Month: February 2022

The partnership will begin on 20 February, at Lokomotiv Sofia’s first match of the year against the Central Army Sports Club. The Betano logo will be featured on Lokomotiv Sofia’s match jerseys.

The deal, which marks Betano’s first club sponsorship in Bulgaria, is set to last for three years.

“I am delighted to announce our partnership with Lokomotiv Sofia, a historic football club and an incredible team,” said Tsvetin Yordanov, country manager for Bulgaria at Kaizen Gaming.

“This sponsorship clearly highlights our strong commitment to the Bulgarian market and our support for Bulgarian sports and society.”

This is the latest club sponsorship for Betano, the most recent of which include Porto FC and Primeira Liga football club Sporting Lisbon in Portugal

“I am proud that Lokomotiv Sofia is the first Bulgarian club to be sponsored by an international company,” said Ivan Vassilev, owner of Lokomotiv Sofia.

“I am convinced that together we will achieve our goals. This is just the beginning of a sustainable and successful partnership.”

Last year Betano entered into a sponsorship deal with Chile Campeonato Nacional football club Deportes La Serena.

In his new role, Rosenberg will head the group’s PR team in the US and also drive branding efforts across Better Collective’s US assets.

Rosenberg joins Better Collective after spending time working in digital marketing, branding and communication across a number of industries including technology, esports and sports betting.

“This is a dream opportunity for me as an avid and unapologetic Philly sports fan and member of the growing online sports betting community,” Rosenberg said.

“Sports betting isn’t going anywhere and with more US states bringing legalized mobile sports betting online this year, more and more sports fans will be able to mix art and science in making their picks.”

Better Collective US chief executive Marc Pedersen added: “It is great for Better Collective US to get Adam onboard. He has the skills and experience we are looking for to support our continued strong growth in the US market and to increase the awareness about our many strong US brands including Action Network, Vegas Insider, US Bets and Sports Handle.”

The appointment comes after Better Collective also appointed Britt Boeskov, previously of Kindred Group, as its senior vice president of strategy.

Also last month, Better Collective entered into a sports betting partnership with US daily newspaper the New York Post. This will see Better Collective deliver its technology and commercial content for online sports betting through its Action Network platform to help educate New York Post readers about wagering.

The revenue figure also represents a 10.1% increase on the revenue total from 2019, before the Covid-19 pandemic.

€1.73bn of the revenue total was derived from lottery operations, up from €1.50bn in 2020. Meanwhile €464.0m came from sports betting, up 24.7% from the previous year.

Customers staked €18.98bn across the year, an increase of 10.8% from 2020. €14.73bn was staked on lottery games – €8.98bn for instant lottery and €5.74bn for draw games – while €4.22bn was wagered on sports betting.

Marketing and communication costs came to €414.7m for the year. General and administrative costs were €199.4m, while other expenses totaled €16.3m.

Operating income for the year amounted to €391.8m, up from €292.7m in 2020. Financial debt and other costs totaled €7.1m, while other financial instruments and shares in net profits from joint ventures added a further €32.0m in income.

As a result of this, pre-tax profits came to €416.6m. After accounting for €122.5m of income tax, net profits for 2021 were €294.2m – a 37.7% increase from 2020.

Earnings before interest, taxation, deprecaition and amortisation (EBITDA) amounted to €522.0m, up from €427.0m the year prior.

Stéphane Pallez, chairman and CEO of the FDJ group, said: “The year 2021 marks the return of FDJ to its pre-crisis growth trajectory for all of its activities. The Group’s 2021 results are significantly higher than those recorded in 2019, thanks to the acceleration of digital and the growth in the network of points of sale. 

“These performances testify to the relevance of our strategy and lead us to revise upwards the 2025 objectives communicated at the time of the Group’s IPO, both in terms of growth and EBITDA margin. 

“At the same time, we are pursuing our societal commitments, which have already been strongly reinforced since the start of the health crisis. FDJ will continue to combine financial performance and extra-financial commitments for the benefit of all of its stakeholders.”

2021 saw FDJ sign an agreement with retail and e-commerce investment business Plug and Play Retail, as well as agreeing to sponsor the women’s Tour de France.

The company was also subject to an investigation from the European Commission after it was determined that its privatisation violated EU laws.

The debt restructuring has lowered PlayAGS’ overall debt by approximately $40.0m, while annual cash interest expenses have decreased by around $10.0m.

The first lien term loan has been agreed in principle, the repayment of which is due in 2029 at an interest rate of 4%. The supplier has also secured a $40.0m credit facility which also carries a 4% interest rate.

PlayAGS recently forecasted revenue growth and reduced net losses for its full year 2021 results. Chief financial officer Kimo Akiona said: “I am extremely pleased with the outcome of the Company’s recent debt refinancing, as it simultaneously lowers our total principal amount of debt outstanding, reduces our borrowing costs and extends key debt maturities.

