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  • Codere Online Faces Nasdaq Delisting as Auditor Change, Securities Fraud Allegations Cloud Outlook

    Codere Online Faces Nasdaq Delisting as Auditor Change, Securities Fraud Allegations Cloud Outlook

    Codere Online, a key player in the online gaming sector, finds itself at the centre of a storm. The company is facing serious challenges that include an auditor switch, allegations of securities fraud, and the looming threat of being delisted from Nasdaq. As the January 16 appeal hearing approaches, the stakes couldn’t be higher.

    Auditor Resignation Sparks Turmoil

    Marcum LLP, Codere Online’s auditor, stepped down on December 20, citing insurmountable challenges in completing necessary audit procedures. The crux of the issue? Deficiencies in IT general controls across third-party platforms and a lack of internal financial reporting controls. This resignation underscores long-standing structural problems at Codere Online, which had already disclosed weaknesses in internal controls during 2021 and 2022.

    In response, Codere moved quickly, appointing MaloneBailey, LLP as its independent auditor on December 31. MaloneBailey is now tasked with handling audits for fiscal years 2023 and 2024, a crucial step as the company works to restore investor confidence.

    Internal Weaknesses Fuel Ongoing Struggles

    Codere’s internal control problems are not new. The company has admitted to lacking technical accounting expertise and robust oversight of outsourced processes, including cybersecurity measures managed by its parent company, the Codere Group. These systemic issues have cast a long shadow over its financial integrity and operational reliability.

    The company’s troubles have been compounded by its failure to file its Form 20-F for 2023, which led to a delisting notice from Nasdaq. Codere’s survival on the exchange now depends on the outcome of its January 16 appeal. Should the extension be granted, the company would have until May 12, 2025, to file its overdue reports for fiscal years 2023 and 2024. The clock is ticking.

    Stock Price Takes a Hit Amid Investor Anxiety

    Investor confidence in Codere has wavered. Over the past month, its stock price has fallen 20%, trading at $6.38 as of the latest session. The decline adds to the company’s challenges, though it’s worth noting that Codere had an impressive run in 2024, with shares climbing 113.95% by the end of the year. This sharp contrast reflects the volatility and uncertainty surrounding its current predicament.

    Law firm Pomerantz LLP has further shaken investor confidence by launching an investigation into potential securities fraud and unlawful business practices at Codere Online. The investigation was announced following Marcum’s resignation, which led to a 3.84% drop in Codere’s share price on the same day.

    Can Codere Weather the Delisting Threat?

    A potential Nasdaq delisting looms large over Codere’s future. Analysts like Jeffrey Stantial from Stifel remain cautiously optimistic, expressing hope that the company could meet its May 2025 deadline for filing the overdue reports. However, the timeline is tight, and the challenges are significant.

    A delisting would push Codere’s stock to over-the-counter markets, which are less appealing to institutional investors. This move would likely reduce the company’s valuation and damage its reputation in the highly competitive gaming sector. Codere’s current market capitalization stands at $306.67 million, but the loss of its Nasdaq listing could trigger a sharp decline.

    Key Issues at a Glance

    Here’s a snapshot of Codere Online’s pressing issues:

    • Auditor resignation: Marcum LLP cited deficiencies in IT and internal controls.
    • New auditor: MaloneBailey, LLP has been appointed for fiscal years 2023 and 2024.
    • Nasdaq compliance: Failure to file Form 20-F has led to a delisting notice, with a crucial hearing set for January 16.
    • Stock performance: Shares have dropped 20% in a month but remain significantly up year-over-year.
    • Legal troubles: A class-action investigation is underway, further complicating the company’s outlook.

    What’s Next for Codere?

    Codere Online’s ability to navigate this challenging period will likely determine its future in the online gaming industry. The Nasdaq hearing on January 16 is pivotal. If Codere secures an extension, it must move swiftly to address its internal weaknesses and complete its financial filings. If not, the fallout from a delisting could be severe, both financially and reputationally.

