While iGaming Cloud became qualified to be an online sports wagering operator, the commission concluded that its Malta-based parent company Gaming Innovation Group’s
“operating performance during the review period was poor, with net losses totaling $120.9 million during calendar years 2017 to 2021. The bulk of this loss occurred in 2019 as the Company began to divest its business-to-consumer segment and focus on growing its business-to-business segment.”
But the commission pointed to a rebound in the first nine months of 2022, leading to a net profit of $2.9 million.
“GiG is somewhat highly leveraged, but is managing its longterm debt and appears to have sufficient resources to meet its financial obligations and working capital requirements in the ordinary course of business and for the foreseeable future,” according to the commission.
“Additionally, GiG’s auditors have not expressed any concerns with the Company’s operations, financial condition, or continuation as an ongoing concern.”
“The Agency’s investigation has confirmed that the Applicant has sufficient resources and found no derogatory information regarding the Applicant’s qualifications.”
GiG now is fully approved to operate its Sportnco online wagering platform for Crab Sports Sportsbook, a Maryland-based company which touts itself as being more than 50% owned by women and minorities.
Crab Sports has a partnership with Jimmy’s Famous Seafood restaurant in Baltimore, as well as its own betting app.
FanDuel coming to North Bethesda bar
Whitman Gaming – owned by Carroll H. Hynson Jr. – gained preliminary approval for a retail sports facility license, with plans in place for a FanDuel Sportsbook in North Bethesda at the Sports and Social bar.
The commission reported that the company was just founded in February 2022, so “The Applicant has had very limited financial activity and has filed no income tax returns to date.”
But its business partner, PPE Casino Resorts, as of last fall had more than $100 million available in “cash and cash equivalents.” FanDuel’s parent companies Betfair Interactive and Flutter Entertainment, meanwhile, reported nearly $2 billion in cash available as of 2022.
“The risks associated with the Company’s lack of sportsbook business experience will be borne by PPE, which has the resources and experience needed to fund and manage the facility’s initial build-out and day-to-day operations.”
Additionally, “Betfair anticipates employing the same [sportsbook] business model, risk management, and trading procedures as the sportsbook it currently operates at Live! Casino Hotel Maryland” in Hanover, per the commission report.
Hynson is the president and chief executive officer of the gaming, advertising, marketing, and public relations firm Image Power, Inc. Hynson previously served for more than a decade as the deputy secretary for the Maryland Lottery.
Another new sports betting app on the way
Finally, Veterans Services Corporation gained preliminary approval for a mobile sports wagering license – also one step short of the final approval just achieved by iGaming Cloud.
In the case of Veteran Services, the commission stated that it “realized net profits” each year from 2017 through 2021.
“The Company has substantial cash reserves available, and appears to be well-positioned to meet its operating demands for the foreseeable future,” according to the report. “There are no financial concerns with the issuance of a Mobile Sports Wagering License to Veterans Services Corporation.”
The company last summer entered into a revenue-sharing agreement with London-based Bee Fee Limited to operate its online sports betting platform.
Maryland regulations allow for up to 50 retail sportsbook licenses, divided up among professional sports teams, restaurants, bars, casinos, racetracks, and off-track gambling facilities. Only about half that number has been fully or tentatively approved.