Month: February 2022

The announcement was made as part of a pre-close update regarding the company’s full year ended 31 December 2021.

Sportech downscaled by divesting a number of key assets throughout the year, naming its sales of its Global Tote business to BetMakers and raffle technology supplier Bump 50:50 to Banknote as particularly important.

This downsizing led to Sportech removing its shares from the London Stock Exchange and moving to the Alternative Investment Market, after which CEO Richard McGuire and chief financial officer Tom Hearne stepped down from their roles.

Sportech emphasised that its venue business was a “key component” of its affairs in 2021. It generated a majority of the revenue in its 2021 half year results, at £11.5m.

The venue business is based in Connecticut, comprising of Sportech’s MyWinners.com wagering platform, 11 Winners venues and two sports bars.

In the update Sportech stated that not receiving a sports betting licence in Connecticut was “a disappointment”, but that its deal with the Connecticut Lottery Company meant that it could still conduct sports betting in the state.

Sportech added that its capital preservation and net cash position were crucial throughout 2021, leading to a year-end cash total of £21.7m

The company plans to announce its full year 2021 results on 31 March.

Looking forward to 2022, Sportech predicts a rise in revenue due to Covid-19 recovery and higher attendance for sports betting at venues.
“Sportech has changed significantly over the course of a busy year and a period of consolidation of the remaining operations and reshaping PLC costs is paramount in 2022 to provide a platform for the future activities,” said Andrew Lindley, CEO of Sportech. “The full recovery from Covid-19 and introduction of sports began to impact the venues positively in December 2021 and, subject to some mild impact on staffing and expected footfall in January due to the surge of the Omicron variant in the US, the outlook for 2022 and beyond is very positive.”

“We will be discussing the shape of the future business with key shareholders to ensure alignment with the board on objectives and direction for the divisions and group.”

Last month the divestments continued with Inspired Entertainment’s acquisition of Sportech’s lottery technology division for $12.5m.

In its results for the fiscal year to 31 December 2021, the group announced consolidated sales of JPY90.4bn ($783.0m/£578.5m/€691.2m), which was down 0.5% from 2020.

The majority of sales came from its Amusement Equipment business, which includes the manufacture of Pachislot and Pachinko machines. This segment contributed JPY54.2bn, which was down 12.3% on the JPY61.8bn of 2020. The group said sales in 2020 had been high due to new titles in long-running brands, while it had followed a strategy of launching major titles in the fourth quarter of 2021 and the start of 2022.

Unit sales fell from 139,152 in 2020 to 127,094 in 2021, with the reduction in part due to Covid-19 restrictions in Japanese gaming halls.

UEC’s Integrated Resort business, which includes the Okada Manila property in the Philippines, saw an increase in revenue from JPY27.7bn to Y35.2bn. Its performance was hampered by Covid-19 restrictions in the country, though the business did launch online gambling during 2021.

Cost of sales grew by 7.6% to JPY43.9bn, leading to a gross profit of JPY46.5bn, which was 7.0% down from 2020. Amusement Equipment made a gross profit of JPY13.3bn, while high costs in Integrated Resorts led to a loss of JPY1.9bn.

Selling, general and administrative expenses were down 6.4% to JPY44.6bn, with a reduction in particular in marketing due to closed premises in its geographical locations. UEC announced an operating profit for 2021 of JPY2.0bn, which was down on JPY2.6bn in the previous year.

UEC reduced its ordinary loss compared to 2020 thanks to the weakening of the Japanese Yen in comparison to the US Dollar. Its ordinary loss was JPY2.5bn compared to JPY9.2bn in 2020.

Intema agreed to acquire Livestream last month, in a deal worth up to $14.8m (£11.1m/€13.3m). Intema first agreed to the acquisition in May 2021.

This total will be issued in $8.0m in cash, $4.0m by the issuance of a secured vendor take back note and the delivery of 6,470,588 of Intema common shares.

