Image Source: Shutterstock.com

The American Gaming Association (AGA) released its Commercial Gaming Revenue Tracker to reveal that the commercial gaming industry in the US has set a new quarterly record in Q3 2022.

Growth across Key Gaming States

The new quarterly record of $15.17 billion in commercial gaming revenue was driven by quarterly highs reported in 16 out of the 33 commercial gaming states that were operational in 2021, including five of the six largest markets – Indiana, Michigan, Nevada, New York and Pennsylvania.

Commenting on the revenue tracker, AGA president and chief executive officer Bill Miller outlined that “high consumer demand continues to fuel” the industry and takes it to new highs despite the operational challenges that remain, convinced that the “sustained momentum in the face of broader economic volatility” is a sign of the gaming industry’s overall health and its optimistic outlook for the future.

Signs that the industry is on course to set a new quarterly record showed in AGA’s August commercial gaming revenue report when the industry body registered the 18^th consecutive month of year-over-year increases.

The third-quarter commercial revenue figure exceeded the previous record set in Q2 2022 of $14.81 billion by 2%, while year-over-year, it posted an increase of 8.8%. It also exceeded the growth rate of the broader US economy in Q3 2022 of 2.6%.

Breaking Down Revenue by Verticals

The largest chunk of the commercial revenue came from land-based slots and table games which accounted for a record $12.27 billion in revenue and posted an increase of 1.8% to the third quarter of 2021.

Percentage-wise, the biggest increase came from sports betting which generated $1.68 billion of the total commercial revenue and increased by 80.6% year-over-year driven by a high sportsbook win percentage and solid growth in existing markets.

Sports betting revenue also set a new quarterly revenue record in Q3 2022, while through September it has already reached an all-time year-to-date high of $4.78 billion and surpassed 2021’s full-year record of $4.34 billion.

The third vertical comprising the total commercial revenue, iGaming GGR, generated $1.21 billion and fell marginally short of also setting a new quarterly record but its year-to-date figure through September of $3.62 billion is positioning it within reach of setting a new record of full-year 2022 revenue and join the likes of table games and sports betting.

Through September, year-to-date total commercial gaming revenue stands at $35.94 billion, registering an increase of 8.1% to the respective figure in the previous comparable period.

The leading online gambling operator, Kindred Group, announced a new sponsorship agreement in Belgium and the Netherlands. Under the terms of the new deal, Kindred’s flagship brand, Unibet, was named the primary sponsor of Tour de Tietema, the famous Dutch cycling team.

Thanks to the deal, the company’s flagship brand was designated as the main sponsor of TDT-Unibet Cycling Team. The new collaboration applies to Belgium, as well as the Netherlands. Although currently, the team starts from a continental level, their plans are to achieve a ProTeam status soon.

What’s more, under the terms of the commercial partnership, the duo will collaborate to engage with sports enthusiasts and push them to start cycling. The latest deal also complements Unibet’s program called Unibet Impact, which was introduced for the Dutch market. The innovative program seeks to “foster a safer and more responsible online gambling industry,” according to the brand.

“We are delighted to have Unibet as our main sponsor. With Unibet, we have found a partner who has great confidence in our vision and supports us in our dream of turning the cycling world upside down with an innovative approach.“

Bas Tietema, founder of Tour de Tietema

Bas Tietema, the founder of Tour de Tietema, said that the team is excited to join forces with Unibet and select them as the main sponsor. He explained that Kindred’s flagship brand has a vision that coincides with Tour De Tietema. According to Tietema, the collaboration enables the team to keep its TDT brand identity which is something new for the cycling industry. Finally, the team’s founder said: “We are excited to start our journey with Unibet and for the future ahead.”

Lennart Kessels, Kindred Group’s general manager Netherlands, added that the company is excited to team up with the famous team. He said Kindred is honored to support the team and acknowledged their dedication to the sport. Kessels said that Unibet isn’t new to the cycling world, considering that in 2006 and 2007 the flagship brand sponsored a cycling team. Last but not least, he said: “We are therefore convinced that we can fuel the ambitions of this new cycling team.”

“We are extremely proud to work together with Tour de Tietema. Their dedication combined with their boldness to do things differently is a big inspiration. It’s an honor to help make their long-lived dream to start a cycling team a reality.“

Lennart Kessels, general manager, Netherlands at Kindred Group

The latest sponsorship agreement comes on the heels of another announcement by Kindred. The company recently teamed up with Gamban in France. The unique collaboration seeks to deliver the leading gambling-blocking software to Unibet users in the country. At the same time, the initiative boosts Kindred’s “Journey to Zero” initiative which is after eliminating the revenue from problem gambling.

Californian cardrooms can rest easy as locals prevented the controversial Proposition 26 from passing. Many feared that the measure would have given tribal casinos too much power.

Prop 26 May Have Hurt the Economy

Proposition 26’s goal was to amend local laws and provide tribal operators with the opportunity to hire private trial lawyers and replace the role of the attorney general. It is hardly surprising that the proposition quickly became the subject of controversy as many feared that tribal operators would have been able to abuse this power to put their competition out of business.

According to estimates, Proposition 26 endangered the livelihoods of more than 32,000 people and put wages totaling $1.6 billion at risk. Experts believe that the measure would have could have had a total economic impact of over $5.5 billion.

Commercial operators were unanimously opposed to the proposition. A united front of many organizations such as the California Contract Cities Association, Gateway Cities Council of Governments, AFSCME California, Disabled American Veterans, California Hispanic Chamber of Commerce and the Los Angeles County Business Federation banded against the tribal measure.

