Strong US performance helps Sportradar revenue increase in Q3

The quarter marks Sportradar’s first since completing its initial public offering (IPO) and listing on the Nasdaq market, which the company estimates raised €546.0m which would be used to fund continued growth in the business.

Breaking down the supplier’s €136.8m in revenue, €19.6m of the revenue total was derived from business in the US – a 120.2% increase from 2020. Betting revenue from the rest of the world came to €78.6m, up 24.45. Meanwhile, betting audiovisual revenue from the rest of the world – made up mostly of live streaming solutions for betting operators – was €29.0m, down slightly from 2020, and other segments added €7.4m.

Operating expenses for the quarter were €76.4m, up from €41.0m in 2020. Personnel expenses amounted to €51.3m, while other operating expenses totaled €25.2m.

Depreciation and amortisation expenses came to €27.2m, while €29.4m was spent on purchased services and licences.

After these costs, net losses were reduced when compared to 2020, falling from €16.0m to €6.0m.

After accounting for €3.0m worth of income tax, overall losses for the quarter were €9.0m, down from €15.0m in 2020.

Adjusted earnings before interest, taxation, depreciation and amortisation for Sportradar were up 20.8% to €20.9m.

The company also cited deals with France’s top basketball league Ligue Nationale De Basket (LNB) and the Austrian Tennis Association as highlights for the quarter.

Sportradar CEO Carsten Koerl said the business would continue to pursue US growth.

“Our strong results demonstrate the value we provide to our partners and customers around the world,” he said. “We are the largest provider of sports intelligence in the world and the only profitable global sports technology platform of scale.

“We plan to continue to make significant investments, particularly in the US. The US represents the primary area of focus to execute on our strategic growth plans, as the US region is currently only seven percent of our group revenues, representing a significant potential business opportunity as more states legalize betting and the market expands from $1 billion in 2019 to an estimated $23 billion in the next 10 years.”

New York gaming revenue grows but betting revenue down in October

October’s total also shows a slight decrease on the prior month, when revenue was $60.7m.

The Resorts World Catskills casino was the biggest contributor to the revenue total, generating gross gaming revenue (GGR) of $19.6m. Schenectady’s Rivers Resort and Casino followed with $16.7m, Del Lago Resort and Casino’s revenue was $15.6m, and Tioga Downs casino added $8.5m.

Statewide turnover for slots and table games also increased from last year, rising 51.0% to $627.5m. Resorts World had the largest figure for both, coming in at $155.6m and $42.9m respectively.

Sports wagering revenue for the month came to $1.7m, a 37.0% decrease on October 2020.

Rivers Casino and its namesake sportsbook were the best performers with sports betting revenue of $949,784. Del Lago’s DraftKings sportsbook was next with $503,241, followed by Resorts World’s figure of $222,437. The FanDuel operated Tioga Downs contributed $43,152.

Read the full story on iGB North America.

Lady Luck Games agrees to acquire Revolver Gaming

The purchase price consists of a combination of cash and newly issued shares, with the cash part of this agreement amounting to €750,000.

The shares portion of the purchase price will be covered through the issuance of approximately 4,200,000 new shares in Lady Luck at a stock price of SEK3.00.

Lady Luck currently has 44,905,472 shares, with the issue set out through the deal amounting to approximately 8.5% of its total outstanding shares after they are issued.

Revolver Gaming develops its games in HTML5 and distributes content through its own RGS platform. The studio has 15 unique games and almost 30 integrations across countries in Europe, South America and Asia. 

Should the acquisition proceed, Lady Luck will add two new operational partners in the form of Carl Waahlin and John Penntoft. 

Waahlin is an igaming professional with over 20 years’ experience at delivering products to Asia, while Penntoft is an Asia-based entrepreneur and early phase investor in igaming and tech.

The deal comes after Lady Luck in September also signed a letter of intent to acquire the Danish-facing operations of gaming content provider Spigo ApS.

“This is our second acquisition in the last three months, and I am pleased to be able to show our shareholders and the market that we are delivering on our set acquisition strategy,” Lady Luck chief executive Mads Jørgensen said.

