Month: June 2022

Kazou Okada had initially been removed as CEO of the casino in 2017, with the business saying it was due to the “misappropriation” of funds. In April, the Philippine Supreme Court issued a status quo ante order, which returned him to the post.

However, the operator argues that it is not subject to the Supreme Court order as Tiger Resort Asia, the holding company for TRLEI, is based in Hong Kong.

Following this, Tiger Resort and its parent Universal Entertainment allege that “several persons under the direction of Okada violently entered and occupied” the property. Tiger Resort also claims that one of these people, Dindo Espeleta, was accompanied by around 50 police officers and private security guards.

The operator then said that Espeleta “unceremoniously forced” employees to leave the premises and “illegally dismissed key employees without authority”.

“For such serious criminal offenses as trespassing, obstruction of business, unlawful occupation, theft, assault injury and incitement, TRLEI will immediately file criminal charges,” the operator said.

The deal, Bragg said, will enable it to leverage Spin’s US igaming relationships to introduce new proprietary and exclusive third-party online casino content for both US and Canadian players, as well as cross-sell its existing European casino content. 

Through the deal, Bragg expects to launch its first proprietary games on its remote gaming server (RGS) with an initial rollout in Connecticut, Michigan and New Jersey anticipated to begin in Q3 2022, while games will also launch in Pennsylvania soon after.

Spin Games has existing deals in place with more than 30 North American operators, while its existing RGS and casino content are licensed and distributed in New Jersey, Pennsylvania and Michigan. The developer is also licensed in Connecticut and British Columbia in Canada

The developer has a proprietary content portfolio of more than 30 in-house developed games including in categories such as slots, video poker, action bingo and keno. 

Spin Games’ founder and chief executive Kent Young will now serve as president for Bragg’s Americas operations and oversee its US market roll-out growth strategy.

Bragg first announced the acquisition deal in May last year and last month was approved for a licence in Pennsylvania, clearing the way for the purchase to complete following an initial set of approvals in December 2021.

“Combining our RGS, advanced player engagement tools, data analytics capabilities and our newest game content developed specifically to appeal to North American players, with Spin Games’ state gaming licences and established integrations with online casino operators comprising the majority of the US market significantly accelerates our entry into the North America igaming market,” Bragg chief strategy officer Yaniv Spielberg said.

“We are positioned to quickly grow our US market presence over the next several months beginning with our igaming content and supporting game optimisation technologies. 

“In addition, our proven player account management (PAM) platform which powers several leading igaming and sports book brands in Europe, along with our full managed operational and marketing services allows us to offer a complete solution to online gambling operators of any size in currently regulated states and as additional states approve igaming.”

Young added: “I am delighted to now be a part of the Bragg team and I’m confident the company is perfectly positioned to leverage our leading RGS technology and proprietary and third-party content to quickly execute on our US and Canada igaming expansion plan. 

“In addition to strengthening our support of existing customers and markets, the combined company is positioned to accelerate the expansion of our propriety content library, pursue new markets, and leverage our technology to quickly support igaming in new states and provinces as they open.”

Ternström served in the positions for six years, having joined the business in June 2016, but decided to end his stay with Scout with effect from 3 June.

Scout’s chief financial officer Niklas Jönsson will now serve as acting CEO while the business seeks to appoint a permanent replacement.

“I would like to thank all partners, co-workers, board and owners for this time,” Jönsson said. “I would like to give a special thanks to all talented and courageous employees in Ukraine who are valiantly working despite the war and two years of pandemic. 

“I will remain as a shareholder and will be close to the company. I hope that I can also be of use for the company and its development in the future.”

Scout’s newly appointed chairman Niklas Braathen added: “I want on behalf of the company give a big appreciation to Andreas who has who put in a very great commitment to creating Scout Gaming’s organisation and not least the product that Scout Gaming today possesses. 

“Headwinds have been blowing for a while for the company, and a major reorganisation and transformation of how the company’s operations are conducted is now ahead of us, we have therefore agreed that it is appropriate for Andreas to leave the company. 

“He will be available to the company in any matters, which is important, and provides security for the company’s board, management and organisation.”

Confirmation of the departure comes after Ternström in March announced a cost review after stating he was “not at all satisfied” with the supplier’s slow growth and rising expenses in Q4 of 2021.

Revenue in the period ticked slightly upward by 1.2% to SEK17.1m (£1.4m/€1.6m/$1.8m), but expenses more than doubled to SEK51.0m.

This trend continued in the first quarter of 2022, during which revenue declined 10.4% year-on-year to SEK12.0m, while expenses were 9.5% higher at SEK33.5m. This resulted in a net loss of SEK19.6m, compared to SEK9.8m in the previous year.

