Danish gambling revenue declines by 9.3% in 2020

Revenue for the year declined to DKK5.96bn (£704.2m/€801.8m/$971.8m), with land-based gaming affected by nationwide lockdowns from March to June, then again from November 2020 due to the novel coronavirus (Covid-19) pandemic. 

Sports betting, meanwhile, also had to deal with an almost complete global shut-down of all sporting events from March. 

As the only vertical unaffected by lockdown measures or sporting cancellations, online casino posted year-on-year growth in revenue. 

However, the 5.0% year-on-year rise in revenue to DKK2.45bn was the lowest increase for online casino since the Danish igaming market opened for business in 2012. 

In terms of products, online slots contributed DKK1.82bn, or 74.4% of the vertical’s total. Roulette followed in a distant second on DKK231.9m (9.5%), with blackjack in third on DKK166.6m (6.8%).

All other verticals reported year-on-year declines.

Sports betting revenue finished the year 8.5% behind 2019, at DKK2.50bn. This, however included a record quarterly total for the three months to 31 December.

Sports betting revenue grew 16.6% to DKK724m in Q4, thanks to a later start to the European football season and a packed schedule. 

Over the year, there were only marginal changes in customers’ preferred channel for betting. DKK1.18bn – or 51.5% of revenue – was generated via mobile sportsbooks, with a further DKK771.4m (33.7%) coming from retail outlets. Just DKK338.5m (14.8%) came from betting sites online.

Compared to 2019, this suggests that while mobile’s market share has grown, it has been at the expense of desktop sites. Meanwhile, despite the Covid-19 lockdowns, there was actually marginal growth in retail betting’s share. 

The biggest declines were seen in the core land-based products: slots and brick-and-mortar casino. Slot revenue was down 29.0% at DKK986m, while casino revenue dropped 31.5% to DKK239m. 

Unlike sports betting, neither of these offerings could mitigate the November lockdown, which is unlikely to be lifted before 28 February, with an online offering. 

This meant that revenue from both slots and casino fell sequentially in Q4, having shown signs of recovering from Q2’s first national lockdown in their third quarter figures. 

The country’s national self-exclusion database Register Over Frivilligt Udelukkede Spillere (Rofus), had 25,176 individuals signed up as of October 2020, the most recent figures available. 

Of this number, 16,918 people had permanently blocked access to all gambling products. The remaining 8,258 people had temporarily blocked gambling, for between one and six months. 

IBIA flags 270 matches in 2020 as table tennis and esports alerts skyrocket

The IBIA noted that while the number of reports was significantly lower than in 2019, it was roughly level with the amount recorded in both 2017 and 2018.

The alerts came across 48 different sports, but tennis was the most common with 98, while football was second with 61.

With table tennis and esports becoming much more popular betting markets in 2020 following the suspension of most sport across the globe in efforts to curb the Covid-19 pandemic, both also saw increases in suspicious betting reports.

Table tennis generated 44 alerts, up from 5 in 2019. Of these alerts, 26 were in the second quarter of the year alone. Esports saw 28 reports, compared to just 3 in 2019, with 26 occurring in the middle two quarters of the year.

“2020 was a turbulent year for many sectors including the betting industry, which had to adjust its market offering due to the global sports lockdown,” IBIA chief executive Khalid Ali (pictured) said. “As a result, IBIA focused its integrity monitoring activity to take account of new sports tournaments and competitions that emerged.”

Khalid Ali

The majority of alerts, 141, were flagged for events in Europe, with table tennis in Ukraine and tennis in Russia the two events most likely to generate alerts with 25 and 15 respectively. Table tennis in Russia saw a further 13 alerts. 

Asia followed with 45 alerts, mostly in football and particularly in Vietnam, while North America and Africa followed with 22 each, mostly in tennis with matches in the USA and Tunisia generating high numbers of reports. The remaining 12 reports were in South American football.

A total of 12 teams of players received either sporting or criminal sanctions based on the 270 matches that saw IBIA reports. The IBIA said that its data was used in determining these sanctions, which included lifetime bans, for several of these cases.

IBIA alerts are generated first through member operators, which flag suspicious activity to the association and all other members. If the IBIA determines after a review that the event deserves further investigation, it then raises a suspicious activity report to the sport’s governing body and any relevant regulators.

Ali said that IBIA had been making efforts to improve integrity in events that had seen a recent increase in popularity. These efforts included the creation of new betting data collection best practices.

