Month: February 2022

Playtech’s board noted that it had already received and is evaluating third-party proposals for its B2B and B2C subsidiaries. 

In total, 174 shareholders representing 56.13% of Playtech – or 140.5 million shares – voted for the bid at a court meeting, while 54.68% did so at a general meeting. However, both of these totals were well below the 75% threshold required for the merger to be approved.
Shareholders representing 43.87% of the business voted against the deal.

Before the meeting began today (2 February), the board acknowledged that based on proxy votes received to that point, approval looked unlikely.

At least 75% of voting shares must approve the Scheme if the 680 pence per share bid, which equates to a purchase price of around £2.70bn, is to proceed. While Playtech’s third largest shareholder Abrdn (formerly Aberdeen Asset Management) has announced its support for the acquisition, some Asian shareholders reportedly felt the offer undervalued the business.

The board said that should the deal collapse, the board’s focus would turn to maximising shareholder value by selling off Playtech’s B2B and B2C businesses, a prospect first raised last week. These would also be subject to shareholder and regulatory approval. 

No definitive agreements have yet been reached and negotiations are ongoing, with no guarantee these proposals will lead to firm offers. 

The B2B and B2C businesses were both performing strongly, Playtech added. Its B2B operations were growing in Europe and the Americas, driven by its Caliplay joint venture with Mexico’s Caliente.

Plans to spin off Caliplay are already in motion, through a combination and listing with a special purpose acquisition corporation (SPAC). This would be conducted in partnership with the SPAC entering a long-term commercial agreement with a leading media brand, to accelerate its entry into US states. 

Snaitech, Playtech’s Italy and German-facing B2C business, is also said to be in good shape, with online operations remaining strong, and its retail business recovering from Covid-19 disruption. As a result Playtech expects adjusted earnings for 2021 to beat projections.

The sale of its financial trading division Finalto, meanwhile, is expected to be completed in the second quarter of 2022, once it receives regulatory clearance. The acquirer, Gopher Investments, was briefly in contention to acquire Playtech outright. However, both Gopher and another rival bidder, Keith O’Loughlin and Eddie Jordan’s JKO Play, withdrew from the race. 

“Playtech remains in a strong position and continues to perform very well across its core B2B and B2C businesses,” chief executive Mor Weizer said. 

“This progress reflects the quality of our technology and products and the hard work and commitment of our talented team. We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements (including Caliente) that are already allowing Playtech to access newly opened gaming markets.”

Playtech chair Brian Mattingley added that the acquisition process had shone a spotlight on “the fundamental premium value of [its] businesses”.

“Playtech is the leading technology company in the gambling industry, with an unrivalled quality and breadth of products,” he continued. “Snai is the number one sports brand across retail and online betting in the Italian market.

“In the event that the Aristocrat offer does not proceed, the board is determined to pursue options to maximise value for all shareholders and accelerate validation of that value.”

Aristocrat has responded to express its disappointment that its offer is set to lapse, saying it had done its utmost to engage with shareholders. 

In particular chief executive Trevor Croker blamed a group of shareholders that built a blocking state and refused to engage with either Aristocrat or Playtech for the deal’s spending collapse. 

However, the supplier said it remained committed to accelerating its growth in the real-money online gaming sector, and would assess alternative acquisition targets. 

Shares in Playtech were trading up 0.95% at 582.50 pence per share in London this morning.

Playtech’s board backed an offer for Aristocrat to acquire the business for £2.7bn (€3.2bn/$3.7bn) in October, subject to shareholder approval.

However Playtech said today (2 February) that proxy votes received to date suggest the acquisition will fall short of the 75% of votes required for Aristocrat’s bid to proceed, though it is anticipated that more votes will be cast in favour of the deal than against.

“We are disappointed that our recommended offer to acquire Playtech plc is expected to lapse. Notwithstanding extensive due diligence on Aristocrat’s part, developments since the announcement of our offer have been highly unusual and largely beyond Aristocrat’s control,” Aristocrat chief executive and managing director Trevor Croker said.

“In particular, the emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer, which had been recommended by the Board of Playtech.”

Instead, Croker said Aristocrat would continue to pursue a “strategic” approach to mergers and acquisitions.

“The long term interests of our shareholders are the absolute focus of M&A at Aristocrat. We will always take a highly disciplined, strategic approach to our investment choices, consistent with our customer-centric philosophy,” Croker explained. 

“Aristocrat has entered into 2022 with excellent operational momentum, flexibility and resilience with continued strong product-led performance across gaming and pixel united. We look forward to providing further detail to shareholders at our upcoming AGM later this month.”

