Caesars launches in-cinema sportsbook with Emagine

The new lounge will be hosting odds for a mix of college and professional games, including football, baseball, hockey, basketball, golf, tennis, horse racing, soccer, boxing and motorsports.

It will be the first sports lounge of this style, with cinematic screens, sound systems, heated leather recliners, wifi and individual tables for customers to use when betting on Michigan sporting events.

Under the terms of the agreement, the Emagine Sports Lounge will be rebranded Caesars Sportsbook Lounge Powered by Emagine.

“We are excited about this partnership with Emagine Entertainment and applaud their ingenuity in creating a sports lounge in a movie theatre,” said Eric Hession, co-president of Caesars Digital.

“This concept should provide an exciting environment for people to enjoy a televised sporting event and for us to connect with new customers while also rewarding our existing loyal customer base.”

“Our commitment to building innovative entertainment experiences for our guests led us to the creation of the sports lounge at Emagine Royal Oak,” said Anthony LaVerde, CEO of Emagine Entertainment. 

“Partnering with Caesars is a major milestone in our ongoing commitment to being the most innovative theater chain in the country.”

Rouge Partnership Strategies, based in Southeast Michigan, facilitated the agreement between Emagine and Caesars Sportsbook and will see entry to the lounge open this month.

Rouge co-founder Zach Wagner added: “This partnership is transformative for two industries: movie theatres and mobile sports betting. The vision of Emagine Entertainment to create such a unique and authentic sportsbook style experience for their loyal patrons is 100% on-brand with their industry leadership over the past 25 years.

“It is no surprise that another industry leader, Caesars Sportsbook, recognised and joined in this opportunity to connect with sports betting fans in their preferred viewing environment.”

Entry is free and available during normal operating hours on a first-come-first-served basis for individuals 21 years and older. 

GamCare boosts problem gambling services outside Britain

The charity, which runs 161 treatment locations across England, Scotland and Wales, said its trained associate model enables organisations not registered in Great Britain to receive training in line with its ‘Model of Care’ – a clinical framework for treatment provision – and provide them with many of the tools they need to begin offering support themselves. 

Substance misuse charity Motiv8, an organisation that provides a range of support services across the Isle of Man, is the first recipient of the model. The charity, formerly the Isle of Man Alcohol Advisory Service, will now be able to deliver clinical support for gambling as part of their offering, helping minimise gambling harms across the island.

Thea Ozenturk, chief executive at Motiv8, said: “We are delighted to move to this new relationship with GamCare as it keeps Motiv8’s team at the forefront of delivering best practice interventions in the treatment of gambling disorder for the benefit of locally affected individuals and their families.”

GamCare said the model is open to applications from organisations that already provide some form of social support, such as counselling, mental health or substance misuse teams, in non-GB jurisdictions.

“The package is aimed to help these teams develop their services to provide support for gambling for anyone who needs it,” the charity said.

Churchill Downs revenue hits record $364.1m in Q1

Group revenue for the first quarter of 2022 increased 12.3% year-on-year to $364.1m (£290.4m/€345.9m), a new record for the business.

Gaming was the top performer over Q1 with revenue of $179.2m, up 16.4% year-on-year, aided by capacity restrictions at its Oxford Casino Hotel in Maine, Flordia’s Calder Casino and Presque Isle in Pennsylvania.

The gaming division is set to expand further through the acquisition of Peninsula Pacific Entertainment, which adds properties in New York, Virginia and Iowa to CDI’s portfolio.

The operator’s advance deposit wagering business Twinspires followed with revenue of $101.4m, down marginally year-on-year, after a decline in horse racing revenue was partially offset by growth from its sport and casino business. That operation is being wound down, however.

CDI’s live and historical horse racing business reported a 34.8% jump in revenue. It credited the $87.2m total to increased revenue from Kentucky’s Oak Grove and Derby City Gaming sites. 

Adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) came to $128.5m compared to $110.6m in Q1 2021. 

With many properties returning to full capacity as Covid-19 restrictions were lifted, operating costs for the quarter rose 14.1% to $316.7m. This left an operating profit of $47.4m, a marginal year-on-year increase. 

This figure was reduced by $21.3m in interest expenses, though a $32.5m share of equity from unconsolidated affiliates meant that pre-tax profit was increased by $11.2m, to $58.6m. After $16.5m income taxes were factored in, CDI’s net profit for the quarter came to $42.1m, up 16.6% year-on-year. 