“Additionally, the increase in our revolver capacity from $30 million to $40 million strengthens our overall financial flexibility.

“Looking ahead, supported by the approximately $10 million of annualized cash interest expense savings we expect to realize, relative to the level incurred for the full-year 2021, coupled with the operating momentum we continue to see in the business, I remain confident in our ability to deliver upon our previously issued year-end 2022 net leverage target of less than 4.0x.”

The Authority pledged to continue the fines, if necessary, until the amount meets Kindred’s annual gross profit from the country, which it has estimated to be NOK437m.

The fine will begin two weeks after the Authority comes to a decision on whether to implement it,

In April 2019 the Authority issued an order against Kindred subsidiary Trannel International, through which Unibet operates, to prevent it from offering gambling in Norway without a licence.

This was appealed to the Ministry of Culture and the Lottery Authority Board, but the appeal was not upheld.

At the time, the regulator noted that the sites can be viewed in Norwegian, with deposits and bonuses are in Norwegian currency and pointed out Kindred offers Norwegian-language customer support. In addition, it marketed its offerings through TV commercials that aired in Norway – but were broadcast on satellite channels based in other countries – and used Norwegian ambassadors, Norwegian press release services and Norwegian social media channels.

During the appeal process, Trannel requested that the Oslo District Court assess the decision to prohibit Unibet from operating in Norway. This case will be heard at Oslo District Court in May 2022.

“When a gambling company that operates illegally in Norway can earn NOK437m on its illegal activity within a year, we owe it to the Norwegian people to do what we can to stop the illegal activity,” said Atle Hamar, director of the Norwegian Gambling Authority.

“The illegal gambling offer has not yet ended. We take that seriously. Therefore, the Authority warns that it will now make a decision on a coercive fine if Trannel does not stop offering illegal gambling in Norway.”

The fine will be revoked if Trannel submits a proposal on how it plans to stop offering illegal gambling in Norway.

The handle total was a 2.5% improvement on the previous record set in December 2021.

Online sports betting  revenue for the month came to $34.7m. Adjusted gross sports betting receipts, which account for deductions for the monetary value of free play incentives, totaled $19.17 million for internet sports betting.

Operators also paid $1.4m in sports betting taxes during the month.

Online gaming revenue came to $121.2m in January. Adjusted gross receipts for online gaming were $109.2m. Internet gaming taxes and fees totaled $19.1m.

Combined, operators paid tax fees of $20.5m to the state during the month while combined revenue for online sports betting and igaming was $155.9m. This was a 0.4% decrease on December 2021, and a 282.1% increase from January 2021, the first month of activity for online operators in Michigan.

Combined adjusted gross receipts for both markets came to $128.4 million for the month.

Detroit’s three casinos – MGM Grand Detroit, MotorCity Casino and Penn National’s Greektown Casino Hotel – paid $5.9m in taxes to the city during January.

Michigan recently reported revenue figures of $1.40bn for the entirety of 2021.

A bill to reform gambling in Northern Ireland – replacing the current legislation that dates back to 1985 – was introduced in the Assembly last year, and presented to the Committee for Communities for review.

The new legislation is “designed to strengthen the existing regulatory protections, for operators and consumers”. It would amend a number of rules, including removing a ban on Sunday trading for bookmakers, and ensuring that gambling contracts are legally enforced.

A public consultation in 2019 revealed that 66% of participants thought that bookmakers office hours should be relaxed, a majority also believed that bookmakers should be allowed to open on a Sunday.

In addition, the bill would allow the government to create a levy for the gambling industry, permit pool betting in bookmakers’ shops, allow for bingo play without club membership requirements and make it an offence to allow those under 18 to play gaming machines.

It would form part of a “two-phased” plan for gambling reform in Northern Ireland, with some topics to be addressed by legislation that has currently not been published.

In its report on the bill, the committee said it largely supported the bill.

“The committee is generally supportive of key elements of the Bill, including the legal enforcement of gambling contracts and the removal of restrictions on promotional prizes and offerings,” committee chairperson Paula Bradley said.

“The majority of the committee were supportive of allowing bookmakers and bingo halls to operate on Sundays and Good Friday.”  

However, it also noted some recommendations for the bill. It said that Northern Ireland does not have a specific strategy to reduce gambling harm, and that one should be created.

Regarding machine play for under-18s, the Committee said more steps need to be taken to separate adult gaming machines in gaming arcades, in order to prevent minor players from being easily able to play the machines.

The legislation also included an “enabling clause” for a code of conduct for operators, but this code itself was not finalised in the version of the bill it reviewed. As a result, it could not provide specific recommendations but said that a code of conduct should “ensure that there is not the potential to push people towards illegal gambling or allow problem gamblers to move from premises to premises undetected”. 

