDuel Group, the premier online gaming company in North America and an Official Partner of Churchill Downs Inc., announced five time Entertainer of the Year Luke Bryan and Grammy award-winning R&B singer Ne-Yo as the headlining performers at FanDuel’s inaugural Kentucky Derby Party. The exclusive, invite-only event will take place on Friday, May 3 at Paristown Arts and Entertainment District in Louisville, Kentucky from 7:00 PM to 12:00 AM.

TPI, a leading provider of innovative player communication solutions for the casino industry, has appointed Joe Tingson as its new Vice President of Customer Success. With his unparalleled dedication to his customers, Joe will play a pivotal role as a leader for our digital Customer Success and Product teams.

PrizePicks, the largest daily fantasy sports operator in North America, has announced plans for its new 33,000 square foot Atlanta Headquarters, which will be located in the Star Metals Building in Midtown Atlanta. The company plans to grow its workforce by 1000 new jobs over the next seven years, the economic impact of which will be $25M to the state of Georgia.

Century Casinos Inc. has announced that it opened its hotel in Cape Girardeau, Missouri, The Riverview. The Riverview is a 69 room, six-story building with 68,000 square feet that is adjacent to and connected with Century Casino Cape Girardeau. The project cost $30.5 million and was financed with cash on hand.

Churchill Downs Incorporated (CDI) has announced the opening of Terre Haute Casino Resort in Terre Haute, Indiana. The $290 million investment includes a casino floor with 1000 slot machines, 36 table games, and a state-of-the-art sportsbook. The 400,000-square-foot entertainment venue also features regionally inspired bars and restaurants including: Four Cornered Steakhouse, Rockwood Bar & Grill, The Soda Shoppe, Crossroads Center Bar and High Limit Bar.

Bragg Gaming Group Inc., a global B2B gaming technology and content provider, announced that Chief Financial Officer (CFO), Ronen Kannor, has notified Bragg’s board of directors (Board) that he will resign from his position to pursue other career opportunities, effective June 3, 2024. The Company confirms that the search for a replacement CFO has commenced.

Partnerships

EQL Games has partnered with global aggregation leader and NeoGames company, Pariplay, to provide the Virginia Lottery, through an agreement with NeoPollard Interactive, with a series of eInstant iLottery games for their industry-leading digital platform.

JACK Entertainment LLC announced the selection of Konami Gaming Inc.’s SYNKROS to power industry-leading systems technology across its 1.5 million square feet of casino entertainment space. The Ohio-based gaming operator’s portfolio includes a combined 2600+ gaming machines and 85 table games at JACK Cleveland Casino in downtown Cleveland, and at JACK Thistledown Racino, located approximately 10 miles to the southeast.

PrizePicks, the largest daily fantasy sports operator in North America, announced that the company has reunited with the Atlanta Braves as the club’s Official Daily Fantasy Sports Partner for the 2024 season. The partnership extends a longstanding relationship that dates back to 2020, with the two Atlanta-based companies continuing to work together on unique opportunities for their dedicated fans.

Gambling in the USA

Gaming Americas Weekly Roundup – April 1-7

Published

2 weeks ago

April 8, 2024

Niji Narayan

Reading Time: 2 minutes

Latest News

International Game Technology PLC (IGT) announced that it will showcase its performance-focused portfolio of games and solutions for tribal casinos at the Indian Gaming Tradeshow & Convention (IGA) 2024, April 9-11 in Anaheim, Calif. Under the theme “We’ve Got Game,” IGT’s booth #536 will feature a compelling array of gaming solutions designed to engage players and drive growth.

Caesars Sportsbook announced its receipt of the prestigious RG Check accreditation from the Responsible Gambling Council (RGC). The certification includes an assessment of Caesars Sportsbook’s commitment to Responsible Gaming, including areas such as player and Team Member education, public awareness advertisements and funding for organisations dedicated to Responsible Gaming research, awareness and education.

Veriff, a global identity verification (IDV) provider, announced the appointment of Jeffrey Guy as President and COO. Jeffrey brings a wealth of leadership experience at technology companies in driving profitable growth and expanding product portfolio. Before Veriff, he was Chief Operating Officer at DigitalOcean, a publicly traded cloud computing platform provider.

GAN Limited announced that Mr. Brian Chang has recently been named the Company’s Chief Financial Officer. Mr. Chang had previously been serving in an interim capacity. Mr. Chang will be focused on guiding the Company towards a timely closing with Sega Sammy Creation Inc. (Sega Sammy).