An additional $3m is set to be paid if Livestream hits gross gaming revenue (GGR) of $7.5m throughout the 12 months post-acquisition, along with an extra $1.5m if Intema posts $11.3M within the 13-to-24 month period after the deal closes.

On receiving the licence Laurent Benezra, president and CEO of Intema, spoke of the growth opportunities the acquisition could afford the business.

“While the process has taken longer than expected, Loot.Bet is a major online gaming platform and a key part of Intema’s growth plans,” said Benezra.

“Throughout the acquisition period, we have been working hard in parallel to build our esports and igaming ecosystem and the addition of Loot.Bet will accelerate our progress on that front significantly.”

In September 2021 Intema completed its acquisition of Team Bloodhounds, the owner of Canadian esports brand Team BH.

Customers of the Swedish Horse Racing Totaliser Board can now access Stockholm-listed Scout Gaming’s portfolio of games, including the SEK2.5m Guaranteed Champions League Knockout Tournament where the overall winner will receive a minimum prize of SEK500,000. The launch also includes a number of English Premier League contests.

Under the deal, ATG said it will also join Scout Gaming’s growing network of tournaments and will gradually add more daily and season-long fantasy contests across more sports and leagues.

Andreas Ternström, chief executive at Scout Gaming, said: “We are delighted to add ATG to the Scout Gaming Network and for its players to be able to compete in some of the most thrilling and intense fantasy sports contests with prize pots.

“By launching fantasy sports to its players, ATG is able to deliver tremendous added value while also standing out from its rivals. Fantasy is proven to take player entertainment and enjoyment to the next level, resulting in greater engagement and ultimately higher lifetime values.”

Christian Erlandsson, head of sports betting at ATG, said: “We have grown fast since our launch of sports betting just three years ago. Fantasy sports enhances our total offer, and we are excited to add it.”

In December, Scout launched daily fantasy sports platform Fanteam in the US. Scout saw its quarterly revenue drop by 19% year-on-year between July and September 2021.

Sports Illustrated Resorts is the latest expansion of the brand from Authentic Brands Group (ABG), the business that acquired the famous sports publication’s rights in 2019. A Sports Illustrated sports betting platform powered by 888 launched in Colorado last year, with that business set to be boosted by the development of the resorts.

To read the full article, visit iGB North America.

The Michigan Agriculture Equine Industry Development Fund (AEIDF) saw $8.1m collected in taxes in 2021 on various forms of betting regulated by the Michigan Gaming Control Board (MGCB), including internet wagering and simulcast wagering on horse races, internet casino gaming and online sports betting.

Internet casino gaming and internet sports betting completed their first nearly full year of operation in 2021 after a 22 January launch.

To read the full article, visit iGB North America.

85 of these alerts sent to partners went to football governing bodies, with 46 going to FIFA and 39 going to UEFA. The remaining 31 were shared between the International Olympic Committee (IOC), Swiss Gambling Supervisory Authority (GESPA) and the International Tennis Integrity Association (ITIA).

In total, 1402 alerts – including those not sent to partners – were generated in 2021. 75.1% of these alerts – 1053 – came before a match started. 82 alerts came during play, and 267 came post match. The alerts were categorised as green, yellow or red depending on their severity.

747 alerts were green, relating to factors including team news, member information, an incorrect starting price or minor odds changes. 331 alerts were yellow, resultant of unexplained odds changes or rumours of match fixing before the fact. There were 91 red alerts last year, up from 86 in 2020. These could be caused by suspicious odds changes, rumours of match-fixing from a named source and Betfair exchange volume and patterns.

Most of the alerts concerned sporting fixtures in Europe, where 716 alerts were generated. 301 alerts came from Asia, 212 from South America, 51 from Africa and another 41 from North America.

Football continued to be the sport to generate the most alerts, with 1,005. Basketball followed with 167, with esports adding a further 121. Tennis generated 44 alerts, while ice hockey was responsible for 46.

