Month: August 2021

Users and creators will have until 17 August to remove links and referral codes from their channels, after which they could face sanctions.

Twitch added that it will continue to monitor the sharing of other gambling-related content across its platforms and would update its rules again if necessary.

“To prevent harms and scams created by questionable services that sponsor content on Twitch, we will prohibit sharing links and/or referral codes to sites that offer slots, roulette or dice games,” Twitch said in a creator update.

Twitch specialises in live streaming video games including broadcasts of professional esports competitions and events.

Users and content creators are permitted to post links to websites offering certain services and products, with many being paid to share these links.

Sports betting revenue for the year to date came to DKK1.25bn, up 23.5% from the first six months of 2020, thanks in part to the return of a full calendar of sports.

Online casino revenue was DKK1.43bn, a 16.2% year-on-year increase.

Land-based slot machines were unavailable for much of the first half of 2021, due to restrictions related to the novel coronavirus (Covid-19) crisis, which were lifted in May. As a result, revenue from the machines dropped by 57.4% to DKK163m.

Similarly, land-based casino revenue also dropped sharply – by 55.5% to DKK37m – due to closures early in the year.

For the second quarter of 2021, sports betting revenue skyrocketed by 76.2% from low levels recorded in 2020, as the vertical brought in DKK657m.

Online casino, meanwhile, brought in DKK715m, which was 5.9% more than Q2 of 2020, but just below the record achieved in Q1 of 2021.

Slot machine revenue grew by 62.5% for the quarter to DKK163m, while land-based casino revenue shot up by 122.5% to DKK37m.

Looking only at June 2021, sports betting revenue dipped by 4.5% from May despite the presence of Euro 2020, and was down 3.1% year-on-year.

Online casino revenue, meanwhile, came to DKK212m, the lowest total recorded thus far in 2021. However, this was still up 18.2% from 2020.

Slot machines experienced their best month since October 2020, bringing in DKK101m, up 15.1% year-on-year, while land-based casino revenue was at its highest since November 2020, with DKK26m. This was a 62.5% year-on-year increase.

Esports Technologies will support ESIC with its investigations into suspicious betting activity in the esports market, as well as the organisation’s wider efforts to combat cheating and corruption in esports. 

Esports Technologies is the developer behind gogawi.com, an online gambling platform that offers real-money betting on esports events and professional sports from around the world.

The developer is also working on esports predictive gaming technologies for distribution to both customers and business partners.

“We are committed to working closely with ESIC to safeguard the integrity of esports and esports betting,” Esports Technologies chief operating officer Bart Barden said. “As esports continues to rise in popularity, our coalition will work to build fan and bettor trust in esports tournaments. 

“When the public has trust and confidence in the esports industry, every stakeholder wins.”

ESIC commissioner Ian Smith added: “Our anti-corruption supporters play an important role in our mission to deter cheating and fraudulent activity within esports betting. 

“By joining ESIC, Esports Technologies has displayed its commitment to maintaining the integrity of esports.”

Esports Technologies joins the likes of Ultimate Tournament eSportsbook, Cyber.bet and Oddin as supporters of ESIC’s anti-corruption efforts.

AUSTRIA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Licences for sports betting and horse race betting are available for private operators on a regional basis within Austria, whereas poker, casino, bingo and lottery are controlled by the monopoly, Casinos Austria, which has exclusive rights until 2027.
Status: The CJEU has held that the Austrian casino monopoly is incompatible with EU law in a number of cases, although national courts continue to reach conflicting decisions on the compatibility of Austria’s current gambling legislative framework with EU law and the position remains unclear. In February 2021, the Finance Minister of Austria announced a wide-ranging set of proposals to reform gambling in Austria. Proposals include the establishment of a new independent regulator and the introduction of both website blocking and greater player protection measures. A draft law formally setting out the proposed reforms is expected to be published during 2021.