“The association is seeking to work with stakeholders to address any potential integrity issues that may be associated with these new events through a range of actions, including promoting a set of standards for the collation of sports data for betting,” Ali said.

Stats Perform has become the first data provider to sign up to these standards, which state that all data collection must be carried out by people aged 18 and above, whose identities have been verified and who have passed background checks. Data providers must also make clear the method in which data was collected and must carry out risk assessments for all events in which data is collected.

Capacity limits and mask rules eased at Star Sydney casino

Certain measures within the Greater Sydney region of New South Wales will be relaxed from 12 February, with Star Sydney able to host more customers as a result.

Hospitality venues will be required to operate in line with a ‘one person per two square metres’ rule, which has been reduced from the previous rule of one person per four square metres.

As a result, Star Sydney said it will be able to host up to 10,000 patrons at any one time across its total casino area.

Customers will also no longer be required to wear masks in gaming rooms at the casino, with this rule having also been relaxed by the government.

Easing of restrictions mean the casino will now operate under similar conditions applicable at the property from 7-20 December.

The latest official government figures showed no new locally transmitted cases of Covid-19 were recoded in New South Wales in the 24-hour period to 8pm on 10 February, with just four acquired overseas.

Spribe to expand into British market with new licence

The licence will enable Spribe to roll out its content with operators that also hold a permit to offer online gambling in Great Britain.

Established in 2018, Spribe is best known for its Turbo Games content, which combines social media with traditional gameplay.

Spribe also offers portfolio of skill games and table games including poker, bura, seka, backgammon and domino. Games are designed and developed at Spribe’s studios in Kyiv, Ukraine.

“Securing a UK licence is a milestone moment for Spribe, allowing us to deploy our thrilling, entertaining and unique content to operators in the market for the first time,” Spribe managing partner David Natroshvili said.

“Our games offer something different and have been designed to appeal to the lucrative Millennial player. They have proved to be a big hit in other markets, and we believe they will be just as popular with players in the UK.”

WynnBet conditionally approved for online sports betting in Tennessee

The Sports Wagering Committee of the Tennessee Education Lottery Corporation’s board of directors approved WynnBet to operate its online sports betting app in the state, pending the fulfilment of statutory and regulatory requirements.

Tennessee will become the ninth state in which WynnBet has secured market access, in addition to New Jersey, Colorado and Michigan, where the app is already live, and Indiana, Nevada, Massachusetts, Ohio and Iowa, where the operator expects to launch this year.

The operator has also submitted an application for licensing in Virginia.

Sports betting in Tennessee launched in November last year, and the state became the first to allow mobile and online wagering without a land-based tethering requirement.

Read the full story on iGB North America.

The appliance of science: Clarion to use algorithm-based ICE Connect to match buyers with sellers

ICE Connect, which uses algorithms to scientifically match qualified, senior level decision-makers who have both buying power and immediate requirements with industry leading solution providers, is being curated by California-based Quartz Events, which was acquired by Clarion in 2020.

Quartz is the fastest-growing producer of invitation-only executive summits, with 80% of Fortune 100 companies participating in their events last year.

ICE Connect will run 21 June  – 25 June (Europe focus) and 28 June – 2 July  (North America focus), with a repeat of this schedule taking place in the Autumn.

Stuart Hunter

Expanding on an initiative that will help the international gaming community navigate the challenges presented by Covid-19 and beyond, Clarion Gaming’s Managing Director Stuart Hunter (pictured) said: “It’s been a full year since the international industry last came together at ICE London, and as a team we share the frustration at the continued absence of live events. Event organisers such as ourselves serve as facilitators of opportunity, and I believe that ICE Connect represents the most advanced and powerful opportunity for buyers and sellers to meet in the digital space.”

Outlining how ICE Connect works, he explained: “Qualified delegate attendees from operating companies complete a detailed registration questionnaire, which drills into specific industry challenges and upcoming project needs.

“The model, which has been successfully developed by Quartz, uses highly sophisticated matching algorithms, ranking and scheduling software, to match the operators with relevant, industry-leading solution providers who can solve their challenges and help them run their operations more efficiently.

