Current status of federal Massachusetts, Bovada is suspended.

Massachusetts has suspended its business this week with offshore operator Bovada. The company has not obtained a license, but offers online casinos, gambling and sports betting in Bay. On Thursday, October 3, the prosecutor's office sent the following letter:

In Massachusetts, it is illegal to engage in commercial gambling, except that it is explicitly permitted by the Federation. G. L. C. 4, Sec. 7 (Definition of "illegal gambling"); G. L. C. 23k. Bovada is G. L. C. C. C. C. C. C. 23k. It is provided without a license issued by the committee based on . 23K. There is no license issued by the committee based on G. L. C. 23k.

Furthermore, Mass. G. L. C. 23. Article 5 (a) prohibits engaging in "all activities related to sports gambling in the federal" unless all the necessary licenses are obtained. Bovada does not have such a license, but offers sports betting on the platform. Similarly, Bovada's website allows horse racing betting, but Bovada has no horse racing license license licenses. It does not hold a horse racing license based on G. L. C. 128a or Mass. G. L. C. 128c.

This year, Bovada shuts down the platform after receiving a suspension of business in several states, including Michigan and New York. Massachusetts has demanded that Bovada shuts down immediately or to be penalized for up to $ 5, 000 per violation.

In other news, the Michigan Gambling Committee (the first committee of the Bovada ordered order) sent a stop order to offshore operators Papaya Gaming on Thursday.

Hmm, it doesn't work

On October 1st (Tuesday), the NCAA Committee published a simple report, saying, "The ban is not effective in stopping gambling actions, and the current ban is effective for student gambling. There is almost no evidence to prevent. " Basically, the committee states that banning student athletes does not go away.

A committee on sport s-like safe guards and medical aspects discussed the prohibition of gambling, "deregulation," and that student athletes allowed professional sports. The committee will continue to consider this theme in the future.

Gambling income deceleration?

On October 1 (Tuesday), a survey conducted by the US Gaming Association for industry executives revealed that 88 % answered "good" or "satisfied" about the current situation in the industry. However, the pros and cons of the future of gaming income were divided. This year, the expansion has slowed down, and 28 % of the surveyed persons have expected that customer activities will decrease between the next three to six months.

Compared to the first quarter, the percentage of managers expecting to decrease has increased 24 %. Nevertheless, 34 % predict that the balance sheet will be a net positive in the next few months. In addition, 19 % of the investigators answered that access to credit has become easier. Most operators say they focus on physical expansions such as hotels and food and beverage, but 13 % of suppliers expect to slow down capital investment and game sales. Many voices are concerned about the current economic situation, such as inflation.

That's interesting ...

At least gambling operators are taking care of the possibilities of the federal government and taking action. According to Ryan Butler this week

In Canada, advertising purchases decrease

Covers reported last week that the Canadian Senate has learned that betting advertisements are on a declining trend in Japan. Chairman Kevin Desjardins, Chairman of the Canadian Broadcasting Corporation Association (Canadian Association of Broadcasters), has set a unique restriction on the amount of private channels in the Senate Transport and Transportation Committee on September 26. I revealed that. Sports book operating companies also reduce advertising costs.

The hearing was related to S269, a bill that proposes a strict restriction on betting ads. It also includes restrictions and ban on betting ads on TV. Dejaldan said that such regulations were "premature" and that the federal government did not need the "overpot". Dejaldin's comment was under the report of the Canadian Gaming Association, which revealed that betting advertising regulations in Canada had evolved more quickly and in response.

The Canadian parliament will hold an additional hearing this month and continue to consider this issue.

Further support for veterans in gaming < SPAN> On October 1 (Tuesday), a survey conducted by the US Gaming Association for industry executives, and 88 % answered that the current situation in the industry said "good" or "satisfied". Was revealed. However, the pros and cons of the future of gaming income were divided. This year, the expansion has slowed down, and 28 % of the surveyed persons have expected that customer activities will decrease between the next three to six months.

Compared to the first quarter, the percentage of managers expecting to decrease has increased 24 %. Nevertheless, 34 % predict that the balance sheet will be a net positive in the next few months. In addition, 19 % of the investigators answered that access to credit has become easier. Most operators say they focus on physical expansions such as hotels and food and beverage, but 13 % of suppliers expect to slow down capital investment and game sales. Many voices are concerned about the current economic situation, such as inflation.

That's interesting ...

