Camelot

Camelot UK Lotteries has appointed Louise Hanlon as deputy head of corporate responsibility, bolstering its CR team as it strives to deliver its strategic goal through 2020 and beyond.

Bringing 15 years experience, Hanlon has previously held senior and manager-level positions at leading companies spanning a range of industries, including KFC UK & Ireland, Symantec, Kellogg’s and BUPA.

“We are delighted to welcome Louise as deputy head of corporate responsibility. Her extensive experience at leading companies from a broad range of industries gives her valuable knowledge and expertise, and demonstrates her ability to deliver in new CR&S environments. We’re looking forward to everything that we’ll achieve with her on-board.” – Alison Gardner, Camelot’s head of corporate responsibility.

888 Holdings

Aviad Kobrine is to step down as chief financial officer of 888 Holdings this year after more than 15 years with the group. 

The company’s board is to immediately beging a search for his successor, with Kobrine to remain in the position until a successor is in place in order to enable a seamless transition of responsibilities.

Aviad joined 888 in 2004 ahead of the group’s IPO and was appointed as CFO in June 2005, playing an important part in the group’s progress and growth into a global online gaming business that operates across 12 regulated markets.

“Aviad has made a truly outstanding contribution to 888.  He has played a significant role in helping to develop 888 into the world class online gaming operator it is today.” – Brian Mattingley, chairman of 888.

Bluberi Gaming Canada

Andrew Burke has named as chief executive officer of North American gaming firm Bluberi Gaming Canada with immediate effect.

Lauded as “accomplished leader and industry executive” with more than 14 years of experience in gaming and technology, the appointment comes as the company strives to achieve its next phase of strategic growth.

In his most recent role Burke served as vice president of slot products at AGS, overseeing all aspects of the division’s commercial operations in the United States and Canada.

“Bluberi is at a prime point of growth, and the opportunity is boundless,” Burke said. “I am excited to work alongside our employees, partners, and customers to transform Bluberi into a formidable gaming supplier led by unparalleled customer service and product innovation.”

BHA

The British Horseracing Association has announced that Nick Rust is to step down at the end of the year after nearly six years leading racing’s governing body and regulator.

The BHA states that it will begin the process of selecting a new chief executive in the next few weeks.

In a lengthy statement signalling his departure to staff Rust stated: “I’ve spent much of the past year reflecting on my situation after my personal bereavement at the end of 2018. I wanted to let you and the BHA know my decision and plans well ahead of leaving to allow plenty of time for a successor to be identified and appointed

“This is a fantastic job leading a team of passionate, hard-working people who want racing to have a prosperous and sustainable future as a clean, fair sport that looks after its horses and its people.

“You demonstrated that visibly with all the effort you put in to resolve the equine flu problems last year but I know how much more unseen work is going on across the BHA to progress our sport. I am hugely proud of what you do for British racing and thank you all.”

Vici Properties

Real estate investment trust Vici Properties has revealed that Monica Howard Douglas has been appointed to the company’s board of directors.

Becoming an independent director, subject to and effective upon receipt of all applicable regulatory approvals, upon joining the board Douglas will serve on the nominating and governance committee.

“Monica will be a superb addition to Vici’s board of directors, given her experience in governance and environmental sustainability matters with one of the world’s most admired consumer companies –The Coca-Cola Company.

“She will contribute strongly to our collaboration with Vici’s executive management team, which is focused on being the real estate partner of choice for our operating tenants, and on delivering superior returns for our shareholders. We believe her background complements our existing Board composition and expands the diverse viewpoints of our board.” – Jim Abrahamson, chairman of the board at Vici.

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It builds on the operator’s growth across Africa already, with it having a base in Angola. 

Expressing his excitement over the expansion, 888Africa Coo-Founder and CEO, Christopher Coyne, stated on LinkedIn: “(I am) Delighted to announce that 888Africa has now launched into our seventh African market with Malawi. We are live from today [Friday, November 29].

“I’m so proud of the work of the outstanding 888Africa teams, too many to mention in the run to get us live, but I will note Alex Rutherford [888Africa Chief Growth Officer] for his work on licensing, and I’ll mention also Andrew Lee [Chief Revenue Officer], Steven McIntosh [VP of Product] and Zeljka Perkovic for their massive contributions on the project side.”

The firm emphasised that the key to expansion and success in the region is not solely relying upon its sportsbook, but through its “commitment to becoming an important part of the community”, as well as “delivering the biggest jackpots and most exciting games to building meaningful connections with the amazing people of Malawi, we’re here to make a positive impact”.

It continues the evolution of the operators as it adapts to market challenges and trends to ensure the most successful outcome is found. 

Last year, the group acquired multinational African online bookmaker BetLion, in what was described as “A critical step” in its African expansion. 

888 launched 888Africa in March 2022, a joint venture led by former The Stars Group (TSG) CMO Coyne. 

On the BetLion takeover, Coyne remarked: “This acquisition is a critical step as we aim to create truly unique betting and gaming experiences for players across Africa. 

“The talent and technology at BetLion is perfectly suited to our growth model and ambitions, and will help to further strengthen our offering as we look to build market-leading positions across Africa. We also look forward to working with our new colleagues and introducing new customers to our local brands.”

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Issue 32 of the magazine includes an in-depth feature about the future of the custodian of the William Hill and 888 brands, in which Widerström and Chief Strategy Officer Vaughan Lewis detail the difficult steps they are taking to get the business back on track after a troubled period.

While the decision to rename the plc evoke is perhaps the most eye-catching step, the company is also undergoing an extensive restructuring programme designed to combine the strengths of its two internationally-recognised brands, together with a revamp of the executive team.

