Month: October 2021

This was a rise of 6.7% compared to Q3 2020.

Gross gaming sales amounted to SEK4.72bn. This was a rise of 5.2% year-on-year. Winnings paid came to SEK2.75bn, SEK110m more than Q3 2020. This left the overall revenue at SEK1.97bn.

The Tor lottery division generated the largest amount, at SEK1.55bn. This was a 2.2% rise compared to Q3 2020.

Sport and casino made up SEK526m of the total revenue, up 7.3% year-on-year.

The operator’s Casino Cosmopol land-based casinos & Vegas-branded slot halls made up the remaining SEK292m, which was a significant 64.9% increase from the novel coronavirus (Covid-19) hit 2020.

Other income sources generated SEK52m, up 36.8%.

However, expenses, including gambling tax at SEK375m and gaming costs at SEK259m, brought the total net sales to SEK1.39bn for the quarter. Additionally, personnel costs reached SEK217m.

Depreciation and amortisation was SEK92m and further expenses added up to SEK389m in total. This brought the total operating profit to SEK696m, up 31.0% year-on-year.

Following tax payments of SEK144m, net profit for the period came to SEK552m, a 25.1% rise compare to Q3 2020.

“During the third quarter, all our operations were finally up and running again – for the first time in more than fifteen months,” said Patrik Hofbauer, CEO of Svenska Spel.

“With all our operations open, more employees back in our offices and high energy in the organization, the outlook for the entire Swedish gaming sector looks positive.”

This addition means that so far in the financial year, revenue has totaled SEK5.91bn, up 6.5% year-on-year.

Last week, Hofbauer commented that a proposed “special moderation” of gambling advertising by Sweden’s Ministry of Finance could have “unwanted consequences”.

The Unibet operator first announced on 30 September – just before the Dutch regulated online market opened – that it would temporarily prevent any Dutch players from using its sites. At the time, it said this was a temporary measure only as it sought legal guidance, and that it expected this guidance to prove it may accept customers from the Netherlands as long as it does not target them with advertising.

The business added at the time that it expected the move will cost the company £12m per month in earnings before interest, tax, depreciation and amortisation (EBITDA) before any potential mitigation actions.

However, it now said that it will block these customers until at least Q2 of 2022, suggesting a total EBITDA hit of more than £72m.

 The operator said it will submit a licence application this quarter, having already taken steps to apply.

“Kindred is prepared for the Dutch licensing process under the Remote Gambling Act, and has been working on the preparations for a Dutch licence application including successful completion of the required external audit,” it said.

The operator was one of many that blocked Dutch customers as the market opened. LeoVegas, Betsson, Entain and Casumo did likewise. 

Only ten operators were granted licences in the first round of approvals, with Bet365, Tombola and Holland Casino among those permitted to launch.

Revenue for the three months to 30 September reached €41.6m (£35.1m/$48.3m), up from €28.1m in the corresponding period last year.

Kambi said this increase was the result of its expanding operator network, having averaged approximately one partner launch per week during Q3. These included launches with Penn National Gaming’s Barstool sportsbook app across the US states of Arizona, Colorado, New Jersey, Tennessee and Virginia.

Other US online launches in Q3 included Kindred’s debut in Iowa and Parx’s entry into the Michigan market, as well as two retail partner launches with an on-property book at Penn National Gaming’s new Hollywood Casino York property in Pennsylvania and Churchill Downs’ sportsbook in partnership with the Tonto Apache Tribe’s Mazatzal Casino in Arizona.

In Europe, Kambi and the Belgian National Lottery (BNL) began the roll-out of the new retail Scooore sportsbook across the country, having previously launched the online sportsbook earlier this year.

Other major highlights during the quarter included Kambi’s acquisition of esports data and technology provider Abios in a deal worth up to SEK270m, while shortly after the end of Q3, Kambi supported partner BetEnt with its launch in the newly regulated Dutch online market.

Also after the quarter, Kambi supported Rush Street Interactive with its online and retail launches in the state of Connecticut, marking the 16th US state in which Kambi has launched. In addition, Kambi launched online and in retail with Racing & Wagering Western Australia (RWWA) via the operator’s TABtouch-branded sportsbook.

