iGaming News Round-up: River iGaming, New Hampshire, MSG
The first week of 2020 marked several important developments in the iGaming business. With 13 states in the US accepting sports bets, a number of high-profile business moves transpired. River iGaming decided to shift its focus fully on the B2B segment whereas DraftKings consolidated its footprint in New York. Here’s the iGaming news round-up for January 6, 2020.
River iGaming Refocuses Efforts on B2B License
River iGaming has parted with its UK B2C license, citing concerns about the segment’s future. Following a strategic review of its operations, River announced redundancies and said that it would be selling off its B2C assets.
During a Q3 review in 2019, the company partnered with Akur Capital to sell off the B2C arm and transition to a B2B company or a provider of Software-as-a-Service (SaaS) solutions instead.
In an official statement published on December 23, River explained that the longevity and sustainability of the B2C vertical was in question, and it had decided to shed its assets related to the sector.
Throughout 2020, the company will spearhead its shift towards a fully-licensed B2B business. To do so, the company will try to bring new partners onboard. The Q3 review confirmed the interest in the segment, but it noted a slow activity in B2C, hence the company’s decision.
Everi Snaps up MGT Assets Worth $25 million
Everi, a Las Vegas-based company, has decided to pay $25 million to acquire the business of Micro Gaming Technologies (MGT), a provider of financial technology, gaming products, and other casino-related assets.
As a result, Everi will expand its own portfolio with a number of player loyalty solutions as well as FinTech products and services, edging out the iGaming segment. As per the current terms of the acquisition, Everi has paid $15 million in cash, and another $5 million should be paid by April 2020 with a final payment of $5 million coming by December 24, 2021.
Everi Executive VP Darren Simmons welcomed the acquisition of the company, pointing out the synergies that the move brought with it. As per Simmons, the acquisition created a new leader who would serve as a one-stop shop for “comprehensive, integrated solutions that enable a seamless, convenient experience for casino patrons.”
New Hampshire Launched Sports Betting
New Hampshire has long been one of the most anticipated sports betting launches in the United States. As of 2020, all residents in the state can tap freely into the sports betting options brought to them by the New Hampshire State Lottery and specifically through an exclusive multi-year partnership with DraftKings.
On December 30, the state officially gave the go-ahead to all sports betting operation, including online betting, which puts New Hampshire at a significant advantage over most neighboring state.
Governor Chris Sununu has high hopes for the upcoming major sports events in February and March, with the Super Bowl and March Madness respectively. He even placed a wager on the New England Patriots to qualify and win the Super Bowl.
He may yet lose on this wager as the Patriots just got dismantled by the Tennessee Titans on Sunday, December 5, with 20-13 going the way of the Titans.
Nevertheless, legalizing sports betting in the state is seen as a strong move. The New Hampshire Lottery is hoping to use the tax proceeds from legalizing sports as a way to boost the education fund in the state.
Thanks to its exclusivity contract in the state, DraftKings can focus on driving higher betting results, which would translate into further tax revenue for the state, lottery officials hope.
DraftKings Strikes a Partnership with Madison Square Garden
DraftKings achieved an important milestone last week in New Hampshire, launching the sports betting industry in the state. The company, however, didn’t limit itself to NH and struck another high-profile partnership with the Madison Square Garden (MSG) in New York.
As a result, the company is now the official betting partner for one of the United States’ most famous sports arena. Previously, DraftKings had a running daily fantasy sports partnership with Madison Square Garden dating back to 2017.
Commenting on the latest development, MSG Executive VP Ron Skotarczak had this to say:
DraftKings has established itself as one of the most successful gaming companies in the industry and we are honored to continue our partnership with their incredible brand.
Moving forward, DraftKings is also considered an official betting partner to the New York Knicks and New York Rangers games as well as broadcasts on MSG Networks. Meanwhile, DraftKings is already in the process of an acquisition.
In December, Diamond Eagle Acquisition Corp.’s SBTech announced the acquisition of DraftKings, setting another important consolidation in the iGaming and betting market in motion.
BetAmerica Comes to Indiana
Churchill Downs Incorporated (CDI) has announced the release of the BetAmerica sportsbook in Indiana at the Full House Resorts’ Rising Star Casino Resort in Rising Sun. CDI is taking advantage of the generous landscape for sports betting in Indiana.
Legalized by Governor. Eric Holcomb, Indiana has managed to beat Illinois and be the first state to offer sports betting in the area. Holcomb estimates that Indiana stands to generate a total sports handle of $2 billion a year, although Super Bowl and March Madness results haven’t come in yet.
Ian Williams, president of BetAmerica, said that the company is excited to be part Indiana’s landscape. The company is specifically well-poised to benefit by Indiana’s openness to mobile betting, which is expected to drive the bulk of the interest in the state.
In a recent interview, Eric Holcomb said that he is optimistic about the future of sports betting in the state. He is willing to consider the further expansion of gaming, with segments such as slots and poker, but only after the real benefits of the current sports betting industry have been assessed in full.