Month: February 2021

Total revenue for the 12 months through to 31 December amounted to €117.7m (£103.2m/$142.9m), up from €92.3m in the previous year.

Kambi said the majority of 2020 was extremely positive for the business, with a strong start to the year interrupted only by the effects of the novel coronavirus (Covid-19) pandemic, which hindered performance through the cancellation and postponement of sports events in late Q1 and most of Q2.

However, Kambi pushed ahead with expansion in the US, adding market-first launches in Michigan, Illinois and Colorado during the first half.

Kambi followed up on this in Q3, signing partnerships with tribal operator Four Winds Casinos and Churchill Downs Incorporated, as well as launching Penn National Gaming’s Barstool-branded online sportsbook in Pennsylvania.

In Q4, Kambi also went live in Tennessee’s online market and carried out three on-property launches in Michigan and Mississippi, and, outside of the US, struck up a partnership with the Belgian National Lottery. Shortly after the end of Q4, the provider also linked up with JVH Gaming and Entertainment, the largest private casino company in the Netherlands.

“Our strong growth means Kambi is now operating at a scale like never before, which in turn allows the Kambi sportsbook and service to continuously evolve,” Kambi chief executive Kristian Nylén said.

“The powerful partner network we have created, with fantastic partners from around the globe, produces ever increasing amounts of unique data, from which we can draw valuable insights to help us improve and continue to offer a high-performance sportsbook.”

Looking at costs for the year, operating expenses amounted to €85.5m, up 10.1% on the previous year, as Kambi pushed ahead with expansion efforts in the US and elsewhere.

After taking into account finance costs and items affecting comparability, Kambi posted €31.0m in profit before tax, an increase of 127.9% on 2019. Kambi paid €7.0m in tax, and after accounting for losses caused by currency exchange, the provider ended the year with €23.0m in comprehensive profit, up 134.5% year-on-year.

Kambi’s full-year results were helped by a record performance during the fourth quarter, when revenue jumped 75.7% to €46.9m. For the first time, Q4 saw Kambi’s operations in the Americas become its main source of income, with activities here accounting for 58% of gross gaming revenue in Q4.

Operating expenses in Q4 were up 20.5% to €24.7m, and after taking off finance costs, this left a profit before tax of €22.1m, up a massive 268.3% year-on-year.

Kambi paid €4.8m in tax during the quarter and after accounting for positive currency exchange, the provider ended the quarter with a comprehensive net profit of €17.5m, an increase of 272.9% in 2019.

“It’s been a year that’s shown that when working together, we can find the right responses to the toughest of challenges,” said Nylén, who last month reduced his stake in Kambi by 6%.

“The Kambi model is based on partnership, on sharing, on working together with our partners to ensure they have the best chance of success.

“The model was undoubtedly stress-tested in 2020 but it passed with flying colours, leaving me more excited than ever about Kambi’s future.”

Of its $1.06bn revenue, gaming revenue from Genting’s Singapore integrated resort declined 56.9% to $700.8m, after its properties were closed from 6 April tl 30 June.

Non-gaming revenue, from attractions such as Universal Studios Singapore theme part and S.E.A. Aquarium – both part of Resorts World Sentosa – was down 64.8% to $299.4m.

However, Genting partially made up for this decline with a more than 20-fold increase in non-IR revenue to $63.5m. This came from its investment business, along with other hospitality and support services.

While almost all of the operator’s revenue came from Singapore, $288,000 was generated from other Asia-Pacific investments.

Genting’s costs of sales also declined, by 43.2% to $831.9m. However, this decline was much slower than the drop in revenue, meaning gross profit fell 76.8% to $231.9m.

Genting earned a further $12.4m in other operating income and $45.5m in interest income. Its operating expenses came to $183.m, 29.4% less than in 2019.

Administrative expenses made up the large majority of these costs, but fell 32% to $131.5m. Selling and distribution expenses dropped 72% to $17.2m and other operating costs grew more than 400% to $25.6m.

This resulted in an operating profit of $115.8m, down 87.1%.

