Something for the weekend - 01 September 2023

As the final long weekend of the year faded away, the industry geared up for another lively week, this time featuring the last few sets of financial results – for the time being.

It was Star Entertainment that won the prize for the most noteworthy fiscal year, but not in a positive way. The troubled casino operator posted a loss of AU$2.4bn ($1.6bn/€1.5bn/£1.2bn) for its full-year ended 30 June, a period marred by state casino licence suspensions in Queensland and New South Wales and a potential fine from Austrac.

This wasn’t the only news to come out of Star Entertainment this week. One year on from the monumental Bell report, in which Adam Bell SC unearthed a litany of failings at The Star Sydney, the New South Wales minister for gaming and racing released a report charting The Star’s progress in the time since. While it was found to have implemented 22 of 30 total recommendations, there is still some way to go.

Things were slightly more positive over at PointsBet. After approving the sale of its US business to Fanatics for $225.0m just before the end of its financial year, PointsBet posted net revenue of AU$383.1m, up by 7.6%.

Chairman Brett Paton and CEO Sam Swanell said PointsBet would continue to focus on its “strategically important place” in Australia, but added that the outlook was bright for the sportsbook operations in Canada.

But before we delve in any further, let’s try something a little more light-hearted.

iGB Diary: We won’t be getting these rounds in, 

Happy Friday igamers! This week the Diary flogs its Samuel Pepys first edition for a round of golf.

We won’t be getting these rounds in

While the Diary has a gnawing fear of someone mentioning getting a round in (and at £7 a pint who can blame us), we’re talking about a different kind of round. 

Golf. More specifically golf at an MGM Resort hotel – and to be frank it’s not cheap. The gambling hotel chain has raised its prices for an 18-hole round at its course at Shadow Creek in Las Vegas. 

Apparently, rates have been hiked by 20%, taking the price of a four-hour stroll through some undulating grass and scattered sandpits to a scarcely believable $1,200. But there’s more: not only would you be extremely fortunate to be able to afford to splash out on this golfing excursion, but you also have to be a guest at an MGM property.

That’s right, you have to stay with the hotel to gain entry, most likely rolling your golf bag through the casino to tee off next to the rhythmic sounds of the slot machines. Ahhh, it’s just like the pros. 

We suspect this fee might be reduced or even comped to certain high rollers. But if we’re going to crack open the old Diary treasury, we need a bit more spice to this deal.

Hey, how about if we make the green you’ll consider us for the Ryder Cup team, Luke Donald?

Well… it almost worked for Tom Holland. 

That’s all for this week! See you next time!

The week on iGB

Continuing on the Aussie trend, BetMakers reported a 3.7% rise in revenue for its full-year. But it missed consensus earnings estimates, suffering a AU$8.9m impairment of its assets. Regardless, it narrowed its loss year-on-year, posting a AU$38.8m loss compared to AU$89.2m previously.

The Victorian Gambling and Casino Control Commission (VGCCC) issued a warning to gaming operators, demanding they stop using club partnerships to incentivise new players to join. This is the latest development in what seems to be an industry-wide move to separate gambling and football, following on from the Premier League announcing a ban on front-of-shirt sponsorships earlier this year.

Along a similar safer gambling vein, this week the Alcohol and Gaming Commission of Ontario announced that it would prohibit celebrities and athletes from featuring in operators’ marketing materials from 28 February 2024. However, they will be allowed to appear in advertising that exclusively promotes safer gambling.

Copenhagen City Court slammed down the gavel on illegal gambling this week, blocking 49 websites from offering illegal gambling in Denmark and siding with regulator Spillemyndigheden. Since 2012, a total of 276 illegal sites have been blocked in the country.

Over at Intralot, Sokratis P Kokkalis, chairman and CEO noted continuing growth in earnings before interest, tax, depreciation and amortisation (EBITDA) for the first half of 2023. But this was overshadowed by declines in revenue and turnover, which fell 2.9% and 14.4% respectively. A more positive trend was noted at EveryMatrix, which reported record results for its second quarter. Net revenue grew by 82.0% to €27.0m. Casino made up €12.6m of the total revenue, having shot up 83.0% year-on-year.

At Bragg Gaming, Yaniv Sherman stepped down as CEO after just over one year in the role. Matevž Mazij, Bragg’s largest shareholder and founder of Oryx Gaming was named as Sherman’s replacement. His tenure began immediately.

This week also brought a brand new episode of iGB’s World Series of Politics. Hosts Brandt Iden and Brendan Bussmann were joined by Neil Montgomery, founding and managing partner at Montgomery & Associados and Hugo Baungartner, VP for global markets at Aposta Ganha to take a deep dive into Brazil’s brand-new igaming market. But first, they make a pit-stop in Florida to chart developments made since the podcast’s last bumper episode.

Sticking with the States and Paul Girvan, iGB columnist and chief executive of PKC Gaming & Leisure Consultancy, gave us a run-down of the latest casino development plans in North Carolina. A draft bill that could give the thumbs-up to four brand new casinos across the state has been widely received, but it could have serious consequences for other properties in the Tar Heel state.

That’s all for now. Join us again on Monday for the industry’s best news, data and analysis.