Armstrong’s promotion is the latest in a string of recent personnel changes for the Louisville-based gaming company, following the recent ascension of Nate Simon to chief technology officer.
Bill Carstanjen, CDI chief executive officer, was bullish on Armstrong’s prospects.
“She has quickly earned the respect and trust of everyone on our team,” he said, continuing that he was looking forward to her “impactful leadership” in the future.
Revenue for the three months to 30 April was $8.5m (£6.8m/€7.9m), up 226.9% from $2.6m in the corresponding period in the previous financial year and just short of the quarterly record of $8.6m set in Q1 of 2022.
Golden Matrix said that this increase was largely due to its acquisition of an 80% controlling ownership RKings in November 2021, with this area of the business responsible for 60% of total revenue in Q2.
The provider also noted a 28.0% year-on-year increase in revenue from its traditional B2B segment during the quarter.
Golden Matrix in Q2 also began trading its common stock on the Nasdaq Capital Market in the US, via the ticker symbol ‘GMGI’. Plans for the listing were first announced in March of last year.
Turning to expenses for the quarter, the cost of goods sold amounted to $5.9m, up by 293.3% year-on-year, though the sharp rise in revenue meant gross profit was 127.3% higher at $2.5m.
Total operating expenses were up 80.0% to $1.8m, leaving an operating profit of $758,534 for the quarter, an increase of 436.2% on last year. Golden Matrix also noted a foreign exchange gain of $114,153, which meant pre-tax profit was $873,229, up 582.3% year-on-year.
The provider paid $171,780 in income tax and also noted $114,465 in profit attributable to its non-controlling interests, meaning net profit attributable to Golden Matrix was $586,984, up 351.6% from Q2 of 2021.
“We are pleased with the financial results of our second quarter as a company with both B2B and B2C verticals,” Golden Matrix chief executive Brian Goodman said. “During the quarter we implemented upgraded technology and stronger accounting controls to improve cash flow and profitability at RKings.
“The acquisition of RKings has given us entry into a well-established B2C vertical in a new market outside of the Asia Pacific region. With its highly popular prize offerings coupled with nominal player acquisition costs, the RKings’ Tournament Platform is highly scalable; and we plan to introduce it into additional regulated markets worldwide, beginning with Mexico in the current quarter.”
In terms of its first-half performance, revenue for the six months to 30 April amounted to $17.4m, up 278.3% year-on-year.
Costs of goods sold jumped 433.3% to $12.8m and operating expenses were 70.0% higher at $3.4m, leaving an operating profit of $1.2m, up 578.9%.
Golden Matrix gained $198,829 on foreign exchange, which meant it was able to post a pre-tax profit of $1.4m, up 656.2% from $180,144 last year.
After also accounting for $247,184 in income tax payments and $178,757 in profit that was attributable to non-controlling interests, net profit for the half was $936,363, an increase of 419.8%.
“We enter the remainder of this fiscal year with two robust operating divisions and a strong balance sheet,” Goodman said. “As stated previously, we continue to evaluate new opportunities in both the B2B and B2C spaces that will further accelerate our overall revenue growth and – in accordance with our acquisition strategy – are always accretive to earnings.”
The proposed Betting and Racing legislation clarifies that gambling advertising must not encourage people to gamble. Under these rules, welcome offers that require users to create an account are banned, with the Liquor and Gaming Authority deeming these as presenting “new opportunities for gambling-related harm”.
Similarly, the law would also ban “special odds” for similar reasons.
In addition, operators would no longer be able t broadcast advertisements during certain sporting events.
Corporations can receive a fine of up to AUS$15,000 for violating these rules, while individuals can receive a fine of AUS$5,500.
The Liquor and Gaming Authority will have the authority to judge whether advertising is considered to violate this ban.
The draft proposal also defines aspects of the regulation that the 2012 edition did not – including the term sports controlling body.
Kevin Anderson, the Minister responsible for liquor, gaming and racing legislation, will be able to approve applications to be a sports controlling body for a sporting event.
Sports controlling bodies will also have to give the Minister notice of any changes in circumstances.
Meanwhile, a draft Totalizator Regulation legislation approves the distribution of gambling information brochures and displaying notices related to counselling services in any area of a premises that offers totalizator betting.
Gambling in New South Wales is currently regulated by the Betting and Racing Act 1998 and the Betting and Racing Regulation 2012, along with the Totalizator Act 1997 and the Totalizator Regulation 2012.
The regulations will expire on 1 September 2022. If successful, the new regulations – titled the Betting and Racing Regulation 2022 and the Totalizator Regulation 2022 – will support both Acts.
These were developed by the New South Wales Liquor and Gaming Authority, and are set to take effect when the prior regulations expire.
A public consultation will allow industry stakeholders to submit feedback on any element of the proposed regulations through the Have Your Say website.