After financial costs, which were down 80% to $4.0m, and revenue from joint ventures, down 69% to $1.2m, Genting Singapore made a pre-tax profit of $113.0m, down 87.2%. 

Its tax bill totalled $43.7m, 72% less than in 2019. This meant Genting Singapore’s net profit came to $69.2m, a 90.0% decline.

The operator said that two third of this profit could be attributable to the period before the 2020 Lunar New Year weekend in late January. After this point, the “steep onset” of Covid-19 in Asia and resulting travel and casino restrictions hit profits.

Though the business posted a loss for the first half of the year, there were signs of recovery in the latter half of the year, as Resorts World Sentosa reopened  and Singaporeans were offered vouchers to boost the country’s tourism industry. However second half net revenue was still down 49% at $615.5m. H2 net profit, meanwhile, fell 41% to $185.9m.

“We are most grateful to the Singapore Government for providing various support measures in

assisting our resort to weather through this crisis,” Genting Singapore said. “Notwithstanding the Government helping us and the Group’s implementation of cost containment measures, the effects of the Covid-19 global pandemic to our businesses was still devastating.

“This led the Group to record the worst financial performance since the opening of our Singapore Integrated Resort in 2010.”

The operator said that, looking ahead, it was clear that international travel would be unlikely to return to pre-pandemic levels soon. However, it said it would still press on with the $4.5bn “mega expansion” of Resorts World Sentosa, and that it remained committed to building an integrated resort in Yokohama in Japan, where it said it was “encouraged by the steps taken by the government” in launching a bidding process.

Jones is set to take up his role on Entain’s advisory board, along with other former regulators from several US states, after asking for legal clarification from the Louisiana Gaming Control Board (LGCB), of which he was chair for seven years from 2013 to June 2000.

The role will see Jones and others advise the company on best practices relating to gaming regulatory policies in the US as well as regulatory and gaming issues.

Jones contacted Louisiana Ethics Administration Program (LEAP) for clarification and guidance in the autumn as to post-employment prohibitions just months after the state senate refused to confirm his reappointment for a new six-year term.

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Under the terms of the agreement, AYX branding will feature across Asian channels during the club’s home games, courtesy of LED pitch-side displays.

In addition, the agreement will also provide AYX with strategic tools such as use of the Roma brand for use in promotions on digital platforms and social media as it seeks greater exposure across Asia.

Giorgio Brambilla, Roma’s commercial director, said: “This partnership is in line with the club’s ambitions and I firmly believe it will also allow both brands to further develop their commercial strategy on an international level.

“Asia has always been of particular interest to Roma and AYX is the ideal partner to help us grow.”

While Roma is unable to sign domestic gambling partners in Italy due to the Dignity Decree laws introduced in 2019, the club – currently lying fourth in the Serie A table – is able to partner with overseas operators.

The domestic ban applies to all gambling-related products and services across all media platforms – including television, websites and radio – and sports clubs are prohibited from carrying sponsors from the industry. However, it does not apply to partnerships abroad.

Steven Chang, AYX’s chief marketing officer, said: “This partnership is of great significance for both brands, bringing together passionate Roma fans and millions of users of AYX.

“It is hugely positive for our brand to be associated with the AS Roma name, with all its history and significance, and I strongly believe this partnership marks an important step in our growth strategy.

“With AYX’s footprint in Asia growing all the time, this new partnership will open up new opportunities for strategic development and a mutual win-win, ushering in a new era for sports gaming and entertainment.”

The German operator body’s president Mathias Dahms also warned that the strict controls for online casino had already prompted a mass migration of players to unlicensed sites, and urged a rethink on how the vertical is regulated.

Tax figures from the Federal Ministry of Finance reveal that industry turnover declined from 2019’s record €9.3bn to €7.8bn (£6.9bn/$9.4bn). Tax revenue for the year fell 16.2% year-on-year to €389m. 

The industry association noted that if January and February’s figures were taken out, to cover the impact of Covid-19 from March onwards, turnover would have been down more than 20% compared to the prior year. 

