Month: July 2022

Handle for the month amounted to $17.2m (£14.2m/€16.5m), which was up from $13.7m in May of 2021 but 6.5% lower than $18.4m in April this year.

Revenue in May reached $2.0m, which was level with the same month last year and 42.9% higher than $1.4m in April 2022.

Breaking this down by individual operator performance, Caesars retained top spot with some $818,131 in revenue from $7.7m in players bets.

Gambet, which is operated by the DC Lottery and powered by Intralot, was second after paying out $4.3m in winnings from $5.0m in wagers, resulting in $724,451in revenue.

BetMGM, which operates in DC in partnership with Major League Baseball franchise the Washington Nationals, followed with $444,021 in revenue and a $4.0m handle.

Finally, Grand Central Restaurant, Bar and Sportsbook, which offers sports betting via an agreement with Elys Game Technology, placed fourth with $30,105 from $476,437 in wagers.

Consumer spending for the month reached $351.5m, up 54.9% from $227.0m in May 2021, but 12.0% down from $399.5m in April of this year.

Spending in May meant the amount wagered by players since the state’s legal market opened in January last year stands at $5.33bn. Virginia surpassed $1.00bn in bets in June of last year.

Adjusted gross gaming revenue, which is defined as total bets minus winnings, bouses and promotions and other authorised deductions, jumped 75.2% year-on-year $15.7m to $27.5m.

This amount also represented a 32.2% month-on-month increase from $20.8 in April of this year.

Consumers won a total of $308.9m from sports betting during the month, while $10.0m in bonuses and promotions were issued to players. An additional $5.0m in deductions was also recorded by the Virginia Lottery.

Virginia was able to generate $3.9m in tax from sports betting, with $3.78m of this going to the General Fund Allocation and $97,408 the Problem Gambling Treatment and Support Fund Allocation.

Player spending for the month reached $41.1m, up 45.2% from $28.3m in May of 2021 and also 2.2% higher than $40.2m in April this year.

Of this total, $25.3m was spent online, while the other $15.8m was bet at retail sportsbooks at the Twin River and Tiverton Casino locations.

Revenue was down 14.8% year-on-year from $2.7m in May last year and 11.5% lower than $2.6m in April of this year. The monthly figure was also the lowest total since $1.2m was posted in December 2021.

Some $1.9m of total revenue was attributed to online betting, with the remaining $461,059 being retail revenue split across Twin River and Tiverton Casino.

Of the two casinos, Tiverton Casino came out on top with $404,515 in revenue from $5.3m in player bets, ahead of Twin River with just $56,544 in revenue, but almost double the size handle of $10.5m.

Last week, it was announced that Bally’s Corporation had agreed to sell two more casino properties to Gaming and Leisure Properties (GLPI) in a sale-leaseback agreement worth $1bn.

Both the Bally’s Twin River Lincoln Casino Resort and Bally’s Tiverton Casino & Hotel are being acquired by GLP Capital, the operating partnership of the gaming real estate investment trust.

King was revealed as the new CEO of XLMedia in May and he replaces Stuart Simms in the role.

Simms announced his intention to step down as CEO in April and has now left the business after a short handover period.

“We’re pleased to welcome David to the role of chief executive officer and, on behalf of the board, I would like to personally thank Stuart for his hard work and commitment during his time at the company,” XLMedia non-executive chair Marcus Rich said.

Upon taking of the role of CEO, King also became a member of the XLMedia board of directors.

King was most recently served as chief executive of regional new group JPIMedia between November 2018 and January 2021.

Prior to this, he spent five years at regional UK newspaper group Johnston Press, first as its chief financial officer before becoming chief executive.

King was also chief executive of Time Out Group for four years, whole between 1998 and 2008, he was chief financial officer of BBC Worldwide, following a spell as finance director for international and television.

In addition, King served as head of corporate finance at the BBC between 1994 and 1996, prior to which he was a management consultant for Coopers & Lybrand.

The GGL came to be through Germany’s Fourth State Treaty on Gambling, which took force in June 2021.

The body took charge of enforcement issues in the country last week, replacing the Saxony-Anhalt State Administration Office, which dealt with illegal cross-state operations across the country.