Widerström remains keen to see further change though, telling SBC Leaders: “When we are looking ahead with our value creation plan – the new strategy – we are instigating a new way of operation, which is more data-driven and more integrated with intelligent automation. 

“Of course, then we are building a new culture as we go along. It is an ongoing process to make sure you have a fit for purpose, future-proofed culture and way of behaving in any living organisation in order to stay top in the industry.”

Elsewhere in the magazine, cover star Marina Ilina, the CEO of Pin-Up Global, shares her views on what lawmakers get wrong when creating regulated markets or updating regulatory regimes. 

“More often than not, states think that if businesses are tightened up with mandatory deductions, it will be good for the country,” Ilina says. 

“In reality, however, operators are very good at counting money. Licensed operators will not work in the countries where taxation, for example, mandates withholding winnings from the player, but does not regulate the grey market. Players themselves will not play in licensed products.”

Readers can also look forward to interviews with a number of other high-profile figures in the industry. Betfred’s incoming Chief Intelligence Officer Andrew Daniels discusses plans to use the operator’s all-new tech division to replicate its retail success on digital channels, while LiveScore Group’s General Counsel Rani Wynn examines whether marketing regulations are hampering the promotion of safer gambling practices. 

Bulgaria’s gambling regulator Alexander Popov explains his plan to tackle the black market, while PressEnter Group’s Head of Payments Sean Spiteri discusses technological developments in the payments space.  Amit Berkovich, evoke’s Head of Poker, calls for greater innovation to give the game a new lease of life, and Christoffer Andersson, Chief Operating Officer at 500 Casino explains why he believes the recent changes to Curaçao’s regulation will be a good thing.

There is also an in-depth look at the international furore about gambling advertising, a deep dive into the growing threat of AI-powered fraud, an evaluation of whether the sweepstakes model can successfully transfer from the US to international markets, and much, much more.

Click here to read the digital version of SBC Leaders Issue 32 or pick up a print copy at SBC Summit in Lisbon.

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16%

Betsson highlighted the second quarter of 2024 as its “best quarter ever” after revenue rose by just under 16 per cent in comparison to the same period last year, a new all-time high for the group.

Betsson declared a group revenue of €271.5m, a 14.6 per cent increase year-over-year (Q2 2023: €236.8m) and an organic growth of 38.1 per cent YoY, driven by B2C operations.

The operator stated that licence revenue for system delivery to B2B customers amounted to €70.6m (2023: €65m) a – 26 per cent share of the group’s total revenue (2023: 27 per cent).

Customer activity grew during the quarter, with deposits increasing by 15 per cent YoY to an all-time high of €1.43bn (2023: €1.24bn). Active customers rose by 25.4 per cent YoY to 1.4 million (2023: 1.1 million), while the number of registered customers at the end of the quarter stood at 31.2 million, up 11 per cent YoY (2023: 28.1 million).

In addition, Betsson noted that 88.6 per cent of its active customers have activated tools for responsible gaming (2023: 89.3 per cent), while 16,992 customers have been analysed manually by the operator during the quarter for potentially risky gaming (2023: 14,967).

Betsson’s EBITDA during the quarter rose by 15 per cent YoY to €77.6m (2023: €67.6m) with a margin of 28.6 per cent (2023: 28.5 per cent). Operating income increased by 18 per cent YoY to €64.1m (2023: €54.5m), its tenth consecutive quarter of increasing operating income, with a margin of 23.6 per cent (2023: 23 per cent).

CEO Pontus Lindwall commented: “The second quarter of 2024 meant continued high growth and strengthened profitability with new records in both revenue and operating income for Betsson. 

“I am particularly delighted to note the improved operating margin in the quarter and the highest ever operating income, given the increased proportion of revenue that was subject to local gaming taxes.”

5

SkyCity Entertainment Group subsidiary, SkyCity Casino Management Limited, reached an agreement with the Secretary for Internal Affairs regarding the government body’s application to temporarily suspend the firm’s casino operator’s licence for five days. 

SkyCity Auckland’s gambling area will be closed for these five consecutive days in 2024, with the agreement conditional “on the Gambling Commission consenting to the withdrawal of the application by the secretary”, which has been filed.

The application to temporarily suspend SkyCity Auckland’s licence for a period in the range of 10 days was initially made by the secretary in September 2023. It followed a complaint to the Department of Internal Affairs in February 2022 by a former SkyCity Auckland casino customer who gambled between August 2017 and February 2021.

The secretary alleged that SCML failed to comply with SkyCity Auckland Host Responsibility Programme requirements about the detection of incidents of continuous play by the customer.

Through the agreement with the secretary, SCML has acknowledged that it didn’t meet SkyCity Auckland HRP requirements and the detection of some incidents of continuous play by the customer “due to a design error in a technology system” developed by the operator to monitor carded customers’ continuous play.

Callum Mallet, COO New Zealand at SkyCity, noted: SkyCity places great importance on host responsibility and takes these failures very seriously. On behalf of the SkyCity board and management team, I accept and apologise for these failures.”

5%

Publishing its interim report for 2024, Svenska Spel declared an overall Q2 net gaming revenue of SEK 1.87bn (€161.8m), down by five per cent year-over-year (Q2 2023: SEK 1.97bn).

The operator noted that the decrease was partly due to its Casino Cosmopol business only having one casino open in comparison to three the previous year following the closure of casinos in Malmö and Gothenburg, resulting in a SEK 90m reduction. 

Its online unit improved by eight per cent in comparison to the same period last year, accounting for 59 per cent of the total revenue earned during the quarter (2023: 52 per cent).

