Month: February 2022

The increase was thanks in part to the fact that land-based casinos in Michigan operated at limited capacity in January 2021 due to rules intended to stop the spread of Covid-19.

Just under half of this revenue came from MGM Grand Detroit, which brought in $48.7m, which was 43.3% more than the casino took in during January of 2021.

Revenue from Greektown Casino, operated by Penn National Gaming, grew more slowly, by 4.1% to $20.5m. 

At MotorCity Casino, meanwhile, revenue declined by 9.9% to $29.9m.

Of the $100.9m total, $99.0m came from slots and table games, while the remaining $1.9m came from retail sports betting. This sports betting figure was 52.4% less than in January 2021, despite handle ticking slightly upwards to $35.9m.

Greektown Casino brought in the largest share of sports betting revenue, with $929,796 at its Barstool retail sportsbook. This was followed by $521,493 from MotorCity and MGM Grand’s $481,785.

The three casinos combined to contribute $11.8m in wagering taxes and development agreement payments to the city of Detroit during the month.

The state of Michigan received $73,070 in retail sports betting taxes from the casinos, while the city of Detroit received $89,308.

In addition, the Michigan Gaming Control Board announced that fantasy contest revenue for 2021 came to $16.2m, while operators paid the state $1.4m in fantasy sports taxes.

Yesterday (14 February), the Gaming Control Board said that the state’s betting sector has quadrupled its contribution to the state’s horse racing industry through taxes during the first full year of expanded gaming, with $8.1m collected in 2021.

Resorts Digital said the deal is set to be signed imminently, with the brand then able to launch once it receives approval from the New Jersey Division of Gaming Enforcement.

“I can’t wait to announce this exciting deal once it is finalised – it really will give RDG the most diverse stable of sports betting brands in the New Jersey market,” Resorts Digital Gaming chief executive Ed Andrewes said.

“This will also free up our third sports betting skin, allowing us to focus all our energy on our core casino customers.”

Because New Jersey licensees are only permitted three online sports betting skins.

As Resorts Digital already has deals in place with Flutter’s Fox Bet and DraftKings, the operator will stop offering sports betting on its ResortsCasino.com website.

All existing unsettled bets will stand, and sports betting customers will be able to withdraw funds at any time, while online casino will continue to be available.

This has broken the previous record of $43.65bn set in 2019 by 21.4%, and is a 76.6% increase on commercial revenue generated during 2020.

Revenue was affected in 2020 due to casino closures put in place during the novel coronavirus (Covid-19) pandemic.

Read the full story on iGB North America.

Cammegh, which supplies roulette wheels and other roulette-related products, has been present at ICE since the event was held at Olympia London. Andrew Cammegh said the business was excited to attend this year’s rescheduled event.

He believes his company will be the only casino brand to have exhibited at four different locations, dating back to the show’s previous incarnation as the Amusement Trade Exhibition international (ATEI). Since then it has moved from London’s Olympia, to Earls Court 1, Earls Court 2 and finally ExCeL London.

“When I look back, each edition of ICE and before that ATEI provided landmark opportunities for the business to connect with an international audience of buyers and as a consequence to grow and develop,” he said.

This year, the supplier intends to use the event to showcase a number of new products, including a progressive roulette game.

“There’s no doubt that the sector has taken a real pounding over the last two-years but there comes a time when you have to look forward which is exactly what the Cammegh brand will be doing at ICE in April,” Cammegh continued.

Cammegh has been “incredibly busy” since the pandemic struck immediately after ICE 2020, using that time to refocus its R&D energies and redouble efforts across both land-based and online, he explained.

”I believe there are reasons for great optimism and the entire team is really looking forward to welcoming back our customers after a two-year absence, introducing our new products – not least Cammegh’s Roulette Progressive which will be making its world debut at ICE 2022 – and sharing our vision for the future. 

“In general terms we are excited, optimistic and looking forward to sharing our positivity with colleagues and customers alike.”

Managing director Richard Cammegh added that the industry has missed live events and said he was excited to have the gaming world converge on one show again.

He said it was time to get back to business and rediscover the aspects that attracted executives to gaming in the first place, and “to rekindle that excitement and that unique energy”.

