Igaming Focus: Illinois tax rate hike, first of many?

Welcome to this week's Igaming Focus Newsletter.

In this week's thread

• Progressive growth? Let's take a look at the impact of the Illinois State tax rising on online sports betting.
• I n-house Simple's: In addition, I will explain in detail why Draftkings has decided to acquire SimpleBet following the acquisition of IQ.
• Delaware and Alberta legalized ICASINO in 2025? Q1 Published in summary.
• Gaming Group Group has contracted as the first customer of Primero Games and Sweepstakes Solutions.
• Plus: Rev. Al Sharp Ton laments the monopoly, regulation, and news shorts in the United States.

Illinois’ sports betting tax hike

A slide tax system that affects market leaders while other states seek potential inspiration in the Lincoln movement.

Progress Unchecked: This week's industry news focused on the sports betting tax hike that Illinois Governor J. B. Pritzkers would sign. The State Sogo approved the bill last Sunday, and the lower house passed it last night, and will head to the governor's desk. This tax increase affects Funduel and Draft Kings. As a market leader, they will increase the tax rate for total income.

As the only betting brand that is likely to achieve $ 200 million GGRs in the state, they will be imprisoned as the tax amount rises:

• The first $ 30 million is 20
• The following $ 20 million GGR is 25
• GGRs of $ 50 million to $ 100 million are 30 %.
• 100 million to $ 200 million: 35
• $ 200 million or more 40

Reaction time

When a professional becomes ant i-anti ......: ALLIANCE OF SPORTS STAMPERS, an industry group in the industry, this decision is "very disappointing" and "counterproductive", which is dangerous and licensed. He said that it would reduce the appeal of the operator's product and support the solicitation of a sportbook that was not regulated in the process.

• ... and the opposition is in favor. On the other side of the discussion, the counter siege lobby, The Campaign for Fair Gaming, stated that the industry was dubious about the impact of the tax increase and exaggerated the Black Market Bogman's threat.
• The CFG has been established by Gambling entrepreneurs Derek Webb in the UK, and has been running a campaign for many years behind the UK's online slot and fixed oddsbetting betting.
• Market: German Bank stated that the tax system was similar to what was applied to the casino industry in Illinois and was actually proposed by a casino business.
• Chain reaction: The goal was to collect $ 200 million, but based on the past 12 months, the new system is expected to collect about $ 170 million. However, because "sports betting taxes have fallen significantly", many states, such as New Jersey, Michigan, Iowa, Indiana, Arizona, and Kansas, may follow Illinois. DB was added.
• JMP, a fla t-tax official, assumed that the business model was adjusted "through a decrease in promotion and marketing costs", which affects the market size, and in New York, which has a tax rate of 51 %, FANDUEL and DRAFTKINGS are marketing "Marketing," He pointed out that structural superiority is obtained through the willingness to spending.
• Gradually change, however, because the new tax system has a "ste p-b y-step" structure, larg e-scale businesses cannot "structurally strategic foothold", so they will "change this equation". There is a place for more fair competition.

Source: Citizen JMP

Shakunbake: JP Morgan pointed out that the stock price was rising on Tuesday morning, saying that "investors have already incorporated the risks of raising the tax rate."

• Analysts are expected from the new tax system that "negative effects of $ 35 million to $ 44 million in 2024 gross profits and $ 134 million to $ 134 million in gross profit in 2025." He added that the ability to use the group to "realize advertising yields and streamline operating expenses" should help.

Paramount Pictures: Forest Gump

DraftKings’ simple is as simple does

The movement of Draftkings Acquiring live oddsbetting providers, SimpleBet, is in line with the company's goal that the cost of thir d-party is reduced, profits, and EBITDA increases.

With the news that Lois signed the SimpleBet acquisition negotiations, the CDC gaming report showed that the two companies signed a book to complete about $ 200 million transactions. However, simple beds were valued in 2021 in the $ 200 million, and investors were seeking almost twice as much.

• Paper Tiger does not exist: The valuation is not achieved, and it is understood that payments will be made mainly in DRAFTKINGS shares.

DRAFTKINGS Price LTM

sauce

By acquiring the skeleton trading SimpleBet, DraftKings can save millions of dollars for third parties.

• The acquisition of SimpleBet matches the DRAFTKINGS goal of focusing on live betting, following recent transactions with sports analysis IQ.
• According to CDC Gaming Reports, Entain had also been looking at Angstrom before acquiring the OSB provider for £81 million as part of a strategy to bring as many of these providers in-house as possible.
• Jack in the Pack: The Boston-based group also announced the completion of its acquisition of lottery messenger group Jackpocket for $750 million last week.