In addition, the operator stated that the strengthening of responsible gaming measures had “a negative impact on revenues for all business areas”, but a positive impact on healthy revenue.

The group’s operating profit for the quarter was SEK 640m, up 17 per cent YoY (2023: SEK 550m) following restructuring between October 1, 2023 and March 31, 2024, which resulted in lower costs. Operating margin rose to 34 per cent (2023: 28 per cent) due to the lower costs, while group profit grew by five per cent YoY to SEK 499m (2023: SEK 474m).

For the first half of the year, the operator’s net gaming revenue has fallen by three per cent YoY to SEK 3.83bn (2023: SEK 3.94bn), due to it being “heavily impacted by changes in the casino business”. 

H1 operating profit stood at SEK 950m, down 18 per cent YoY (2023: SEK 1.16bn), impacted by “non-recurring costs of approximately SEK 375m for the closure of two casinos, the provision for an administrative fine and the reorganisation of Svenska Spel”.

Profit for the group in H1 was SEK 794m, down 19 per cent in comparison to the same period the previous year (2023: SEK 981m).

Anna Johnson, who took over as President and CEO in June, commented: “We are now starting to see the results of the restructuring we have implemented at Svenska Spel. We have conducted a review of the organisation, working methods and costs. 

“We have also closed down our casinos in Malmö and Gothenburg. This has led to lower costs, improved earnings and a strengthened operating margin in the second quarter. It gives us an opportunity to invest in transformation, strengthen responsible gaming work and investments that create growth.”

120%

The Philippine Amusement and Gaming Corporation has published its financial results for the first half of 2024, declaring a net income increase of over 120 per cent year-over-year.

Commenting on the results, Alejandro Tengco, CEO and Chair of PAGCOR, expressed confidence that the annual growth so far indicates that 2024 will be “a banner year” for the market.

For H1 2024, PAGCOR’s net income came in at Php6.56bn (€102.8m), up by 121.48 per cent in comparison to the Php2.96bn reported during the same period the previous year.

Total gross gaming revenue for the Philippines’ gaming industry rose as well by 19.21 per cent to Php194.74bn (H1 2023: Php163.36bn).

PAGCOR noted in a statement on their website that Tengco believes “reforms and enhanced regulations being implemented under the new administration” have contributed to the growth seen in H1.

The CEO said: “PAGCOR’s robust net income growth translates, of course, to a larger Contribution to Nation-Building. We were able to remit Php31.82bn in CNB to the Treasury in the first six months compared to Php22.62bn in the same period last year.”

The gaming corporation stated that gross revenue was up by 42.92 per cent YoY to Php51.76bn (2023: Php36.21bn), with gaming operations consisting of Php45.39bn.

£431m

evoke declared Q2 revenues of approximately £431m in its H1 2024 trading update, a slight decrease in comparison to the previous year (Q2 2023: £436m). Q2’s revenue was also in line with the previous quarter’s figures.

The business stated that revenue is “broadly stable sequentially” and although it is behind initial plans, it is on a “positive trajectory” and is showing “encouraging lead indicators”.

For the whole of H1, evoke reported revenue of £862m, down two per cent year-over-year (H1 2023: £882m).

Adjusted EBITDA margin for H1 is expected to be around 13 to 14 per cent, which is approximately £35m to £40m behind evoke’s plan and “driven by the revenue miss vs expectations and the timing of cost saves”.

The operator noted that H2 2024 and 2025 expectations onwards are unchanged as business momentum supports significantly increased profitability.

As of June 30, 2024, the operator’s cash was approximately £116m with ample total liquidity of nearly £300m including RCF.

“We are focused on mid and long-term profitable growth and value creation and during the first half we have made bold, decisive changes to improve almost every area of the business,” commented CEO Per Widerström.

“We are undertaking a complete reset and transformation of the business, and the scale of change is significant but necessary. This transformation will take time but will enhance operational efficiency, leading to a bigger, more profitable and more cash-generative business in the future.”

$85m

Evolution has moved to bolster its in-house table game offering, following an agreement for the acquisition of Galaxy Gaming for approximately $85m.

It’s a move that underlines Evolution’s ambitions for the US market, building on the presence of one of the market’s key players in terms of supplying proprietary table games to the online gaming industry.

Martin Carlesund, CEO Evolution AB, commented: “We are thrilled to announce the acquisition of Galaxy Gaming, which represents a significant milestone in our mission to provide unparalleled gaming experiences to our customers. Galaxy Gaming’s exceptional products and technology complement our existing portfolio and strengthen our strategic position.”

Furthermore, it also deepens the company’s focus in the US, having recently expanded its live casino presence in Delaware through a collaboration with BetRivers. Galaxy is currently licensed in 28 states, enabling the rapid growth of Evolution’s US footprint. 

Carlesund added: “Evolution intends to retain the management and employees and also plans to operate Galaxy Gaming as a separate and independent business unit.

“With the acquisition, we accelerate and solidify our presence in the US market where Galaxy is licensed in 28 states. Through Galaxy we gain a relationship with regulators in states that are not yet open for online and fast-track all future licensing.”

The post Betsson, the Philippines, evoke and Evolution: the week in numbers appeared first on CasinoBeats.

It’s a move that bolsters the igaming experience for WSOP players whilst also expanding the number of states that are embraced by the online poker platform. 

Jeffrey Haas, Chief Growth Officer at evoke, commented: “With a relentless focus on customer experience, our poker proposition has continually evolved and pushed the boundaries for online poker players globally for more than two decades. 