“The fact that Lucky Games can acquire a company of this calibre is a clear signal of strength. We have identified a number of clear synergies and I am extremely happy to have the privilege of working with the ambitious team at Revolver Gaming in the future.

Revolver Gaming founder Daniel Lazarus added: “The opportunity for a merger between Lady Luck Games and Revolver Gaming is fantastic for both parties. Ever since we started our first discussions, we have been impressed by their passion for our business and their willingness to support our ambitious plans for the future.

“The potential synergies, the expanded market reach that the deal brings and the amazing team at has convinced us that Revolver, with support from Lady Luck, will continue to develop in the best possible way and further strengthen our commercial presence and customer offering.”

Game changer: Evoplay makes a statement with Star Guardians

The formula for slot games is tried and tested – lines, reels, spin, and pray. Countless similar slot games are churned out every year, with the feeling that there’s no need to deviate from the status quo.

That doesn’t mean you can’t give it a try, however.

Game developer Evoplay have decided to try and break the mould with its flagship title for 2021 Star Guardians – a first-person-shooter style video slot it dubs the “biggest budget game in Evoplay’s history”.

A revolution inside the industry

“We were inspired by the objective to make a revolution inside the industry using this game,” says Evoplay CCO Vladimir Malakchi. “We treated it in a special way from the very beginning.”

“We wanted to go beyond the traditional gambling gameplay of reels and lines,” he continues. “It’s popular, and people like it, but we just changed the design and entertainment inside of the game to create a real time thematic world which players can see and they can feel it. When you just click space and wait for the minutes, hours and so on it’s a bit tiring.”

Evoplay has aimed to create Star Guardians with a look and feel more akin to a video game than a traditional slot. Along with the first-person shooter elements, an immersive world is filled with characters – good and evil – with elaborate back stories. Star Guardians is its own fantasy world, still retaining key elements of classic slot games – and offers a five-second spin time.

“Five seconds, from what we’re seeing from different regulations, is normal,” Malakchi notes. “The old myth goes that if people can press the stop button at the right time, they will increase their chances to win. What we’re seeing here is that people are trying this even in RNG games. They’re trying to influence something always. So why not give it to them?”

Unsurprisingly, a game this ambitious required significant amounts of time to perfect, more than slots usually demand. Malakchi estimates that from start to finish, Star Guardians required almost three times more time to create than regular slot games.

“We spent more time on it and more things needed to be created from scratch, and there were a lot of things we didn’t know how to create at the start,” he says. “This product isn’t easy to make, we spent a lot of time and resources on it.

“It took us around a year and a half which is a long time for slots. Some slots can be made in three to six months. I can’t say we changed the full development process.

“The usual process starts with sketch and design and ideas, we still followed these steps. But the time on each stage and different factors such as testing took us much more time and we were much more attentive.”

And the development process is not finished. Malakchi says that work on Star Guardians is still ongoing, as “there’s always more to update”. Ultimately Evoplay wanted to make sure the game was easily accessible and easily playable on all formats.

“The main challenge for us was not even to make the game,” Malakchi continues, “But to make it very light as people are playing from mobiles which may not have the best internet.

“Our main goal was to make this game as light as we can and we’ve done it. When you create something new from a technological point of view, it’s always hard to make it easy to access.”

The games inspiration

Elements of other gaming genres have influenced Evoplay when it comes to Star Guardians. A feature-rich game lends itself to tournament play, a format popularised in the esports market which Malakchi believes the gambling industry should look to emulate.

“Why tournaments?” Malakchi asks. “Slots are a solo player game but tournaments are rising in numbers up to 10x, so they’re the most playable things from each provider.

“What we’re seeing now is that people are competitors – it’s part of our instinct to compete with everybody. I’m not speaking about 100% of players on the planet but most people try to compete and win, and this feeling of winning produces endorphins inside of people, making them feel better.

“It’s not like you’re just winning money, you’re beating other people to do it. You’re better than them, luckier than them, and this is the part of tournaments people find so appealing. So why can’t we use that in a normal slot?”

Malakchi concedes that it will take time for such features to become the norm, but he argues that that multiplayer games will be a part of future changes.

