iGaming Wrap-Up of CW 34-35
#iGaming News of the week
0. Former Glitnor Group CEO David Flynn to cycle across Europe for charity
Former Glitnor Group CEO David Flynn has embarked on a cycling journey across Europe to raise funds for mental health charities.
Departing from Stockholm, Sweden on 26 August, Flynn aims to reach Valletta, Malta by the end of September, a journey spanning approximately 4,175 kilometres. The goal of this extraordinary endeavour is to generate support for mental health initiatives in Sweden, Malta and the UK.
The cycling enthusiast has established a GoFundMe page for donations, setting an initial target of £9,000.
A personal perspective on the cause
“I’ve attempted some crazy things in my time for charity but this one beats the lot,” he said. “Each country has its own charm,” Flynn stated, but they all face similar challenges, especially concerning mental health. “I believe everybody knows somebody impacted by mental health issues of one kind or another, some seriously impacting their lives and those who love them.
#Breaking News
1. Polish operator BETFAN 's H1 2023 turnover reaches $515.8m
BetFan, a legal Polish bookmaker, has reported financial results for the first half of 2023.
The company's total turnover reached PLN 213.5m ($515.8m), marking an 8% increase compared to the same period last year. Net gaming revenue (NGR) from January to June 2023 also surged by 26% year-on-year to PLN 20.7m ($5m).
In Q2 2023 alone, the company experienced even faster NGR growth, reaching 44% year-on-year. Moreover, BetFan achieved a net profit of PLN 3.75m in the first half of the year. BetFan's success primarily stems from its online operations, with 98% of its turnover in H1 2023 coming from online betting activities.
The operator's focus has been on enhancing its mobile application, launching a new version for both iOS and Android users in 2023.
2. Q2 2023: EveryMatrix profit margin hits 55% during seventh consecutive record quarter
EveryMatrix, the B2B igaming technology provider, has announced its seventh consecutive record-breaking quarter, showcasing a remarkable rise in its profit margin by 55%.
In the Q2 2023 update, EveryMatrix revealed a Net Revenue of €27 million £23.2 million/US$29.3 million) and EBITDA of €15m, indicating a year-on-year (YoY) increase of 82% and 188% respectively. Additionally, there was a quarter-on-quarter (QoQ) growth of 15% and 42% for these metrics. The company’s EBITDA to Net Revenue ratio also jumped from 45% in Q1 2023 to 55% in Q2 2023, marking the company’s highest quarterly profit margin.
Multiple factors have been instrumental in these results, with EveryMatrix’s Casino products being a significant contributor. This segment produced a Gross Gaming Revenue (GGR) of €432m for the quarter, an 86% YoY rise. Additionally, the Casino Net Revenue reached €12.6m for the quarter, showing an 83% increase compared to the same time frame in 2022. CasinoEngine, an integral part of EveryMatrix’s offerings, saw a monthly turnover of €4 billion, hitting over 4bn monthly game rounds for the first time.
3. Q2 2023: Rivalry.com reports 60% revenue surge and eyes profitability in H1 2024
Rivalry Corp., an internationally regulated sports betting and media company, today announced its financial results for the three- and six-month periods ended June 30, 2023. Rivalry has also provided revenue guidance that the Company anticipates reaching profitability in the first half of next year. All dollar figures are quoted in Canadian dollars.
“In Q2 we delivered a nearly three-fold increase in handle year-over-year,” said Steven Salz, Co-Founder and CEO of Rivalry. “Increased marketing sophistication and enhancements to our core product have led to operational improvements, increased player wallet share, and a material year-over-year reduction in cost of customer acquisition, positioning us well in the coming quarters. The growing strength in these underlying fundamentals continues to validate Rivalry’s global brand leadership in esports betting, and more broadly, in delivering a world class online gambling experience for the next generation of fans.”
4. Star Entertainment posts £1.2bn loss
Troubled Australian casino operator Star Entertainment Group has announced a full-year loss of A$2.4bn ($1.6bn/€1.5bn/£1.2bn) as it counted the cost of a writedown in the value of its casinos in Sydney, Gold Coast and Brisbane.