Team-related news was the most common reason for triggering alert, with GLMS recording 367 instances where that was the case. 279 alerts related to significant odds changes, while 230 cases were requests by members.

GLMS president Ludovico Calvi believes the novel coronavirus (Covid-19) pandemic has played a part in the rate of alerts.

Calvi said: “The sport ecosystem has never been so vulnerable as today and this makes Match Fixing one the greatest problem in modern sport. I strongly believe that we have been able to set very solid foundations to drive the success of our association in the titanic fight against Match Fixing and to protect Sports Integrity worldwide.

“I am fully convinced that GLMS represents a tremendous vehicle not only for our Association and its members but also for all other key interested stakeholders, our communities, and our society as a whole.”

Revenue for the 12 months to 31 December 2021 reached €391.2m (£329.0m/$445.1m), up 1.0% from €387.5m in the previous year. The share of revenue from locally regulated markets was compared to 2020, rising to 74% (€289.5m).

Over the year, the number of new depositing customers (NDCs) fell 3.3% year-on-year to 724,540, though this was mitigated by returning depositing customers increasing 12.5% to 1.1 million.

The group said its progress in 2021 was hampered by regulatory challenges. In Germany a 5.3% turnover tax for online poker and casino – the highest rate in Europe, LeoVegas said – came into effect from July. As a result the market only contributed 2% of group revenue in Q4, compared to 15% in the prior year.

The operator also halted operations in The Netherlands ahead of the country opening its regulated online gaming market on 1 October, in the hope of securing a licence in the future. This market alone contributed 6% of LeoVegas’ revenue in the third quarter of 2021.

The operator also moved to ramp up its sports betting capabilities through its acquisition of Expekt for €5.0m, coupled with the relaunch of the brand in the Nordics region.

“The new launch of Expekt has been a major success, with sales increasing almost fourfold since the acquisition,” chief executive Gustaf Hagman said. “We are now plan- ning to expand into more markets.”

The group also took a 25% stake in SharedPlay, a startup that allows players to share their gaming experiences with each other.

LeoVegas also reached an agreement with Caesars Entertainment to launch its online casino product in the state of New Jersey in the first half of 2022, a deal that will mark its entrance into the wider US market. The operator is also planning to move into Ontario, once the Canadian province’s igaming market opens on 4 April. It is already active in Canada, which accounted for 13% of group revenue in January 2022.

Expenses for the year rose faster than revenue grew, with marketing expenses the main outgoing for LeoVegas, rising 8.5% year-on-year to €143.8m.

Personnel expenses were also up 5.4% to €53.2m, while other operating expenses edged up 3.7%. Cost of sales were down 3.2% to €65.7m, but gaming duties increased by 11.7% to €64.0m, partly due to Germany’s new tax regime.

Adjusted earnings before interest, tax, depreciation and amortisation (EBTIDA) was down by 19.5% from €55.4m in 2020 to €44.6m.

After including €11.7m in depreciation and amortisation costs, as well as €13.6m related to the amortisation of acquired intangible assets and impairment of assets, this resulted in an operating profit of €18.0m, down 21.1% year-on-year.

LeoVegas also noted €4.0m in financial costs, leaving a pre-tax profit of €14.1m, a decline of 34.4% from €21.5m in 2020. The operator paid €2.3m in income tax, leaving a net profit of €11.8m for 2021, down 38.9% year-on-year.

Turning to the fourth quarter, revenue for the three months to 31 December reached €98.2m, marginally down from €98.4m in the corresponding period in 2020. This was largely down to the difficult operating conditions in Germany and LeoVegas’ Dutch withdrawal. Taking out these markets, revenue would have been up 26%.

Breaking this down, classic casino games accounted for 74% of total revenue, with live casino at 14% and sportsbook 12%.

The operator said the Nordics were responsible for 50% of revenue, 29% coming from rest of Europe at 29% and 21% from the rest of world. Hagman noted that it had performed particularly strongly in Sweden, where it was the largest commercial operator in the market during Q4.