It added that the code should work to make sure that gambling is not advertised “like it’s a game” or in a way that appeals to young people. 

The committee also mentioned a number of other areas that it hoped would be addressed with the follow-up legislation.

The first of these was the creation of a Northern Ireland gambling regulator to enforce gambling laws, which would otherwise be enforced by the police. This, the committee noted, had already been supported by Minister for Communities Deirdre Hargey, who introduced the bill.

In addition, it called for legislation to address online gambling, which Northern Ireland does not currently have any specific legislation to address.

The body also noted that certain changes may soon come into force in Great Britain following the Gambling Act Review, and that efforts should be made to ensure Northern Ireland can keep up with these updates. The committee specifically noted the example of consumer redress, where some reformers have proposed the idea of a Gambling Ombudsman in Great Britain.

The group also said that advertising should be looked into further.

Following the publication of the report, the bill moves to the further consideration stage. At this stage, amendments to the bill may be debated by Assemblymembers.

The legislation that emerges from this process would then go to a final vote by in the chamber.

“Restructuring of gambling legislation in Northern Ireland still has a very long way to go,” Bradley said. “We are hopeful however, that this Bill will lay the groundwork for a more comprehensive and holistic approach when the Department for Communities introduces the second stage of reforms in the next Assembly mandate.”

The KSA observed all 11 licensed operators in the country’s regulated igaming market, which launched on 1 October last year, and found three licensees intended to advertise on platforms primarily aimed and children and young adults.

These included the Donald Duck website, YouTube channel ‘TeenTok’ and around television family programs such as ‘MarbleMania’.

The regulator did not disclose the identity of the operators involved but did confirm that it issued an official warning to each of the licensees and ordered them to immediately adjust their advertising policy to prevent further regulatory action. 

“Less serious deviations” were also identified at further seven operators, and, as such, KSA ordered these licensees to take measures and adjust their strategies. 

KSA added that if breaches of national laws related to gambling advertising were to take place, this could lead to fines for operators. 

“The protection of vulnerable groups such as minors, young adults or problem players is a priority for the KSA,” KSA said. “They are extra sensitive to gambling addiction and are therefore not allowed to see gambling advertising. 

“The law sets strict requirements for this. Even if advertising is outsourced, the licence-holder remains responsible. The agreements must be laid down in writing in advance.”

An initial 10 operators were issued online gambling licences by KSA. These included Bet365, UK-based bingo operator Tombola and Malta- and Estonia-licensed Play North, 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.

JOI Gaming, a division of Dutch land-based casino operator JVH Gaming & Entertainment Group, also secured an online gambling licence in November.

A total of $1.98bn was bet in the period between January 8, when the market opened, and February 6, according to figures released by the New York State Gaming Commission.

Consumer spending included more than $600m on football, $540m on basketball and almost $80m on ice hockey.

The latest figures from the Commission also revealed that gross gaming revenue for the first 30 days of legal online sports betting in the state reached $138.5m. At a 51% tax rate for the state, this meant more than $70.6m in tax revenue was generated during the period.

GeoComply, which works with licensed sportsbooks in New York to ensure the geolocation requirements of players, also said more than 1.76 million unique player accounts were utilised for over 187 million transactions during the period.

Last week, it was revealed that New York already surpassed the US monthly handle record in the first 23 days of legalisation, when the $1.63bn wagered by consumers beat the $1.30bn spent in New Jersey in October 2021.

New York Governor Kathy Hochu welcomed the figures, saying in the space of one month, it is clear how legal online sports wagering can support New York’s economy moving forward.

“Over the past month, we’ve seen how mobile sports wagering can be an economic engine for New York, driving significant funding to our schools, youth sports, and so much more,” Governor Hochul said.

“As this new industry continues to grow, New York will make sure we have the resources and guidelines in place to make it a success for all.”

Breaking down each licensed operator’s performance, Caesars Sportsbook retained its early lead, processing $702.7m in bets in the first 30 days, posting $64.7m in revenue.

Flutter Entertainment-owned FanDuel was second with a $632.0m and $30.2m in revenue, then DraftKings with a $454.9m handle and $35.8m in revenue.

BetMGM took $112.3 in bets and turned $3.7m in revenue, though it did not launch in New York until January 17. Caesars, FanDuel, DraftKings and Rush Street Interactive (RSI) all went live on opening day (January 8).

PointsBet, which only launched on January 25, took $41.7m and reported $2.5m in revenue.

RSI, however, posted a $40.9m handle and $1.6m in revenue, despite having been live since day one in the state’s legal market.

WynnBet, the online arm Wynn Resorts, is also now active in New York, but did not go live until February 7, one day after the end of the 30-day reporting period.