The law introduces five objectives for the regulation of gambling in Gibraltar. These are the “preservation of confidence in gambling markets”, protection of consumers, particularly vulnerable people, promoting “fair and responsible” gambling, preventing links between gambling and crime and the public interest and reputation of Gibraltar.

Regulus partners noted that the first objective suggests a more holistic approach to the sector, rather than allowing authorities to “compartmentalise policies and regulatory requirements into one objective without thinking too hard about how it might affect the others”.

In terms of the final objective, Regulus noted that it showed Gibraltar intended to signal its credibility as a point-of-supply market rather than moving towards “dark grey” operations.

The rules also make changes to licensing. While licensing and regulatory bodies will continue to be seperate, it introduces a requirement that licensees should have a “sufficient substantive presence” in Gibraltar. The wording of this rule was chosen in order to allow the Minister for Finance – who acts as the licensing authority – flexibility “in relation to equipment location and other matters”.

Factors going into this requirement include the “nature, extent, purpose and usage”  of equipment in Gibraltar, the “number and nature of jobs to be created and maintained” and the amount of tax revenue paid.

The bill also lays out certain “threshold conditions” that all operators must meet to be licensed. These relate to the conduct of their business, the suitability of their owners, responsible gambling, prevention of crime and the location of their offices.

“In other words, the core concepts are  standards and suitability, and having a sufficient substantive presence in Gibraltar,” the government said. “These are the criteria both for the grant of a licence and, on an ongoing basis, for an own initiative decision by the licensing authority to consider revoking or varying a licence.”

Much of the bill relating to the supervisory powers of the Gambling Commissioner, meanwhile, was drafted to be similar to Gibraltar’s Financial Services Act, in order to create “a common regulatory framework, and professional understanding and expertise across regulated economic activities with similar statutory regulatory objectives”.

The law stems from a report published in March 2016 reviewing Gibraltar’s licensing and regulatory regime.

A stakeholder consultation on the bill is now open, allowing anyone affected to provide their input on the bill. It will last until 31 August, but the Gaming Division of the Gibraltar Ministry of Finance said it would “encourage early consideration of the material”.

“The Gambling Division will also be holding workshops and consulting with the Gibraltar Betting and Gaming Association,” it added. “However, where there is an appetite, meetings with sub sectors and individual companies can be arranged. 

“In due course, the Gambling Division will issue a licensing framework and fees document and codes of practice, including a social responsibility code, for consultation.”

Following the consultation, the bill will be introduced in Parliament.

The scheme is effective immediately from today (1 June), while holding statements will be despatched to shareholders in The Lottery Corporation on 3 June.

Shares will trade on the ASX on a normal settlement basis under the code ‘TLC’.

Implementation of the scheme all-but finalises the demerger of Tabcorp’s lottery operations from its wagering, media and gaming services. 

Tabcorp first announced plans to spin off its Lotteries and Keno arm in July 2021 following a strategic review of its operations. The review begun four months earlier and considered a number of structural and ownership options for Tabcorp to create greater value for its shareholders, including potentially selling off its wagering and media business. 

At the time, Tabcorp said a number of unsolicited proposals had been made for the division, including bids from Entain, Betmakers and Apollo Global, but the business said none of these represented the true value of the division. 

While Tabcorp opted to retain its wagering arm, it instead decided to spin off the lotteries business, which would result in two separate companies. 

One of these businesses was renamed The Lottery Corporation and comprise most of the former Tatts business, but without gaming services. The second business was named New Tabcorp and includes the wagering and media arm alongside gaming services.

Last month, Tabcorp’s shareholders overwhelmingly voted to back the demerger. Some 98.78% of the total votes cast during Tabcorp’s General Meeting and Scheme Meeting were in favour of the proposal, with just 0.17% voting against and 0.89% open votes.

Shortly after this vote, the Supreme Court of New South Wales approved the demerger. The group then lodged a copy of the orders made by the court with the Australian Securities and Investments Commission (ASIC) on 23 May, with the scheme will be effective from that date.

In relation to the demerger, this week it was announced that David Attenborough will retire as managing director and chief executive, with replacement Adam Rytenskild moving into both positions from today

Steven Gregg also retires as chairman and non-executive director of Tabcorp in order to take up the same roles with The Lottery Corporation. Bruce Akhurst will now assume the role of chairman of Tabcorp.

Meanwhile, Adam Newman stepped down as chief financial and take up the same role at The Lottery Corporation, with Daniel Renshaw becoming CFO of Tabcorp.

Patrick McGlinchey also exited as chief legal and risk officer and co-company secretary of Tabcorp, switching to the same roles within The Lottery Corporation, though Chris Murphy will remain as company secretary of Tabcorp.

Brett Chenoweth, Raelene Murphy and Karen Stocks were formally appointed to Tabcorp’s board as non-executive directors, while Harry Boon and Anne Brennan stepped down from the board to become non-executive directors of The Lottery Corporation.