Evolution concludes internal review into illegal activity

The business began its internal review in order to address the claims in November of last year.

These claims, which it said were from an anonymous third party aiming to discredit the business, wiped billions from the supplier’s market capitalisation when they were released.

When it launched the review, Evolution said it “works closely with regulators and operators to support and provide tools that blocks play from certain countries, including those on US sanction lists”.

Following Evolution’s Q1 results, chief executive Martin Carlesund said this review had now been completed. While changes to some processes would be introduced, Carlesund added that it had “no material impact” on earnings.

“Of course we review everything internally and prepare to hand over any material requested and of course we found a lot of things that we could do better, as we do in all areas every day,” he said. “So we are happy with the results and move on from there. We have a good relationship with regulators all over the world.”

In its Q1 results, Evolution’s live casino business continued to grow rapidly, while its random number generator (RNG) games business – created through acquisitions of NetEnt and Big Time gaming – grew more slowly.

When asked whether Evolution was thinking about further mergers, Carelsund said it was not a major priority, but it could not be ruled out.

“We of course evaluate the look of M&A and opportunities there, but primary growth is organic growth,” Carelsund said. “We see no change to that.

“We are aiming and moving and we want to be number one in online casino in the world. We’re constantly looking at what could actually move us or enable us on that path.”

Slipping through the safety net

Public Health England report published in September 2021 stated that half of England’s adult population – some 24.5 million people – take part in some form of gambling every year. It went on to state that men are more likely to gamble, particularly online; 15% of men participate in online gambling, compared to 4% of women. 

And men experience gambling harm at a higher rate. Public Health England’s analysis suggests men in the country are 4.2 times more likely to be harmful gamblers than women. 

But women are still at risk. The ongoing study Building Knowledge of Women’s Lived Experience of Gambling and Gambling Harms across Great Britain, commissioned by gambling treatment funding body GambleAware, estimates that one million women are at risk of gambling harm in the UK.

Sasha Stark PhD, senior researcher for Canada’s Responsible Gambling Council and RG Plus

“Women have previously been overlooked in relation to gambling and studying gambling harm, with the existing evidence base tending to focus predominantly on men,” the charity says. “However, the number of women participating in gambling has grown over last decade with more women experiencing harm.”

Earlier this year GambleAware launched a campaign to mark the release of phase one of the report.

This looked to evaluate a number of factors that influence women’s gambling habits, including contextual factors in how they experience gambling harm and what role gambling plays in a woman’s life.

This does not suggest that women experience gambling harm at a higher rate than men. But the stakes are high.

“The study revealed that women’s mental health is more adversely affected by ‘problem gambling’ than men’s, and that a high proportion of women experiencing harmful gambling had other addictions, like to alcohol and drugs,” says GambleAware.

Women may also be less likely to seek help for gambling harms, it noted. “[We] discovered twice as many women cited stigma as a barrier in accessing gambling support compared to men.”

Barriers to care

Gambling research and studies tend to reference groups that experience high rates of gambling harm, or are at higher risk. Sasha Stark PhD, senior researcher for Canada’s influential Responsible Gambling Council and its strategic consultation arm RG Plus, believes that there are two main reasons behind this.

“Colleagues of mine did a recent review for GambleAware looking at remote interventions for support in gambling harm, and we found that that research didn’t really look at what types of remote supports are most helpful for each groups of people,” says Stark. “I think this tends to happen because of a couple of different things.

“One is, who’s doing the research? Do those people have a lack of awareness of how certain groups may differ from others in terms of their needs and experience? Also methodological issues, in terms of are there enough people to speak to in a certain group that you’re interested in? 

“Some types of methods have a hard time getting enough people, as well of access to populations or groups that are of interest.”

Treating gambling harm as being a shared experience – whereby each affected group feels it the same way – can negatively influence the gambling harm treatment options made available, especially for women.

Richard Bayliss, senior regulatory affairs and compliance manager at igaming solutions giant Playtech, believes there is a lack of personalisation in approaches to help women who experience gambling harm.

“Treatment is often designed for male gamblers, particularly the residential treatments,” Bayliss explains. “And it does tend to be something where male gamblers can go to those facilities because they have the time, they don’t have as many family responsibilities.”

Gender roles undoubtedly play a part in how women are offered support for problem gambling. GambleAware points out that there are “notable differences” in how men and women experience harm, which consolidate themselves in gender roles.