In April and May, DSWV president Dahms noted, the market “collapsed completely”. With betting shops closed and sporting events suspended, turnover plummeted 90% year-on-year for April, then fell 75% in May. 

Amid accusations that the gambling industry was profiting from the crisis, Dahms said “the exact opposite is true”. 

It was only in late summer, when the sporting calendar was packed as postponed events took place, that staking stabilised, the DSWV explained. The economic situation, however, remained “extremely tense”, it added. 

“During the current lockdown, all 5,000 to 6,000 betting shops nationwide are closed or have been [offering a reduced service],” Dahms explained. “Approximately 25,000 employees are mostly on short-time work and in fear for their jobs, while the operators fear for their businesses’ futures.”

He said that with betting shops denied state aid, the government must set out a roadmap towards reopening, including the social distancing and sanitisation measures required of operators. 

This financial crisis, the DSWV continued, had been exacerbated by the transitional regulations for online casino that came into force as of 15 October. This has been followed by “massive” migration of consumers to black market operators, mostly based in Asia and the Caribbean. 

A survey of DSWV members claims each operator has seen igaming turnover fall by an average of 54% in the wake of the transitional regime beginning. This requires operators to cap online slot stakes at €1 per spin, with spin speeds to average 5 seconds. 

“It is clear that the strict regulations for virtual slot machines have channeled the market away almost overnight – unfortunately in the wrong direction,” Dahms said. “It is unrealistic to believe that German customers will get used to the excessive restrictions of the State Treaty and come back to licensed providers as long as they can play with competitors who offer them much better conditions. 

“We urgently need improvements to the regulations and a functioning enforcement against illegal offers. Otherwise, established providers willing to regulate will withdraw from the German gaming market.”

The association said 2020 should have been a landmark year for the German gambling industry, thanks to the final agreement for a new State Treaty, and the issuance of sports betting licences after almost a decade of setbacks. 

Instead, thanks to Covid-19 and yet more regulatory intrigue, it the situation now looked far less positive, the DSWV said. 

While 21 sportsbook licences were awarded by the Regional Council of Darmstadt in the fourth quarter of 2020, the licensing process had since ground to a halt. The DSWV estimated that as many as 40 applications had been completed, but were yet to secure final approval.

Dahms blamed the Glücksspielkollegium, a state body that has proved controversial in the past, and has been declared unconstitutional by the German courts, for the current standstill. 

“Instead of a properly regulated market, we currently have competitive distortions of unexpected proportions,” e said. “While the 21 licensees meet strict licence conditions, many other providers operate completely unmolested in the market. 

“We are seeing a massive consumer exodus into the unregulated market. But the completely divided Glücksspielkollegium, as a body of 16 responsible officials from the state interior ministries, has kept the application process pending for months and has not made any further decisions. 

“We therefore urgently appeal to the state governments to put an end to this untenable situation: All open concession applications must be decided immediately in order to create fair market conditions for all providers. It cannot be that the licensed providers are the ones who suffer.”

The Malta-licensed operator will offer up to €1m in equity for investors, with the funds to be used to ensure it has enough capital and is able to build the required infrastructure for operation in Bulgaria.

Sportingwin last month revealed plans to launch in Bulgaria and now in the final stages of securing its licence from the National Revenue Agency.

Should the licence application go through as expected, Sportingwin will become only the fifth licensee in the market.

SportingWin, which is part of the Sporting Group, would also be the first to roll an exchange betting product in the country through the Betfair Exchange.

“We are seeking investment as we want to make sure that we are well capitalised and can deploy our expansion plans efficiently and effectively,” SportingWin’s head of investment and board director, Mark Chakravarti, said.

“We have already had considerable interest in our funding round, and I look forward to speaking with potential investors keen to share in what will be a hugely successful journey for SportingWin.”

Dermot Smurfit, chief executive of GAN, said the supplier delivered uninterrupted performance for all of its US clients during last week’s Super Bowl, experiencing record transaction volumes before, during and after the event.