“As a result, both delegates and solution providers spend 100% of their time in meaningful and productive meetings. In addition, we will also be producing a world-class ‘solutions-focused’ educational programme”

He continued: “From a solution provider standpoint every detail is handled by the ICE Connect team, with a scheduled programme issued three weeks ahead of the event, and a PDF meetings’ agenda and contact database provided a fortnight before the event ‘opens’. This represents a highly efficient way for sellers to connect with really senior, serious and relevant buyers. I am certain that the experience and expertise of Quartz aligned to the insight of the Clarion Gaming team will deliver an exciting new approach to conducting business and one that will prove to be invaluable to all sectors of the industry.”

“Our strategy moving forward is to develop the ICE Connect model and align it with our commitment to live events, enabling us to adopt an agile year-round response to the commercial needs of the industry, and to satisfy demand from all regions of the gambling landscape. There’s nothing like this that’s available in the gaming world.”

Registration for ICE Connect is now open. Attendees can find more information and secure their free place here: ICE Connect Europe; 21 – 25 June 2021 – www.ice-connecteurope.com ICE Connect North America; 28 June – 2 July 2021 – www.ice-connectna.com.  Exhibitor/sponsorship: ian.larcombe@clariongaming.com

Red Rock sees losses widen after Covid-19 hit in 2020

Full-year revenue declined to $1.18bn (£853.5m/€974.1m). Its core Las Vegas locals business accounted for $1.09bn of the total, down 37.8%.

Management fees from properties it operates on Native American lands were down 10.6% at $81.4m, and corporate revenue made up the remaining $6.6m. 

Looking at revenue by source, casino was by far the main contributor, bringing in revenue of $764.3m. Food and beverage revenue was more than halved to $192.9m, as did revenue from its hotels, to $87.0m.

As well as the $81.4m in Native American management fees, Red Rock reported a further $56.3m in revenue from other sources. 

The operator’s chief financial officer Stephen Cootey said its properties had seen post-reopening trends continue throughout the second half, with a younger demographic increasingly visiting the casinos. Spend per visit increased, with more time spent on devices, and the core customer’s return had been “slow but steady”. 

Operating costs for the year declined 34.5% to $1.09bn, comprised predominantly of selling, general and administrative costs, casino expenses, as well as food and beverage spending. However across these main outgoings, spend was down year-on-year. 

Depreciation and amortisation expenses, however, rose marginally to $231.4m. This left an operating profit of $88.6m, down 52.4%, rising marginally to $89.7m after Red Rock’s share of joint venture profits was factored in. 

Interest expenses and other financial costs then fell to $150.1m, leaving a pre-tax loss of $60.5m. After taxes of $114.1m – compared to a $1.7m income tax benefit for 2019 – Red Rock’s net loss for the year came to $174.5m. 

After a $24.1m gain from the operator’s non-controlling stake in other interests, this was reduced slightly to $150.4m, though this was still far above the $3.4m loss reported for the prior year. 

Read the full story on iGB North America.

NHL takes stake in PointsBet as it announces multi-year partnership

The agreement covers both the US and Australia and allows PointsBet the right to use NHL marks and logos, as well as a variety of sponsorship and commercial opportunities across its linear, digital and social media assets, the operator said.

The deal also allows PointsBet to integrate content into live NHL game broadcasts across NHL media partners, including NBC Sports, Altitude TV and other potential future alignments.

PointsBet, NBC Sports and the NHL have already begun installing such integrations for the 2020-21 season, including the incorporation of PointsBet odds, data and insight to run alongside pre-game, in-game and post-game broadcasts.

The operator has agreed to issue the NHL 43,106 fully paid ordinary shares, representing $500,000 based on the 20-day trading volume weighted average price of shares immediately prior to February 5, 2021.

The shares will remain in a holding lock and will be released in equal proportions after 12, 24 and 36 months.

Read the full story on iGB North America.

Kindred crosses £1bn GGR mark thanks to growth in all sectors

Full year revenue grew 23.9% to £1.13bn (€1.29bn/$1.56bn) for the year.

Kindred chief executive Henrik Tjärnström said successful navigation of the novel coronavirus (Covid-19) pandemic helped guide the business to break records in almost all key metrics.

“It’s the strongest financial results we’ve ever delivered at the Kindred Group, by some margin,” Tjärnström (pictured) said.

Casino, poker and other gaming made up the majority of revenue, as this segment grew 34.6% to £642.1m. Sports betting revenue, despite the suspension of almost all global sports for much of the year, also grew, by 12.1% to £488.1m.

