Month: November 2021

Degerfeldt will take on the same position with another business but will first serve a notice period of three months.

Scout, which did not disclose the identity of the company that Degerfeldt will join, said it has already begun the process of recruiting a new CFO

“During his time as CFO, Billy has played a key role in building the company from a pre-commercial state to a fast-growing and innovative sports venture with a well-renowned international ownership base,” Scout’s chief executive Andreas Ternstrom said. 

“I would like to thank Billy for good cooperation and his valuable contribution to the company’s development over the past four years and wish him best of luck for the future.”

Degerfeldt added: “Scout Gaming is facing an exciting growth journey that just has started, but after more than four developing years as CFO at the company, I have decided that it is time for a new challenge.”

In Q2 of 2021, Scout Gaming Group saw revenue more than double to SEK13.9m (£1.2m/€1.4m/$1.6m), though rising expenses meant losses only dipped slightly.

The facility will replace a temporary sportsbook that opened at the Mashantucket Pequot Tribal Nation-operated casino in September

The new two-story sportsbook will allow players to place live bets at windows and kiosks, while the venue also features wall-to-wall televisions, multiple VIP rooms, two bars and a restaurant.

“Since launching retail sports betting at Foxwoods in September, the demand has been strong and continues to grow,” Foxwoods Resort Casino president and chief executive Jason Guyot said.

Read the full story on iGB North America.

There was a dramatic decrease in revenue derived from technical sales and distribution of electronic gaming equipment (EGEs), with the figure decreasing 89.4% to HK$3.8m.

Revenue from repair services fell 65.3% to HK$348,025, and revenue from consultancy and technical services dropped 32.2% to HK$1.4m.

Ape Macau’s financial report said: “The Group’s performance for the third quarter of 2021 continues to be adversely affected by the outbreak of the novel coronavirus disease (Covid-19) in Macau and Southeast Asia.

“As a result, there was a weaker demand for technical sales and distribution of EGEs of the Group.”

The cost of sales and services for the period was HK$4.9m, down from HK$26.2m in 2020.

As a result, gross profit for the nine month period came to HK$603,132, down from $12.9m in 2020.

Operating expenses for the company were HK$13.5m – a 7.4% decrease attributed to voluntary salary cuts taken by Ape Macau’s senior management team. Directors’ remuneration amounted to HK%2.6m, while other staff costs were HK$6.7m.

Finance costs fell 38% to HK$58,351, while other losses amounted to HK$46,964 – down significantly from the HK$1.1m of other income generated last year.

Overall losses for 2021 were HK$13.0m, a 44.7% decrease from last year.

Losses were lower in 2021 than 2020 due to a one-time impairment of finance lease receivables of approximately HK$22.9m in 2020.

Revenue for the three months to 30 September was $16.4m (£12.2m/€14.4m), which was more than a 70-fold increase from $222,392 in the opening quarter of the operator’s 2021 financial year.

This significant year-on-year growth meant Esports Entertainment generated almost as much revenue in Q1 as it did for its entire 2021 financial year, during which revenue hit $16.8m.

The operator said this increase reflected its expansion over the past 12 months, while the business in Q1 was able to grow its business further through the acquisition of Bethard, the B2C business of Gameday Group, adding Swedish and Spanish licences to the operator.

Other Q1 highlights included submitting a transactional waiver to the New Jersey Division of Gaming enforcement, which, pending final approval, would allow the operator to begin betting operations in that state.

Entertainment also struck new deals with National Football League teams the Indianapolis Colts, Tampa Bay Buccaneers and Los Angeles Chargers, while it partnered with Hall of Fame Resort and Entertainment Company to become the official esports provider for the Hall of Fame Village.

In addition, the operator established a content partnership with ESTV EsportsTV, a 24-7 live linear video channel dedicated to esports, as well as with NetEase to become official North American tournament and broadcast provider of Naraka: Bladepoint.

“Our first quarter revenue nearly matched our performance for the entirety of FY21 and reflects our recent platform building transactions,” Esports Entertainment Group chief executive Grant Johnson said. 

“The powerful combination of marquee partnerships, expansive portfolio of products and services and strategic acquisitions is expected to drive double digit year-over-year and quarterly sequential financial growth throughout fiscal 2022.”

Looking at costs, spending was up across all areas with total operating expenses hiking 541.0% year-on-year to $25.0m. This led to an operating loss of $8.6m, compared to $3.9m last year.

The operator also noted $2.3m in interest expense and $1.4m in other non-operating loss, but was helped by $11.8m in income as a result of the change in fair value of warrant liability.

As such, pre-tax loss stood at $552,381, an improvement on $1.8m in the 2021 financial year. The operator did not pay any tax during the quarter, which meant net loss also stood at $552,381, compared to $1.8m last year.

Looking ahead to what the remainder of its 2022 financial year may hold, the operator said revenue is expected to increase by at least 490% to $100.0m in the full year, with this set to be driven mainly by platform-building and strategic diversification acquisitions from the 2021 calendar year.

