District Court Judge Jia Cobb recently ruled in favor of Kalashi, which the Commodity Futures Trading Commission (CFTC) previously blocked from offering election markets. The CFTC regulates the company and others like it. Kalashi sued the commission in 2023, arguing it overreached when it barred the exchange from offering cash-settled election outcome contracts. Last than two months before the 2024 presidential and congressional elections, Cobbs ruling was released. In it, the judge pointed out that the contracts offered by Kalashi are neither gaming nor an illegal act.

This case is not about whether the Court likes Kalshi’s product or thinks trading it is a good idea,” Cobb stated in her opinion. “The Court’s only task is to determine what Congress did, not what it could do or should do. And Congress did not authorize the CFTC to conduct the public interest review it conducted here.”

Soon after Cobb’s ruling, two election-related? betting markets went live on Kalashi — one each on whether Democrats or Republicans will have control of the House and Senate after the Nov. 5 elections.

Interactive Brokers Election Betting Access Could Be Boon for Bettors

To date, betting in the traditional sense on US elections has been illegal in this country, but some companies have been able to get into the election game by doing things differently. For example, Polymarket has seen a surge in interest, helped in large part by the 2024 election, by allowing clients to purchase shares in an event and because the shares are an asset, the asset does not constitute a bet.

For bettors and market participants that want to invest in the 2024 election, the access provided Interactive Brokers could prove crucial. The company runs the largest electronic trading platform in the US, procession more than three million trades per day and is regulated. Interactive Brokers has more than 1.7 million client accounts, indicating there could be significant profit potential in allowing clients to wager on elections.

The demand is there. As of early August, data indicated more than $1 billion had been wagered on the US presidential race in gray market venues such as PredictIt and Smarkets.

Interactive Brokers Has Relevant Experience

Interactive Brokers has experience in finance-related event contracts. It recently launched its ForecastEx platform, which allows bets on economic data such as consumer sentiment, inflation, and the monthly jobs reports.

Other financial services firms are getting into the game, too. Earlier this year, trading house Susquehanna International Group commenced making markets on Kalashi relating to the Federal Reserve’s plans for interest rates and movie reviews.

Still, some groups believe election betting isn’t appropriate and could weaken democracy.

“Democracy in America is at a fragile crossroads, with more Americans questioning the integrity of elections than ever before” said Cantrell Dumas, director of derivatives policy at Better Markets, in a statement. “The shocking attack on the Capitol on January 6, 2021, is just one glaring example, but across the country, less visible incidents continue to chip away at the public’s confidence in our elections and democracy itself. In this shaky political moment, the last thing our country needs is for democracy to be undermined further by allowing gambling on elections.”

The post Interactive Brokers to Debut Election Betting as Kalshi Scores Legal Win appeared first on Casino.org.

GambetDC was previously the lone mobile sports wagering application in the US capital city. However, due to a spate of controversies and disappointing performance, Intralot outsourced the operation of its app to Flutter Entertainment’s FanDuel, which took control in April. FanDuel paid a $5 million conversion fee to the Office of Lottery and Gaming (OLG) to take over for Intralot.

That set the stage for FanDuel to explore terminating its contract with the OLG, and for the likes of Caesars Sportsbook and BetMGM to offer mobile sports wagering in the city. As a result of that expansion, Caesars was able to land the kiosk business.

Caesars Familiar to DC Bettors

While Caesars doesn’t operate a land-based casino in Washington, DC, bettors are familiar with the gaming company and its brand. Before offering mobile sports wagering there in July, the company opened a retail sportsbook at Capital One Arena in 2021 – the first sportsbook in a US professional sports team’s home court or stadium.

Our self-service betting kiosks are an excellent addition to our sports wagering options in DC,” said Caesars Digital President Eric Hession in a statement. “Whether sports fans prefer a traditional ticket-in-hand wagering experience or want to simply deposit cash for their mobile app account, our kiosks enhance the premier sports betting experience we offer through the combination of options and convenience that supports dozens of small businesses locally.”

In addition to being able to use the kiosks to place wagers, bettors can also use the machine to add funds to their Caesars Sportsbook mobile accounts. Bets placed via kiosks are also eligible for rewards credits in the Caesars Rewards program.

The kiosks are located throughout the city and are found in bars, taverns, restaurants, and at official lottery retailers.

Caesars Branding Could Help Allay Kiosk Concerns

When the city opted to expand its mobile sports betting market, retailers that are home to the kiosks expressed concern that the move would diminish the appeal of the devices, thus pinching an important revenue stream.

In its press release, Caesars didn’t touch on that issue, but it’s possible the gaming company’s well-known brand and iconic logo will entice bettors to continue using the kiosks.

Financial terms of the gaming company’s deal with the OLG weren’t disclosed.

The post Caesars Takes Control of Washington, DC Sports Betting Kiosks appeared first on Casino.org.

“Siemens’ investment in Upstate New York will lay the foundation for the next chapter of our nation’s transportation future,” US Senate Majority Leader Chuck Schumer said in a statement.

“Millions of annual riders between Las Vegas and Southern California stand to benefit from the train sets to be built in Upstate New York, and I know the local community will benefit as well,” said Federal Rail Administration Administrator Amit Bose in a statement.

Brightline West’s American Pioneer 220 trains will travel up to 186 mph along a 218-mile route from Las Vegas to Rancho Cucamonga, Calif. that follows the Interstate 15 corridor. This will serve as built-in advertising for the service to commuters stuck in frequent jams on the busy freeway.

The trains will stop in Ivanpah, Apple Valley, and Hesperia before Rancho Cucamonga, where passengers can connect with light rail to travel the 37 additional miles east to downtown LA.

Can the Project Stay on Track?

Brightline hopes to have trains operating in time for the Summer Olympics in Los Angeles in 2028. In April, US Transportation Secretary Pete Buttigieg came to Las Vegas to ceremoniously break ground on the project and insist that this timeline was still accurate.

However, back in March, Casino.org interviewed a UNLV engineering professor and high-speed rail expert who had serious concerns about the potential construction obstacles ahead.

Money Train Not There Yet

Brightline also still has yet to account for about half of its $12 billion budget. It already received $6.5 billion from the Biden administration, including a $3 billion grant from federal infrastructure funds and approval to sell another $2.5 billion in tax-exempt bonds. The company received federal authorization in 2020 to sell $1 billion in similar bonds.

Figuring in an hour for light rail, that’s still more than twice as long as an average flight from LA to Las Vegas, at a roundtrip price of $75 more than flying.

Numerous high-speed rail projects have failed in the US, where driving is cheaper and population centers farther apart than in Europe, where high-speed rail is commonplace and profitable.

Brightline West is now the closest that any US high-speed rail project has ever gotten to actually leaving a station.

The post How the Inside of Las Vegas’ High-Speed Trains Will Look appeared first on Casino.org.

Speculation recently surfaced that Genius, a data provider to sportsbooks, was mulling a takeover of Sweden-based Kambi, but Anders Str?m, chairman of the Kambi board of directors, said no such conversations have taken place.

While Kambi tends not to comment on rumour and speculation, I can confirm that Kambi is not engaged in any such discussions,” he said in a statement.

With its shares up 15.35% year to date, Genius has the currency with which to hunt for deals. It has a market capitalization of $1.5 billion, which is well above Kambi’s market value of $370.1 million.

Kambi Takeover Rumors Getting Old

Rumors about Kambi being a target aren’t new. In fact, they date back to at least the second quarter of 2023, and the purveyors of the chatter have some factors to hang their hats on.

Furthering the speculation is the fact that Kambi recently pulled its longer-ranging financial targets, in part citing regulatory issues in Brazil. That prompted the resignation of then-CEO Kristian Nylén. High-level executive departures often stoke takeover talk.

Additionally, more gaming companies are looking to bring sports wagering technology in-house, which could further the allure of Kambi as a takeover candidate. The company’s North American clients include Bally’s, Churchill Downs, Penn Entertainment, and Rush Street Interactive, among others. Kambi also works with gaming companies throughout Australia, Europe, and Latin America. The corporation recently extended its partnership with Rush Street.

Genius Sports Denies Rumor, Too

Genius Sports also denied the scuttlebutt.

As policy, we do not comment on unfounded and ill-informed rumors. To prevent any further speculation, we can confirm that we are not involved in any discussions of this nature with Kambi,” said CEO Mark Locke in a statement.

While Genius might not be interested in Kambi, there could be an ample number of other potential suitors should the firm put itself up for sale. After the company adopted the poison pill provision in 2022, Alinea Capital Management, a Norwegian hedge fund, said there could be as many as six US-based companies interested in buying Kambi.

The post Kambi Refutes Rumor of Potential Takeover by Genius Sports appeared first on Casino.org.

Miami-based Betr has market access for online sports betting in six states, and has an extensive media division that includes betting and sports podcasts. Welch’s “Talk Tuah” weekly podcast will be part of the Betr Media unit and is scheduled to debut on September 10.

Betr Media’s deal with Welch comes on the heels of the company’s latest strategic expansions to its monetized content portfolio, including the acquisition of the Caps Off and Hot Corner podcasts from The Game Day,” according to a statement.

Financial terms of the agreement weren’t disclosed and the extent to which Welch will discuss betting isn’t yet known. In July, the Tennessee native’s 16 Minutes LLC filed a variety of trademark applications, including one for “Bet On That Thang” — a spin on a provocative comment made by Welch in the video that launched her to internet stardom.

Betr, Welch Could Be an Ideal Pair

Betr, which emphasizes microbetting, could be the ideal avenue through which Welch can extend and grow her fame.

“Betr Media is one of the fastest growing sports betting media brands in the United States that has grown to over 7.3 million followers, 4 billion impressions, and 209 million engagements across its social channels since publicly launching in August 2022,” according to the company.

Internet celebrities, such as Welch, are often popular with the 21 to 35 age demographic, particularly males – a group that’s highly coveted by gaming companies. In announcing the deal with Welch, Betr didn’t comment on the media arm’s ability to drive visitors to the company’s betting offerings.

‘Talk Tuah’ Could Be a Smorgasbord

As noted above, how much wagering content will be featured on “Talk Tuah” remains to be seen, but Welch provided some insight as to how the podcast will shape up.

My show will have a little of everything – great guests, laughs, chit-chats about your pets, relationship pointers, sports, and of course, some down-home southern charm,” she said in the press release.

Betr added that its fantasy sports pick ‘em offering is available in 25 states and Washington, DC — a figure that’s expected to increase to 33 states in the weeks ahead. Welch’s home state of Tennessee permits mobile sports betting.

The post Hawk Tuah Girl Hailey Welch Inks Podcast Deal with Betr appeared first on Casino.org.

Some analysts believe the sports betting data provider has more upside in store for investors. In a note to clients today, B. Riley analyst David Bain reiterated a “buy” rating on Genius with a $10 price target, implying upside of 31.2% from today’s close.

On its 2Q24 earnings call, GENI stated it expects 20%-plus revenue growth for the ‘foreseeable future,’” wrote Bain. “However, calendar year (CY) 25E consensus sales growth is 14%. 20% growth from CY24E estimates implies an additional $29M of CY25E revenue versus consensus. Using GENI’s general midpoint flow-through guidance implies an additional $12M of EBITDA, 11% higher than CY25E consensus EBITDA estimates.”

With the arrival of football season, Genius could further be in focus because it is the exclusive provider of the NFL’s real-time, official play-by-play statistics, which are in high demand by sportsbook operators because football is the most wagered on sport in the US.

