Month: August 2021

Revenue for the six months to 30 June reached €71.1m (£60.9m/$84.3m), up 30.5% from €54.5m in the first half of 2020.

Search revenue accounted for €66.8m of total revenue, an increase of 34.1% on last year, while Catena also saw paid revenue climb by 10.3% to €4.3m. However, the sale of its Hammerstone business in the fourth quarter of 2020 meant it did not generate any subscription revenue during the half. 

Looking at business segment performance and casino remained the main source of income for Catena, with revenue here rising 23.1% year-on-year to €46.3m, accounting for 69% of all revenue in the half

This, Catena said, was helped by growth in the North American and Japanese markets, but changes to Google search parameters in Italy meant revenue from that country declined.

Sports betting revenue jumped 64.5% to €22.7m, making up 28% of all revenue, as Catena felt the benefits of the return to a more traditional sports calendar, following the disruption caused by the novel coronavirus (Covid-19) pandemic in the first half of last year. 

Catena also noted the launch of legal online sports betting in the US states of Virginia and Michigan as contributors to growth.

However, the sale of the Hammerstone business negatively impacted financial trading, with revenue in this part of the busines down 32.3% to €2.1m, or 3% of overall revenue for the first half. 

Catena also said the decision by Google to suspend paid finance-related advertising by non-registered financial institutions slowed progress in this area of the business but has hope that the situation will change later in the year.

Turning to costs, operating expenses for the period were €39.7m, up 11.2% on last year, but when excluding depreciation and amortisation costs, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) were 44.4% higher at €40.0m.

After accounting for finance costs, pre-tax profit was €26.3m, up 1,095.5% from €2.2m last year. Aside from revenue growth, this was down to a significant drop in losses on financial liabilities and equity instruments when compared to 2020, as these losses were reduced from €10.7m to €2.0m.

Catena paid €2.1m in income tax in the half and after also including a €2.9m loss related to currency translation and interest on hybrid capital structures, comprehensive profit for the period was €21.3m, up 1,421.4% year-on-year.

Looking at the second quarter, revenue for the three months to 30 June was €30.4m, a rise of 9.4% on the corresponding period last year.

Search revenue for the quarter climbed 10.1% to €28.4m, while paid revenue increased by 33.3% to €2.0m, though subscription revenue disappeared after the disposal of the Hammerstone business.

Casino revenue edged down 0.5% to €21.1m, but sports revenue jumped 66.0% to €8.3m following the resumption of sports events, though financial trading revenue slipped 37.3% to €974,000.

Operating expenses were 11.8% higher at €19.9m but adjusted EBITDA was increased to €14.9m, marginally higher than €14.8m in the second quarter of 2020.

Pre-tax profit amounted to €6.9m, compared to a loss of €7.4m at the same point last year. This was again down to a big reduction in expenses related to financial liability and equity instruments, with this dropping from €14.9m to just €800,000.

After paying €779,000 in tax and accounting for €1.8m in costs for currency translation and interest on hybrid capital structures, comprehensive profit for the quarter amounted to €4.3m, compared to a €7.8m loss last year.

“The results demonstrate the robustness of our business model as they came in the face of low seasonal sports activity in the US, the re-opening this year of land-based entertainment venues in North America and other locations, and a sharp increase in product investment in Q2 compared to the same period last year,” Catena chief executive Michael Daly said.

“Looking ahead, we are moving ever closer towards our goal of a globally diverse portfolio with a strong presence in North America and Europe buttressed by positive contributions from Asia, Latin America and Africa as markets there come online. 

“Our transformation plan to prioritise keyword and search engine optimisation and product content development in key markets is on schedule and progressing as expected. 

“We expect the transformation effort to begin delivering a positive revenue impact later this year and to provide lasting impact as we move into 2022 and beyond.”

After reaching a new high in Q1 of 2021, revenue for the second quarter was down to €125.0m, but this was far ahead of any previous quarters.

Both sports betting and online gaming saw revenue dip from Q1. Sports betting more than tripled year-on-year, however, as many sports across the globe had been suspended in Q2 of 2020.

Online gaming, on the other hand, saw a more gentle year-on-year rise of 20.0%, as the vertical experienced a boom in the comparative quarter last year, due to the lack of sports betting options.

