Month: February 2022

For the first half of the operator’s financial year, revenue was up 2.2% year-on-year to AU$2.93bn (£1.55bn/€1.86bn/$2.11bn).

The largest contributor to the group total was the Lotteries and Keno division, comprising The Lott and Keno brands. It saw revenue increase 10.9% to AU$1.78bn in spite of keno venues being impacted by Covid-19 trading restrictions. While keno revenue was down 9.8% to AU$119.0m, lottery was up 12.7% to AU$1.67bn across retail and digital channels. 

A highly visible retail network – comprising newsagents, petrol stations, kiosks and pharmacies – helped turnover grow 5%, while digital’s share of lottery turnover was up from 32.1% in the prior year to 36.7%. 

Game development helped keep jackpot games and Saturday Lotto turnover growing. However, other titles, such as scratchcards, Set for Life and the Monday and Wednesday Lotto draws, were down compared to a particularly strong performance over the six months to 31 December 2020. By the end of the reporting period, the operator had grown its active customers to 3.88 million. 

Tabcorp managing director and chief executive David Attenborough said the division’s performance showcased “the broad appeal of the business’ much-loved products and brands, and the success of its omnichannel strategy”. 

The operator announced in July last year that it was to spin off the Lotteries and Keno division into a separate listed entity, with this process on track to be completed by June 2022. 

The first court hearing and a scheme booklet are due to be issued by April at the latest, followed by a demerger scheme meeting and second court hearing in May. Should these all go to plan, the demerger, which will create The Lottery Corporation, is expected in June. 

This decision followed months of speculation that Tabcorp’s Wagering and Media division was to be divested, with the likes of Apollo Global, BetMakers and Entain putting forward bids. Instead, this will remain part of the core business. 

For the first half, Wagering and Media revenue was down 9.8% from the prior year to AU$1.07bn, due to its retail outlets being shuttered in its largest state market, New South Wales. This division comprises the Tab, broadcaster Sky Racing, the channel’s B2B arm Sky Racing World and totalisator operator Premier Gateway International. 

In the state’s metropolitan areas, retail properties lost 102 days of trading, compared to 13 in the prior year. Its regional locations were closed for 74 days, having lost no trading days in H1 2021. 

Retail turnover for Wagering and Media was down 36% as a result. While the ability to make digital transactions and account deposits in retail outlets is a key driver of the online offering, the channel’s turnover was actually up 2% year-on-year. However with more competition for digital customers, margins were reduced by bonusing, advertising and promotions. 

“While the Wagering and Media business was significantly impacted by the retail lockdowns imposed in [New South Wales] and Victoria, its performance across all channels improved once restrictions were lifted,” Attenborough commented. 

“The Wagering and Media business, and its digital performance, is much stronger when venues are open and customers can participate fully in the omnichannel experience, which is a key strategic point of difference.”

The smallest contributor to group revenue was the gaming services division, which provides machines and support services to clubs across Australia, though it saw revenue climb 6.8% to AU$78.0m. 

This was down to properties in Victoria losing fewer trading days, and a relatively small exposure to Covid-19 closures in New South Wales. 

However, revenue was impacted by Tabcorp reducing fees to customers, to help them cope with Covid-19. It did not begin charging full fees for machines until 1 December 2021. Looking ahead, Tabcorp plans to reshape and resize its supplier brand Max Venue Services, with around half of electronic gaming machine contracts to continue on a full-service model, and a third of contracts to end at term. 

Tabcorp’s variable contribution – revenue minus the variable costs associated with production and sales – came to AU$942m, down 0.9% year-on-year. 

After operating expenses of AU$413m, its earnings before interest, tax, depreciation and amortisation (EBITDA) was down 5.5% at AU$529m. This came almost entirely from Lotteries and Keno, which accounted for AU$358m of the total, up 15.1%, to mitigate declines from Wagering and Media, and Gaming Services. 

Depreciation and amortisation expenses reduced its earnings before interest and tax to AU$333m, and interest and tax expenses resulted in a net profit before significant items of AU$187m, down 12.7%. 