Marketing innovation

Such an ambitious project like Star Guardians warranted an equally ambitious marketing campaign to match. Evoplay duly delivered and Malakchi couldn’t be happier with what he describes as “the biggest marketing campaign in the igaming world”.

Having a development team full of avid gamers also helped shape the direction of Star Guardians’ marketing.

“We tried to think like we’re usual gamers – what will be very important for us? We have a lot of people inside our team and most of them are gamers,” he explains. “We were trying to speak to all of them to understand what’s important and what will give you an opportunity to feel like it’s not a usual slot, but more like a part of the video gaming world.”

The marketing team compiled a full art book with sketches and screenshots to help bring the virtual Star Guardians world to life.

“Not only is the game very important, but the story behind the game is very important,” he adds.

“The first steps of creating Star Guardians was creating the story of the whole world. We also created the comic book, which is connected to different heroes. I think this is a good part of marketing strategy because people never do this inside gambling, but it’s a usual part of gaming. It’s always cool to play something when you understand what’s going on.

“To my knowledge nobody created something like this for a gambling audience, so we tried to create game like content that also had the full marketing experience behind this and create the biggest marketing campaign in the igaming world – and I think we’ve done it.”

A new audience

The comics formed part of Evoplay’s pre-campaign for Star Guardians, with the full campaign yet to start in earnest. Already, Evoplay estimates it has reached an audience of 30 million people in the past quarter. The launch of a fully free Star Guardians tournament is also scheduled as the company attempts to bring a new audience to the gambling world.

“We’re trying to give an opportunity to players who aren’t connected to casinos or gambling right now,” Malakchi explains. “We just want to give them an opportunity to feel this experience because our main goal is to reach new audiences.

“The pre-campaign lasted for eight months. We want to show it to different operators but the main goal is to give this game to casinos who are ready to receive new audiences. We want to reach as many people as possible and we want to support our partners. We want to give people a flavour of the game before they play it for real in casinos.”

Evoplay is also making an effort to attract new eyes to casino products, noting that the usual audience for slot games tend to be on the older side. Malakchi believes that a new, audience aged 30 and older can be attracted, provided the right content is on offer.

“What we’re seeing in gaming niches and esports niches is there’s around four billion players – it’s a huge amount of different people – and the average age of them is 34 years old,” he says. “They split 46% male and 54% female.  This audience is worth more than £173bn. We’re just not reaching the right audience.

“For years we’ve been working with a small audience which is pretty difficult. We’re trying to reach more than three billion people with this game. Even if we reach just 4% of that audience it will be a great success for us and the whole niche.

“Once we succeed here, the whole niche would succeed.”

IGT considers digital and sports spin-off

The technology supplier announced the potential spin-off at its investor day yesterday (16 November). It follows a restructuring in July last year, that saw IGT reorganised into global gaming and lottery units.

Plans to carve out the digital and sports business from the global gaming division were then announced in September 2021.

IGT said it would “realign” the digital and betting segment into a new legal entity, a process that should be completed within the next 12 months. While this occurs, the business will evaluate whether it should pursue a separate listing.

In the past two months, it has brought in William Hill US veteran Joe Asher as president of sports betting, and former Bet365 executive Gil Rotem as president of gaming.

At the same time, the business also revealed its outlook for 2022. IGT expects revenue for the year to 31 December to fall between $4.1bn (£3.05bn/€3.63bn) and $4.3bn. With an expected operating margin between 20% and 22%, this would leave operating income somewhere between $850m and $1.0bn.

Looking further ahead, IGT said it expects annual revenue to fall between $4.6bn and $5.0bn by 2025.

“IGT’s industry leadership is built on a legacy of innovation and trust,” chief executive Marco Sala said. “Through greater player engagement, responsible management, and best-in-class content, services, and solutions, we are well-positioned for profitable growth.

“Our diverse portfolio aligns with attractive end-markets and our strategy is to grow, innovate, and optimise. 

“Over the next four years, we are confident we can deliver accelerating organic growth, significant margin expansion, and robust free cash flow to drive stakeholder value and increased shareholder returns.”

The announcement follows the supplier’s 2021 third-quarter results. IGT raised its full-year revenue guidance to $4.1bn after reporting growth across every business segment and product type in Q3, helping overall revenue grow 20.6% to $984m.