“The latest poker platform upgrade in America will deliver superior gameplay experiences for players in Michigan, New Jersey and Nevada. We look forward to working with our partners at the World Series of Poker to leverage this technology to substantially enrich their customers’ online poker experience. Poker is a game of liquidity and network effects, and our Poker 8 upgrade will be a catalyst for expansion.”

Poker 8 comes off the back of extensive player feedback for evoke and looks to tap into “superior in-game graphics, smoother gameplay and more efficient quicker loading times”.

As a result of the platform roll-out across Michigan, New Jersey and Nevada, WSOP.com players will be able to engage with poker features such as Progressive Knockouts, Mystery Bounties and the ability to play multiple concurrent Texas Hold’em and Omaha cash games and tournament tables seamlessly on their mobile apps.

Ty Stewart, Executive Director – World Series of Poker, added: “It’s a monumental day to bring this new product to market in time for the 2024 World Series of Poker. While we will always strive to offer the biggest tournaments in the industry year-round, this is the time when players can enjoy exclusive satellites, promotions and online bracelet events.”

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Despite experiencing a “renaissance” a few years ago due to the COVID-19 pandemic keeping everyone indoors and on screens, a return to normality has dealt online poker a poor hand – with player acquisition in decline. 

Consumers have become increasingly reliant on instant gratification and quick-fire game rounds. As such, the online poker scene faces a plethora of issues from reduced player retention to alienating the older generation with new ideas and innovations. 

Engaging audiences with strategies to ensure that poker stays high-profile and engaging for all players, the ‘Back to basics – does poker really need re-inventing’ panel gathered poker experts on the second day of the CasinoBeats Summit. 

Moderated by SBC Media Project Director, Martyn Elliot, the panel explored why online poker is struggling to compete with other online casino verticals, as well as several other entertainment alternatives. 

“The market has become saturated with so many things to compete over players,” said Amit Berkovich, VP Head of Poker at 888, detailing that online poker is facing competition against “recreational games” on top of thriving entertainment and social media platforms like TikTok, Instagram and Netflix.

Referring to the title of the panel, Berkovich suggested that online poker doesn’t need re-inventing, “it needs innovation”. He stated: “The game itself, the structure is good. It’s been around for ages and people enjoy it but I do think the industry needs some shakeup.”

Bringing the experience of a professional poker player was Peter Jesko, Strategic Consultant at Casino Guru, who referred to an existing discussion of whether online poker is dead by stating that it’s still alive, but is offering less opportunities for players to make consistent cash. 

Jesko also referred to the uniqueness of poker as an encouraging factor for the game’s survival, suggesting there are little to no other games that combine gambling and skill-based gameplay as well as poker does.  

The panel then moved onto the presence of live poker tournaments that stem from the online scene. Telly Bartolo, Marketing and Event Manager at Casino Malta, explained that these tournaments offer much more than just a gameplay experience. 

He commented: “Poker players moving from online to live tournaments are looking to travel, they’re looking to meet people form different nationalities and mingle around. It’s not all about the actual game, but it becomes about all the other things in the full experience.”

As 888 runs its own live tournaments, Berkovich noted that these events often end up in a loss for the company, but become extremely worthwhile in other areas than revenue. 

“It used to be an acquisition tool,” he said. “I think it’s less so, it’s now more of a branding tool and a tool to create content. We don’t make money off of live events, we invest money into them. 

“It’s very powerful to come to a location like London, Madrid or Barcelona and have a live presence. It gives us the opportunity to meet the poker community and get feedback, while creating really high quality content that’s very important.” 

Evenbet’s Business Development Executive, Ivan Shumilov, also joined the panel, referring to live tournaments as the “pinnacle for players” due to offering “something bigger, more visible” with participation in “huge events”. 

As the conversation turned to online poker’s flaws when retaining players, Shumilov pointed out that slots and other online casino products are far more simple, with less buttons, instructions, outcomes and education needed. 

While agreeing that poker player retention is “definitely an issue,” Berkovich outlined a desire to make player education more gamified, providing players with engaging “crutches” rather than lengthy educational processes that can often be viewed as “patronising”. 

Bartolo agreed that over-the-top education and “too many rules” could even have the potential to “kill the game,” adding to the format’s difficulty to provide quicker, simpler experiences that the younger generation of players demand.

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The removal of gambling advertisements from the TfL was a manifesto pledge by London Mayor Sadiq Khan in 2021, however it is yet to be fulfilled. 

Just last month, the London Assembly Health Committee (LAHC) strengthened calls which emphasised the need for an understanding of the severity of the issue in the capital. 

The Health Committee’s motivation stems from concerns that “London’s rate of ‘problem gambling’ is almost double the average seen across Britain.”

LAHC Chair, Dr Onkar Sahota AM, stated: “The Committee does not view the current evidence base as a prohibiting factor in introducing advertising restrictions.

“The Mayor’s 2021 manifesto pledged to ban ‘harmful gambling advertisements’ across the TfL network. The Committee understands that this has not been implemented, as there is no definitive definition of harmful gambling, with a definition from the Government pending. Nevertheless, the Committee believes the Mayor should advance proposals for such a ban.”

The lack of action on the pledge has led to criticism of Khan from his key political rivals ahead of a mayoral election in the region. 

The Guardian has now reported that 888 will remove its marketing from the TfL, citing that it had listened to feedback to come to the decision. 

A spokesperson for the firm stated: “We continuously listen to feedback regarding the effectiveness of our advertising campaigns and acknowledge that, whilst fully compliant with all advertising regulations and standards, our latest campaign could be interpreted in a different manner to the brand position we aim for.”

