Toronto-based Newgioco’s CEO Michele Ciavarella has a plan for combating illegal gambling in the US. He said that the government must blanket the country with licensed operators to remove space for illegal operations to thrive.
Monopolizing is not the answer
According to Ciavarella, monopolizing the state lottery distribution system or favoring one operator for sports venues will be a counterproductive measure. It will lead to an increase in illegal gambling. Talking to Gambling Insider, he said,
“The situation with Intralot in DC is quite absurd in my opinion. A free and open market is best for the consumer.”
He added that the Unlawful Internet Gaming Enforcement Act and the Wire Act are designed to stop illegitimate operations. They are not meant to stop a legal industry like sports betting.
When monopolization occurs in the market, wagers like to move to offshore bookmakers and favor street-side bookies instead of legalized operators. He compared the licensing practices to an environment where legal retailers are only allowed to sell white sneakers. He said that those selling knock-off shoes would enjoy seeing their profits go up with such restrictive measures.
He also added that legalized sports betting operators should blanket the US. He also mentioned that banks and regulators should not make it impossible for such operators to do business.
Newgioco’s third-quarter gains
The company recently released its financial statements from the third quarter, marking $0.34 million in net profits. It was a remarkable improvement since it lost $0.39 million in the second quarter. Gaming revenue increased for the company in the first nine months of the year. Its gross gaming revenue was $28.3 million for the first three quarters of the year. The figure was $27.4 million in the first nine months of 2018.
Ciavarella said that moving back to a net profit instead of a net loss via operations, the company has laid a solid foundation for its fourth quarter. The company posted $352.2 million in gaming handle in the first nine months of the year. He said that it is on the right path to reach its target of $500 million in the gaming handle by the end of the year.
He also noted that the third-quarter results were stronger than expected even as there were no major sporting events that could drive their European operations. The company is busy restructuring its board and management team to clear the path for a NASDAQ listing.