Henrik Tjärnström

This sports betting revenue came on stakes worth a total of £5.17bn, which was down very slightly from 2020, as the revenue growth came from increased margins in both live and pre-game bets. Live betting revenue was up slightly at £253.0m and pre-game betting revenue was up 16.4% to £307.4m, with £72.3m in free bets then eliminated from the overall revenue total.

Breaking the combined £642.1m in casino and gaming down further, casino revenue was up 35.0% to £579.0m, while poker revenue grew 54.5% to £32.9m and other gaming revenue increased 13.1% to £30.2m.

Kindred’s overall margin between sports betting and casino was 4.9%. As these verticals combined for revenue to £1.07bn, this meant players staked a total of £21.78bn, 28.4% more than in 2019.

Breaking down revenue by region, Western Europe made up the majority of Kindred’s revenue at £705.4m, a 27% increase, with betting revenue up 10% to £330.1m and casino and gaming revenue growing 47% to £375.3m. Within this region, Kindred said the UK saw particularly strong growth thanks to strong cross-sell, as did Belgium through good acquisition.

The Nordics followed in both segments with a combined £262.2m following 4.0% growth, but while betting revenue grew 10.1% to £95.8m, gaming revenue remained level at £172.4m. This lack of growth may have been in part due to restrictions on online casino in Sweden, including a SEK5000 (£435/€497/$602) mandatory deposit cap for the vertical.

Central, Eastern and Southern European revenue grew to £62.7m in gaming and £39.1m in sports betting for a combined £101.8m, up 28.9%. The rest of the world, with markets including the US, saw betting revenue almost double to £23.1m while gaming revenue grew more than 300% to £31.7m, meaning the region combined for £54.8m, a 177.8% increase.

“The sector also firmly established itself in the US market during 2020, and our Unibet brand continues to deliver here according to plan with a gross winnings revenue contribution of £23.8 million for the full year,” Tjärnström said. “Being one of the largest operators in the world, I look forward to our continued journey in the US as Unibet projects to launch in both Illinois and Iowa during 2021.”

Kindred paid £231.0m in betting duties and £53.6m in revenue sharing payments to affiliates. Direct cost of sales came to £465.0m, and £180.4m in other costs of sales for a gross profit of £665.2m, up 30.8%.

Kindred paid an additional £203.6m in other marketing costs, down 3.5%. Tjärnström said that this was largely because some other sectors had withdrawn from marketing activity due to the effects of the pandemic, driving down demand and therefore prices, but he noted that this effect was short-lived and marketing costs were up again in Q4.

Administrative costs were up 2.3% to £224.1m, with just under half of this total being salaries and the remainder mostly depreciation and amortisation, resulting in an underlying profit before one-off items of £237.5m.

Other costs included £17.7m in amortisation of intangible assets, as well as an £8m (SEK100m) penalty fee from Swedish regulator Spelinspektionen for offering unauthorised bonuses and lotteries without a licence to players, which Kindred said it disputed, and £4.2m in restructuring costs.

This led to an operating profit of £205.8m, up 190.3%. After £5.8m in net financial costs, £8.7m in foreign exchange losses and £1.8m in the share of profits of associates in which Kindred holds a stake, the operator’s pre-tax profit totalled £193.1m, up 187.8%.

Kindred paid £27.1m in tax, for a final profit of £165.2m, 191.8% more than in 2019.

Looking just at the fourth quarter, Kindred revenue was up 54.4% to £364.7m. High margins meant sports betting made up almost half of this at £177.2m.

Its gross profit came to £221.6m, up 70.5%, while its operating profit grew more than seven times over to £99.7m.

After tax, Kindred’s profit for the quarter was up 678% to £84.9m.

Earlier this week, Kindred published its first report on its share of revenue that came from high-risk customers as part of its efforts to reduce this figure to zero by 2023. For the fourth quarter of 2020 this was 4.3%.

The business also announced a partnership with the Quechan Tribe of the Fort Yuma Indian Reservation to secure market access to California and Arizona this week.

What’s in a game?

As the pandemic wiped most sports betting markets off the schedule in the early part of 2020, there was a widely-reported shift of gambling spend into other verticals.

Across many regions of the world, much of the cash bettors would usually pour into sports was funnelled into online casino and in particular, there was a widespread resurgence in the popularity of poker.

But in Portugal it wasn’t so much poker that grabbed players’ attention during the second and third quarters of last year, but a new game – to online at least – called Banca Francesa.

The Gaming1-designed version of the popular Portuguese table game launched in April last year and quickly gained traction, despite being offered by just one operator, Estoril Sol Digital.

