Month: August 2021


iGB Market Monitor – the Nordics


first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Topics: Casino & games Finance Legal & compliance Lottery Sports betting Bingo Poker Email Address iGB Market Monitor – the Nordics 15th May 2018 | By Stephen Carter Welcome to the May 2018 edition of the iGB Market Monitor. This quarter we focus on the Nordics, home to some of the most advanced digital economies in Europe which have given rise to operating giants such as Kindred and Betsson and the most innovative suppliers and affiliates in the space.With the official market estimate of SEK5.65bn (€545m) likely on the low side for what has been one of the best-performing igaming markets for many years, Sweden’s market opening in January 2019 will provide a tipping point for regulation in the region. With this shift will come a greater understanding of the value of the individual markets and how operator and supplier share of the grey space could translate into the regulated dot.se environment, with Kindred, Betsson and LeoVegas currenty the strongest positioned among the currently Malta-domiciled Swedish giants.A tax rate at the lower end of regulated market levies to date of 18% GGR will benefit all stakeholders by supporting the channelisation of activity to Swedish-regulated entities. These will of course include current lottery/gaming monopoly Svenska Spel and horse racing monopoly ATG. Kindred and Betsson are among the operators that have publicly bemoaned the potential for the former to parachute their competitive advantage and relationships built up over many years of monopoly into the regulated environment. The non-monopoly operators have so far failed to gain assurances or clarity from Swedish authorities over whether Svenska Spel will be prevented from cross-selling slots and other products to players acquired via its non-competitive lottery business, which will remain under monopoly.This means they will need to prepare for a repeat of the scenario in neighbouring Denmark, where Danske Spil was only stopped from pursuing this strategy after several years, by which time it had secured a dominant position in the market. Questions also remain over issues such as the proposed bonus cap, argued by stakeholders at our recent Nordic Affiliate Conference as potentially encouraging the type of irresponsible gambling behaviours the policy is intended to prevent. The mass-market presence of the monopolies, dot.com positioning of Kindred, Betsson and LeoVegas and a backdrop of slowing growth make it tempting to predict a polarisation of performance among operators similar to that seen in the UK where Bet365 and Sky Bet have left their more traditional land-based rivals flailing in their wake.But this of course doesn’t tell the whole story in the UK, where the big operators’ focus on sports betting and consolidation caused them to take their eye off the ball and enabled a host of niche gaming and casino-focused brands to emerge and carve market share.The Swedish narrative is likely to unfold in similarly unforeseen and unanticipated directions from next year.Click here or the e-mag below to view the full iGB Market Monitor Regions: Europe Nordics Denmark Norway Sweden Tags: Card Rooms and Poker Online Gambling This special edition of the iGB Market Monitor focuses on the Nordics ahead of the much-anticipated re-regulation in Sweden Subscribe to the iGaming newsletter Bingolast_img read more


