iGB issue 136_iGB L!VE 2024 | Page 10

LICENSING
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NEWS

News

TOP POSTS @ IGAMINGBUSINESS

ANALYSTS WARN OF HURDLES FOR BOYD ’ S REPORTED PENN BID
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GOOD TIMES

LICENSING

UPROAR AS ILLINOIS HIKES SPORTS BETTING TAX

MGM MGM Resorts is ramping up its digital capabilities by snapping up Tipico ’ s US sportsbook platform , with plans to deploy the technology in non-US markets . This complements previous deals for LeoVegas and Push Gaming . Players in the UK and Mexico will also get a direct line into the Bellagio and MGM Grand through a new live dealer partnership with Playtech , as it pieces together an expansive digital offering .

BAD TIMES

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Ilinois governor JB Pritzker has signed into law a state budget with a sting in the tail for sportsbook operators .
The governor had requested an increase in the sports betting tax rate from 15 % to 35 % of adjusted gross revenue but lawmakers went further , passing a progressive tax rate that goes as high as 40 %.
No retail sportsbook licensee reported revenue over $ 30m last year so all operators will be subject to a 20 % tax rate . The big increases come for the digital operators . DraftKings and FanDuel are both subject to a 40 % levy , while Fanatics and Rush Street Interactive ’ s BetRivers will pay
30 % of AGR . BetMGM , Caesars and Penn / ESPN Bet see their tax liability rise to 25 %.
After fighting the increase at every turn , the industry has reacted with fury , warning that the hike only harms consumers and benefits the black market .
“ Worse odds , no promotions , worse product all give the offshore illegal market apps ( which pay no tax ) a massive leg up when competing for customers ,” the Sports Betting Alliance said . “ We shouldn ’ t be driving back customers to dangerous bookies and illegal offshore operators . That will mean less – not more – tax revenue for the state in the long run .”
Read Jill Dorson ’ s analysis of this on p82 .
CATENA MEDIA Google ’ s revamp of its organic search policy has brought more pain for Catena Media , which scrapped its 2024 forecast in the wake of the changes . While it still expects to report revenue growth in H2 its adjusted EBITDA projects were “ no longer applicable ”, it said . The overhaul will reduce the effectiveness of some of its media partnerships , affecting the rankings of partner content , ultimately reducing revenue from such deals .
10 • ISSUE 136 • IGB L ! VE 2024