500.com posts 2020 net loss of RMB138.5m

Net revenue for the 12 months ended 31 December 2020 amounted to RMB21.8m, down 45.9% from the same period in 2019.

After operating expenses of RMB 222.6m, the operating loss for the supplier was RMB190.8m, down 70.3% from 2019. However, when excluding irregular or non-cash expenses, its operating loss stood at RMB135.4m, down 46.3%.

The net loss attributable to 500.com was RMB223.2m, down 65.7% from 2019. If irregular expenses are excluded, its net loss stood at RMB138.5m, compared to RMB245.7m in 2019.

For the three months ended 31 December 2020, net revenue was RMB9m, a slight increase from the RMB8.6m brought in for Q4 2019.

Net revenues during the fourth quarter of 2020 primarily consisted of RMB5.6m in contribution from the company’s online lottery betting and online casino in Europe through its TMG subsidiary, accounting for 62.2% of total net revenues.

The increase in revenue from Q4 2019 was mainly attributable to an increase of RMB2.3m in revenue contribution from TMG, and an increase of RMB600,000 in sports information services in China which have been provided since early 2020.

Operating expenses for the fourth quarter were RMB60.9m, down 34.2% from RMB92.5m in Q4 2019, but up 8.4% from RMB56.2m in Q3 2020.

The year-on-year reduction in operating costs in Q4 of 2020 was caused mainly by a decrease of RMB13.7m in bad debt provision, a decrease of RMB11m in depreciation related to an office lease in Shenzhen and impairment of acquired intangible assets in 2019.

Further savings on operating costs were made due to a decrease of RMB6.1m in rental expenses, resulting from the partial termination of the office lease in Shenzhen and the termination of office leases in Hong Kong and Japan.

500.com saved a further RMB4.9m in expenses for employees with a due a reduction in headcount, which also reduced travelling expenses by RMB1.2m. A change in TMG’s marketing strategy also saved RMB1.1m in marketing costs.

Net loss attributable to 500.com for Q4 2020 – with irregular and non-cash expenses excluded – was RMB37.5m, compared to RMB69.4m in Q4 2019, and RMB31.6m for Q3 2020.

The supplier recently pivoted its business model to focus on the cryptocurrency and blockchain industries, bringing in Xianfeng Yang as its new chief executive in January.

Yang has experience in the cryptocurrency industry, having previously led the construction and operation of the big data centre for 500.com’s subsidiary, Loto Interactive.

500.com announced it would acquire a majority stake in Loto Interactive later in January, increasing its share in the company from 33.7% to 54.2% in a deal worth around HK$105m (£9.9m/€11.2m/$13.5m).

After announcing its intention to purchase around $14.4m worth of Bitcoin mining machines from unnamed sellers in January, it later agreed in February to acquire up to 15,900 more machines in 2021 from two more sellers.

Greentube enters esports market with HERO acquisition

Austria-based HERO operates herosphere.gg, a blockchain-powered esports platform that allows players to create their own contests and compete against others on the outcome of esports games.

The platform, which has a user base of over 300,000 players, uses the supplier’s HEROcoin proprietary virtual token as its primary form of currency.

In addition to esports, the HERO network can be used for any kind of pooling, betting, fantasy or poker systems.

“At Greentube, we aim to hold a leading position when it comes to adopting new trends and technology, and with HERO’s unique products, we have acquired an innovative and exciting business that will see us move into uncharted territory,” Greentube chief financial officer Michael Bauer said.

“The esports and blockchain space offers a lot of possibility for the gaming sector and will open up new doors for us as a company.”

HERO chief executive Paul Polterauer added: “Our objective has always been to change the nature of online betting and bring innovation and new technology into the sector by offering something completely different.

“Being acquired by such a renowned company as Greentube is a huge testament to the hard work we have put into developing and evolving our products. Together with Greentube, we will be able to reach new heights.”

The acquisition comes after Greentube in December announced plans to hire more than 100 new employees at its offices in Austria, Malta and Slovakia as part of its wider commercial expansion strategy.