Star Entertainment, which has faced a string of fines and penalties in recent years, announced $2.8bn of outgoings labelled “significant items” for the year to 30 June 2023.
This consisted of an AU$2.2bn non-cash impairment of the Sydney, Gold Coast and Treasury Brisbane goodwill and property assets. There were also regulatory and legal costs of AU$595m, debt restructuring costs of AU$54m, and redundancy costs of AU$16m.
5. Betsson Group launches flagship brand in Denmark
Betsson Group has launched its flagship brand in Denmark, by rebranding Casino.dk into Betsson.dk.
This brand will coexist alongside NordicBet, another brand from Betsson Group that is already operating in the Danish market.
By introducing this named online casino into the market, Betsson hopes to expand its reach in Denmark. In addition to Betsson and NordicBet, Betsson Group currently operates over 20 different online gambling brands, including poker, bingo, sports betting and scratch-card platforms.
Ronni Hartvig, Betsson Group CCO, said: “Denmark has always been an important market for us. “By consolidating our operations under the unified Betsson brand, we aim to harness the power of consistency, scalability, and synergy.
“This rebranding approach empowers us to further optimise resources, cultivate a cohesive brand identity, and extend positive impact through diverse marketing initiatives and global partnerships.”
6. Can ESPN and Penn make the media and betting partnership work?
Perhaps the biggest question surrounding Penn Entertainment’s new deal with ESPN is whether or not the partnership can crack the nut that has tripped up so many partnerships before them. Namely, can a media brand successfully convert bettors to an app? And can they do so in a way that does not compromise the integrity of either brand or betting in general?
SharpRank Founder and CEO Chris Adams knows the potential pitfalls that come with blending content and bookmaking. His company helps operators and content creators audit content and create meaningful separations to ensure there are no instances where the traders influence content or the content influences traders.
Separation between editorial and the traders is paramount
Immediately after Penn’s announced its plans to launch ESPN BET, pundits and industry members started questioning where those lines between content and betting would land. For Adams, this is a sign the industry is getting better about thinking ahead when it comes to potential conflicts of interest.
7. Yahoo and William Hill open revamped sportsbook at The Venetian Resort Las Vegas
Yahoo and The Venetian Resort Las Vegas have agreed a multi-year animation rights deal to open a Yahoo Sportsbook powered by William Hill on the casino floor.
Aiming to create a “modern and luxurious setting” for sports fans to bet on their favorite teams ahead of the NFL season, the sportsbook features a 12,000 square foot space and a 46-million-pixel, 1770 square foot LED video screen that can show up to 40 events simultaneously.
“We wanted to create the best place on the Strip to watch sports,” said Patrick Nichols, President and CEO of The Venetian Resort Las Vegas. “This redesign pulls through the relaxed feeling of watching a game with your friends – plush sofas, lounge chairs, great game-day eats with the convenience of betting powered by William Hill.
“And through the partnership with Yahoo, we’re sure to have additional surprises in store for our guests as we move into football season and beyond.”
The sportsbook uses the naming and licensing rights of Yahoo while William Hill will provide the sportsbook technology and expertise.
#US / Canada
8. Despite Growing Attention, Sports Betting Ad Impressions Up 25%
As attention to sports betting ads grows across North America, operators are adjusting their approach Abut not slowing down their marketing.
Sports betting ad impressions in the US from January 1 to August 15 grew 25% year-over-year, according to ad tracking firm iSpot. The growth comes outside of the NFL betting season, which often draws the bulk of sports betting promotions and is about to kick off for US sports betting.
The information comes from a new iSpot report released Tuesday, which highlighted multiple shifts in the industry.
US regulators are beginning to pay more attention to the deluge of sports betting advertising. They, along with legislators, are starting to tighten the boundaries on marketing, including US Rep. Paul Tonko’s proposal to restrict sports betting ads on FCC-regulated mediums.