Analysts hail Stars’ ‘impressive’ Q2


first_img Topics: Finance AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Analysts hail Stars’ ‘impressive’ Q2 Analysts have hailed The Stars Group’s “impressive momentum”, driven by mergers and acquisitions, after the company behind the PokerStars and Full Tilt brands posted a 35% year-on-year increase in second-quarter revenue.In a trading updated this (Monday) afternoon, Stars revealed that it generated sales of $412m (€361.2m/£322.8m) in the three months through to June 30, while EBITDA increased by 15% to $168m.Stars CEO Rafi Ashkenazi (pictured) said that the results represented ongoing growth with the firm’s “international business and the contribution of its Australian acquisitions”.Analysts also highlighted the performance of Stars’ ‘international’ segment, in which revenue increased by 15% to $350m, underpinning growth across all segments.Regulus Partners said that, given the company’s M&A activity so far this year – snapping up CrownBet and William Hill Australia before finalising a deal to acquire Sky Betting & Gaming last month – the international segment represented the most significant like-for-like figures on the balance sheet.“The extent to which Stars has been rapidly transformed by acquisition can be seen by the revised guidance,” Regulus Partners said, with an H2 annualised revenue run-rate of $2.5bn suggesting 77% growth on the previous guidance.“Substantially all of this revenue is regulated, most of it is betting and only a very small proportion of it is poker,” the analysts added.“As has been well flagged during the deal-making, Stars has therefore transformed itself from a geographic, regulatory risk and product standpoint – in capability as well as reach terms.”Stars CEO Ashkenazi added: “The continued emergence of our sports betting and casino offerings and the addition of our 2018 acquisitions have transformed our business and greatly enhanced the foundation and diversity of our consolidated revenue base, which will now be nearly equally split among verticals and roughly 75% locally regulated or taxed.“We are now focused on the next stage of our transformation—integration. While this will be a phased and measured process, we expect that it will prepare us to not only be a leader within the world’s largest regulated markets but to also leverage the strength of our combined platform to take advantage of new opportunities and markets.”Poker grew by 7% to $271m, while casino hiked 26% to $102m and betting, with the exception of Australia, improved by 5.4% to $20m.Reflecting on the results as a whole, Regulus Partners said: “These figures demonstrate impressive momentum, but they are largely M&A-driven and also pre-Sky Betting & Gaming.”On opportunities in the US market, the analysts added that Stars has “a potentially powerful position” due to launches of betting in New Jersey in addition to an existing casino and poker presence and releasing all products in Pennsylvania, not to mention the long-awaited expiration of the company’s bad actor suspension in Nevada and, a real trump card, offering “by far the strongest US poker brand”. Revenue hit $412m while EBITDA increased to $168m Financecenter_img Tags: Online Gambling Subscribe to the iGaming newsletter 13th August 2018 | By contenteditor Email Addresslast_img read more


Camelot pledges higher prize payouts on National Lottery


first_img Camelot pledges higher prize payouts on National Lottery Camelot UK Lotteries has announced a series of changes to the National Lottery in an effort to make games more “appealing” to players by pledging to pay out higher prizes more often.From November, players that match five main numbers and the bonus ball will win a fixed prize of £1m (€1.1m/$1.3m), up from £50,000. This will replace the current raffle draw system.The main Lotto draw jackpot will be won or shared more often, with the jackpot only able to roll over five times, compared to around 10 rolls at present. If no player wins the jackpot on a must-win draw, the jackpot will then be shared across all winning cash prize tiers.Other changes include increasing the amount players win for matching five main numbers from an estimated £1,000 to a fixed £1,750, as well as four numbers from £100 to £140 and three numbers from £25 to £30.Players will still win a ‘Lucky Dip’ for matching two main numbers, while tickets will remain priced at £2 per line.The changes come after a wide-ranging strategic review, which Camelot chief executive Nigel Railton said identified key areas where action was required in order for the National lottery to return to “long-term, sustainable growth”.This comes despite Camelot having reported a rise in National Lottery sales to £6.95bn in the 2017-18 financial year, with digital sales reaching an all-time high of £1.65bn.Railton, who took over as CEO on a full-time basis in November 2017, said: “It was clear from the review that we needed to create a more appealing and balanced range of games that offers something for everyone.“In particular, we needed to make our draw games stand out from each other and to give people the ability to play their way – with prizes, chances to win and prices to suit different tastes.”Other changes to be rolled out as a result of the strategic review include staging additional special draws for the EuroMillions, which Camelot said will guarantee more £1m UK winners.As part of this restructure, Camelot will now guarantee only one UK millionaire in each EuroMillions draw, rather than two.In addition, Camelot plans to launch a new annuity game in spring 2019, subject to regulatory approval.Details of the game are yet to be revealed, but Camelot said early indications suggest the top prize will be “thousands of pounds every month for at least 25 years”.Railton added: “The portfolio updates we are announcing today will complement the other initiatives we are bringing in across retail and digital, as well as our ongoing work to make The National Lottery brand more relevant and visible – and will ensure that The National Lottery as a whole continues to deliver for both players and Good Causes alike.”Camelot was last month forced to issue an apology to the Gambling Commission after it was fined £1.15m for historic control and governance failings dating back to 2016.The Commission identified five controls-related matters that it deemed were “sufficiently serious” that payment of a financial penalty would be appropriate.Image: Richard Tags: Mobile Online Gambling OTB and Betting Shops Email Address AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Regions: UK & Ireland Topics: Finance Lottery Strategy Tech & innovation 4th September 2018 | By contenteditor Finance Changes designed to return Lottery to long-term, sustainable growth Subscribe to the iGaming newsletterlast_img read more


