DraftKings acquires Simplebet, Aviator wins $330m in damages, BlueBet exits US

This week in the gambling industry has been eventful, with plenty of developments to observe and discuss. The industry continues to experience rapid changes. Several high-profile lawsuits reached rulings, as businesses navigate the challenges of staying competitive in the United States’ dynamic yet increasingly cut-throat betting market.

Business & investment

The first news of the day has to do with BlueBet’s decision this week to withdraw from the market in the United States. The company said that its strategic reviews of existing businesses in several states have found it better to pull back from the market, resulting in savings of up to $5.42m annually.

Originally, BlueBet was decided to stay on, but changing business equations and its acquisition of betr in Australia has made the operator think better of it and focus fully on its local market in Australia which is facing regulatory headwinds.

Many companies have withdrawn from the US market if not fully than at least partially because of the duopoly established by FanDuel and DraftKings. Both companies have been keen to keep the status quo. DraftKings has used its war chest this week to buy out Simplebet, a micromarket betting platform.

The company did not disclose the financial details of the deal but is expected to consolidate its technological platform through the addition of Simplebet’s time-tested offer. Simplebet was launched in 2018 and sought to introduce a new betting model that focused on "the moment" and has been particularly popular with younger demographics.

In the meantime, Kambi Group and Rush Street Interactive has signed their second partnership extension focusing on the former’s sports betting platform and solutions. The new multi-year partnership will allow the companies to stay competitive and continue to advance their respective offers in target and high-value markets.

Regulatory & legal

Much has happened on the regulatory front this week. For starters, Aviator LLC has won a case against Spribe OÜ and Adjarabet, with the Court of First Instance in Georgia awarding the company $330m in damages.

Aviator LLC alleged that Spribe had registered its hugely popular crash game "Aviator" in bad faith and that it had infringed on the company’s overall copyrighted materials. Adjarabet has seen Spribe’s Aviator drive a strong bulk of its revenue over the past years.

Apart from awarding damages to Aviator LLC, the court has ordered Spribe to change the name of its game and has prohibited Adjarabet from calling the game "Aviator." It is not yet clear whether Flutter Entertainment, which owns Adjarabet or Spribe would appeal.

In the meantime, a court in Austria has awarded a player €2.8m they had lost while playing at bet-at-home between 2013 and 2017. The Supreme Court of Austria sided with the player, ruling that the player was a gambling addict and "legally incapacitated" to play, and the onus was on bet-at-home to stop them from acting on those impulses.

The player was playing at a Malta subsidiary, bet-at-home Entertainment Ltd, which has since shut down, but the court established that under tort law, bet-at-home.com Internet Ltd, another Malta subsidiary of the German company, would be liable to repay the player.

In the meantime, the Australian Medical Association has said that anything short of a full ban on gambling advertisements would be an inefficient way of curbing the country’s issues with excessive gambling.

Australia is debating whether to completely prohibit and ban gambling advertisements. The idea has been gathering steam in public opinion, among politicians, and celebrities, but the Albanese government remains reluctant to act.

The UK Gambling Commission (UKGC) has published a new blog update in which it spoke about the upcoming affordability checks pilot in the country. Director of Major Policy Projects and Evaluation Helen Rhodes outlined the importance of ensuring that these safeguards are put in place.

She said that up until now, players who were incapable of making decisions about their gambling had been spending amounts that they could ill afford. Rhodes, however, acknowledged that the UKGC is committed to making the process frictionless so that regular players can continue to play as usual. This will now be tested in the pilot period.

Responsible gambling

On the responsible gambling front, there have been several major developments this week. First, Australia’s self-exclusion program, BetStop, has celebrated its first full year of operation. The program has reached 28,000 registrations, with many young people – defined as aged 30 or under – now opting in the program as well.

Overall, the Australian Communications and Media Authority has been happy with these numbers, as the unified self-exclusion program demonstrates Australians’ desire to be excluded. In related news, the American Gaming Association has found that attitudes towards sports betting and gaming are warming up in the United States.

The majority of people now has a favorable view of gambling companies in the communities they are based in, and more people are saying that the industry is committed to promoting responsible gambling messages.

The voice of the industry

This week, we reached out to Kenneth C. Wilbur, Professor of Marketing and Analytics at the Rady School, who co-authored the "Online Gambling Policy Effects on Tax Revenue and Irresponsible Gambling" Our conversation focused on finding out the pillars of good policy when it comes to gambling, those that are based on empirical research and solid data to help sort things out as Professor Wilbur puts it. Find our full conversation with Professor Wilbur here.

In our recent interview with Evive founder and CEO Sam DeMello, we dug deeper into how the company helps players understand the broader implications of gambling that go beyond simple financial harm, and how the platform is seeking to enhance responsible gambling in a way that helps consumers develop a healthy relationship with their gambling hobby. Read our full conversation with DeMello here.

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