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Commenting on the trading update, CEO Per Widerström noted that he was “confident” that the operator would “return to growth from Q2 2024” thanks to its progress in adapting to regulatory and compliance changes.

888 Q1 down but ahead of guidance

Publishing its Q1 trading update, 888 declared a group revenue for the period of £431.2m, which is slightly higher than the £420m to £430m guidance range set out in the operator’s FY23 results last month.

However, in comparison to the same period last year, group revenue is down three per cent (Q1 2023: £445.5m).

Revenue was up two per cent in comparison to Q4 2023, but the group expects “revenues to return to year-on-year growth from Q2 2024 onwards”, with FY2024 revenue growth expected to be “consistent with the mid-term target of five to nine per cent annual growth”.

Per vertical, gaming revenue improved slightly by one per cent to £272.2m (2023: £269.8m), while betting revenue dropped by 10 per cent year-over-year to £159m (2023: £175.7m). Average monthly player actives rose by six per cent YoY to 1.8 million (2023: 1.7 million).

Sportsbook stakes fell by five per cent YoY to £1.35bn (2023: £1.43bn) with a net revenue margin of 11.8 per cent (2023: 12.3 per cent).

Widerström commented: “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. 

“Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”

Segment performance

Across UK&I online operations, average monthly actives rose by nine per cent to 1.27 million (2023: 1.17 million), but total revenue fell by one per cent YoY to £164.4m (2023: £166m).

Gaming revenue growth of four per cent to £101.9m (2023: £97.8m) was offset by an eight per cent decline in sports revenue to £62.5m (2023: £68.1m), which 888 says was driven by “increased customer investment across the Cheltenham Festival relative to the prior year”. 

The operator added that revenues are expected to return to year-on-year growth from Q2 onwards thanks to “strong customer engagement, new product launches and the annualisation of safer gambling changes”.

888 noted that international revenue rose by six per cent in comparison to Q4, but is down two per cent YoY to £136.5m (2023: £139.7m). Betting revenue declined by 22 per cent to £20.5m (2023: £26.3m), while gaming revenue improved by two per cent to £116m (2023: £113.6m).

The operator added that the annualisation of significant compliance changes from February saw a four per cent YoY growth in February and March, “driven by the core markets of Italy, Spain and Denmark”.

For retail, total revenue dropped by seven per cent to £130.3m (2023: £139.7m), following a two per cent decline YoY in shops and a “challenging basis of comparison” as Q1 revenue was consistent with Q4 2023.

Betting revenue in the segment declined by six per cent to £76m (2023: £81.2m), while gaming revenue dropped by seven per cent to £54.3m (2023: £58.4m).

Q2 and beyond

888 highlighted that its Value Creation Plan announced in March offers medium-term financial targets of a five to nine per cent revenue growth, adjusted EBITDA margin improvement of approximately 100bps per year, focus on “deleveraging to reach net leverage of 3.5x or below by the end of 2026” and “embedding new ways” of operations.

The operator referenced as well its new corporate identity of ‘evoke plc’, which will be launched in May 2024 subject to shareholder approval at the AGM on 13 May 2024 to “better reflect a new ‘One Company’ approach”.

In addition, 888 spotlighted that the reset of its operating model is “well progressed, with £30m 2024 operating cost savings being reinvested into more profitable marketing to drive growth, in line with the VCP”.

During the quarter, the operator also announced the sale of its selected US B2C assets to Hard Rock Digital, concluding its strategic review of its stateside operations. 

Subject to regulatory approvals, the sale of selected assets and closure of remaining operations are expected to occur during 2024, with an ongoing EBITDA improvement of £25m per year from 2025.

Widerström concluded: “I was delighted to outline our multi-year value creation plan alongside our full-year results in March, and am pleased to report a strong quarter of progress against these plans.

“We are moving decisively and at pace to position our company for long-term success, and I look forward to providing further updates about our progress in the coming months.”

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114

In a major setback to operators in the Netherlands, Dutch MPs have received numerous motions to outlaw ‘high risk’ online casino games.

Further intensifying the framework around gambling in the Netherlands, there was also a vote to stop the marketing of online gambling. 

The pair of motions were pushed by Socialist Party MP Michiel van Nispen, as part of the Kamer’s ongoing revision of the Remote Gambling Act (KOA Act), the legislative framework adopted in October 2021 to regulate the Netherlands’ online gambling marketplace.

As a result, 114 motions were proposed by MPs to amend KOA market laws, standards and protections of which 14 were voted on this afternoon.

Van Nispen’s first motion to impose a ‘total ban on online gambling advertising’ secured 70 out of 150 MP votes, failing to gain an outright majority but approved due to ministerial absences.

The vote reverses previous stances on the matter having rejected in February a motion by CDA MP Derk Boswijk “to investigate a total ban on gambling advertisements”.

As such, the vote sees the Kamer favour imposing a blanket ban on all gambling advertisements as KOA amendments applied in July 2023 enforced a ban on gambling advertising on the ‘public platforms’ of TV, radio, print and outdoor media.

Addressing MPs, Van Nispen stated: “The KOA market is sick through and through. Every day that these companies continue their bad practices, more people become addicted to gambling.

“As far as we are concerned, it is the end of the story for gambling companies without morals. A ban on online gambling advertisements is another step forward towards a country without bad gambling companies.”

£431.2m

888 declared a group revenue for Q1 of £431.2m in its latest trading update, which is slightly higher than the £420m to £430m guidance range set out in the operator’s FY23 results last month.

However, in comparison to the same period last year, group revenue is down three per cent (Q1 2023: £445.5m).