“When you bring operators and suppliers together in a professional and progressive environment you capture the industry at its very best – talking product, talking trends, identifying opportunities and networking with friends and colleagues. 

“Zoom and Teams have been useful tools but they are no substitute for the power and enjoyment of live events when people can reconnect, see products, touch products and most importantly get that excitement back. We can’t wait.”

Event organiser Clarion Gaming announced that ICE London would take place from 12-14 April earlier this month, after postponing the event from its traditional February dates due to the Omicron variant of Covid-19.

To register for the event, click here.

Almost a year after Blackstone tabled an initial acquisition proposal, Crown announced today (Monday) it has entered into a scheme implementation deed under which the global private equity group will acquire all of the shares in the casino owner by way of a scheme of arrangement.

Blackstone and its affiliates will pay $13.10 in cash per share, which is a premium of approximately 32% to the closing price of Crown shares on 18 November 2021 – the last trading day prior to Crown receiving an acquisition proposal from Blackstone at a price of $12.50 cash per share.

The accepted bid was submitted last month, and values Crown’s equity at approximately $8.9bn. It represents an increase in value of more than $845m on the initial offer from Blackstone in March 2021

In a statement, the Crown board said it unanimously recommends that shareholders vote in favour of the Blackstone transaction in the absence of a superior proposal, and subject to an independent expert concluding that the scheme of arrangement is in the best interests of Crown shareholders. A scheme meeting and vote is expected to take place in the second quarter of 2022.

“The board has fully considered the Blackstone transaction and unanimously recommends the proposal, subject to customary conditions such as an independent expert concluding the transaction is in the best interests of Crown shareholders and there being no superior proposal,” said Ziggy Switkowski, Crown’s chairman.

“When considering any proposal, the Crown board has consistently stated it is committed to maximising value for Crown shareholders. The Crown board and management have made good progress in addressing a number of significant challenges and issues emerging from the Covid-19 pandemic and various regulatory processes.

“Nevertheless, uncertainty remains and having regard to those circumstances and the underlying value of Crown we believe the Blackstone transaction represents an attractive outcome for shareholders.”

Blackstone has already lodged applications with FIRB, the Gaming Regulatory Authorities and the relevant counterparties to Framework Agreements in respect of the approvals it requires.

Crown Resorts wholly owns and operates two of Australia’s leading gambling and entertainment complexes, Crown Melbourne and Crown Perth, as well as the Crown Sydney resort which is not yet open for gaming activity, but is open as a hotel.

Steve McCann, Crown’s managing director and chief executive, said: “The announcement today represents a compelling offer for Crown’s shareholders to consider. The price appropriately reflects the value of Crown’s world-class assets and global reputation for premium service and experiences.

“The agreement with Blackstone also highlights the strength of the Crown brand and confidence in our future as we emerge from some challenging times, which is welcome news for our people, customers and stakeholders.”

Included within the Blackstone proposal is an implementation agreement in relation to Crown’s regulatory issues in Victoria, Western Australia and New South Wales, with this setting out terms and conditions such as the necessary approvals from relevant courts and gambling regulators.

In October last year, Crown was deemed “unsuitable” to run a casino in Victoria after it was found to have engaged in conduct that was “illegal, dishonest, unethical and exploitative”, but it will not immediately lose its licence and instead face special measures in the state.

Crown in February 2021 was also found to be unsuitable to run a casino in the Barangaroo area of Sydney after the New South Wales Casino Inquiry (Bergin Inquiry) found evidence that its facilities and accounts were used for money laundering. 

However, it may still be able to operate the Barangaroo casino if it makes certain changes, including compliance and financial audits and an end to its dealings with junkets.

In addition, the Western Australia government is investigating Crown to assess its ability to operate a casino in Perth. Its inquiry is due to conclude in March 2022.

January’s total eclipses the previous record of $463.7m set in November 2021, in addition to representing a 43.5% increase on the same month in 2021. January’s handle was also a 7.6% increase compared to the previous month.

Basketball proved to be the most popular sport to bet on, with customers wagering $192.4m. Parlay bets followed with $122.6m, while American football attracted $118.3m in wagers.