While sports betting remained more popular than gaming, its share of the market was the lowest since Q3 of 2020.

Football made up the vast majority of sports betting revenue at 77.6%, though this was down from Q1. Tennis and basketball followed with 9.6% and 8.7% respectively, with no other sport gaining a significant share of the market.

Casino, meanwhile, was dominated by slots, bringing in 76.0% of revenue. French roulette followed with 12.3%, while blackjack brought in 6.4% of revenue.

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All data and figures from the regulator are processed by leading European corporate advisory firm Ficom Leisure, a specialist in all segments of the betting and gaming sector.

Ficom Leisure also provides monthly figures on the New Jersey online market in the New Jersey iGaming Dashboard, Pennsylvania in the Pennsylvania iGaming Dashboard and Iowa in the Iowa iGaming Dashboard, all of which are available on iGB North America.

It also provides quarterly figures on the Spanish online market in the Spain iGaming Dashboard, as well as monthly figures on the Italian market in the Italy iGaming Dashboard.

Kambi will pay SEK150m in cash up front, plus an additional payment of up to SEK120m depending on the performance of the esports business.

Kambi chief executive and co-founder Kristian Nylén said the deal would allow Kambi to expand its presence in esports, an area it had been monitoring closely for some time.

“The esports category has long been under careful consideration by Kambi and we now feel it’s the opportune moment to take the next step and build out our capability in what is a vertical of great global potential. In Abios, we gain the esports DNA we keenly sought, and which complements the heritage and experience we already possess in sports betting.”

Abios, which provides data, odds and visualisations to a number of operators, took in revenue of SEK18m in 2020, from clients such as Kindred, LeoVegas and Pinnacle. Kambi said that following the deal’s completion, it will continue to offer its services to businesses that may not be Kambi clients.

Abios chief executive Oskar Fröberg and chief technology officer Anton Janér will both remain in their roles after the deal.

“Oskar and Anton have built a fantastic team that knows what it takes to succeed in esports and I’m excited to not only see the Abios business grow, but also what the integration of Abios to Kambi’s modular platform will bring to esports betting in the future,” Nylén said.

Oskar Fröberg, Abios Chief Executive Officer said Kambi and Abios share a long-term vision.

“Having built a strong relationship over many years, we believe Kambi to be the optimal partner for Abios,” he said. “Not only do they trust in our people and capabilities, but we share the same values and long-term vision. 

“The opportunity in esports is compelling as ever and we look forward to exchanging knowledge with Kambi and adding their experience and muscle power to our entrepreneurial nature.”

Abios also serves as the official esports data partner of Clarion Gaming. Through this agreement, it sponsors the esports sections on iGaming Business and ICE365.com.

The multi-year agreement  will see Sports IQ supply the FansUnite with pre-match and in-play player prop bets for B2B and B2C purposes.

Sports IQ CEO Omer Dor said: “We’re delighted to be able to support FansUnite’s continued growth with Sports IQ’s products.

“Our innovative sports betting offering will be a great addition to the suite of products that FansUnite deliver to both its B2C customers and B2B partners.”

Read the full story on iGB North America.

Through the new micro-betting feature, bettors will be able to place wagers as the action happens, in new throw-by-throw and pitch-by-pitch offerings.

As per the agreement, DraftKings will apply Simplebet’s micro-betting feature to its NFL, MLB and college football products.

Read the full story on iGB North America.

Veikkaus in May last year was forced to introduce the measure for online customers in line with a decree from the Finnish Ministry of the Interior, aimed at reducing players’ losses during the novel coronavirus (Covid-19) pandemic.

The measure was initially seen as temporary but after the requirement was extended on a number of occasions, the government in June this year made loss limits permanent, with players limited to losing €500 (£428/$587) each day while playing online casino games with Veikkaus and €2,000 each month.

Veikkaus said that the same rules will now be applied to its physical slot machines at stores, kiosks, restaurants and service stations across Finland, as well as at its gaming arcades. 

Customers wanting to play these slot machines must first authenticate themselves, in line with new rules introduced by the operator in January for its slot machines in stores, kiosks, restaurants and service stations. This was extended to Veikkaus gaming arcades from the beginning of July.  

