CVC acquires stake in German sports betting group Tipico

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The investment in a big sports betting brand has been in trend off late with top most corporates shelling out big amount to buy major stakes in betting operators and Private equity group CVC Capital is one such venture fund who announced to have bought a considerable stake in German sports betting operator Tipico. Tipico has been passing through a potential cash crunch and to surge their cash balance they hired JP Morgan and Rothschild to look out for potential investors willing to partner with them. It took a good six months to find an interesting capital fund in CVC who also has similar stakes in other betting brands like UK sports betting company Sky Betting & Gaming. Although, actual details about the percent of stake and its value is not made public, but according to financial experts, Tipico valued itself to the tune of S$1.12 billion to $1.68 billion recently, hence it is assumed, amount for the deal should be enough to give them key stake in the German betting giant.

If we look at the financial background of Tipico it is one of the biggest sports betting brand in Germany founded in 2004 and has the sponsorship right of national football champions Bayern Munich. Moreover, they offer their services in both online as well in-store modes along with several online casinos with expected revenue to the tune of €500 million net. They earn major share of revenue through processed bets that made them one of the most strategically run betting house in the region and looking at this deal, industry experts are taking it a good bet for Luxembourg based private equity firm who is slowly but steadily spreading its arms across Europe.

Moreover, if we consider at its technical aspects, it would not be an easy going task for new owners since German “fuzzy” gambling laws are going to be a big problem for them and Government attitude is also not supportive for new gambling entrants. Anyways, if we look at CVC think tanks it is their first big move towards sports betting after they hired Goldman Sachs Group Inc.’s ex-Germany chief Alexander Dibelius last year who believes to be having vast experience in this sector. CVC issued a statement revealing the deal that says, “Tipico will be able to benefit from CVC’s extensive industry expertise, most notably from their experience as the majority owner of Sky Bet, a leading operator in the UK’s betting market. CVC has also previously had investments in the sports betting provider William Hill and the IG Group, a digital trading and betting platform.”

What Ghana can learn from South Africa after rising cases of Sports Betting frauds

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Gambling of any form including Sports betting has ever been a luring concept for everyone willing to make some fast cash and this is also a fact that there are more unauthorized gambling places everywhere than the legitimated ones and for this reason, most of the immature gamblers often found themselves stuck in a trap. Although, rising cases of fraud in gambling are more prominent in third world States where government does not have any clear cut policy over gambling along with unavailability of authenticated gambling zones. If we look at recent happening in the gambling world, Ghana seems to be on boiling point after increased number of frauds happening in the State. Last Friday was one such day when, reportedly, a taxi driver protested against the fraud happened to him. He said to have been cheated by the sports betting company and his bet on a premier league game was not properly paid.

This is not one of its kind cases in Ghana, actually, there are plenty of complaints about such frauds which has reached to an alarming bell level now. If we look at a broad aspect of sports betting in this African region, there are only limited companies who are licensed to accept bets of various sports while there are hundreds of unauthorized gambling places carrying most of the betting revenue hence most of the complaints belong to them.

Moreover, betting industry in this region is not professional so as the gamblers are hence peoples get easily lured by the attractive advertisements promising tons of money at penny of investment that lures every youngster willing to make some fast cash which is the main reason betters are being cheated every other day. The taxi driver protest was another incident when Gaming Commission had to relook at the whole scenario and if they can correct this is a short span of time. However, if we look at what betting experts have to say about the problem being faced by gamblers in Ghana, they advised government body, who is authorized to regulate the activities of sports betting companies, should learn something from South Africa’ who was also facing similar problem some time ago.

While, there are many who still have a point that small betting zones charge lesser money and easily reachable to local aspiring gamblers hence they get stuck with them quite easily while big industry giants has lots of requirements that keep small or part time betters out of their reach which is something that needs to eradicated by the Gaming Commission

American Gaming Association along with industry giants back legalized Sports Betting across America

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Although Sports betting has ever been a popular recreational activity in America but there are still many States where it is still not regularized and New Jersey is one of them. There has been a demand across the board to regular this money wager practice to enhance legalized betting in the State. Until recently, State gambling patrons were the only ones to force Government to have a look at the prevailing situation where millions of dollars bets are being placed everyday using illegal zones and how it could benefit State if all the bets are routed through proper channel carrying State’s share as taxes. Now, The American Gaming Association has shown its thorough support to legalize Sports Betting across the county – not only in NJ. This move is powered by industry heavyweights like Caesars Entertainment, Borgata owners Boyd Gaming, and MGM Resorts International and they all cite their endeavor with illegal gambling zones available throughout the country without having any safety or decency to the gamblers. According to a recent survey, there are hundreds of complaints pending in district level about frauds being done by these unofficial betting zones and if all of them are put under a legal gambit, it could relieve the gamblers with some kind of State backing.