Genius Sports Could Notch Near-Term Upside

The arrival of football season is seen as a boon for a variety of gaming companies and while Genius is a business-to-business firm, expectations that bettors will wager more than ever before on the NFL could be a legitimate catalyst for the already high-flying stock.

“We estimate a 500 bps mix shift to U.S. OSB NFL-only in-play from pre-match wagering equates to an additional $3M of EBITDA to GENI. Operators have been transparent about increasing the in-play mix of betting with additional propositions, placing in-play betting opportunities, and using low-latency technology (including GENI’s BetVision),” noted Bain.

The analyst added that markets may not yet be fully appreciating the potential positive impact in-game wagering expansion could have on Genius shares.

Genius Sports Has Other Catalysts

In July, Genius announced a deal with X (formerly Twitter), one of the largest social media platforms in the world. Under the terms of the agreement, Genius will leverage its ad-tech products to deliver advertisements specific to conversations taking place on X.

With more media rights negotiations coming up, ad-tech could be unheralded catalyst for Genius shares while diversifying the company’s revenue stream.

“While more difficult to quantify, we believe many of GENI’s new ad tech offerings — ads placed directly into live streams or a self-service platform offering GENI’s unique data for advertisers to use in ad buys (100% margin business for GENI) — are potential levers for media growth relative to consensus. We believe some U.S. take-rate negotiations will benefit GENI’s media division with higher go-forward commitments,” concluded Bain.

The post Genius Sports Has Upside Levers, Says Analyst appeared first on Casino.org.

The gaming company made the decision as part of its strategic review of its US operations, and it arrived about two months after BlueBet announced plans to leave Indiana. At that time, the operator indicated it intended to continue doing business in Colorado, Iowa, and Louisiana, but it also told investors the strategic review was ongoing. By leaving the US, BlueBet can better focus on its Australian business, which is thriving.

The company’s stated objective is to exceed 10% market share in the short- to mid-term through a combination of organic and inorganic growth,” according to a statement. “It is confident its expertise in building and scaling Australian wagering operators and ongoing investment in technology will deliver outstanding experiences for customers and create value for shareholders.”

BlueBet acquired Aussie rival Betr in April, combining the buyer’s technology stack with the target’s strong customer base. By leaving the US, BlueBet can focus on tapping synergies in that deal.

BlueBet Will Save Cash By Leaving US

Although the US is the newest large regulated sports wagering market in the world, it’s fast become one of the most competitive and expensive to operate in. Those costs especially weigh on smaller operators such as BlueBet.

“The decision to exit the US comes as slower than expected regulation has hampered total market growth and hindered interest in the company’s B2B SaaS platform, which BlueBet viewed as a significant opportunity,” the company added in the statement.

Though it didn’t mention any rivals by name, BlueBet acknowledged the difficulties smaller operators face in the US when going up against larger rivals. Currently, the US sports wagering is essentially a duopoly controlled by FanDuel and DraftKings.

With BlueBet, US Sports Betting Casualties Piling Up

With BlueBet confirming it’s abandoning the consumer-facing side of the US sports betting market, “deaths” in the space are piling up at a rapid pace. BlueBet’s decision arrived less than two weeks after Betfred said its considering a similar move.

BlueBet added that it will continue to seek monetization of its technology assets in the US and abroad. It expects to take one-time charges related to the closures of its various state-level operations.

The post BlueBet Departing US Sports Betting Market appeared first on Casino.org.

Financial terms of the transaction weren’t disclosed. When rumors of the deal surfaced in May, it was speculated that DraftKings could pay $120 million to $170 million for privately held Simplebet. The pair have an existing relationship. In 2021, they inked a deal in which Simplebet provided microbetting services to DraftKings Sportsbook.

The Proposed Transaction would allow for the integration of Simplebet’s proprietary machine-learning models into DraftKings’ best-in-class pricing and technology platform to create highly accurate betting opportunities during every moment of a game,” according to a statement issued by the buyer. “The Proposed Transaction would improve the quality, breadth and speed of data throughout the DraftKings trading lifecycle, and would unlock a faster and more frictionless experience for the Company’s customers.”

Boston-based DraftKings is Simplebet’s largest client. The target was valued at $210 million following a Series C funding round of $28.6 million three years ago.

Simplebet Could Be Smart Deal for DraftKings

For DraftKings, the purchase of Simplebet could prove shrewd because microbetting is a fast-growing derivative of in-game or live betting — areas operators are pushing into in efforts to increase handle and revenue.

In-game wagering has long been popular in mature sports wagering markets such as Australia and Europe, and it’s rapidly gaining momentum in the US. Underscoring why DraftKings may have found Simplebet to be an alluring target is the need for technology to make live and microbetting work.

“Simplebet has developed a scalable, maintainable, and highly performant foundation for a live betting platform that is algorithm oriented. With machine learning and automation to supplement the betting experience, Simplebet’s proprietary models offer more in-play moments for bettors,” according to the DraftKings statement.

Inside Simplebet’s Story

New York-based Simplebet was founded in 2018 and is a business-to-business provider of microbetting markets on college basketball and football, Major League Baseball (MLB), the NBA, NFL, and the NHL.

In addition to DraftKings, Simplebet sportsbook clients include Caesars Sportsbook, ESPN Bet, FanDuel, and Hard Rock Sportsbook, among others.

It’s not yet clear if those operators will remain with Simplebet when it becomes part of DraftKings or if they’ll pursue microbetting relationships with Simplebet competitors.

The post DraftKings Buying Microbet Provider Simplebet appeared first on Casino.org.

For example, a bettor that signs up for a BetMGM account at one of MGM Resorts International’s Las Vegas Strip casinos can use that account when traveling to Arizona, Louisiana, Michigan, Ontario, Canada, or the other areas in which BetMGM is licensed to accept sports wagers.

Through its operation and partnership with MGM Resorts International and powered by Entain’s technology, this innovative feature makes BetMGM the only legalized sports betting app to allow Nevada residents and visitors to wager in the state and carry their funds to BetMGM mobile markets nationwide,” according to a press release.

When customers that set up BetMGM accounts in Nevada travel to another state where the app is operational, they’ll see a pop-up message in the app that allows them to select the version of the app specific to the state that they’re in at that moment. So when a Nevada account holder travels to New York and opens the BetMGM app, they’ll see a message that directs them to a menu that allows them to switch to the New York version of the app.

More Convenience for Nevada Bettors…Sort Of

The BetMGM news is noteworthy in that the operator is the first with clear ties to Nevada that has leveraged technology so that its Nevada accountholders don’t have to sign up for new sports wagering accounts when they travel to other states.

That barrier is having financial consequences for the state. For example, in 2023, Nevada bookmakers booked $1.7 billion more in sports wagers than equivalent operators in Arizona, but the latter hauled in $77 million more in revenue because it permits new account signups over computers and phones.

Some experts see Arizona’s sports betting revenue advantage over neighboring Nevada growing to $100 million to $200 million annually until the Silver State scraps the in-person registration rule.

Who Else Could Follow BetMGM?

BetMGM’s ability to link Nevada wallets to other states is something of an achievement in mobile sports betting technology and it could spur similar efforts among rivals, albeit a limited number. Of the largest sportsbook operators in Nevada, only BetMGM and Caesars Sports conduct business in a slew of other states, meaning Caesars would be the most likely to attempt to mimic the BetMGM technology.

The other large Nevada sportsbook operators include Boyd Sports, Circa, and STN Sports. Boyd and STN only book bets in Nevada meaning there’s no need to link bettors’ accounts to other states.

Neither FanDuel nor DraftKings – the two largest online sportsbook companies in the US – are licensed in Nevada.

The post BetMGM Nevada Wallet Now Usable in Other States appeared first on Casino.org.

But travelers on that road received a surprise when they passed the first bar on the right and something called out to them.

“I said, ‘I’m gonna buy a condominium,’” the robot mimed along to the recording. “She said, ‘I don’t care, I’m going to take a pill anyway.’”

The Other Tin Man

So WTF was an animatronic Foster Brooks doing in the Emerald Forest? And why, of all the entertainers that a multimillion-dollar entertainment corporation could have immortalized at a Las Vegas bar in 1993 — from Dean Martin to Dudley Moore to anyone from “Cheers” — did it choose Foster Brooks for the animatronic treatment?

We’ll have all the answers for you shortly. But first, please congratulate yourself for reading this. Your curiosity is definitely not mainstream. As someone from the theme park podcast @PodcastTheRide tweeted last year: “If you’re in the market for a new Most Obscure Reference On Earth, try the Foster Brooks drunken animatronic in the MGM Grand lobby bar.”

And that’s a definition of obscure from someone who records podcasts about theme parks.

“The Foster Brooks robot is like the Nedra Harrison of robots,” noted “SpongeBob SquarePants” writer Jack Pendarvis in his 2008 Blogspot blog. “Neglected by our culture! Why does the lack of Foster Brooks robot information depress me?”

Well, Jack, here you go. We hope 16 years late is better than never.

By the way, if you’re like us and didn’t know, either, Nedra “Kewpie” Harrison served as the basis for the Dragon Lady in the 1939 comic strip “Terry and the Pirates,” a model for Salvador Dali paintings, and an undercover agent for the OSS during World War II.

If you Google “Nedra Harrison” today, however, the first page and a half of results identify a surgeon in Scottsdale, Ariz.

Who the Hell Was Foster Brooks?

Pendarvis nailed it on the head in just two sentences: “Foster Brooks was a comedian who pretended to be a drunkard. That was his whole act.”

“The Loveable Lush” (his self-applied nickname as well as the title of his 1973 album) told sub-hysterical jokes to nightclub audiences, talk-show hosts, and Dean Martin Roast daises while mumbling and hiccupping through a fake fog of inebriation.

One of the biggest laughs Brooks always got came from mentioning the name of the organization he founded: “Alcoholics Unanimous.”

How this guy ended up having a successful comedy career is something you should never try explaining to a member of Gen Z. It’ll just make us look bad.

It all started with Steve Allen. The first host of “The Tonight Show” heard the former Louisville, Ky. TV morning man doing his drunk shtick and invited him to perform it on his talk show, which ran in syndication from 1962 to 1964.

You didn’t eff with Perry Como.

Brooks reportedly became the highest-paid opening act on the Strip in the ’70s, pulling down $40K per week to open for Robert Goulet, Buck Owens and Juliet Prowse at the Desert Inn and Frontier.

He also appeared regularly on “The Dean Martin Variety Show,” for which he won an Emmy nomination in 1974, and on several of the era’s sitcoms and game shows. All his appearances were made as the Loveable Lush — this despite the fact that he quit drinking in 1964.

By 1993, Brooks’ one-trick career had quieted down significantly, with occasional gigs paying him a reported $2,000 a pop. So when the MGM Grand offered him $10K a year — for 10 years — to license his likeness for the robot attraction, he couldn’t be any more all in.

So Who’s to Blame for the Robot?

Not John Wood. He’s the very nice president and chair of Sally Dark Rides, the Jacksonville, Fla.-based theme park company that built the animatronic 31 years ago.

Yes, we tracked Wood down, and his company’s work can still be found in Vegas. It designed the new “Spongebob Squarepants” attraction — callback alert! — at Circus Circus.

According to Wood, Fred Benninger commissioned the build just because Brooks was one of his favorite comedians. It’s as simple as that.