The business then incurred charges of AU$12m related to the Lottery and Keno demerger, for a statutory net profit of AU$175m, a 5.4% decline from the prior year. 

Looking ahead, Attenborough said the business’ priority for the second half of its 2022 fiscal year, ending 30 June, was to complete the demerger of Lottery and Keno, and execute growth initiatives for each of division. 

“These include the launch of a new Tab app in 2022, which aims to position [the brand] as the first choice for digital wagering play,” he explained. “We will also introduce a change to the Oz Lotto that is expected to create larger and more frequent jackpots in line with its promise to deliver ‘Big Aussie Fun’.”

The demerger, he added, was on track and would allow shareholders to benefit from the increased scale and diversification of the two entities.

“We are enthusiastic about this opportunity to create two significant, cash generative businesses with existing futures.”

Crown’s overall theoretical revenue, which is adjusted to exclude variance in win rate for VIP play by assuming an average win rate instead, was slightly lower at AU$778.6m. This was a rise of 34.0% year-on-year.

A majority of the revenue was generated by Crown Perth, amounting to $402.9m – a 1.5% decrease year-on-year. Most of this was made up of wagering and non-gaming revenue, at $166.4m. Main floor machine revenue totalled AU$157.2m, while main floor tables generated AU$79.3m.

This was partly due to the fact that Crown Perth was closed the least amount of time during the novel coronavirus (Covid-19) lockdowns, being shut only from 1 July 2021 to 5 July 2021.

For Crown Melbourne, which was closed for 96 days in the half-year, revenue came to AU$265.0m. This was a year-on-year rise of 172.9%. Main floor table revenue added up to AU$115.2m. Wagering and non-gaming revenue was AU$77.4m and main floor machine revenue totalled AU$72.4m.

Crown Sydney made AU$36.1m, all of which was generated from non-gambling means, as it has not yet received permission to open its casino. This was a significant increase of AU$35.2m from H1 2021. The venue was closed for 102 days in the half-year.

Crown Aspinalls in London, which is the only Crown venue with VIP revenue, brought in AU$7.9m. VIP play accounted for AU$7.4m of this, while wagering and non-gaming made up the remaining AU$500,000.

As Crown Aspinalls was the only venue to generate VIP revenue, it was the only site affected by the difference between theoretical and actual revenue. Its theoretical revenue was AU$5.6m.

Wagering and online revenue came to AU$69.5m in revenue, a decrease of 12.7% year-on-year.

In total across the group, wagering and non-gaming accounted for AU$349.9m of the overall revenue. Main floor machines generated AU$229.5m and main floor tables made AU$194.5m. VIP programme play made up AU$5.1m. Intersegment adjustments led to the elimination of AU$900,000.

The earnings before interest, tax, depreciation and amortisation (EBITDA) before closure costs and other significant items costs was recorded at AU$28.8m. These closure costs came to AU$113.1m, with income from other significant items generating AU$39.1m. As a result, the business made a loss of AU$45.2m before interest, tax, depreciation and amortisation.

Depreciation and amortisation expenses hit AU$115.1m and asset impairment costs were AU$31.8m. This left a loss before interest and tax of AU$232.1m.

After considering theoretical adjustments, income tax benefits, equity accounted shares and net interest, the overall net loss for the half-year came to AU$196.3m. This was $75.9m more than the amount lost in H1 of 2020-21.

“Crown’s first-half performance reflects the continued challenging operating conditions as a result of Covid-19 as well as the impact of ongoing regulatory matters,” said Steve McCann, who became managing director and chief executive of Crown during H1.

“Importantly, we continue to build momentum on our company-wide reforms, accelerating work on our remediation plan and making significant advances across multiple regulatory processes. Not only are we building a stronger business, we are working well with the regulators with a priority to deliver a safe and responsible world-class gaming operation.”