“For example, women generally cite worries relating to childcare or losing custody of children if they admit they have a gambling problem,” says GambleAware. 

“Our commissioned research also found that economic control and abuse were reported as common for women whose partners had gambling problems, such as them having control over financial decisions made in the relationship.”

Getting personal

Operators offer a wide range of responsible gambling tools for customers who wish to take control of their gambling habits, or quit altogether. And with artificial intelligence algorithm-tracking becoming the norm, it has never been easier to monitor customer behaviours.

This can be crucial in picking up on gambling harms experienced by underrepresented groups.

Playtech brings all its responsible gambling tools together under Playtech Protect, a platform that licensees can use to educate customers, monitor player behaviours and flag problem gambling. Bayliss says the system is effective, because it brings together a range of tools in a way that tailors the preventative steps to each individual customer. 

“So if you get something that indicates the player is at risk because they make multiple deposits, you can create a Player Journey [a bespoke customer tracking technology] that puts a pop-up in play saying ‘do you realise you’ve deposited more often than you did last month?’ or ‘more often than the average player? You might want to consider limiting the number of deposits that you make’,” he says.

Intimate approaches like Player Journey can appeal to those who feel overlooked by gambling harm prevention efforts. “Not every customer is the same, so you need to find a way to deal with them in different ways,” Bayliss continues.

Richard Bayliss, senior regulatory affairs and compliance manager, Playtech

This personalisation can also be applied to research. Stark believes it’s important to look at groups individually to best identify how they experience gambling harms.

“Men and women will have different experiences and needs, or different ethno-cultural groups will have different resources, stresses and so on,” she says. “What it boils down to is a combination of [harms] manifesting in different ways, and different responses to harm.”

“These factors work together to lead to both different results for different people and groups. So they have different experiences of, and different responses to, stressors. That tends to lead to a manifestation of harm in different ways.”

This makes personalisation all the more important. “If your prevention messaging is about absence and not gambling,” Stark says, “in a population where gambling has a really high cultural value, that’s not going to resonate.” 

Falling through the cracks

The question remains of how to avoid overlooking customers who are at risk of falling through the cracks. 

“One effective route is women-only services, designed by women that account for the reasons women gamble,” says Bayliss. “This helps reinforce the message that those experiencing gambling harms are not alone and encourages others to reach out for support.”

This in turn could help to eliminate stigma. “Improving the provision of public information and messaging around the signs of gambling harms for women and the support that is available, emphasising confidentiality and anonymity, would have a real impact,” he continues.

Engagement is key. Stark believes that it’s the way to ensure groups are fairly represented and also receive the most optimal treatment.

“I would say a key way to [engage with underrepresented groups] would be to use participatory research,” says Stark. “Involving or working with unrepresented groups to design, conduct or analyse and interpret research projects.”

“This can really help in ensuring that what the problem is, for that group, is identified appropriately and through their eyes.”

This can come in a number of forms, she continues, the most important being direct contact with those groups.

“The ways I think [engagement] could be done are through consultation co-development, so at a minimum speaking with those target audiences, those underrepresented audiences and where possible highly recommending co-developing these programmes,” says Stark. “Identifying what they see as opportunities for moving things forward that they think will work.”

Ultimately, men account for a larger percentage of gambling consumers than women, so it is likely that they will remain highly featured in industry marketing efforts, harm prevention and research. But paying close attention to underrepresented groups can help to encourage harm prevention across the board, and stop people slipping through the safety net. 

Of course, there needs to be work to balance a system geared towards men rather than women. But that could be a starting point in which prevention and treatment becomes as targeted as gambling advertising. Essentially, it’s making sure the safer gambling messaging is as effective as industry ads.

Evolution revenue up to €326.8m as live casino growth continues in Q1

Revenue from live-dealer games continued to grow rapidly, up 44.3% to €264.5m. The operator’s chief executive, Martin Olof Carlesund, said this was notable as the Q1 figure had itself been more than double the total recorded in Q1 of 2020.

“We experienced exceptional growth in the first half of 2021 so the comparable figures are demanding,” he said. “2022 has started very well and the entertainment and excitement that

live games offer continues to drive new as well as existing customers to our games.”

Revenue from random number generator (RNG) games grew more slowly, though, by 19.3% to €62.3m. Almost all of this growth was due to the addition of Megaways creator Big Time Gaming, as if this division was included for Q1 of 2021, then RNG revenue was only up by 1.8%. This, Carlesund said, was “in line with expectations”.