“With the strong start to FY22 and continued momentum in our business, we are reiterating our expectation that Esports Entertainment will eclipse more than $100m in revenue this fiscal year,” Johnson said.

“We remain ideally positioned in igaming and esports, two of the fastest growing entertainment verticals, and our team is focused on executing our rapid expansion strategy, which we expect will further strengthen our market position and allow us to scale and achieve operating leverage from our portfolio of unique and powerful assets.”

It comes as the supplier’s board announced a strategic review of the business, which includes a immediate restructuring of the CEO role. 

Bragg explained that while the company had reported “exceptional” revenue and growth over the past six quarters, this was not reflected in its public markets performance. Over this period it has made a number of high profile acquisitions, including Oryx Gaming Group and more recently Spin Games, which saw it gain a foothold in the US market.

Its industry peers, the board noted, are trading and transacting at “significantly higher multiples”, leading it to conclude that a new CEO was required.

Godfrey has therefore taken on the CEO role with immediate effect, until a permanent replacement is appointed.

A renowned business leader and Canadian politician, Godfrey previously founded media conglomerate Postmedia Network, served as its president and CEO, and continues to serve as chair of the business.

Godfrey also held the roles of publisher and CEO of Sun Media, president and CEO of the Toronto Blue Jays and chief executive of OLG between 2009 and 2013.

“While the global online gaming industry continues to grow exponentially, the North American opportunity is a game changer,” Godfrey said. “Bragg’s technology and content is well-positioned to take advantage of this new market’s potential and although Bragg’s operations have continued to outperform over recent quarters, the capital markets strategy has not translated into shareholder value. 

“Developing this alignment will be our top priority and absolutely requires a strategic review.”

He will be supported in his new role by Bragg founder Adam Arviv, who will serve as special advisor to the chair and CEO.

The supplier added that Oryx founder and vice chair of Bragg’s board of directors Matevž Mazij will also play an “integral” (but unspecified) role in the new structure.

The announcement comes after Bragg last week reported an 9.9% year-on-year increase in revenue for the third quarter of its 2021 financial year. Revenue for the period amounted to €12.8m, up from €11.7m in the previous year.

The business started generating revenue with a series of acquisitions earlier this year. When including the acquisitions of Yardbarker, Futbol Sites and Two-Up Agency, Playmaker’s pro-forma revenue was $5.6m – a 109.0% increase from 2020.

After accounting for sales costs of $306,169, Playmaker’s gross profit came to $4.5m.

Operating expenses for the quarter were $3.5m, down 42.6% from 2020. Salary was the biggest operating expense at $1.7m, down from $2.9m last year.

Looking at other operating expenses, costs of advertising and commissions were $913,589, share-based compensation amounted to $212,837, professional fees were $200,165 and web services and publishing fees came to $181,272.

Operating income totaled $1.0m, after no operating income in Q3 of 2020.

Read the full story on iGB North America.

Aristocrat agreed to acquire Playtech last month, in a deal worth £2.7bn (€3.1bn/$3.7bn). However, the deal may still be hijacked after Playtech minority shareholder Gopher Investments submitted a bid of its own.

The document, which was published on 12 November, outlined the main reasons Playtech’s board backed the deal, one of which was Playtech undergoing a “significant transition” to newly regulated markets. The scheme document outlined that this was due to UK market growth slowing and the changing market dynamics in Asia, which meant Asian revenue had declined “significantly” and the UK was no longer Playtech’s main source of revenue.

The considerations also mentioned that Playtech’s shares would be unlikely to trade at the price of Aristocrat’s offer – 680 pence per share – in the near future, particularly considering the amount of time it may take for Playtech’s growth strategy focusing on these markets to be realised.

Given the offer price and the new-market-focused strategy, the supplier’s board said the acquisition would allow Playtech shareholders to “obtain certainty and liquidity for their investment”, rather than waiting for Playtech’s shares to reach 680 pence when these new markets reach maturity.

The document also contained information from Aristocrat regarding how the business integration would affect employment and management of the Playtech business. Aristocrat will conduct a review of Playtech’s business and product verticals, in order to fully understand its capabilities. According to the scheme document, “some operational and administrative restructuring may be required” as the businesses combine but that there would be a limited impact on jobs.

Furthermore, the scheme document outlined that Aristocrat made three rejected advances to Playtech, the third of which saw Playtech offer information about its business instead and instigated a fourth bid, which was then accepted.

The deal, however, remains contingent on the sale of Finalto to Gopher, a detail that could be crucial given Gopher’s own bid.

The $250m (£186.2m/€215.5m) sale of Finalto to Gopher Investments was finalised in September in what Playtech lauded as the “conclusion of an extensive process”.