SBTech hands top compliance role to Kanter


first_img Subscribe to the iGaming newsletter 5th November 2018 | By contenteditor Email Address Jeremie Kanter will lead global team after joining the company from Playtech Topics: Casino & games People Sports betting Strategy New SBTech compliance chief Jeremie Kanter has been tasked with raising standards globally as the company seeks expansion in new markets.Kanter has spent over 14 years working in the gaming industry, including a 12-year spell with Playtech where he managed the company’s B2C and network services compliance function. He most recently served as vice-president of compliance at blockchain-powered iGaming platform CashBet, having only taken on the role in May. Now with SBTech, Kanter will have responsibility for growing and maintaining compliance across the company’s global business within both new and existing markets where it is active. SBTech has been actively pursuing new partnerships in the US in recent times following the repeal of PASPA. In September, the company went live with sports betting services in both New Jersey and Mississippi. Reporting to CEO Richard Carter, Kanter will manage, enhance and implement new and existing tools, procedures and processes, as well as engage with international regulators to ensure SBTech is meeting regulatory requirements around the world. Speaking about his new role, Kanter said: “SBTech already sets the benchmark when it comes to compliance and I’m looking forward to the challenge of raising those standards to an even higher level across the business’s leading technology, tools and processes. “Compliance is an enabler to sustainably and significantly growing the business and achieving even more success, and I’m very excited with the plans the company has for the future.” CEO Carter added: “Jeremie is a fantastic addition to the senior team and I’m delighted to be able to bring him on board.“His experience in setting the highest standards possible, his meticulous approach to encouraging and implementing best practice and navigating some of the most complex issues in the industry will be vital as we continue to launch in newly regulated and regulating markets.”center_img AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter SBTech hands top compliance role to Kanter Tags: Online Gambling Casino & gameslast_img read more


Grant Williams quits Hills ahead of online overhaul


first_img Grant Williams quits Hills ahead of online overhaul Topics: People Subscribe to the iGaming newsletter 16th November 2018 | By contenteditor Regions: UK & Ireland People Tags: Online Gambling Operator to separate UK and international divisions as part of MRG acquisition AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter William Hill online managing director Grant Williams has resigned after the company began a restructure of its digital division ahead of its £240m acquisition of Mr Green owner MRG.Williams (pictured) has handed in his notice after three years with the company, and having been appointed to his current role at the start of this year. William Hill has announced Phil Walker as its new UK & Ireland online managing director, with the former Ladbrokes executive to lead the team from Gibraltar, while an international hub is being set up at MRG’s base in Malta.iGamingBusiness.com understands that the company has begun the process of recruiting its first international online managing director, who will be based in its new Malta hub.Walker was formerly MD of sports brands at Ladbrokes Coral with responsibility for marketing services across the merged group and joins William Hill from his current role as group COO of the Gibraltar Stock Exchange.Ulrik Bengtsson, Hills’ chief digital officer, said Williams had improved the company’s online business during his tenure as online managing director and chief operating officer of online.He added: “Phil comes to William Hill with a strong track record in the industry and will have a clear focus on the UK and Ireland markets moving forward and will be key to achieving our ambitions for digital growth in the coming years.”In announcing its bid for MRG earlier this month Hills said “the addition of an international hub in Malta and MRG’s operational expertise will further strengthen William Hill’s growth potential”.At the time Hills’ CEO Philip Bowcock added: “MRG will provide William Hill with an international hub in Malta with market entry expertise and strong growth momentum in a number of European countries. William Hill will move from a single brand to a suite of brands that can maximise growth opportunities moving forward in new and existing markets.”Both Hills and MRG expect to publish an official document offer at the beginning of December, with the acceptance period to run from December 10 to January 11, in the hope of completing the deal shortly after. Following the acquisition Hills expects online revenues to climb from 42% of total revenue to around 47%, while the proportion of international revenues will rise from 14% to 21%.Speaking about his new role, Walker said: “It is great to be back in the industry and with one of the most trusted brands in the sector. William Hill has ambitious growth plans as it transitions from its retail roots to become more international and more digital and I am pleased to be joining the team as it embarks on this journey.”Meanwhile, on Friday morning Hills confirmed another new appointment to its digital leadership team, with Charlotte Emery becoming the firm’s global brand and marketing director.Emery, who joins William Hill from British American Tobacco (BAT) after also working in the drinks industry for Bacardi Martini UK, said: “William Hill is a great business with great opportunities ahead of it and I’m looking forward to making my contribution to the long term growth plans the business has embarked on.” Email Addresslast_img read more