Benninger, about 75 at the time, was the chair of MGM Grand Inc. And you try telling the chair of the corporation you work for that any idea he comes up with is ridiculous.

“Fred really liked Foster Brooks and I was delighted that they needed some entertainment in the Betty Boop Lounge,” Wood told us.

The robo-holic, which sat at a little table roped off from the rest of the bar, took a reported $150K ($323K today) and 825 man-hours to build, though Wood said he doesn’t recall the specifics anymore and the records are no longer available to him.

Wood’s company did a bang-up job of making the thing, though, considering the technology of the day.

At the end of the set, according a Betty Boop Lounge bartender, the guy left the robot a tip at its feet, apparently because it wouldn’t take the $2 from his hands.

Check out the Foster Brooks robot yourself in this 1995 video. It appears just after the two-minute mark…

(YouTube/EnergeticWaves)

Meeting of the Brooks Brothers

It was veteran Vegas entertainment journalist Mike Weatherford who hatched the inspired idea to take Brooks, who lived part-time in Las Vegas, to visit his silicone-coated counterpart for the first time in April 1994, and write about it for the Las Vegas Review-Journal.

I set it up and did it entirely on my own,” Weatherford told Casino.org. “And when I got hold of Foster Brooks, I was shocked that he hadn’t been there to see his robot before. I remember I had to go get him and pick him up at his house and drive him over there.”

Brooks, 81 at the time, walked slowly through the resort with a cane, due to a severe case of gout.

“I was feeling every painful step of it,” Weatherford recalled.

When the historic meeting took place, a small crowd gathered to watch.

This wasn’t necessarily because any of them knew who Foster Brooks was by 1994. Just as likely, they were drawn by the spectacle of a man observing his robotic twin as a professional photographer snapped photos.

Brooks stood speechless as he stared long and hard into the dead glass eyes of his replicant.

Finally, he announced, rather anticlimactically: “I look like an old man, which is what I am. It’s better than I’ll look when I’m dead, I guess.”

Terminated

Brooks’ figure was removed, along with the nonanimated “Wizard of Oz” dummies, during a house-cleaning 1996-97 renovation. Its fate was never officially addressed by the MGM Grand or its parent company.

“I never heard that one,” Wood said, adding the revelation that tried to buy the robot back, but MGM wouldn’t sell it to him.

“Of course, the license might have had something to do with that,” he said.

The real Brooks also wanted the robot when MGM was done with it, he told Weatherford, though that never happened, either. Brooks retired to Encino, Calif., where he died at age 89 in 2001 — eight years into the robot’s 10-year contract.

It’s comforting to imagine the robot being discovered one day in a forgotten MGM warehouse or someone’s grandfather’s storage unit.

“Somebody has it,” Weatherford said. “Anything with some curiosity value like that? I’m sure.”

Or not. Foster Brooks’ granddaughter, Teri Elmendorf McLean, emailed us what sounds like the missing puzzle piece after reading an earlier version of this story.

McLean reported reaching out to the MGM Grand around 2003, asking whether they’d sell it to her as a way to remember her grandfather.

“They told me they had already dismantled him and use the parts elsewhere,” she said.

So there it is. The Foster Brooks robot is now … everywhere — at least at the MGM Grand.

“Lost Vegas” is an occasional?Casino.org?series spotlighting Las Vegas’ forgotten history.?Click here?to read other entries in the series. Think you know a good Vegas story lost to history? Email [email protected].?

The post LOST VEGAS: The Foster Brooks Robot at MGM Grand appeared first on Casino.org.

The good news is that it’s not good enough. Not nearly — at least, not this week.

The Experiment

For our recent story about what happened to the art from the Silver Slipper, art collector Gary Autry told us that the casino was purchased by Steve Wynn, who knocked it down in 1988.

We just spaced on the exact year. So, instead of looking up the story we wrote, we decided to use this situation as a proving ground for ChatGPT. We asked it when Steve Wynn bought the land on which the Silver Slipper once stood.

We like to do this little thing known in the last millennium as fact-checking. So whatever answer we got, we were going to check it anyway. But we were curious what that answer would be. And we were not let down….

AI not only answered our question incorrectly, it threw in a bonus falsehood. Wynn did not purchase the land in 1989, and he built The Mirage nowhere near the Silver Slipper. The Mirage, which in 2027 will reopen as the second Hard Rock Las Vegas, occupies the former site of the Castaways casino hotel.

Already envisioning the very story you’re reading now, we pointed out to AI its incorrect answer without guiding it to a correct one. We replied “that’s not true” and grabbed some popcorn. Here was AI’s response to that…

Was this a joke? Had AI detected our little experiment and decided to conduct its own retaliatory one on us?

Casino developer Michael Gaughan had nothing to do with either the Silver Slipper or Sahara, which was opened exactly where it stands today, nowhere near the Silver Slipper, back in 1952.

Bot Out of Hell

We could have kept typing “that’s not true” over and over, hoping for ChatGPT to self-destruct like that floating computer that began spouting smoke from its ears on the original “Star Trek.”

But we don’t have the capital to blow up a laptop. And besides, as a human, we had become overwhelmed with frustration and needed to scream at ChatGPT.

ChatGPT handled our anger very calmly and professionally. It replied with a handy timeline containing more inaccuracies. Can you spot them all? Let’s make this a fun game now…

You’re welcome, AI. OK, now here are all the new inaccuracies you just introduced…

1. The STRAT was developed on the site of Vegas World, which was opened by Bob Stupak in 1979, not the Silver Slipper.

2. The Pioneer Hotel and Gambling Hall is located in Laughlin, Nev. It was a sister property to the former Pioneer Club in downtown Las Vegas. Margaret Elardi, who owned both the Frontier and Silver Slipper, also owned both Pioneer casinos but she never built another one, or planned to, on the Strip.

3. There is no Sam Elardi — at least not in the annals of Las Vegas history. We realize this now, of course, though we still have no idea what annals are. But in the moment, we relied solely on our memory, which turned Margaret Elardi into a man named Sam. Nevertheless, you somehow confirmed that this nonexistent Sam Elardi did, in fact, acquire the site of the Silver Slipper. So we count that as your third inaccuracy.

We apologize for our sexist memory. We are only human. What’s your excuse, AI?

At this point, we asked ChatGPT, two more times, what year Steve Wynn acquired the Silver Slipper land. And we got two new incorrect answers. (We can’t make this up!) The first was 1998 and the second was delivered along with this doozy…

Steve Wynn built Wynn Las Vegas across Las Vegas Boulevard from the Silver Slipper — on the site of the old Desert Inn, which he knocked down. And Wynn never took 10 years to build anything in his life — other than one hell of a nightmarish case against himself.

Allegedly.

Artificial Stupidity

We started out asking ChatGPT one simple question. Not only did it provide three wrong answers to that question, four separate times, it padded its wrong answers with seven more utterly false statements about Las Vegas.

And that’s with instantaneous full access to everything that’s ever been posted to the internet.

Finally, we looked up our June article and gave AI all of the correct info. It spewed most of it back to us dutifully…

To be fair to AI, which is something it would never be to us, we don’t think this is all necessarily its fault.

And that’s actually great news for the future of a weekly internet series that busts myths about Las Vegas.

By the way, an hour later, we asked ChatGPT to put the history lesson we taught it into practice, just so we could physically witness the hand we personally had in helping AI eventually replace us.

We asked it, for a fifth time, when Steve Wynn purchased the Silver Slipper lot. Here’s how it replied…

Look for “Vegas Myths Busted” every Monday on Casino.org.?Click here to read previously busted Vegas myths. Got a suggestion for a Vegas myth that needs busting? Email [email protected].

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Media reports indicated FanDuel could pay as much as $2.56 billion for Snaitech, which represents a healthy premium to Playtech’s market capitalization of about $2.12 billion. Founded in 1990 and branded as Snai, Snaitech offers horse and sports wagering services in Italy and operates more than 49,000 gaming and lottery devices in that country.

The website, snai.it, offers a vast range of gaming and entertaining services including all online products: sport and horse racing betting, poker cash and poker tournament, skill games, casino and cash games, betting on virtual events, forecasts, bingo, lotteries and number games, virtual sports. Betting and casino apps are available also from website using a technology that adapts to all devices,” according to the company.

Snaitech also has bit exposure to Austria and Germany through its 2022 purchase of Happybet. At one point today, Playtech shares were up 22% on the news, marking the stock’s biggest intraday pop in nearly three years.

Playtech Deal Could Finally Come to Fruition

Currently, there’s no indication as to how advanced the talks are between Flutter and Playtech, but the would be seller said it is in exclusive negotiations with the prospective buyer.

In October 2021, Playtech agreed to a $2.8 billion deal with Aristocrat Technologies and two other suitors emerged for the gaming software company, but those two suitors ultimately pulled their bids and the deal with Aristocrat fell apart. In July 2022, Playtech scrapped plans to list Caliente Interactive’s Caliplay unit on a US exchange via a reverse merger with a blank-check entity.

For Playtech, the allure in selling Snaitech is that such a transaction would allow the seller to become a full business-to-business (B2B) player in the European gaming scene while reducing its exposure to volatile consumer spending trends.

Deal Would Boost Flutter’s Italy Footprint

For FanDuel parent Flutter, the potential acquisition of Snaitech makes sense because it would increase the buyer’s presence in Italy, which is the Eurozone’s third-largest economy behind Germany and France.

In 2022, Flutter paid $2.2 billion for Italian lottery giant Sisal. Prior to that acquisition, Flutter’s PokerStars and Betfair were operational in Italy with significant market share.

Italy is Europe’s second-largest regulated gaming market after only the UK. Adding to the allure of Snaitech for Flutter is the point that while penetration of online wagering in Italy has surged in the aftermath of the coronavirus pandemic, it remains far below the rates seen in comparable markets such as Australia and the UK. That implies there’s ample room for growth and Flutter’s potential purchase of Snaitech could be validated over the long-term.

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The company said those divestments are part of an effort to pat with select assets ahead of the $13 billion go-private transaction with venture capital firm Silver Lake announced in April. Los Angeles-based Endeavor reported second-quarter results earlier today.

During the quarter, we began to actively market the businesses comprising the Sports Data & Technology segment, OpenBet and IMG ARENA. As such, for financial reporting purposes, these businesses are considered Held for Sale and the Sports Data & Technology segment is presented as discontinued operations in the Q2 2024 consolidated interim financial statements. During this process, these businesses will continue operating as usual,” according to a statement.

The company did not say if it’s held talks with any potential suitors as of yet nor did it mention potential selling prices for IMG Arena and OpenBet.

Endeavor Quick to Sell OpenBet Following Purchase

Endeavor is quickly looking to sell OpenBet after announcing in September 20221 that it would pay $1.2 billion to the company then known as Scientific Games for the business.

OpenBet was folded into Endeavor’s Owned Sports Properties segment, which includes UFC, the Professional Bull Riders (PBR), and Euroleague.

Endeavor positioned the acquisition of OpenBet as an addition to the IMG Arena business, which provides data and other technology to sportsbook operators. It’s not clear if Endeavor will break-even on OpenBet, turn a profit or take a loss, but it could be an opportune time to sell the unit because a technology arms race is forming in the sports betting industry.

OpenBet Has Had Plenty of Owners

OpenBet was founded in 1996 as Orbis Technology and over its nearly three decades in business, it’s already been through a slew of owners. In 2000, NDS Group, a unit of News Corp., acquired Orbis.