BELGIUM
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: All products are available to private operators except for lotteries, which are reserved exclusively for the monopoly provider. However, online operators need to partner with a land-based licence holder in order to satisfy a local establishment requirement; alternatively, apply for one of the retail licences that can be extended to cover online.
Status: There remain valid arguments that the existing regime is incompatible with Belgium’s EU Treaty obligations. Active enforcement measures against operators and players are in place. A mandatory, weekly deposit limit of €500 for all customers of licensed operators is in effect. A draft law to introduce an advertising and sponsorship ban has been submitted to parliament.

BULGARIA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery (excluding raffles and instant lottery games).
Operator type: All products are available to private operators except for lotteries, which are to be reserved exclusively for the monopoly.
Status: Any operator from an EU/EEA jurisdiction or the Swiss Confederation can apply for a licence. The Bulgarian regulator has awarded approximately 30 licences to date, including to a number of international operators. The government has adopted amendments to the country’s gambling legislation to establish a monopoly on lotteries in Bulgaria, with any existing lottery licences to be revoked with immediate effect following the amendment’s entry into force.

CROATIA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: All products are available to private operators except for lotteries, which are reserved exclusively for the monopoly provider. Private operators can only be licensed to offer online gambling if they obtain a land-based casino or betting licence.
Status: Attempts by the Ministry to update its gambling legislation have been subject to criticism in respect of EU incompatibility issues (including the requirement that only holders of land-based licences can offer online gambling). Regulatory reforms appear to have stalled in the country.

CYPRUS
Regulated gambling products: Sports betting, horse race betting and lottery.
Operator type: OPAP has a monopoly over lottery operations; betting licences are available to private operators.
Status: Cyprus regulated online betting in July 2012, although a licensing regime was not established until 2016. ISPs are obliged to implement blocking measures to prohibit Cypriot residents from accessing unlicensed gambling websites. A betting law, which entered into force in March 2019, replaced the 2012 Betting Law. The provisions of the 2019 law are substantially the same, with minor amends introduced to address EU incompatibility concerns under the previous law (such as the requirement to have a local branch in order to obtain a betting licence). In July 2021 the local regulator introduced new rules and restrictions on gambling advertising.

CZECH REPUBLIC
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: EU and EEA-based operators are able to apply for licences.
Status: The gambling regulatory regime, which entered into force in the Czech Republic on 1 January 2017, allows EU/EEA companies to enter the market. ISP-blocking measures are active in the jurisdiction. Tax rates reportedly increased to up to 30% of GGR for certain online gambling activities from January 2020.

DENMARK
Regulated gambling products: Sports betting, fantasy sports, horse race betting, poker, casino, bingo and lottery.
Operator type: Licences for all gambling products are available to private operators save for lotteries, which are controlled by the state monopoly.
Status: The Danish online gambling regime went live on 1 January 2012. ISP-blocking measures are active in the jurisdiction and the Danish Gaming Authority (DGA) has been granted an injunction to block operators and suppliers that have been targeting Danish customers without the requisite licence. As of 1 January 2020, licensed operators are required to ensure that customers have set deposit limits before they are allowed to gamble, although it is understood this applies to online casino only. The DGA introduced new marketing regulations, effective from 1 April 2020. On 1 January 2021, the rate of tax increased from 20% to 28% of GGR for online gambling activities.

ESTONIA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Licences for all gambling products are available to private operators save for lotteries, which are reserved exclusively for the monopoly operator.
Status: Operators seeking to accept business from players in Estonia must be issued an activity licence for the type of gambling they wish to offer, then an operating permit to provide the services online. A blacklist of operators is maintained and updated by local authorities and ISP and payment blocking is in force. Though some operators argue that the regime is still not compatible with EU law, no notification alleging incompatibility has been issued by the EC since the requirement for licensees to maintain servers in Estonia was removed.

FINLAND
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: All gambling products are under the exclusive control of monopoly provider Veikkaus Oy.
Status: Despite the existence of a national monopoly, EC enforcement action was dropped subsequent to various changes to Finnish laws. Active enforcement measures are in place (restrictive marketing for offshore operators in particular) and the government is exploring measures to further restrict the offshore supply of gambling services. In January 2021, the government opened a consultation on a number of proposals to reform Finland’s gambling legislation. It had been expected that the finalised proposals would be submitted to parliament by the end of June 2021; however, that did not come to pass and the final proposals are now anticipated to be debated in parliament after summer 2021.