The supplier has also reached an agreement with existing customer Greenwood Gaming & Entertainment (trading as Parx Casino), to license its iBridge integration framework, which integrates operators’ online and offline loyalty reward schemes, for a period of 10 years.

The agreement will see Parx Casino pay a total licensing fee of $3m, implying a patent license of roughly $75 per reward card. A further amendment to the existing contract with Parx Casino sees the operator released from exclusivity moving forward.

The patent licensing deal with Parx Casino further validates GAN’s intellectual property, he said, and sets a new bar for its value per reward card.

 “We continue to be engaged in numerous conversations with both large and small casino-operators to partner with GAN in order to seamlessly connect their loyal reward-card carrying customers to their various online offerings.”

“As a result, we believe we are on track to license our iBridge patent to additional U.S. casino operator groups in 2021 and throughout the patent’s remaining 13-year duration, which should help us drive long-term value for our shareholders,” Smurfit concluded.

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The mobile-first online casino’s Pay N Play solution, powered by Trustly, means players can play without needing to register. Trustly will provide payment services and KYC and enhanced fraud protection solutions to support this.

Currently, the site is open for Finnish players through a Malta Gaming Authority (MGA) licence. However, Karamba said it had plans to expand across the Nordics as the year goes on.

“Launching Griffon Casino marks a big step forward for Karamba as we enter the Pay N Play market,” Joel Momigliano, vice president at Karamba, said. “We have built the product with player needs paramount – bringing together the best games, on the best platform, with the best processes, giving customers a quick and easy experience that we know they so badly want. 

“We have big plans for the future to expand our Pay N Play offering far more widely and see it as a key part of our product range long-term.”

The site will feature more than 700 games from casino suppliers such as Pariplay, Play’n Go, iSoft Bet, Blueprint, Pragmatic Play, NetEnt, Evolution Gaming and Microgaming, including slots, table game, card game, and poker offerings, as well as live casino. 

“We thought a lot about what would be the best entry into the Pay N Play’ market and came up with a unique all mobile product, combining a slick registration model with an adventure brand,” Karamba head of brand Neal Kydd said. “By embedding our retention effort, we strove to create higher value for the player. 

“What makes Griffon really special is ensuring that players get to feast on the games as easily as possible and are not let down by a poor registration or cash-out experience. We believe the new ‘Pay N Play’ at Griffon offers the best in casino entertainment and is what the future of online gaming could look like.”

According to figures supplied by Ficom Leisure to iGB, across all online verticals the country’s operators pulled in revenues of €359m in the final month of 2020. This represented a 38.7% rise on November’s €258.9m and represented an 86% year-on-year increase.

The exceptional performance was driven largely by online sportsbooks, which posted record-breaking revenue of €177.1m in December, up 59.5% on November’s total and 94.2% on the same month the previous year.

The sharp increase was no doubt fuelled by the pandemic-related closures of retail sports betting outlets. However it’s worth noting that retail bookies had also run at a loss due to the restrictions in place the previous month, though then online market had not performed so strongly.

From looking at the online betting market shares, it’s clear Italy’s retail heavyweights are continuing to migrate their players online. Five of the operators running retail businesses landing ahead of long-time online market leader Bet365 for the second month in a row.

In December it was Goldbet that took the lead, with a market share of 12.8%, followed by Sisal (12.5%), Snai (11.7%), Eurobet (11.4%) and Planetwin365 (11.1%).

Though Bet365’s share of the online market dropped to 10.2%, PokerStars climbed back into the top 10 for the first time in almost a year, proving not all online operators are losing ground to retail bookies.

Despite the strong online performance, the €0.6m loss in retail meant that at €176.5m, the combined sports betting market lagged both the market record of €243.39m set in October and also December 2019’s total of €216.24m.

Online casino revenue also rose to a record high in December, with the total of €153.8m representing a 24.4% month-on-month rise and an 80.6% year-on-year increase.