Earlier this week Crown accepted a takeover bid of AU$8.9bn from investment management group Blackstone Inc after its board unanimously accepted the proposal. This came almost a year after Blacktone’s initial bid of $8.02bn and is an increase of over $845m on that sum.

As part of the acquisition Blackstone will pay $13.10 in cash per share, an estimated premium of 32% from the closing share price on 18 November 2021, Crown’s final day of trading before Blackstone’s proposal.

In October last year Crown resorts was found to be “unsuitable” to operate Crown Melbourne in in Victoria following an investigation by the state’s Royal Commission. However Crown did not lose its licence, due to the potential economic repercussions for Victoria.

As a result of this Crown must adhere to special measures, including adhering to 33 recommendations made by the commission.

“In Victoria, we are working in a collaborative and constructive manner with the special manager and his office, as well as the new regulator, the Victoria Gambling and Casino Control Commission, to ensure that we build a safe and responsible gaming environment at Crown Melbourne as we seek to re-establish our suitability to hold a casino licence in Victoria,” continued McCann.

This investigation came as a result of the Bergin Inquiry in New South Wales, which was launched in August 2019. The inquiry assessed Crown’s eligibility to receive a casino licence in Sydney, ultimately deeming it “unsuitable”. However, it said it may still be permitted to operate the casino following implementation of its reforms.

Last year’s iGB Live! and iGB Affiliate Amsterdam have been nominated in the best international trade show category at this year’s ceremony. It will compete against international events from the hospitality, energy and manufacturing sectors on 18 March, less than a month before iGB Affiliate London opens its doors at ExCeL London on 13 April. 

iGB portfolio director Naomi Barton described the awards as the perfect curtain-raiser ahead of iGB Affiliate London’s return. 

“It is a huge honour for iGB to be shortlisted alongside some really successful and notable events,” Barton said. “It is a great credit to the Clarion team, to the team at the RAI Amsterdam and of course to our community of visitors, exhibitors and sponsors who worked so hard and with such energy to deliver what was a record-breaking edition.”

She pointed out that the metrics used by the judges highlighted exhibitor satisfaction as a key criteria, and post-show research carried out by Explori ranked iGB Live! and iGB Affiliate London in the top 10% of events benchmarked with visitors, and the top 2% for exhibitors. 

“To be shortlisted is a great achievement in itself, and to go any further would represent a perfect run-up to welcoming international visitors to ExCeL in April.”

This year’s edition of iGB Affiliate London, which runs from 13 to 14 April, is almost a third bigger than the 2020 edition, with 159 exhibitors and sponsors from 29 markets participating. It will fill three exhibition halls at ExCeL London, comprising established names and exhibitors making their event debut.

Pre-registration figures are also up significantly, Barton added, aided by the UK government easing travel restrictions. There is also a significant uptick in registrants active in the US market, where the total addressable market is set to grow 200% over the next five years. 

“Feedback from the Association of Exhibition Organisers whose members stage in excess of 1,700 events a year, show that returning visitors feel safe and secure as well as demonstrating a high degree of pent-up demand and a desire to do business,” she said. “All the indicators are pointing towards a highly successful and memorable edition of iGB Affiliate London.”

iGB Affiliate London runs from 13 to 14 April at ExCeL London, and you can register here to book your place. 

Also taking place at the venue is ICE London, running from 12 to 14 April, with the ICE VOX conference taking place from 11 to 13 April. Register here to attend the show, and find out more about the conference here. 

Revenue for the 12 months to 31 December 2021 was €24.8m (£20.8m/$28.2m), up from €11.6m in the previous year, on the back of its new acquisitions, while the number of new depositing customers (NDCs) hiked 267.2% to 133,195.

Acroud made a number of purchases throughout the year including Power Media Group in January, which in turn allowed it to offer software-as-a-service (SaaS), as well as affiliate business TheGamblingCabin in April.

However, towards the end of the year, Acroud revealed that it was to lay off around 20 staff as it pivots to a more software-driven business model, in a move it said would cut outgoings by approximately €1.2m in 2022.