In terms of adjusted gross revenue (AGR), Indiana’s total came to $35.6m for January – up 21.5% from 2021, but below the record high set in November.

Blue Chip Casino and its FanDuel-operated sportsbook continued to have the highest AGR of $12.2m from a handle of $127.2m. The DraftKings-partnered Ameristar Casino came next with $11.2m despite bringing in a higher handle of $168.9m.

Belterra Casino, another user of FanDuel’s sportsbook, had AGR of $5.0m from $55.5m handle. Hollywood Lawrenceburg and its Barstool sportsbook generated $1.9m in revenue from $48.1m in wagers.

Indiana also collected $3.4m in sports betting tax for January, up from $2.8m the previous year.

Following the provincial government’ announcing its reopening plan, the Casino de Montréal, Casino de Charlevoix and Casino du Lac-Leamy as well as at the Salon de jeux de Québec and Salon de jeux de Trois-Rivières will be reopening next week.

Following this first wave of reopenings, the Casino de Mont-Tremblant will be opening on Thursday, March 3.

The lifting of restrictions was announced by Premier François Legault, who said: “We will need to learn to live with the virus. There may be a sixth wave eventually, but we will have to live with Covid-19,.”

Despite rules varying within the hospitality sector, the Minister of Health and Social Services, Christian Dubé, has stated that vaccination passports will be required for entry into casinos and masks will be mandatory for all employees- clients will also be required to wear face coverings on entry.

The capacity in Québec casinos will be operating at 50%, seeing every adjacent slot machine made unavailable for play, effectively halving the slot offer for most properties.

Opening hours will vary depending on establishments. However, Loto-Québec will be reactivating its video lottery terminals in bars once they reopen and once the Kinzo activities start up again.

The Québec government has said it intends to lift all public health restrictions by the middle of March.

Elsewhere in the world, the ECA recorded continued Covid-19 pressures into January 2022, with over 95% of European casinos requiring proof of vaccination, a negative lateral-flow test and mandatory mask wearing needed for admission into casinos.

Under the Gambling Regulatory Authority of Singapore Act 2022, Singapore’s Casino Regulatory Authority would be renamed the Gambling Regulatory Authority of Singapore.

It would consist of up to 17 members, all of whom would be appointed by Singapore’s Minister of Home Affairs. Each can hold their position for up to 3 years.

If passed this bill would also amend the 2006 Casino Control Act by altering the definitions of “authorised person” and “authority” among a number of smaller amendments.

The Authority would have the right to distribute, renew and revoke licences. It would also have the right to issue fines in the instance of criminal conduct that violates the Gambling Control Act 2022.

If passed, this bill is set to be enforced from mid-2022.

Singapore’s Minister of Home Affairs (MHA) first announced plans to reconstruct gambling in the country in April 2020. This included plans to establish a single Gambling Regulatory Authority (GRA) instead of several bodies, including the Casino Regulatory Authority for casino gambling and the MHA’s Gambling Regulatory Unit for remote gambling and fruit machines.

Meanwhile, the Gambling Control Act would amend a number of sections in Singapore’s 2006 Casino Control Act, including adding definitions of what constitutes gambling and gambling operators in section 153(1) and excluded persons in section 165(6). Partaking in or offering illegal gambling services, including proxy betting, would be punishable with a fine of SGD$500,000 and a prison term of up to 7 years, while repeat offenders could receive a fine of SGD$700,000 and a prison term of up to 10 years.

Licences would be made available for several types of gambling activity including types of gaming machines, certain types of betting operations and lotteries and certain gambling facilities.

Those applying for a licence or a licence renewal would have to pay an unspecified application fee or renewal fee.

Licensees would be obligated to block excluded and underage individuals from entering a gambling institution and from partaking in gambling activities.

Both bills will have a second reading following the conclusion of Singapore’s full year 2021-2022 Estimates of Expenditure proceedings, which concern the country’s budget.

Last month Singapore’s parliament passed the Gambling Duties Act 2022, which could increase ordinary casino players revenue from 15% to 18%.

The group, which owns and operates five casino properties in New Zealand and Australia, generated revenue of $216.8m in the six months to 31 December 2021, which was down 31.4% on the same period in 2020.