Digital and sports betting revenue during the quarter came to $43m, up 36.8%.

Better Collective slips to Q3 loss as one-off costs offset revenue growth

Revenue for the three months to 30 September amounted to €45.4m, up from €18.3m in the third quarter of last year.

The affiliate’s publishing business, comprising Better Collective’s online platforms and media partnerships where online traffic comes directly or organic search results, was responsible for the majority of revenue, with this rising 77.8% year-on-year to €31.3m.

Better Collective said that this growth was higher than expected due to the performance of media partnerships and its US business, with the start of the new National Football League season in September contributing to US growth. The affiliate said it was also helped by its acquisition of the Action Network in May.

Revenue from paid media – covering lead generation through paid media and social media advertising – rocketed 1,796.8% to €14.1m as Better Collective continued to feel the impact of its acquisition of pay-per-click specialist Atemi in October of last year.

Better Collective also acquired Dutch online sports media brands Soccernews.nl and Voetbalwedden.net in Q3 as it sought to build its presence in the Netherlands ahead of the launch of the country’s new regulated gambling regime in October.

After the end of the quarter, Better Collective announced it had completed its acquisition of US-based RotoGrinders Network, purchasing the remaining 40% stake in RotoGrinders for a total price of €33.0m.

Looking at geographical performance, US revenue also increased by 453.9% to €14.4m, mainly due to the Action Network purchase earlier this year. ‘Rest of World’ revenue, covering all operations outside of the US, almost doubled from €15.7m to €31.0m.

Turning to costs, spending was up across all areas, with revenue expenses rocketing 558.3% to €15.8m – partly due to the Atemi deal – staff costs 107.0% to €11.8m and other external expenses 121.1% to €4.2m. Better Collective also noted €1.9m in amortisation expenses and €442,000 in depreciation spend.

However, it was net special items costs that impacted the affiliate the most in Q3, with this reaching €11.6m, compared to just €44,000 last year. These expenses were mainly due to earn-out costs related to previous acquisitions.

Higher costs led to an operating loss of €362,000, compared to a profit of €6.7m last year, while after including €601,000 in finance costs, this left a pre-tax loss of €963,000, down from a €6.5m profit in 2020. Earnings before interest, tax, depreciation and amortisation (EBITDA) after special items also declined 76.5% to €2.0m.

Better Collective paid €2.5m in tax, resulting in a net loss of €3.5m, compared to a €4.9m net profit at the end of Q3 in 2020.

“We are very satisfied with the development in the quarter, even though sports win margins have worked against us short term partly due to our own success in sending new customers at a much larger scale than ever before,” Better Collective co-founder and chief executive Jesper Søgaard said.

Looking at the year-to-date and revenue for the nine months to the end of September was 128.1% higher at €124.3m. Publishing revenue increased 58.5% to €81.3m and paid media revenue hiked 1,287.1% to €43.0m.

Costs were higher across the business, including within special items where spending hit €17.0m as a result of recent M&A activity. However, Better Collective was able to post an operating profit of €16.2m, down 12.9% year-on-year.

Financial costs reached €2.2m, leaving a pre-tax profit of €14.0m, a drop of 20.9% on last year, while EBITDA after special items fell 7.7% to €22.4m. The affiliate paid €7.5m in tax, resulting in a net profit of €6.5m, down 51.9% from last year.

Impairment charges lead to net loss at Catena Media in Q3

Total revenue for the three months to 30 September reached €33.1m (£27.9m/$37.4m), up from €24.9m in the corresponding period last year and in line with a forecast published last month.

Search revenue accounted for the majority of revenue, generating €31.7m during the third quarter, an increase of 40.9% on 2020. However, paid revenue fell 30.0% to €1.4m while Catena did not report any subscription revenue due to the sale of its Hammerstone business in Q4 of 2020.

More than half of all revenue – 53% – was derived from cost per acquisition, while 38% came from revenue-sharing agreements, and the remaining 9% fixed fees models.

