Month: April 2022

Net gaming revenue was exactly stable year-on-year, at SEK1.27bn (£102.6m/€121.9m/$128.9m). 

Almost all of this net gaming revenue, at SEK1.06bn, came from online operations, up by 3.5%.

Retail revenue, on the other hand, was down 14.7% to SEK208m.

Looking at net gaming revenue by product type instead, horse racing brought in SEK970m, down 7.4%.

“Despite the decline, the figure is historically high,” ATG chief executive Hasse Lord Skarplöth said.

Sports betting revenue was up 27.3% to SEK177m and casino revenue grew 47.6% to SEK121m.

“We continue to gain market share in Sweden and consolidate our position in sports betting,” Skarplöth said.

Explaining the rapid increase in casino revenue, Skarplöth said that a key factor was the removal of Sweden’s SEK5,000 deposit cap for online casino games.

“We want to create an entertaining and safe gaming experience for those of our customers who play casino,” he added. “An example of this is an expanded range at the same time as we have a mandatory loss and time limit and do not offer bonuses. 

“Proof that we have succeeded with our strategy is that our revenue per customer continues to remain at a low level compared to competitors.”

Geographically, SEK1.21bn of the net gaming revenue total came from Sweden and the remaining SEK55m from Denmark.

ATG then made an additional SEK58m, down 9.4%, from agent sales, plus SEK136m, up 1.8%, in other income.

This led to total revenue of SEK1.46bn.

The business then paid SEK259m in gambling taxes, up 2.4% from 2021, and SEK125m in personnel costs, a 7.7% increase.

Other expenses came to SEK641m, up 6.1%, while depreciation and write-down costs ticked slightly down to SEK74m.

This led to an operating profit of SEK381m, which was 12.4% less than in 2021.

After paying SEK13m in tax, the business was left with a net profit of SEK368m, 12.5% less than in Q1 of 2021.

Skarplöth said that the reduced profit was mostly due to changes in its product mix, as costs are higher for sports betting and gaming than for horse racing.

As part of its social responsibility initiatives, ATG also reported the amount of its customers that could be classed as “green”,  the lowest risk of harm. It said that 85% of customers, making up 79% of revenue, were part of this group.

“Together with other gaming companies and researchers, we are now working to try to find common key figures that can hopefully become industry standards,” Skarplöth said.

The study, which was commissioned by the European Gaming and Betting Association (EGBA) and conducted by Dr Margaret Carran of City University of London, obtained data from 19 European countries, including Austria, Belgium, Ireland, the Netherlands and the United Kingdom.

It was carried out between March 2021 and February 2022.

National authorities for each country were asked to complete two surveys, regarding regulation and gambling engagement monitoring.

The study found that 12 countries in Europe have routine nationwide surveys on problem gambling, while four countries have national surveys that are not released regularly.

The United Kingdom has the highest frequency of surveys, occurring quarterly, with the latest edition released yesterday.

Surveys are distributed in a number of different methods, with target populations varying. Surveys based on gambling prevalence or attitudes towards gambling are used in seven of the 12 countries, whereas two countries – Czech Republic and Spain – ask questions about gambling in their health and lifestyle surveys.

The populations surveyed also varies, with countries differing on the definition of an adult. Greece and Malta surveys those aged 18 or over, while the UK targets over 16s.

The study notes that it is difficult to appropriately compare problem gambling rates as there is no shared screening tool used by all countries in their national surveys.

However, eight of the countries use one or both definitions of problem gambling provided by the World Health Organisation or the Diagnostic and Statistical Manual of Mental Disorders.

The study concluded that the European countries use “highly diverse” methods to evaluate problem gambling in their respective populations, with the only commonality being a commitment to address problem gambling behaviour.

Reporting directly to PointsBet Canada chief executive Scott Vanderwel, Jackman will support the operator with its ongoing growth plans in the country.

Jackman will bring over 15 years of professional experience as a strategy and transformation leadership to PointsBet, having advised a number of North American businesses on growth strategy initiatives including new market and product launches.

He joins the operator from Rogers Communications (RCI), where he was senior director of corporate strategy, serving as a strategic advisor and thought partner to senior leadership while helping drive long-term strategy across RCI’s core business units. 

