Connect with us
SIS

Gambling in the USA

Twin River Worldwide Holdings, Inc. Announces 2018 Fourth Quarter And Full Year Results

George Miller

Published

on

Twin River Worldwide Holdings, Inc. Announces 2018 Fourth Quarter And Full Year Results
Reading Time: 13 minutes

 

Q4 REVENUE INCREASED 11.9% YEAR-OVER-YEAR

 

Twin River Worldwide Holdings, Inc. reported financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter and Full Year 2018 Highlights

  • Net revenues for the fourth quarter and full year 2018 were $111.4 million and $437.5 million, respectively.
  • Gross gaming revenues for the fourth quarter and full year 2018 were $183.5 million and $716.9 million, respectively. See reconciliation of this and other non-GAAP metics in the tables below.
  • Fourth quarter and full year 2018 net income was $22.1 million and $71.4 million, respectively.
  • Adjusted EBITDA for the fourth quarter and full year 2018 were $37.0 million and $165.7 million, respectively.
  • Tiverton Casino Hotel (“Tiverton“) and the new hotel at Twin River Casino Hotel (“Twin River”) opened.
  • The merger with Dover Downs Gaming & Entertainment, Inc. (“Dover Downs”) is expected to close in March 2019.

“We are pleased with the progress we made on our strategic initiatives in 2018. This past year was transformational for us, with the successful launch of our newest property, Tiverton, the successful opening and ramp of our new hotel at Twin River, the introduction of sports betting across our casino properties and the Dover Downs merger and related launch of TRWH as an NYSE-listed company.  I am proud of our team’s focus and dedication to these initiatives without losing sight of our customers,” said George Papanier, President and Chief Executive Officer. “We are on track to close the Dover transaction this month, and our teams are hard at work planning for the integration to capture the synergies and strategic benefits of this combination for our combined shareholders.”

Summary of Fourth Quarter and Full Year Financial Results





Quarter Ended December 31,









Year Ended December 31,





Amounts in $000’s 



2018



2017



Change





2018



2017



Change





























Net revenue



$

111,422



$

99,554



11.9%





$

437,537



$

421,053



3.9%

Income from operations



34,697



27,990



24.0%





120,649



123,723



-2.5%

Income from operations margin



31.14%



28.12%









27.57%



29.38%





Net income



22,130



19,154



15.5%





71,438



62,247



14.8%

Net income margin 



19.86%



19.24%









16.33%



14.78%





Adjusted EBITDA



36,980



38,535



-4.0%





165,697



166,772



-0.6%

Adjusted EBITDA Margin



33.19%



38.71%









37.87%



39.61%





2018 Fourth Quarter Results

Net revenues for the fourth quarter increased 11.9% to $111.4 million from $99.6 million in the fourth quarter of 2017. Net revenue increases were the result of the opening of Tiverton and the hotel at Twin River in September and October, respectively. Gaming revenues increased $8.5 million, or 11.3%, hotel revenues increased $1.6 million, or 38.2%, and food & beverage revenues increased $1.5 million, or 14.0%, each compared to the same period in the prior year.

Income from operations in the fourth quarter increased $6.7 million, or 24.0%, year-over-year to $34.7 million.  This improvement can be attributed to operating income generated by the increased revenue and a $3.7 million decrease in advertising, general and administrative expenses (“AG&A”). The decrease in AG&A was primarily driven by a $12.8 million decrease reflecting reductions in share-based compensation expense,  partially offset by merger and going public expenses and normal volume-related increases.

Net income for the fourth quarter increased by $3.0 million, or 15.5%, to $22.1 million due primarily to increased income from operations, partially offset by $1.8 million of increased interest expense and an increase in the effective tax rate from 17.2% to 20.9%.

Adjusted EBITDA for the fourth quarter of 2018 was $37.0 million, a decrease of $1.6 million, or (4.0%), from $38.5 million in the fourth quarter last year driven by increased corporate administrative expenses.

