Month: April 2022

Acroud said that its earnings before interest, tax, depreciation and amortisation (EBITDA) will be approximately €2.2m (£1.8m/$2.4m) – up from €800,000 in the final three months of 2021 – when the business’s recently agreed sale of its finance affiliation assets is taken into account.

The business added that the divestment to an undisclosed business or businesses – totalling $575,000, including $425,000 that was paid in March and a further $150,000 that is due by the end of this month – aligns with its “strategy to focus on and be the preferred digital affiliation partner within the igaming market”.

Acroud, which also operates in the software-as-a-service (SaaS) sector, added that its encouraging figures at the start of the new year had been due to “successfully executed cost synergies and strategic plans to build the right foundation for accelerated growth, which were implemented in 2021”.

Specifically in igaming, revenue is expected to have grown by 10% quarter-on-quarter to €3.0m in the first three months of 2022.

Total revenue is expected to amount to €6.9m in the first quarter, up 6% on the previous quarter and a 24% increase in comparison with the corresponding period last year.

Following the Q1 performance, which Acroud said “exceeds market expectations”, overall EBIDTA is expected to reach between €8m and €10m this year, around double the €4.7m figure reported for 2021.

More than three-quarters of igaming revenue is expected to have been generated from Europe at the start of 2022, with 16% derived from North America. Casino remained its biggest vertical in igaming, representing 49% of sales in the first quarter, followed by poker on 28% and betting on 21%.

“This trading update reaffirms our strong start to the financial year 2022 and proves that Acroud is positioned to deliver significant growth in both revenue and profit in 2022 and beyond,” said Robert Andersson, Acroud’s president and chief executive.

“With a leaner and more agile team, the knowledge, assets, and cost base we have now in place, I’m excited to see we have reached the desirable foundation to accelerate revenue growth and optimal margins.”

Acroud recently initiated a refinancing process ahead of its bond loan maturing in September, with further details expected to be announced soon.

In February, the business also announced a 113.8% increase in turnover in 2021, although costs associated with three acquisitions led to a drop in net profit.

Financial terms of the deal were not disclosed and Sportradar said that the transaction would not have a material impact on its annual outlook for 2022, which it published last month.

Founded in 2016 by John O’Malia and Andreas Hartmann, Vaix has fed more than 60 billion transactions into its AI to offer a personalised experience to more than 50 million users for operators and platforms around the world.

Vaix’s AI technology allows gambling operators to gain a personalised view of customers, which enables them to provide a more targeted, player-friendly experience.

Sportradar has worked with Vaix for over two years and incorporated its technology into its Managed Trading Services (MTS) trading, risk, live odds and liability management offering. Sportradar’s MTS solution is a sophisticated trading, risk, live odds and liability management offering.

Sportradar said the acquisition would enable betting operators already engaged with its platform the opportunity to gain access to more personalised insights and suggestions relating to user preferences through Vaix’s advanced AI learning capabilities.

“Vaix products with their artificial intelligence and algorithms are now being natively integrated as part of the Sportradar Sportsbook platform, enhancing our data analytics, promotions system and player personalisation,” Sportradar’s managing director of Managed Betting Services, Paolo Personeni, said.

“All Managed Betting Services customers will enjoy a faster and simplified integration. The acquisition of Vaix is the culmination of a very important and productive partnership we have had with the company over two years.”

Vaix co-founder Andreas Hartmann added: “Fully joining forces with Sportradar is recognition of the power of Vaix’s technology, and a dream come true for our vision to bring AI to the entire iGaming industry. 

“Vaix’s capabilities can provide all of Sportradar’s operators with the power to truly personalise their offering, marketing and CRM, as they seek to attract and engage players.”

Meanwhile, Sportradar has integrated its internet-based Self-Service Betting Terminal (iSSBT) software into 245 retail outlets across Norway as part of an expanded agreement with state gaming operator Norsk Tipping.  

Sportradar’s next-generation solution incorporates its betting and gaming product catalogue including odds, statistics, betting entertainment widgets, audio-visual live streaming, virtual betting, marketing advertisement and Sportradar Managed Trading Services, fully integrated in the Sportradar Sportsbook Platform.       

Norsk Tipping’s head of gaming operations Hans Erland Ringsvold said: “While the industry is undergoing significant digital transformation, retail continues to be an important channel for our company, as it has been throughout our history.   

“Through our partnership with Sportradar, we have established a mobile-first and online distribution strategy whilst maintaining a presence in retail. This approach enables us to cater for a digital optimised sportsbook offering, also made available for our biggest and most important retailers.   

“This launch in retail marks the start of a next-generation retail solution for sports and we are very keen to learn how this is received by customers.” 

RMG will work with the Norfolk racecourse on the commercialisation and development of its licensed betting shop, streaming, pay-TV and international rights from May 1 this year through to December 31, 2028.