“End-user satisfaction is always key and taking us there is not done overnight,” Carlesund said of the RNG division. “The road to success will not be straight-lined but the focus and ambition is clear and I’m convinced that we will reach our growth ambitions over time.”

Breaking revenue down geographically, the Nordics and the UK brought in €21.8m each, up 32.9% and 1.8% respectively. The rest of Europe, meanwhile was Evolution’s main market, bringing in €108.8m, up 4.5%.

Asia was the region with the fastest growth with revenue up 94.4% to €103.4m. North America revenue was up 70.4% to €36.8m and the rest of world segment revenue grew 79.6% to €34.3m.

Evolution noted that its share of revenue from regulated markets remained stable at 40%.

Expenses also grew, but more slowly at 27.0% to €119.7m. Personnel expenses were the largest cost at €63.5m, up 30.1%. Depreciation, amortisation and impairment costs were up 22.1% to €22.6m and other operating expenses grew by 24.9% to €33.6m.

This left an operating profit of €207.1m, up 46.2%.

The business made a €4.3m profit on financial items, leading to a pre-tax profit of €211.4m, up 50.2%.

After paying €13.7m in taxes, Evolution’s profit was €197.7m, up 49.8%.

TransUnion warns fraudsters may be increasingly targeting gambling

In Q1 2022, the global digital fraud rate decreased 22.6% as compared to Q1 2021.

however, while fraud in most sectors declined, the gambling industry had the second-highest level of growth behind insurance, a 50.1% increase.

Shai Cohen, senior vice president of global fraud solutions at TransUnion, said that this suggested criminals may be focusing more on new industries.

“Sophisticated fraudsters pressure test which industries have ramped up fraud prevention measures and as a result, turn to new industries if efforts are being thwarted. That’s exactly what we have observed recently as fraudsters look for new opportunities or points of vulnerability,” he said.

The survey of 10,391 adults in select countries and regions globally from Feb. 7-23, 2022 determined that 36% of consumers had been targeted by digital fraud in the last three months compared to 38% the previous quarter. 

Of those consumers that had been targeted, phishing scams were most common (31%) followed by money/gift card scams (28%) and third-party seller scams on legitimate online retail sites (23%).

“As fraud rates stabilise during a period when fraudsters are searching for new vulnerabilities, many organisations have shifted their focus to identifying more of the good customers and transactions to increase revenue and customer lifetime value.

“By reducing false positives, false declines, and manual review rates, organisations can dramatically improve the customer experience through trusted connections while still keeping the fraudsters at bay,” said Sean Donnelly, senior vice president of go-to-market global fraud solutions at TransUnion.

Colorado sports betting handle jumps 68% year-on-year in March

The total amount spent during the month was comfortably ahead of the $301.0m that was bet in March 2021 and also 14.8% higher than the $440.5m wagered by players in February of this year.

Players spent $500.2m betting on sports online, while the remaining $5.4m was wagered at retail sportsbooks.

Gross gaming revenue increased 38.2% year-on-year to $28.2m, while this amount was also 43.9% up from $19.6m in February 2022.

Of this total, $28.1m was attributed to online sports betting, while just $179,235 came from wagering at retail sportsbook facilities.

Basketball was by far the most popular sport to wager on in Colorado in March, with a total of $218.4m bet by players. College basketball followed with $96.9m in wagers, due to the annual NCAA Tournament, while parlay and combination bets came to $99.7m.

Players won $477.4m from sports betting during the month, while the state of Colorado was able to generate $1.3m in tax revenue.

BlueBet secures market access in Louisiana

The arrangement, which will run for a period of 10 years, will enable BlueBet to offer an online sportsbook in the state, pending final regulatory approval and licencing from the Louisiana Gaming Control Board.

Louisiana is one of the latest US states to launch legal online sports betting having opened its regulated market on 28 January this year, following the initial rollout of legal retail betting in October last year.

BlueBet, which has also secured a licence to launch in Iowa and agreed a deal to roll out an online sportsbook with the Wild Card Casino in Colorado, expects to go live in Louisiana in the second quarter of 2023.

“Louisiana is a sports mad state and we’re excited to partner with Louisiana Downs to bring bettors in Louisiana a unique mobile-first sports betting experience,” BlueBet chief executive Bill Richmond said.