Revenue was up two per cent in comparison to Q4 2023, but the group expects “revenues to return to year-on-year growth from Q2 2024 onwards”, with FY2024 revenue growth expected to be “consistent with the mid-term target of five to nine per cent annual growth”.

Per vertical, gaming revenue improved slightly by one per cent to £272.2m (2023: £269.8m), while betting revenue dropped by 10 per cent year-over-year to £159m (2023: £175.7m). Average monthly player actives rose by six per cent YoY to 1.8 million (2023: 1.7 million).

Sportsbook stakes fell by five per cent YoY to £1.35bn (2023: £1.43bn) with a net revenue margin of 11.8 per cent (2023: 12.3 per cent).

CEO Per Widerström commented: “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. 

“Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”

70%

iGaming Ontario has stated that FY2023-24 gaming revenue and wagers figures have both improved by over 70 per cent in comparison to the previous year.

Casino operations across the Canadian province have contributed heavily to the improvements, as wagers and revenue in this segment have grown by almost 90 per cent year-over-year.

For the period ending March 31, 2024, iGO declared that 47 operators and 77 websites collected total wagers (excluding promotional) of CAD$17.8bn in Q4, with FY2023-24 wagers at $63bn, a 78 per cent YoY increase over 2022-23 operations.

Q4 total gaming revenue was $690m, ending at $2.4bn for the full fiscal year, a 72 per cent uptick YoY. This figure includes rake fees, tournament fees, and other fees across all operators, minus player winnings derived from cash wagers and does not take into account operating costs or other liabilities.

The quarter’s wagers and revenue figures are also an improvement on the $17.2bn and $658m figures reported earlier this year for Q3.

“With $63bn in wagering and $2.4bn in gaming revenue, the second year of Ontario’s igaming market is more than 70 per cent bigger than the first,” commented Martha Otton, Executive Director of iGaming Ontario.

“As the market matures into its third year, I look forward to building on this foundation of success with operators and other partners as they invest in Ontario so that Ontarians can continue to play with confidence.”

6%

Entain has stated that it is making “good progress” in improving operational performance despite declines in the UK & Ireland.

Within its first quarter trading update, the FTSE 100 company noted that its performance was in line with expectations with “organic revenue growth”. 

Total group bet gaming revenue, which includes its 50 per cent share of BetMGM, improved by six per cent year-over-year, but down three per cent on a proforma basis.

Excluding US operations, group NGR rose by four per cent YoY, but declined by three per cent on a proforma basis. Gaming NGR fell by two per cent, sports NGR dropped by five per cent, while sports wagers decreased by five per cent.

Online operations improved by six per cent following an 11 per cent uptick in active customers, but on a proforma basis, these figures dropped by two per cent. Retail operations decreased by one per cent and five per cent on a proforma basis respectively.

“Our Q1 performance was in line with our expectations, with growth reflecting both strong performances in many of our markets as well as known challenges in others,” stated Stella David, Interim CEO of Entain.

“We are particularly encouraged by the level of customer engagement in the US following a successful Super Bowl and March Madness, as well as our return to growth in Brazil following the changes we implemented.”

A$50,000

The Victorian Gambling and Casino Control Commission in Australia has issued a A$50,000 fine to BlueBet for gambling advertising breaches.

The VGCCC found BlueBet guilty of 43 charges of displaying gambling advertising on or above a public road, which is an offence under the Gambling Regulation Act 2003.  

The commission conducted an investigation into the operator following a complaint from a member of the public. BlueBet was charged in August 2023.

During a two-week period in August and September 2022, BlueBet’s gambling advertising was present on digital billboards in five different locations.

The VGCCC stated that Magistrate Greg Thomas “found it difficult to accept BlueBet’s defence that they didn’t know they were breaching the law, given the prime position of the billboards to target males aged 15-54 years old”. 

The commission also said that Magistrate Thomas did not record a conviction, but claimed that if the breaches were accidental, it showed “a high degree of negligence” by BlueBet.   

In addition, Magistrate Thomas noted that he would have fined BlueBet $70,000 and recorded a conviction, but took into account the operator’s guilty plea, cooperation with the VGCCC and the changes implemented to prevent these breaches from being repeated. 

Commenting on the verdict, VGCCC CEO, Annette Kimmitt AM, said: “Gambling advertising has no place on public roads where it is readily visible to children and other vulnerable groups. These places are especially difficult to avoid as part of day-to-day activities.

“This decision sends a clear message to wagering providers that flout these protections for our community.” 

£182.3

Rank Group has reported an uptick in net gaming revenue for its third quarter, with venues and digital channels improving and trading in line with expectations.

For the period ending March 31, 2024, Rank noted that Q3 NGR rose by six per cent year-over-year to £182.3m. Year to date, NGR has improved by eight per cent YoY to £544.9m.

Mecca venues underwent the biggest NGR increase in Q3, rising by 12 per cent YoY to £37.3m. YTD, NGR for the segment stands at £104.5m, a 10 per cent improvement.

Rank credits the uptick during the quarter to a five per cent growth in customer visits and a seven per cent rise in spend per visit, “particularly benefiting from strong trading over the Mother’s Day and Easter weekends”.

Grosvenor venues generated the most NGR during the measuring period, rising by three per cent YoY to £80m. YTD, NGR has improved by eight per cent to £247.5m.

The operator noted that NGR for Grosvenor venues was driven by a five per cent increase in visitors, but since the quarter is a “seasonally quieter period”, average weekly NGR of £6.2m was up two per cent YoY but down two per cent in comparison to the previous quarter.

Enracha venues NGR improved by six per cent YoY to £10m. YTD, NGR rose by nine per cent to £163.4m.