Figures released last month by Portuguese regulator Serviço de Regulação e Inspeção de Jogos (SRIJ) showed that in the third quarter of last year, Banca Francesa accounted for 3.1% of casino turnover, up from 2.8% in the second quarter. 

Though the numbers might seem small, they are not insignificant when one considers that tournament poker accounted for just 1.9% of the Portuguese casino market in the third quarter, and cash poker 4.8%.

And poker, of course, is offered by multiple operators whereas Banca Francesa is available with just one. 

One question might be whether or not its success was a happy accident thanks to its launch during the peak of the pandemic. The answer to that is likely to be no, given its market share increased between the second and third quarters and also the fact it has since become the top performing game for Estoril Sol.

Gaining an edge?

A bigger question with more widespread implications might be whether or not this type of extremely localised game offering could help operators get an edge in other developing gaming markets. Despite its French name, the game originated in Portugal and has thus far been little played in other markets.

While declining to give specific numbers, Estoril Sol Digital CEO Rui Magalhães says the game is definitely attracting new players to the site. “We have newcomers that join specifically to play and have fun with our Banca Francesa.

“The game is a major attraction in the physical casinos and we wanted to bring that to our online, with an interesting idea that the concept could be a success – and it is.” 

Gaming1 chief operating officer and co-founder Sylvain Boniver says the idea for the online game came about as part of the company’s usual process of researching ways to help its land-based partners successfully move into online. It was then in development for more than a year.

It has been partnered with Estoril Sol since 2016, when it helped the digital branch of land-based operator Estoril Sol Group launch the country’s first licensed online casino site.

“We were visiting the land-based casinos for our partner in Portugal and that showed us that Banca Francesa was the most popular table game in Portugal, so we decided to adapt it for online and this is how the idea was born,” he says.

Because it is the first online version of the game, he says there were challenges in terms of regulation. “The regulation is very strict in Portugal and you have to reproduce exactly the same behaviour online that is in land-based for a new type of game.”

Given the game’s popularity, it is perhaps unsurprising Gaming1 has received interest from other operators in the country. 

For now, however, Banca Francesa remains exclusive to Estoril Sol, which Magalhães says, “is surely an advantage, as are all the exclusive games in our offer”.

The land-based transition

Part of this advantage comes from the opportunity to pull in new players and then cross-sell other products and Magalhães says the majority of Banca Francesa players are also playing other games on the site. 

Boniver says the strategy of helping land-based casinos transition into the online space with local game offerings is one it has also used in other countries.

“We are the leader in Belgium based on the fact that we developed some Belgian games from land-based and put them online.”

However, Boniver’s colleague Jean-Christophe Choffray, Gaming1’s deputy CEO and head of gaming, says in the past Gaming1’s efforts in this regard have been mostly related to slot games rather than table games.

“If you look at the land-based gaming market in countries such as Belgium, you have got three different types of licence in land-based: you have class A, where all the slot machines are the same and if you look at a slot machine in a casino in Germany it is exactly the same as a slot machine in Las Vegas; but you have also class B and class C and class B is generally always specific to a market.

“It is a very different experience for the players and at Gaming1 we try to recreate this experience online in selected markets where we operate, such as Belgium, where we have designed [these type of class B] games, the Netherlands, which also has a big gambling hall industry, and Spain, which has a big street industry.”  

Choffray says he now sees further potential for localised table games. “The market where we plan to expand is the US and in the US, in the land-based casinos there are several different types of poker and blackjack with a lot of specifications. Sometimes they are just in one state so of course we will explore the specific possibility to develop these table games for online.”

He points out, however, that there are many other factors involved in land-based operators making the transition online seamless to players.

“All land-based players, when they become online players, like to recognise the environment and the environment is the brand, the atmosphere, the camaraderie with customer support – the fact that the player can address some question to the employee of the land-based casino – as well as the type of game he or she chooses to play.”

Magalhães echoes this sentiment and says it’s not enough to simply have a particular game. “There’s a lot of complexity in all the other variables we manage to ensure our online casino leadership in a fast-growing market [given] the number and quality of new incoming operators.”

While a localised game undoubtedly needs support to succeed, the example from Portugal seems to suggest a game peculiar to one market could help operators that have previously focused on land-based operations attract more players online. Given the integral role land-based operators are playing in the expansion of both the US and Latin American markets, it’s an example others may do well to follow.