A decade later, Orbis was renamed OpenBet and in 2011, NDS sold the sports betting technology business in a management-led buyout that was supported by private equity firm Virtuvian Partners. Five years later, NYX Gaming Group bought OpenBet. In 2016, Scientific Games purchased NYX, folding OpenBet into its SG Digital arm.

According to its website, OpenBet clients include BetMGM, DraftKings, FanDuel, Paddy Power, PointsBet, Super Group, and William Hill, among others.

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The inspections, during which cybersecurity experts visually inspect the room for computer hacking equipment, are believed to be Resorts World’s response to two large, back-to-back cyberconventions in town. Black Hat USA started at Mandalay Bay on Saturday and runs until Thursday, while Def Con 32 will be held at the Las Vegas Convention Center from Thursday through Sunday.

Both conventions attract cybersecurity experts, government officials, corporate executives, and, unavoidably, hackers to check out the latest breakthroughs in cybersecurity and attend discussions of industry issues.

Resorts World’s inspections began Monday and will conclude Sunday. In a statement issued to the Las Vegas Review-Journal newspaper, the casino resort said they have been performed with the “highest respect for our guests’ privacy and convenience, following strict protocols to ensure minimal disruption to their stay.”

Once Hacked, Twice Shy

Though Resorts World wasn’t targeted, in September 2023, the two largest casino operators on the Las Vegas Strip, MGM and Caesars Entertainment, were both attacked by members of the hacking collective Scattered Spider.

Though authorities have tied neither cyberattack to cyberconventions in Las Vegas, Resorts World isn’t willing to take any chances.

“These inspections are a standard practice in many of Las Vegas’ premiere hotels, particularly during periods of increased foreseeable risk, where vigilance is critical,” its statement read. “These inspections are a precautionary measure intended to enhance our on-site security presence (both physical security and cybersecurity), maintain the integrity of our property’s services, and safeguard our guests, business partners, and staff against potential cyberattack threats.”

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The group, dubbed “Vigorish Viper” by cybersecurity investigator Infoblox, appears to be the missing link between China-facing sports betting brands — many of which have sponsored major European soccer teams — and Chinese organized crime tied to human trafficking and money laundering.

Vigorish Viper provides these brands with a full technology suite, including software, DNS configurations, website hosting, payment mechanisms, and mobile apps, according to Infoblox. It also appears to own many seemingly unconnected brands, such as Yabo Sports, Kaiyun Sports, KM Gaming, BOB Sports, KOK Sports, Ponymuah, and SKG.

Yabo Human Trafficking Links

Infoblox claims to be “highly confident” that Vigorish Viper’s technology suite was developed by the Yabo Group. A 2023 study by the Asian Racing Foundation (ARF) concluded that Yabo controls “possibly the biggest illegal gambling operation targeting Greater China.”

Yet the ARF study cites reports that have directly tied Yabo to forced labor camps on the Cambodia-Laos border, where trafficked victims must help run gambling operations and scam call centers.

Yabo Regroups

Yabo was dissolved in 2022 after a crackdown by Chinese authorities coincided with regulatory sanctions in the UK.

But Infoblox has discovered that the remnants of Yabo were essentially laundered into a group of new brands, including Kaiyun Sports, KM Gaming, Ponymuah, and SKG.

We found that the brands at the center of these labor camps are connected in multiple ways, including through their use of Vigorish Viper’s technology suite,” Infoblox investigators wrote. “While these brands appear distinct, they operate more like the branches of a franchise.

“Although our research indicates that Vigorish Viper is likely synonymous with Yabo, the real identities behind Yabo remain unknown. As such, Yabo itself is merely one face for an unknown organized crime syndicate,” Infoblox added.

For deals with high-profile soccer teams, sites like Yabo have hired male models to pose as their CEOs during publicity shoots. Their real owners are hidden behind a opaque tangle of shell companies and false identities,

White-Label Loophole

China-facing sportsbooks have legally been able to strike deals with European sports teams typically because they are nominally licensed in European jurisdictions through partnerships with so-called “white label” operators.

The reality is that the China-facing sportsbook has no interest in engaging with the European market, but wants to use European soccer as a springboard to the Chinese market, where promoting gambling is illegal.

Still Going Strong

In 2023, following media reports criticizing these partnerships, the UK Gambling Commission sanctioned white-label provider TGP Europe for “anti-money laundering and social responsibility failures.”

It also suspended 14 China-facing sportsbooks, 11 of which were associated with Vigorish Viper, including Yabo, and seized their UK domains.

However, TGP Europe remains a white-label provider for five Vigorish Viper brands, while at least eight top English soccer clubs currently have sponsorship deals with brands linked to the network, according to the Infoblox investigation.

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The Republican-controlled committee passed the bill last month. Not only does it propose to trim the FTC’s budget by 27%, it contains an amendment that would halt the FTC’s efforts to force MGM to comply with a Civil Investigative Demand (CID) issued in January. The following month, MGM attempted to quash that request, noting that some of the information demanded by the FTC could jeopardize the gaming company’s efforts to assist law enforcement agencies in pursuing criminal charges against Scattered Spider — the hacking group that carried out the cyber attack against MGM.

The core mission of this bill is to protect the integrity of America’s financial and judicial systems,” said Rep. Dave Joyce (R-OH) in a statement. “In order to fulfill that mission, this bill makes cuts to prevent agency overreach by prohibiting funds for dozens of regulating actions such as blocking the FCC from regulating broadband rates, the FTC from controlling how every day Americans purchase a car, and the SEC from collecting and surveilling transactions of everyone who invests in the stock market.”

Joyce is the chairman of the Subcommittee on Financial Services and General Government.?It’s not clear when the full House will consider the legislation.

MGM Capitalized on the System

Earlier this year, MGM fired back at the FTC, suing the commission on the grounds that as a gaming company, the Red Flag and Safeguards statutes the agency is attempting to enforce aren’t pertinent. Those guidelines are typically used in enforcements against financial services firms.

Included in the suit was a request to the court by the gaming company that FTC Chairwoman Lina Khan recuse herself from the case because she and several staffers were guests of the MGM Grand on the Las Vegas Strip during the data breach.

MGM has donated $104,801 to individual candidates and PACs this cycle and spent $230,000 on lobbying this years, according to Open Secrets. The largest individual recipient of the company’s political donations this cycle is Rep. Susie Lee (D-NV) who represents suburban Las Vegas.

Congressional Attacks on FTC Not Uncommon

The aforementioned spending bill contains several other provisions aimed at reining in FTC enforcement efforts and potential overreach. It’s also not unheard of for Congress to use the power of the purse string to halt various FTC enforcement efforts.

In 1980, Congress passed a law that gave it veto power over some FTC actions and allowed lawmakers to cap the commission’s use of administrative subpoenas. Whether or not that helps MGM in its case against the FTC isn’t clear, but some legal experts believe the company’s status as a multiple offender on the cybersecurity front is hard to ignore.

The FTC could leverage MGM’s reputation for slack cyber defenses prior to the hack against it. Last September, Boston-based BitSight, a cybersecurity ratings and analytics company, graded MGM’s patching cadence with an “F.” Patching cadence is the speed at which an organization addresses known cyberissues and vulnerabilities.

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In a note to clients previewing upcoming reports from gaming device manufacturers, Stifel analyst Jeffrey Stantial said Light & Wonder (NASDAQ: LNW) and PlayAGS (NYSE: AGS) are likely to beat estimates for the June quarter while International Game Technology (NYSE: IGT) should meet Wall Street forecasts. Everi (NYSE: EVRI) could miss estimates. IGT is merging its global gaming and PlayDigital units with Everi in a $6.2 billion deal announced in February. That should clear up the IGT investment thesis, putting more focus on the company’s highly profitable lottery segment.

For IGT, our proprietary lottery sales tracker shows still muted ‘core’ sales, though content phasing & a potential Mega Millions price adjustment should bolster growth beginning in 2H24,” wrote Stantial.

The analyst rates IGT a “buy” though he noted second-quarter sales of lottery tickets and scratchers likely trended lower.

“We believe soft core lottery trends mostly reflects well-discussed jackpot fatigue, though ongoing softness in low income consumer spend and implications from persistent inflation & higher gas prices bear watching,” said the analyst. “Based on our analysis of weekly Powerball & Mega Millions sales data, we estimate sales of multi-state jackpot games were inline year-over-year.”

Attractive Valuations Available Among Gaming Tech Stocks

Shares of slot machine manufacturers are mixed this year, but there are some standouts. For example, Light & Wonder is up 28.71% since the start of 2024.

“Forward 1-year enterprise value/earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiples are -37% to -17% below long-term averages ex-LNNW, on Street estimates that seemingly embed stable casino gross gaming revenue (GGR) and North American slot replacement cycle,” according to the analyst.

Stantial observed that it’s possible slot supplier stocks could benefit from lower interest rates, but added stock selection in the group will be paramount going forward.

Gaming Tech M&A Outlook Subdued

There have been signs of elevated consolidation activity in the gaming technology industry this year, namely in the form of the aforementioned IGT/Everi merger and Brightstar Capital Partners $1.1 billion offer for PlayAGS, which has been opposed by some investors. Last week, Evolution AB announced it’s buying Las Vegas-based Galaxy Gaming for $85 million.

In aggregate, those deals highlight appetite among buyers for gaming tech firms, but a more competitive headwinds for smaller suppliers and depressed valuations on small-cap consumer cyclical stocks could keep a lid on large-scale mergers and acquisitions activity over the near-term.

“While we don’t envision further large-scale M&A for our direct supplier coverage, we believe elevated M&A activity should help provide a floor for valuations while changes in ownership/execution on integration will need to be closely monitored for market share opportunity/risk,” concluded Stantial.

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The cybersecurity infrastructure meltdown impacted casino resort operations not only in the United States but also in major gaming hubs in Asia.

Macau officials say the city’s Cybersecurity Incident Alert and Response Center (CARIC) continues to monitor the situation.

Based on the information collected so far, the impact of this global cyber security incident on Macau is relatively limited and controlled,” a police statement read.

Unlike in the US where many casino resorts, including on the Las Vegas Strip, reported issues with guest check-ins and some gaming operations being disabled because of their computer systems going offline, the Microsoft calamity in Macau was confined to back-of-house operations. As a result, Macau casino guests didn’t see noticeable impacts from the IT glitch.

Worldwide Impact

The three casino companies in Macau reported to local law enforcement that the Microsoft incident resulted in their internal computer systems malfunctioning. However, no casino operations were affected.

The three casino companies operate numerous resorts and satellite gaming venues across the enclave. They weren’t the only high-profile casino companies to be impacted by the Microsoft outage.

Solaire is owned and operated by Bloomberry Resorts. In May, the Philippines-based company opened Solaire North, a $1 billion integrated resort casino about an hour’s drive north of Entertainment City.

There were no media reports that the Microsoft situation impacted Solaire North.

Cybersecurity Update Blamed?

On July 18, cybersecurity firm CrowdStrike released a software update that caused the global Microsoft outage. The update impacted many millions of computers and networks running on the Microsoft Windows operating system.

CrowdStrike handles the security of many Windows PCs and business network services around the world. CrowdStrike said it quickly “identified” and “isolated” the glitch, and deployed a fix.

Most affected computers have since been restored and business operations have returned to normal, though ongoing issues with Delta Airlines persist. Along with interrupting casino and resort operations, the Microsoft outage took websites offline, television stations off the air, and grounded thousands of flights.