At least gambling operators are taking care of the possibilities of the federal government and taking action. According to Ryan Butler this week

In Canada, advertising purchases decrease

Covers reported last week that the Canadian Senate has learned that betting advertisements are on a declining trend in Japan. Chairman Kevin Desjardins, Chairman of the Canadian Broadcasting Corporation (Canadian Association of Broadcasters), has set a unique restriction of some private channels on the Senate Transport and Transportation Committee on September 26. I revealed that. Sports book operating companies also reduce advertising costs.

The hearing was related to S269, a bill that proposes a strict restriction on betting ads. It also includes restrictions and ban on betting ads on TV. Dejaldan said that such regulations were "premature" and that the federal government did not need the "overpot". Dejaldin's comment was under the report of the Canadian Gaming Association, which revealed that betting advertising regulations in Canada had evolved more quickly and in response.

The Canadian parliament will hold an additional hearing this month and continue to consider this issue.

Further support for veterans in gaming on October 1 (Tuesday), a survey conducted by the US Gaming Association for industry executives revealed that 88 % answered "good" or "satisfied" about the current situation in the industry. It is. However, the pros and cons of the future of gaming income were divided. This year, the expansion has slowed down, and 28 % of the surveyed persons have expected that customer activities will decrease between the next three to six months.

Compared to the first quarter, the percentage of managers expecting to decrease has increased 24 %. Nevertheless, 34 % predict that the balance sheet will be a net positive in the next few months. In addition, 19 % of the investigators answered that access to credit has become easier. Most operators say they focus on physical expansions such as hotels and food and beverage, but 13 % of suppliers expect to slow down capital investment and game sales. Many voices are concerned about the current economic situation, such as inflation.

That's interesting ...

At least gambling operators are taking care of the possibilities of the federal government and taking action. According to Ryan Butler this week

In Canada, advertising purchases decrease

Covers reported last week that the Canadian Senate has learned that betting advertisements are on a declining trend in Japan. Chairman Kevin Desjardins, Chairman of the Canadian Broadcasting Corporation Association (Canadian Association of Broadcasters), has set a unique restriction on the amount of private channels in the Senate Transport and Transportation Committee on September 26. I revealed that. Sports book operating companies also reduce advertising costs.

The hearing was related to S269, a bill that proposes a strict restriction on betting ads. It also includes restrictions and ban on betting ads on TV. Dejaldin said that such regulations were "premature" and that the federal government did not need the "overpowering". Dejaldan's comment was reported by the Canadian Gaming Association, which revealed that betting advertising regulations in Canada had evolved more quickly and in response.

The Canadian parliament will hold an additional hearing this month and continue to consider this issue.

Further support for veterans in gaming

Chalkline CEO Daniel Kustelski revealed via LinkedIn that he is part of a group launching VeteransInGaming. org, which will provide support services to veterans working in the gambling industry. Kustelski, a West Point graduate, wrote that he has met many veterans working in the gaming industry and feels it is time to create a formal space for veterans and those who support them to exchange information, stories and provide support.

He wrote that the organization's "core values ​​- candor, resourcefulness, responsible gaming and member growth" will be the organization's credo. The group will sponsor Chalkline's G2E Fun Run in Las Vegas on October 7 and will host a happy hour at the conference.

Broncos Destroy Circa Survivor Pool

The Denver Broncos have upset the Circa Survivor pool. On Sunday (September 29), the Broncos beat the New York Jets 10-9, resulting in the elimination of 110 entries. However, this was less damaging than the Broncos' come-from-behind win over Tampa Bay in Week 3, which eliminated 667 contestants. That number represents 25% of the remaining contestant pool. Last week was also the first week that the team with the most picks (San Francisco in Week 4) advanced.

In Week 4 of the season, 480 contestants remained, with a $14. 2 million (£10. 8 million/€13 million) first place prize.

Bet365 puts down roots in Colorado

British-based Bet365 opened its North American office in Denver this week, The Denver Post reported on Monday (September 30). The company plans to hire 1, 000 new employees, 300 of them in the first year. The new facility will be built in a 120, 000-square-foot space in a live-work building between the Lower Downtown and Lower Highlands neighborhoods.

The company will receive $14 million in tax breaks and credits over eight years, according to the Colorado Economic Development Commission. To access the tax credits, Bet365 must meet certain job creation and salary standards.

Bet365 operates in 11 U. S. states. Bet365 is not the first international gambling company to choose Denver as its U. S. headquarters. PointsBet North America opened its second U. S. office in Denver in 2019. The company has since been acquired by Fanatics Sportsbook.

