Month: March 2022

Haushalter said the US could become the leading igaming market in the world, but only if regulators ensure taxation levels do not become prohibitive.

This, he said, would help free up suppliers to innovate and serve players with a wider range of igaming products including online casino and internet-based sports betting.

Haushalter added states have the ability to set more “sensible” tax rates. He highlighted how Nevada’s tax rate on land-based casinos is set at 6.75% of gross gaming revenue (GGR), helping establish the state as one of leading markets in the US, whereas in New York, sports betting is taxed at a rate of 51% of GGR. 

“’Feverish’ or ‘frenzy’ are the first words that come to mind when it comes to describing the market as things stand,” Haushalter said. “The excitement around the business is incredibly high and it reminds me of the early days of the .com boom. 

“Everyone knows that online gaming will be massive in America, since this is the world’s largest gaming market already. As a result of this, we are seeing many companies investing heavily today to secure their place in the future of online gaming.

“What is needed now is the same thing that made the great land-based markets flourish – low gaming taxes and a great offering. Nevada and New Jersey have the lowest gaming tax rates in America and inevitably have seen the most investment. They also offer everything a tourist could ask for. 

“In online gaming that means offering the full range of sports betting, all types of slots, skill-based games, table games, and of course live casino with its innovative game shows.”

While the gap in median salaries was 5.3%, the mean hourly pay gap was much more significant, at 16.2%, which was up from 15.0% in 2020.

This was mostly due to lower representation of women in roles that made up the upper quartile of salaries at Entain. While the majority of Entain staff in the lower quartile and two middle quartiles of pay are women, only 39.1% from the upper quartile were women in 2021. That figure was down slightly from 2020.

Meanwhile, the median bonus pay gap skyrocketed in 2021 from 13.0% to 59.6%, which it said was due to the fact that many bonuses were deferred in 2020, and so paid twice in 2021.

The mean bonus gender pay gap was even higher, at 63.4%, compared to 19.2% in 2020.

In total, 69.6% of men and 62.8% of women at Entain received a bonus in 2021, up from 40.9% of men and 40.0% of women in 2020.

2021 was the year in which Jette Nygaard-Andersen became chief executive of Entain, making her first female CEO of a UK-listed betting operator.

“At Entain our vision is to create a ‘best place to work’ where our colleagues feel valued, respected, and engaged, and to ensure that this is reflected in the way they are rewarded,” she said. “We are pleased to report that our median hourly pay gap has reduced to 5.3% from 7.1% – substantially lower than the national average of 15.4%. This reflects the gender parity in our retail business where 54% of or colleagues are female.”

Nygaard-Andersen pointed to Entain initiatives such as Entrain – a diversity and technology programme that launched in November 2021 – as part of the steps the business was taking to continue to support women.

“While we are encouraged by this, we take nothing for granted and have put in place programmes and policies such as EnTrain and Women@Entain which will help us continue on this journey,” she said. “This approach to diversity, equity and inclusion is vital to our purpose of revolutionising betting and gaming interactive entertainment.”

House Bill 167 was first introduced on 19 January, but initially did not concern sports betting. It is sponsored by Representative Zack Stephenson and Representative John Huot.

The Commerce Finance and Policy committee first amended the bill earlier this month, effectively turning it into a sports wagering bill.

The bill has now been amended by the Human Services Finance and Policy committee and adopted in its new form.

Read the full story on iGB North America.

House Bill 2556 was first introduced on January 19 and was first referred to the Special Committee on Public Policy. It was sponsored by Representative Dan Houx.

It was one of several sports wagering bills that progressed through the Missouri state legislature in March.

Read the full story on iGB North America.

Jansen (pictured) commented on the regulator’s annual report for 2021, which was released last week and included data about player numbers, advertising and unlicensed play. In this report, the KSA noted that 634,000 online gaming accounts had been created between the vertical launching in October 2021 and the start of March.

Jansen noted that when multi-account play is considered, it suggested that the number of players may be lower than expected.

“Please note: this does not mean that there are so many players (on legal sites) in the Netherlands,” Jansen said. “An unknown number of players have an account with several providers. So there are (probably considerably) fewer than 634,000. 

