GME3: iGO Sees Q2 Boo-st, TMTG Rises from the Dead & Monster Fine for Google

Happy Halloween, and welcome back to the GME3! For this week, we’re looking at iGO’s market performance report for the last quarter (spoiler alert, the numbers are looking great), a shocking new valuation for former President Donald Trump’s social media venture, Truth Social, and an incomprehensible fine levied against Google by the Russian justice system.

Gambling

iGO Sees Q2 Boo-st

iGaming Ontario (iGO) has released its market performance report for Q2 of the 2024-2025 fiscal year, and the results are looking great for the province.

In Q2, Ontario’s iGaming market saw $18.7 billion in total wagers (excluding promotional or bonus wagers), marking a 1.6% rise from the previous quarter and a significant 31.7% increase from the same period last year. Gaming revenue totalled $738 million, showing a quarterly increase of 1.7% and a year-over-year rise of 35.4%, reflecting cash wagers minus player winnings but not operational costs or liabilities.

The quarter included 51 operators with 83 gaming websites, with over 1.32 million player accounts actively wagering. The average monthly spending per active account was $308, though these numbers don’t accurately reflect unique individuals, as players may have multiple accounts with different platforms.

Casino games continued to dominate the market, contributing $16 billion (86%) to total wagers and $553 million (75%) to gaming revenue. Betting, encompassing sports and novelty bets, contributed $2.2 billion (12%) in wagers and $167 million (23%) in revenue, while peer-to-peer poker brought in $417 million (2.2%) in wagers and $18 million (2.4%) in revenue.

The overall rise in activity, combined with steady revenue gains across casino, betting, and poker, points to a thriving market with room for continued expansion. iGO’s commitment to ongoing quarterly reporting provides valuable transparency, underscoring a robust, growing market that’s solidly resonating with players and stakeholders alike. These numbers signal a promising trajectory for Ontario’s iGaming landscape as it builds on this momentum. If you want to read the full report from iGO, you can find it HERE.

Media

TMTG Rises from the Dead

Donald Trump’s social media venture, Truth Social, has surpassed the valuation of Elon Musk’s X (formerly Twitter), reaching over $10 billion as shares of its parent company, Trump Media & Technology Group (TMTG), surged to quadruple in value since September. This rapid rise has placed TMTG ahead of X Holdings, which Fidelity recently valued at approximately $9.4 billion. TMTG’s stock has been especially volatile, trading at around $12 last month before climbing to $51.51 this Tuesday, including a 21.6% jump on Monday. Trading was halted briefly several times due to the sharp moves.

TMTG’s valuation spike is largely attributed to optimism about Trump’s 2024 re-election odds, which investors see as favorable, rather than the company’s profit potential. Although Trump holds a 57% stake, he has no operational role in TMTG, which has faced significant financial struggles. According to regulatory filings, the company generated just $837,000 in revenue and lost over $16 million in Q2 of 2024. TMTG’s valuation now places it above several well-established brands, including Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro.

Elon Musk initially acquired Twitter for $44 billion in 2022. Since then, Fidelity Investments has repeatedly adjusted its stake valuation, with the most recent estimate pegging it at just $4.2 million. Musk has emerged as one of Trump’s prominent supporters in the political sphere, pledging over $70 million toward Trump’s re-election campaign, hosting town hall events in his support, and even offering Pennsylvania voters the opportunity to win $1 million if they’re registered to vote and sign his petition to uphold the Constitution.

Entertainment

Monster Fine for Google

In an ongoing legal dispute, Google faces a colossal fine from Russia, reportedly reaching the (almost literally) unimaginable figure of 2 undecillion rubles, or approximately US $20.6 decillion. This fine, imposed by a Russian court, stems from Google’s refusal to reinstate Russian media accounts on YouTube, which Google suspended to comply with U.S. sanctions. Moscow-based lawyer Ivan Morozov explained that the fine doubles regularly with no cap on its total, and it now far surpasses any feasible amount—exceeding not only the global GDP (roughly $105 trillion) but even all money and wealth generated on Earth since the beginning of human history.

This fine, brought about by claims from various Russian TV channels over suspended YouTube accounts, exemplifies the strained relationship between Google and Russia. The enormity of the fine, noted as “clearly insane” by Nigel Gould-Davies of the International Institute for Strategic Studies, underscores both the punitive nature of the ruling and the limited options for enforcement. He likened the situation to “putting a dead person on trial,” a comparison made relevant by Google’s limited presence in Russia; it has no substantial assets left in the country after its Russian subsidiary filed for bankruptcy in 2022 and authorities seized its local bank accounts. Nevertheless, free services like YouTube and Google Search remain accessible in Russia.

Alphabet, Google’s parent company, has indicated that these “compounding penalties” are unlikely to have any significant financial impact on its operations. This view aligns with prior quarterly earnings reports, with the company referencing ongoing legal issues in Russia as early as Q1 2022. In its recent Q3 2024 report, Alphabet reiterated that it does not foresee any material adverse effect resulting from these judgments. Despite the substantial nature of the fine, the practical ramifications remain limited, as Google continues to operate globally, essentially undeterred by this unusual legal and financial maneuver from Russian authorities.