Check out ESPN Bet's latest ads

Less than a week after going live in New York state, ESPN Bet debuted two new ads:

In other news

The NCAA announced Thursday (Oct. 3) that Las Vegas will host a women's college basketball regional tournament for the first time in more than 30 years. Las Vegas will join Philadelphia in 2027.

SportTrade announced on October 4 (R) that it will add strategic investor Sig Sports Investments Corp. New financing will be used to expand business in the United States, acquire customers, and continue technical improvements. In addition, SIG will work on strengthening SportTrade's major market by providing further liquidity in various sports and contract types in the next few months, and improving prices. 。

German's analysts are maintaining the "buying" rating of Caesters Entertainment before an investor briefing in Las Vegas next week. On Thursday (October 3), the company wrote that there was no specific change, but we continue to like Caesers.

BETMGM announced on September 30 (Monday) that it will expand its partnership with major leagues and become an official bullpen sponsor for playoffs. BETMGM also starts a $ 50, 000 bullpen jackpot. If a player hits a home run with a bullpen, Better, who bets on the home run that day, gets a bonus bet $ 50, 000 pot.

Worth reading

This week, CASINO Reports has debuted a new resource for the industry and a clearing house in US online casino data. This page includes market share, GGR, and tax information and is updated every month. Please see here.

Laurence Escalante 5 billion dolgamic Empire's financial demolition

Lawrence Escalante's "WFB" (work from a boat). Click here for source: Provided

Article body body

Lawrence Escalante has built the Virtual Gaming Worlds (VGW) Holdings from the basement into a global gambling powered country, which has made nearly $ 5 billion profits.

In 2023, VGW became the sixth largest private company in Australia due to sales, with 1200 employees worldwide.

Currently, Lawrence is sunbathing on Lamborghini's yacht and driving 120 supercars.

Before the establishment of VGW, Lawrence started as a religious Christian and runs a game company, White Night Games, which focuses on religion immediately after graduating from college.

White Knight was originally aimed to lead to "Christianity" in all business activities, and promised to donate 10 % of the game profit to reduce the Philippine poverty.

He also worked for many years as a boring financial planner before the great success in online casinos.

So who is this mysterious billionaire? How did you build a huge wealth so quickly?

In this financial deconstruction, we unravel the story of Lawrence Escalante's Virtual Gaming World empire.

... Then there are gold coins.

Gold coins are a virtual currency that cannot be converted into cash. However, gold coins can be purchased directly in the store, just like buying gems in Clash of Clans.

Gold coins are used to encourage game usage, and once players get hooked, they buy more gold coins to keep playing.

They also give away prize coins, and have a chance to win real prizes.

Gold coins generate revenue and keep players hooked on the game, without being classified as "gambling".

This is a pretty genius regulatory play.

Now, the "shady" part is that most prize casino operators will "gift" you more prize coins if you buy enough gold coins.

At that point, it's pretty hard to say that people aren't spending money directly on gambling, as all prize casinos claim.

Since prize casinos are not treated as real casinos, they are available in all US states that prohibit gambling.

States where Thrillz, a prize sports betting platform, is available.

They also fly under the radar, paying no licensing fees and without regulation.

VGW was one of the first taxis to drop the ranks in this market and is reaping the rewards of first-mover advantage.

History of the Casino

Escalante wasn't the first to spot this loophole, but he was the first to win big in the category on mobile.

The idea of ​​a "sweepstakes" actually dates back to the 1940s.

A "sweepstakes" is nothing more than a lottery with a prize that "no purchase is required to enter" and "purchases do not increase your chances of winning."

An early "sweepstakes" event at an Irish hospital sweepstakes in 1946. Source: Provided

In the 2000s, we moved from physical slot machines to digital gambling, as venues disguised as Internet cafes and offered "slots" on computers without the chance to win actual cash prizes. These early sites didn't have the ingenuity to build the "twin coin" model that defines today's sweepstakes casinos, but they played a key role in facilitating the shift to online slots.

The Magic of Escalante

Weaving together these concepts, Escalante was actually working on two big ideas that would determine VGW's explosive growth very early on.

First, he realized that mobile was going to be big. Just as the shift to mobile built the platforms for Uber and Instagram, it also created a platform shift for VGW. Facebook allowed online gaming companies to advertise, providing a huge top-of-funnel for customer acquisition. The success of Zynga Poker in 2006-07 paved the way for a flurry of online gaming companies to get into the game.

Second, Escalante had the ingenuity to come up with a "sweepstakes" model that offered two sets of coins. Combining an online slots platform with a prize-token reward model, Escalante was effectively running a "pay-to-play" real money casino without customers explicitly paying an entry fee.

