Mohawk Council of Kahnawà:ke, iGaming Ontario get their (2) days in court
The hearing for the legal challenge of the province's competitive sports betting and igaming industry wrapped up yesterday. And, the American Gaming Association points to another record year.
In this issue:
Off to court for iGaming Ontario and Mohawk Council of Kahnawà:ke
Another record year for U.S. commercial gambling
Join us on the Gaming News Canada Show
Hearing concludes for iGO vs. MCK
The folks logging billable hours on behalf of iGaming Ontario and the Mohawk Council of Kahnawà:ke and in front of Ontario Superior Court Judge Lisa Brownstone only needed a couple of days to make their respective arguments in civil proceedings by the council against the province’s competitive sports betting and igaming industry.
As we were discussing the current state of Ontario’s health-care system with visiting daughter The Nurse late yesterday afternoon, this X post from Covers gambling industry beat writer Geoff Zochodne landed:
From Zochodne’s coverage of yesterday’s happenings in a downtown Toronto courtroom:
Wednesday wound up being the end of what was supposed to be a three-day hearing of the legal challenge. Justice Brownstone reserved her decision on the application, meaning it will come at a later date.
iGaming Ontario lawyer Scott Hutchison emphasized yesterday it is the government agency “conducting and managing” the province’s regulated gambling marketplace, not the licensed operators, which is the council’s contention.
“The conductor of an orchestra never touches an instrument,” said Hutchison, referring to the contracts iGO execute with private operators. “But the conductor is, at the end of the day, responsible for the symphony.”
Another Hutchison quote, as reported by Zochodne:
“This is not an agreement between equals. This is a one-sided document in terms of control and authority in relation to what these agents will do on behalf of the principal.”
From Zochodne’s Day 1 coverage (we recommend following Covers’ gambling industry beat writer on the social media platform formerly known as Twitter):
. . . . counsel for the Quebec-based Mohawk Council of Kahnawà:ke (MCK) did not exactly agree with an Ontario government agency comparing the competitive market for online gambling to the province's model for running brick-and-mortar casinos.
That model, a recent factum for iGaming Ontario (iGO) stated, involves the provincially owned Ontario Lottery and Gaming Corp. (OLG) contracting with private-sector entities (such as Caesars Entertainment Inc.) to run physical casinos. This, iGO claimed, is similar to what it does with online gambling operators, who sign a contract with the agency before they can offer their products in the competitive market.
But no court has really dug into how OLG "conducts and manages" casinos, and there is no analogy to online gambling, according to legal representation for the MCK, an Indigenous government organization with longstanding ties to the internet gaming industry.
Daniel Trujillo of GME Law was also in the courtroom to file posts to the legal firm’s blog, including this passage:
The MCK wasted no time in laying out its case, asserting that Ontario’s iGaming scheme is illegal and unconstitutional because the province’s mandated role in “conducting or managing” online sports betting has been delegated to private operators. The MCK took its time to highlight how private operators, rather than iGO, are the ones who have substantial control over crucial aspects of the gaming scheme. This includes compliance obligations, being responsible for marketing, operating their platforms, executing payment processing agreements with providers, having their boards of directors make key decisions, and being the main beneficiaries of the scheme’s revenue proceeds, among other reasons.
Amidst MCK’s monologue, the judge interjected with probing questions, seeking clarity on the heart of the matter. Could iGO potentially subcontract with private operators without contravening the current rules? The MCK gave a quick and sharp response, “Yes, but they cannot subcontract or delegate all functions. Private operators are both conducting and managing, yet this is a function that cannot be shared [by iGO]”. Another question followed this explanation: if what the MCK was arguing were to be true, would that mean that iGO would have to fully perform absolutely all operations and quirks of the iGaming scheme?
There’s no date set for Brownstone’s decision. We will discuss the two-day hearing on LinkedIn Audio this afternoon.
American Gaming Association touts another record annum
For our subscribers on this side of the border who may have extended their long weekends by one more day, the American Gaming Association made public Tuesday morning its summary of the commercial gaming industry. Among the highlights, included in the AGA’s news release (also, a replay of the webinar is available by clicking/tapping here).
Revenue reached a 12-month record of $66.5 billion (Amarican bucks) in 2023, surpassing the previous high of $60.5 billion from the previous year. It’s the third consecutive record revenue year for commercial gaming in the U.S. of A.
There was unprecedented quarterly revenue of $17.4 billion in the fourth quarter, led by $6.2 billion in revenue for December, the highest-grossing month in industry history.
Online gaming made up nearly one-quarter (24.7%) of commercial gaming revenue in 2023, a new annual high.
Also:
Your inquisitive correspondent joined the association’s state-of-the-industry webinar, and then a webinar for members of the fourth estate to deliver a few takeaways to our loyal GNC consumers:
AGA president Bill Miller was asked about his appearance on a CBS 60 Minutes feature on the growing American gambling industry: “The media is very important in helping to tell the story of our industry. I did a 90-minute interview and they used one minute (in the program). Was it the best articulation of our industry? No.”