Salsa names Tromans-Jones as new technology chief

Tromans-Jones will focus on continuing the development of Salsa’s proprietary tech platform, as well as delivering the tech roadmap and leading the provider’s expansion into new, regulated markets from a technology perspective.

He has over 10 years’ experience in leadership and operational roles in both the operator and affiliation sides of the online gambling sector, previously serving as a chief information officer and chef development officer.

“Salsa Technology is a company that I have been keeping an eye on for a while, they have very strong offerings in terms of their gaming content and platform solution, and that has been recognised with the strong portfolio of clients they have been able to amass, especially in recent months,” Tromans-Jones said.

Salsa Technology chief executive Peter Nolte added: “Josh is a superb addition to our Salsa team as he brings a wealth of experience of various regulated markets, both inside of Europe and out.

“He will play a vital role in maintaining our position as an industry leader and delivering on our roadmap. It is vital that we continue to have the technology to meet these changing requirements of the industry quickly and efficiently.”

GambleAware treatment services director steps down

McCracken spent just under three years at the charity, having joined in April 2018 from the UK government’s Department of Health, where he served as head of drugs policy. 

During his time at GambleAware, he led the early development of the National Gambling Treatment Service (NGTS). As part of this effort he commissioned innovative new treatment services, and worked alongside the National Health Service in England, Scotland and Wales. 

His work on the NGTS saw him implement a new data reporting system, which GambleAware is using to develop best practice standards for treatment of those experiencing gambling related harm. 

The charity’s first report on the impact of the NGTS, published in November last year, suggested that 60% of those defined as problem gamblers using the Problem Gambling Severity Index (PSGI) were no longer classed as such after completing treatment.

Of the 9,008 clients that completed treatment, the report revealed that as many as 90% saw their PSGI score reduced. Furthermore, the number of referred individuals that completed treatment rose from 59% in 2015-16 to 69% in 2019-20. 

While a replacement is sought, Dr Jane Rigbye, GambleAware’s director of education will take on McCracken’s role on an interim basis, overseen by new chief executive Zoë Osmond.
Osmond, formerly communications and engagement director for the charity was named CEO of GambleAware in January this year, replacing Marc Etches. Etches revealed in August 2020 that he was to leave the role he had held since July 2011.

Intralot to sell entire stake in Intralot de Peru

The Intralot group has, however, signed a three-year extension of its current contract with Intralot de Peru SA until 2024, to continue providing its gaming technology and support services.

Closing of the transaction is subject to the completion of certain condition precedents, standard for this type of transaction.

The company will follow up with further announcements on the definite shares transfer and possible timing of cash inflow as is required by regulation.

The news follows the extension of several of Intralot’s existing contracts throughout 2020 and 2021.

In January, the supplier extended its contract with Lotterywest, the state lottery of Western Australia, from January 2022 until January 2026.

It went on to extend the provision of its lottery services to Greece’s lottery monopoly OPAP until 2023, and was one of the first companies to receive a Buenos Aires provincial igaming licence in partnership with local operator Binbaires at the start of 2021.

Results published in December showed that Intralot’s revenue for Q3 2020 was down 44.9% year-on-year at €97.8m (£88.9m/$118.6m).

For the nine months to 30 September, revenue was down 52.1% at €266.1m. The figure can be divided into €153.9m from technology sales, down 2.5%, with B2C revenue down 73.0%. Game management revenue, meanwhile, was down 64.6% at €20.6m.

Kindred expands US footprint with CA and AZ market access

The Fort Yuma Indian Reservation extends from southeastern Imperial County in California to western Yuma County in Arizona. 

On this land it operates the Quechan Casino Resort in California, and the Paradise Casino in Arizona. 

The ten-year deal with Kindred allows the Unibet operator to launch sports betting, across online and retail channels, as well as igaming, when regulation permits.

Kindred is currently live in IndianaNew Jersey and Pennsylvania, with access agreed for an additional seven states, including Illinois and Ohio.

“Going west is truly exciting and the partnership with Quechan Tribe of the Fort Yuma Indian Reservation will grant Kindred access to two key states in the US market,” Kindred’s senior vice president for the US Manuel Stan commented. “California is likely to become one of the largest markets in the world, with yearly revenues expected to pass $2bn while Arizona, is expected to reach $200m yearly sports betting revenues at maturity. 

