The NFL has long been and will long be the center of the legalized sports betting universe. Even in a year with special scheduling (the NBA Finals in October, the Masters in November, etc.), the NFL still captures the spotlight.
This past week, though, the sports betting stage was set for massive deals, big revenue reports and an offshore operator looking to do right.
The latter topic is a lesson that by no means comes free, but more on that in a minute.
On to the Rewind:
Caesars agrees to purchase William Hill
Famed international legalized sports betting provider William Hill has new ownership.
Caesars has agreed to purchase the bookmaker for a whopping $3.7 billion in cash, a deal that is expected to close in the second half of 2021.
The two parties, of course, already share a US sports betting partnership. This acquisition, though, allows Caesars to help the partnership reach its maximum potential. The combined sports betting and iGaming vertical could generate up to $700 million in pro forma net revenue in the 2021 fiscal year.
To boot, Caesars could make a run at William Hill’s international assets, such as its gaming business overseas.
Naturally, Caesars can create a shared wallet for its sports betting and online casino customers while cross-selling its rewards program to 60 million customers. On top of it all, it gives Caesars access to markets it didn’t otherwise have.
5Dimes reaches illegal gambling operations settlement
It appears 5Dimes is ready to walk the straight and narrow. But it certainly cost the company a few bucks.
An investigation into illegal US sports betting operations, money laundering and wire fraud led 5Dimes to reach a $46.8 million settlement with the US Department of Justice.
As part of a settlement with the US Attorney’s Office Eastern District of Pennsylvania, 5D Holdings and owner Laura Varela — widow of Sean “Tony” Creighton, who was found dead in Costa Rica after he was kidnapped and murdered in September 2018 — will forfeit the illegally obtained gambling proceeds via 5Dimes’ offshore operations in Costa Rica.
According to a lengthy list of criminal activity laid out in the settlement, 5Dimes began accepting wagers and making payouts in 2011 and transferred nearly $47 million in proceeds “to attempt to hide the nature, location, source, and control of the funds.”
The company has made known its intention to enter the regulated US sports betting market once this investigation came to an end. No doubt, though, state regulators might hesitate to provide an entrance.
That said, 5Dimes has already incorporated 5D Americas LLC in Delaware, allowing Varela the “use of her assets or the assets of the 5Dimes brand to explore future options, including, but not limited to, re-constituting the 5Dimes brand to be licensed to conduct legal, regulated gaming activities in the US and internationally.”
According to Jeff Ifrah, Varela’s attorney, 5Dimes will now attempt to gain a legal operating license in New Jersey.
Post-PASPA betting revenue is now over $25 billion
Just over two years have passed since the US Supreme Court repealed the Professional and Sports Protection Act. Since then, legalized sports betting has boomed.
For decades, obviously, Nevada has been the only state in which bettors could legally place wagers in the United States. Now, with $475 million wagered there in August, the Silver State pushed the regulated US total handle past the $25 billion mark.
While New Jersey took over as the legal sports betting king in August, Nevada has driven the post-PASPA totals. Since the act went down in spring 2018, Nevada bettors have wagered over $10 billion, generating more than $600 million in revenue. This in comparison with New Jersey’s totals of $7.7 billion in handle and $532 million in revenue.
Only two other states have exceeded $1 billion in post-PASPA handle: Pennsylvania with $2.7 billion and Indiana with over $1 billion.