    For now, analysts and investors alike are watching closely, hoping for signs that Codere can turn its fortunes around. The company’s ability to implement stronger controls, rebuild trust, and meet regulatory requirements will define its next chapter.

  • Ukraine Shakes Up Gambling Industry, Axes Regulatory Body Amid Corruption Claims

    Ukraine Shakes Up Gambling Industry, Axes Regulatory Body Amid Corruption Claims

  • DraftKings Rolls Out Sportsbook+ Subscription in New York

    DraftKings Rolls Out Sportsbook+ Subscription in New York

    DraftKings has unveiled its latest offering, Sportsbook+, a subscription service tailored for bettors in New York. Priced at $20 per month, this service promises enhanced odds on parlay bets, aiming to amplify the betting experience for users while boosting profitability for the company.

    What Sportsbook+ Brings to the Table

    Subscribers to Sportsbook+ receive stepped-up odds boosts for parlays, creating the potential for significantly higher payouts. For parlays with individual legs of -500 odds or narrower, the profit boost starts at 10% for two-leg parlays and scales up to a remarkable 100% for those with 11 or more legs. This effectively doubles the potential payout, which is an enticing prospect for seasoned bettors.

    But the real draw? Unlimited boosts. Unlike traditional promotions in the U.S. sports betting market, where limits are often imposed, this service provides bettors with a unique edge—an appealing factor for regular users.

    DraftKings explained, “The subscription service was designed to offer our customers an enhanced fan experience, creating more excitement and value to our extensive parlay offering.”

    A Strategic Move Towards Parlay Dominance

    DraftKings’ focus on parlays is no accident. Parlays, which require all legs to hit for a payout, offer sportsbooks higher profit margins compared to single bets. CEO Jason Robins has repeatedly emphasized this as a cornerstone of the company’s strategy.

    During a Q2 earnings call, Robins stated, “Certainly, we feel like there’s a ton of room to increase our parlay mix and increase our average leg count still. The team is very focused on that.”

    This focus has already shown results. The company’s December 2023 launch of a progressive parlay product, which offers partial payouts for near-misses, saw notable success. Customers appreciated the balance of risk and reward, driving engagement and boosting structural hold percentages year over year.

    CFO Alan Ellingson reinforced this during the Q3 earnings call, noting, “Structural sportsbook hold percentages increased year-over-year as customers continued to enjoy our parlay offerings.”

    Odds Boosts: A Key to Retention

    Odds boosts are not just about attracting bettors; they play a vital role in retaining them. Offering consistent, enhanced returns keeps users engaged and reduces churn in a market where competitors vie for attention.

    Sportsbook+ goes further by eliminating caps on boosts, a move that positions DraftKings to stand out. This approach not only appeals to heavy users but also builds long-term loyalty in an increasingly crowded industry.

    A Calculated Bet on High-Margin Customers

    The introduction of Sportsbook+ aligns with DraftKings’ broader vision of fostering loyalty while generating higher-margin wagers. By targeting a specific customer base—those who frequently bet on parlays—the service is tailored to drive maximum value for both users and the company.

    Key features of Sportsbook+:

    • Stepped-Up Odds Boosts: Start at 10% for two-leg parlays, rising to 100% for parlays with 11+ legs.
    • Unlimited Usage: No caps on the number of boosts, an uncommon feature in the U.S. market.
    • Exclusive Access: Available to select eligible customers in New York for $20 per month.

    The Bigger Picture

    DraftKings’ move to launch Sportsbook+ demonstrates a keen understanding of market dynamics. As sportsbooks compete to retain and grow their user base, innovative offerings like this one help differentiate brands and provide added value.

    The focus on parlay bets highlights an industry-wide shift towards products that enhance engagement while maintaining profitability. With Sportsbook+, DraftKings is banking on the appeal of bigger payouts, unlimited boosts, and exclusive perks to stay ahead in the competitive betting market.