Pennsylvania reveals 2018 fantasy figures


first_img The Pennsylvania Gaming Control Board (PGCB) has revealed that fantasy contest providers generated more than $15m (£11.6m/€13.2m) in the state last year, with figures for December revealing an 11.7% month-on-month fall in revenue.The regulator said that adjusted total revenue for fantasy contest providers in December – a notoriously quiet month for operators – was $2.86m, almost exactly the same as the figure in October, before rising to $3.24m in November.The providers’ total revenue in Pennsylvania in 2018 was therefore $15.31m, generating $2.3m in tax income for the state. The PGCB launched a regulated daily fantasy sports market in the US state on April 28 last year.In December, the fantasy market’s two biggest players, DraftKings and FanDuel, continued to dominate despite both seeing revenue decline. DraftKings’ revenue slipped from $1.7m to $1.35m, while FanDuel fell from $1.4m to $1.32m.The nearest challenger was Fantasy Football Players Championship, which posted identical month-on-month revenue of just over $137,000.The latest figures mean that last year DraftKings and FanDuel generated a total of $7.91m and $6.96m in revenue in the state respectively. The combined total of the two fantasy giants accounted for more than 97% of the fantasy contest-related revenue in Pennsylvania in 2018.With fantasy providers’ revenues taxed at 15%, just under $3m was generated for the state last year.The latest figures were published after the PGCB announced last week that sports betting in the state generated revenue for operators of just over $2m from a total handle of $16.2m in December.A total of $722,000 in tax was generated from sports betting via Hollywood Casino at Penn National Race Course – which took the first legal sports wagers in the state in November – as well as Rush Street-operated SugarHouse Casino in Philadelphia and Rivers Casino in Pittsburgh, both of which launched sportsbooks on December 15.Sports betting is currently limited to land-based venues, but Penn National has previously said it expects to start processing online sports wagers in the first quarter of this year. Pennsylvania reveals 2018 fantasy figures Topics: Finance Sports betting DFS Regions: US Pennsylvania The Pennsylvania Gaming Control Board has revealed that fantasy contest providers generated turnover of more than $15m (£11.6m/€13.2m) in the state last year after figures for December showed an 11.7% month-on-month drop in revenue. Tags: Fantasy Sports DFS Subscribe to the iGaming newsletter AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter 23rd January 2019 | By contenteditor Email Addresslast_img read more