FRANCE
Regulated gambling products: Sports betting, horse race betting, poker, bingo and lottery.
Operator type: Private operators can obtain online licences for sports betting, horse race betting and poker. The monopoly has exclusive rights to bingo and lottery.
Status: A regulated market since the introduction of a licensing regime in 2010, following which the EC withdrew its infringement proceedings. A new regulatory authority, L’autorité Nationale des Jeux, took over from ARJEL in June 2020. Responsible gambling advice has been issued to operators and players during the Covid-19 crisis, with a warning against using bonuses to attract new players to poker. In July 2021 a draft law proposing a ban on gambling advertising was submitted to parliament, which (if adopted) is anticipated to enter into force on 1 January 2022.

GERMANY
Regulated gambling products:  Sports betting, horse race betting, virtual slots, online poker and table games. (The German state of Schleswig-Holstein also regulates sports betting, horse race betting, poker, casino and bingo.)
Operator type: Horse race betting licences are available at a regional level. Sports betting licences can be applied for by private operators as of 1 January 2020. Since 1 July 2021, private operators have been able to submit licence applications to operate virtual slots and online poker. Online table games (such as roulette, blackjack and live dealer casino) are reserved to land-based casinos, most of which are state operated. (Private operators can no longer obtain casino licences in Schleswig-Holstein under the existing regime, although S-H has approved legislation to reinstate existing licences until 2021 (with operations allowed to continue in the interim). S-H has also introduced a quasi-licensing regime for sports betting (intended to be of a transitional nature).)
Status: The main legal framework for gambling regulation in Germany has been the subject of much debate and has been heavily criticised by the EC and interested parties/states within Germany for a number of years. Discussions to reform the existing legislation resulted in the approval of the 3rd Amendment Treaty which entered into force on 1 January 2020. The 3rd Amendment Treaty removes the limit on the number of sports betting licences and re-introduces a sports betting licensing process. In July 2021 the 4th Interstate Treaty on Gambling entered into effect which brought new licensing options for private operators for online poker and virtual slots (although stringent restrictions, such as stake limits, shall apply). In October 2020 a transitional toleration regime was introduced which permits operators to offer online poker and slots provided they comply with the toleration regime’s requirements and certain restrictions (such as stake limits); it is anticipated that the toleration regime will remain in place until such time that the virtual slots and online poker market fully launches.

GREAT BRITAIN
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: All licences are available to private operators save for lottery, which is reserved exclusively for the monopoly provider, Camelot.
Status: Any operator that transacts with, or advertises to, British residents requires a licence from the Gambling Commission (GC). Licensed operators are required to source gambling software from GC-licensed businesses. In December 2020, the government launched a “major and wide-ranging” review into the current gambling legislation in Great Britain. It is anticipated that any proposals for reform will be published in a white paper during 2021.

GREECE
Regulated gambling products: Sports betting, horse race betting and lottery.
Operator type: All products are exclusively reserved for the monopoly providers pending the implementation of an open licensing regime, although certain private operators are permitted to operate on a transitional basis.
Status: In 2012, a ‘transition period’ commenced, whereby the Greek government granted 24 transitional licences to operators, enabling them to provide services to Greek residents. Legislation, which introduced an open licensing regime for online betting and “other online games”, including casino and poker, entered into force on 30 October 2019. However, the regulations implementing the new legal regime were not published until August 2020. Operators holding a transitional licence may continue to offer services until a decision is made to grant a permanent licence. In July 2021 the regulator announced that the first cycle of the permanent licensing process had come to an end and that it had issued 15 licences under the permanent licensing regime. It is understood that of the 15 licensees, 13 were permitted to ‘go live’ as of 6 August 2021.