    As the company continues to refine its offerings, Sportsbook+ could serve as a blueprint for subscription-based services in other states, marking another step in DraftKings’ expansion strategy.

  • ASEAN Gaming Summit Set to Make a Grand Return in Manila

    ASEAN Gaming Summit Set to Make a Grand Return in Manila

    The ASEAN Gaming Summit is back for its 7th edition, with registrations now open for the March 2025 event at Shangri-La The Fort, Manila.

    A Global Gathering for the Gaming Industry

    The ASEAN Gaming Summit, organized by Asia Gaming Brief, has firmly established itself as one of the premier events in the international gaming calendar. Scheduled for 17-19 March 2025, the three-day conference will take place at the prestigious Shangri-La The Fort in Manila, Philippines.

    The event builds on the success of its 2024 edition, which saw a record turnout of nearly 1,600 participants representing diverse countries, including the Philippines, Australia, Macau, Germany, and beyond. With this year’s focus on innovation and adapting to shifting regulatory landscapes, the summit is expected to draw an even broader audience of gaming professionals, policymakers, and industry leaders.

    Spotlight on Changing Regulations and Emerging Markets

    Regulatory changes across ASEAN countries will be front and centre at this year’s summit. The conference will provide a platform for stakeholders to explore the challenges and opportunities presented by the region’s evolving legal frameworks. As consumer trends shift and new gaming technologies emerge, industry leaders will share insights into navigating these changes across both remote and in-property gaming sectors.

    Discussions will focus on diverse topics such as:

    • The implications of regulatory updates across key ASEAN markets.
    • Emerging technologies in gaming, including remote gaming innovations.
    • The evolving preferences of Asia’s gaming consumers and their global impact.

    The summit offers a rare opportunity for stakeholders from various disciplines to exchange ideas and collaborate on shaping the future of the gaming industry.

    Asia Gaming Awards: Celebrating Excellence

    A key highlight of the conference will be the Asia Gaming Awards 2025, scheduled for Tuesday, 18 March. This glamorous ceremony celebrates outstanding achievements within the gaming sector, recognizing excellence among industry peers.

    The awards bring together some of the most prominent names in gaming, fostering a sense of community and inspiring innovation among participants. With categories ranging from operational excellence to groundbreaking technology, the awards are highly anticipated by attendees.

    Strong Support from Industry Leaders

    Asia Gaming Brief has expressed gratitude to DST Gaming, the lead sponsor for this year’s summit, along with other longstanding sponsors who have supported the event over the years. Their contributions reflect the industry’s commitment to driving innovation and collaboration in the gaming space.

    Organizers have also announced that Early Bird tickets are now available for a limited time, allowing participants to secure their spots at a discounted rate. Given the summit’s reputation and last year’s overwhelming attendance, these tickets are expected to sell out quickly.

    A Glimpse of What to Expect

    For those looking to join, here’s what the ASEAN Gaming Summit promises to deliver:

    • Networking opportunities: Meet policymakers, regulators, and industry peers from over 20 countries.
    • Engaging panels and keynotes: Learn from experts about the latest trends and strategies in gaming.
    • Exclusive industry insights: Stay ahead of the curve with actionable takeaways on regulatory and market trends.
    • Celebratory moments: Be part of the Asia Gaming Awards ceremony, a night dedicated to industry achievements.

    The ASEAN Gaming Summit continues to be a beacon for innovation and collaboration within the gaming industry. As it returns for its 7th edition, it offers an unmatched platform for participants to exchange ideas, foster connections, and shape the future of gaming across the ASEAN region and beyond.