Leagues and media entities are all working to limit the attention drawn to the industry by creating the Coalition for Responsible Sports Betting Advertising. The American Gaming Association, meanwhile, created new marketing code for its member operators.
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9. Man arrested in New York for role in Sports Offshore
Richard Sullivan, 73, of St. John’s, Antigua, has finally been captured by U.S. law enforcement. His appehension comes 13 years after a federal grand jury in Boston indicted him with numerous charges related to his alleged offshore sports betting operation.
Sullivan was arrested last week at John F. Kennedy International Airport in New York while being processed through customs upon his return from Antigua. Sullivan was subsequently arraigned in the Eastern District of New York. The case has since been transferred back to the District of Massachusetts, where Sullivan will appear in a Boston federal court at a later date.
The 2010 indictment alleges Sullivan led a multimillion-dollar offshore sports betting operation called Sports Offshore. While the online sportsbook was licensed in Antigua, federal prosecutors allege the operation primarily focused on U.S. customers in an illegal capacity.
Legal sports betting in the U.S. was, at the time, limited to Nevada. It wasn’t until May 2018 when the U.S. Supreme Court struck down a federal law that essentially gave states the right to determine their own laws on sports gambling.
10. Ontario bans sports stars, celebrities from gambling ads
Ontario announced Tuesday that the province will ban the use of athletes in advertising for online gambling, while also strengthening standards to restrict the use of celebrities who the government says might appeal to minors.
But advocates, the Opposition NDP and a Canadian senator who has called for stricter regulations in the sector say that while the ban is welcome, it doesn't go far enough to protect those who are most vulnerable to gambling addictions.
Advocates and academics have raised concerns about the inundation of sports betting advertising seen in the province since Ontario opened up to independent online gambling sites last year, and decried the impact those advertisements could have on the health of young people.
The Alcohol and Gaming Commission of Ontario (AGCO) announced Tuesday it updated the Registrar's Standards for Internet Gaming to prohibit the use of athletes and said new restrictions will come into effect Feb. 28, 2024.
11. Illinois: Gaming and Leisure Properties, Inc. acquires Hard Rock Casino Rockford 's land for $100 million
Gaming-focused real estate investment firm Gaming and Leisure Properties Inc. (GLPI) has acquired the land associated with the Hard Rock Casino development project in Rockford, Illinois from an affiliate of 815 Entertainment for $100 million. 815 Entertainment is owned by Dan Fischer, the principal, along with a consortium of local investors and Hard Rock International, which is also acting as the property manager.
Simultaneous with the land acquisition, GLPI entered into a ground lease with 815 Entertainment for a 99-year term, the company said in a statement. The initial annual rent for the ground lease is $8 million, subject to a fixed 2% annual escalation beginning with the lease’s first anniversary and for the entirety of its term.
In addition to the ground lease, GLPI has also committed to providing up to $150 million of development funding via a senior secured delayed draw term loan at an interest rate of 10%, subject to regulatory review.
#M&A & Finance
12. PointsBet shareholders agree cash return scheme
PointsBet shareholders approved a plan that will net them up to $295 million after Fanatics completes its acquisition of their US business early next year.
Tuesday’s vote saw PointsBet shareholders vote to distribute proceeds from the sale into two phases. The initial completion is scheduled for mid-September with the subsequent completion expected in March 2024.
Fanatics agreed to purchase PointsBet US for $225 million in June, ahead of the sports retail giant’s foray into online gaming. That price is 50% higher than the original offer of $150 million after DraftKings Inc. submitted a competing bid of $195 million.
Fanatics will pay the Australian-based operator $175 million of that payment in mid-September, according to the release. At that time, shareholders are in line for a A$315 million capital return ($203 million), or A$1 per share.
After Fanatics transfers the remaining $50M from the sale in March, PointsBet shareholders are in line for an extra A$125 million ($81 million) to A$143 million ($92 million), or between A$0.39 and A$0.44 per share.