In terms of business segment, casino led the way with €19.9m, up 24.4% and accounting for 60% of all revenue, as Catena said it continued to benefit from the growing igaming market in North America, with particular success in New Jersey and Pennsylvania. 

Catena also said casino revenue in Japan doubled during Q3, but German revenue from the vertical sharply fell due to the new licensing regime in the country, while Italian revenue was also slightly down.

Turning to sports betting, revenue here increased by 65.3% to €12.4m, or 38% of total revenue, again helped by growth in North America, with Catena singling out the launch of legal wagering in Arizona and Wyoming as key factors.

A strong end to the Uefa Euro 2020 football tournament helped increase activity in the UK market in July, while Italian revenue was up amid favourable player activity in late August. However, new German restrictions saw revenue fall in the country.

Revenue in Catena’s financial trading business declined 42.9% to €800,000 due to the sale of the Hammerstone business. Revenue here accounted for just 2% of overall revenue for the quarter.

“The results underscore the benefits of Catena Media’s mission to develop a broad international footprint across key sports betting and casino territories, an approach that enables us to offset challenges in one market with gains in another,” Catena chief executive Michael Daly said. 

“Our strong performance so far this year provides a good starting point to deliver on the long-term target of double-digit organic revenue growth in 2022 as well.”

Looking at costs, operating expenses were 349.9% higher at €69.7m, primarily due to a €49.4m impairment charge on intangible assets of German and French sport assets. This, Catena said, followed an updated assessment by management of the assets’ expected future earnings in the context of recent regulatory changes.

As a result, this left an operating loss of €36.7m, compared to a profit of €9.4m in Q3 of last year. The affiliate noted a further €2.0m in financial costs, which resulted in a pre-tax loss of €38.7m, down from a €3.3m profit in 2020, though adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 33.3% higher at €16.0m.

Catena received €1.6m in tax benefits during the quarter, but also noted a further loss of €305,000 due to currency translation differences and €1.1m in interest payable of hybrid capital securities, leaving a net loss of €38.5m, compared to a profit of €3.3m last year.

As to how the quarter impacted year-to-date performance, revenue for the nine months to the end of September was 31.2% higher at €104.2m.

Operating costs hiked 114.9% to €109.4m and finance costs reached €7.1m, leaving a pre-tax loss of €12.9, compared to a €4.8m profit at the same point in 2020. However, adjusted EBITDA was 41.1% higher at €56.0m.

Catena paid €584,000 in tax during Q3 and after including a €825,000 loss from currency translation differences and €3.3m interest payable of hybrid capital securities, this left a net loss of €17.2m, compared to a €4.7m profit last year.

Reflecting on the quarter, Daly said Catena stands on a “solid foundation” financially and picked out a new share buyback programme to optimise its capital structure by returning capital to shareholders, as well as the acquisition of i15 Media assets to underline this.

“That said, I foresee our growth in the coming months as being largely organic as we accelerate the exciting journey of internationalising our products and becoming a truly global force in our industry,” Daly said.

ACMA issues first blocking orders against offshore lottery websites

An ACMA investigation found that both We Love Lotto and Red Fox Lotto were offering tickets in major overseas online lotteries and were not licensed in Australia.

This, ACMA said, placed both operators in breach of the Interactive Gambling Act 2001, and has such requested Australian internet service providers (ISPs) to block access to the sites.

“We Love Lotto and Red Fox Lotto are both operating illegally in Australia, meaning there are no consumer safeguards in place for players,” Authority member Fiona Cameron said

“Blocking illegal offshore sites protects Australians from potentially dodgy operators, where there is little or no recourse if things go wrong. Lottery services that are licensed in Australia and operating legally have important safeguards that consumers expect.”

ACMA began making blocking requests in November 2019 and has blocked more than 325 websites it said were operating in Australia illegally.

This instance marked the first blocking orders for lottery websites. In August the authority also issued its first blocking requests against affiliate gambling advertising websites

The Authority also revealed that during its 2020-21 financial year, it was able to block a total of 55 websites, which it said resulted in a majority of these sies experiencing a decline in Australian visitors of at least 90%.

“We are very pleased with the outcome and it shows that the steps we are taking to combat illegal online gambling in Australia have had a positive impact,” Cameron said.