“This is our third market access agreement and continues our strong momentum in the US, and we’re confident that our capital light strategy is the right one to drive our long-term success in the US, an emerging global sports betting juggernaut.

“We look forward to continuing to demonstrate our technical capability, digital focus and experience in building and scaling sports betting platforms ahead of introducing our sportsbook-as-a-solution offering to the US market which will be a game changer for BlueBet.”

The business had previously pursued a licence in Virginia, but later withdrew its application after being deemed ineligible for a permit.

Revenue falls for transformed Sands without US operations in Q1

Net revenue was down by 21.1% year-on-year on a like-for-like basis.

Much of the revenue stemmed from casino operations, which came to $627m. This was a decrease of 27.5% from Q1 2021. Mall revenue accounted for $149m of the total revenue, down by 4.4%, while rooms revenue remained fairly steady at $95m, down by just $1m year-on-year.

Food and beverage revenue fell by $3m to $53m, and convention, retail and other revenue fell by 17.3% to $19m.

Casino operations in Macau came to $551m, a fall of 29%. The Venetian Macau generated the most revenue in Q1, at $227m. However, this was still down significantly from the revenue of $340m recorded a year earlier.

The Londoner Macau’s revenue was $121m, while revenue from The Plaza Macau and Four Seasons Macau came to $102m. The remaining revenue came from operations in The Parisian Macau, Sands Macau and ferry operations.

Elsewhere, the Marina Bay Sands property in Singapore made up $399m of the revenue.

In February Sands completed the sale of its Las Vegas property and operations, which included the Venetian resort, to Apollo Global Management. The total purchase price was $6.25bn, with $5.05bn in cash proceeds and $1.30bn in seller financing.

Operating expenses also decreased year-on-year, coming to $1.24bn, down by 3.6%.

Resort operations accounted for $838m of the costs, down by 12.4%. Depreciation and amortisation rose by 3.5% to $264m. Development costs totaled at $60m, while corporate costs came to $59m. The remaining $24m was made up of pre-opening, loss on impairment asset disposal and amortisation of leasehold land interest costs.

This led to an operating loss of $302m, $206m more than the loss in Q1 2021.

Following interest income at $4m, interest expenses of $156m and other expenses at $22m, the pre-tax loss from continuing operations was $476m.

After considering income tax expense of $2m, the net loss for the quarter was $478m, $198m more than in Q1 of 2021.

Robert Goldstein, chairman and chief executive officer of Las Vegas Sands, explained that continuing Covid-19 restrictions have limited tourism and affected the quarter.

“We remain confident in the recovery of travel and tourism spending across our markets,” said Goldstein.

“Demand for our offerings from customers who have been able to visit remains robust, but pandemic-related travel restrictions in both Macau and Singapore continue to limit visitation and hinder our current financial performance.”

Looking ahead, Goldstein said that Las Vegas Sands was still looking to develop its digital segment while focusing on resorts development.

“We remain confident that we return to positive cash flow in both Macau and Singapore in the future as restrictions are eased and travel and tourism recover,” he continued. “In addition, we continue to pursue opportunities to develop large-scale resorts in both the United States and Asia. The sale of Las Vegas was completed this quarter, which creates additional liquidity and optionality.”

“Lastly, we can build out our digital presence and to explore multiple opportunities.”

In July 2021 Sands announced a programme that would see it invest in igaming suppliers, in a move towards the online gaming sector that the business had previously distanced itself from.

At the time of the announcement, Goldstein stated that it was an “outstanding opportunity” for the company to invest in earlystage technology.

Patrick Dumont, president and chief operating officer of Las Vegas Sands, added that the business was still just beginning its digital investment, but was confident the business would have opportunities to talk about in that area soon.

“We’re really in a growth and investment stage,” he said. “So it’s very early on, and we have something to talk about, we’ll definitely start discussing it. But at this point, it’s a very early stage. We’re building a team and looking forward to the future.”

Dumont also explained that a recent investment in US Integrity, a sports betting integrity monitoring platform, will aid in boosting the company’s foray into the digital sector.

“From our standpoint, we’re looking at a variety different businesses that are in start off or early stage in order to make sure that we stay in front of technological innovation in our industry,” said Dumont. “And so this is part of a broader strategy.”

“It is a relatively small investment relative to Las Vegas and we think over time, this investment and others will help contribute to our overall digital efforts.”