Digital operations NGR grew by six per cent to £55m. YTD, NGR has increased by eight per cent to £544.9m. Rank noted that digital operations in the UK improved by four per cent, while Spanish operations grew by 20 per cent.

John O’Reilly, Chief Executive of Rank, commented: “We continue to make good progress across both our venues and online businesses, with Q3 trading very much in line with the Board’s expectations.

“Performance continues to improve, and we have the very important land-based reforms from the Government’s White Paper to look forward to, which we hope to start implementing in the coming months.”

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38

A 38 per cent increase in revenue from £1.24bn to £1.71bn last year helped 888 Holdings trim its losses as the firm continued to navigate a changing UK market. 

Aligning with its international strategy, the firm also praised a shift from dot com markets as it seeks to ensure a path to profitability is formed within its key markets of the UK, Italy, Spain, and Denmark.

However, gaming revenue of £1bn represents a significant dip for the firm, falling 11.2 per cent year-over-year. This was largely driven by the company’s shift away from dot com markets more heavily weighted towards gaming.

When it comes to adjusted EBITDA, the 2023 margin was consistent with the 18-19 per cent that it had prior indicated – a slight rise on the corresponding period from last year. 

Looking ahead, the group also confirmed its rebranding to ‘evoke’ in a bid to better align with ‘the strength of the group’s multi-brand operating model and its vision and mission to make life more interesting by delighting players with world-class betting and gaming experiences’.

It comes as the firm embarks on a ‘new strategic framework’, which it has emphasised it is adopting to establish a clear vision of what success looks like and the strategy to get there. 

In line with its core market focus, the group also undertook a strategic review of the US B2C business in Q1 2024 as it looks to ‘consider all potential alternatives that can deliver value for the business, which will deliver significant cost savings’.

Per Widerström, group CEO, stated: “It is incredibly exciting to announce our Value Creation Plan, our strategy for success, our new financial targets, and our new corporate identity. Today marks the beginning of an exciting new dawn for this business.

“I firmly believe that the Group now has all the key ingredients for long-term success: leading positions in growing markets with high and rising barriers to entry; powerful proprietary technology; a top-class management team; and some of the strongest betting and gaming brands in the world.”

1.4

Publishing its financials, Bragg Gaming Group reported a Q4 revenue decrease of 1.4 per cent to €23.4m (Q4 2022: €23.7m) which it says was impacted by “revised commercial terms agreed with a key strategic partner that took effect during the quarter”.

Wagering revenue during the quarter improved by 18.1 per cent to €6.1bn (Q4 2022: €5.1bn), while gross profit fell by 7.3 per cent to €12m (Q4 2022: €13m) with a margin of 51.5 per cent (Q4 2022: 54.9 per cent) due to the key strategic partner commercial terms revision mentioned earlier.

With a decline in gross profit being offset by cost optimisation improvements, adjusted EBITDA in Q4 decreased by 23.7 per cent to €2.8m (Q4 2022: €3.7m) with margins of 11.9 per cent (Q4 2022: 15.4 per cent).

Operational loss for the period stood at €400,000, a €600,000 decrease in comparison to the same period the previous year primarily due to the lower gross profit while reducing selling, general and administrative expenses.

Bragg’s board of directors have formed an ad hoc special committee to undertake a review of the company’s strategic alternatives. 

To be chaired by independent board member Don Robertson, the special committee will consider and explore strategic alternatives, which may include the sale of the company or its assets, a merger, financing, further acquisitions or other strategic alternatives. 

Bragg has also provided an update on its 2024 full-year revenue and adjusted EBITDA guidance, with growth expected to occur in both metrics.

Revenue is expected to improve by up to 16.6 per cent to a range of €102m to €109m, while adjusted EBITDA is expected to grow by up to 21.7 per cent to a range of €15.2m to €18.5m. Midpoints of the revenue and adjusted EBITDA guidance represent YoY growth of 12.8 per cent and 10.9 per cent, respectively.

Bragg CEO Matevž Mazij commented: “Our strategic actions have positioned Bragg as an essential content source for leading international igaming operators, strengthening our groundwork for consistent and profitable development. 

“With confidence, we affirm our readiness with the appropriate strategies, financial strength, and infrastructure to maintain our business momentum while executing initiatives that foster cash flow growth and generate added value for our shareholders.”

100

Svenska Spel Sport & Casino AB has been given a warning and a penalty fee of SEK 100m (€8.7m) by Spelinspektionen, Sweden’s gambling inspectorate, for duty of care failures.

In its report, Spelinspektionen noted that it began an audit of Svenska Spel’s operations on December 21, 2021, investigating how the operator complies with the Swedish Gambling Act’s duty of care.

The authority reviewed how Svenska Spel handled ten customers who lost the most money during the supervision period of October 17, 2021, to December 17, 2021.

In terms of the violation, Spelinspektionen declared that all customers during the audit period showed signs of excessive gambling; there was a lack of protection, follow-up and help to reduce gambling; and that Svenska Spel didn’t meet the legal meaning of the duty of care despite arguments by the operator that such regulation hadn’t been detailed enough at the time.

Spelinspektionen determined that Svenska Spel had not taken “sufficient measures to protect the players against excessive gambling and help them to reduce their gambling when there was reason to do so”. 

The gambling inspectorate also noted that the operator had “not fulfilled the obligations relating to the duty of care in the Gambling Act (Chapter 14, Section 1)”, so a warning and penalty fee of SEK 100m has been issued.

In response, Fredrik Wastenson, Svenska Spel Sport & Casino’s President and Business Area Manager, has stated that the operator does not share the same opinion as the authority and will be considering whether to appeal the decision. 