There was less change in the market shares of operators here, however, with Pokerstars (11.46%), Sisal (9.06%) and Lottomatica (7.93%) retaining the top three spots.

Poker revenues increased further month-on-month in December, though at 8.7% for tournaments and 15.1% for cash games the increases were less pronounced than they had been in November and the totals remained some way off the market highs seen during the first lockdown last spring.

Scroll down for the infographic to track market growth since 2017, as well as shifting revenue shares over the months and years. 

The inquiry also found Crown engaged with junket operators with alleged connections to organised crime without undertaking proper due diligence. Furthermore, it put employees at risk of harm in its promotion of gambling in Mainland China.

The report cited Crown’s “unjustified belief in itself” and “corporate arrogance” among its failings. This led to a lack of thorough investigation of serious claims against its business and an assumption that the claims must have been deceitful.

However, it may still be able to operate the resort if it makes certain changes, including compliance and financial audits and an end to its dealings with junkets. 

The New South Wales Independent Liquor & Gaming Authority formed the inquiry, led by former judge Patricia Bergin, in August 2019.

This followed Asian gaming giant Melco agreeing to purchase a 19.99% stake in CPH Crown Holdings in May 2019 for approximately AUD$1.76bn (£981.9m/€1.06bn/US$1.19bn).

The announcement gave rise to allegations about the businesses in the Australian press, which led to the Authority launching the inquiry.

The inquiry was intended to examine whether Crown was a “suitable” licensee for a new integrated resort at Barangaroo in Sydney, and if not, what changes would be required to make it suitable. It also looked into whether Melco was suitable for its status as a close associate and whether the deal was a breach of the Barangaroo licence.

After the inquiry began, Melco delayed purchasing the second tranche of shares in Crown, then ultimately pulled out, selling the tranche it had already acquired to private equity group Blackstone. 

However, in June 2020, the Authority announced that the inquiry would continue regardless, but would no longer examine Melco’s suitability as a close associate.

The inquiry found evidence of money laundering, both through the accounts of subsidiaries owned by Crown and at Crown’s own facilities. 

These cases included multiple deposits of just under the $10,000 reporting threshold in one day, and a customer for whom ASB bank requested more information regarding transactions worth $15m, which Crown failed to provide.

In addition, Crown had worked with seven different junket operators whose owners or financiers had been accused of links to organised crime. The inquiry found Crown’s due diligence of these junket operators lacking.

Owner James Packer was also found to have undue influence on the business given that he was not a director. This included Packer personally agreeing and executing the sale to Melco without approval from the board.

The operators’ directors were then unable to ensure the deal was not in breach of Crown’s Barangaroo licence.

The inquiry concluded that the evidence regarding money laundering alone was enough to determine that Crown was not a suitable holder of the Barangaroo licence.

Having determined that Crown was not a suitable licensee, the inquiry said its problems “stem[med] from poor corporate governance, deficient risk management structures and processes and a poor corporate culture”.

However, it may still be permitted to operate the venue if it institutes certain changes.

“Crown recognises that there is a need for cultural change,” it said. “However this must come from within Crown rather than from some proposal to the Authority.”

It said that Crown must complete a full audit of accounts, as well as a compliance audit. In addition, any Barangaroo licensee “must provide certification of the completion of appropriate AML/CTF education, supplemented annually”.

The inquiry also recommended that Crown continue to avoid dealing with junkets unless they are licensed by the Authority.

Packer must also stop “remote maneuvering”, referring to his practice of effectively running the company despite not sitting on the Crown board. Crown’s board must also be restructured.

Additionally, the inquiry produced 19 recommendations for the New South Wales casino system as a whole.

The first of these was that the New South Wales Casino Control Act be amended to include an additional object of preventing money laundering. It also recommended the Act be amended to stop casino operators from dealing with junket operators.

The inquiry also recommended the creation of an independent, dedicated, stand-alone, specialist casino regulator: The Independent Casino Commission (ICC). ICC approval will also be required for any holder of a 10% stake in a casino.

Each casino operator must also have an “appropriately qualified” compliance auditor.