HUNGARY
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Only the state monopolies (Szerencsejáték Zrt. and Magyar Lóversenyfogadást-Szervezo Kft) and local concession companies can apply for a licence.
Status: Amendments to Hungarian gambling law came into force on 1 October 2015 and allow only two land-based casinos to hold remote casino concessions. The regulator has since issued fines, a number of which have been challenged, against unlicensed operators that continue to target the market. In June 2017, the ECJ determined Hungary’s gambling regime to be incompatible with Article 56 TFEU. A subsequent ECJ decision in February 2018 ruled against the Hungarian requirement that online gambling operators must have a land-based licence to offer online gambling services to Hungarian citizens, further strengthening arguments that the current regime is incompatible with EU law.

IRELAND
Regulated gambling products: Online betting regulated since August 2015. Online gaming is not specifically accounted for in Ireland’s outdated legislation and as such is currently unregulated.
Operator type: Private operators can apply for a betting licence.
Status: Ireland has contemplated updating its legislation, which will create a comprehensive igaming regime, for some time. The Gambling Control Bill – the legislation which promises to specifically regulate online gambling – has been subject to continued delay and legislative progress is not expected in the short- to medium-term. Interim reform measures intended to modernise the regulation of gambling in Ireland entered into effect on 1 December 2020.  In February 2021 draft legislation was published (by an opposition party) which, if passed, would restrict most forms of gambling advertising. According to the Department of Justice’s ‘Justice Plan 2021’, it is expected that in Q3 2021 a General Scheme of legislation to reform the licensing regime for gambling will be published.

ITALY
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Fully regulated market, although lotteries are the subject of a state monopoly.
Status: Remote gambling licences are granted within specific application windows. The last tender process for applications closed on 19 March 2018. AGCOM, the Italian communications regulator, has issued sanctions against operators and media companies for violation of the gambling advertising ban (introduced in 2018). Measures to combat unlicensed gambling, including payment blocking measures, entered into effect in October 2019. A tax, which amounts to 0.5% on turnover, was introduced in 2020 on all bets on sporting events (including virtual sports) and is expected to remain in place until 31 December 2021. It is understood that Italian authorities are currently preparing a draft law on a 2023 licensing tender process that will reduce the number of available online licences to 40.

LUXEMBOURG
Regulated gambling products: Lottery.
Operator type: Monopoly.
Status: The general prohibition on gambling appears sufficiently wide to cover all forms of online gambling.

MALTA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Private operators can apply for a local licence (except for lottery products).
Status: In 2018, Malta approved a new Gaming Act that replaced all existing gaming legislation with a single piece of legislation, supplemented by secondary legislation. The Gaming Act, with directives and regulations, became effective on 1 August 2018.

NETHERLANDS
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Monopoly for all products.
Status: The Remote Gambling Act, which introduced a new licensing regime, entered into force on 1 April 2021. Operators may now submit applications for a licence under the new regime. However, operators that have previously directly ‘targeted’ the Dutch market will face a 33-month cooling-off period before being eligible for a licence. While applications have been accepted since April 2021, the market under the new regime is not anticipated to go live until 1 October 2021. In the interim, the regulator is expected to continue to implement enforcement measures against operators targeting Dutch players.

NORWAY
Regulated gambling products: Sports betting, horse race betting and lottery.
Operator type: Online gambling is reserved for the two monopoly providers, Norsk Tipping and Norsk Rikstoto.
Status: The monopoly has extended its offering to include live betting, online bingo and casino games in an attempt to redirect traffic from unlicensed sites. The Norwegian regulator continues to step up enforcement efforts against unregulated operators, local banks and payment service providers. The government has passed amendments to try and stem the flow of gambling supply from offshore, including enhanced enforcement powers to prevent gambling advertising from abroad. Expanded payment blocking provisions entered into effect on 1 January 2020. Draft legislation consolidating Norway’s various gambling laws and further strengthening the regulator’s powers to address unlicensed gambling and the advertisement of the same was submitted to Norwegian parliament for debate and approval in June 2021.