  • Philippines Intensifies Crackdown on Illegal POGO Workers, Targeting Over 11,000 Foreign Nationals

    Philippines Intensifies Crackdown on Illegal POGO Workers, Targeting Over 11,000 Foreign Nationals

    The Philippine government is ramping up its efforts to deport more than 11,000 foreign nationals tied to the now-banned Philippine Offshore Gaming Operator (POGO) industry. Declared illegal aliens, these individuals are the focus of a nationwide manhunt by the Bureau of Immigration (BI). The crackdown underscores the administration’s firm stance on eradicating illegal activities linked to the controversial gaming sector.

    A Nationwide Effort to Enforce Compliance

    Bureau of Immigration Commissioner Joel Anthony Viado shared striking figures on the matter. Before the ban, 33,863 POGO workers were officially registered under the Philippine Amusement and Gaming Corporation (PAGCOR). While 22,609 of these workers left the country before the December 31 deadline, 11,254 remain in the Philippines, defying the government’s directive.

    Viado did not mince words when addressing the situation: “These foreign nationals who continue to disobey this will be arrested, deported, and blacklisted. No exceptions.” He issued a stern warning to companies employing these individuals, urging them to cooperate with authorities. Those found sheltering or concealing illegal workers risk being charged with harboring illegal aliens.

    • Registered POGO workers (before ban): 33,863
    • Workers who downgraded visas: 24,779
    • Workers who left the country: 22,609
    • Workers remaining unlawfully: 11,254

    Coordinated Action Across Agencies

    The Presidential Anti-Organized Crime Commission (PAOCC) has echoed the call for strict enforcement, particularly against property owners enabling illegal POGO operations. Gilbert Cruz, PAOCC’s Executive Director, highlighted a troubling shift in these operations. Operators are downsizing into discreet setups in walled compounds or business districts frequented by foreign nationals, complicating detection efforts.

    Cruz also warned property owners that premises used for illegal activities are subject to seizure under criminal forfeiture laws. “Those who knowingly support illegal POGO operations will not be spared,” he stated.

    To further tighten the noose, the Department of the Interior and Local Government (DILG) has instructed local government units (LGUs) to issue “No POGO” certificates by the end of January. This certification process involves stringent inspections of residential and commercial properties, including checks on permits for occupancy, electricity, and fire safety compliance.

    Spotlight on Fraudulent Citizenship Documents

    Another concerning dimension of the crackdown is the use of fraudulent birth certificates by some foreign nationals to obtain Filipino citizenship. Senator Sherwin Gatchalian has emphasized the importance of nullifying these fake documents, calling it a critical step in restoring the integrity of the country’s civil records.

    The Office of the Solicitor General (OSG) has committed to revoking fraudulent documents and seizing assets acquired illegally by these individuals. “This is a matter of national security and economic fairness,” an OSG representative noted, reinforcing the government’s resolve.

    Challenges in Tracking Illegal Workers

    The pursuit of illegal POGO workers has not been without obstacles. Authorities report that operators have become increasingly elusive, adopting sophisticated methods to evade detection. This includes the use of high-security compounds and blending into dense urban districts with large expatriate populations.

    Despite these challenges, the government’s multi-agency approach appears well-coordinated:

    • BI: Spearheading arrests and deportations.
    • PAOCC: Cracking down on property owners aiding illegal operators.
    • DILG: Enforcing “No POGO” certificates through LGUs.
    • OSG: Targeting fraudulent documents and illegal assets.

    A Broader Push Against Illegal Gambling

    The POGO ban is part of a broader effort by the Philippine government to combat illegal gambling and its associated criminal activities. Authorities argue that the industry, while initially promising economic benefits, has been marred by scandals, including money laundering, fraud, and human trafficking.

    The crackdown sends a clear message: the Philippines will not tolerate illegal activities that undermine public trust, strain local resources, or jeopardize the nation’s international reputation. As enforcement continues, stakeholders are urged to cooperate or face severe consequences.

