Month: August 2021

Earlier this month, Twitch announced a ban on users from sharing links and referral codes to casino sites offering slots, roulette or dice games, which came into force on 17 August.

The KaFe Rocks Group-owned Time2play has offered streamers the chance to use its new platform instead. Its live streaming will run alongside its existing content, which offers reviews of online casinos and sportsbooks.

As well as pledging to be fully transparent with viewers as to how streamers on the platform are funded, Time2play will make streamers adhere to a code of conduct, and flag any content deemed to be in breach of said code.

Time2play chairman Tim Tepass said: “It is an understandable, and inevitable, decision by Twitch. Gambling content should not sit alongside gaming streams that appeal to minors.

“We are offering a dedicated platform that will connect streamers with adult players, who want to be fully informed about online casinos and the games they offer.”

KaFe Rocks CEO Simon Pilkington added: “There is clearly a desire for the content the gambling streamers produce. With audiences frequently numbering in the thousands for the most popular channels. What we want to do is to help ensure that it is shown in the right context and to the right people.”

In the UK, the All-Party Parliamentary Group on Gambling-Related Harm had previously expressed concerns about slot streaming, and urged for it to be included in the Gambling Act Review.

The business’ number of monthly active players quadrupled year-on-year, which helped revenue grow. Its operator trading index, meanwhile, which reflects the revenue operators made from Scout’s products, more than tripled.

Operating expenses, however, continued to outstrip revenue, as they grew 68.4% to SEK29.8m.

Personnel expenses came to SEK10.5m, up 53.5%, while other external expenses were up 77.7% to SEK16.7m. Depreciation, amortisation and impairment expenses were SEK2.6m, an increase of 85.1%.

This led to an operating loss of SEK15.9m, which was 39.4% more than Scout’s operating loss the year prior.

The business made a SEK1.1m loss from financial items, but this was 82.7% less than the loss from these items in Q2 of 2020.

As a result, Scout’s final loss was SEK17.0m, which was 2.8% less than the loss it made in 2020.

For the first six months of the year, Scout’s revenue was SEK27.3m, up 82.6% year-on-year. With costs also rising though, its operating loss was up 34.9% to SEK33.2m.

After a profit from financial items, Scout’s final loss was SEK27.3m, roughly half the loss it made in H1 of 2020.

Scout chief executive Andreas Ternstrom said that the business anticipated lots of room for growth as fantasy sports expands in Europe.

“The European fantasy sports market for real money is still in a very early phase and we are predominantly building the market ourselves through our B2B partners and our B2C brand Fanteam,” he said.

“Our internal assessment of the potential size of the European fantasy sports market remains at between SEK5.5bn and SEK7.0bn on gross gaming revenue level, which means approximately 2-3% of the entire total online gaming market in Europe.”

Ternstrom added that after the quarter ended, Scout took major steps in the launch of its sportsbook product.

“We have after the quarter ended been able to demonstrate our live sportsbook offering on Fanteam, following a two-year trial with pre-match bets,” he said. “With a limited cost base, built on a scalable modular tech framework, we are able to run the sportsbook operations alongside with the core DFS offering, without adding too much additional resources. 

“From the start, this was built to optimise the seamless offering between traditional sportsbook and fantasy sports, something we now have been able to start demonstrating. We received requests from external operators wanting to evaluate our full sports offering and are expecting the first full B2B sports client to be beta launched later this year.”

The bill was designed to repeal paragraph 207(4)(b) of Canada’s Criminal Code, under which consumers were only permitted to wager on at least three games or more. As a result, betting on a single match or event was prohibited.

With single-event betting now permitted, the British Colombia Lottery Corporation (BCLC) has announced it will begin offering single-event sports bets as well as bets on racing and fighting via its PlayNow.com platform. The Ontario Lottery and Gaming Corporation had previously announced that it will also offer single-event bets from today.

BCLC has promised to prioritise player health through its responsible gambling safeguards present on PlayNow.com.

Read the full story in iGB North America.

July’s total surpassed the previous record of $1.23bn set in May this year, making July 2021 the most successful month for the state since it legalized gambling in 1931.

The month and was also up 79.7% year-on-year from $756.8m in July 2020 and 14.3% higher than the $1.19bn posted in June of this year.

Clark County, home to Las Vegas, was responsible for $1.16bn in revenue during the month, while the famous Las Vegas Strip contributed $409.6m in revenue to the monthly total.

Looking at gambling products and services, slots remained by far the most popular form of gambling in Nevada, generating $873.7m in revenue in July, up marginally from $868.1m in June.

Read the full story on iGB North America.

McGuire and Hearne will both exit following the release of Sportech’s interim results on 9 September but will remain available to support the business through to the end of the current year.

Andrew Lindley, who had been serving as chief operating officer at Sportech, will replace McGuire as CEO, while Nicola Rowlands will be promoted from group financial controller to take over as CFO from Hearne.

Sportech said the changes come after a complete evaluation of the group’s business lines, as well as a reduction in the operational scale following the disposal of certain assets.