POLAND
Regulated gambling products: Sports betting, horse race betting, casino and poker.
Operator type: Betting licences are available for companies with a representative in Poland. Casino and poker are reserved for a state monopoly.
Status: Legislation enacted on 1 January 2012 permits betting. Online gaming (including poker) is no longer prohibited as of 1 April 2017, although the exclusive rights to offer such products are reserved for a state monopoly. Provisions that provide for the establishment of a blacklist of unlicensed operators and ISP and payment blocking came into force on 1 July 2017 and in February 2021 amendments to such provisions were the subject of parliamentary debate. The blacklist contains more than 1,000 domain names. 

PORTUGAL
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Any EU/EEA operator can apply to be granted a licence for online gambling. Lottery games and land-based fixed-odds sports betting remain reserved for a monopoly.
Status: A regulated market since 2015. Although operators can apply for licences, their Portuguese revenue streams are subject to comparatively high tax rates, particularly in sports betting. Portugal’s 2020 Budget will implement changes to the current taxation rates applicable to selected gambling products offered online. 

ROMANIA
Regulated gambling products: Sports betting, horse race betting, casino, bingo and lottery.
Operator type: Any operator from an EU/EEA jurisdiction or the Swiss Confederation can apply for a licence. Lottery games remain reserved for the monopoly.
Status: The Gambling Law (as amended) introduced a legal framework for a fully regulated online gambling market and requires licences to be held by online gambling operators, as well as software providers, payment processors, affiliates and testing labs. The secondary legislation that fully implemented the current licensing regime came into force on 26 February 2016. The gambling regulator actively polices the regime and notifies ISPs to block blacklisted websites. A legislative proposal to further amend the Gambling Law was submitted to the Romanian Senate in September 2020.

SLOVAKIA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Private operators can apply for licences for online casino and for sports betting licences. Lottery and bingo remain reserved for the monopoly provider.
Status: The Gambling Law came into force on 1 March 2019. The Gambling Law allows private operators outside of Slovakia to apply for licences for sports betting and casino, although sports betting licences did not take effect until 1 July 2020.

SLOVENIA
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Online gambling must be operated by land-based casinos or lotteries and, as a result, only the monopoly holds online licences in Slovenia.
Status: The requirement that only land-based Slovenian operators are eligible for licences is considered by certain industry stakeholders to be incompatible with EU law. Draft amendments to the Gaming Act were published in 2015, which aimed to remove the current local establishment requirement. However, the proposal does not appear to have been submitted to parliament to date. Whether any proposed amendments will ultimately introduce an open licensing system remains unclear.

SPAIN
Regulated gambling products: Sports betting, horse race betting, poker, casino, bingo and lottery.
Operator type: Private operators can apply for licences for all gambling products save for lottery.
Status: Operators must hold a general licence and a specific licence, both issued by the National Gambling Commission, for each activity. Remote gambling licences are granted within specific application windows. The last tender process for applications closed on 18 December 2018. In November 2020, Spain introduced significant restrictions on gambling advertising, sports sponsorship and welcome bonuses. In July 2021, the Spanish regulator published for consultation a draft royal decree on responsible gambling that proposes the introduction of requirements on players to set spend limits prior to play. It is currently expected that the requirements will enter into force in July 2022.

SWEDEN
Regulated gambling products: Betting (including sports, horse race, pool, exchanges), casino, poker, bingo and lottery.
Operator type: Licences are available for private operators.
Status: As of 1 January 2019, Sweden is a fully regulated market. All gambling operators that wish to offer their services to Swedish residents will be required to obtain a licence in order to validly do so (either a ‘betting’ licence or a ‘commercial online games’ licence, depending on the product(s) being offered). Active enforcement measures are in place. Temporary regulations, which were introduced on 2 July 2020 in response to the Covid-19 crisis, restrict, among other things, deposit and loss limits (applicable to casino only) and total login time. The measures were initially due to be lifted by the end of 2020 and then by the end of June 2021; however, they will remain in place until at least 14 November 2021. In January 2021, the Swedish government opened a consultation on certain proposals, such as the prohibition of gambling advertising between 6am to 9pm and the introduction of a B2B licensing regime. In June 2021 the Swedish government also opened a further consultation on proposals to subject gambling advertising to similar requirements that are in place with respect to the advertising of alcohol.  