President and chief executive of the Washington-based trade group Geoff Freeman said while pushing forward their support “Is there a better approach? The law has failed. It’s time to take a fresh look. You will see us out there week in and week out. If heads are in the sand, the AGA is going to do its best to pull them out.” Looking at the vibes inside AGA where they have spent more than three hundred thousand dollars to convince all the concerns about the need of change in prevailing law and how they back New Jersey’s appeal which is pending at Third Circuit U.S. Court of Appeals.

Even though, there is a positive vibe in the air across country, but it is also true that any attempt to legalize sports betting inside NJ needs to be stronger than earlier attempt where it failed in the court of law against Major League Baseball, the National Football League, National Basketball Association, National Hockey League, and the NCAA since they cited any such enactment would violate 1992 federal ban.

Fantasy Sports Betting Reform, how it could make Illinois a better betting place

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Illinois has ever had a strong gamblers base, but fortunately or unfortunately, this gambling rich State could never stand itself in line with world’s best betting zones for its countless hidden zones where illegal practices used to take place with countless cases of fraud. But according to a Chicago Tribune report, Illinois Gaming Board is proposed to be appointed as the watchdog of this practice which is supposed to be regularized soon. Currently Gaming Board is responsible for smooth working of State’s casinos, horse tracks, and video machines and after the proposed enactment it would also take care of Fantasy Sports Betting making it one of the biggest in contemporary betting practices. Although, details of the proposed law are not yet revealed but according to few insiders, there would be a Operators’ fee which would be based on the revenue they make out of it, like, for revenue less than $100,000 per year, companies would have to a $500 application fee, while companies who are roaring over $10 million a year, would have to shell out $37,500 application fee to the State which will later be used for education funding.

Likewise, there would also be a 5% service tax to all operators having less than $1 million revenue while remaining would be charged with 22.5 percent tax. Talking about the new ruling and how it can ease the life of gamblers within the State, Mike Zalewski said, “My goal from the beginning has been to make Illinois a fun, safe and succesful place to play and operate fantasy sports contests. With one of the nation’s strongest set of protections and an appropriate tax and license fee structure, I think we’ve come up with a great package to meet my goal and will work hard to win the support of my colleagues in the legislature and the governor.”

Moreover, if we further look at other details of the Bill, it is not going to be an easy going for small operators since they need to go thorough a detailed background check before they are granted licenses which includes their history check and pending complaints against them. Moreover, new law would only capacitate over-21 players to place bets on Fantasy games which cuts out a major share of the gamblers since most of them are below that age. Anyways, let’s hope it gets a NOD from majority of House members to become a full-fledged law giving Fantasy Sports lovers a new life!

Fantasy Sports Betting could soon be a reality in Illinois

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Illinois gamblers have now a reason to smile for the possible addition to traditional betting practices: Fantasy Sports. Although it has been a long running form of money wager but until now it was not allowed legally, hence betters were forced to take services of hidden zones to place bets on their dream players/sides. The Illinois House has reportedly given its initial seal to legalization of Fantasy Sports Betting Yesterday; this would initiate the formal process to sanction this age old practice of money wager. Although, its future still lies in dark since Houses members are likely to oppose it, and according to close insiders, proposed law would forbid anyone under 21 year of age to place any bet; further, State would get the licensing fee based on to the revenue which could lure the lawmakers to make it a legal practice.

 

Fantasy Sports Betting

Sports Betting has gone over the sky in popularity over past few years for its innovative inclusions in the traditional form of placing money on happening of an event and one of its highly popular form is Fantasy Sports which is based on player’s or team’s real world performance but gamblers can build up their own team picking any player of their liking. It is like preparing your own dream team containing any player you want to be in and then you place your bets on their performance in any single or series of games in prescribed period of time.

 

Who’s in favor

Two of the biggest betting Industry giants DraftKings and FanDuel have long been trying to push this bill into a reality and they base their effort with growing illegal betting zones in the State where gamblers have no legal remedy and are being cheated every other day by small operators. Talking about the fate of this bill, Mike Zalewski, a Riverside Democrat sponsoring the Illinois bill, said, “I know this is a controversial bill. Constituents of ours play these games and regardless of whether we agree with their decisions to do so, we’re faced with the choice of deciding whether we want to protect them from the reality we know exists and make sure that they enjoy the games in a reasonable way.”

Moreover, Republican Rep. Ron Sandack, of Downers Grove, also added, “If I were granted a casino license, I don’t get to open up the shop and start letting gambling occur while the gaming board vets me. The vetting occurs first so that the operations are lawful, so that the people doing the gaming are lawful, so that the game isn’t rigged — all that occurs first. Then licenses are given. We’re doing this backwards and I don’t think that’s fair.”