“Securing early access to these two key states puts us in a great position to prepare a successful launch together with a great partner with a strong local presence.”

The tribe’s president Jordan Joaquin added: “The Quechan Indian Tribe of Arizona and California is excited to be partnered with the Kindred Group, a world leading online sports book and gambling company, which will bring an exciting new form of gambling to the public and revenue for our tribal members.”

The Lion by Gamzix

Gamzix grabs the king of the jungle crown with its new African-themed slot. Featuring pitch-perfect sound and cutting-edge graphics, the slot stirs all the right emotions.

You can play a demo of this slot here!

Go-live date (expected): Live
Game special features: Buying free spins, hot bet
Number of paylines: 20
Number of reels: 5×3
RTP% (recorded/theoretical): 96.5%
Variance/volatility: ★★★✩✩
Number of symbols to trigger feature/bonus? Three scatters or players can buy free spins
Can feature be retriggered? No
Number of free spins awarded? 25
Stacked or expanding wilds in normal play? Yes
Stacked or expanding wilds in feature play? Yes
Number of jackpot tiers?: 4

MTV Pimp My Ride by NetGaming

NetGaming has brought the hit MTV series to life by introducing four characters and their cars, all of which can have a makeover during the game’s bonus rounds. Simply select the character you want and ‘pimp up’ their car by collecting spray cans during the free spins. There are many chances to win big with pimped out, free spins and pick’n’click features.

You can play a demo of this slot here!

You can download the First Look Games affiliate pack for this game here!

Go-live date (expected): Live
Game special features: Stacked feature
Free spins
Bonus game
Pick’n’click
Number of paylines: 30
Number of reels: 5×4
RTP% (recorded/theoretical): 96.50%
Variance/volatility: Medium
Number of symbols to trigger feature/bonus? 3
Can feature be retriggered? Yes
Number of free spins awarded? 10
Stacked or expanding wilds in normal play? Single wild
Stacked or expanding wilds in feature play? Stacked wilds
Number of jackpot tiers? N/A
Auto-play function? Yes

Targeting and tailoring: marketing tools for affiliate success

In an effort to dissect igaming’s ever evolving affiliate marketing landscape, our 2020 affiliate survey explored trends, expectations and preferences. To complement the quantitative results that emerged from the survey, we also reached out to affiliates to share their qualitative insights, specifically as it pertains to marketing strategy and promotional efforts.

To provide some context, the affiliate survey revealed that the most popular promotional focuses included organic search (SEO), which was identified as a current strategy by 53% of respondents, followed by social networks (47%) and website ads (40%). When it came to marketing materials, bonus codes were the most popular choice among 51% of affiliates, followed by targeted landing pages at 22%.

With these results in mind, we asked two affiliates, one specialising in online casino and the other online sports betting, to share details on their own approach and outlook regarding marketing strategies.

Tailoring your approach

A veteran affiliate of more than 15 years, Richie Meeuwsen runs frenchroulettelive.com, which focuses specifically on French roulette content for the non-US market. According to the US-based Meeuwsen, the optimal affiliate website requires a holistic approach rather than just relying on a singular strategy.

“The perfect set of marketing materials for me would include an in-depth casino review, targeted banners, targeted landing pages, videos, text links and more,” said Meeuwsen, who expects affiliate websites to include information not always available on a casino’s public site. “The most useful details would be a list of all of the games offered at the casino. It would also be quite beneficial to include the RTP, game provider, a description and any other specifics from which I can sort, categorise and reorganise, according to the topic I am writing.”

Meeuwsen also emphasised the importance of SEO in what he describes as a ‘text-oriented search engine atmosphere’, referencing his well-established industry experience. “I have been doing online casino affiliate marketing full time since 1996. I am a one-person operation that relies 100% upon SEO and content. I have never bought advertising nor created an email list,” he said. 