Wiggin is a law firm dedicated to supporting the media, entertainment and gaming sectors. Its market-leading betting and gaming group provides specialist legal services to an array of gambling industry stakeholders. We advise many of the world’s leading gambling operators and suppliers and also enjoy helping entrepreneurial, interactive start-up businesses. If you’d like to hear more, contact us at gambling@wiggin.co.uk.

The agreement between Caesars and the Texans will see the operator become the official casino partner of the franchise from the 2021 season, which kicks off on September 9.

The deal will focus around the Caesars Rewards customer loyalty program, with this to be integrated into the team’s promotional channels including in-stadium signage and digital and traditional media assets.

Caesars Rewards will also sponsor the free-to-play ‘Schedule Pick ‘Em’ game, whereby fans can submit their matchup predictions for a chance to win prizes such as a paid trip to a Caesars property and game tickets.

In addition, at each home game, one Texans season ticket holder will be selected for a chance to win an all-inclusive trip to Las Vegas. Nevada.

Read the full story on iGB North America.

Schwartz has been promoted to the new role with immediate effect and will also join RSI’s board of directors.

Having founded RSI in 2012, Schwartz served as president since inception, overseeing the product, operations, business development, regulatory compliance and legal functions for the operator.

Prior to this, Schwartz started and led the interactive business for WMS Industries, now Scientific Games, and before joining the gambling industry, was an executive at Telecom Italia Lab USA.

Greg Carlin, who previously led RSI as chief executive, moves into the role of vice chairman.

Read the full story on iGB North America.

Financial terms of the deal were not disclosed, but Bally’s said Telescope’s products will amplify its Bally’s Interactive, BallyBet and Bally’s Sports brands, offering users an integrated experience whereby they can engage on a range of platforms and channels.

Bally’s added that by delivering customised and interactive content, as well as engaging social experiences, Telescope will provide opportunities for Bally’s to attract a younger demographic and augment its customer base.

“Mobile technology continues to play an increasingly significant role in sports betting and igaming, and Telescope brings an expert level of creativity, innovation, and effectiveness in the social and digital media space that we are confident will enhance our customers’ interactivity and engagement with our products,” Bally’s senior vice president of strategy and interactive, Adi Dhandhania, said.

Read the full story on iGB North America.

Under the agreement, RSI will serve as the CLC’s exclusive provider of a sports betting system for mobile, online and retail betting in the US state.

In addition to partnering with RSI to operate its new online and mobile sportsbook, the CLC has teamed with Sportech to offer sports wagering at ten of Sportech’s off-track betting locations in Connecticut

The CLC is permitted to operate up to 15 retail sports betting locations across the state.

CLC president and chief executive Greg Smith said the organisation received 15 proposals from operators before selecting RSI as its sports betting partner.

Read the full story on iGB North America.

Terms of the deal were not disclosed, but the operator said the acquisition is subject to completion, and is set to close later this year.

Entain intends to use Unikrn’s technology to build a new platform for “skill-based wagering”.

Unikrn was founded in 2014 as an operator of esports betting. Entain said its technology and team would help it become a leader in esports.

“These, combined with our capabilities, analytics, regulatory experience, player protection and scale, provide a unique industry first platform to address this exciting and growing market,” it said.

In addition, Entain announced a number of other efforts to focus more on the Esports market. It appointed Justin Dellaro, formerly of streaming platform Twitch, as its new head of esports.

The business said it also saw a “clear opportunity” in social casino, but did not announce further initiatives in this area.

“Entain has built a powerful platform combining our industry leading technology, people and capabilities that is driving significant growth in our existing markets, including the US, but also enables us to grow into new and emerging markets and opportunities related to our core areas of expertise,” Entain chief executive Jette Nygaard-Andersson said.