Taking a closer look at costs for the year, personnel expenses were up 21.6% year-on-year to €4.5m. However, the main outgoing for Acroud was other external expenses, many of which were associated with its acquisitions, with these costs hiking 333.3% to €16.9m.

As a result, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14.6% to €4.7m, while after accounting for €1.9m in depreciation and amortisation costs, operating profit was €2.8m, down 34.9%.

Acroud also noted €2.1m in financial costs, leaving a pre-tax profit of €638,000, a 58.4% drop from €1.5m at the same point in 2020. The business received €81,000 in income tax benefits, meaning it ended the year with a €719,000 net profit, down 42.8% year-on-year.

In terms of the fourth quarter, revenue for the three months to 31 December was 160.0% higher at €6.5m, a new record for the business. Breaking this down, Acroud said its igaming segment contributed €2.7m to the revenue total, while its new SaaS business generated €3.8m.

NDCs for the quarter also jumped 187.1% to 32,328, almost as many as in the whole of 2020 (36,275).

Personnel costs were 30.6% higher at €1.1m, while external expenses climbed 353.6% to €5.0m for the quarter. EBITDA declined 36.8% to €817,000, while after depreciation and amortisation, operating profit was €274,000, down 75.2%.

Financial costs were 72.7% lower at €465,000, meaning pre-tax loss was reduced from €595,000 to €191,000. After paying €165,000 in income tax, this left a €356,000 net loss for the quarter, an improvement on the €685,000 loss posted in Q4 of 2020.

“After multiple acquisitions, we have taken a big step towards becoming a more software-driven affiliate and have successfully executed cost synergies with the launch of our efficiency programme,” Acroud president and chief executive Robert Andersson said.

“This means that we are able to do more with fewer people. We expect to see the significant effects on EBITDA levels from this programme in 2022 and onwards.

“Admittedly Acroud has had some challenges over the last few years, but with bold plans and projects being implemented since Q4 21, and with the great team we have now in place, 2022 will be a bright year for us.”

Replacing Ben Murr, who was promoted to president of TwinSpires and online gaming in January, Simon will now be responsible for providing strategic technology leadership and services.

Simon joined CDI in 2011 as vice president of operations for its United Tote division before being promoted to president of United Tote in 2012, remaining in this role for the past 10 years.

During his time as president of United Tote, Simon was responsible for over 200 employees across the US and Canada, as well as more than $25.0m in global revenue

Prior to his time with CDI, Simon spent over three-and-a-half years with specialty chemicals business Clariant, as well as almost six years with General Electric Consumer and Industrial.

“I am very proud of the results Nate has delivered in modernising United Tote over the past 10 years,” CDI chief executive Bill Carstanjen said. “We look forward to him building on these contributions by delivering further innovation and growth to the company as the chief technology officer.”

The appointment is effective immediately, with CDI to begin a search for a replacement for the role of president of United Tote.

Looking at players’ online gambling habits in the period, the report found that overall player participation was up from 8% in 2020 as more consumers turned to online for gambling, excluding lottery.

Of those who gambled online, 44% said they did so less than monthly, 10% monthly, 10% every two weeks, 15% weekly and 14% several times a week. Some 4% of players gambled online once a day, while 2% said they played multiple times a day.

Focusing on changing player habits amid the novel coronavirus (Covid-19) crisis, the report found 16% of players gambled more online than before the pandemic, 6% said they played less, while 77% said their habits remained the same.

Sports betting was the most popular choice among players with 57% saying they had wagered on sport in the six months to June 2021, while 55% bet on horse racing online. About 6% of players wagered on esports, 5% on non-sports events such as elections and 3% on fantasy sports.

Some 25% of consumers who play online placed at least one in-play bet during the reporting period. However, ACMA said these findings did not distinguish between legal in-play betting on horse racing and illegal in-play wagering on other sports. Of those who placed in-play bets, 37% were aged between 18 and 44, while 12% were 45 and over. 