During the period, its flagship SkyCity Auckland property was closed for 107 days. The period was also impacted by on-site restrictions with tourism-related business negatively impacted by international border closures.

Gaming revenue totalled $160.0m, which was down 37.0% year-on-year. Almost half of that figure came from its flagship SkyCity Auckland property.

Non-gaming revenue was at $48.0m, compared to $53.8m in 2020. Some $52.5m came from insurance reinstatement recovery related to the 2019 fire at the under-construction New Zealand International Convention Centre.

SkyCity Online Casino brought in $9.3m, which was up 24.0% on the prior period in 2020.

In terms of costs, SkyCity paid out $215.7m to suppliers and employees, of which $123.3m was in wages, which was down on the prior year. During the period, the group received New Zealand Government wage subsidies of $17.2m during the closure of the Auckland and Hamilton sites.

Marketing and communications costs were down to $6.6m, while sponsorships and other community expenses almost halved to $3.8m.

Normalised earnings before interest, tax, depreciation, and amortisation (EBITDA) was down 69.2% to $20.4m.

The group announced a loss for the period of $33.7m, compared to a profit of $77.9m during the same period in 2020.

Michael Ahearne, SkyCity’s chief executive, said “Covid-19 has continued to extensively impact the business and operations at each of SkyCity’s properties in the first half of the financial year.

“Government mandated lockdowns resulted in the closure of SkyCity Auckland for 107 days, SkyCity Hamilton for 65 days, SkyCity Queenstown for 22 days and SkyCity Adelaide for 8 days.

“When permitted to reopen, the properties have operated under significant constraints due to restrictions on mass gatherings and physical distancing requirements and I’m extremely proud of how the SkyCity team has adapted to those challenges.”

He added: “The performance of the SkyCity Online Casino business has been a real highlight for the period, again exceeding expectations with significant growth in revenue, EBITDA, and customer numbers.”

SkyCity Adelaide recently announced that Covid-19 vaccination will be a requirement for entry to all of its venues from this month.

From February 10, all employees and patrons will need to show proof of full vaccination or a medical exemption to enter SkyCity Adelaide. These venues include the South Australia venue’s casino, hotel and bars and restaurants, which already require wearing face masks, physical distancing and QR code check-in.

Gaming revenue contributed KRW697.0m to the revenue total, up 72.4% from 2020. Non-gaming revenue added a further KRW91.4m.

Operating expenses for the year came to KRW726.8m, a 33.5% increase on the previous year. Casino costs were the largest expense at KRW459.9m, followed by hotel costs of KRW135.0m.

Slot machine production cost the company KRW2.8m, and subsidiaries added further expenses of KRW22.7m. Other costs totaled KRW106.5m.

Gross profit for the year came to KRW61.6m, up 193.5% from 2020. Selling, general and administrative costs came to KRW114.3m, leaving operating losses of KRW52.7m.

When factoring in additional income of KRW72.9m, other expenses totaling KRW34.4m, and KRW17.8m of tax expenses, net losses for the year amounted to KRW10.6m – a 96.2% improvement on 2020.

The company had to deal with closures to its venues during 2021 as a result of the novel coronavirus (Covid-19) pandemic, as a number of its employees had returned positive test results.

In terms of the fourth quarter of 2021, Kangwon Land recorded revenue of KRW242.1, up 84.4% compared to the corresponding period in 2020.

Gaming revenue for the quarter came to KRW214.8m. Table game revenue was KRW98.1m, while slots added a further KRW96.1m. Membership club revenue was KRW42.8m, while KRW22.1m was paid out as High1 point bonuses to VIP customers.

Non-gaming revenue amounted to KWN27.3m, up 93.2% from 2020. Hotel revenue was KWN17.7m, condo revenue added KWN4.7m, with ski and golf resort revenue contributing a further KWN4.3m.

With operating costs of KWN227.0m, gross profit for the quarter came to KWN15.1m. General costs of KWN35.2m resulted in operating losses of KWN20.0m for the quarter, up from KWN76.1m in 2020. Net losses came to KWN11.0m, up 67.0%.