This included the sale of Sportech’s Global Tote Business to BetMakers, the sale of its Bump 50:50 arm to Canadian Banknote and a freehold property in Connecticut.

“After several years of restructuring the business and pursuing a clear goal of realising shareholder value where possible, that objective has been mostly achieved,” McGuire said.

“Given the major changes in the Company’s business and structure, I believe that now is the right time to hand over the leadership reins to Andrew and Nicola.”

Sportech chairman Giles Vardey added: “The board is extremely grateful to Richard and Tom for their passionate leadership, their sourcing and executing of numerous corporate transactions and their dedication and commitment in implementing strategic objectives over several years. They leave their roles with the thanks and gratitude of many people in the company and our stakeholders. 

“We are also looking forward to working with Andrew and Nicola, who are very familiar with the business and its markets and welcome them to the board.”

The changes in management come after Sportech earlier this month announced plans to return approximately £35.5m (€41.4m/$48.6m) to shareholders via a share purchase offer.

Last month, Sportech last month also began trading its ordinary shares on the AIM, the sub-market of the London Stock Exchange.

Sportech previously said the AIM would offer “greater flexibility” in regards to corporate transactions and also enable the business to agree and execute certain transactions more quickly and cost effectively.

Masci has worked in the gambling industry for more than 20 years, and his teams have worked on a number of popular games including Farmville and the Mighty Cash series.

In the new role, Masci will oversee Boom’s new line of real-money products, both in casino and sports betting.

“Joe is a true creative,” Stephen A. Murphy, chief executive of Boom Entertainment – another High 5 veteran – said. “His track record speaks for itself. But more than that, he is driven and brilliant, and he will do amazing things here at Boom.”

Read the full story at iGB North America

The business comprises the Betsperts app, which connects users to tipsters through a social media interface, the Fantasy Life app – which was acquired in May this year – and live streams of media content.

It claims to have one of the largest betting and fantasy sports audiences worldwide, and expects to surpass one million downloads in the early weeks of the 2021 National Football League season. 

Supporting this growth will be Series A leads HBSE Ventures and Verance Capital. HBSE is the venture capital arm of basketball franchise the Philadelphia 76ers, ice hockey’s New Jersey Devils and English Premier League club Crystal Palace, while Verance Capital has predominantly backed digital media businesses. 

“HBSE Ventures is excited to support Betsperts in their next phase of growth, as they aim to become the social network for sports betting and fantasy sports,” HBSE Ventures partner Andy Roos commented. 

“Sports bettors and fantasy players have no shortage of outlets, but we believe there is a strong need for a solution that cuts through the noise and provides access to the best content, whether user generated or from recognised experts,” he explained. “Betsperts will leverage this content to attract consumers across its complementary platforms and take advantage of the explosive growth the sector is experiencing.”

Previous backers of Betsperts, who invested in its June 2020 seed round, also participated in the Series A round. 

Read the full story on iGB North America.

Switkowski will replace Helen Coonan, who will step down as Crown’s executive chairman and exit its board tomorrow (27 August).

Pending the receipt of probity and regulatory approvals, Crown non-executive director Jane Halton will serve as interim chairman until Switkowski takes on the role.

Currently chancellor of RMIT University and chairman of NBN Co, Switkowski was previously chairman of Suncorp Group, the Australian Nuclear Science and Technology Organisation and Opera Australia. 

Switkowski also spent time as chief executive and managing director of Telstra Corporation and Optus and served as a non-executive director of listed companies Tabcorp, Healthscope, Oil Search, Lynas and Amcor. 

“I look forward to joining the Crown board and working with Board colleagues, CEO Steve McCann, and Crown employees to grow value for shareholders by continuing the urgent work to reform the business,” Switkowski said.

Crown’s board added: ““Ziggy’s experience and capabilities are well suited to meeting the challenges currently confronting Crown. We are determined to restore the trust of regulators, investors, employees, customers and the wider community. 

“We want to acknowledge Helen’s contribution through a particularly challenging period for the business. When Crown needed strong and principled leadership, Helen stepped up. Helen has played a crucial role in stabilising Crown and brought to the business a culture of care, nurturing a more cohesive workplace for our people.”

The appointment comes after Crown last week named Steve McCann as chief executive of Crown Melbourne, following the exit of Xavier Walsh. McCann will combine the role while serving in his current capacity as Crown Resorts CEO. 

Walsh’s departure coincided with an inquiry into Crown Melbourne’s operations. The inquiry has heard evidence that Crown is “not a suitable licensee” to operate in the state and that Crown may never be able to secure the trust of the public with Walsh and Coonan still in place.

When adding in that the operator failed to pay its casino tax bill in full, the inquiry found Crown to be untrustworthy and “unfit to hold a licence”. Crown later paid the remaining AUD$61.0m (£32.5m/€38.1m/$43.8m) of its tax bill.

First announced last summer, the new Gambling Advertising Board (Spilreklamenævnet) will allow consumers and organisations to file complaints about gambling marketing activities.

Elite Gaming, Dansk Automat Brancheforening, Dansk Kasinoforening, Danske Lotteri Spil, Danske Spil, Det Danske Klasselotteri, Landbrugslotteriet, Royal Casino, Varelotteriet and the Danish Online Gambling Association have all signed up to support the initiative.