In particular, the business will continue to pursue opportunities to enter the real-money online gambling space. 

“From a strategic perspective, Aristocrat’s commitment to participate in the online real-money gaming (RMG) segment will not change,” Croker added. “In the future, online RMG capability will be one way we deliver new and connected experiences that leverage our world-leading content, and unlock additional value across Aristocrat’s portfolio while deepening customer engagement.

“Our focus now shifts to accelerating our plans for alternative online RMG scaling options, and continuing to execute our growth strategy, in a way that is consistent with our rigorous investment criteria, high regulatory standards and integrity. We look forward to sharing more details with shareholders as we move forward.”

The Playtech shareholders’ expected decision not to approve the bid comes despite the fact that no rival offer is on the table. JKO Play – a business jointly led by Formula One magnate Eddie Jordan and industry veteran Keith O’Loughlin – had initially entered the race to acquire the business, but pulled out last month, just before Playtech announced that there were still questions about the way its shareholders would vote.

Last week, reports emerged that Playtech would consider breaking up its business if the Aristocrat deal could not be approved. At the time, Playtech did not state whether it was considering a break-up sale if the acquisition were to fail. However, today the board confirmed this, saying that its focus would turn to maximising shareholder value by selling off Playtech’s B2B and B2C businesses, with negotiations ongoing.

The Caesars Sportsbook at Spokane Tribe Casino will allow customers at the casino to place bets on wide range of sports and competitions, as well as access a new dining option.

The first expansion phase of the new facility is expected to be complete in time for the National Football League’s Super Bowl LVI on February 13.

“As we look toward the completion of our first phase of expansion, this partnership is an important component for us as a growing casino,” Spokane Tribe of Indians chairwoman Carol Evans said.

Spokane Tribe Casino general manager Javier De La Rosa added: “We’re excited to partner with Caesars Sportsbook to offer in-person sports betting in our new state-of-the-art sportsbook utilizing Caesars’ betting platforms that offer hundreds of ways to wager on sports.

“This partnership also allows us to bring a new type of guest to the property while offering expanded gaming options for all players.”

The link-up was made possible after Washington agreed new tribal compacts with a number of tribes, including Spokane. These were approved by the US Department of the Interior in September last year.

Last month, DraftKings secured market access in Washington after it entered a retail sports betting partnership with the Tulalip Tribes of Washington.

Flutter Entertainment-owned FanDuel Group is partnered with the Suquamish Clearwater Casino Resort, while BetMGM agreed a deal with the Puyallup Tribe of Indians to operate retail sports betting at the Emerald Queen Casino.

In addition, International Game Technology (IGT) will provide its PlaySports platform to power sports betting at the Angel of the Winds Casino Resort, which is operated by the Stillaguamish Tribe of Indians.

While retail and mobile-on-site sports betting are permitted in Washington, online betting outside of tribal casinos is not.

A research project from Explori, which canvassed the opinions of 1,211 ICE registrants, has revealed that just under three out of four (74%) plan to attend the show, which returns to ExCeL London on 12-14 April. 

Of this number, 77% were either final decision makers or had a say in purchasing decisions for their business. The vast majority (81%) viewed the show as important to attend, with 67% saying they did so to acquire new suppliers or partners. 

A further 56% said they travelled to the show to gain an overview of the gaming market, with 53% saying they would be at the ExCeL to be inspired by new ideas. 

This, Clarion Gaming managing director Stuart Hunter said, demonstrated the appetite for the show’s return after an absence of more than two years.

However, he stressed that the move to April was “very much a one-off and a last resort” due to the lack of any alternative dates for an exhibition the size and scale of ICE.

Furthermore, the new dates in April had substantially eased concerns related to the Covid-19 pandemic, which prompted the shift from early February. 

“We also have the recent announcement by the UK Government confirming that from 11 February, vaccinated international travellers will not have to test for Covid on arrival in England,” Hunter said. “This is a major development that will encourage more visitors to make the journey to London and be part of the ICE experience. 

“In addition, the UK Government has moved to its Plan A Covid response which involves a significant easing of Covid restrictions, including the end of mandatory face masks and a relaxation of the rules applying to Covid Certification Passports.

“I support the view of lead bodies such as UKHospitality and UKinbound that the lifting of restrictions represents a pragmatic step towards normality. It also shows that the UK and ICE London are very much open for business.”