After several months of intense campaigning on both camps’ sides, the results are in. As it turns out, Californians were not in favor of Proposition 26.

The Opposition Triumphs

Press representatives of the opponents of the tribal measure said that it failed to fool the California voters. They proceeded to call the proposition a “massive expansion of gambling by five wealthy tribes” and added that the measure “included a poison pill” that would have stolen a huge market share from highly regulated cardrooms.

The opponents added that the measure would have jeopardized whole economies, putting tens of thousands of jobs at risk and damaging many communities. They are happy that the voters decisively struck proposition 26 down, realizing how bad it would have been for California.

Juan Garza, the executive director of California Cities for Self-Reliance Joint Powers Authority and a representative of the five cities where cardrooms fund vital services, said that he is proud that Californians chose to reject Proposition 26.

Prop 26 had a hidden poison pill that allows for unlimited lawsuits against cardrooms – a highly regulated industry that provides critical tax revenue for cities and jobs across California.

Juan Garza, exec director, California Cities for Self-Reliance Joint Powers Authority

Garza thanked all voters for voting against a proposition that, according to him, would have harmed thousands of people in the state.

The iGaming company offering cloud-based product and platform services, Gaming Innovation Group (GiG), released its third quarter revenue results. Announced Wednesday, the company outlined it has seen an increase in revenue and EBITDA in Q3.

Gaming Innovation Group Releases Q3 Revenue Report

GiG reported an all-time high revenue of €22.9 million ($23 million) in Q3. When compared to the result from the corresponding period in 2021, an increase of 35% is observed. Adjusted EBITDA in Q3 this year increased as well. The company’s latest report reveals that adjusted EBITDA hit €8.5 million ($8.5 million), marking a solid 47% increase when compared to the same period in 2021. Additionally, the adjusted EBITDA margin increased by 37% as well.

GiG Media’s revenues hit €15.1 million ($15.2 million) in Q3 this year, marking an all-time high record. This result marked a significant increase of 35% when compared to the same period in 2021. On the other hand, the company’s revenues from sportsbook and platform in Q3 increased by 36% to €7.8 million ($7.8 million).

“I am pleased with the development and performance of GiG over the third quarter. The business delivered another record quarter with revenue growth up 35% year-over-year.“

Richard Brown, CEO of GiG

Richard Brown, GiG’s CEO, acknowledged that he is pleased with the company’s results and performance for the third quarter. He added that Q3 this year marks another successful quarter for GiG with strong revenue growth year-over-year.

The Company Accomplished Multiple Achievements

Besides its latest financial results, GiG acknowledged it completed multiple strategic achievements during Q3 this year. The company outlined that it launched four brands during the third quarter. This increased GiG’s total number of live brands to 62 by the end of the quarter.

What’s more GiG’s platform and sportsbook increased its global presence significantly in Q3 this year by inking one agreement in North America, two in Latin America, as well as three in Europe. During the quarter GiG was granted a supplier license in Canada’s most populous province, Ontario. Consequently, the company revealed its plans to launch two brands within the market in Q4 this year.

Following Q3, GiG launched three brands. At the same time, the company strengthened its position within the growing LatAm market. “GiG Media reached an all-time high player intake in October 2022,” the company explained. More recently, earlier this week, GiG inked a deal with Spin Away, the leading online casino. The terms of the new collaboration saw the casino brand use GiG to launch its services for customers in Ontario.

Richard Kivel, chairman of Lotery.com’s board of directors, has handed in his resignation after trying to get the company’s finance under control in vain. In his resignation letter, Kivel listed the reasons for his departure.

Kivel cited the delayed arrival of the funding from Woodford Eurasia and the federal investigation into Lottery.com’s chief compliance officer, Dennis Ruggeri, as reasons for his leave. His time with the company has been fairly short, with him only joining a year ago.

When Lotter.com’s board members started leaving en masse, Kivel tried to remain calm and unite the rest of the team. However, in his letter, the chair admitted that the recent happenings have consistently prevented him from fulfilling his duties.

A Delayed Investment and a Federal Investigation

The aforementioned Woodford Eurasia deal from two months ago was a seemingly great opportunity to bring the company back on track. The company planned to invest about $2.5 million in Lottery.com, providing it with much-needed funding to reinvigorate its business. The lottery company was also to receive an additional $8.5 million loan against monies owed by financial services firm J. Streicher. Lastly, it was to receive an additional investment of up to $50 million at a later date.

According to Kivel, none of this money arrived. He accused Woodford Eurasia of making false promises that ended up damaging Lottery.com’s business.

The other problem that Kivel mentioned is the ongoing investigation of Dennis Ruggeri, Lottery.com’s chief compliance officer. Kivel said that the appointment of Ruggeri made him question Lottery.com’s leadership. He said that the company’s higher-ups have “put the company in serious jeopardy” and have hurt its ability to recover.

He concluded that his efforts to perform as a fiduciary and support the company’s business were “aggressively obstructed” by those aligned with the problematic investment groups.

Things Aren’t Looking Good for Lottery.com

The resignation of Kivel contributes to a future that doesn’t look rosy for Lottery.com. The company saw many of its valuable employees depart and also parted ways with Armanino LLP, its auditing firm.  

All this trouble began when federals found cases of incompliance amid Lottery.com’s leadership, which led to the discovery that the company’s cash holdings are $30 million lower than estimated.

Kivel isn’t the first board member to leave while claiming that the company is preventing its board from doing something about the existing problems. The situation even forced the company’s founder, Lawrence Anthony “Tony DiMatteo,“ to jump ship.