NDCs in the fourth quarter fell 4.9% to 172,756, the lowest quarterly total since Q4 of 2019, but RDCs were up 1.0% year-on-year.

Marketing spend fell by 7.9% to €33.8m, but personnel costs edged up 7.85 to €13.9m and other operating expenses 17.8% to €10.6m. Cost of sales were down 8.8% to €15.6m, while gaming duties were up 210% to €17.3m.

Adjusted EBTIDA climbed 45.0% to €11.6m, while after including €3.1m in depreciation and amortisation costs, as well as €2.4m for the amortisation of acquired intangible assets and impairment of assets, operating profit was €6.1m, compared to a €833,000 loss in 2020.

LeoVegas also noted €884,000 in financial costs and €91,000 in expenses related to activity with associated companies, resulting in a pre-tax profit of €5.1m, up from a €1.4m loss in the previous year. After paying €926,000 in income tax, LeoVegas ended the fourth quarter with €4.2m in net profit, compared to a €1.9m loss in 2020

“I am proud of how we concluded 2021 and how we offset the revenue loss related to the ongoing regulatory changes in Germany and the Netherlands,” LeoVegas president and chief executive Gustaf Hagman said.

“We demonstrate a high ability to adapt and continue to drive innovation even when faced with turbulent times,” he continued. “An increasing number of European countries are becoming regulated and some 74% of our revenue is currently regulated and/or taxed.

“The external market environment will remain erratic and turbulent in places, but we are well-positioned to manage this. Armed with all of our ongoing growth initiatives, I feel optimistic ahead of 2022.”

Each agreement provides state-wide mobile access for sports betting, with the launch of Fubo Sportsbook subject to obtaining regulatory approvals and, in Missouri, the enactment of legalisation for regulated wagering.

Louisiana launched its legal sports betting market last month, while Mississippi’s market has been open since August 2018.

A series of bills are currently in progress in Missouri with the aim of legalising sports betting, including Senate Bill 764, which was filed last month. It would allow sports betting at casino boats in Missouri and state-wide via online wagering.

Read the full story on iGB North America.

Miller has spent eight years as senior vice president of gaming operations with CDI. His retirement will take effect on 1 March.

He spent 15 years with the company overall, beginning in the role of president of Fair Grounds Race Course & Slots in New Orleans.

In 2010 Miller was appointed president of Calder Casino in Miami Gardens Florida. Following this he moved to CDI’s headquarters in Kentucky.

“Austin has been central to the growth and evolution of CDI over the years,” said Bill Mudd, president and chief operating officer of CDI. “His bold and creative vision for the company’s gaming properties will have an enduring impact. I am grateful for his leadership during a transformative time and wish him nothing but the best in his retirement.”

To fill Miller’s role, CDI has appointed VP of gaming operations Maureen Adams.

Adams has held the VP of gaming role since 2019. In this position she supervised the operations of eight CDI properties. She has worked in various positions with CDI for eight years.

Prior to this Adams worked for Caesars Entertainment, holding senior positions with the finance and marketing departments.

“Maureen brings over 25 years of gaming experience in finance, marketing, operations and leadership in 10 different states and 2 countries to this important role,” continued Mudd.

“Not only does she bring a proven track record of success, Maureen has a keen aptitude for inspiring and developing her team to achieve both their personal and professional goals.”

In addition, CDI announced the promotion of Ryan Jordan to senior vice president of real estate development.

In this position Jordan will be involved with strategic planning at CDI properties and lead construction projects.

Jordan joined CDI in 2009, where he was first named as vice president of operations for Churchill Downs Entertainment Group and later moved to the role of general manager of Churchill Downs Racetrack.

Before this Jordan worked for the PGA of America as championship director of the PGA Championship.

“Ryan is the ideal candidate to lead the development of new properties across our portfolio,” said Mudd.

“Throughout his 12-year career with the Company he has successfully and consistently executed complex large-scale projects with a focus on operations, hospitality and entertainment.”