However, despite ongoing expansion in the US, Europe was Kambi’s main region for revenue in Q3, generating 55% of total revenue for the quarter, ahead of the Americas on 43% and other markets on 2%. This was the first quarter that the Americas were not the main source of income since Q3 of last year.

“I’m pleased to report another excellent quarter for Kambi, with strong financial results against tough 2020 comparables, which is a testament to our robust business model and the hard work of our staff across the world,” Kambi’s chief executive Kristian Nylén said.

“Kambi Q3 revenue was up 48% year-on-year, operating margin was once again strong at 35% and we continue to be highly cash generative.”

Looking at expenses for Q3, costs were 25.1% higher at €26.9m, though Kambi noted that the comparable period last year saw it spend less as a result of cost-saving initiatives related to the novel coronavirus (Covid-19) pandemic.

After including €260,000 in finance costs, this left a pre-tax profit of €14.4m, up 125.0% year-on-year, while earnings before interest, tax, depreciation and amortisation (EBITDA) was also 85.5% higher at €20.4m.

Kambi paid €2.6m in tax, leaving a net profit of €11.9m, an increase of 133.3% on last year.

In terms of its year-to-date performance, revenue for the nine months through to the end of September was €127.5m, up 80.1% on the same point last year and more than the revenue total for all of 2020.

Pre-tax profit was 448.9% ahead of last year at €49.4m, while EBITDA hiked by 187.3% to €65.8m and net profit 492.7% to €40.3m.

“In summary, we’ve performed well, and the future looks bright. We currently have a sales pipeline as strong and varied as I’ve known it,” Nylén said. 

“As the global trend of regulation continues, we are in a great position to capitalise on future opportunities as and when they arise, and we have announced the implementation of a share buyback scheme.”

Nylén also referenced Penn National Gaming’s acquisition of Canada-based theScore and the combined business’s plans to develop its own sportsbook. Previously, Penn National had been using Kambi’s platform to power its Barstool sportsbook.

“It’s incredibly difficult, as well as costly, to build, maintain, and continue to develop a first-class sportsbook, as we’ve seen with unsuccessful efforts of others in the past,” Nylén said. 

“In the meantime, we’ll continue to support their growth with our fantastic platform and service we have built over many years, which remains very much of interest to our growing list of prospective partners.”

The PlaySugarHouse retail sportsbook at Sports Haven in New Haven is the first of 15 planned by RSI and the Connecticut Lottery.

The companies plan to launch retail sportsbooks at Bobby V’s Restaurant & Sports Bar locations in Stamford and Windsor Locks “in the coming days”.

“This has been a long time coming for Connecticut players, and we’re honored to be the only statewide retail operator,” said Greg Smith, president and CEO of the Connecticut Lottery Corporation.

Read the full story on iGB North America

Live5 was certified by the British Colombia Gaming Enforcement and Policy Branch (GEPB).

The supplier already holds a licence in Quebec, through Loto Quebec.

Read the full story on iGB North America.

In a preliminary results announcement, AutoLotto, operating as Lottery.com, said revenue is likely to reach between $22.0m (£16.0m/€19.0m) and $24.0m for the three-month period.

Should Lotto.com achieve the higher end of this forecast, it would represent a 135% rise on the $9.3m in revenue it achieved during the second quarter of the current year.

Lotto.com did not go into full detail but did state that this “strong” growth was driven by increased sales in its B2B segment.

Read the full story on iGB North America.

Christensen brings experience from the tech and entertainment sector to PointsBet, having held roles at Facebook, National Geographic, and Netflix.

Christensen will oversee PointsBet’s marketing strategy and work with partners to gain market share in US sports betting markets. Christensen will report to PointsBet’s US CEO Johnny Aitken.

At Facebook, Christensen was the head of U.S. brand and consumer marketing, where he led the company’s More Together campaign. He also spearheaded marketing for the launch of Facebook Watch. Prior to his work at Facebook, Christensen led the digitization of National Geographic and oversaw various marketing initiatives at Netflix.

Read the full story on iGB North America

Lewis will preside over Hub88, OneTouch and the Bombay Group as part of Yolo’s restructuring.

Yolo Ventures, the B2B and partnerships division of Yolo Group, will also invest additional capital to aid the growth of the Hub88 content aggregator platform.

Lewis takes up the position having most recently served as the chief commercial officer at Pariplay.

