Weekend Report: DraftKings to divest VSiN, Bermuda’s banks slow casino launch and more
Welcome to the Weekend Report, where iGB covers the news you may have missed over Friday, Saturday and Sunday. This week we’ve got news of DraftKings cashing out of its big media bet, Bermuda’s casinos struggling for acceptance in the banking sector and more.
DraftKings turns off VSiN?
DraftKings could be preparing to sell off its sports betting media specialist Vegas Sports Information Network (VSiN), according to Eilers & Krejcik Gaming.
Original owner Brent Musburger is allegedly set to take back control of the TV and radio network, which was acquired by DraftKings for $70m back in 2021. Active since 2017, VSiN broadcasts 18 hours of content a day, across multiple markets and streaming platforms, at one time showing Betting Across America, a BetMGM-backed sports betting programme.
While the sale is not confirmed it would take a significant media asset out of DraftKings’ stable, although it still maintains a distribution deal with Meadowlark Media, as well as its own streaming operation the DraftKings Network.
DraftKings and others such as Penn Entertainment, Bally’s and FuboTV have struggled to make a media-sports tie-up work effectively, but FanDuel continues to lead the way with FanDuel TV and TVG, the racing network originally acquired by Betfair in 2009, not to mention a partnership with Spotify-owned The Ringer.
Banks keep Bermuda’s casino plans grounded
Bermuda’s government will have to amend the country’s Banks and Deposits Companies Act to break an impasse between banks and casinos licensed by the Bermuda Gaming Commission (BGC).
The release of reports from the BGC highlight a series of delays caused by local banks being unwilling to serve casinos. This, they said, was because the risk-reward ratio “did not warrant the submission of an application” to have their correspondent banks in the US take casino money.
While there were hopes for Bermuda’s first casino opening as far back as 2021, the process has been held back by regulatory requirements viewed as too stringent to justify the costs for the banks.
This has already prompted changes to the Bermuda Gaming Act in 2023, to bring the governance structure in line with the country’s Monetary Authority. This was meant to make it easier to process financial transactions, but failed to bring the banks on board.
Potential changes to the Banks and Deposits Companies Act would be designed to allow banks to process transactions from BGC-registered businesses, according to junior minister of finance Arianna Hodgson.
The regulator has been established for almost ten years and, while it granted a licence to the St Regis hotel in October 2022, no casino has opened in Bermuda to date.
Betsson bolsters Peru presence as Inkabet secures licence
After securing licences for two brands in Peru, Betsson has added a third after Inkabet secured a licence from the ministry of foreign trade and tourism.
Inkabet launched in 2012 and was acquired by Betsson for $25m in 2021, two years after Betsson launched Betsafe in the market. That brand was approved to operate in Peru’s regulated gaming market in June along with the Betsson brand.
Betsson, which generated €43.7m from Latin America in the first quarter of the year, is also licensed in Colombia, as well as in Buenos Aires city and province and Córdoba in Argentina. It will also be a force in Brazil, where the acquisition of Suaposta – now Betsson Brazil – means it owns one of the best-known local brands.
Brazilian bar association sets up special gaming commission
The Brazilian bar association in São Paulo has formed a dedicated commission on gaming, which will be led by Luiz Felipe Santoro.
The Special Commission on Gaming Law, Betting and Responsible Gambling is formed as the process to regulate sports betting and igaming nears its conclusion, while a new process – in which casinos and bingo halls may be regulated – seems poised to begin.
Alongside regulatory issues, the Commission will debate and propose policy adjustments to develop responsible gambling safeguards for players and better tactics for tackling problem gambling.