Microsoft said of the matter:

“This incident demonstrates the interconnected nature of our broad ecosystem — global cloud providers, software platforms, security vendors and other software vendors, and customers. It’s also a reminder of how important it is for all of us across the tech ecosystem to prioritize operating with safe deployment and disaster recovery using the mechanisms that exist.”

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Trend Genius is designed to deliver advertisements pertinent to real time conversations taking place on X. In a hypothetical example, an active, robust conversation with multiple participants on “sports betting X” could be served ads from gaming companies. Financial terms of the agreement were not disclosed.

The new technology, built by Genius Sports and powered by X’s Ads and Trend APIs, allows advertisers to align with the real-time conversations happening on the X platform across categories. When a specified topic organically reaches a set conversation velocity, pre-programmed creative will run to reach audiences when they’re most engaged,” according to a statement.

As the chatter shifts or wanes, the ads served by Trend Genius would be paused until momentum is regained. In simple terms, Trend Genius harnesses artificial intelligence (AI) capabilities to show ads that are most relevant to specific X conversations and threads.

X Agreement Marks New Frontier for Genius Sports

The accord with X is unique for Genius and could showcase the latter’s versatility while opening new markets beyond the world of sports wagering.

Genius technology could help X advertisers more efficiently target and maximize those expenditures, which could be long-term selling points in the highly competitive internet ad space.

“As the exclusive data distributor for the NFL, NCAA, and the Premier League, Genius Sports relied on its heritage of building data-driven products to engineer real-time algorithms needed to start and stop ad spend across the X platform,” said Josh Linforth of Genius Sports in the statement.

Advertising in Flux at X

Ad revenue is a vital part of the X business model and since Elon Musk acquired the social media giant in October 2022, some advertisers turned petty and reduced spending due to Musk’s alleged political leanings.

“After the billionaire bought the platform, advertisers and marketers have closely observed every change regarding its features and policies. Due to many contradictory developments at Twitter, industry professionals have become increasingly more cautious with their investments,” according to Statista.

While X currently commands a small percentage of overall internet ad revenue, it is one of the most visited sites in the world. That could signal opportunity for the Trend Genius partnership to potentially bear fruit over the long-term.

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More than 1,000 flights have been delayed by the issue, which is believed to be linked to an error on a software update from cybersecurity firm Crowdstrike. Public transport systems across the world have also been affected.

Casinos, Sportsbooks Impact

Early reports suggest land-based casinos and online sportsbooks have also been impacted by the outage. On Thursday night, visitors to the Green Valley Ranch casino in Hendeson, Nev. reported that every single slot machine was down, and staff members were having to cash out players manually, leading to long delays.

Las Vegas Locally reported on X that “casino computer systems are crashing all over town.” One X user posted images from the South Point Casino showing the venue’s TV monitors had been affected by the “blue screen of death.”

“We’re facing a total blackout,” a?TAB?insider told The Syndey Morning Herald. “This has impacted both our online and retail operations, putting us in the same predicament as many other companies.”

No Easy Fix

The outage is not believed to be linked to foul play. The issue is reportedly related to Texas-based CrowdStrike’s ‘Falcon sensor,’ which monitors the security of large networks of PCs.

Security experts say it’s not an easy fix because it requires manual intervention on every affected computer, which will likely cause disruption for days to come.

Crowdstrike shares plunged by 21% in early pre-market trade. Shares in Microsoft were also down, as were travel and leisure stocks, as investors anticipated ongoing disruption to flights at the height of the summer vacation season.

This is a developing story.

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The deal signals there’s still a strong appetite for iGaming assets and technology despite the fact that no new states have approved that form of wagering this year. Six states allow it. Relativity Acquisition is a Las Vegas-based special purpose acquisition company (SPAC) that was originally formed with the intention of affecting a deal in the cannabis space, but the blank-check firm told investors it would be flexible about exactly where it would find an acquisition partner. The combination with Mazaii could prove prescient.

The company supplies its advanced gaming content and technology to prominent brands within the sector, enhancing their platforms and player experiences. Through strategic acquisitions, Mazaii Corp expands its market reach and strengthens its product offerings across key regions, including Europe, North America, Latin America, and Asia,” according to a statement.

The transaction is expected to be completed in the second half of this year.

Mazaii Could Find Enthusiastic Investor Audience

Mazaii could be at the right place at the right time in terms of broadening its investor base and accessing public markets because there’s been no shortage of coverage pertaining to the long-term internet casino opportunity set.

Buttoning down superior technology is essential to operators’ efforts to fully capitalize on the internet casino opportunity set. Analysts and operators are enthusiastic about the outlook for internet casinos because there’s a long runway for state-level legalization. It’s also a higher margin business than sports betting, and bettors are often stickier and spend more money than they do on sports wagering.

Montreal-based Mazzaii and Relativity Acquisition expect to provide more details on the combination in the months ahead.

SPAC Resurgence? Maybe. Maybe Not.

Several years ago, the gaming industry was fertile territory for SPAC deals, but that well dried up as the broader market soured on companies that came public via mergers with blank-check firms. Most of the stocks, gaming and otherwise, performed poorly upon becoming standalone publicly traded firms.

Following a slew of gaming SPAC transactions in 2021, many of the blank-check firms that were looking for merger partners in the industry threw in the towel as interest rates surged and stocks fell into a bear market in 2022. SPACs generally have two years to execute business combinations, including mergers, and if that doesn’t happen, the firms can seek extensions or liquidate and return capital to investors.

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Star Entertainment owns and operates The Star Gold Coast, The Star Sydney, and Treasury Brisbane. The latter will close in the coming months when the all-new Star Brisbane opens on the banks of the Brisbane River.

To maintain our commitment to safer gambling procedures and providing the highest standards to our members and guests, Electronic Gaming Machines are currently offline,” a company notice on the casinos’ websites read. “We apologize for any inconvenience and will advise once normal operations recommence.”

Star said live dealer table games remain operational, and restaurants and bars are operating normally. Live entertainment also remains as scheduled. Player activity statements are currently unavailable.

The Star Sydney generates the most annual gaming revenue of the three properties. The casino has 1,490 slot machine and electronic table game positions and 140 live dealer table games.

Cyberattack Dismissed

Star told local media that concerns that a cyberattack was the reason for the operational disruption were without merit.

The Star’s systems have been disrupted due to system performance issues identified in post-upgrade testing, which resulted in the decision to switch off all Electronic Gaming Machines and Electronic Table Games in each of The Star’s three properties,” the company explained.

Star slots, or pokies as they’re commonly called Down Under, were turned off around 10:00 pm local time on Saturday, July 13. Star officials said the decision to disable electronic gaming was to “ensure compliance with relevant regulations and to maintain the company’s commitment to safer gambling procedures.”

Star believes it should be found suitable after severing ties with its former CEO and Chair David Foster who was accused of “going to war” with the NSW Independent Casino Commission and Nicholas Weeks, who was appointed to oversee The Star Sydney’s operations on the commission’s behalf amid the inquiry. ?

Stock Decline

Amid its state inquiries, as Queensland in 2022 found Star unsuitable to hold its two casino licenses but allowed the company to retain the gaming permits with disciplinary action and assurances of regulatory compliance upgrades, shares of The Star Entertainment Group have plummeted. Traded on the Australian Securities Exchange, Star shares have lost over 85% of their value during the past five years.

The Australian Government’s Institute of Family Studies says nearly four in 10 adults gamble weekly, and nearly half of that demographic face some risk of gambling harm. ?

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The full monetization of its Genius stake arrived after Apax trimmed that position by 10% last September, and further in the first quarter of this year. In April, Gabriele Cipparrone, a partner at Apax, stepped down from the Genius board of directors.

Apax has been a tremendous partner to Genius Sports, and we are grateful for their valuable insight and expertise over the last six years,” said Genius co-founder and CEO Mark Locke in a statement. “Today marks the conclusion of a very successful partnership, and we look forward to welcoming this next chapter with the ongoing support of our high-quality institutional shareholders.”

Shares of Genius are off 1.83% in early trading on the news.

Near-Term Selling Pressure, Long-Term Potential for Genius

Apax is liquidating a position comprised of about 20 million shares of Genius, which is more than 10 times the stock’s average daily volume 1.61 million shares. At this writing, turnover in the shares is close to 3.6 million, indicating some selling pressure is suppressing Genius shares today.

London-based Apax became the majority owner of Genius in July 2018, when it purchased the betting data firm from founders, management, and funds advised by Three Hills Capital Partners. Apax’s stake in Genius was reduced to 28% in April 2021, when the betting tech company went public via a merger with special purpose acquisition company (SPAC) dMY Technology Group, Inc. II —? a transaction valuing the data outfit at $1.5 billion. The company’s current market capitalization is $1.15 billion.

Apax has raised $77 billion in financing and primarily invests in companies in the consumer internet, healthcare, services, and technology spaces. Genius was the private equity firm’s lone stake in a company with direct wagering industry exposure.

Apax Sale Not an Indictment of Genius

Private equity firms typically aren’t permanent investors in the companies in which they hold stakes and, as noted above, Apax had been reducing its Genius stake, indicating full monetization was likely.

At six years, Apax’s relationship with Genius was inline with the average private equity holding period seen over the past decade. Before that, the typical private equity investment spanned three to five years, according to Private Equity List.

With Apax out of the picture, the largest institutional investor in Genius is Caledonia Investments. The NFL is the next-largest shareholder. Other holders of Genius equity include Cathy Wood’s ARK Investment Management and BlackRock, among others.

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On Friday, July 7, William Anthony Parker, 34, was found guilty of aggravated online casino fraud by the District Court of Central Finland, according to Yle, the Finnish public broadcaster. Parker was able to infiltrate the casinos’ systems by exploiting a security vulnerability to “obtain a financial benefit for himself.”

The report didn’t say exactly how he went about this. However, a Yle article from May that focused on the investigation suggested that he had distorted the results of games in his favor. He did this while using legal software that is intended for use as a cybersecurity tool.

Lone Wolf

The crimes took place between April and May 2023 in Vantaa, a city in southern Finland, although Parker is a resident of the UK. Prosecutors believe he acted alone. He was arrested in central Finland in January of this year and initially charged with gross data breach and financial fraud.

Assets found in his possession at the time of his arrest were frozen by court order during the preliminary investigation. These included more than €9K (US$9.7K) in cash as well as 100 gold coins, according to prosecutors.

Prosecutors had sought a prison sentence of more than three years for Parker. The court’s verdict in the case isn’t final, meaning that the ruling is still subject to appeal, Yle reported.

Major Breaches

The case highlights how cybercriminals are using increasingly sophisticated methods to target both online and land-based casinos. In September 2023, hackers stole around $41 million worth of cryptocurrency from crypto gambling site Stake.com.

It was a “sophisticated breach” that exploited a service that the casino uses to authorize crypto transactions, according to Stake.com founder Edward Craven.

The FBI has attributed the attack to North Korea and its infamous state-sponsored cybercrime unit, the Lazarus Group.?

In the same month as the Lazarus attack, land-based casino giants Caesars and MGM Resorts were hit by ransomware attacks organized by a hacking group called “Scattered Spider.”

MGM refused to pay out and saw disruption to its operations that lasted for days, causing an estimated $100 million in damage. Caesars paid a ransom of around $15 million to have normal services restored.