  • Former Pace-O-Matic Compliance Director Indicted on Racketeering Charges

    Former Pace-O-Matic Compliance Director Indicted on Racketeering Charges

    A former Pennsylvania State Police officer turned compliance director for a prominent skill games manufacturer is facing serious legal trouble. Rick Goodling, once the head of Pennsylvania’s gambling unit, is accused of exploiting his authority to promote the spread of controversial gambling machines while securing financial benefits for himself.

    Allegations of Corruption and Abuse of Power

    Pennsylvania prosecutors have charged Goodling, who served as national compliance director for Georgia-based Pace-O-Matic until 2023, with racketeering and related offenses. According to reports, he pocketed over $500,000 in bribes by facilitating illegal gambling operations and suppressing complaints about unlawful slot machines.

    Goodling allegedly used his position to help distribute Pace-O-Matic’s skill games to operators who violated company policies, enabling their continued presence in the state despite bans. The allegations extend to aiding Deibler Brothers Novelty Co., a distributor barred by Pace-O-Matic for offering illegal slots alongside the company’s machines. Prosecutors claim Goodling ensured the banned distributor continued accessing Pace-O-Matic’s devices through covert agreements.

    The Investigation Unveiled

    The charges follow a prolonged undercover investigation led by Pennsylvania State Police. A detective embedded within Pace-O-Matic’s compliance team for several years uncovered what prosecutors describe as an “illegal scam to obtain large sums of money from gambling activities.”

    Goodling’s compliance team, ironically designed to uphold regulations, reportedly turned into a network of collusion. Prosecutors claim Goodling manipulated internal complaints systems to bury grievances lodged by other operators. Despite his efforts to maintain secrecy, whistleblowers approached federal and state authorities, sparking the undercover operation that ultimately led to his indictment.

    Deibler Brothers Employees Also Charged

    Goodling is not alone in facing legal repercussions. Three employees from Deibler Brothers Novelty Co. were also charged for their alleged role in distributing illegal gambling machines across 15 Pennsylvania counties. The complaint outlines how Goodling worked with others to circumvent bans imposed on the distributor, ensuring a steady supply of skill games despite the company’s infractions.

    Skill Games and the Legal Grey Area

    At the centre of the controversy lies the ongoing debate about skill games themselves. These machines, which manufacturers argue are legal because they involve elements of skill, operate in a grey area of Pennsylvania law. Lawmakers have been divided, with some pushing for regulation and taxation while others seek outright bans. For now, the devices remain legal but contentious.

    Pace-O-Matic is Pennsylvania’s largest supplier of skill games, making the charges against its former compliance director a significant blow. The company insists it had no knowledge of or involvement in Goodling’s alleged misconduct.

    Pace-O-Matic Responds to the Charges

    Pace-O-Matic expressed dismay over the allegations. In a statement to the Pennsylvania Capital-Star, a spokesperson said the company was “deeply troubled” by Goodling’s actions and confirmed his dismissal following the discovery of the investigation in late 2023.

    The company emphasised its cooperation with law enforcement, adding, “While we are monitoring the situation, law enforcement has assured us that Pace-O-Matic is not involved in or connected with any of the alleged actions or charges facing Mr. Goodling.”

    Case Summary Table:

    Key Details Information
    Defendant Rick Goodling
    Former Role National Compliance Director, Pace-O-Matic
    Charges Racketeering, bribery, related offenses
    Accusations Taking $500,000 in bribes, enabling illegal gambling
    Investigative Lead Pennsylvania State Police
    Co-Defendants Three employees from Deibler Brothers Novelty Co.
    Impact on Pace-O-Matic Company claims no connection to alleged crimes

    The case underscores the challenges of regulating skill games, a divisive topic in Pennsylvania’s gaming landscape. As investigations continue, the legal and ethical scrutiny surrounding skill gaming manufacturers is likely to intensify.