In terms of illegal activity, just 5% of online players used an offshore, unlicensed website or app in the six-month period. Eleven per cent players aged 18-34 did so, while the figure was 2% for those 45 and over. A further 6% said they did not know where their service was located, while 89% only gambled with licensed operators.

“Our research suggests that the emergence of the Covid-19 pandemic in Australia may have had some impact on participation in online gambling,” the report said. “Small but notable rises in both the prevalence and frequency of online gambling in 2021 may have been brought about by the increasing adoption of digital wagering services, along with the availability of expanded gambling features and increased betting advertising over this period. 

“In addition, as Australian sporting codes returned to a more ‘normal’ schedule after the disruptions of 2020, online sports betting has bounced back and attracted new participants.”

The financial results follow online lottery platform provider NeoGames submitting an SEK4.3bn (£349.0m/€417.6m/$476.0m) offer to acquire 100% of Aspire Global’s shares.

Following the publishing of the offer document detailing the proposals, which is expected in April, an acceptance period will run until 3 May. The deal is expected to be completed during the first half of 2022.

The revenue figures reported include the company’s B2C continued operations. In December, Aspire reached an agreement with Esports Technologies to sell off these B2C assets in a $75.9m deal.

The majority of the revenue total, €118.3m, came from Aspire’s core platform business. €30.0m came from its B2B games business, driven by 2019 acquisition Pariplay, and the sports segment under the BtoBet brand added a further €11.3m.

As a result, revenue from the continuing B2B business would be €157.4m, while B2C operations generated €64.6m.

After accounting for €3.1m of EU VAT, net revenues for the year for the group including the B2C segment came to €210.2m.

Operating expenses for the year totaled €175.2m. Of this total, distribution costs were €138.1m, gaming duties came to €15.9m, while adminsitrative expenses were €21.2m. Amortisation and depreciation costs added a further expense of €35.0m.

As a result, re-tax income for the year came to €26.4m, up from €16.4m in 2020. Factoring in €2.2m worth of income tax, net profit for the year totaled €24.1m – a 60.7% increase from the year before. If the B2C segment is excluded, net profit was €19.8m.

For the fourth quarter of 2021, net revenue for the company amounted to €50.9m, up 14.6% from the corresponding period in 2020. The core business generated €28.2m during the quarter, games added €7.5m, sports contributed €3.5m, while B2C operations raised €11.8m. Without B2C revenue, the total for the fourth quarter amounts to €39.1m.

Fourth quarter expenses came to €43.3m, while amortisation and depreciation costs added a further expense of €2.4m. Net profit for the quarter was €4.8m, up from €4.2m in the fourth quarter of 2020.

2021 saw Pariplay expand across the US, gaining a supplier licence in West Virginia. During the fourth quarter, Aspire also reached a deal to acquire a 25% stake in bingo supplier End 2 End.

Aspire-owned Sportsbook provider BtoBet was also able to expand into Poland, reaching an agreement to power BestBet24’s new sportsbook.

Aspire CEO Tsachi Maimon said: “We had a strong development during all quarters in 2021 and revenues, excluding B2C, increased 24.4% in Q4.

“Aspire Global is today a focused B2B company with a leading offering in the igaming industry. We have over the past years made significant progress in building a strong position and adding tier-one operators to our partner base, not at least after the value-creating acquisitions of BtoBet and Pariplay.”

Under the agreement with Yeonama Holdings Co. Limited, Allwyn will acquire the remaining minority interest in Sazka Delta AIF Variable Investment Company Ltd, an entity through which it holds part of its interest in OPAP, for €327.4m (£273.6m/$372.4m).

Allwyn previously held a 41.2% stake in OPAP, having gradually increased its holding in the business.

Taking into account the net debt and working capital of Sazka Delta, Allwyn said the deal implies a premium of more than 10% on OPAP’s current market share price. 

Allwyn will finance the acquisition with cash from its balance sheet, including cash raised by a recent €600.0m bond issuance. 