Lewis said: “I’ve watched the remarkable growth of Yolo Group over the past few years with interest. Hub88, OneTouch and more recently the Bombay Club live studio are changing the game with new approaches to old challenges. It’s a real honour to join the team.”
Yolo’s corporate restructuring comes after the company rebranded from Coingaming earlier this year.

Yolo CEO Maarja Pärt added: “We’re putting into place a world-class team to take our B2B gaming businesses to the next level, and Christine is a vital part of it.

“Her experience at some of the biggest names in our industry stands her apart, and she’s exactly the type of disruptive thinker we welcome at the Yolo Group. It’s great to have her on board.”

Under the deal, which extends a relationship that began 2012, Sportradar will continue to support the ITF with data requirements, as well as work with the organisation on integrity-led projects.

This will include the development of a technology infrastructure to further enhance integrity protection at World Tennis Tour events, as well as further investment into accreditation, control systems and personnel to safeguard the integrity of tour events.

The ITF will also leverage Sportradar’s integrity services by including its Universal Fraud Detection System bet monitoring service to analyse global betting patterns, as well as Sportradar’s ‘Intelligence and Investigations’ capabilities.   

In addition, Sportradar will create a suite of enhanced digital assets connecting tennis fans with new websites, apps and fan-centric products to provide a more dynamic user experience – all of which will be powered by Sportradar’s data. 

“We look forward to our continued partnership with Sportradar as we deliver technology that will help to ensure the protection of integrity and data as well as a digital platform that will enhance the fan experience around ITF World Tennis Tour and major events, including the Billie Jean King Cup,” ITF president Dave Haggerty said.

Sportradar chief executive Carsten Koerl added: “Sportradar is the world leader in helping leagues and federations across the globe maximise the value of their data whilst ensuring the integrity of sport. 

“We’ve partnered with the ITF for almost a decade, and the extension of our agreement is a sign of their continued trust, which is built on a shared commitment to innovation and to driving increased fan engagement. 

“We are passionate about tennis and I’m very proud of the benefits this partnership will bring to an incredible sport.”  

The recommendations came as part of a policy briefing on young people and gambling marketing, based on two new studies into the topic.

The research – conducted by University of Bristol’s chair of marketing Professor Agnes Nairn and marketing lecturer Dr Raffaello Rossi – took the form of an online survey. It was administered to 210 children aged between 11-17, 222 young people aged 18-24, and 221 adults aged 25-78.

The figures showed that 45.2% of 11-17-year-olds and 72.4% of 18-24-year-olds claimed to see gambling advertising on their social media feed at least once a week. 19 out of every 24 gambling ads were found to be more appealing to children, and esports gambling advertising was significantly more appealing to children and young people than adults.

15 out of 24 ads stirred positive emotions in children and young people compared to 7 out of 24 for adults.

The research recommended that regulators ban all esports gambling advertising as it is “dramatically more appealing to children and young persons than to adults”, suggesting that the majority of esports fans are under 30 and so any advertising would appeal more to children and young people.

In addition to advising that young people should be defined as 16-24 rather than 16-17 in the advertising codes, the research also called on regulators to tighten the rules for content marketing, recommending that ads be clearly labelled as commercial content.

It was also suggested that children and young people be asked directly what parts of gambling advertising appeal to them, and those answers should be used to dictate what should be omitted from gambling ads.

Nairn said: “We know from previous research that children are actively following and engaging with gambling content on social media and regulators are struggling to keep up with this trend.  This new research shines a spotlight on two specific types of gambling adverts: content marketing and esports that are strongly and significantly more appealing to children and young people than to older adults.

“Importantly, the current regulations do not address these types of advertising at all. The esports market is forecast to exceed a billion dollars this year. It has an audience of 500 million people, most of them children and young people. The regulations need to be reformed as a matter of urgency.” 

Kev Clelland, strategic alliance director at the Young Gamers and Gamblers Education Trust (YGAM) added: “The findings support the evidence we submitted to the Gambling Act Review where we called for more to be done to minimise the exposure that children have to gambling advertising.

“All gambling advertising should be designed and displayed in a way that is appropriate for adults and avoids marketing techniques that appeal to children. There is opportunity to strengthen advertising protections and both the advertisers and the platforms which host adverts should use technology and data to do more.”