2018 Full Year Results

Net revenue for the year ended December 31, 2018 increased 3.9% to $437.5 million, from $421.1 million in the same period in 2017. This increase was primarily attributable to increases in gaming and racing revenue and non-gaming revenue attributable to the opening of Tiverton on September 1, 2018, partially offset by a decrease of $5.3 million from closing Newport Grand on August 28, 2018.  The increase in non-gaming revenue can also be attributed opening the Twin River hotel and, to a lesser extent, due to increases in merchandise, cash services and entertainment revenue.

Total operating costs and expenses for the full year 2018 increased $19.6 million to $316.9 million from $297.3 million for 2017. This increase resulted in income from operations of $120.6 million, which represented a decrease of 2.5% compared to 2017. The year-over-year increase in costs and expenses can be attributed to $6.6 million of costs related to the Dover Downs merger and public company costs, a disposal loss of $6.5 million in connection with the sale of the Newport Grand land and building, a $3.7 million charge incurred associated with a pension plan withdrawal liability, an increase of $2.5 million in expansion and pre-opening costs primarily associated with Tiverton and increased marketing expense to support the opening of Tiverton and the Twin River hotel, partially offset by a $19.3 million reduction in the amount of share-based compensation expense.

Net income for 2018 was $71.4 million, an increase of 14.8% from $62.2 million in 2017. Contributing to the net income increase year-over-year was a reduction in the effective tax rate from 38.4% to 27.0% as a result of federal tax reform.

Adjusted EBITDA for the full year of $165.7 million was essentially the same as 2017.

Balance Sheet and Liquidity

TRWH had $77.6 million in cash and cash equivalents, excluding restricted cash, at December 31, 2018. Outstanding indebtedness at December 31, 2018 totaled $394.2 million including $55.0 million outstanding on the Company’s revolving credit facility.  The Company’s leverage remained relatively consistent at approximately 2.4x compared to the prior year. Capital expenditures for Tiverton and Twin River hotel in 2018 totaled approximately $117 million.

Following the Dover Downs merger, the Company plans to consider a potential tender for a portion of its outstanding common stock or another transaction to provide a return of capital to shareholders.  The amount, timing and terms of any such transaction, if any, will be determined at that time and be based upon prevailing market conditions, the Company’s financial condition and prospects and other factors, including conditions in the bank, credit and debt capital markets.

Reconciliation of GAAP Measures to Non-GAAP measures

To supplement the financial information presented on a generally accepted accounting principles (“GAAP”) basis, the Company has included in this earnings release non-GAAP financial measures for Adjusted EBITDA, Adjusted EBITDA margin, gross gaming revenue and leverage. The non-GAAP measure Adjusted EBITDA excludes depreciation, amortization,  interest expense and income, net, income taxes,  merger and going public expenses, loss associated with Newport Grand land and building disposal, acquisition-related costs associated with announced planned acquisitions in Colorado, pension withdrawal expense, pension audit payment, shared-based compensation expense, non-recurring litigation expenses, legal and financial expenses for strategic review, non-recurring expansion and pre-opening expenses, storm-related repairs, and credit agreement amendment expenses. Adjusted EBITDA margin is Adjusted EBITDA divided by net revenue. Gross gaming revenue is is net gaming revenue inclusive of the State of Rhode Island’s share of net terminal income, tables games revenue and other gaming revenue. Leverage  is calculated as outstanding debt divided by Adjusted EBITDA as defined above.

The reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures are presented in the tables appearing below. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. The Company believes that presenting non-GAAP financial measures aids in making period-to-period comparisons and is a meaningful indication of its actual and estimated operating performance. The Company’s management utilizes and plans to utilize this non-GAAP financial information to compare the Company’s operating performance to comparable periods and to internally prepared projections. The Company’s non-GAAP financial measures may not be the same as or comparable to similar non-GAAP measures presented by other companies.