“Acquiring the remaining minority interest in Sazka Delta is an important step for Allwyn and continues our long-term strategy of increasing stakes in our operating companies,” Allwyn chief executive Robert Chvatal said. “This transaction concludes a series of transactions through which we have bought out the interests of other shareholders in Sazka Delta over the last three years. 

“Together with our election to receive OPAP’s dividends as scrip and open market share purchases, we have increased our economic interest in OPAP from 23.7% in 2018 to 48.1% today. 

“We are very pleased with OPAP’s recent performance and are excited about opportunities to drive further growth.”

The deal comes after Allwyn Entertainment last month announced plans to publicly list on the New York Stock Exchange via a partnership with special purpose acquisition company Cohn Robbins Holdings Corp. (CRHC).

Allwyn said that the listing would result in a total enterprise value of approximately $9.3bn. The lottery giant said it hoped that the listing would support its long-term goal of becoming a global lottery-led entertainment platform.

Most of the affected employees are based in Trustly’s head office in Stockholm.

A spokesperson told iGB the redundancies will allow Trustly to refocus its geographical and product focuses, which it aims to simplify by “reducing structural complexities”. However, they said the number of employees affected in each division of the business could not be revealed for privacy reasons and because discussions are still ongoing to finalise the plan.

Speaking to iGB, a Trustly spokesperso said that igaming will continue to be “an important vertical” for the company.

This, said Trustly, will allow the company to focus on its account-to-account (A2A) product services and growth opportunities with the aim of becoming a market leader in Europe by the end of 2024.

“Following the setup of a new organization in which the group functions are replaced with regional, more agile and customer-centric management teams, and a refocused European product offering, there will be redundancies in Europe, primarily in Stockholm,” a company statement said.

In turn, Trustly has appointed a management team for its European expansion. The new appointments will take effect on 1 March.

Johan Tjärnberg has been named CEO, president and group CEO, as previously announced in December. Oscar Berglund, who stepped down as Trustly’s CEO last year, becomes head of business development. The role of head of product has been appointed to Sagar Achanta.

The current North American team remains the same.

“Together with my leadership team, I have set out a new three-year growth plan for the company,” said Tjärnberg. “The plan rests on the fact that digital A2A transactions continue to gain ground over other payment methods and Trustly is uniquely positioned to continue to be a global leader in this market.”

“We have a clear path on how to continue to win on both sides of the Atlantic and even more effectively serve our merchants.”

Gross gambling yield (GGY) for the time period – the third quarter of 2021 – came to £1.20bn, down 6% from Q2. There were 32.7 million active accounts across all verticals during the quarter, which placed 20.24 billion bets during that time – up 4% from Q2.

Slot game GGY came to £568.1m, a 1% increase from the previous quarter.

Other online casino games added £173.3m, up 4%, while poker GGY was £19.9m.

However, real event betting suffered a 16% decrease to £460.7m. The previous quarter had included a number of major sporting events, such as the latter stages of Euro 2020.

The average session length during the quarter was 18.7 minutes, with 8.1 million sessions lasting less than an hour.

For December 2021, total online GGY came to £420.5m. Slot GGY reached £200.2m, the highest figure since May 2021. Real-event betting had GGY of £142.0m during the month, while the figure for other casino games was £62.7m.

During December, 1.05 billion retail bets or spins were placed, with the online market contributing an additional 7.10bn.

Gambling sessions lasted 18 minutes on average in December. Out of a total 45.1 million sessions, 2.8 million lasted less than an hour.

Regarding the statsitics, the Gambling Commission said: “We recognise that the country is now entering a different phase as we adjust to life after a series of restrictions. We continue to expect extra vigilance from operators as consumers are impacted in different ways by the circumstances brought on by the pandemic and the wider economic environment.

“Many people will still feel vulnerable as a result of the length of the pandemic period, further uncertainty about their personal or financial circumstances or readjusting budgets and time as life returns to normal with a wider set of finance drivers.”

The initial data supplied for the Covid-19 gambling statistics proved to be wrong after it was found that operator William Hill was supplying the Gambling Commission with incorrect information. This, the GC said, could lead to “regulatory consequences”.