Galaxy Gaming returns to profit as revenue almost triples in Q3 2021

The entire revenue total for the quarter was derived from licence fees. $2.8m came from Europe, Africa and the Middle East (a 157.7% increase from 2020) while the remaining $2.3m came from North America and the Caribbean (up 250.0%).

Galaxy’s expenses for the quarter amounted to $4.1m, up from $2.7m last year. General and administrative costs were the biggest expense with $2.7m, depreciation and amortisation came to $722,475, share-based compensation amounted to $449,565, and research and development costs were $156,768.

Operating income totaled $1.2m, compared to the $898,303 loss suffered in 2020. After $195,482 of share redemption considerations, $129,422 of interest expenses, $33,781 of foreign currency losses and $21,186 of income taxes, net income for the quarter came to $874,236 – up from $1.3m losses last year.

Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was $2.5m for the quarter – up 6844.4% from 2020.

Galaxy president and CEO Todd Cravens said: “In the third quarter of 2021, the Company showed the potential we have been working toward since early 2020.

“Revenue, Adjusted EBITDA and Adjusted EBITDA Margin all set records, even as a meaningful portion of our UK land-based customers remained closed in the quarter. We expect our land-based business to continue to recover from the COVID closures and for our online business to continue to grow in both Europe and North America.”

“The recovery of our business in the brick-and-mortar space continues, and we are benefitting from strength in the online sector,” added Harry Hagerty, Galaxy’s CFO. “As a result, our liquidity is improving. We’re hopeful that these trends will continue for the balance of 2021 and into 2022.”

Galaxy also announced that it has paid its settlement in full to accounting equipment business Triangulum Partners and the company’s former chairman and CEO Robert Saucier. This was achieved by entering a term loan credit agreement with Fortress Credit Corp estimated at approximately $60m.

Triangulum sued Galaxy after Galaxy tried to force Triangulum – a major galaxy shareholder – to sell its shares following a disagreement over regulatory matters.

On the settlement, Cravens said: “The Fortress transaction and the resulting satisfaction of the Settlement Agreement are a major achievement for Galaxy. The expense and uncertainty of the Triangulum litigation are behind us, allowing us to focus all of our efforts on customers, products and business development.

“We appreciate the confidence in us that Fortress has shown, and we look forward to a mutually rewarding relationship. Finally, we are very grateful for the support that Nevada State Bank gave us during the three-plus years of our lending relationship with them, and we look forward to continuing our relationship on the treasury side.”

SkyCity faces H1 hit from NZ lockdown despite strong online showing

In July 2021, the first month of SkyCity’s 2021-22 financial year, online revenue came to just under NZ$3.0m, representing a year-on-year improvement of more than 30%.

Revenue then rose to NZ$4.0m in August – a record high – as New Zealand re-entered lockdown due to the novel coronavirus (Covid-19) situation in the country. This saw SkyCity’s Auckland and Hamilton properties close, while casino and entertainment facilities at its Queenstown venue were temporarily shuttered.

Online gross revenue then grew again, to set a new record of more than NZ$5.0m during September. Weekly active customers exceeding 11,000 during the month, despite lockdown measures being eased during the month.

In October, as lockdown measures returned once again, revenue declined to NZ$4.1m.

These figures were all well above pre-pandemic levels. Online casino revenue did not reach NZ$500,000 until March 2021, even though SkyCity’s online product has been active in the market since August 2019.

The operator said that there was continued room for growth in online casino, as it estimated the New Zealand market to product NZ$300m in revenue annually at maturity. It noted that licensed operators may be able to have more success if more action was taken against offshore sites.

However, this online success was more than offset by the continued effect of lockdowns on SkyCity’s land-based business. While the operator did not reveal the overall impact, it said that earnings for the first half of the financial year, ended 31 December, were “materially impacted by difficult trading conditions”.

In addition, it said that after reopening, the SkyCity Queenstown and Adelaide venues’ performances were “subdued” due to continued restrictions.

Last month, SkyCity chair Rob Campbell announced that he would exit the role in early 2022. 

SkyCity said it would not begin the process of appointing a new chairman but did not put a timescale on when a replacement would be announced.