Quarterly recap: Q1 up on 2023, icasino likely in two markets

Growth in OSB and icasino in Q1 means two more states are likely to legalize icasino by the second half of the year.

Two out of four: In its Q1 industry roundup, the Macquarie team named Maryland and the Canadian province of Alberta as the territories most likely to legalize online casinos by the second half of 2025.

• During the quarter, North American online betting GGR grew 26% year-on-year to $4. 8 billion, with retention levels remaining stable at 9% and icasino growing 28% to $2. 4 billion.
• For FanDuel, the Jefferies team noted that Q2 trading was encouraging for the group, with April trackers suggesting "NGR capital growth +30%", OSB up 25%, igaming up 54% and sports margins up 12% from 9. 5% in March.
• FanDuel's bet rate remains top at 35% vs. 25% for DraftKings, and parity margins continue to lead the market at 19% vs. 14. 3% for DraftKings and 13. 5% for other operators.

Gaming Innovation Group signs with Primero Games in online sweepstake push

This new partnership marks GIG's launch of a new solution with its first lottery client.

Sweep the board: The new partnership will kick off the launch of GIG's new social casino lottery solution, SweepX, which combines the group's gaming platform with a customized lottery back office. Sweepstakes games allow players to buy virtual coins and play with them to win prizes and cash rewards.

• Booming: The pandemic has caused the social lottery gaming market to explode as consumers sought gaming options. Eilers & Krejcik Gaming forecasts it will generate revenues of around $3 billion in 2022, with a CAGR of 31% through 2025, and the market reaching $6. 9 billion by the end of next year.
• GIG CEO Andrew Cochran told the CDC Gaming Report that the launch of the sweepstakes solution will give the group's B2B partners "access to a highly lucrative and growing industry."
• "The power of technology can add content, free to play, and real money aggregation and combine it with new products such as social lottery. In the United States, even in restricted markets. The speed to launch the market is guaranteed and has a great interest in stakeholders such as tribal groups. "
• Prime Number: Premero Games, which was established in 2009, manufactures a sweepstakes machine based on the United States, and also owns Sutom Games, a British retailer and content studio. I am.
• GIG states in a press release, saying "PRIMERO will rapidly advance to the online social casino market by using a wide range of player databases."

Al Sharpton warns FTC about OSB “duopoly”

Rev. Al Sharp Ton has sent a letter to Lina Khan, chairman of the Federal Trade Commission, and has expressed concerns about Gaming Bazar, including Draft Kings and Funduel.

That's right: Civil rights movement leaders believe that the concentration of market share will threaten consumer protection, especially the protection of American blacks, which account for most of the user. He wrote that the market share between the two companies was 75 %, while the lobby group of the participating alliance made with Bet MG and fanatics dominated nearly 90 % of the market.

• 68 % of American blacks are participating in sports betting, which is more than any other layer. He stated that if the tw o-party choice was established, a weak consumer would be the biggest loss.
• The letter called for FTC to investigate and deal with these ant i-competitive practices to secure a fair and competitive market that protects all consumers.

Regulatory round up

The Delaware House of Representatives bill 365, which expands Igaming, is currently submitted to the House of Representatives and Experience Committee. The bill allows three casinos in the state to partner with two online sportsbooks.

Louisiana's election, Senator Thomas Presley, has submitted a proposal for the House of Representatives 906. This amendment obliged to restrict casinos to political campaigns.

Massachusetts State Senate rejected the budget amendment by Senator John Kinan, who raises sports betting tax from 20%to 51%in order to use gambling addiction measures.

Congress is considering nationwide standards for electronic customer data management. The American Privacy Law determines privacy rights and security standards, which can affect iGaming operators.

News shorts

Canada's North Star Gaming has contributed to the increase in profits during the period of Baden Resources and Canada's real estate business MIDWAY Property and online development in Canada, and the earnings in the first quarter have increased 64 % to 6 million. It became a Canadian dollar. Active players have increased by 42 %, CPAs decreased by 9 %, and new marketing contracts with PlayTech have played a role.

British horse racing odds and Market providers SIS provide lives, area s-pricing and derivative market libraries provided by Racing and Sports (Ras) to the world's largest online casinos and sports books. 。

BETMGM is the official odds provider of AP communication, which is currently the largest news agency in the United States.

What to read

Pen Entertainment's North Star Gaming in Canada has contributed to the reversal of Baden Resources and Canadian real estate business MIDWAY Property and the online expansion in the Canadian. The quarterly revenue increased 64 % to 6 million Canadian dollars. Active players have increased by 42 %, CPAs decreased by 9 %, and new marketing contracts with PlayTech have played a role.