Welcome to the August 2024 edition of GamingSoft’s iGaming News! This month, we bring you the latest developments from around the globe, highlighting significant regulatory changes, market expansions, and strategic moves within the iGaming industry. Let’s dive into the top stories making waves this month.
- UAE Introduces Its First Licensed Lottery: A Landmark Move in the Middle East
For the first time, the United Arab Emirates (UAE) is set to introduce a licensed lottery called the UAE Lottery. The Gaming Control and Regulation Authority (GCGRA) has granted the operational license to The Game LLC, marking a historic moment for the region.
As a predominantly Muslim country, where gambling is often met with resistance, this move is particularly significant. However, the UAE’s unique demographic, with only about 11.5% of the population being Emirati and the remaining 88.5% comprising expatriates, primarily from South Asia (India, Bangladesh, Pakistan), as well as Egypt and the Philippines, creates a distinct market environment.
With dwindling natural resources, the UAE has increasingly relied on tourism as a key economic driver. The establishment of a lottery and potentially other gambling options could serve as new attractions for tourists, thereby bolstering the economy.
- Illinois Implements a 40% GGR Tax Rate: Industry Reactions and Strategies
Illinois Governor has recently signed into law a 40% gross gaming revenue (GGR) tax rate, making it the second-highest in the United States, following New York’s 51%. This significant tax hike has prompted mixed reactions from major players in the market.
DraftKings, one of the largest online sports betting companies in the U.S., has announced plans to pass these costs onto customers starting January 1, 2025, to offset potential revenue losses. In contrast, Rush Street Interactive (RSI), a direct competitor, has quickly responded by declaring they will not implement a similar surcharge on their customers.
FanDuel, another leading player and the biggest competitor to DraftKings, has yet to announce its stance on this matter. Meanwhile, Circa Sports has stated it will not follow DraftKings’ approach, and both BetMGM and Caesars have refrained from making any statements about adjusting their pricing strategies in response to the new tax rate during their recent earnings calls.
This situation presents a complex landscape for operators in Illinois, as they navigate the high tax environment while trying to maintain customer loyalty and market share.
- MGM Resorts International Sets Sights on Brazil with BetMGM Launch
In a strategic move to expand its global footprint, MGM Resorts International is planning to launch its BetMGM platform in Brazil. This decision comes after Brazilian President Lula signed a series of laws aimed at advancing the legal online gambling and betting sectors in the country.
MGM has partnered with Globo Media Group, a major player in Brazil’s media industry, to jointly develop the market. However, before BetMGM can officially launch, MGM must obtain the necessary licenses and approvals from local gambling regulators. The launch is anticipated to occur in early 2025, setting the stage for MGM to tap into one of the fastest-growing markets in the iGaming industry.
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