Fourth Quarter and Full Year Conference Call

The Company’s fourth quarter and full year 2018 earnings conference call and audio webcast will be held today, Tuesday March 19, 2019 at 5:00 PM EDT. To access the conference call, please dial (877) 791-0146 (U.S. toll-free) and reference conference ID number 1562667. The webcast of the call will be available to the public, on a listen-only basis, via the Internet at the Investors section of the Company’s website at www.twinriverwwholdings.com.  An online archive of the webcast will be available on the Company’s website for 120 days.

About Twin River Worldwide Holdings, Inc.

Twin River Worldwide Holdings, Inc., owns and manages two casinos in Rhode Island and one in Mississippi, as well as a Colorado horse race track that possesses 13 OTB licenses. Properties include Twin River Casino Hotel (Lincoln, RI), Hard Rock Hotel & Casino (Biloxi, MS), Tiverton Casino Hotel (Tiverton, RI) and Arapahoe Park (Aurora, CO). TRWH’s expertise spans various casino markets, including regional, destination & resort environments. Its casinos range in size from 1,000 slots and 32 table games facilities to properties with 4,200 slots and 123 table games, along with hotel and resort amenities.

Additional Information and Where to Find It

In connection with the proposed Dover Downs transaction, Twin River filed a registration statement on Form S-4 (File No. 333-228973) with the SEC that includes a combined proxy statement/prospectus. The registration statement was declared effective by the SEC on February 8, 2019, and a definitive proxy statement/prospectus was sent to each Dover Downs stockholder entitled to vote at the special meeting in connection with the proposed transaction beginning on February 13, 2019. This communication is not a substitute for any proxy statement, registration statement, prospectus or other documents Dover Downs and/or Twin River may file with the SEC in connection with the proposed Dover Downs transaction. INVESTORS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THESE DOCUMENTS, ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS AND OTHER DOCUMENTS FILED BY DOVER DOWNS OR TWIN RIVER WITH THE SEC IN CONNECTION WITH THE PROPOSED DOVER DOWNS TRANSACTION BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT INFORMATION. Investors are able to obtain free copies of these materials and other documents filed with the SEC by Dover Downs and/or Twin River through the website maintained by the SEC at www.sec.gov. Investors are also able to obtain free copies of the documents filed by Dover Downs and/or Twin River with the SEC from the respective companies by directing a written request to Dover Downs at Dover Downs Gaming & Entertainment, Inc., 1131 North DuPont Highway, Dover, Delaware 19901 or by calling (302) 857-3292, or contact Twin River at Twin River Worldwide Holdings, Inc., 100 Twin River Road, Lincoln, RI 02865 or by calling (401)-475-8474.

No Offer or Solicitation

This communication is for informational purposes only and not intended to and does not constitute an offer to subscribe for, buy or sell, the solicitation of an offer to subscribe for, buy or sell or an invitation to subscribe for, buy or sell any securities or the solicitation of any vote or approval in any jurisdiction pursuant to, or in connection with, the proposed transaction or otherwise, nor will there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities will be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”), and otherwise in accordance with applicable law.

Participants in the Solicitation

This communication is not a solicitation of a proxy from any investor. Dover Downs, its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from stockholders of Dover Downs in connection with the proposed transaction. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of proxies in connection with the proposed transaction, including a description of their direct or indirect interests, by security holdings or otherwise, are set forth in the relevant materials filed with the SEC. Information regarding the directors and executive officers of Dover Downs is contained in Dover Downs’ definitive proxy statement in respect of the Dover Downs transaction, its proxy statement for its 2018 annual meeting of stockholders, filed with the SEC on March 29, 2018, its annual report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on March 1, 2018, its quarterly report on Form 10-Q for the quarter ended September 30, 2018, which was filed with the SEC on November 8, 2018 and certain of its current reports filed on Form 8-K. These documents can be obtained free of charge from the sources indicated above.

Forward-Looking Statements

This communication contains “forward-looking” statements as that term is defined in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, including future financial and operating results, the tax consequences of the transaction and the Company’s plans, objectives, expectations and intentions, legal, economic and regulatory conditions and any assumptions underlying any of the foregoing, are forward-looking statements.   

Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others (1) the risk that the proposed Dover Downs transaction may not be completed on the terms, in the time frame expected or at all; (2) unexpected costs, charges or expenses resulting from the Dover Downs and proposed Colorado transactions; (3) uncertainty of the expected financial performance of TRWH, including the failure to realize the anticipated benefits of transactions; (4) TRWH’s ability to implement its business strategy; (5) the inability to retain and hire key personnel; (6) the risk that stockholder litigation, result in significant costs of defense, indemnification and/or liability; (7) evolving legal, regulatory and tax regimes; (8) changes in general economic and/or industry specific conditions; (9) actions by third parties, including government agencies;(10) the risk that TRWH will be unable to complete any proposed capital return transaction on the terms, in the time frame expected or at all; and (11) other risk factors as detailed in the combined proxy statement/prospectus that was filed in a Registration Statement on Form S-4 with the SEC in connection with the Dover Downs transaction.  The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this communication. TRWH does not undertake any obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except per share data)







Quarter Ended December 31,



Year Ended December 31,





2018



2017



2018



2017



















Revenue:

















Gaming



$

83,825



$

75,288



$

327,740



$

314,794

Racing



2,718



3,152



13,158



14,034

Hotel



5,687



4,115



21,339



19,431

Food and beverage



12,465



10,935



48,380



47,004

Other



6,727



6,064



26,920



25,790

Net revenue



111,422



99,554



437,537



421,053



















Operating costs and expenses:

















Gaming



20,138



16,441



71,798



65,558

Racing



1,990



1,966



9,031



9,534

Hotel



2,352



1,713



8,266



7,173

Food and beverage



11,922



8,818



40,246



37,371

Advertising, general and administrative



33,507



37,229



156,023



155,336

Expansion and pre-opening



54



59



2,678



154

Newport Grand disposal loss



(27)





6,514



Depreciation and amortization



6,789



5,338



22,332



22,204

Total operating costs and expenses



76,725



71,564



316,888



297,330

Income from operations



34,697



27,990



120,649



123,723



















Other income (expense):

















Interest income



53



52



173



194

Interest expense, net of amounts capitalized



(6,774)



(4,910)



(23,025)



(22,809)

Total other expense



(6,721)



(4,858)



(22,852)



(22,615)



















Income before provision for income taxes



27,976



23,132



97,797



101,108



















Provision for income taxes



(5,846)



(3,978)



(26,359)



(38,861)

Net income



22,130



19,154



71,438



62,247

Deemed dividends related to changes in fair value of 

common stock subject to possible redemption



2,214



(668)



640



(2,344)

Net income applicable to common stockholders



$

24,344



$

18,486



$

72,078



$

59,903



















Net income per share, basic



$

0.66



$

0.51



$

1.95



$

1.64

Weighted average common shares outstanding, basic



37,080,705



36,486,318



36,938,943



36,478,759



















Net income per share, diluted



$

0.63



$

0.48



$

1.87



$

1.56

Weighted average common shares outstanding, diluted



38,503,938



38,485,001



38,551,708



38,442,944

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED  BALANCE SHEETS (Unaudited)

(in thousands)







 December 31, 





2018



2017

Assets









Current assets:









Cash and cash equivalents



$    77,580



$    85,814

Restricted cash



3,851



7,402

Accounts receivable, net



22,966



18,311

Other current assets



18,065



22,525

Total current assets



122,462



134,052











Property and equipment, net



416,148



335,548

Goodwill



132,035



132,035

Intangible assets, net



110,104



115,367

Other non-current assets



1,603



1,132

Total assets



$  782,352



$  718,134











Liabilities, Temporary Equity and Shareholders’ Equity









Current liabilities:









Current portion of term loan



$      3,595



$    33,325

Accounts payable



14,215



25,062

Accrued liabilities



57,778



57,849

Total current liabilities



75,588



116,236











Stock options





46,521

Deferred tax liability



17,526



11,646

Revolver borrowings



55,000



20,000

Term loan, net of current portion, discount and deferred financing fees



335,578



337,875

Total liabilities



483,692



532,278











Commitments and contingencies









Common stock subject to possible redemption





9,053











Shareholders’ equity:









Common stock



380



362

Additional paid in capital



125,629



67,910

Treasury Stock, at cost



(30,233)



(22,275)

Retained earnings



202,884



130,806

Total shareholders’ equity 



298,660



176,803

Total liabilities, temporary equity and shareholders’ equity



$  782,352



$  718,134

TWIN RIVER WORLDWIDE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)







 Years Ended December 31,





2018



2017

Cash flows from operating activities:









Net income



$    71,438



$    62,247

Adjustments to reconcile net income to net cash provided by operating activities:









Depreciation and amortization



22,332



22,204

Share-based compensation



(1,474)



17,791

Amortization of deferred financing fees



2,400



2,205

Amortization of original issue discount



867



1,082

Bad debt expense



202



29

Deferred income taxes



5,880



(5,126)

Newport Grand disposal loss



6,514



Loss on disposal of property and equipment



11



24

Changes in operating assets and liabilities



1,074



7,376

Net cash provided by operating activities



109,244



107,832











Cash flows from investing activities:









Repayment of loans from officers and directors



5,360



362

Proceeds from sale of land and building for Newport Grand disposal



7,108



Capital expenditures, excluding Tiverton Casino Hotel and new hotel at Twin

River Casino



(11,874)



(8,574)

Capital expenditures – Tiverton Casino Hotel



(94,581)



(34,355)

Capital expenditures – new hotel at Twin River Casino



(22,435)



(4,924)

Other investing cash flows



(1,178)



6

Net cash used in investing activities



(117,600)



(47,485)











Cash flows from financing activities:









Revolver borrowing



41,000



10,000

Revolver repayments



(6,000)



(25,000)

Term loan repayments



(34,527)



(11,564)

Stock repurchases



(7,958)



(2,275)

Other financing cash flows



4,056



(94)

Net cash used in financing activities



(3,429)



(28,933)











Net change in cash and cash equivalents and restricted cash



(11,785)



31,414

Cash and equivalents and restricted cash, beginning of period



93,216



61,802

Cash and equivalents and restricted cash, end of period



$  81,431



$  93,216

TWIN RIVER WORLDWIDE HOLDINGS, INC.

Reconciliation of Net Income and Net Income Margin to

Adjusted EBITDA and Adjusted EBITDA Margin (Unaudited)

(in thousands)







Quarter Ended December 31,



Year Ended December 31,





2018



2017



2018



2017



















Net revenue 



$    111,422



$        99,554



$    437,537



$    421,053



















Net income



$      22,130



$        19,154



$      71,438



$      62,247

Depreciation and amortization



6,789



5,338



22,332



22,204

Provision for income taxes



5,846



3,978



26,359



38,861

Interest expense, net of interest income



6,721



4,858



22,852



22,615

Merger and going public expenses (1)



2,292





6,636



Newport grand disposal loss (2)



(27)





6,514



Pension withdrawl expense (3)







3,698



Expansion and pre-opening expenses (4)



54



59



2,678



154

Non-recurring litigation expenses (5)



626



678



1,861



1,722

Pension audit payment (6)



1,400





1,400



Share-based compensation 



(8,825)



3,994



(1,474)



17,791

Legal & financial expenses for strategic review (7)



4



226



676



822

Credit agreement amendment expenses (8)



83





493



106

Acquistion costs (9)



208





208



Storm related repair expense (10)



(321)



250



26



250

Adjusted EBITDA



$    36,980



$      38,535



$  165,697



$  166,772



















Net income margin



19.86%



19.24%



16.33%



14.78%

Adjusted EBITDA margin



33.19%



38.71%



37.87%



39.61%





(1)

Merger and going public expenses primarily include legal and financial advisory costs related to the merger with Dover Downs and one-time costs of becoming a public company.