“Our platform enables us to meet the evolving needs of our customers as we capitalise on the convergence of media, entertainment and gaming and extend into interactive entertainment. This means the markets we address have the potential to be several times larger than today.

“One exciting opportunity is the growing esports skill-based wagering market.  We are building the first scalable platform to address this market and I am delighted that Justin Dellario is joining us to lead our growth in this new area.

“By leveraging the opportunities in front of us, focusing on the customer and expanding our acquisition funnel by creating powerful customer engagement flywheel effects, we have many years of growth ahead that will drive significant incremental value for our stakeholders.”

Today, Entain also reported its financial results for the first half of 2021. The business made £1.77bn in revenue, despite a 34% downturn in Germany.

Revenue for the six months to 30 June amounted to $64.3m, down 5.3% from $67.9m in the corresponding period last year.

Services remained by far the primary source of income for Inspired, with revenue totalling $54.6m, down 6.0% year-on-year, while products sales revenue remained relatively level at $9.7m for the half.

In terms of product, gaming led the way with $27.0m in revenue, ahead of virtual sports on $14.5m, interactive with $11.0m and leisure on $11.8m.

Turning to spending and while both service and product sale costs were reduced, selling, general and administrative expenses were up 6.1% to $43.7m, while acquisition and integration costs reached $1.5m and depreciation and amortisation $25.0m.

This meant Inspired ended the first half with an operating loss of $21.9m, slightly higher than $21.1m last year, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) edged down 1.7% to $11.9m.

Inspired also noted $30.8m in interest expenses, more than double the amount last year, as well as $13.5m in change in fair value of warrant liability, which left additional expenses of $39.0m.

Taking this into account, pre-tax loss amounted to $60.9m, compared to $35.7m. Inspired paid $400,000 and despite benefitting from $5.8m in other income, including $5.5m from actuarial gains on its pension plan, comprehensive loss for the half jumped from $38.4m in 2020 to $54.7m.

Looking at the second quarter, revenue in the three months to 30 June reached $41.5m, up 166.0% on last year, with service revenue hiking 145.1% to $37.5m and product sales 1,233.3% to $4.0m.

Breaking this down by product, gaming revenue reached $16.2m, helped by the reopening of retail locations after novel coronavirus (Covid-19) closures, virtual sports revenue hit $8.2m, interactive revenue $5.8m and leisure revenue, also boosted by retail, $11.3m.

Last year’s closure periods meant service and product sales costs were up, while Inspired also saw selling, general and administrative expenses more than double from $12.2m to $28.5m.

Acquisition and integration costs were just $100,000 and depreciation and amortisation $11.9m, meaning operating loss improved from $13.9m to $9.7m and adjusted EBITDA jumped 289.3% to $8.0m.

However, after accounting for $33.8m in other costs, including $22.2m in interest expense and $10.5m in change in fair value of warrant liability, loss before tax widened from $26.2m last year to $43.8m.

Inspired paid $300,000 in income tax and while it received $1.2m in other income, it ended the quarter with a comprehensive loss of $42.6m, compared to $35.0m in 2020.

Executive chairman Lorne Weil said despite the loss, Inspired was pleased with its second-quarter performance, adding that the reopening of retail will help the business moving forward.

“We are pleased with our second quarter results as the majority of our retail businesses steadily reopened throughout the quarter and our interactive business built upon its momentum coming into the quarter to continue its rapid growth trajectory,” Weil said.

“From what we have seen in July and so far in August, this momentum in the interactive business has continued—leading to record-level revenues in July, notwithstanding the reopening of retail customers during the quarter—while our retail businesses appear to have rebounded quickly to roughly pre-Covid levels, as we had forecasted.”

Weil also referenced Inspired’s advancements in North America, saying this area of the business remains a “key driver of growth opportunities”.

“We see the North American online gaming and betting markets as significant opportunities, and we believe we are well positioned in these markets,” Weil said. “We launched our first games into Michigan in the second quarter and North America has now become our second largest Interactive market, with further opportunities as we continue to reach full deployment across Michigan and New Jersey and seek to benefit from opportunities with several additional states.”