Bulgarian lawmaker introduces bill to ban private lotteries


first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Regions: Europe Central and Eastern Europe Bulgaria Bulgarian lawmaker introduces bill to ban private lotteries 27th January 2020 | By Daniel O’Boyle Topics: Legal & compliance Lottery Email Addresscenter_img Subscribe to the iGaming newsletter Bulgarian legislator Valeri Simenov, a member of the National Front for Salvation Party, has introduced a bill that would ban private lotteries in the country and restrict the operation of lotteries to a government-owned monopoly. Legal & compliance Bulgarian legislator Valeri Simenov, a member of the National Front for Salvation Party, has introduced a bill that would ban private lotteries in the country and restrict the operation of lotteries to a government-owned monopoly.Simeonov introduced an amendment to the country’s 2012 Gambling Act which would allow only the Bulgarian Sports Totalizator (BST) to organise lotteries in Bulgaria. However, raffle, bingo and keno games will all be able to be organised privately.The licences for all private lottery games would be terminated three months after the bill is passed, at which point private operators must withdraw from the market.In addition, the bill would require the BST managing authorities to be jointly appointed by the Minister of Youth and Sports and the Minister of Finance.Besides Simoeonov, the bill has been sponsored by Hristian Mitev, Petar Petrov, Rosen Ivanov, Boris Yachev, Slavcho Atanasov and Yordan Apostolov, all of whom are members of nationalist electoral alliance United Patriots with Simeonov.The bill will be examined by the Committee on Budgets and Finance before it may be see a vote in the National Assembly of Bulgaria. The Committee on Children, Youth and Sports and the Committee on Education and Science are also participating in the scrutiny of the bill.In April 2019, Alexander Georgiev was appointed as the new chairman of Bulgaria’s State Commission on Gambling, having previously served as deputy director of the Bulgarian National Tax Agency since May 2017.last_img read more


US and Australian growth boosts Flutter in 2019


first_img Topics: Casino & games Finance Sports betting DFS 27th February 2020 | By contenteditor US and Australian growth boosts Flutter in 2019 Flutter Entertainment has reported a 14.3% year-on-year increase in revenue for 2019, with growth in the US and Australia offsetting declines in its online sports betting and retail businesses. Regions: Oceania UK & Ireland US Australia Casino & games AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Tags: Fantasy Sports Mobile Online Gambling OTB and Betting Shops Flutter Entertainment has reported a 14.3% year-on-year increase in revenue for 2019, with growth in the US and Australia offsetting declines in its online sports betting and retail businesses.However, rising costs including tax hikes in the UK, Ireland and Australia weighed on the operator’s earnings, for which it reported declines.Revenue for the year ended 31 December 2019 grew to £2.14bn (€2.53bn/$2.76bn), driven by a 13.1% hike in sports betting revenue to £1.67bn, and an 18.5% increase in gaming’s contribution, to £473m.On a proforma, constant currency basis, as if all acquired assets were incorporated from 1 January 2018 and all converted into GBP, revenue would have been up 9% year-on-year.The majority of revenue came from the Paddy Power Betfair Online business. The division saw its full-year total rise 6.1% to £1.01bn, aided by the acquisition of Georgia-facing Adjarabet in February 2019, and the Paddy Power brand.However, changes made to Betfair’s sportsbook offering led to sports betting revenue falling 1.8% to £666m. Fixed-odds betting revenue was flat, Flutter noted, with exchange and B2B revenue down 5%, on stakes of £5.18bn, down 4.9%.This was more than offset by a strong year for gaming, for which revenue was up 25.9% to £340m, supported by new advertising campaigns. However, this may fall going forward, as Flutter shifts its focus away from high-value customers to a lower-spending, more recreational player base.In Australia, staking for the year was flat on a constant currency basis (but up in Australian Dollars) to £4.30bn. From a net revenue margin of 10.4%, the operator held £446m in revenue, up 10.7%.The profitability of the division was affected by a shift to point of consumption tax regimes in a number of Australian states, which resulted in cost of sales as a percentage of revenue rise to 40.7%.The year’s star performer proved to be the US, which Flutter noted had been “transformed” by the acquisition of FanDuel in May 2018. This saw sports betting stakes soar from £423m in 2018 to £2.33bn in 2019, with FanDuel’s daily fantasy sports database providing 42% of its US customers.On a reported basis, revenue was up 96.9% to £376m, or 59.3% on a proforma basis. This broke down to £325m from sports betting (up 89.0%) and £51m from gaming (up 155%).The FanDuel sportsbook alone saw revenue clear £100m in 2019, compared to £11m in the prior year, equating to a 44% online market share across the four states it is live. This growth positively impacted casino cross-sell, to the point that by December 2019, 54% of gaming revenue came from sportsbook customers.“In the US, FanDuel finished 2019 as the largest online sportsbook and casino, less than 18 months after the launch of our sports betting operations,” Flutter chief executive Peter Jackson (pictured) said. “Our online market share during 2019 of 44% in the states where we have gone live is testament to the quality of our products, brand and team.“We remain as confident as ever in the size of the prize in the US and in our strategic approach which positions us well for the future.”The TVG advance deposit wagering business and daily fantasy sports, meanwhile saw revenue climb 4% over the year.Finally, retail stakes were up marginally to £1.79bn, with revenue falling to £312m, a 5.7% year-on-year decline.While the operator was less exposed to the effects of the £2 fixed odds betting terminal (FOBT) stake cut than some of its UK peers, revenue from the machines fell 34% from April, when the cut was enforced. Performance improved however, though total retail gaming revenue still finished the year down 25.5% at £82m.Sports betting, on the other hand, saw revenue grow 3.6% to £230m. Flutter noted that its retail betting operation benefitted from rival shop closures and efforts to create a more immersive betting experience in its Irish estate drove growth.Cost of sales for the year, as a result of rises in Remote Gambling Duty in Great Britain, a tax hike in Ireland and the introduction of point of consumption taxes across Australia, increased 38.3% to £650m. This left a gross profit of £1.49bn, up 6.2%.Sales and marketing outlay rose to £465m, while product and technology costs were up 15.3% at £166m. Operating costs grew to £378m, while central costs increased marginally to £55m. The increased in expenditure was due in part to the introduction of the IFRS 16 accounting principle, which changes how liabilities and lease expenses are reported.This left underlying earnings before interest, tax, depreciation and amortisation of £425m, down 5.8% from 2018. After depreciation and amortisation of £145m was stripped out, operating profit for the year stood at £281m, a 21.9% decline.After underlying net interest expenses of £14m and £131m in separately disclosed items – relating to the amortisation of acquisition-related intangibles and transaction fees – pre-tax profit was down 37.9% at £136m. After income taxes totalling £23.8m, Flutter’s net profit fell 38.1% to £112m.“2019 was a very significant year for Flutter, with further successful expansion in the United States, enhancement of responsible gambling initiatives within our business and the announcement in October of our proposed merger with The Stars Group,” chief executive Jackson commented.“I am immensely proud of the group’s performance given the complex regulatory environment.“The entrepreneurial culture of our business and the quality of our people are continuing to drive our global expansion while providing our teams with the opportunities they seek to develop their careers and gain new experiences.”The Stars Group reported its own results for 2019 today (27 February), with a strong performance in the UK and Australia thanks to the acquistions of acquisitions of Sky Betting & Gaming and BetEasy ensuring revenue grew 24.6% to $2.53bn (£1.97bn/€2.32bn). Combined revenue of the two businesses exceeded $5bn. 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CT Governor rejects call for temporary igaming launch