This included playing a role in RCI’s efforts to bring high-speed connectivity to underserved rural and indigenous households across Ontario and Atlantic Canada, while he also had a major part in RCI’s deal to acquire Shaw Communications.

Prior to this, Jackman was a senior consultant with global business strategy consultancy Accenture Strategy, where he focused on clients in the media, telecommunications and technology sectors.

“The opening of the regulated igaming market in Ontario represents one of the most exciting business opportunities within Canada in recent memory,” Jackman said. “As the industry collectively continues to build, we know this space will soon touch so many Canadians from coast to coast to coast. 

“I look forward to playing a role in ensuring that PointsBet Canada capitalizes on this incredible opportunity and delivers a truly authentic and differentiated product experience for Canadian sports fans.”

Vanderwel added: “Brett’s expertise and vision will be absolutely crucial in helping shape PointsBet Canada’s priorities as we forge further ahead into the budding sports betting landscape. 

“As our commitment so far has shown, PointsBet Canada has big ambitions, and I am thrilled to have Brett alongside us moving forward to help shape and drive our growth agenda, building upon the strong foundation we’ve assembled thus far.”

The appointment marks the latest step in PointsBet’s Canadian expansion plan, having earlier this month entered into a partnership with Canadian professional sports and real estate business Maple Leaf Sports & Entertainment.

At the scheme meeting, Crown shareholders can cast their vote for or against the acquisition.

The meeting was set to take place at 10am Melbourne time on 29 April, but will now take place at 10am Melbourne time on 20 May. Shareholders can also vote by proxy before 10am Melbourne time on 18 May.

In a statement, Crown explained that Blackstone had not yet received all gaming regulatory approvals necessary under the scheme implementation deed, which led to the decision to postpone the meeting.

In March Crown released a scheme document ahead of the meeting, which detailed why Crown shareholders may wish to vote in favour of, or against, the acquisition.

Along with the publication of the document Crown urged shareholders to support the deal, warning that they could risk “the uncertainties and risks associated with an ongoing investment in the Crown business or assets”.

This same message, asking shareholders to vote in favour of the deal, was reiterated today (26 April) with the announcement of the scheme meeting postponement.

Crown’s business dealings have been subject to a number of recent inquiries. In February 2021, Crown was deemed unsuitable to operate a casino in Barangaroo, Sydney, after an investigation uncovered evidence of money laundering in its facilities.

Later in the year Crown was also ruled as unsuitable to operate a casino in Victoria, with an investigation ruling that Crown had engaged in “illegal, dishonest, unethical and exploitative” conduct.

Similarly, in February 2022, Crown was found to be ineligible to operate its casino in Perth.

Blackstone first submitted a bid of AUS$8.02bn (£4.47bn/€5.21bn/US$6.19bn) to acquire Crown in 2021.

This was rejected, and Blackstone raised the bid to AUS$8.87bn. This was approved unanimously by the Crown board.

The research took place over March 2022 and assessed the answers of 215 respondents aged 21-64.

Most of the respondents (83%) were male.

The research revealed a number of key facts about New York’s mobile sports betting market, which opened on 10 January 2022.

Respondents reported using an average of 3.3 apps to place mobile sports bets. This is more than in New Jersey where an average of 2.8 apps are used.

A total of 23% of respondents stated they used four apps, while 19% used two apps. Using three apps was the third most popular choice, at 18%.

Six percent of respondents reported using six apps, while 4% reported using seven.

Turning to operators, 63% of sports bettors included DraftKings in their lists when asked to name as many real-money online sportsbooks as they could, slightly ahead of FanDuel at 58%.

DraftKings was also named as the favourite sportsbook of 29% of customers, followed closely by FanDuel at 28%.

BetMGM and Caesars were the third and fourth most popular, scoring 12% and 10% of the vote respectively.

Meanwhile, the study revealed that more than eight in ten (81%) of respondents residing in New York City had bet in another state prior to the market’s launch.

The research also found that using a mobile sports betting app in a different state, prior to the market’s launch in New York, meant a higher retention rate for operators.

For example, 79% of respondents marked FanDuel as their favourite app if it was the first app they had used in New York. Contrastingly, 89% of respondents marked it as their favourite app if they had used it outside of New York before the market launch.