It will take full control of gambling in Germany from 1 January 2023.

Mathias Dahms, president of the DSWV, said he hopes the GGL can overcome the challenges faced by the black market.

“The GGL is now facing major challenges and we hope that they will also overcome them,” said Dahms. “The unregulated black market has been able to take on gigantic proportions practically unhindered in recent years. GGL must therefore intervene now and create a fair market as quickly as possible.”

The association added that its recent market study was able to identify 507 unlicensed operators in the market, compared to the 36 operators licensed under the Fourth State Treaty on Gambling.

Dahms went on to say that ensuring a safe and fair market for operators should be an utmost priority for the GGL.

“The goal of everyone involved should be to create a secure market that is interesting for customers. GGL must therefore ensure that licensees can offer their customers attractive products on the legal market,” continued Dahms.

“Effective action against illegal providers and an attractive range of products on the legal market can actually stop the increasing migration of players to the unregulated black market.”

Last week, the Sachsen-Anhalt State Administration Office announced that it had approved nine more licences for virtual slot machines and poker in Germany. This was in addition to the three permits already issued to Mernov, Tipwin and Mybet.

This follows on from the state’s initial investigation, but deals with findings that suggest Crown allegedly violated elements of the Responsible Services of Gambling regulations, rather than focusing on money laundering or links to groups suspected of organised crime.

Victoria’s Royal Commission first found Crown inadequate to hold a licence in the state in October 2021.

The initial investigation into Crown’s suitability to hold a casino licence in Melbourne began in February 2021. This itself followed the Bergin Inquiry, which found that Crown was unsuitable to hold a casino licence in New South Wales.

Today, the VGCCC stated that it had brought additional disciplinary proceedings against Crown as Crown had not been “adequately supervising or interacting with hundreds or possibly thousands of customers who exhibited signs of problem or risky gambling” through the deployment of its Responsible Gambling Code of Conduct.

The VGCCC has asked Crown to provide information on its Responsible Services of Gambling obligations, and will assess this information to determine which disciplinary action to take.

If it is determined that Crown had violated the obligations, it could be fined up to AUS$100m, have its casino licence varied or be censured and guided through a rectification process.

“Crown’s responsible gambling obligations are a condition of the casino licence, designed to protect vulnerable patrons and to prevent gambling related harm to patrons, their families and the community,” said Fran Thorn, chair of the VGCCC. “There is no more important obligation.”

“We heard many distressing stories at the Royal Commission of vulnerable patrons being encouraged to gamble beyond their means. The VGCCC will therefore be unflinching in its resolve to deal with the issues uncovered at the Royal Commission regarding Crown’s approach to responsible gambling, and to ensure the casino operator acts in line with its legal obligations and the community’s expectations.”

The VGCCC launched an separate investigation into Crown Melbourne in April 2022, after Crown was found to have devised a China Union Pay process that evaded restrictions on Chinese currency.

The Las Vegas-headquartered group, formerly Scientific Games, has agreed to an amended purchase agreement with IMG Arena-owner Endeavor that will see it receive $750m in cash and $50m in Class A common stock for the sports betting technology business.

The conditions for closing have been modified, with Endeavor agreeing to waive the closing condition requiring regulatory approval by the Nevada Gaming Control Board, if required.

It is hoped the deal can now complete by the end of September 2022, with the initial target of Q2 2022 having already been missed.

The amended agreement is significantly less than the $1.20bn that was agreed in September 2021, which was to be funded by $1.0bn in cash and $200m in Class A common stock.

However, L&W said in a statement that the amended purchase agreement provides a “strong valuation” in the current market and also “increases the speed and certainty of closing” by modifying the conditions for closing.

It added that the recently completed the $5.8bn sale of its lottery business and the pending sale of OpenBet will cumulatively generate approximately $5.6bn of estimated net after-tax proceeds as L&W pursues its strategy of streamlining its business.

“Endeavor is the right partner for OpenBet and the amended agreement increases speed and certainty by creating a simplified path to closing the transaction, while unlocking substantial benefits for OpenBet and Light & Wonder,” said Barry Cottle, L&W’s president and chief executive.