“This is an important insight, because earlier estimates have been made of approximately 1 million Dutch people who – occasionally or more often – participate in games of chance on the internet. There is even a recent survey that came in at 1.8 million. Those estimates therefore seem exaggerated, particularly because a number of large providers without a licence no longer offer their services in the Netherlands from 1 October.”

Jansen also noted that the legalisation of online gaming in the Netherlands – and the accompanying crackdown on unlicensed operators – has been successful in its main goal, ensuring that those who wish to gamble do so within a regulated space. Earlier data published by the government in December had shown a similar effect.

“The addendum includes a graph which clearly shows that the legal offer has largely suppressed the illegal offer since 1 October 2021,” he said. “That was exactly the intention of the Act: people who want to gamble online should be able to do so in a safe, regulated environment.”

However, he also noted that overall gambling levels increased after regulation.

“At the same time, the graph shows that on balance since October 1, the total number of hours that consumers spend on gambling sites has been greater than before October 1,” Jansen said. 

“An explanation could be that the legalization of online games of chance drew consumers’ attention to its existence. 

“After all, in the run-up to legalization there was a lot of media attention for online games of chance. And of course there has been a lot of advertising since 1 October.”

Jansen noted that Minister for Legal Protection Franc Weerwind had pledged to take action to limit advertising further, while operators had already agreed on voluntary restrictions such as an end to print and radio promotions.

Finally, Jansen noted that sign-ups for self-exclusion register Cruks had already passed 10,000. The KSA chair said that, rather than a negative development, this was a positive as it showed that people were already familiar with the tool and getting help.

“A third and final observation on my part is that Cruks has amply passed 10,000 registrations,” he said. “These are people who want to exclude themselves for at least 6 months from participating in games of chance. It always takes a while before such a register is known and has found its way to the target group. 

“The number of more than 10,000 registrations tells me that we are on the right track. Cruks is an important remedy for gambling addiction, so it’s good that people know where to find the registry.”

The funding round received support from a number of investors, including Lloyd Danzig’s Sharp Alpha Fund and David Sargeant’s Igaming Ideas.

Benjie Cherniak of Avenue H Capital and Scott Secord of Cardinal Sports Capital also contributed to the funding round.

Hailed ‘TikTok for sports betting’, Kero offers its products as a free-to-play experience inside the apps of professional sports teams.

Kero’s core product provides fans with relevant in-game betting and prediction opportunities.

The proceeds from the seed funding will help the continued growth of the company.

“In 2021, we doubled our client base across NBA and NFL teams and locked in multi-year agreements with existing clients,” said Tomash Devenishek, founder and CEO of Kero. “This was a clear signal of strong product market fit and a shared vision on the significance and evolution of in-game engagement and micro betting.” “Also sharing in our vision are some of the gaming industry’s most formidable individuals and institutional investors. Their participation in our financing has drastically accelerated our ability to create transformative turnkey betting products.”

In the third quarter of 2022 Kero will launch a real money wagering version of its technology for sports betting operators.

“Demand has never been stronger for turnkey, mobile-optimised interactive gaming solutions that can serve users contextually-relevant engagement opportunities,” said Danzig.

Devenishek added, “We believe that future growth in sports betting will come from casual fans who will reject the sportsbook products we use today. Similar to mainstream forms of mobile entertainment, the betting experiences of the future will need to lean heavily on algorithmic curation and this is what we are focusing on at Kero Gaming”.

Revenue for the 12 months to 31 December 2021 amounted to $42.3m (£32.0m/€38.4m), up from $28.0m in the previous year.

The group said this rise was primarily due to an increase in the number of new depositing customers (NDCs), with this having increased 12.5% to 117,000, as well as the improved monetisation of NDCs that it out down to a combination of technology improvements and changes in product and market mix.

Cost per acquisition (CPA) commission drew in the most revenue, generating $18.6m for the year, more than double $9.0m in the previous year. Hybrid commission climbed by 6.1% to $15.6m, while revenue share commission was up 9.1% to $3.6m and other revenue 409.6% to $4.5m.

In terms of vertical, casino accounted for $35.6m of all revenue for the full year, with sports betting at $6.2m and other sources $503,000.

The UK and Ireland remained by far the group’s core market, with over half of all revenue – $21.4m – coming from the region. Other European revenue reached $10.8m, while North America revenue was $7.5m and rest of world revenue $2.6m.