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The Australian company is a software provider whose products allow sportsbook operators to efficiently update odds and pricing while maintaining existing data relationships. Financial terms of the transaction were not disclosed.

The ZeroFlucs acquisition follows a successful integration of ZeroFlucs’ technology into the Caesars Sportsbook platform through a commercial arrangement that enabled the recent launch of new products, such as in-play same-game parlays (SGPs) and a vastly improved menu of ‘SGP-eligible’ markets for Major League Baseball,” according to a statement.

Caesars did not say when the transaction will close, but the buyer noted Steve Gray and Carly Christensen will remain at the helm of ZeroFlucs with Christensen joining Caesars Digital as senior vice president of price technology.

Sports Betting Tech Race Heating Up

The Caesars deal for ZeroFlucs is the latest sign of an intensifying race for sports wagering technology.

The transaction was announced less than two weeks after MGM Resorts International (NYSE: MGM) said its LeoVegas unit would purchase the US iGaming and sportsbook operations of Tipico Group for an undisclosed sum — a move market observers believe is largely rooted in technology.

Regarding ZeroFlucs, “the acquisition cements a relationship between the companies that has already improved the customer experience and will continue to unlock exciting new product features and benefits for Caesars Sportsbook bettor,” added Caesars in the press release.

How ZeroFlucs Can Help Caesars

As technology further penetrates the world of sports wagering, speed is essential in boosting the menu of live wagers a sportsbook operator can offer bettors.

In nearly all major team sports, in-game odds can shift on a play-by-play basis — a touchdown, a home run, etc. Sluggish technology can force operators to only refresh odds during breaks in the action, but wise bettors know they might not be getting the best odds.

Specific to ZeroFlucs and Caesars, the acquired company’s competencies in baseball SGPs could be enticing because due to the slow-moving nature of that sport, it’s conducive to SGPs and live wagering. That fact isn’t lost on gaming companies and with better technology, it’s possible operators will lure more bets on baseball — a sport that trails football and basketball by handle by wide margins.

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What wasn’t known to industry observers at that time was the extent to which draconian regulations would relegate Nevada to being a regional player while hindering the state’s ability to generate more tax revenue from the sports betting boom. But that’s exactly what’s happening. Nevada’s sports betting industry is being hindered by the state’s in-person registration requirement.

That means residents must physically enter a casino to fill out paperwork to open a mobile sports betting account, and that process must be repeated for each account they want. In a hypothetical scenario, a bettor wanting access to BetMGM, Caesars Sportsbook, and Circa Sports would need to go to three casinos to sign up for those apps.

On its face, this seems like a minor annoyance for potential consumers, but that minor annoyance actually has a tangible impact on the local market,” wrote Michael Schaus, founder of Schaus Creative LLC, in an op-ed for The Nevada Independent.

He’s right. April was the first time since online sports betting went live in Arizona that sportsbook operators in that state booked more bets than their counterparts in Nevada, and the gap was wide at $87 million. Last year, Nevada sportsbooks booked about $1.7 billion more in bets than equivalent operations in Arizona, but Arizona books took in nearly $77 million more in revenue, highlighting the advantages of mobile registration.

Nevada Regs Create Disadvantages

Nevada’s in-person registration requirement for mobile sports betting accounts has been decried by the industry and it has noticeable drawbacks.

Until Nevada scraps the in-person registration requirement, it’s likely the gap between it and Arizona will grow, with the latter potentially reaching annual revenue advantages of $100 million to $200 million over the Silver State, according to some experts. That’s to say, Arizona is operating in the 21^st century and Nevada regulations are costing the state money.

“And while that might be frustrating for consumers, and a bit puzzling for tourists, it also means Nevada operators and state coffers are missing out on their share of the online gaming gold rush taking place in markets all around us,” added Schaus.

Nevada In-Person Regs Keeping Big Players Out

Nevada’s in-person registration requirement has also kept the two largest online sportsbook operators, FanDuel and DraftKings, out of the state. Speculation as to when that could change is long-running, and those companies have options, including potentially buying land-based casinos.

Nevada retains some geographic advantages because the other states that border it — California, Idaho, and Utah — don’t allow sports betting, while Oregon is home to a DraftKings monopoly and is close to just a small percentage of Nevada’s total population.

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Advertisers that hold gaming licenses in one of approximately 40 countries — of which the US is one — are eligible to run DFS and internet lottery (iLottery) spots on Google. Other nations on that list include Brazil, Canada, France, Germany, South Korea, Sweden, and the UK.

On July 15, 2024, the Google Ads Gambling and games policy United States country-specifics will be updated. We will begin to accept and run ads for lottery-couriers in Arizona, Arkansas, Colorado, District of Columbia, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, West Virginia, and Wyoming,” according to Google.

Would-be advertisers also must substantiate to Google that they are licensed to provide gaming services in at least one of the states mentioned above. Of that group, 17 states have competitive online sports wagering markets.

“If advertisers are targeting their ads in a state that does not require a license, the advertisers must be licensed in at least one other state that does require a license to operate Lottery Courier services,” added Google.

Google Making Gaming Ads More Efficient

Google’s approval of DFS and lottery courier ads in select states brings some level of efficiency to the company’s often cumbersome requirements surrounding wagering-related ads while still retaining relevant guidelines and regulations.

That was one example of the internet company’s pragmatic approach to allowing wagering-related fare in its searches and app store. The company was famously slow in approving online sports betting and iGaming ads with wide reaches, too.

For gaming companies to run ads with Google, the operators must meet 10 requirements. Those include various state and geographic requirements, not targeting ads to minors, keeping related apps out of Google’s Designed for Families program, and displaying information about responsible gambling.

Google Lottery Courier Standards Matter

Google’s state-level regulations pertaining to lottery courier services such Lotto.com, The Lotter, and JackPocket are relevant because just New York and New Jersey license and regulate those companies.

Still, the breadth of states the internet search provider is allowing to see lottery courier spots could be viewed as a win for the still-nascent industry.

The post Google to Permit DFS, Internet Lottery Ads in Most US States appeared first on Casino.org.

While some tribal gaming leaders in California viewed the Supreme Court decision as a positive, they don’t view it as a playbook for bringing online sports betting to their state. That outlook runs counter to the thesis recently laid out by Deutsche Bank analyst Carlo Santarelli, who wrote that the Supreme Court ruling “provides a blueprint for California and other states with tribal gaming.”

Gaming tribes in California support the ruling, but that doesn’t mean they’re rushing into sports betting. James Siva, chairman of the California Nations Indian Gaming Association (CNIGA), speaking on the Indian Gaming Association’s (IGA) “New Normal” podcast on Thursday said the only certainty at this point is that tribes won’t be pushing for sports betting in California this year.

I know there’s a lot of excitement over this decision and it was the right decision, but people think we’re going to start having a push for new initiative immediately (in California),” Siva said. “Luckily, we have a CNIGA meeting coming up this week and everyone realizes we’ll continue on the path we’ve been taking the last few years, moving carefully and methodically. This opens up some new avenues for us, but our timeline remains the same even with this decision.”

The podcast is hosted by IGA Chairman Victor Rocha who is a member of the Pechanga Band of Luise?o Indians, which runs the Pechanga Casino Resort in Temecula, Calif.

Commercial Ops Could Be in for Rude California Awakening

After backing an ill-fated 2022 ballot proposal to bring online sports betting to California without consulting tribes, commercial sportsbook operators are licking their wounds in the state and things may not get better from here.

Likewise, Scott Crowell, a tribal-gaming attorney with the Crowell Law Office Tribal Advocacy Group, said on the podcast that the Supreme Court’s decision to not hear the West Flagler appeal signals that the exploitative model commercial gaming companies have used in some tribal-heavy states such as Arizona won’t fly in California.

If they think they can continue with the unconscionable model they’ve been pursuing for so long in other jurisdictions, I hope this decision is a wake-up call. That’s not going to happen,” he said.

Rocha added that under a hypothetical scenario in California, tribes would gain exclusivity over iGaming and commercial companies could potentially work with tribes on sports betting while being subject to a graduated tax rate that could run as high as 45%. That would be the second-highest sports wagering levy in the country behind only New York and several small states.

No Clear Timeline for California Sports Betting

A takeaway from the podcast is that California tribal casino leaders want the state’s voters to have a say on the matter of sports betting, but exactly when that happens hasn’t been decided. The only clarity on timing is that it won’t be this year, according to Siva.

“Our careful approach, and protecting the industry we built up from nothing over the last three decades, mean more to us than adding another percentage to the bottom line. That’s always been and will continue to be our approach,” added Siva.

The post SCOTUS Ruling on Florida Sports Betting Not Instructive in California appeared first on Casino.org.

Financial terms of the transaction weren’t revealed. The Las Vegas-based casino giant said its LeoVegas Group unit is the entity acquiring the aforementioned Tipico assets. MGM acquired LeoVegas in 2022 for more than $600 million.

This acquisition is the second major investment by LeoVegas, following the acquisition of game developer Push Gaming in 2023. The acquisition will allow LeoVegas to operate a purpose-built proprietary sportsbook across all international markets and brands, with the exception of those exclusive to the BetMGM JV, with a focus on a clean, fast consumer experience with top-class product, pricing and functionality,” according to a statement issued by MGM.

Under the terms of the deal, Tipico will wind down its US operations and some members of the target’s domestic management, technology, and trading teams will join LeoVegas. The transaction is expected to close in the third quarter.

Tipico Acquisition Bolsters MGM Technology

Germany-based Tipico, which is owned by private equity firm CVC Capital, offers sports wagering in just four states — Colorado, Iowa, New Jersey, and Ohio.

The operator’s share in Iowa and New Jersey is small enough that in some years it’s been measured in hundreds of thousands of dollars. In Colorado and Ohio, Tipico found more success, but its revenue only exceeded $10 million in Ohio.

“The acquisition of Tipico’s award-winning U.S. platform marks a significant milestone in the strategic development of MGM Resorts’ global digital gaming business, allowing us to operate a proprietary sports betting platform,” said Gary Fritz, president of MGM Resorts International Interactive, “This acquisition gives us control of our entire technology ecosystem, and we are delighted to bring Tipico’s U.S. team, with their track record of developing high-quality product and pricing capabilities, into our business.”

Long-Running Tipico Rumors Come to an End

Tipico has long been the subject of mergers and acquisitions speculation. In June 2022, reports surfaced that privately held Fanatics was considering a purchase of the gaming company. That deal didn’t materialize.

CVC has been the majority investor in Tipico for eight years. It’s rumored the private equity shop valued all of Tipico at $3.75 billion.

The post MGM Acquiring Tipico’s US Sportsbook Operations appeared first on Casino.org.

He’s allegedly tied into the Scattered Spider hacking group and also is suspected of taking part in the hacking of Caesars Entertainment, as well as other high-profile company hacks.

“Tyler” was arrested as he was boarding a plane from Palme, Spain that was heading to Italy, according to Murcia Today, a Spanish news outlet. He was also linked to the theft of $27M in Bitcoin from corporate accounts, according to news reports.

The hackers took part in a practice known as SIM-swapping, according to cybersecurity professionals. Hackers using this method are able to steal passwords used in the authentication of accounts. Security professionals also say the hackers used SMS phishing in the attacks.

Spanish Police and the US FBI were investigating the case. Spanish police made the arrest. The case was prepared by the Los Angeles office of the FBI, according to Cybernews.