Some high-profile exhibitors have announced their withdrawal from this year’s event, something Hunter said had changed the dynamic of ICE 2022. However, he reiterated that ICE remains the largest gaming event in the calendar, with around 450 businesses still exhibiting this year, alongside a further 150 at iGB Affiliate London. 

In less than two weeks, a further 15 new exhibitors had signed up, occupying more than 1,000 square metres of space on the show floor. 

“The ICE brand has always worked to represent the entire gaming ecosystem. We continue to be committed to the whole of the industry, including the many smaller businesses throughout the supply chain which rely on ICE London for a significant proportion of their annual turnover,” Hunter added. 

“It’s been too long since the business has been able to meet face-to-face and the team is looking forward to bringing everyone together to celebrate the return of the industry in a safe and a secure environment. I would like to add that we will continue to engage with our customers in the run-up to and after the completion of ICE London 2022.”

Register here to book your place at ICE London, which runs from 12 to 14 April at ExCeL London. For the ICE VOX conference, running from 11 to 13 April, more information is available here. 

Registration for iGB Affiliate London, which has already grown 28% from the 2020 edition of the show, can be found here.

Revenue – net win from players who placed losing bets, minus winnings and promotional costs – for the three months to 31 December 2021 amounted to AUS$13.8m (£7.3m/€8.7m/US$9.9m), up 51.6% year-on-year, but down 6.8% from $14.8m in Q1 of this year.

Turnover, the amount wagered before any winnings are paid out or losses incurred, reached $138.6m, a new monthly record that was 54.8% higher than Q2 of 2021 and also 10.1% up from Q1 of 2022.

BlueBet said it was helped in the quarter by the launch of a new website and mobile apps, which it said offers players faster operation and a number of new features for betting.

The number of active customers also reached an all-time high of 45,087 for the quarter, up 76.5% from 25,540 in the same quarter in 2021, while first-time depositors also increased 86.9% year-on-year.

Shortly after the end of Q2, BlueBet announced that its wholly owned subsidiary BlueBet Colorado had signed a skin agreement with The Wild Card Saloon & Casino in Blackhawk, Colorado, to launch online sports betting in the state.

This marked the operator’s second such agreement in the US, with BlueBet expecting to roll out online sports wagering in Iowa next month, while plans are also in place to go live in a number of other regulated states.

BlueBet has been pursuing a licence in Virginia but withdrew its application in September after being deemed ineligible for a permit.

In terms of how Q2 impacted year-to-date, revenue for the first half of the operator’s 2022 financial year reached $28.6m, an increase of 68.3% on the corresponding period in 2021.

Turnover for the period was also up 60.06% from $164.7m to $264.5m. 

Two individuals were identified as promoting illegal activity and removed from associated Facebook groups after being issued with cease and desist letters. The Commission said they hosted illegal lotteries, which offered a variety of cash prizes, children’s toys and clothing.

Helen Venn, executive director of the Gambling Commission said: “There were hundreds of people taking part in these lotteries but it was important to identify those who were organising and moderating them illegally.

“Working alongside our colleagues at Facebook and the police, we are pleased that key individuals have been identified and this type of activity, which only increases the risk of gambling harm, has been disrupted.

“Illegal lotteries, including those taking place through social media channels, will continue to be a focus for our enforcement work this year as we link up closely with platforms like Facebook to pinpoint not only the activity, but those behind it and those who are breaching gambling rules and social media standards.”

David Gill, Government Agency Intelligence Network (GAIN) coordinator at the South West Regional Organised Crime Unit said: “We know the actual winners in illegal lotteries, which often promise high value prizes and cash draws, are too often the people running them – and they are persistent in their attempts to keep operating.

“We will continue to support the Gambling Commission in targeting and disrupting people profiting from such illegal schemes.

“Work like this shows the value and absolute necessity of the full range of enforcement agencies working together as part of the GAIN network.”

Kevin Benson, GAIN Coordinator based at the North East Regional Special Operations Unit said: “It’s important to acknowledge the harm illegal gambling can cause, especially when unregulated lotteries like these benefit from targeting some of the most vulnerable people in our communities, especially those caught up in a cycle of addiction.

“We will continue to work alongside our partners and help assist in the disruption of illegal lotteries and other gambling platforms.”

Ms Venn, who leads the Commission’s licensing, compliance and enforcement teams, added that many of these lotteries fail to give any funds to good causes, and consumers taking part do not benefit from legal protection.

Figures published by the Great Britain Gambling Commission show the amount raised in the three months to 31 December 2021 was 14.3% more than in the corresponding period of the previous year.