first_img Email Address AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Tags: Mobile Online Gambling Connecticut Governor Ned Lamont has rejected a request to give the state’s two tribal casinos, Foxwoods and Mohegan Sun, temporary approval to launch online gaming during the shutdown enforced as a result of the novel coronavirus (Covid-19) pandemic. Subscribe to the iGaming newsletter Connecticut Governor Ned Lamont has rejected a request to give the state’s two tribal casinos, Foxwoods and Mohegan Sun, temporary approval to launch online gaming during the shutdown enforced as a result of the novel coronavirus (Covid-19) pandemic.The measure was requested by the chief elected officials and chief executive officers of the 22 municipal members of the Southeastern Connecticut Council of Governments (SCCOG). The SCCOG requested Governor Lamont issue an Executive Order to allow the Mashantucket Pequot Tribal Nation-owned Foxwoods and Mohegan Tribe’s Mohegan Sun to launch igaming during the shut-down, which began on 17 March.“It is clear that we are in uncharted territory with this pandemic that our state and our nation are facing,” SCCOG chair Mark Nickerson wrote. “Many millions of people and businesses are suffering and we do not know when this health crisis will end. In our region, two of our largest employers, Foxwoods and Mohegan Sun Casinos, have shut down to help reduce the spread of COVID-19. They have also donated their food and facilities to help the greater good.Nickerson described Foxwoods and Mohegan Sun as strong community partners, which had their operations altered “in an unprecedented way” by the public health emergency.“This revenue source will help them to immediately offset the losses they are facing,” he said. “It will help get people back to work more quickly when the pandemic ends. It will help assure that the many municipalities that depend on revenue from the Pequot Fund are able to continue to receive this much needed funding.”Read the full story on iGB North America. Regions: US Connecticut 14th April 2020 | By contenteditor Casino & games CT Governor rejects call for temporary igaming launch Topics: Casino & games Legal & compliance Tribal gaminglast_img read more