Wastenson commented: “We take on board the Swedish gambling authority’s decision. The regulatory period covers October to December 2021 and we have already addressed many of the comments. We have a high level of ambition in our work with our responsible gaming. 

“Since the duty of care was introduced in 2019, it has become clearer how it should be interpreted through the Swedish gambling authority’s guidance and supervisory decisions. We have adapted our work as the picture has become clearer.

“We are constantly developing our work, methods and technical capabilities to not only live up to the legislation but also our own high ambitions.”

7

Playtech was boosted by a seven per cent increase in revenues to €1.7bn and a nine per cent level up in adjusted EBITDA to €432.3m, as the firm lauded growth across all verticals. 

The spike was significantly bolstered by the strength of the firm’s B2C output and its growth within the Italian market. 

Continuing to cement its position as a leader in the region, Snaitech Italia landed revenues of €949m (FY2022: €899m) and an adjusted EBITDA of €256m (FY2022: €244m).

Further underlining the versatility of Playtech’s revenue and growth, the results also detailed how the group expanded its US market igaming B2B services – bolstered by 11 licences within the US.

Nonetheless, in Latin America, there remains a level of uncertainty over the case involving Caliplay, which continues to rumble on.

The disagreement over the firm’s Mexican igaming licence will unfold in October when the case returns to court. However, it is something that could impact Playtech’s end-of-year results. 

Chairman Brian Mattingley stated: “I would like to take this opportunity to thank the Executive Management team, who continue to demonstrate their agility and resilience in navigating a challenging external backdrop, given the ongoing wars in Ukraine and the Middle East. 

“Playtech has built on the strong strategic and operational progress of recent years and continues to cement its leadership across both B2B and B2C sectors. 

“While there were many challenges in 2023, the consistent quality at the core of our business meant that we were able to upgrade our expectations during the year and deliver a strong financial performance.”

25

Flutter Entertainment has declared an almost 25 per cent year-over-year increase in revenue in 2023 as the operator reports its financials for the first time since making its debut on the New York Stock Exchange.

Publishing its full-year financials in dollars for the first time, Flutter reported an overall revenue for 2023 of $11.8bn, up 24.6 per cent YoY (2022: $9.5bn) with average monthly players rising by 20.3 per cent YoY to 12.3 million (2022: 10.2 million).

The group accredited FanDuel as a “key driver” for growth as US revenue grew by 40.7 per cent in comparison to the previous year to $4.5bn (2022: $3.2bn) “despite customer-friendly sports results”. Sportsbook revenue improved by 45.9 per cent while igaming revenue increased by 47.2 per cent.

Excluding US operations, revenue rose by 16.4 per cent to $7.3bn (2022: $6.3bn) after a strong UK&I and “consolidate and invest” international market performance, in addition to its Italian brand Sisal producing $1.2bn in revenue (2022: $465m).

However, gains outside of the US were “partly offset by the impact of softer racing market conditions in Australia combined with a reduced level of Australian player engagement compared with the prior year, following easing of COVID-19 restrictions”.

UK&I revenue rose by 14.4 per cent YoY to $3bn (2022: $2.7bn), with sportsbook rising by 10.5 per cent while igaming improved by 18.1 per cent. Australia revenue fell by 7.1 per cent to $1.4bn (2022: $1.6bn) and international revenue improved by 36.8 per cent to $2.8bn (2022: $2.1bn).

CEO Peter Jackson commented: “Flutter delivered a strong 2023 performance as we continued to deliver on our strategy. This was underpinned by a localised approach to technology and product coupled with the unique scale advantages of the Flutter Edge. 

“As anticipated, our number one position in the US has transformed the group’s earnings profile during 2023 as FanDuel delivered a positive US full-year adjusted EBITDA for the first time. 

“We also made further progress on our sustainability strategy with an increase in Play Well safer gambling tool usage, investment of over $100m in our global safer gambling initiatives including key marketing campaigns in the US with our FanDuel ambassadors to promote responsible play during the year.”

Flutter also provided its guidance for 2024. US revenue is expected to be between $5.8bn and $6.2bn with an adjusted EBITDA guidance of $635m to $785m. 

7

Seven US online gambling operators have teamed up to establish the Responsible Online Gaming Association, an independent trade association that seeks to develop and advance responsible gaming practices.

bet365, BetMGM, DraftKings, Fanatics Betting and Gaming, FanDuel, Hard Rock Digital and PENN Entertainment have come together to help “educate, equip, and empower consumers to enjoy the fun of online gaming in a responsible way”.

The ROGA will be led by Executive Director Jennifer Shatley, who has more than 25 years of industry experience. She will be responsible for facilitating “widespread education to all relevant parties on the subject of responsible gaming”.

“I am humbled, honoured and excited to be selected to lead ROGA during this important period of growth in legalised mobile gaming,” stated Shatley.

“Many of America’s largest legal mobile gaming operators will be establishing a framework that helps to aid in responsible gaming education and awareness.”

The ROGA will undergo several initiatives including funding research, providing and raising awareness to consumer and industry responsible gaming education, promoting responsible gaming best practices and creating an independent data clearinghouse as well as an independent certification program.

“Together, our members will work alongside researchers, experts, regulators and stakeholders to promote responsible online gaming and maximise our efforts to support additional responsible gaming education and awareness,” added Shatley.

“By coming together with a clear set of objectives, ROGA and our members will work to enhance consumer protections and help provide easier and more efficient access to responsible gaming tools for consumers to enjoy the entertainment of online gaming.”

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