(2)

Newport Grand disposal loss represents the loss on the sale of the land and building, write-down of building improvements and write-off of equipment.

(3)

The pension withdrawal expense represents the accrual for the New England Teamsters Multi- employer pension plan withdrawal liability.

(4)

Expansion and pre-opening expenses represent costs incurred for Tiverton Casino Hotel prior to its opening on September 1, 2018.

(5)

Non-recurring litigation expense represents legal expenses incurred by TRWH in connection with certain litigation matters (net of insurance reimbursements).

(6)

Pension audit payments represents a charge for out-of-period unpaid contributions, inclusive of estimated interest and penalties, to one of the Company’s multi-employer pension plans.

(7)

Legal and financial expenses for the strategic review include expenses associated with TRWH’s review of strategic alternatives that began in April 2017.

(8)

Credit Agreement amendment expenses include costs associated with amendments made to TRWH’s Credit Agreement.

(9)

Acquisition costs represent costs incurred during the year associated with the Company’s announced acquisition of three casinos in Black Hawk, Colorado from Affinity Gaming.

(10)

Storm-related repair expenses include costs, net of insurance recoveries, associated with damage from Hurricane Nate at Hard Rock Biloxi.

TWIN RIVER WORLDWIDE HOLDINGS, INC.

Calculation of Gross Gaming Revenue (Unaudited)

(In thousands)







Quarter Ended December 31,







Year Ended December 31,









2018



2017



Change



2018



2017



Change



























Net gaming revenue



$             83,825



$             75,288



11.3%



$    327,740



$    314,794



4.1%

Adjustment for the State of RI’s  share of net

terminal income, table games revenue and other

gaming revenue (1)



99,710



86,774







389,203



370,604





Gross gaming revenue



$         183,535



$         162,062



13.3%



$  716,943



$  685,398



4.6%





(1)

Adjustment made to show gaming revenue on a gross basis consistent with gross gaming win data provided throughout the gaming industry.

Calculation of Leverage (Unaudited)

(In thousands, except times levered)







Year Ended December 31,





2018



2017

Face Value of Debt (1)



$    397,439



$  396,966

Adjusted EBITDA (2)



165,697



166,772

Leverage



 2.4x 



 2.4x 





(1)

Outstanding debt before unamortized original issue discount and unamortized term loan deferred financing costs of $3.3 million and $5.8 million in 2018 and 2017, respectively.

(2)

See reconciliation of GAAP net income to Adjusted EBITDA above.

Source: Twin River Worldwide Holdings, Inc.

George Miller started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

Continue Reading
Advertisement
Comments

Gambling in the USA

Expectations on Online Gambling in the US

Niji Narayan

Published

on

Photo source: rightcasino.com
Reading Time: 2 minutes

The U.S. casinos have already entered into the list of the burning issues of the United States. Nevada is a national gambling symbol in the US, while some of the states impose strict restrictions even on the online casinos. The recent tendencies in the American online gambling market look quite promising.

Around 90% of the American gamblers easily switched from a traditional casino to the online platforms introducing the same services. At the same time, 85% of the US gambling niche income is generated by its online segment. On average, the industry of sports betting reaches the exorbitant figures – $400 billion a year.

It is obvious that the US cannot impose a strict federal ban on online gambling. The only obstacles may exist on the state level, where the situation is quite paradoxical. Depending on the state, the national operators have to satisfy a long list of the legal requirements to get a proper license.

It seems that the endless war between the operators and the state laws is getting tense: many of the gambling icons keep pushing the respective bills about partly legalisation of online casinos.

The milestone to block the decision-making process on a state level is taxation rates for the online casino operators. Some of the fees make it clear that the government would like to benefit from the business as much as the actual providers.

Despite a few legal opportunities, the online gambling niche in the US is blossoming. This business will soon reach its peak and will demand some more room for expanding its influence and audience.