The Q3 total was also 21.5% more than the £418.4m generated in Q2 and 20.9% higher than £420.7m in the first quarter.

The Commission said the increase was partly due to a 6.6% rise in National Lottery sales in the third quarter, with total sales up £129.4m from Q2. This was largely driven by a 38.8% quarter-on-quarter increase in EuroMillions sales.

The total amount of unclaimed prizes that were added as returns to good causes was also approximately £38.0m more than in Q2, primarily due to scratchcard game closures.

Since its launch in November 1994, the National Lottery has raised more than £45.0bn for good causes such as sports, arts and heritage, health, education and the environment.

Funds for good causes are held in the National Lottery Distribution Fund (NLDF), while the Gambling Commission ensures payments from the Lottery operator to good causes are accurate and on time.

In November, Camelot UK Lotteries, operator of the National Lottery since its launch, saw ticket sales reach an all-time high of £3.96bn in the first half of the 2021-22 financial year.

The Gambling Commission in October said it had received the four final applications for the Fourth National Lottery licence.

The Commission did not disclose the identity of the applicants, but it has previously been revealed that Italian lottery operator Sisal, pan-European lottery and gaming giant Sazka, and India’s largest lottery operator Sugal & Damani have all applied.

Incumbent licensee Camelot completed the Selection Questionnaire in October 2020, but has not yet publicly confirmed whether it was bidding for the tender.

Current licensee Camelot’s licence is due to expire in February 2024.

The Levelling Up whitepaper aims to direct resources to areas of the UK that require support in key areas such as employment and education. It is set to be unveiled today (2 February).

Members of the BGC are also planning to create 5,000 apprenticeships between now and 2025 for young people who wish to work in the gaming sector. Most of these will be based outside London.

The pledge comes after a report from Ernst and Young stated that BGC members are currently supporting 119,000 jobs in the UK– employing 61,000 people directly and employing 58,000 more in the supply chain.

Michael Dugher, CEO of the BGC, spoke of the support the regulated industry could provide, particularly in the wake of the novel coronavirus (Covid-19) pandemic.

“The Government’s levelling up agenda is a fantastic opportunity to create more apprenticeships and tackle unemployment across the UK,” said Dugher.

“Across the UK, from Stoke to Leeds, BGC members are investing in high tech jobs within their companies more than ever before. They stand ready to support the economic recovery after Covid and provide the skills and opportunities that towns and cities need to thrive.”

Lord Walney, engagement director for the Levelling Up Goals at The Purpose Coalition, which created the Levelling Up Goals, added that the Coalition supports the BGC’s pledge, praising the offering of apprenticeships.

“Apprenticeships will play a huge part in the levelling up process, allowing companies to provide high quality training for thousands of young people,” said Walney.

Yesterday (1 February) the BGC chose self-exclusion platform Gamstop to lead the trial of its “single customer view”, which will see problem gamblers monitored to prevent them from experiencing further gambling harm.

The December figure was just 0.2% behind the record $427.3m set in October 2021, though it was 6.0% higher than the $402.6m posted in November.

Adjusted gross revenue, however, declined 66.2% month-on-month to $10.1m, the lowest full-month total since the state’s market launched in January 2021.

Revenue in January of 2021 was $3.6m, though the market only went live on January 21, meaning consumers could only legally wager on sports for 10 days of that month, and initially only with FanDuel.

Read the full story on iGB North America.

Aguero will assume his role through to the 2022 Fifa World Cup in Qatar and beyond, becoming the latest sportsman to sign partnership deals with Stake.com, alongside UFC stars Francis Ngannou and Israel Adesanya.

Aguero retired as Manchester City’s all time leading goalscorer, in addition to experiencing international success in the form of Argentina’s 2021 Copa America triumph.

Aguero said: “I’m delighted to be working with Stake.com and joining their exciting team. I’ve watched on with interest as they have become more involved in football and Stake’s ambitions very closely match my own as I move into a new phase of my post-playing career.

“I can’t wait to get started on all the exciting initiatives we have planned for fans as we build up to the World Cup later this year.”

Stake.com signed a multi-year sponsorship deal with Premier League football club Watford FC, beginning at the start of the 2021/22 season.

CEO Mladen Vuckovic added: “As the January transfer window draws to a close, we’re delighted to announce the signing of Sergio Aguero as our new team star. Sergio’s legacy speaks for itself and he is the perfect fit for us as we continue to expand Stake.com’s global presence.

“We look forward to welcoming Sergio’s fans around the world into the Stake.com community as we celebrate this exciting World Cup year with one of the true icons of the game.”