Gambling.com Group also noted a series of major achievements throughout 2021 including its successful initial public offering (IPO) on the Nasdaq Global Market in July.

The group in December also agreed a deal to acquire US-facing fantasy sports news and advice site RotoWire.com, completing the purchase just a few weeks later.

Shortly after the year-end, the group announced the acquisition of NDC Media, publisher of BonusFinder.com in a deal worth up to €60.0m, and also went live with its services in the newly regulated New York online sports betting market.

Turning to spending and total operating expenses were up 83.9% year-on-year to $30.9m, driven by increased headcount across sales and marketing, technology, and general and administrative functions, as the group said it continued to invest in growth initiatives, while it also noted higher administrative expenses associated with operating as a public company.

Operating profit was up 2.7% at $11.4m, while after including $2.6m in finance income and the impact of $1.8m in finance expenses, this left a pre-tax profit of $12.2m, up 13.0% year-on-year.

In addition, when excluding some costs, Adjusted earaings before interest, tax, depreciation and amortisation (EBITDA) was $18.4 million, an increase of 26.0%.

The group received $289,000 in income tax benefits, but after also including the negative impact of $4.8m in foreign exchange differences, this meant net profit for the year was $7.6m, down from $17.6m in 2020.

For the final quarter of the year, revenue for the three months through to 31 December 2021 was level at $10.3m.

However, operating costs were 64.4% higher at $9.7m, while after accounting for $1.1m in finance income and $457,00 finance expenses, pre-tax profit was $1.3m, down 62.9% year-on-year. Adjusted EBITDA was also 62.3% lower at $2.3m.

After also including the impact of $444,000 in income tax payments and $1.8m in negative foreign exchange differences, this left a net loss of $958,000, compared to a $1.7m profit in 2020.

“We grew our revenue in 2021 by 51% compared to the prior year, delivered an EBITDA margin of 43% and generated over $8.0m of free cash flow as many other industry players struggled to find a path to sustainable profitability,” Gambling.com Group co-founder and chief executive Charles Gillespie said. “As we look towards 2022, we are encouraged by the strongest start to a year we have seen in our 15-year history.”

“Helped by launches in New York and Louisiana, January was our best-single month performance ever – even before consolidating financial results from our recent acquisitions. Just in January, we have seen the total addressable market in North America expand by leaps and bounds and there is a clear path to additional state launches this year, along with the impending launch of Ontario next month.”

Looking at its potential performance for 2022, the group said revenue is likely to amount to between $71.0m and $76.0m, with adjusted EBITDA in a range of $22.0m to $27.0m.

“As B2C operators in the US seek a path to sustainable profitability and evaluate their marketing spend going forward, we believe that the affiliate model is ideally positioned to provide operators with more effective, higher ROI investments where they can clearly attribute the source, profitability and lifetime value of a referred player,” continued Gillespie.

“We view this shift as greatly benefitting the value of our performance marketing revenue model, and we are confident that these tailwinds support what we expect to be another year of record performance for the group.”

Gambling.com Group chief financial officer Elias Mark added: “We entered 2022 on strong financial footing and are off to the best start to a year in the company history led by strong growth in North America. 

“We grew total revenue profitably by 51% in 2021 and we look forward to accelerate that rate of profitable growth in 2022.”

Jones (pictured) is currently the interim chief executive of Netball New South Wales. He has also served as chief executive of Cricket New South Wales from 2013 to 2019 and interim chief executive of news site Racing.com. 

Before this, he was general manager of strategy at Cricket Australia from 2010 to 2012, overseeing the launch of the Big Bash League in this role.

“The Board is delighted to appoint Andrew Jones to the position of chief executive and we look forward to his commencement later this year,” Racing Victoria chairman Brian Kruger said.

Jones has also led strategy consultancy The Killer Group. In this role, he worked with Racing Victoria, helping to set up the Victorian Thoroughbred Racing Integrated Media Business (VTRIMB).

“Andrew will join Racing Victoria with a wealth of business, strategy and sports administration experience coupled with a unique understanding of the VTRIMB thanks to his advisory work in our media business and his time as interim chief executive of Racing.com last year,” Kruger added.

Jones replaces Giles Thompson, who announced his resignation in January but will continue in the role until the end of June to facilitate a smooth transition.