Fakenham Racecourse will also become a shareholder in RMG, which is 100% owned by racecourses and pays all of its profits to its racecourse shareholders. The venue hosts 12 fixtures throughout the year.

“We are excited to be joining RMG and to be in partnership with many other like-minded small independent racecourses, alongside the larger independents and Jockey Club Racecourses,” Fakenham chief executive and clerk of the course, David Hunter, said.

“We have an excellent relationship with The Racing Partnership, At The Races and Sky Sports Racing which goes back many years and we are very grateful to the many successful years we have partnered with them. 

“However, my board of directors feel now is the right time for Fakenham to make a change and we believe joining the RMG family will ensure Fakenham will continue to provide good quality grass roots National Hunt racing with good prize money.”

RMG chief executive Martin Stevenson added: “RMG and its 34 racecourse shareholders are delighted to welcome Fakenham Racecourse to the RMG family. The racing from Fakenham will further strengthen our output, and we very much look forward to working closely with David Hunter and his team on all aspects of their media and data workstreams.”

Meanwhile, RMG and Sports Information Services (SIS) have agreed a new fixed-odds retail and online streaming deal with Hollywoodbets, allowing the South African betting operator to broadcast and take bets on British and Irish racing.

Hollywoodbets will simulcast racing from 35 British racecourses and all 26 Irish racecourses into 92 betting shops in South Africa, and online via the Hollywoodbets.net website.

RMG and SIS will also work with Hollywoodbets to leverage its marketing and promotional assets to increase interest in British and Irish racing.

RMG’s chief commercial officer Nick Mills said: “The agreement represents an exciting opportunity to increase the shop window for our racecourses, as well as generate additional international revenue, which goes back into the sport.” 

State lawmakers have given the go-ahead to fast-track the issuance of the three Las Vegas-style commercial gaming licences, which will start a bidding process from gaming companies that wish to launch such casinos in the region. The plan, which sets the fees at a minimum $500m (£384m/€459m), were included in the state budget signed off at the end of last week and comes a decade after authorisation was given for seven commercial casinos, of which four were located upstate.

The budget deal includes protections to the racing support payments that flow to all thoroughbred and standardbred racetracks in the state, as well as their respective purse accounts and breeding and development funds for both breeds. It also ensures payments continue for New York Racing Association’s capital expenditures and operations.

Joseph Addabbo Jr, who serves as the chair of the Senate Racing, Gaming and Wagering Committee, said the casino projects will generate additional revenue for the state and create thousands of construction and post-construction jobs.

Addabbo said: “While this is a nice step forward for New York State, this does not mean our work is done. In fact, our work is just beginning.

“Following the budget, the legislature must monitor the timely, fair and transparent bidding process for the licenses, and ensure that the siting process is being credibly implemented.

“I look forward to working with my colleagues, the Gaming Commission and the Hochul Administration on the downstate licence issue.”

The downstate region, which spans New York City, Long Island and Hudson Valley, has an estimated population of 13 million.

Technically, the future casino facilities can be located in New York City, Long Island, and three suburban counties to the north of the city. It has been suggested that two of the casinos could be situated in Queens and Yonkers, with a third linked to Manhattan, New York City’s economic and cultural centre. Public hearings on the proposals must be held and a local panel must approve a casino siting plan before it is sent to a state body for consideration.

Local zoning laws would apply and there would be a minimum tax rate of 25% on slot machines and 10% on table games. It would set at $750 per slot machine the annual payments intended to support gaming addiction education and treatment programs.

Lawmakers have already issued the guidelines for licence bidders through Senate Bill 8009. This determines that candidates must provide maximum capital investment exclusive of land acquisition and infrastructure improvements while also maximising revenue, and providing as many as possible stable jobs at the property.

The value of the undisclosed, “non-controlling interest equity stake”, is €7.0m (£5.8m/$7.6m), with Enteractive saying that the investment will boost the company’s “pace and capability to scale globally”.

The cash injection will help Enteractive, which provides custom-made technology to igaming operators worldwide, to grow in key US, Latin American and Asian markets, the company said.

Just over a year ago, Yolo Investments, which was founded by Tim Heath, launched a sub-fund focused on the gaming and financial technology sectors.

Before launching the sub-fund, Yolo Investments had already acquired stakes in casino content studios OneTouch and Green Jade Games, as well as the Bombay Club live casino business.

“Tim and his team have done a great job in challenging conventional thinking and pushing the industry forward with new ideas and a good portion of enthusiasm,” said Mikael Hansson, founder and chief executive of Enteractive.

“We believe that we can further accelerate our already strong growth with their added knowledge and strong network.”

Heath, Yolo Investments’ chief executive, added: “We love businesses which find creative ways to add value for their partners, and that’s why Enteractive is such a natural fit for the Yolo Investments network.