Krebs also reported that Tyler’s residence was invaded last year by criminals hired by other hacking groups who threatened Tyler and his mother if they didn’t hand over keys to cryptocurrency wallets, the report said. He then fled from Scotland in fear for his safety.

This month’s arrest was a major step in cracking down on high-profile cybercriminals.

Law enforcement has made another major move with this arrest,” Rafe Pilling, director of threat intelligence at Secureworks Counter Threat Unit, was quoted by The Record, a tech publication. “There’s still a long way to go but the blows keep coming for the cyber criminal gangs right now.”

“These groups have long felt untouchable, obfuscated by the complexities of the internet and the anonymity it offers, but the tables are turning,” Pilling explained. “The interesting piece here is that the alleged perpetrators are operating from the UK and US where, unlike with Russian-speaking groups, law enforcement can reach them.”

MGM, Caesars

Last September, MGM Resorts saw a roughly week-long outage of its internal cybersecurity and data systems following a hack carried out by Scattered Spider. MGM didn’t pay money to the hackers, but it faced a $100M hit to its third-quarter earnings and $10M in one-time expenses.

At the time of the MGM attack, Scattered Spider also successfully extorted tens of millions of dollars from Caesars Entertainment, according to Bloomberg News.

Other Hacks

Beyond the casino companies, Scattered Spider has been linked to the hacking of Twilio, LastPass, DoorDash, Mailchimp, and some 130 other organizations over the last couple of years, Krebs reported.

In January, Noah Urban, 19, who authorities claim is also linked to high-profile hacks by Scattered Spider was arrested in Florida. He’s also known by the alias of “King Bob.”

Urban was charged with one count of conspiracy to commit wire fraud, as well as eight counts of wire fraud and five counts of aggravated identity theft.

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The debut of the Full Pull Picks app provides bettors access to a form of motorsports that coincides with the start of the Budweiser Dairyland Super Nationals on Thursday, one of the sport’s marquee events. That event runs through Saturday.

Full Pull Picks is built on a unique peer-to-peer, player adjusted payouts system, where all entries are placed together in a pool, and payouts are based on the collective entries of the participants, adding an extra layer of excitement to the events, and ensuring a fair and transparent gaming experience. As a special offer this weekend, Full Pull will provide up to $20 for all first-time deposit,” according to a statement issued by the Kentucky-based gaming company.

Some naysayers might be inclined to criticize the audience for tractor-pull betting and the competition’s highly specific regional appeal. NASCAR once endured such criticisms, but today the sport is popular on a national basis and increasingly so among bettors.

Full Pull Employing Interesting Approach with Tractor-Pull Wagering App

As noted above, Full Pull is using a peer-to-peer system that differs from traditional sports betting, which is largely rooted in sides and totals.

That’s relevant because of the states in which the app is available, seven do not permit any form of sports wagering while just five allow online sports betting.

“Full Pull Picks is available for motorsport fans in Alaska, California, Georgia, Illinois, Kentucky, Minnesota, Nebraska, New Mexico, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Texas, Utah, and Wisconsin,” said the company in the press release.

Good Timing for Tractor-Pull Wagering App to Debut

The launch of Full Pull’s tractor- and truck-pull wagering app coincides with the company’s debut of a streaming service that is expected to make the sport more accessible to a broader swath of fans. That’s a credible tactic because other sportsbook operators have dabbled in streaming to try and bring more bettors into the fold.

The 16-week, 32-session schedule will be packed with exhilarating action and will include expert pull-by-pull commentary, exclusive behind-the-scenes content, and live analysis for the first time from all major pulling associations,” according to the statement.

The object of a pulling competition is to see which tractor or truck can pull a heavy sled the furthest distance. The sled is stationary at the start, so there is no momentum to be harnessed by the pulling vehicle.

The post Full Pull Rolls Out Tractor-Pull Wagering App appeared first on Casino.org.

MGM Resorts International and London-based Playtech announced on Wednesday the deployment of a proprietary casino stream that will operate live from the two Las Vegas casinos. The live casino content will be branded MGM Live and will be available for licensing exclusively outside of the United States in regulated online gaming markets.

Bill Hornbuckle, CEO and president of MGM Resorts, said the product furthers the company’s “strategic vision to be the world’s premier gaming entertainment company.”

This alliance combines the strength of MGM Resorts’ global prestige with Playtech’s extensive international market knowledge and innovative games,” Mor Weizer, Playtech CEO, said in a statement to Casino.org. “As a leading technology provider in regulated markets, we are delighted that this partnership is pioneering a new live entertainment category and product offering for players in these regulated territories.”

MGM Live will commence with single and double-zero roulette and baccarat games. MGM and Playtech say the offering will expand in the coming months to include other entertainment like branded television shows and celebrity-hosted trivia.

Gaming Entertainment Production

MGM Live will stream endless hours of gambling action available for viewers to watch and bet on around the world 24/7. Audience members in the markets where the stream will reach will have the ability to gamble on the roulette and baccarat outcomes via the iGaming interface in their regulated market.

One such market Playtech operates is Italy where it owns and operates the leading iGaming and sportsbook firm Snaitech.

Live Remote Play Growth

In the US, online slots and table games are permitted in only seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Internationally, however, iGaming is regulated in numerous countries, including all of the United Kingdom, many European countries, and soon, Brazil.

During MGM’s 2023 earnings call in February, Hornbuckle said the company was focused on acquiring, developing, or partnering with a live dealer distribution company similar to market leader Evolution Gaming. Evolution runs live dealer games for legal online casino platforms in the US from its studios in states where iGaming is allowed.

Evolution has assisted New Jersey’s iGaming platforms in growing their business and customer databases. The company is planning a $75 million studio near the Atlantic City Boardwalk to accommodate the increased demand.

In December, Evolution announced a similar streaming product to MGM Live called Crazy Time. Already popular overseas, the live game show now streaming in the US incorporates components of The Price is Right and Wheel of Fortune with casino gambling.

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Initial details were sketchy as of Wednesday evening, but it’s known that Olympia Gaming operates the Casino Fandango in Carson City, and Legends Bay Casino in Sparks.

Casino Fandango has over 700 slot machines, 10 table games, a high-limit room, and a sportsbook. Legends Bay Casino has numerous slot and video poker machines, 10 table games, and a Circa Sports sportsbook.

Casino Postponements

Some events at Legends Bay, including Wednesday night’s line dancing at the Bandwagon were postponed were postponed as a result of the attack.

The company has called in a national cybersecurity consultant to investigate the attack and also took steps to secure online systems, according to Nevada TV station KOLO. In a statement, Olympia Gaming said it will try to resume normal operations quickly.

The company added it’s prioritizing the safety and well-being of guests and its employees.

The company didn’t reveal if confidential information belonging to customers was impacted by the hack and there’s been no word if consultants were able to identify whether a known hacking group is suspected in the attack.

Founded in 2005, Olympia Gaming is based in Las Vegas and is a division of Olympia Companies.

Prior Cyberattacks

Other gaming properties also have been targeted by cyber-attacks in recent months

Also, last September, MGM Resorts International saw a roughly week-long outage of its internal cybersecurity and data systems following a hack carried out by Scattered Spider.?MGM didn’t pay money to the hackers, but it faced a $100M hit to its third-quarter earnings and $10M in one-time expenses.

At the time of the MGM attack, Scattered Spider also successfully extorted tens of millions of dollars from Caesars Entertainment, according to Bloomberg News.

Rivers Casino Des Plaines in Illinois also experienced a cyberattack around August 12. Confidential data from some patrons and employees were stolen. The compromised information included names, contact information, such as phone numbers and email addresses, as well as driver’s license and government ID numbers. Financial information may also have been compromised.

The post Olympia Gaming Sees Cyberhack to Nevada Operations appeared first on Casino.org.

In a filing with the US District Court for the District of Nevada, the FTC argued it’s within its jurisdiction to investigate the September 2023 cyberbreach that cost the Bellagio operator $100 million in third-quarter earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR), and $10 million in one-off legal and other expenses.

In noting that MGM has refused to comply with the CID, the FTC claims it has the authority to demand data and records from the gaming company pertaining to the cyberattack, and asked the court to enforce the CID.

FTC Believes it Met Legal Bars for MGM Compliance

The FTC believes the CID request is firmly within its authority and that relevant legal precedent has been met in its requests for MGM’s cooperation.

The threshold for relevance is easily met. So long as the requested information ‘touches a matter under investigation,’ it will survive a relevancy challenge,” according to the commission’s legal filing. “The FTC’s determination that information is relevant to its investigation should be accepted unless the Respondent can prove that it is ‘obviously wrong.’”

The commission added that MGM has no legal basis for its noncompliance, asserting that the gaming company’s claims that it’s not subject to the “Red Flags Rule” and the “Safeguards Rule” lack merit. The FTC said it can investigate whether or not MGM qualifies as a financial institution or creditor under those rules.

“The CID includes four additional specifications bearing on the Red Flags Rule, which requires certain businesses to implement a written identity theft prevention program,” added the FTC in the court filing. “Tracking the provisions of that Rule, these four specifications seek information concerning whether MGM obtains consumer reports in connection with credit transactions, advances funds, and has developed and trained staff on identity theft prevention measures—and thus are plainly relevant to that aspect of the investigation.”

FTC/MGM Rift Intensifies

The legal rift between the FTC and MGM is now measured in months, and the US District Court filing arrived about two months after the Aria operator demanded that FTC Chairwoman Lina Khan recuse herself from the case because she and several FTC employees were guests of the MGM Grand on the Las Vegas Strip at the time of the cyberbreach.

“This argument falls short of the standard for showing undue burden. Mere distraction from ordinary duties and even substantial effort does not amount to the undue disruption or serious hindrance of normal business operations,” the commission claimed in the filing. “The burden imposed here on MGM is the kind expected from any form of compulsory process.”

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The newly announced buyback plan replaces a previously deployed $750 million repurchase effort that was scheduled to expire next February.

As of June 13, 2024, the Company has exhausted the full $750 million share repurchase authorization and purchased 11.2 million common shares, or 11.5% of shares outstanding at the inception of the program. The average purchase price of $66.72 per share represents a 28% discount to today’s closing price of $92.35,” according to a statement issued by the Las Vegas-based company.

Shares of Light & Wonder are higher by 12.47% year to date, and 39.5% over the past year. Whether or not those performances are the results of the $750 million buyback effort isn’t clear, but those repurchases likely helped the gaming device maker rank as one of the best-performing gaming equities over those periods.

Why Light & Wonder Buyback is Meaningful

Companies aren’t legally obligated to execute announced buyback schemes and they have the flexibility to repurchase some, but not all, of the announced dollar amount.

“Our prior program was an effective value creation tool and moving forward the new program will allow us to deliver further value to our shareholders while underscoring our commitment to driving profitable growth and upside beyond 2025,” said CFO Oliver Chow in the statement.

Companies execute share buybacks at various times on the open market, but in a hypothetical example, Light & Wonder could retire more than 10 million shares if it spent $1 billion on repurchases in a single day based on the stock’s Thursday closing price of $92.35.

Light & Wonder Financial Outlook Firm

In January, Light & Wonder reiterated a 2025 consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast of $1.4 billion, which CEO Matt Wilson reiterated in the press release detailing the buyback.

“Given the continued momentum in the business, and our March 31, 2024, net debt leverage ratio at the middle of our target range of 2.5 – 3.5x, we have significant optionality with regards to capital allocation,” added Chow.