On the ongoing push to regulate online gaming beyond the current six states, Miller said: “We’re trying to establish consensus on what igaming looks like and where it fits. During COVID, every bricks-and-mortar casino that had a digital option used it as a lifeline. Is (online gaming) cannibalization (of traditional casinos) or can it be synergistic. There are still differences in opinion on that.”
On questions/concerns around the industry’s responsible gambling initiatives, Miller responded: “Our commitment to RG is real, and it’s deep. There are more resources, more funding, more support being provided to problem gambling programs than ever before.”
And, from Miller on looking ahead to 2024: “There was a great deal of concern in the lead-up to 2023 around the economic uncertainty, (but) the industry has overperformed. There’s some optimism but also some realization that we’re not going to continue to have rapid growth every year.”
We will strive to be patient people in awaiting the release of iGaming Ontario’s second full fiscal year results sometime in April.
An invite to join us on the Gaming News Canada Show
Despite the short week, you can expect another lively discussion on the latest news, notes and quotes from the business of sports wagering and gaming when the Gaming News Canada Show gang reconvenes on LinkedIn Audio this afternoon.
As usual, the first bon mots drop shortly after 1 ET. And in case you missed last week’s show:
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On the Home Front
888 Holdings has unveiled in Ontario a new safe-gambling Control Centre program.
GeoComply is featured by The Globe and Mail in an ROB Magazine piece on the Vancouver company by Simon Lewsen.
We were watching a Professional Women’s Hockey League game on Sportsnet over the Family Day weekend when this commercial popped up from this unlicensed operator in Ontario:
Strive Gaming head honcho Max Meltzer did the Q and A thing in the latest Pulse online magazine about the company’s focus on North America.
As Jennifer Jones makes her final appearance as a skip in the Scotties Tournament of Hearts this week, Mark Keast writes for Gambling.com on the lack of curling offerings by operators in Ontario almost two years after the launch of regulated sports wagering.
Jill Dorson of Sports Handle brought her American audience up to speed on the AGCO’s pending changes to the rules around the use of athletes in advertising and marketing campaigns.
Playing IGT’s Powerbucks game resulted in $1 million windfalls for a couple of players in our home and native land.
Some items of note from OLG comms guru Tony Bitonti around ProLine+ play over the past week: A Coyotes-Avalanche game was the most popular sporting event among PL+ customers. A retail ProLine customer turned a $2 bet on a nine-pick soccer/hockey parlay into a $2,774 win. Finally, an online customer correctly picked the over/under in a dozen NCAA basketball games, parlaying a $5 bet into a payout of $16,140, prompting us to bring back Arnold:
Classified (Jobs) Information
GeoComply has a cornucopia of career opportunities across North America at the moment, including openings in Montreal, Toronto and Vancouver. Among them is a Graphic Designer.
EveryMatrix is hiring a Chief Product Officer.
Ontario licensee Fitzdares has openings for a Membership Concierge, a Graphic Designer, and a Safer Gambling Officer.
Hard Rock Digital’s UK enterprise is searching for a Director - Compliance Assurance, and is on the lookout for a Senior Privacy Governance Analyst.
Rush Street Interactive has a remote opportunity for a Commercial Manager.
OpenBet wants to bring on board a Compliance Analyst for the EMEA region.
Twitch is in hiring mode for a Director, Communications.
SIS Ltd. has an opening in London for a Senior Competitive Gaming Trader.
BCLC has a posting for a Manager, Partnerships & Community Investment. The corp also has some positions to fill on its board of directors.
An Ontario operator is in hiring mode for a Country Manager.
Among the openings at Manitoba Liquor & Lotteries is a full-time Business Solutions Architect.
The American Gaming Association is seeking a Manager, Communications & Marketing.
LeoVegas Group has a Malta-based position available for a Senior Affiliate Manager.
Gaming Laboratories International is on the hunt for a Commercial Business Analyst.
At Incline Bet, they’re looking for a Senior User Acquisition Analyst.
BV Group has a Head of Affiliates opening in Gibraltar, and is also hiring a Senior Accounts and Treasury type. Oh yeah, it also needs a Senior Marketing Executive.
The Analytics team at DraftKings is looking to add new members.
TalentBet is recruiting a Dutch-speaking Responsible Gaming Officer.
Everi Holdings has an opportunity in Chennai, India for an Accountant.
OddsMatrix is in the market for a Commercial Director.
Underdog Fantasy is searching for a Senior Product Manager - Payments.
EQL Games has a bunch of job openings coming up this week.
FairPlay Sports Media is seeking freelance SEO Content Writers and Affiliate Content Writers.
betPARX is hiring a Quality Assurance Engineer.
Fnatics is on a seek-and-employ mission for an Esports Performance Chef to be based in Berlin.
Seattle-based Misfits Gaming Group is looking for a Game Producer.
Red Bull’s business in Germany has an opportunity for a (Junior) Gaming Event Marketing Manager.
The Canadian Centre for Ethics in Sport is in hiring mode for an Athlete Services Officer.
U.S.-based Excel Sports Management has a plethora of postings at the moment, including an opening for a Director, Brand Marketing.
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