GiG revenue declines in Q1 as business pivots to B2B


first_img Companies: GiG GiG revenue declines in Q1 as business pivots to B2B Casino & games Email Address Gaming Innovation Group (GiG)’s combined revenue declined 3.9% to €31.1m for in the first quarter of 2020, with the business divesting its B2C assets and moving towards a purely B2B focus in the period. Gaming Innovation Group (GiG)’s combined revenue declined 3.9% to €31.1m for in the first quarter of 2020, with the business divesting its B2C assets and moving towards a purely B2B focus in the period.GiG’s revenue from continuing operations declined 8.9% to €11.21m. The business said the decline can be explained by the termination of a B2B customer contract worth around €1.0m for the quarter.However, it brought in an additional €20.0m from the B2C segment of the company. In February, the business agreed to sell its B2C assets, including the Rizk, Guts, Kaboo and Thrills brands, to Betsson for €31m to focus on its B2B and media operations. Upon closing, 63 GiG employees and full time consultants were transferred to Betsson.“In Q1 we signed an SPA with Betsson Group enabling us to successfully divest the B2C division of the business, which completed in April, which not only paved the way for multiple strategic upsides but also allowed us to strengthen the balance sheet and reduce the company’s debt position significantly,” GiG chief executive Richard Brown said.“GiG now has a fully focused, end to end B2B organisation, where we are confident we can continue to deliver a leading product offering and excel in the iGaming industry as a multifaceted B2B provider.”GiG’s continuing costs of sales came to €425,000, up 56.8%, for a gross profit of €10.7m, down 11.6%.B2C costs of sales came to €6.4m, however, for combined costs up 5% at €6.8m and a gross profit of €24.3m, down 6.7%.The supplier’s operating expenses came to €9.8m, up 5.4% or €21.4m when B2C is included, down 0.2%. Of this €9.8m, €1.7m came from marketing costs, up 11.9% and €8.1m other operating expenses, up 4.1%.As a result, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 64.3% to €964,000. EBITDA including discontinued operations came to €2.9m, down 35.6%.The continuing business incurred an additional €5.3m cost in depreciation and amortisation, resulting in a loss before tax and interest of €4.3m, up 30.0% from Q1 2019’s loss. The business said that of this €5.3m, €2.3million relates to amortisation of intangible assets from affiliate acquisitions completed in between 2015 and 2017.The business’s loss before interest and tax when including B2C operations came to €2.5m, up 21.7%.GiG made €350,000 in financial income for a pre-tax loss of €4.0m, up 2.5%. After paying €60,000 in tax, the supplier’s final loss from continued operations also came to €4.0m, up 10.0% from its loss in the same quarter of 2019.When including the B2C segment – which made a €1.8m profit – the business’s combined loss was €2.2m, down 7.9%.After accounting for exchange rate differences from foreign investments, which resulted in a further loss of €1.3m, GiG loss €3.5m for the quarter, up 47.8%.Brown said the business has so far started the second quarter of the year with growth despite the uncertainty created by the novel coronavirus (Covid-19).“We are also seeing that we have started strongly into the second quarter and revenues in the platform services were 40% ahead of the same period last year and 35% over the average of Q1,” Brown said.“Despite the uncertainty in global markets today, I see this as a strong position entering the quarter. Media Services has so far mitigated losses from closure of sports events via organic growth in Q1 which we expect to continue to pay off through the year. “ Tags: Online Gambling 5th May 2020 | By Daniel O’Boyle Topics: Casino & games Finance Sports betting Subscribe to the iGaming newsletter AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitterlast_img read more




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