“OpenBet demonstrates continued momentum across their key markets and the amended terms of the transaction provide strong value for the business. The significant cash consideration from the OpenBet sale will enable us to further de-lever our balance sheet and achieve our Targeted Net Debt Leverage Ratio range of 2.5x to 3.5x.

“This transaction is the final step in our journey to streamline our organisation as we deliver on our promises as the leading cross-platform global game company. Our enhanced financial flexibility will enable us to accelerate the return of significant capital to shareholders through our share repurchase program, while also investing in key growth initiatives.”

OpenBet has more than 75 global customers across markets such as the US, UK, Australia and Canada, and works with 46 sports books across 12 US states.

OpenBet, meanwhile, was acquired by NYX Gaming Group in 2016 for £270.0m, with NYX then acquired by Scientific Games in a CAD$775m (€519.6m/US$626.5m) deal in 2018.

It has been used as part of the solutions giant’s entry into the US sports betting market, until Scientific Games announced in June that it was to divest the unit, alongside its lottery arm, in order to reduce its debt and refocus the business on gaming.

Speaking last year, Endeavor said the purchase would complement its position within the sports betting market, created through data specialist IMG Arena.

The combination of OpenBet and IMG Arena, Endeavor said, would create a unique end-to-end solution, delivering official data and video streams, content, mobile products and betting technology solutions to leagues, federations and sportsbooks around the world.

“OpenBet marks a strategic addition to our sports betting portfolio as we look to round out our technology and product offering for sportsbook operators and sports brands worldwide,” Endeavor chief executive Ariel Emanuel said. 

“The combination of OpenBet and our IMG Arena business will enable us to expand our footprint across the entire sports betting value chain and further capitalise on the tremendous upside we see coming from this fast-growing global industry.”

Attendance is also predicted to exceed 2021, with 37% of pre-registrations attending the event for the first time.

Naomi Barton, portfolio director responsible for the iGB brand, said that the in-person aspect of iGB Live! is a valuable aspect of the show.

“We know from our stakeholder research how much value the industry places on participating in wide-ranging live events that connect with the entire gaming eco-system,” said Barton. “To answer this we have put together an experience that enables delegates to connect and converse with key suppliers, convert expert-led insights into actionable business growth and provide an opportunity to converge with entrepreneurs and professionals from throughout the industry.”

Barton continued by detailing the upcoming features at this year’s show, which includes a number of well-known industry names.

“Our conference programme will deliver insights from a total of 46 thought leaders including Ernie Stevens, chairman of the Indian Gaming Association and Chris Harrison, Google’s industry head, financial trading and egaming,” said Barton. “Added to this we have two in-depth masterclasses comprising a deep-dive advanced SEO masterclass and Demystifying the USA Affiliate Licence, a 3-hour, step-by-step workshop demonstrating to small and medium sized affiliates how to cost-effectively make and win an affiliate application in the United States.”

Barton added that the show will also have several new features, which incorporate slots and esports.

“Approaching half of pre-registration has confirmed an interest in online casino games and the iGB Live! Slots Arena is a dedicated feature for visitors to learn more about the latest innovations in a vertical that, according to data provided by H2 Gambling Capital, accounted for $18.8bn or 71% of online casino revenues in 2021,” continued Barton. “Added to that we are launching a new betting-centric set of esports tournaments to demonstrate the excitement of esports and explain the potential for delegates to expand into a new vertical.”

Looking ahead to next week’s event, Barton concluded: “As an organising team our aim is to build on the positive metrics, build on the good will that exists for the brand and continue the process of ensuring that iGB Live! unlocks business opportunities for attendees, helps to raise professional standards and delivers enhanced return on investment for our exhibitors.”

According to figures released by the Nevada Gaming Control Board, the state’s licensees reported a total gaming win of $1.30bn for the month. This was up 5.7% compared to May 2021, when licensees reported a gaming win of $1.23bn. It was also 32.4% higher than the $984.5m collected in pre-pandemic May 2019.

Las Vegas Strip casinos reported $731.5m in gaming revenue — the market’s highest-ever total for May. The figure was 11.6% higher than the $655.4m collected in May 2021.