Participants can take part in the consultation by completing an online survey, providing a written response on the website or through post.
The closing date for submissions to the public consultation is 22 June 2022. Any key developments that may come as a result of the consultation will be announced after this date.
“A large proportion of the community derive great pleasure from wagering and enjoy placing a bet without it becoming a problem,” said Anthony Keon, CEO of hospitality and racing. “The protections in the regulations not only create sustainability for the industry, but certainty for the community that licensees are fit to conduct gambling, that penalties are fair and proportionate and that there is communication and engagement with people who do experience gambling harms.”
“Essentially, the regulations support the legislation and are there to set the standards around the conduct of betting service providers so punters can freely pursue wagering as a safe form of leisure and entertainment.”
Issued to BV Gaming, the parent company of BetVictor, the licence will enable the operator to offer online sports betting and casino games to consumers.
The licence was issued by the Alcohol and Gaming Commission of Ontario (AGCO) and runs from 3 June 2022 to 2 June 2023.
BetVictor will join a series of other operators in going live in Ontario, following the launch of the province’s regulated online market on 4 April this year.
Unibet, theScore, BetRivers, 888, PointsBet, LeoVegas, Bwin, Bet365, FanDuel, BetMGM and Caesars all secured licences before launch day, while other brands such as DraftKings and Betway have also gained approval following the market’s opening.
Specialist licences have also been awarded to a number of content suppliers and providers such as Playtech.
Ontario’s market opened following almost three years of work to launch, after the provincial government revealed plans to end the lottery’s online gambling monopoly in April 2019.
Final standards for online betting and gaming were published last September, with online gaming standards including a number of limits related to game design such as a ban on autoplay.
The report examined the industry’s contribution to “levelling up” of the British economy outside of London, and highlighted “the unsung but often profound role the sector plays in levelling up”.
While the gaming sector already directly employs 10,000 high skilled jobs as well as supporting another 30,000 posts, based on current industry trends, the report predicted that future growth will be primarily concentrated outside London.
Just over two thirds of existing jobs already are outside of London with 20,000 jobs based in the West Midlands alone. In particular, the report notes Leeds, home of Sky Bet, and Stoke-On-Trent, home of Bet365, as “examples of specific communities which have benefited significantly from the presence of BGC members.”
In total, regulated betting and gaming in the UK supports 119,000 jobs as well as generating £4.5bn in revenue for the public purse.
BGC chief executive Michael Dugher said that the industry was “now on track to deliver another 15,000 high paid, high skilled jobs”.
Dugher added that the only risks to that growth would be “poorly conceived regulation that hamper business and threaten jobs”, alluding to the Gambling Act Review, which could lead to a number of major changes for the country’s gambling industry.
The BGC also argued that the economic and social issues must be balanced against each other.
Meanwhile Jo Gideon, MP for Stoke-on-Trent Central, argued that in the context of social and economic challenges such as the cost of living crisis and the legacy of Covid-19 “the importance of responsible organisations and the role they play has never been greater”.
Additionally, the report also highlighted the pledge to create 5,000 apprenticeships in the industry between now and 2025 as well as to spend £20m on training and development programs.
Lord Walney, chair of the Purpose Coalition, elaborated on how the regional nature of the industry helped develop levelling up goals, saying that “the geographic spread of betting and gaming companies, their presence on most of our local high streets and the integral links the sector has with vital sporting events, give BGC members an important role to play in levelling up the UK”.
“The sector now faces a fresh challenge of persuading the government to modernize its regulatory framework in a way that allows its positive economic impact to continue despite tighter restrictions to protect vulnerable consumers”.
Three people have been sentenced for their role in running Spin City, an illegal gambling operation, in Flint Township Michigan.
Charges were filed against the three by the Michigan Department of Attorney General in 2019, after investigators from the Michigan Gaming Control Board (MGCB) looked into a report made by Flint Township Police.
Anthony Sutton of Wilmington, N.C pleaded guilty to a gambling operations felony charge. He was sentenced to one year of probation and 100 hours of community service. He was also ordered to pay $1,058 in costs.
When a search warrant was issued on 27 February 2019, Sutton forfeited around $12,500 in cash and had 67 computers and games confiscated by Flint Township Police Department.
Kara Schilling of Flint pleaded guilty to maintaining a gambling house for gain – a misdemeanor charge – and was sentenced to one year of probation, 50 hours community service and was ordered to pay $1,058 in costs.
Marjorie Brown, also of Flint, pleaded guilty to attempting to maintain a gambling house for gain. She was sentenced to six months of probation, 100 hours of community service and was ordered to pay $985 in costs.
All three were also sentenced to one day in jail, and received credit for time served. They will also be subject to a random drug test during their probation periods.