Finances

Now, here's the thing.

How much does VGW make?~Enough to sponsor the Ferrari F1 team. 🤣

VGW became a premium partner of Ferrari in 2023 as part of its global marketing. In response to the branding move, one VGW investor said of Lawrence's move, "He's throwing money at the wall and treating the company like it's his own fiefdom."

VGW's FY23 EBITDA was $580m and post-tax profits were $376m.

At the 5-8x EBITDA margins that online gambling businesses typically trade at, VGW would be worth about $3bn-5bn on the public markets.

... about the same size as Super Retail Group and A2 Milk. 🤯

The numbers are obviously huge, but the margins aren't as high as you'd think.

Gross margins are 25-30% and EBITDA margins are in the low teens.

VGW also appears to have ramped up marketing and advertising spending in 2023.

From a top-line perspective, the revenue growth over the last few years has been downright phenomenal.

The business exploded during COVID, going from $350 million in revenue to $2. 2 billion in two years.

But growth has continued since then, with revenue growth of 40%-50% year-over-year in FY22 and FY23.

From a cash flow perspective, however, the numbers are less phenomenal. FY18 cash flow is ahead of FY21 on a fraction of FY21 revenue, suggesting the growing pains this business is feeling.

$500 million in operating cash flow is still pretty phenomenal.

The company has paid out a whopping $888 million in dividends since 2018!

Regulatory Risk

The obvious risk for this empire is regulation.

While their operations are quasi-legal and walk a gray line in legal sophistry, there is a good chance that they will be cracked down on and their revenues will plateau.

In February 2023, Delaware ordered VGW to close its operations in the state, and Michigan also sued the company in December 2022.

"The Delaware Department of Gaming Enforcement (DGE) issued a cease and desist order against VGW (Virtual Gaming World) Lucky Land, Inc. on February 23, 2023, for slot operations/games in Delaware. "

In May 2024, a class action lawsuit was filed against them for their operations in Georgia. Regulators are coming 👀

In the Australian gambling market, Aristocrat recently announced it was considering selling its mobile gambling division, Pixel United, which includes sweepstakes operator Big Fish Casino, due to similar concerns over regulatory risk.

The jury is still out on whether these online gaming platforms are legal.

Allison Incero of the New Jersey Attorney General's office said, "Social casino is a term of art.... not a legal definition."

Competition

The sweepstakes market is also heating up.

Just a few years ago, VGW boasted over 90% share of the sweepstakes gambling market.

Today, competition is fierce, with competitors eating away 55% of the market from VGW.

Stake. com, from fellow Australian casino billionaires Ed Craven and Bijan Tehrani, has launched a competitor. International Game Technology has PlayDigital. The list goes on.

Nevertheless, such a depression is expected because the market grew explosively during this period. Gambling sites try to provide coins better to each other, so they may be able to explain why the margin was compressed despite the tremendous growth growth.

"Virtual Gaming Worlds is still dominant, but we expect a significant market share in the next few years," says Eilers & Amp; Krejick Gaming.

IPO negotiation

But there are even better things.

Escalante is hinting on the company's stock public.

In 2021, Escalante states in a shareholder letter:

"There is no pressure on listing, but VGW is open for future liquidity events.

VGW has made high profits and does not require additional funds. However, providing liquidity in an appropriate way recognizes that groups and shareholders have potential benefits. Listing in North America is much more likely than ASX. "

So is there a possibility of IPO?

All the initial investors of VGW will eventually want to cash out.

But in reality, considering the risks of regulation, listing this business is absolutely nightmare, and stock disclosure will only attract more attention.

The company's shares are traded in the Australian private market stock market, called the Primary Market, but the stocks in these markets are usually traded at large discounted prices due to lack of circulation.

DBTV of YouTuber, a car that poses in the escalante supercar collection. Click here for source: Provided

Key point

As a whole, VGW Holdings is one and only.

Ethical suspicion? Of course.

However, it is a cash cow and a similar story.

There aren't many companies that can reach $ 2. 2 billion in less than two years in less than $ 300 million.

Also, not many people have 120 supercars.

Regulatory reform can be a great opportunity to build a huge company. Escalante has realized it.

This article was first published by SBO Financial.

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About the author

Jason Andrew is a certified public accountant and is the founder of the accounting and business financial office SBO, which provides services to small and mediu m-sized enterprises around the world. He is passionate about the support of managers so that they can bring out value from numbers and data.

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