  • MGM’s BetMGM Platform Poised to Define 2025 Growth Strategy

    MGM’s BetMGM Platform Poised to Define 2025 Growth Strategy

  • Colombia’s Casinos and Bingos Funnel Over $79 Million to Health System in 2024

    Colombia’s Casinos and Bingos Funnel Over $79 Million to Health System in 2024

  • Las Vegas Locals Gaming Market to See Modest Growth in 2025, Deutsche Bank Predicts

    Las Vegas Locals Gaming Market to See Modest Growth in 2025, Deutsche Bank Predicts

    The Las Vegas locals gaming market is on track for modest growth in 2025, buoyed by new developments and tempered by economic challenges, according to Deutsche Bank’s year-end analysis. The report paints a mixed picture, with growth opportunities tempered by operational headwinds, including rising costs and softer same-store revenue trends.

    Durango Casino: A Double-Edged Sword

    Durango Casino & Resort, which opened in late 2023, has been a standout performer, becoming a key driver of market activity. Deutsche Bank projects the property to generate $160 million in EBITDAR in 2024, alongside an estimated $260 million in gross gaming revenue. However, the casino’s success has created ripples in the market.

    • Same-store gaming revenue has declined by 3% year-to-date through October.
    • Market-wide EBITDAR for 2024 is expected to drop by high single digits compared to 2023.

    The cannibalization effect, where new properties pull revenue from existing ones, is contributing to this slowdown. Analyst Carlo Santarelli emphasized that while Durango has outperformed expectations, its broader impact is a cautionary tale for market dynamics.

    Post-Pandemic Growth and Workforce Trends

    Since 2019, the locals market has experienced robust recovery, with gaming revenue growing at an impressive 5.1% compound annual growth rate (CAGR). This outpaces workforce growth, which has been sluggish at just 0.9% CAGR.

    Interestingly, gaming revenue per worker rose by 4.2% over the last 12 months. Santarelli attributes much of this to Durango’s success but warns of potential challenges in 2025 due to slowing workforce growth and tougher year-over-year comparisons.

    Operators’ Strategic Moves for Growth

    Major operators in the locals market, including Boyd Gaming and Red Rock Resorts, are focusing on capital investments to sustain and grow revenue streams.

    Boyd Gaming

    • Renovations at The Orleans and Suncoast are aimed at boosting non-gaming revenue.
    • Suncoast’s overhaul includes a new food hall and expanded meeting spaces.

    Red Rock Resorts

    • Undertaking a $53 million renovation at Sunset Station, causing a $5.4 million EBITDA impact.
    • A $150 million room remodel at Green Valley Ranch is expected to disrupt $11.5 million in EBITDA but yield benefits in 2026.

    Golden Entertainment

    Golden Entertainment, meanwhile, is struggling to keep pace. The operator’s stock performance lagged in 2024, and its market share has declined compared to peers.

    Managing Costs in a Challenging Environment

    Operators are taking a cautious approach to expense growth after the sharp increases seen in 2022. Labor, insurance, and energy costs remain persistent challenges. Santarelli praised the operators’ ability to control costs while adapting to a softer revenue environment.

    “Margins are likely to hold steady with modest revenue growth in 2025,” he said, adding that profitability will depend heavily on revenue performance.

    Mixed Non-Gaming Revenue Outlook

    The non-gaming revenue picture for 2025 is a mixed bag:

    • Boyd Gaming’s renovations could boost revenue in the near term.
    • Red Rock Resorts’ disruptions from renovations might weigh on performance, with benefits likely materializing in 2026.

    These investments highlight a longer-term vision but present short-term hurdles.

    The Path Ahead

    Deutsche Bank described the locals market as “frothy,” reflecting a level of growth that surpasses historical norms. However, the report stresses the importance of sustainable growth. Santarelli concluded that a healthy gaming revenue cadence in 2025 would be crucial for operators like Boyd and Red Rock to outperform.

  • DraftKings and Fanatics End Legal Battle Over Former Executive Michael Hermalyn

    DraftKings and Fanatics End Legal Battle Over Former Executive Michael Hermalyn