“The Michigan Gaming Control Board appreciates the support from the Attorney General’s office and police agencies across Michigan in helping to eliminate illegal gambling locations, which target low-income neighborhoods, lack player protections and can lead to other more serious crimes,” said Henry Williams, MGCB executive director. “These types of illegal gambling locations also deprive K-12 schools of tax funding, which the state charges on legal, regulated gambling.”
Benjie Levy, president and chief executive of theScore, said that parent company Penn National Gaming – which acquired theScore last year – planned to focus on the Barstool brand in the US and theScore in Canada, where its brand is stronger.
TheScore is based in Canada, and became one of the first operators licensed in the province when it launched on April 4.
“Since Penn’s acquisition of theScore, the company’s plan has been to lead with Barstool Sportsbook in the US and theScore Bet in Canada, given our strong brand equity there,” Levy said.
Levy also alluded to the fact that theScore was working to build its own sportsbook technology, which would power the Barstool brand, and said theScore’s media brand would continue to do business in the US to help support barstool.
“With theScore Bet launched and thriving in Ontario, and as we approach a major undertaking this summer with the launch of our proprietary risk and trading service, the timing is right to focus our US efforts on marketing Barstool Sportsbook and our Canadian efforts on marketing theScore Bet,” he said.
“This move enables us to maximize the value of both brands through our organic media and gaming approach. Key to our strategy is integrating theScore media app with Barstool Sportsbook in the US, which we’re currently working towards.
“Bringing together theScore’s powerful sports media platform with Barstool Sportsbook, supported by our in-house technology will strengthen the overall US product offering and broaden its reach.”
Allwyn announced the deal in January, and said that the listing would result in a total enterprise value of approximately $9.3bn (£6.9bn/€8.2bn). At the time, it expected the merger to be complete in the second quarter of 2022.
However, in an investor presentation last month, Cohn Robbins has now said “the transaction is expected to close in Q3”.
Under the deal, existing Allwyn shareholders will continue to hold 83% of the business. Public shareholders in the SPAC will hold 11%, while private investors will hold 5% and Cohn Robbins’ sponsors 1%.
Since the merger was announced, Allwyn was selected by the Gambling Commission as the winner of the tender for the UK’s fourth National Lottery licence, which would make it the first business other than Camelot to operate the lottery since it began in 1994.
However, Camelot has raised a High Court challenge disputing the licence award. The business said that “despite lengthy correspondence, the Commission has failed to provide a satisfactory response” to why it had not been chosen.
Allwyn last month also completed its rebranding from its former name of Sazka. The operator said the new name reflects its evolution from a pan-European lottery operator into a global business.
He takes up the position from Rootz’s headquarters in Malta and will be charged with running the commercial affairs division.
With more than 15 years under his belt across a number of C-level B2B and B2C roles, Brown’s experience may prove to be an asset for the company as it continues to grow.
The appointment comes at a time of expansion for Rootz. Since the launch of its flagship Wildz Casino in 2019, Rootz has made four additions to its portfolio, including most recently the launch of streaming site Spinz Casino in March.
The move may be a signal that the company is looking to continue its strategy of expansion, as the business said current chief marketing officer Melanie Hainzer may focus more firmly on the operator’s acquisition arm while Rootz continues to obtain licences across a variety of jurisdictions.
The operator plans to be operational in Germany in the immediate future, with Netherlands and Ontario licences likely to be received in Q4 2022 as it expands its global reach.
Regarding the move, Brown himself had this to say: “I have maintained a keen eye on Rootz for several years now, and it feels great that I no longer need to admire from afar”.
“I’m really excited about the new challenge, and looking forward to working with a high performance team”.
The Betting Innovation Centre aims to integrate data with statistics, combining expertise from data science, sports data, elite modelling and trading to address challenges in customer and operator experiences.
The first product – which is set to launch in November – will focus on player props and betting experiences in football. It will connect player statistics and bet engagement content to a player level.
“The Betting Innovation Centre’s ingredients are truly world-class,” said Shane Gannon, SVP of partnerships at Stats Perform. “Sporting Solutions is renowned for its superior pricing, sharp models and traders and access to Sporting Index to fine-tune product performance.”
“Stats Perform brings the trust and quality of Opta and RunningBall data, seen by fans across sports broadcasters and publishers globally, a legacy of building outstanding front-end experiences to inform and engage bettors, and the sports industry’s largest data science team.”
Andy Wright, CEO of Sporting Solutions, added that he recognises a significant gap in the market for betting that this partnership can fill.
“We share a joint belief with Stats Perform that betting has enormous untapped ‘game-play’ potential,” said Wright. “Dynamic pricing at scale is extremely difficult, which has held back product and market options.”
“The industry also needs innovative, engaging products, that are easy and entertaining for bettors to use and don’t involve lengthy development times for operators. That’s the future we will unlock with our Betting Innovation Centre.”