Judge Jacob Scherfig from Copenhagen City Court will serve as the first chairman of the new organisation. 

Thomas Marcussen, clinic manager for the Research Clinic for Gambling Addiction at Aarhus University Hospital, and Lars Pynt Andersen, an associate professor at Aalborg University, will both join the board.

Other board members include Danske Spil’s legal director Kate Jacquerot, Morten Rønde, director of Danish responsible gaming organisation Spillebranchen, Erik Jensen from Casino Copenhagen and Dansk Automat Brancheforening chairman Gunnar Sørensen.

Jensen and Sørensen will only take part in decision making if a complaint submitted relates to land-based slot machines or casinos.

“In the gaming industry, we are very aware that we bear a responsibility for the users who use games,” Rønde said. “With the Gaming Advertising Board, we now have an effective watchdog, which must help to ensure and maintain a responsible and ethical marketing of games.”

The board has already received a complaint and has chosen to take up another case on its own.

In July last year, new rules came into effect in Denmark that prohibit the display of gambling brands alongside the logos of banks and also prevent products such as loans and credit cards being promoted alongside gambling products.  

In the affiliate marketing giant’s first set of results since listing on the Nasdaq Global Market in July, revenue grew from $6.3m in Q2 2020 to $10.4m (£7.6m/€8.8m). 

This was driven predominantly casino referrals, with the vertical contributing $9.1m of the total (up 63.1%), though the biggest hike in revenue was recorded for sports betting. 

Following the launch of sites such as EmpireStakes, BetArizona and IllinoisBet, as well as the acquisition of two domain portfolios targeting the US, sports betting revenue was up 125.9%, to $1.2m. There was a slight decline in revenue from other sources to $135,000. 

The Gambling.com Group’s revenue came predominantly from the UK and Ireland, which accounted for $5.4m, with a further $2.8m generated from other European markets. North America’s contribution also grew, rising 28.4% to $1.4m, while a further $752,000 came from the rest of the world. 

In terms of where this revenue was generated, hybrid commission deals made up the majority, bringing in $4.6m, followed by cost-per-acquisition commissions, at $3.6m. Revenue share accounted for a further $1.1m, with the final $1.2m coming from other sources, mainly down to the business hitting performance targets for operator clients. 

Turning to outgoings, sales and marketing expenses for the second quarter rose significantly, to $3.1m, with technology outgoings growing to $944,000. The biggest rise was recorded for general and administrative expenses – most likely related in part to its public offering – to $3.4m. 

After $240,000 credited in relation to allowances for credit losses, Gambling.com Group’s operating profit was down marginally, falling 3.2% to $3.2m. 

However, its bottom line was positively impacted by reduced finance-related costs. For example, the business recorded a $2.8m loss on financial liability at fair value through profit or loss in the prior year, with no such charge in the Q2 2021 figures. 

Finance income also rose significantly, from $23,000 to $394,000, and finance expenses declined marginally to $524,000. This resulted in a swing from a $128,000 loss before tax to a pre-tax profit of $3.0m. 

After $582,000 in income taxes, the Gambling.com Group’s net profit for the quarter came to $2.4m, compared to a $428,000 loss for the prior year. Once a further $490,000 credit from foreign exchange translations was factored in, its total profit came to $2.9m. 

Adjusted earnings before interest, tax, depreciation and amortisation (EBTIDA), which also factors back in non-recurring bonuses, one-off accounting costs related to its listing and share-based payments, came to $5.5m, up 46.0%. 

Chief financial officer Elias Mark noted that the second quarter results came in at the high end of its projections. “We also continue to produce strong free cash flow and we remain in a solid financial position after the public offering last month,” he said. 

Chief executive Charles Gillespie (pictured above) added: “Our second quarter results (which were our first interim financial results as a public company) were highlighted by continued strong top-line growth, and, based on our adjusted EBITDA margins, we are among the most profitable names in the online gambling industry.” 

“Since our founding in 2006, we have built an affiliate marketing powerhouse with recognisable brands around the globe,” he continued. “Players trust our services to help them find a safe, fun and legal betting experience while our B2C operator clients utilise our best-in-class technology platform to support their increasingly important customer acquisition initiatives. 

“We are incredibly excited about the next step in this journey as a public company and look forward to sharing the success with our new investors.”

The strong second quarter contributed to revenue for the six months to 30 June more than doubling to $21.9m. After sales and marketing, technology, general and administrative expenses and credit allowances, operating profit for this period also rose significantly, up 149.9% year-on-year to $8.4m.

Once finance income and expenses were factored in, its pre-tax profit climbed to $8.2m, with net profit coming to $6.9m – up 60.5%. With foreign exchange translations factored in, this rose to $5.7m. 

“We are carrying encouraging momentum into the second half of the year,” CFO Mark added. “As a result, we are expecting to achieve or exceed our revenue growth target and adjusted EBITDA margin target for the full year 2021 before the effects of any acquisitions and without incurring further borrowings.”