This trend was seen across the board. For DraftKings, 72% of respondents cited the operator as their favourite app if it was the first app they had used in New York, while 80% marked it as their favourite app if they had used it previously outside the state. This divergence was also seen for BetMGM and Caesars.

The deal will see Push’s titles, including its Jammin’ Jars series, Big Bamboo and Fire Hopper, become available to NetBet players.

Initially, they will be rolled out across NetBet’s platforms in the UK and Romania, with the aim of expanding further to the Netherlands’ recently regulated market.

“We’re delighted to maintain our recent record of partnering with tier-one operators, with NetBet being testament to our continued European expansion,” said Fiona Hickey, head of sales at Push Gaming. “Its presence in a host of key markets will prove a fantastic boost to our commercial growth and we’re thoroughly looking forward to working together.”

In February, Push Gaming entered into partnerships with online gaming operators ComeOn group and Superbet.

“Push’s games are among the most popular in the industry and so this deal represents a significant move forward for us,” said Claudia Georgevici, PR manager at NetBet.

“Its content will fit in perfectly among the diverse range of quality entertainment we have to offer our players.”

The partnership, which will see Bally’s named as an official sports betting partner of the team, comes before the official launch of sports betting in Ohio.

The Buckeye State is set to offer online and mobile sports betting before January 1, 2023, after Governor Mike deWine set this as the deadline to launch an official sports betting market.

Read the full story on iGB North America.

Revenue for the 12 months to 31 December 2021 amounted to £14.7m (€17.5m/$18.7m), up from £11.4m in the previous financial year.

Revenue from the licensing segment increased 48.0% year-on-year to £11.1m, with content licensing revenue rising 35.8% to £9.1m and brand licensing revenue rocketing 122.2% to £2.0m.

Gaming Realms said growth in the content licensing business remains the key focus of the group, adding that its performance in FY21 reflected the successful implementation of its strategy of growing its games portfolio and increasing the distribution footprint to more operators in Europe and the US.

During 2021, Gaming Realms began operating with partners in five new regulated markets including Italy, Romania, The Netherlands and Michigan and Pennsylvania in the US. Shortly after the year-end, the developer also secured a licence in the Canadian province of Ontario and started trading in April 2022, while it launched in Spain in January 2022.

Outside of going live with partners in these markets, Gaming Realms went live with a further 18 partners in existing markets in Europe and New Jersey during 2021 and added a further 10 to date in 2022 in these jurisdictions.

However, despite growth in the licensing segment, social publishing revenue declined 7.7% to £3.6m for the full year.

This, the developer said, was largely as a result of currency headwinds experienced during 2021, with the majority of the transactions in the segment denominated in US dollars. At constant currency, revenue would have only fell decreased by 1.0%.

Other points of note from 2021 included Gaming Realms commencing trading its ordinary shares over-the-counter on the OTCQX Best Market in the US. Trading began in April last year after the developer upgraded from the Pink market, with its shares now running under the ticker ‘PSDMF’ on the OTCQX.

Turning to costs and while operating expenses remained level at £2.2m, administrative costs were 6.7% higher at £6.4m and marketing spending also climbed 6.7% to £379,230. Share option and related charges jumped 87.8% to £699,194, though the developer did not note any impairment charges for the year, whereas in 2020 this amounted to £499,422.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 150.0% higher at £5.0m, though Gaming Realms did not a number of other costs for the year.

Amortisation of intangible assets amounted to £3.1m, depreciation of property, plant and equipment totalled £216,834, while impairment of goodwill was £73,677. Finance expense of £689,935 was only marginally offset by £26,496 in finance income.

However, despite these costs, Gaming Realms was left with a pre-tax profit of £957,716, compared to a £1.6m loss in 2020. 

The developer received £296,436 in tax credit and after also accounting for £39,153 in exchange gain arising on the translation of foreign operators, this resulted in a net profit of £1.3m, in contrast to a £1.8m net loss in the previous financial year.

“2021 was another exceptional year for the group as we expanded our Slingo portfolio and entered new regulated igaming markets, increasing revenue by 29% and producing a maiden profit for the financial year of £1.3m,” Gaming Realms executive chairman Michael Buckley said. “Our core licensing business continued to go from strength to strength as we secured 35 new licensing and distribution partners throughout the year that supported a 48% growth in the number of unique players enjoying our content globally. 

