Fitch Ratings: Wynn Resorts’ IR project to boost Ras Al Khaimah’s economy 

The European Court of Justice (ECJ) is set to determine whether German bettors can claim refunds for their losses from operators who offered their services without valid licenses before the German sports betting regulation. This decision follows a referral from Germany's Federal Court of Justice, Bundesgerichtshof (BGH).

From 2012 to 2020, many betting operators applied for German licenses but faced a lengthy bureaucratic process that resulted in no licenses being issued for years. Despite this, operators continued their services under licenses from other EU countries, such as Malta. According to German law, operating without a valid German license is illegal, which could void any contracts issued during this period and entitle consumers to claim refunds.

The case originated when a claim for €3,719.26 worth of losses was presented in front of a German district court. The plaintiff argued that Tipico, being unlicensed during the time of the bets, should pay back the losses. The district court dismissed the case and the appeal. However, a growing number of cases involving reimbursement from operators have been presented to the courts and treated inconsistently, leading the BGH to seek a definitive ruling from the European Court of Justice.

The EU promotes the free movement of services within the union, and this principle could lead the ECJ to rule in favour of the operators. The companies argue that the flawed German licensing process should not be held against them. They believe the EU court might rule against the refunds, aligning with a previous decision that identified the German licensing process as incompatible with EU regulations. If the ECJ sides with the operators, it would validate their operations during the licensing void and potentially limit their financial liabilities.
German Sports Betting Association president Mathias Dahms declared, "We are confident that the ECJ will rule in favour of the providers and the European freedom to provide services, as it has already done in the past."

Stakelogic B.V., a rapidly growing Dutch game developer, has announced a definitive agreement to be acquired by the Japanese entertainment conglomerate SEGA SAMMY HOLDINGS INC. through its wholly-owned subsidiary, SEGA SAMMY CREATION INC.. The deal, valued at an upfront enterprise value of €130 million, also includes an earnout payment contingent on certain performance measures being met.

Below are the key points of the deal.

The acquisition is set to combine Stakelogic’s extensive portfolio of popular online slot games, live casino studio capabilities, and innovative hybrid game offerings with SEGA SAMMY’s global distribution platform. This strategic move aims to leverage the strengths of both companies to accelerate growth and innovation in the iGaming sector.

Stephan van den Oetelaar, CEO of Stakelogic, will continue to lead the company post-acquisition. He expressed his enthusiasm for the partnership, stating, “Sega Sammy and Stakelogic share the same passion for online entertainment, innovation, and technology. Together with Sega Sammy, Stakelogic will be able to grow its international operations much faster. The regulated iGaming market will double in size in the upcoming years. As part of Sega Sammy, we will have the execution power to become one of the leading players in the iGaming B2B industry”.

Koichi Fukazawa, Senior Executive Vice President and Group CFO of SEGA SAMMY, echoed this sentiment, highlighting the strategic importance of the acquisition. “SEGA SAMMY Group aims to establish a presence as a creative B2B solution provider based on innovative technology, especially in the North American online gaming market. I am very pleased to announce our alliance with Stakelogic, an innovative and leading content provider in the Dutch gaming market, as a crucial part of executing this strategy. We are confident that Stakelogic’s ability to rapidly develop and provide unique, high-quality gaming content will make a significant contribution to the implementation of our strategy and create excellent synergies through combining with the strengths of our group”

Market Implications and Future Prospects

The acquisition is expected to significantly impact the iGaming market, particularly in North America, where SEGA SAMMY aims to establish a strong presence. The U.S. online gaming market, which includes sports betting and iGaming, was valued at approximately $12 billion in 2022 and is projected to grow to $27.1 billion by 2027. This growth is driven by increasing legalization and consumer adoption of online gaming platforms.

Stakelogic’s innovative approach and rapid content development capabilities are expected to enhance SEGA SAMMY’s competitive edge in this burgeoning market. The acquisition aligns with SEGA SAMMY’s medium-term plan to expand its gaming business, which includes the development and operation of integrated resorts and gaming machines.

The transaction is subject to regulatory approvals in relevant jurisdictions and other customary conditions. It is anticipated to close by the second quarter of 2025.

In summary, the acquisition of Stakelogic by SEGA SAMMY represents a strategic move to capitalize on the growing iGaming market. By combining their strengths, both companies are poised to drive innovation and growth, positioning themselves as leaders in the global online gaming industry.

Two influential New York State lawmakers have voiced strong opposition to the ambitious plans of Wynn Resorts and Related Companies for a casino at Hudson Yards on Manhattan’s West Side. This opposition is particularly significant as one of these lawmakers sits on the panel that will ultimately award the three downstate casino licences.