There was no comparable revenue reported for Q1 2021. This year’s performance was aided by the expansion of the Luckbox-branded online casino, which ended the quarter with 421 games live.

The business also established partnerships and agreements with more than 50 affiliate sites, to drive traffic to its real-money esports betting, sports and casino products.

During this period, however, Real Luck said it was focused on developing its proprietary platform, meaning it expected minimal revenue for the three month period. This is set to change significantly, with the business now looking to ramp up player marketing to scale revenue in the coming year.

Cost of sales amounted to CAD$63,832 for the quarter, down 27.3% year-on-year. This resulted in a top-line loss of CAD$45,219, almost half of that in 2021.

Expenses totalled CAD$2.0m, a year-on-year fall of 12%. Salaries and director fees were the highest expense, adding up to CAD$465,098, a slight fall of 4.3%.

Consulting fees grew by 42.8% to CAD$451,382, while general and administrative expenses shot up by 138.1% to CAD$322,961.

The remaining CAD$797,414 came from other expenses, including legal and professional fees‬, depreciation and insurance.

After CAD$10,761 in additional expenses, Real Luck Group posted a Q1 operating loss of $2.0m, 13.7% less than in 2021.

An income tax benefit of CAD$1,453, reduced the operator’s net loss marginally, as did a favourable currency exchange rate. This ultimately meant the operator’s comprehensive loss from the quarter was down 16.1%, at CAD$2.0m.

“The first quarter of 2022 saw the company continue to make vast improvements to our platform, as we strive to become the world’s number one esports betting destination,” Thomas Rosander, CEO of Real Luck Group, commented.

“We have now introduced more than 400 games and products, including the newly launched online Luckbox casino, a vertical designed to bring engaging content to our players and near-term revenue to the business.”

Also during the quarter, Real Luck Group appointed Benn Timbury as chief operating officer and Bo Wanghammer to its board of directors, which Rosander said “strengthened” the company’s leadership team.

The Allwyn-owned operator credited recovery of its retail business for a strong start to the year, after operations in the prior year were hampered by Covid-19 restrictions.

Gross gaming revenue (GGR) for the three months to 31 March 2022 amounted to €457.2m (£389.2m/$489.8m), up 162.5% from €174.2m in the previous financial year.

OPAP said the Q1 2021 comparables were adjusted after it upped its stake in Stoiximan Group’s Greek and Cypriot business. It closed a deal for a 51% stake in August 2020, then increased this to 84.4% in November last year.

Lottery remained the primary source of revenue, with this division generating €170.0m, up 364.5% year-on-year, after it returned to full capacity across all channels.

Betting revenue increased 85.6% to €152.8m, supported by favourable comparables in retail and accompanied by strong online contribution. Video lottery terminal revenue was €69.4m, after no revenue was recorded for the division in Q1 2021, due to the shutdown of machines in line with Covid-19 measures.

Instant and passives revenue jumped 198.7% to €23.5m, again helped by the relaxation of Covid-19 rules, though online casino revenue fell 12.4% to €41.5m.

Turning to costs, OPAP noted €144.6m worth of GGR contributions and other levies and duties, as well as €89.9m in agent commission, €33.7m in other direct costs and €17.0m of other operating costs. These were only partially offset by €82.6m in other operating income.

In terms of operating expenses, payroll expenses were 8.5% higher at €20.2m, marketing costs increased 45.2% to €23.3m and other operating expenses hiked 54.4% to €45.1m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 175.4% to €168.8m, while after including €135.0m in depreciation and amortisation costs and €15.5m in finance costs, this left a pre-tax profit of €119.5m, up 724.1% year-on-year.

OPAP paid €29.6m in tax during the quarter, resulting in a net profit of €89.9m, an increase of 877.2% on last year.

“Following a strong FY 2021, OPAP posted a solid set of Q1 2022 results, driven by the solid retail contribution – despite the Covid-19 restrictions being in place – and the continuing online momentum,” OPAP chief exectuive Jan Karas said. “This was a result of multiple business initiatives, which focused on delivering engaging entertainment experiences and led to high customer attraction and retention levels.

“Geopolitical tensions and inflationary pressures affect private consumption, partially offsetting the positive impact of the lifting of various Covid-19 measures. However, our results reaffirm the attractiveness of our retail and online propositions, the power of our diversified product portfolio, the resilience of our business model, and our robust financial position.”

OPAP was therefore confident that it would continue to deliver value to all stakeholders, he added.

“Initiatives like the renovation of Greece’s two largest hospitals, which was successfully concluded and delivered to the state recently, showcase our commitment to giving back to society.”