“Retention and reactivation are challenges facing many of the companies we’ve already invested in, and we see significant opportunities to build synergies and help Enteractive develop into a global industry leader across many more markets.”

In a speech delivered at the ICE World Regulatory Briefing, Rhodes said gambling authorities must do more to share practices, understandings and outcomes with the target of improving regulation and reducing problem gambling.

Rhodes said he hopes collaboration could lead to joint investigations and joint action against operators who fail to meet the standards expected in regulated markets.

Rhodes said: “Many of the operators we deal with in Great Britain will be the same as those dealt with in other jurisdictions. Things that are not being done well here are likely to be issues in other countries too, when you consider these are multinationals.

“The gambling industry has been consolidating for some time. In Great Britain, we are seeing an increasing number of mergers and acquisitions and ever more complex ownership structures. We are not only regulating global tech companies, but often multinationals with huge resources and complex interests and drivers.

“Across markets, across jurisdictions, across cultures, collaboration will need to be a key tool in our work to make gambling fairer and safer for consumers worldwide.”

Rhodes, who joined the Gambling Commission in June 2021, summarised some of the Gambling Commission’s successes in tackling the challenges created by technological innovations such as mobile gambling. These included the banning of gambling via credit cards, strengthened protections for High Value Customers and making GAMSTOP mandatory for online operators in Great Britain.

However, Rhodes added that more must be done to consider the growth of novel products that could be considered part of the gambling ecosystem, such as cryptocurrency and NFTs.

While he did not say that the Gambling Commission should be regulating such products, Rhodes said that it is becoming increasingly complex to adjudge what it is and is not gambling.

“Language has changed in these products, with talk of ‘investment’ and trading, yet with none of the safeguards or standards those terms should bring with them,” he said.

“We are likely to see more and more integration of these types of products into sport and other areas of lifestyle, as well as the legitimate gambling industry. These are lucrative growth areas, and we ignore them at our peril.

“We are in the process of changing how we regulate and deal with novel products. Many of these products are not gambling as defined by law, and I am not suggesting we should be regulating them, but I am suggesting we will see this pattern continue and we are likely to see more and more tests of what is and is not gambling, in a way we have not faced before.”

Led by Adam Bell SC, the review had been due to run until 30 June, but will now continue until 31 August after summonses were issued for further witnesses to appear.

The New South Wales Independent Liquor & Gaming Authority approved the extension after Bell requested more time to undertake further lines of inquiry in order to fully discharge his duties.

“The Authority is fully supportive of Mr Bell examining additional witnesses and giving further consideration to a number of key issues,” Authority chairperson Philip Crawford said.

Acknowledging the extension, Star said it would continue to fully cooperate with the review.

The initial review launched in June of last year after concerns were raised about The Star Sydney’s interactions with junkets and money laundering prevention measures. This was then expanded in January this year to assess other entities within the group.

Public hearings into Star’s activities, which are ongoing, have so far heard a series of claims, including that Star allowed junket operator Suncity to operate its own cage at the Star Sydney casino, where it exchanged chips for cash, despite this contravening the New South Wales Casino Control Act.

The case also asserts that Star’s representations about policies being in place to mitigate risks such as money laundering, corruption, bribery, insider trading and restrictions on the use of gambling products were misleading or deceptive.

Last month, Star’s long-serving chief executive and managing director Matt Bekier stepped down from both roles in respose to issues raised during the ongoing review of the Star Sydney casino.

Upon tendering his resignation, Bekier said as managing director and CEO, he is accountable for the “effectiveness and adequacy of the company’s processes, policies, people and culture”.

Last week, Star announced the appointment of John O’Neill as interim executive chairman with immediate effect. O’Neill will lead the business in his new role following the exit of Bekier.

Also last week, Star was served with a securities class action lawsuit by Slater & Gordon on behalf of investors seeking compensation for alleged “misleading or deceptive representations” the operator made about its compliance with regulatory obligations.

Lowthers will take on his new role by 1 May and succeed Philip McHugh, who is stepping down as CEO and as a member of Paysafe’s board of directors. 

Lowthers joins the group having spent the last 14-and-a-half years working for fintech business FIS, where he most recently served as president for the past year. His other senior roles at FIS included co-chief operations officer, president of banking solutions and senior vice president.

Prior to joining FIS in August 2007, Lowthers worked for eFunds, Penley Presideo, Towne Services, Quest Group International and Ernst & Young.

“Paysafe has a highly differentiated and innovative payments offering and is at the forefront of enabling improved payments experiences for both businesses and consumers around the world,” Lowthers said.

“I am excited by the significant growth opportunities ahead for Paysafe and by the financial outcomes and value we can achieve for our customers, employees, and shareholders as we scale the global business.”