Offering a different perspective from the online casino vertical is Paul Torzel, who has almost a decade of affiliate experience and runs newbettingsites.uk, a top comparison site for UK sportsbooks. While SEO, website ads and pay-per-click were among Torzel’s preferred promotional focuses, we asked him to explain why social networks, a popular choice overall, was not among them.

“In my personal experience, sports betting does not associate well with traditional social channels, such as Facebook, because users don’t like to mix their personal life with their betting experience,” Torzel said. “We do generate some traffic with Twitter, and we use this channel to promote more of our content. However, most users still prefer Google as their main source when searching for betting products.”

Targeted landing pages and banners

With regards to marketing materials, Torzel is aligned with the large number of affiliates that had bonus codes and targeted landing pages ranked as their top two selections. “The best landing pages tend to have generous offers and are constantly updating those offers to help with conversions,” he said. “Even better are personalised landing pages with responsive updates, based on current events, as well as clearly stated information so they convert better. This is important, as I think over 90% of users check the T&Cs.”

Meeuwsen views targeted landing pages in a similarly favourable light. “Generalised marketing does not work for a small affiliate like me. To be noticed, we must laser focus our efforts on more specific topics than ever before,” he explained. “At a minimum, affiliates should be able to send visitors to those main categories so they can get exactly what they want quicker. If a person did a Google search for apples they would not be sent to oranges, so why should a slot player be directed to poker, sports, bingo, lotteries, etc.?”

One marketing material that Torzel and Meeuwsen had ranked similarly was targeted banners, which Meeuwsen sees as potentially beneficial, provided they are managed properly. “Give me a 300×250 banner that displays the current promotion. Don’t ask me to update the banner – they should do it automatically. Don’t kill the link – they can redirect it to a new page. Also, give me another 300×250 banner that shows at least the general type of game I want.”

Torzel, who ranked text links as his third favourite marketing material, explained why he expects banners to gradually lose popularity in favour of other options, supporting Meeuwsen’s point about not wanting to have to manually update banners. “The biggest problem with banners is that they tend to be heavy and, in many cases, don’t auto-update. Also, we see that people don’t click as much on banners compared to text links.”

Reviews & conclusion

When looking at alternatives to banners, Torzel sees online reviews as one of the potential usurpers. “Users tend to read reviews more and trust more comments from other users,” he said. Although reviews only ranked as the sixth most popular marketing material in our survey, 45% of respondents did have it as one of their top four selections.

Meeuwsen also sees the potential of reviews, as long as they are sufficiently informative. “Unless my website has in-depth information, it will be considered fluff. This should include an overview of the casino with all the details like types of games, deposit methods, security, organisation information, etc.,” he said. “I would rather spend the time to research a specific game or aspect of the casino which will actually be useful to my visitors and to the search engines.”

While only time will tell which marketing materials and promotional strategies rise or fall in popularity, Meeuwsen offered an insightful closing note when asked about the continued strength of bonus codes, highlighting the determination needed by smaller affiliates to achieve success. “If you are a small affiliate, I think your time would be better spent on creating more content that goes beyond bonuses. Game reviews and opinions are a good starting point but going further than that would be even better!”

Erica Anderson’s role focuses on developing the marketing strategy for the Income Access brand. Holding a decade’s industry experience, she also oversees the company’s in-house affiliate management team and its suite of digital marketing services. Income Access manages close to 20 affiliate programmes.

Emerald Gold by Microgaming

With its high win potential, buy feature, and free spins with collected scatters and retriggers, Emerald Gold is an exciting and action-filled game that will lift your spirits. Sláinte!

You can download the First Look Games affiliate pack for this game here!

Go Live Date (expected): 9th February 2021
Game special features: Free Spins,
Buy Feature,
Retriggers,
Huge Max Win
Number of paylines: 40
Number of reels: 5
RTP% (recorded/theoretical): 96.04%
Variance/volatility: Very High
Number of symbols to trigger feature/bonus?: 3-12
Can feature be retriggered?: Yes
Number of free spins awarded?: 3
Stacked or expanding wilds in normal play?: Stacked
Stacked or expanding wilds in feature play?: Stacked
Number of jackpot tiers?: N/A
Auto-play function?: Yes