����žž

Despite a campaign to block a proposed sweepstakes ban in California, senators continue to be supportive of a bill that closes a loophole in state law prohibiting the use of online sweeps casinos that utilize dual currency models.

, introduced by Democratic Assemblyman Avelino Valencia, will be heard on Tuesday (July 15) in the Senate Public Safety Committee. The measure was passed unanimously by the Senate Governmental Organization Committee after a hearing on Tuesday.

The bill targets operators, payment processors, suppliers, and celebrity endorsers and includes potential fines up to $25,000 and a one-year maximum prison sentence. Valencia said language in the bill will be clarified to clear up any confusion that the legislation targets sweepstakes casino customers. 

Valencia’s bill has support from the California Nations Indian Gaming Association and a number of tribes and tribal organizations. Opponents include the Social and Promotional Games Association (SPGA) and the Social Gaming Leadership Alliance (SGLA).

In a letter to Valencia, the SPGA described AB 831 as “too vague, too rushed, and too risky.” 

The legislative debate over banning online sweepstakes casinos comes a few days after California Attorney General Rob Bonta released his long-awaited opinion declaring that state law prohibits all daily fantasy sports contests.

For a second time in seven months, Brazil’s Senate President scheduled and then postponed a planned vote on sweeping legislation to authorise land-based casinos and bingo halls across the country.

After several weeks of speculation, Senate leader Davi Alcolumbre on Friday placed bill PL 2234/2022 on the agenda for the Senate’s July 8 session.

However, after several senators spoke in opposition to the gaming bill during Tuesday’s proceedings, Alcolumbre announced he was withdrawing the measure from consideration because a number of Senate members were absent and they had asked for their votes to be recorded.

The Senate President also acknowledged that there was “certainly a divide in the Senate on this issue”.

In its current form, the bill would authorise one to three casinos in each of Brazil’s 27 states plus potentially thousands of bingo halls each offering up to 400 video-bingo machines.

PL 2234/2022 was passed by the lower house of Brazil’s Congress in February 2022 and then provisionally approved last June by an influential Senate committee that was chaired at the time by Alcolumbre.

The Senate President’s predecessor similarly placed the bill on the Senate’s voting agenda last December, only for supporters of gaming expansion to urge a postponement due to opposition from anti-gambling senators.

Super Group will exit the U.S. online gaming market as part of an ongoing strategic review to streamline operations, the company announced Tuesday (July 8).

The company, which is the parent of sports-betting brand Betway and iGaming brand Spin, has set aside between $30m to $40m to cover the one-time restructuring costs associated with its U.S. iGaming exit.

“This is a difficult decision, particularly because our U.S. team has worked hard and made progress over recent quarters,” Neal Menashe, CEO of Super Group, said in a statement. 

“Nonetheless, recent regulatory developments combined with ongoing assessment of capital allocation requirements have led us to believe that our stringent hurdle for return on capital will likely not be met in this market any time soon.”

Menashe did not name any particular regulatory developments, but New Jersey recently increased its online gaming tax rate from 15 percent to 19.75 percent, and gaming taxes and the fate of skill games are an issue in ongoing budget negotiations in Pennsylvania, the second state where the company operates.  

He said Super Group intends to focus its resources on markets where they see the “greatest opportunity” for sustainable and profitable growth. 

Super Group’s decision to pull out of the iGaming market comes a year after the company said it would cease its Betway sports betting operations in nine states to focus on its iGaming operations in both states.

The American Gaming Association (AGA) has confirmed it supports proposed legislation to restore the 100 percent deduction for gambling losses, after lawmakers in Congress approved a limit in deductible losses for gamblers.

The new provision to the tax code, which was included in President Trump’s tax and budget bill, limits the amount gamblers can deduct from their annual winnings to 90 percent of losses.

The provision goes into effect in 2026, unless it is reversed by Congress.

Representative Dina Titus, a Democrat from Nevada, on Monday followed through on her promise and introduced the Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act that would restore the 100% deduction for gambling losses.

It is unclear if the bill will be accepted in the Republican-controlled House of Representatives or Senate. 

“The American Gaming Association applauds Congresswoman Titus for introducing the FAIR BET Act,” the AGA said in a statement. “We are committed to working with Congresswoman Titus, other leaders, and the Trump administration to restore the long-standing tax treatment of gambling losses.”

DoubleDown Interactive has entered into an agreement to acquire Germany-based social casino operator WHOW Games, the Seoul-based social casino and iGaming operator announced Tuesday (July 8).

The initial consideration is €55m, or $65m, with an additional earn-out payment of up to €10m, payable at €5m annually, contingent upon WHOW Games meeting certain performance targets during each of the first and second year following the closing date. 

The acquisition will be financed through DoubleDown’s cash reserves, and the company expects the deal to close in the third quarter of 2025.

DoubleDown noted that it intends to leverage its operational expertise, marketing capabilities and gaming content to pursue growth opportunities in Europe, particularly in Germany.

Aaron Lee, a gaming analyst with Macquarie Capital, said the acquisition provides geographic diversification in a growing market that could help stem the tide of U.S. social casino declines.

“Additionally, given that WHOW Games operates in DoubleDown’s social casino segment, we believe there should be revenue synergies as DoubleDown can leverage its scale, marketing capabilities, and content library to drive growth,” Lee said in research note.

“Considering DoubleDown’s strong balance sheet, we believe this is a solid use of cash as DoubleDown looks to deploy more capital towards (mergers and acquisition) growth opportunities,” Lee wrote.