Overall, revenue was up 28.0% year-on-year to €66.8m (£55.9m/$75.8m).

Media services continued to make up the vast majority of GiG’s overall revenue, bringing in €45.0m, up 31.2% from 2020.

The media services division continued to expand in the US, now having approval to do business in 19 states.

“GiG will continue to invest in the US market to carry out our long-term strategy to claim the US market through our premium assets, Wsn.com and Casinotopsonline.com,” the business said.

GiG CEO Richard Brown added that he was especially impressed by the continued growth of this segment.

“Media Services continues to go from strength to strength, expanding rapidly in new markets and taking further share of wallet in existing markets,” he said. “The team and strategy has delivered exceptionally well during 2021.”

Platform services made up the remainder of revenue, at €21.4m, which was 13.2% more than in 2020. 

This platform services figure includes €600,000 from white label services. White label revenue was down 85.7% from the year prior, as GiG terminated the last of its white label deals during the year.

GiG noted that if the full operations of its sole 2021 white label client, SkyCity, were counted as revenue, the supplier would instead have brought in €82.6m in revenue. However, the operator’s share of revenue was removed first, as per standard white label accounting principles, in order to provide a more comparable view.

GiG’s non-white-label platform revenue was up 40.8% from 2020.

The growth in platform revenue came despite the fact that implementation of Germany’s new regulatory regime led to a €700,000 decline in revenue from that country.

During 2021, GiG platform services launched in Argentina through a partnership with Grupo Slots, meaning it is now live in 14 jurisdictions.

GGR from GiG platform clients came to €408m, up 18.0% from 2020.

GiG’s sports betting services division – which is set to be phased out after GiG agreed to acquire betting supplier Sportnco – brought in a further €100,000.

After €472,000 in costs of sales, GiG’s gross profit was €66.3m, up 28.0% from 2020.

The supplier then paid €45.5m in operating expenses. This was comprised of €11.2m in marketing expenses and €34.3m in other operating expenses.

As a result, its earnings before interest, tax, depreciation and amortisation (EBITDA) came to €20.7m, which was more than five times the total recorded in 2020.

It then incurred a further €9.4m in depreciation and amortisation costs, plus €4.3m on the amortisation of affiliate assets it acquired during the year.

As a result, its earnings before interest and tax (EBIT) came to €7.0m, compared to a €143,000 loss the year before.

However, the business also made an €8.2m loss on financial instruments, though it also made a gain of €1.1m on exchange rate fluctuations on bonds.

This led to a pre-tax loss of €116,000, which was significantly less than the €3.6m loss before taxes recorded a year earlier.

After a €509,000 tax refund, GiG’s profit from continuing operations was €403,000, compared to €2.7m in 2020.

However, after also accounting for its discontinued B2C operations, which were sold to Betsson last year, GiG lost €62,000, after having made a €4.1m loss the year before.

“2021 was an exciting and rewarding year, and our first full year as B2B only focus, and we have made real ground in positioning the business and have continued to focus on improving our client offering and operational structures to enable us to continue to pursue the success and growth opportunities that are in front of the business to ultimately deliver value for our shareholders,” Brown said.

Looking just at the fourth quarter of 2021, GiG’s revenue was €18.2m, up 29.1%.

Media services made up €12.8m of this total as it achieved another record-high quarter and platform services brought in €5.3m. Of the €12.8m in media services revenue, €3.6m came from paid media services and €9.2m from publishing.

After €12.5m in operating expenses, GiG’s EBITDA for the quarter was €5.6m, up 36.5%.

Following depreciation and amortisation costs, its EBIT was €1.8m. 

After accounting for non-operating costs and income, GiG recorded a loss of €1.5m from continuing operations, and a total loss of €1.7m when discontinued operations are included.

“While pleased with results for Q4, I still very much feel that we are only beginning our journey towards creating full value potential in the group’s business,” Brown said.

“We have closed off 2021 with another strong quarter for the group with revenues at an all time high, 29% up and EBITDA up 35% compared to the fourth quarter of 2020, and importantly we have laid a truly exciting and expansive structure in place to further accelerate our global long-term ambitions via the acquisition of Sportnco in December.”

At the end of the quarter, GiG announced that it had agreed to acquire sportsbook and platform provider Sportnco Gaming for an initial consideration of €50.8m. 

At the time, GiG said that Sportnco expects to generate revenue in excess of €9m for 2021, with EBITDA of around €5m. 

Of the €50.8m, €23.5m will be paid in new GiG shares, and the remaining €27.3m will be paid in cash.

To fund the cash consideration of the deal, GiG entered into an agreement with SkyCity Entertainment Group, under which the New Zealand casino operator will invest €25m into the business through a directed share issue. 

The deal is expected to close before the end of Q1 this year.