“The Group’s commitment to increasing our global presence during the period has provided us with a strong foundation on which to deliver further growth in 2022 as we remain focused on expanding our foothold in these territories. 

“Momentum has certainly continued into the year so far, having already released four new games and launched in both Spain and Canada. With additional planned launches in new markets and with new partners in the pipeline, we look forward to providing further updates in due course.”

Join the heroic Perseus on his perilous journey through the kingdom of Medusa where she grants intrepid players the biggest surprise of all. Only those who dare to gaze into her eyes can be true winners.

You can play a demo of Mighty Medusa here!

Go-live date (expected):Already live!Game special features:– A wild is added to the reels if Medusa and Perseus trigger a duel for landing next to each other.
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– A colossal two-by-two Pegasus (high pay) symbol can appear at random on reels 1 and 2, and reels 5 and 6 during free games.Number of paylines:466Number of reels:6 columns x 4 rowsRTP% (recorded/theoretical):Available RTPs: 92.21%, 93.98%, 96.60%, 98.09%Variance/volatility:HighNumber of symbols to trigger feature/bonus?3 scatter symbolsCan feature be retriggered?NoNumber of free spins awarded?7 free gamesStacked or expanding wilds in normal play?NoStacked or expanding wilds in feature play?NoNumber of jackpot tiers?Yes (optional)Auto-play function?Yes (optional)

During the rolling 90-day period between 20 December 2021 and 19 March 2022, 3.3% of all revenue came from players gambling unsustainably, down from 3.9% in Q1 of 2021 and also lower than 4.0% in the fourth quarter of last year.

Kindred said the positive trend was impacted by seasonal changes, with the first quarter historically seeing lower shares of revenue from harmful gambling year-on-year, as well as an optimised process for manual interventions towards high-risk customers. This, Kindred said, resulted in fewer customers being re-detected following interventions.

The percentage players that had displayed harmful gambling behaviour but improved their pattern of play after intervention from Kindred also reached 83.1%, up from 76.6% in Q1 last year and 79.2% of Q4 2021.

Other related developments during Q1 included Kindred updating the improvement effect metric after interventions. Instead of only focusing on financial indicators, the metric now also includes behavioural indicators, which is more aligned with Kindred’s PS-EDS detection system.

Kindred also continued its more cautious approach to the younger demographic, specifically the age group of 18 to 25. The increased focus, Kindred said, resulted in a larger decrease in the percentage of harmful revenue from this group.

“We started 2022 with a focus on targeted deliveries,” Kindred chief executive Henrik Tjärnström said. “Our team has specifically focused on optimising our manual interventions further, resulting in a higher percentage of customers showing healthier gambling behaviour after they have been detected and contacted by our responsible gambling team.”

In Q1, Kindred also entered into a collaboration with the team behind the RecoverMe app, which uses research-proven techniques to help users regain control of their gambling habits. 

Co-founded by Tejus Patel, a junior doctor at King’s College Hospital NHS Foundation Trust, the app is now being offered by Kindred to its customers for free, initially in the UK and the US.

”Only 8% of individuals with problem gambling seek help due to the stigma associated with the addiction, inaccessibility and lack of awareness of treatment options,” Patel said. “RecoverMe’s partnership with Kindred is a vital lifeline in helping us provide care to those that need it most. 

“We believe passionately that collaboration with organisations like Kindred will help us reach those that need support and historically have been individuals who are difficult to reach and access therapy.”

Tjärnström added: “I am very proud that we have entered the collaboration with the team behind the RecoverMe app, ensuring we can offer this service for free to all our customers in the UK and the US. We are also sponsoring additional PhD programmes on addiction studies, enabling these students to study and work full-time in academia. 

“Our focus right now is to continue to increase efficiency and speed in engaging with detected customers as early intervention is critical in preventing a harmful behaviour.”

Earlier this month, Kindred posted a 30.0% year-on-year drop in revenue to £247.0m in the first quarter of 2022, with the operator putting the vast majority of its £105m drop in revenue down to its decision to withdraw from the Netherlands.