Daniel Henson, who was last month appointed non-executive chairman of Paysafe, added: “Bruce is an exceptional executive whose proven track record of driving sustained results and enterprise value is second to none. In particular, he has successfully scaled and transformed many global organisations.

“Paysafe is at an exciting inflection point on its journey and we are confident Bruce is the right leader to take it to the next level of growth.”

Henson also paid tribute to the outgoing McHugh, who led the group through the pandemic and oversaw the business going public.

“On behalf of the board, I want to thank Philip for his leadership over the past three years,” Henson said. “He has taken Paysafe public, expanded its footprint and established value-added relationships while upgrading the company’s product and tech capabilities. 

“The strong foundation Philip and team have put in place sets Paysafe up for sustainable, long-term growth. We are very grateful for his dedication to the Company and thank him for his service.”

McHugh added: “It has been a real privilege to lead the transformation at Paysafe over the past few years and work with so many talented colleagues. Bruce and I know each other well, he’s a great leader and I’m excited to see where he can take Paysafe.”

Meanwhile, Paysafe announced that it expanded its partnership with Greenwood Gaming and Entertainment-owned betPARX into Pennsylvania and New Jersey.

Paysafe had previously been providing payments for the Play Gun Lake brand in Michigan, which is powered by betPARX, and will now deliver a similar service for the betPARX mobile apps in the other two states.

Players can make deposits to fund their betPARX accounts with their credit or debit card, as well as fund wagers using Paysafe’s alternative payment solutions such as the Skrill USA digital wallet, Paysafe’s Paysafecash and paysafecard eCash solutions.

“We are proud to extend betPARX’s partnership with an industry-leading payment technology provider,” betPARX senior vice president of interactive, Matthew Cullen, said.

“We constantly look for features that will round-out our service to users and make betPARX the simplest and fastest app, and Paysafe delivers easy and user-friendly deposit and cash-out options.”

Paysafe’s chief executive of North America igaming, Zak Cutler added: “We’re delighted to extend our partnership with betPARX into two major states in the US igaming space – New Jersey, the cornerstone of the whole market since 2013, and Pennsylvania. 

“We look forward to facilitating payments for betPARX and its players in both states to strengthen the two brands’ customer conversions and retention.”

At the event, entrepreneurs will present their startups to the ICE London audience.

Bespot, Better Change, Mobi Fund, My Lotto Hub, Neesan Labs Parlay Poker, OneUpOneDown, Pokerload, Pow Gaming, Racing Star, Rubik Talent, Sparket, SMAT Virtual, Touch-LESS Gaming and We The Bookie will all take part in the event.

Jesse Learmonth of The Betting Startup Podcast and Clarion Gaming non-executive chair Michael Caselli will co-host the event.

“We have been providing startups with a gateway to industry investors and strategic partners since 2009, with international startup events and competitions taking place at ICE London, ICE North America, ICE Africa and iGB Live,” Ewa Bakun, Clarion Gaming’s director of industry insight and engagement, said. “After a two-year Covid-induced absence I am delighted that Pitch ICE has returned and providing a platform for businesses that may be small in size but have a mountain of ideas, creativity and energy.”

Bakun added that many Pitch ICE alumni have become extremely successful businesses, gaining investment from or being acquired by well-known companies within the sector.

“Over the last decade many of our startups have secured important investments and acquisition partners following their pitch presentations and participation at the most influential global gatherings of gaming operators,” she said.

In addition, Bakun noted that this year’s edition of Pitch ICE will include a particularly diverse selection of founders, showcasing the changing face of the gambling sector.

“I would like to highlight the diversity of the shortlisted companies who will be debuting their start-ups at ICE London 2022,” she said. “I believe this is a reflection of the changing face of the modern gambling industry where sustainability, diversity, and social responsibility are at the top of the business agenda. 

“As an organising team we are all really looking forward to seeing each company showcase their potential and experience the best fresh thinking from the world’s leading startups.”

ICE London 2022 will take place from 12-14 April at the ExCeL in London after being postponed from its traditional early February dates, while the co-located iGB Affiliate London event will run from 13-14 April.

To register for ICE London 2022, click here.

The operator’s website – among the most-visited betting sites in the world – has been replaced with a single message, with access to all other pages blocked. 

“Just like so many market-leading global organisations, Bet9ja recently became a victim of a sophisticated criminal cyber-attack, which is restricting your access to our platform,” it said.

The operator did not elaborate on potential sources of the attack, but added that player funds were not in danger.

“We take this matter extremely seriously,” it said. “Our priority is protecting our customers and you have our assurances that your accounts and all your funds are safe.

“We appreciate your patience and understanding at this difficult time.

“We will be back stronger as soon as is technically possible, rewarding you with a truly sensational bonanza of promotions.”