“The Victorian thoroughbred racing industry has experienced outstanding growth and investment during Giles’ tenure and we are confident the sport will continue to thrive and prosper under the leadership of Andrew in the years to come,” Kruger said.

Jones said he would work with stakeholders to increase the popularity of racing in Victoria.

“I’m honoured to be invited to lead Racing Victoria in the next phase of its growth,” Jones said. “Giles, his team and the industry as a whole have done a marvellous job through Covid and I’d like to start by recognising that.

Our job now is to build on that legacy. Racing Victoria will work diligently with our clubs, participants, government, commercial and media partners to grow Victorian racing’s fan base, revenue and social licence, and reinvest in sustainable growth.

I am very excited about the people, the industry and opportunity and are looking forward to getting started in July.”

Under the arrangement, Gran Casino will use Gaming1’s sports betting and casino platform to deliver online gambling services to players in the Netherlands via Gaming1’s Circus brand.

The deal will also include Gaming1 providing its own slots titles and table games.

Gran Casino operates a network of hotel-based casino and gaming venues in partnership with hospitality business Van der Valk. The deal allows Gran Casino to enter the online gambling market for the first time.

The joint venture will enable Gaming1 to expand on its online gambling presence in France, Belgium, Serbia and Peru.

“With a track record of success spanning multiple regulated markets across the globe, our unique partnership model brings together expertise from both parties to deliver the ultimate omni-channel consumer experience,” Gaming1 co-founder and chief operating officer Sylvain Boniver said.

“We’re delighted to partner with Gran Casino and Van der Valk, and given our home markets of Belgium and France, it’s certainly an incredibly proud moment for us all to announce our long-expected entrance into one of Europe’s most exciting new regulated jurisdictions.”

Gran Casino director Frank Kastelijns added: “The Dutch online market holds a wealth of opportunity, and we’re excited to partner with Gaming1, who brings an established reputation for transforming its partners operations into a true online experience. 

“We’re sure that together we’ll be able to introduce players to one of the best online gaming catalogues available.” 

Meanwhile, Gaming1 will add the Circus.nl site to its sports betting and casino affiliate program, with effect from 28 March.

The program already serves Circus in Belgium, Serbia and Peru, as well as Estoril Sol Casino in Portugal, Zamba in Colombia and JOA in France.

“We have no doubt that Circus.nl will benefit incredibly from the wide range of services our affiliate program offers, all designed to offer invaluable assistance to brands looking to reach new audiences,” Boniver said.

“Following our debut Holland at the start of the year, we’re sure that this latest move will greatly boost our efforts there in establishing ourselves as a true regional powerhouse.”

Both announcements come after Gaming1 in January secured a new partnership with private equity group CVC Capital to support its ongoing growth plans.

Under the agreement, which remains subject to regulatory approval, CVC will use its own technology and omni-channel approach to help drive growth and expansion at Gaming1.

Taking on the role with effect from 2 May, Glasfors will become part of Betsson’s group management and report to chief executive Pontus Lindwall

Glasfors joins Betsson having most recently served as head of investor relations at payment service provider Trustly.

He brings further experience in investor relations and strategy from his time at NetEnt, while he also has spent time working in institutional equity sales, both in Sweden and internationally.

“Betsson’s recent investments and acquisitions make this an exciting time for the company with growth opportunities in several new markets around the world,” Glasfors said. 

“The group has also made many efforts in recent years to integrate sustainability in its strategy and thus create favourable conditions to secure a sustainable and responsible business model for fair and competitive gaming markets.”

Lindwall added: “Roland’s extensive experience from capital markets and work in investor relations will be a great asset for us. His experience from the gaming sector is yet another advantage. 

“With Roland on board, we can continue to further sharpen our communications and accelerate the pace of our sustainability work.”

The appointment comes after Betsson’s nomination committee last week proposed Eva de Falck, Louise Nylén and Tristan Sjöberg as new board members.

In addition, the committee proposed Johan Lundburg as chairman, as previously announced, as well as the re-election of Eva Leach, Peter Hamberg and chief executive Pontus Lindwall to the board.

Last month, Betsson revealed that it was able to match its full-year revenue record in 2021, despite the operator experiencing year-on-year declines in a “challenging” fourth quarter.