Partnerships

The Commerce Casino & Hotel, home to the largest poker room in the world, has announced an exciting partnership with the richest, most prestigious and longest-running poker series – the World Series of Poker (WSOP). This collaboration signifies a pivotal moment for the poker community, bringing together two powerhouses to elevate the poker experience for players and fans worldwide.

BetRivers, powered by Rush Street Interactive, a leading US-based online betting and gaming company, has announced its partnership as the title sponsor for the upcoming NASCAR Xfinity Series Dash 4 Cash race at Dover Motor Speedway. The BetRivers 200, set for Saturday, April 27, is being undertaken with the Delaware Lottery and marks the beginning of a thrilling new chapter in NASCAR history, as RSI commits to the long-term support of this top tier sporting event.

Elys BMG Group Inc., an interactive gaming and sports betting technology company, announced the completion of its sportsbook installation at The Ugly Mug restaurant and bar situated at 723 8th St SE, in Washington, DC. This collaboration underscores Elys’ commitment to providing unparalleled sports wagering experiences for small and local businesses across America.

SCCG Management has announced a strategic partnership with mkodo, a leading technology provider in the iGaming space. This collaboration is set to distribute mkodo’s innovative geolocation product, GeoLocs and other leading solutions across the US and key global markets, including Brazil, leveraging SCCG’s robust market presence and industry expertise.

Prove Identity Inc. announced a strategic partnership with BetMGM, a sports betting and iGaming leader, to enhance the security and user experience for BetMGM customers through the cutting-edge Prove Pre-Fill identity solution. Prove Pre-Fill accelerates digital consumer onboarding by up to 79% and is used by more than 1000 businesses globally across diversified industries, including 9 of the top 10 banks.

Gambling in the USA

Gaming Americas Weekly Roundup – March 25-31

Published

3 weeks ago

April 1, 2024

Niji Narayan

Reading Time: 2 minutes

Latest News

Bragg Gaming Group is now registered as an approved service provider by the Peruvian Ministry of Foreign Trade and Tourism, allowing for the distribution of online casino games, including Bragg’s proprietary and exclusive games portfolio, via the Bragg HUB aggregation platform to operators in the soon-to-be-launched LatAm iGaming market.

PENN Entertainment announced that its Board of Directors has appointed Anuj Dhanda to the Board, subject to customary regulatory approvals. Mr. Dhanda’s appointment expands the size of the Board to ten members, nine of whom satisfy the standards for director independence under the current Listing Rules of the NASDAQ Stock Market.

SlotsCalendar has launched its tailor-made platform for American users: https://www.slotscalendar.us. The brand’s clear aim is to provide a digital environment where impartial and informative content is optimised specifically for the American market.

MGM Resorts International announced that it proposes to offer $750,000,000 in aggregate principal amount of senior notes due 2032. The Company intends to use the net proceeds from the offering of the notes to repay existing indebtedness, including its outstanding 6.750% senior notes due 2025. Pending such use, the Company may invest the net proceeds in short-term interest-bearing accounts, securities, or similar investments.

Genius Sports Limited, the official data, technology and commercial partner that powers the ecosystem connecting sports, betting and media, announced that it has been certified by the State of Wisconsin Division of Gaming as a gaming-related contractor with immediate effect.

Win Systems is going to participate in the next edition of GAT with its exclusive distributor in Colombia, Comercializadora Selan S.A.S. The event will be held in Cartagena de India on April 10–11, and the company’s booth will be A11.

Pragmatic Play is set to make another appearance at a Latin American exhibition, at GAT Expo in Cartagena de Indias, Colombia. The gaming provider will be on stand A31 and A32 to showcase its diverse portfolio, including Slots, Live Casino, Virtual Sports and Bingo content, alongside its new Sportsbook offering.

Partnerships

DraftKings announced an expanded relationship with Kindbridge Behavioural Health to provide access to therapy and treatment for problem gaming in every jurisdiction where DraftKings operates its online sportsbook and iGaming products. DraftKings and Kindbridge originally joined forces in September 2023 to launch a pilot programme to deliver personalised support for sports bettors in Colorado.

The Connecticut Lottery, in partnership with Fanatics Betting and Gaming, the online and retail sports betting subsidiary of Fanatics Holdings, has opened a new retail sportsbook location at Total Mortgage Arena in Bridgeport. The exciting new location is more than 2300 square feet and features betting windows, self-service betting kiosks from Suzohapp and high-definition TVs situated all around the sportsbook.

The Texas Lottery and Texas Motor Speedway have joined together again to rev up luck for lottery players and racing fans through the new LUCKY 7s scratch ticket game. The new $5 game features chances to win a $100,000 top prize and integrates a series of promotional second-chance drawings. The drawings give players with non-winning tickets a chance to win exclusive Texas Motor Speedway prizes.