Finalto was put up for sale in March, and was originally to be sold to a consortium that was led by the Barinboim Group in May in a deal reportedly worth $210m (£148m/€171m). However, shareholders rejected this bid, likely due to the presence of the higher offer from Gopher.

The acquisition would have to be approved in several countries, including Austria, Italy, Spain and Germany, as well as the UK.

Scott Burton, chief executive of FansUnite Entertainment since its 2020 merger with Askott Entertainment, will join the board, as will Neil Erlick, chief corporate development officer at Nuvei.

Jeffrey Haas, senior vice president of international strategy for DraftKings, has also joined the board, alongside Chuck Keeling, executive vice president of stakeholder relations and responsible gaming at the Great Canadian Gaming Corporation.

“That the CGA board added four new members is a testament to the Association’s exponential growth in 2021,” CGA chair Carrie Kormos said. “We welcomed 18 new members and diversified by adding sports betting and esports operators, payment companies and many non-gaming suppliers.

“This will provide the CGA with an opportunity to act as a convenor for the industry as a whole and build collaboration during this exciting period in Canadian gaming.”

Read the full story on iGB North America.

This was a rise of 52.5% compared to the third quarter of 2020.

A total of PHP1.68bn came from PAGCOR-operated gaming venues, a rise of 83.9% year-on-year. Slot machines made up PHP949.5m of this total, a year-on-year increase of 125.1%. Table games generated PHP485.3m of the total, up 141.3%.

Junket operations made up PHP244.2m, a decrease of 16.3% year-on-year. Poker made up PHP1.8m of the total this quarter, with no comparable figures from 2020. In-house bingo generated PHP1.0m- also with no comparable figures available from Q3 2020.

Revenue from PAGCOR-licensed casinos operated by other groups, meanwhile, rose this quarter, to PHP21.77bn from PHP15.03bn in the same period of 2020- a 44.8% increase.

Licensees located in the Entertainment City complex in Metro Manila brought in PHP19.3bn in revenue, up 49.4% year-on-year. Clark casinos saw PHP2.30bn in revenue, a rise of 22.2%, while Fiesta casino venues suffered a 45.6% drop in revenue to PHP100.6m.

Other licensees contributed PHP3.48bn to the total, a rise of 103.2%. Bingo operations rose 16.5% year-on-year to PHP1.65bn, while electronic games grew by 103.3% to PHP613.1m. Electronic sabong, which is online betting on live cockfighting, generated PHP1.21bn of the total revenue.

This was the first full quarter in which the Philippines offered online gaming services, having introduced the vertical in Q2.

In April, it allowed Tiger Resort, Leisure and Entertainment, operator of the Philippines’ Okada Manilla Resort to offer its online services within the country. In August, PAGCOR granted an online distribution licence to Jade Entertainment.

As a result, there were no comparison figures available for electronic sabong.

Total industry revenue for the year so far totaled at PHP77.84bn.

Q3 also saw PAGCOR appoint James Patrick Bondoc to the company’s board of directors.

The regulator said it will check whether Dutch players can access any of the 25 sites. If they can, “sanctions will follow”.

These sanctions may apply not only to the operators of the websites but also to third parties such as payment service providers and advertisers who promote the sites.

The monitoring comes after the KSA changed its approach to unlicensed gambling with the launch of the Dutch regulated online market on 1 October. Previously, operators only needed to avoid specifically targeting the Netherlands, now they must block all customers from the country.

As the market opened, a number of major operators announced that they would block Dutch customers. Entain said the move would cost it £5m per month in earnings before interest, tax, depreciation and amortisation (EBITDA), while Kindred said its EBITDA hit would be £12m. Other operators to block Dutch customers included LeoVegas, Betsson, Casumo and 888. However, the KSA noted that many other operators still accept Dutch customers.

The regulator added that now that a legal offering exists, its responsibility is to channel players towards operators with licences.

“The reason for the new policy is that the amended Gambling Act has made it possible to legally offer games of chance via the internet since 1 October,” the KSA said. “At legal providers, participants in games of chance can play in a safe environment, in which there is a reliable game and sufficient attention for gambling addiction. 

“An objective of the law is to ‘channel’ players from illegal to legal providers.”

Currently, only 10 operators are licensed to offer online gambling in the Netherlands.

Bet365, UK-based bingo operator Tombola and Malta- and Estonia-licensed Play North Ltd are among the licensees, alongside Dutch land-based operator Holland Casino NV and state lottery Nederlandse Loterij with its TOTO Online betting brand.

The Janshen Hahnraths Group with FPO Nederland, Italy-based Betent, Belgian brand Bingoal, NSUS Malta, which runs the GGPoker.eu brand and sports media and betting business LiveScore Malta also secured licences.

The KSA had expected to receive up to 40 applications for licences and projected granting 35. However, the regulator announced in April that it had received 28.

Many online brands were unable to receive licences due to the cooling-off period that meant prospective licensees must have refrained from offering online games of chance to Dutch consumers for at least two years.