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DraftKings and FanDuel, a unit of Flutter Entertainment (NYSE: FLUT), fit the definition of a duopoly. But as Truist Securities analyst Barry Jonas observed in a new report to clients, the gap between those operators and rivals is so wide, that there isn’t a second tier.

Note that we skipped ‘tier two’ — we don’t think any operator in the space qualifies for that standing with white space between DKNG/FanDuel and others,” wrote the analyst.

Jonas noted that as of April, FanDuel and DraftKings combined to control 73% of online sports betting handle in the US, leaving a scant 27% for rivals such as BetMGM, Caesars Sportsbook, ESPN Bet, and Fanatics to vie for.

DraftKings, FanDuel Tech Cements Bettor Loyalty

In the early days of the online sports wagering boom, it appeared as though BetMGM would be a credible threat to DraftKings and FanDuel, and Caesars Sportsbook could at least lead the next group of contenders.

With some success, those operators wooed iGaming clients and sports bettors by tying those offerings to rewards programs typically used at land-based casinos. Executives from both operators have said they’ve seen evidence of customers accruing points online and redeeming them on dining, entertainment, and rooms at brick-and-mortar gaming venues.

Those investments have paid off. In a survey released in April, Truist noted that 45% of those queried said they prefer DraftKings or FanDuel for iGaming, and that’s critical because 62% of those polled said they prefer to bet on sports and play real-money online casino games through the same operator.

Can Tier 2 Form Behind DraftKings, FanDuel?

In discussing the prospects of a viable second tier emerging behind DraftKings and FanDuel, Jonas highlighted Penn Entertainment’s (NASDAQ: PENN) ESPN Bet as a possibility. However, the analyst acknowledged growth for that operator has been sluggish. That could be a sign that the 2024 football season will be pivotal for ESPN Bet’s fortunes.

The analyst noted Caesars could firm its position in tier three while operators such as Bet365, Fanatics, and Rush Street Interactive (NYSE: RSI) could eventually climb the ranks.

The post After DraftKings, FanDuel, No Second Tier in Online Sports Betting appeared first on Casino.org.

While not a share repurchase program in the traditional sense, the move to purchase the shares owned by Microsoft has the positive impact of reducing Playstudios’ shares outstanding count. The company said that tally will decline by 8.6% by way of the Microsoft transaction.

Shares were purchased at a price of $2.11 per share and funded with available cash. Total consideration paid by PLAYSTUDIOS was $24.6 million. The repurchase reduces the number of shares of the Company’s outstanding common stock by approximately 8.6%,” according to a statement issued by Las Vegas-based Playstudios.

Shares of Playstudios are off 48.9% over the past 12 months and 15.5% on a year-to-date basis.

Playstudios Quietly Buys Back a Lot of Stock

Playstudios became a freestanding public company in June 2021 after a merger with Acies Acquisition, a blank-check firm started by former MGM Resorts International (NYSE: MGM) CEO Jim Murren.

“Since becoming a public company, PLAYSTUDIOS has demonstrated a commitment to enhancing shareholder value and maximizing our returns on capital. Purchasing the shares held by Microsoft is a further example of this as we were able to efficiently repurchase 8.6% of our outstanding common stock at a discount to current market prices,” said CEO Andrew Pascal in the statement.

Playstudios, which makes games such as myVegas Slots and myVegas Blackjack, has its own loyalty program, playAwards. Players can redeem those points for amenities and lodging at MGM venues, including glitzy venues such as Aria, Bellagio, and Mandalay Bay on the Las Vegas Strip, as well as some of the operator’s regional casinos.

Other Factors Supporting Playstudios

While Playstudios stock is mired in a lengthy slump and Wall Street pays little attention to the name, there are some bullish factors that could bolster the investment thesis.

David noted that cash position could increase quarterly, potentially paving the way for Playstudios to deliver a special dividend, though the company hasn’t confirmed such a move will occur.

The post Playstudios to Purchase $24.6M Worth of Shares Held by Microsoft appeared first on Casino.org.

Various media reports mentioning the still yet-to-be-confirmed agreement didn’t mention financial terms. In November 2020, Bally’s reached an agreement with Sinclair Broadcast Group to apply its name to 21 RSNs owned by the media entity. At that time it was reported that the regional casino operator agreed to pay $85 million over 10 years to put its branding on the RSNs. Sinclair also gained a 15% equity interest in the gaming company with an option to increase that stake assuming certain financial objectives were met.

Bally’s agreement with Diamond expires at the end of the current baseball season. With the media group dealing with bankruptcy and investors pressuring the gaming company to find avenues to conserve cash, the time could be appropriate for the two sides to part ways.

FanDuel Deal Likely Hinges on Diamond Bankruptcy Proceedings

With the deep financial resources of parent Flutter Entertainment (NYSE: FLUT) behind it, FanDuel could make for the ideal partner for scuffling Diamond Sports.

Sinclair acquired the 21 RSNs from Walt Disney for $10.6 billion in 2020 as part of the latter’s efforts to divest some assets to gain regulatory approval for its acquisition of 21^st Century Fox. At the time, the networks, which previously bore the Fox Sports name, were reportedly valued at least $16 billion.

That value has been significantly written down over the past several years as consumers shifted to streaming platforms and as creditors became concerned about Diamond’s financial health or lack thereof.

Diamond Sports Could Be Valuable to FanDuel

FanDuel, the largest US online sportsbook operator, already has a solid cable television footprint with its FanDuel TV network. Previously, that was a horse racing-specific network, but it was rebranded into a broader sports offering in 2022.

With Diamond Sports, there are sources of allure for FanDuel. The betting company would potentially be applying its name to RSNs that broadcast games of 38 Major League Baseball (MLB), NBA, and NHL teams.

Additionally, while FanDuel already enjoys some of the best brand recognition in the gaming business, an agreement with Diamond could position the gaming company for success in states that currently don’t allow sports betting. For example, Diamond’s RSNs cover teams in Atlanta, Dallas, and Los Angeles — three of the largest media markets in the country, each of which are located in states that currently don’t permit sports wagering.

The post FanDuel Close to Naming Rights Deal for 18 Diamond Sports Regional Networks appeared first on Casino.org.

In a recent report to clients, Jefferies analyst David Katz highlighted DraftKings (NASDAQ: DKNG), Light & Wonder (NASDAQ: LNW), and Red Rock Resorts (NASDAQ: RRR) as among the prime examples of gaming companies operating different segments that are boosting use of AI. The analyst noted that one of the clear usage cases for AI in gaming is assisting operators in identifying customers with problematic wagering patterns and cutting them off before things spiral out of control. That could help betting firms gain favor with regulators.

Specific to DraftKings, Katz observed that the online sportsbook giant has long been one of the most tech-centric firms in the industry, indicating a seamless transition to increased use of AI. AI can help DraftKings standout against rivals while potentially creating reduced labor costs.

Having the most advanced technology in the competitive OSB market could drive differentiation over time,” according to the analyst. “Furthermore, the harder and more important functional improvement is promotions, as it could enhance the ability of predicting [long-term values] of customers on a more granular level.”

Katz added that AI could replace some human functions among DraftKings’ 500-member trading force, which would create cost savings for the operator.

Light & Wonder, Red Rock Embracing AI, Too

Slot machines and other electronic gaming devices make for practical territory for AI deployment, so it might not be surprising that Light & Wonder is among the gaming adopters of the innovative technology.

“The company remains highly aware that design talent is the engine of their business, and therefore, though potentially some artistic avenues could be enhanced via the use of AI, the need for talented designers and the creative element they provide should remain a core component of the business,” said Katz in the report.

As for Red Rock, the casino operator is using AI to ensure its staffing levels are on par with demand at its Las Vegas gaming venues and to realize cost efficiencies. The operator is also using the technology as an avenue for fraud detection.

Speaking of AI and Fraud Detection…

Generative AI, the form of the technology currently most prevalent and accessible, has a plethora of applications when it comes to warding off fraud. That’s likely one reason why following large-scale cyber intrusions last year, Caesars Entertainment (NASDAQ: CZR) and MGM Resorts International (NYSE: MGM) are reportedly quietly increasing use of AI.

“Online gaming is also using AI to monitor potential fraudulent activity and maximize the promotional side of the business, by strategically timing and placing player offers and bonuses,” according to Seeking Alpha.

Though not a fraud usage case, AI is beneficial to sportsbook operators in terms of building predictive models and rapidly processing large amounts of data in real time.

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In an extensive Wednesday post on X (formerly Twitter), Radnor Capital — the pseudonym for a fund manager that wants to remain anonymous — said current sentiment on Sportradar stock could be similar to what was seen with DraftKings (NASDAQ: DKNG) a couple of years ago. That being a sound business model? attached to shares that don’t reflect fundamental strength.

My best guess (again, I’ve been wrong) is that sentiment around this stock mimics what Draft Kings was a couple years ago – people thought Draft Kings was a decent business but would never be a good stock because they would never get leverage on their massive customer acquisition costs. Draft Kings is up ~4x since that narrative was popular,” noted Radnor.

Radnor also owns shares of DraftKings. In terms of share price performance, it’s been a rough go for Sportradar since its September 2021 initial public offering (IPO). The stock’s final print for that month was $21.83. It closed at $10.60 yesterday.

Maybe Some Merit in DraftKings/Sportradar Comp

Sportradar and rival Genius Sports (NYSE: GENI) aren’t on the consumer-facing side of the sports wagering of industry. Rather, these companies pay sports league for data rights and sell that data to gaming companies such as BetMGM, DraftKings, and FanDuel, among others.

Despite those favorable points, Radnor Capital observed that Sportradar has endured a “mechanical/ technical overhang” caused by a lack of liquidity in the shares and a small amount of institutional investors controlling more than 60% of the float. The fund manager noted other professional investors looking to express bullish views on sports betting have opted for cleaner stories like DraftKings rather than dealing with the complexities of Sportradar. Those preferences don’t diminish the data providers alluring long-term potential.

“Bull case math for Sport Radar suggests 2026 revenue could be ~$1.5 billion-1.6 billion (vs. street ~$1.3 billion-$1.4 billion) and almost $400 million earnings before interest, taxes, depreciation, and amortization (EBITDA) (vs. street ~$300 million),” added Radnor. “I get there using a ~20% revenue compound annual growth rate (which we have visibility into given the contracted nature of their business) and a ~25% EBITDA margin (low end of their 25-30% long term target). So even if we don’t get multiple expansion (which I find hard to believe, given the upside to numbers), the stock should theoretically compound with earnings growth >20%.”

Sportradar Can Handle League Fees

Sportradar and Genius find themselves in interesting positions. They’re in the middle of content providers (sports leagues) and consumers, which are accessed via sportsbooks. As such, some analysts have expressed concern that the data providers could be forced to overpay for league data and be vulnerable to not making up those expenditures through increased revenue with gaming clients.

Radnor noted that while rights costs tied to Sportradar’s relationships with the NBA and the ATP (tennis) increased, the company’s EBITDA margins remained flat, indicating the company was able to absorb the most costly part of those agreements without significant financial stress.

“These sports rights costs are straight line amortized over the life of the investment, so the costs will remain flat for the existing contracts, while the betting volumes grow, and more value-add products / services are offered to the sports books,” said the money manager. “Also means that year 1 of these almost 10 year contracts will be the least profitable. This will prove meaningfully accretive to margins, which should approach ~25% by 2026 (street ~22%) and ~30% longer term, from ~18% today.”

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