In the nearest future, we can expect some further improvements. There is nothing to hold the industry from further development. Recognising the providers’ needs will resolve lots of issues related to illegal gambling. This should be a minimum benefit the federals cannot resist.

Continue Reading

Gambling in the USA

DOJ Appeals the District Court Decision on Wire Act Case

Niji Narayan

Published

on

Photo source: nodepositkings.com
Reading Time: 1 minute

The Department of Justice has filed its intent to appeal a district court decision on the Wire Act to the First Circuit Court of Appeals.

In June, a federal judge in the New Hampshire District ruled that the Wire Act applies only to sports betting and not to other forms of interstate gaming.

The New Hampshire Lottery and its vendor had filed the federal case because of the DOJ’s change in stance on the interpretation of the Wire Act.

The DOJ in 2011 had stated that the Wire Act applied only to sports wagering. But it reversed the course with a memo from 2018, expanding the possible reach for federal prosecution which triggered worries about its applicability to online gambling, lotteries and other forms of gaming that potentially cross state lines.

The New Hampshire District judge had forecast that the case would likely reach the US Supreme Court. While the case is going on, the DOJ has said it would not enforce the new interpretation of the Wire Act until 2020.

“The Department’s action, while hardly unexpected, is certainly unwarranted. DOJ generally files appeals of adverse district court decisions as a matter of course. We hope that, rather than engaging in a protracted, expensive and ultimately unsuccessful legal fight, the Department will take this opportunity to negotiate a settlement which will focus the Wire Act and DOJ’s enforcement resources on the right targets – the unlicensed illegal offshore Internet gambling operators who do not create jobs or tax revenue in the U.S. and do not appropriately protect consumers,” Jeff Ifrah, founder of iDEA Growth (an online gambling lobbying group) said.

Continue Reading

Gambling in the USA

NFL Issues Prohibitions on Sports Betting

Niji Narayan

Published

on

Photo source: onlinegambling.com
Reading Time: 1 minute

NFL has issued strict prohibitions on sports betting. In an email sent to NFL employees, vendors and contractors, the league made it clear that gambling on sports could lead to losing one’s job.

NFL’s communication said, in part:

“Gambling, particularly betting on NFL games or other sports, presents risks to the integrity of our competition and team cohesion, and can undermine the confidence and trust of our fans and colleagues in America’s greatest game. We therefore owe it to our fans and everyone associated with the League to take all appropriate steps to safeguard our game against possible threats from illegal gambling as well as gambling in a legal, regulated context.”

The memo spelled out forbidden activities and practices in detail. Prohibitions include:

Gambling at offshore sites or in states without legal sports betting

Gambling in any form on NFL games

Offering inside info or tips on a team or game

Setting foot in a sportsbook during the season

Betting in any form on anything in any NFL facility

Promoting any kind of gambling entity

Owning any part of a casino or sports betting operation

These restrictions are applied to owners, players and various vendors and contractors. Players are also implored to always give a “best effort” in any game to avoid the appearance of impropriety.

Non-sports wagering is allowed so long as employees do not physically enter a sportsbook to place the bet. Online or third-party wagers are allowed if done through state-approved operations. The league has made an exception for fantasy leagues with prizes under $250. Daily fantasy sports remain a violation of league policy.

The process of review and potential punishment for the rule violations lay at the feet of Commissioner Roger Goodell, who, according to the memo will make assessments on a case-by-case basis.

Continue Reading
Advertisement
NSoft

Global Gaming Industry Newsletter – Weekly Digest (sent every Wednesday)

Please select all the ways you would like to hear from European Gaming Media and Events:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here. Read more about European Gaming Media and Event's Privacy Policy and Terms of Service.

Subscribe to our News via Email

Enter your email address to subscribe to our news and receive notifications of new posts by email.

Latest by author

Trending

Notice for AdBlock users

We are constantly showing banners about important news regarding events and product launches. Please turn AdBlock off in order to see these areas.