Clark County as a whole collected $1.13bn in gaming revenue and accounted for almost 87% of the state’s total.

Table, counter and card games win was up 10.4% year-on-year to $430.0m, with win percentage at 14.4%. Slot machine win was at $870.1m, which was up 3.52% with win percentage at 7.3%.

Mobile sports betting wagering was up 23.6% to $16.4m. Baseball was the biggest total betting draw with wagers of $12.1m, with basketball at $9.6m and other non-major league sports at $6.4m.

According to local media reports, Gaming Control Board senior economic analyst Michael Lawton said special events, including the Canelo Alvarez-Dmitry Bivol boxing match and the Electric Daisy Carnival, brought large crowds to Las Vegas.

“The Strip faced a very difficult comparison versus the growth rate for May 2021,” Lawton said.  “Moving forward, the Las Vegas Strip will be facing stiff comparisons for the remainder of the calendar year.”

For the first five months of 2022, statewide gaming revenue is up more than 22.6% over 2021, which saw a single-year record of $13.4bn. Strip gaming revenue is up 40.2% over 2021, which ended with a record $7bn in gaming revenue.

Cooke is currently the chief executive of Tyro Payments, though he is better known for having served as managing director and group CEO of lottery business the Tatts Group from 2013 to 2018, leaving soon after its sale to Tabcorp closed.

Interim chairman Ben Heap said that his selection came as a result of an in-depth search for the right candidate.

“A comprehensive search conducted by global executive recruitment firm Spencer Stuart identified a number of quality candidates,” he said. “Following a thorough process, the board concluded that Robbie was the standout candidate with the ideal combination of experience, capabilities and attributes to lead The Star.

“Robbie is a trusted, respected and highly experienced chief executive. He has been the CEO of major ASX 200 listed companies and brings extensive commercial experience in operating and driving transformation programs within highly regulated environments, overseeing large workforces and building executive teams in multi-jurisdictional locations.

Heap added that Cooke had achieved significant success at every stop of his career.

“As CEO of the lotteries, wagering and gaming operation at Tatts Group, he led a comprehensive transformation program and secured valuable licence agreements with various state governments,” he said. “In his role at Wotif.com, Robbie helped build a market leading business across the hotel sector during a period of significant industry disruption. Most recently at the Australian bank and payment fintech, Tyro Payments, he led the company through the post-Financial Services Industry Royal Commission environment with a focus on risk culture, cultural alignment and employee engagement whilst driving strong transaction growth from ~$13 billion to in excess of $30 billion over 4 years.”

The appointment comes as The Star faces reviews into its operations, and in particular its anti-money laundering processes and connections to junkets that were linked to organised crime groups. A review of its operations in New South Wales is set to come to a close soon, with the counsel assisting the investigation arguing that there was “no evidence” that the operator was fit to keep its licence.

Elsewhere, an a review is also set to begin in Queensland, with a particular focus on the operator’s system for allowing China UnionPay payments, which ordinarily are not permitted to be used for gambling.
Heap said that Cooke will “restore confidence” in the business amid these events.

“Robbie is well placed to lead The Star and restore confidence in the organisation,” he said. “He is an outstanding choice to guide the company through its critical ongoing renewal program, a body of work already underway that will deliver a number of near and medium-term initiatives focused on governance, culture, training, systems and technology.”

Cooke said that he was excited to return to the world of gaming.

“I am delighted to have the opportunity to re-join the gaming and hospitality industry, which is a passion of mine and where I have spent the majority of my career,” he said. “There are challenges for The Star that have been well documented. They will be my priority and focus.

“Ensuring continuity of the business through a comprehensive renewal program is of paramount

importance. This is also an incredibly resilient business with thousands of team members providing the commitment, enthusiasm and inspiration that helps deliver outstanding customer service.”

Cooke will be the operator’s fourth chief executive this year, after Matt Bekier resigned from the post amid the New South Wales review. Initially, chairman John O’Neill took over the post, becoming executive chair.
However, just before he gave evidence to the review, O’Neill also opted to step down from both of his posts. As a result, Geoff Hogg became acting chief executive, while Heap became interim chairman.

The Star will soon announce the date on which Cooke will take over.