Players must then select a loss limit before they can begin playing the machines. The loss limits will be the same as when playing online casino games with the operator, ranging from between €1 and €500 a day and €1 and €2,000 per month.

“This is a major step on our sustainability journey, the destination of which is to enable our customers to engage in gaming that is even safer than before,” Veikkaus sustainability vice president Susanna Saikkonen said. “We are offering the players a more comprehensive set of tools with which they can control their gaming.

“We want to be a trailblazer of responsible gaming, showing the way to others. Responsible gaming also has major impacts on the economy. We have estimated that the responsibility measures we take reduce our return to the state by €300m annually.”

Veikkaus said since January, physical slot machine gaming has decreased by 30% in Finland. This, the operator said, was down to a 40% reduction in the number of machines it operates compared to the start of 2020, as well as the introduction of the new authentication rules and safer gambling control tools.

“Our customers now lose significantly less money on the physical slot machines than previously,” Saikkonen said. “It is important that the cuts are estimated to hit problematic gambling in particular; it is a sign that we are on the right path towards an even safer domestic gaming environment.”

The study from age verification analyst Serve Legal saw Serve conduct spot checks designed to test whether ‘secret shoppers’ were asked to prove their age at any point during their visit. If a customer was asked to provide identification, the shop would score a pass.

Of those betting shops that were included in the study, 90% passed the test, compared to 83% of convenience stores, 77% of supermarkets and 76% of petrol forecourts.

Serve Legal added that when the tests were first introduced, 67% of betting shops asked the secret shopper for identification.

Michael Dugher, chief executive of British standards body the Betting and Gaming Council (BGC), welcomed the results and praised betting shops for their “robust” approach to age verification checks.

“By any measure, age verification standards have improved since they were first introduced and once again betting shops are leading the retail sector in terms of compliance,” Dugher said.

“I want to pay tribute to betting shop staff who, like other retailers, have endured a very challenging year of closures, restrictions and fast-changing Covid-19 guidance. Despite those pressures, they have remained absolutely focussed on ensuring the safety of customers and the protection of young people.”

Dugher added that online operators are also taking similar measures when carrying out age verification checks with customers, but called on social media channels to do more to help prevent underage gambling.  

“The work we are doing in betting shops is also mirrored in the actions we are taking online, including new tools to prevent under-18s seeing betting adverts and new age verification checks on digital platforms such as YouTube,” Dugher said.

“There’s more to be done and we encourage social media platforms to do more. We also need to ensure that customers continue to stay in the regulated industry – and not gamble with the unsafe, unregulated black market, where there are no checks or protections.”

Scientific Games will deploy its full OpenSports platform solution at the casino, with visitors able to place bets at a retail sportsbook and at self-service sports betting kiosks throughout the venue and at its Casino of the Sun sister property.

Both Casino Del Sol and Casino of the Sun will have access to the full sports betting offering from Scientific Games, including the OpenBet engine and OpenTrade full risk and liability management service powered by Don Best Sports.

The two casinos will allow players to place wagers on the wide range of sports betting markets offered by OpenSports, while providing the operators with a platform that has a proud history of performing at the highest levels during the biggest sporting events across the globe.

Read the full story on iGB North America.

The multi-faceted deal will focus on fan engagement, the organisation’s year-round events and expanding sports betting and education in the state of Arizona, where the Fiesta Bowl is hosted each year.

Caesars will host fan lounges at stadiums for both the Fiesta Bowl and Guaranteed Rate Bowl games, as well as become title partner of the Fiesta Bowl pre-game parties and take part in the annual Fiesta Bowl Kickoff Luncheon as presenting partner.

“We’re thrilled to work with the Fiesta Bowl Organisation on this landmark partnership to bring college football fans closer to the game and build awareness around the importance of responsible gaming practices,” Caesars Digital chief development officer Dan Shapiro said.

“These fans are unrivalled in their passion, and we look forward to offering the Caesars sportsbook to them this fall.”

Read the full story on iGB North America.

The funding round was spearheaded by Parlay Capital Holdings and Patrick Conroy, with a group of other investors providing support.

The money raised will go towards Chalkline’s product and commercial development.

Read the full story on iGB North America.