Assemblyman Tony Simone,(photo top right) representing the neighbourhood, has been vocal about his objections. He is opposing to a casino in the area. Simone’s role on the six-member panel that will vote on whether to recommend the proposed casino to the state Facility Location Board adds weight to his objections. “I’ve been clear: I’m philosophically opposed to a casino on the West Side of Manhattan,” he explained. “The community has been against it and, unless that changes, I’m a no.”

CEO of Related Companies Jeff Blau (photo top left) has been a key figure in promoting and defending the project, highlighting its potential benefits such as job creation, increased tax revenue, and community investments. He has also addressed concerns from local lawmakers and community members regarding the impact on the High Line and the surrounding area.

Assemblymember Deborah Glick, who represents the southern portion of the High Line and chairs the assembly’s environmental conservation committee, echoed similar concerns. In a statement published by the New York Post, Glick highlighted the potential negative impact on the High Line pedestrian park. “The High Line is a unique and beloved park intended to get New Yorkers and visitors outside and above the congested streets and sidewalks,” Glick said. “Any plans that block views from this distinctive vantage point or allow for building closer to the High Line run counter to the High Line Special District and would significantly alter the experience.”

In response to these objections, a spokesperson for Related Companies defended the project in a statement to the Commercial Observer. The spokesperson said that the benefits of the proposal, which includes a massive new park, hundreds of units of affordable housing, and development that will generate tens of thousands of jobs, billions in new taxes, and community investments. “Our proposal to transform the western yards has not even been formally submitted yet, so we would hope our government leaders would wait to read it before forming a judgment,” the spokesperson added.

The proposed Wynn New York City complex is a $12 billion development that would include multiple skyscrapers, 1,500 apartments, two million square feet of office space, a 750-seat public school, a daycare centre, and a hotel and casino operated by Wynn. Despite the opposition, the project is one of 11 vying for the three available downstate licenses in the New York metropolitan area.

As the debate continues, the future of the Hudson Yards casino project remains uncertain, with significant implications for the community and the iconic High Line park.

SiGMA East Europe Summit powered by Soft2Bet, will take place in Budapest from 2-4 September 2024

Renowned sports bettor Gadoon "Spanky" Kyrollos, who is facing extortion allegations and has admitted to illegal proxy betting, has launched a charity, American Bettors' Voice (ABV), to "eliminate friction" in withdrawal processes for gamblers.

American Bettors’ Voice

Kyrollos, alongside sports bettor Billy Walters, has now announced the formation of a non-profit organisation named American Bettors’ Voice (ABV). Based in Nevada, USA, the organisation aims to advocate for sports bettors and address several pressing issues within the industry - including the withdrawal process.

Kyrollos will serve as ABV's chairman, with industry professional Richard Schuetz as CEO.

One of ABV’s key focuses is the delay in fund withdrawals—a major complaint among gamblers, according to the UK Gambling Commission. The commission has criticised operators for introducing unnecessary friction during the withdrawal process, often requesting additional documentation at the point of withdrawal rather than during the deposit stage. Operators “should not continue to accept deposits indefinitely and then seek to rely on their AML procedures to frustrate a withdrawal request”, the commission declared.

The controversy began in March 2023 when an anonymous New York resident alleged that his personal information had been leaked by DraftKings employees. According to the plaintiff, this breach of privacy led to an unpleasant experience in which he was confronted and threatened with extortion for $500,000 by an assailant. The assailant allegedly demanded that the money be sent to the well-known sports bettor Gadoon "Spanky" Kyrollos.

In response to the lawsuit, "Spanky" Kyrollos publicly addressed the situation, arguing that the legal action stemmed from his past disputes with Steve Jacobs. Jacobs, recruited by Kyrollos to place illegal proxy bets, allegedly refused to share the winnings, claiming that operators would not allow him to withdraw the money.

The partnership recorded around $350,000 in winning bets and $14,000 in bonuses. Kyrollos expected payment once Jacobs withdrew $200,000 from his DraftKings account. However, Jacobs faced delays because DraftKings required him to sign an "affidavit of eligibility" before processing the withdrawal. Kyrollos suggested that Jacobs file a claim with the New York State Gaming Commission, which Jacobs reportedly did on February 6, 2023.

None of the winnings ever made their way back to Kyrollos. The famous sports bettor posted documents and theories on Twitter, speculating that Jacobs might have gambled away the funds, stolen them, or used another betting site. Kyrollos also claims that Jacobs anonymously sued him for extortion to avoid sharing the winnings.