Hogg was appointed on an interim basis last week after interim executive chair O’Neill stepped down less than two months after assuming the position, and less than a week before he was due to give evidence to the review into The Star Sydney’s licence.

Hogg becomes Star’s third executive leader in just over two months following former chief executive and managing director Matt Bekier’s resignation in late March in connection with issues raised during the ongoing review.

Hogg will earn AUS$1m per annum on a pro rata basis in his new role, compared to the $700,760 salary he was previously paid as chief casino officer for Queensland. According to Star’s 2021 financial report, then chief executive Bekier was paid a salary of $1.9m.

The Star said today that it is continuing to conduct the search for a permanent chief executive that began when Bekier resigned in March. The Star said that either party may terminate Hogg’s arrangement at any time on one month’s notice.

O’Neill – who had been the operator’s chairman – was appointed executive chair on an interim basis on 1 April, following Bekier’s resignation.

Much of O’Neill’s term as chairman had been characterised by a review into Star’s business amid accusations that the operator knowingly worked with junkets that had ties to criminal groups and that its anti-money laundering measures were insufficient.

A number of Star staff members have given evidence in a review by the New South Wales Independent Liquor and Gaming Authority into Star’s licence, which covers many of these accusations. O’Neill was the last witness to give evidence, on 23 May.

The review of The Star Sydney began in June 2021, and focused on assessing whether The Star was eligible for an operating licence in New South Wales. Allegations raised at the hearings include senior managers employed at the Star Sydney casino purposely deceiving regulators over illegal cash transactions in a junket room and were aware these breached money laundering rules.

Minaj will serve as a global ambassador for MaximBet and work with the online operator on merchandise, parties, partnerships, fan experiences and branding, with the aim of bringing together entertainment, sports, celebrities and betting.

The singer will also serve as the new creative director of Maxim magazine, special advisor to the MaximBet board of directors and be actively involved in the operator’s growth plans.

MaximBet launched late last year in partnership with international media company Maxim. The brand is currently live in Colorado with market access in 11 additional US states and the Canadian province of Ontario.

“Nicki is best known around the world as a mega superstar, but we know her as a brilliant businesswoman,” MaximBet chief executive Daniel Graetzer said. “Her role as a strategic advisor to MaximBet will be invaluable to us. 

“She’s built one of the most powerful brands in the world, her own, and she’s applying that same savvy and creativity to our lifestyle sports betting brand.”

Minaj added: “I’m ready to fully step into my potential as a young, influential Queen and owner and open doors for others to dream big. Get ready for the sexy parties and remember, scared money don’t make no money!”

The Washington Indian Gaming Association’s (WIGA) study found that its tribes generated $6.6bn in gross state product in 2019 and $5.6bn during pandemic-affected 2020.

The report, compiled by economist Jonathan B. Taylor of the tribal economy-focused Taylor Policy Group, claims that Washington State’s 29 tribal governments generate $1.5bn in direct wages and benefits, and tribal economic activity accounts for $1.2bn in state and local taxes.

Tribes directly employ 37,371 people across the state, and 54,000 total jobs can be traced back to tribes – which makes Washington tribes the state’s seventh largest employer. Of those jobs, 72% are held by non-tribal members.

“Tribes are running gaming and other businesses not to generate private profits, but to fund critically needed government services for some of the poorest and most historically marginalised communities in Washington State,” said Rebecca George, executive director of WIGA.

“Our commitment to responsible gaming activities along with a diverse array of economic development efforts led by tribes is both restoring tribal self-reliance and boosting our overall state economy.”

A 2004 analysis of tribal economic contributions in Washington found that the tribal economic impact at the time was $2bn, and tribes directly employed about 13,000 people.

“Growing tribal economies fund schools, housing programs, health clinics, environmental rehabilitation, infrastructure development, firefighting, law enforcement, and other public services for Indians and non-Indians alike,” reads the study.

“Washington has substantially benefited from the economic and social resurgence in Indian Country and will for years to come.”

Washington last year agreed new tribal compacts with a number of tribes, which were then approved by the US Department of the Interior.

Earlier this year, DraftKings secured market access in Washington after it entered a retail sports betting partnership with the Tulalip Tribes of Washington.

Flutter Entertainment-owned FanDuel Group is partnered with the Suquamish Clearwater Casino Resort, while BetMGM agreed a deal with the Puyallup Tribe of Indians to operate retail sports betting at the Emerald Queen Casino.

Caesars Entertainment opened its first retail sportsbook in Washington in February at the Muckleshoot Casino in Auburn.

The operator was awarded a sports wagering license by the Washington State Gambling Commission, allowing the new Caesars Sportsbook at Muckleshoot Casino to launch.

This came after Caesars agreed partnerships with each of the Muckleshoot and Spokane tribes, the latter of which owns both the Spokane Casino and Chewelah Casino.