13. BetMakers Technology Group (ASX:BET) reports full-year EBITDA loss as share price tumbles
Shares in BetMakers Technology Group fell by 15% after the company reported negative adjusted EBITDA of A$27.9m for financial year 2023 (12 months ended 30 June).
While the B2B technology supplier saw a 3.7% year-over-year revenue increase to A$95m, primarily due to enhanced performance in the global betting services division, it still posted a loss of A$38.8m.
BetMakers’ results come after a period of reorganisation and restructuring. In May, the company implemented a $20m cost reduction programme, which involved reducing the headcount from 568 employees to 440. BetMakers said revenue growth was boosted by the launch of its Next Gen wagering platform and managed trading service technology.
#Legal & Regulation:
14. MGA bites back against criticism of Bill 55 legislative amendments
The Malta Gaming Authority (MGA) has sought to convey ‘clarity, accuracy and transparency’ regarding recent criticism of amendments to the Maltese Gaming Act, known as Bill 55.
A statement from the regulator addressed ‘recent remarks shared by sections of the media’ about Bill 55, which would add a new article to the Gaming Act. In particular, the MGA stressed that the bill fully conforms to EU law.
Specifically, Bill 55 seeks to adopt the Maltese government’s long-standing public policy on gambling into national law, and would prevent enforcement action against MGA-licensed operators under two sets of circumstances.
The first of these is if an enforcement action ‘conflicts with or undermines the provision of gaming services in Malta’, whilst the second is if the operator in question has acted lawfully under the terms of Malta’s Gambling Act.
The media reports of criticism referred to by the MGA largely came from the German Gluecksspiel (GGL), the country’s federal gambling authority, which accused the Bill of being incompatible with EU law.
15. Curaçao gaming licence fee set at €49k per annum
iGaming NEXT has prepared an overview of the upcoming changes that are part of Curacao’s gaming overhaul.
As part of Curaçao’s comprehensive revamp of its gaming regulations, operators seeking new licences will encounter a revised fee structure.
Starting from 1 September, operators can apply for a Curaçao online gambling licence, entailing an annual fee approximately €49,400.
Curaçao announced its intention to overhaul its gambling regime last summer. The Dutch-Caribbean island’s new gambling law is called the National Ordinance on Games of Chance, or LOK for short.
A new, independent supervisory body, the Curaçao Gaming Authority (CGA), will oversee the industry and issue licences for both B2C operators and B2B suppliers.
16. New Zealand: National Party Wants to Tax Offshore Online Gambling
General elections are coming to New Zealand this October, and will establish whether the Labour Party should continue controlling the government. If the National Party wins the majority, however, it envisions significant tax reforms, including a new tax on any gaming operator targeting the country.
The National Party believes its primary rival is responsible for “economic mismanagement” that has led to “rampant inflation, huge increases in interest rates, and a shrinking economy.” To put the country on the right path, it has promised a whirlwind of tax changes to drum up voter support.
New taxes on foreign-owned real estate and the removal of current business tax breaks are on the table. Those changes, according to the party’s projections, could bring more than NZ$1.2 billion (US$716 million) to the economy.
By taxing offshore gaming operators, New Zealand could pick up another NZ$179 million (US$106 million). However, the Labour Party believes the math doesn’t support that figure.
17. Danish regulator shuts 49 offshore gambling websites including Stake.com
The list of blocked gambling websites in Denmark continues to grow, while the regulator confirmed it will now block illegal gambling websites twice a year
The Danish Gambling Authority (DGA), Spillemyndigheden, the independent agency in charge of regulation of gambling in the country, announced that nearly 50 illegal gambling websites were blocked. Tasked with the regulation of online gambling activities, the Authority has been monitoring the market in Denmark since its liberalization dating back to 2012. Since then, whenever the Authority uncovers an illegal gambling website it would approach it and ask for the illegal offering to be discontinued. Alternatively, if the websites continue to operate in violation of the established gambling regulation, the DGA would ask a court to issue a block order which needs to be executed by internet service providers (ISPs) in the country.
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