Month: August 2022

The flagship LeoVegas brand and the Royal Panda brand will leave both markets on 1 September.

A LeoVegas spokesperson said the exit was part of a wider strategy to focus on regulated markets.

“The group’s strategy is […] to grow on locally-regulated (and soon to be regulated) markets. We continuously conduct strategic overviews of our group brands and the markets they are present in, seeing that we want to make sure that they fill a clear long-term purpose,” the spokesperson said.

The exits come as the business is set to be acquired by land-based giant MGM Resorts. The business secured all necessary regulatory approvals for the $607m (£513m/€608m) deal earlier this week.

At the time it submitted a bid, MGM said it planned to expand its online gambling offering into Europe and other markets outside the US.

At the time of publication, the spokesperson had not yet responded to a question on whether the market exits were linked to the acquisition.

The deal is expected to close on or around 7 September.

Though the business remained at a net loss by the end of the second quarter, the group was in a better position than at the same point in 2021, with revenue also increasing year-on-year.

However, with the group very much still in the building phase, and a lot of its focus being on developing its proprietary platform and other services, costs far outweighed revenue in the quarter.

Revenue for the three months to 30 June was CAN$13,855 (£9,066/€10,736/US$10,738), up 73.8% from $8,002 in Q2 last year. The group generates revenue through its Luckbox online casino, sports betting and esports betting operations, while it has partnerships in place with more than 50 affiliate sites.

Costs of revenue amounted to $48,500, while operating expenses for the period were 13.6% lower than the year before at $1.9m. This reduction was helped by a fall in share-based payments, which were more than halved to $236,519, though its main outgoing – salaries and director fees – was relatively level at $467,105.

After accounting for $9,878 in other net income, this left a pre-tax loss of $2.0m, compared to $2.3m last year. Real Luck paid $730 in income tax but also noted a $105,565 positive currency translation adjustment, meaning it ended the quarter with a $1.9m net loss, an improvement on $2.3m in 2021.

Looking at the first half and following a first quarter in which net loss was also reduced, the results for the six months to 30 June made for similar reading.

Group revenue increased more than four-fold to $32,468 and cost of sales was reduced by 13.4% to $126,237, while Real Luck was also able to lower operating expenses by 11.1% to $4.0m.

Other net income stood at $20,768, meaning pre-tax loss was $4.0m, compared to $4.7m at the end of H1 in 2021. Real Luck recovered $723 in tax and also accounted for a $160,776 positive currency translation adjustment, leaving a net loss of $4.0m, again an improvement on $4.7m last year.

The temporary Hard Rock Hotel & Casino Bristol opened its doors on July 8 having received a license from the Virginia Lottery Board in April this year. Construction work is ongoing for a permanent facility in the city, with this expected to open in the summer of 2024.

For July, AGR, which is calculated as total wagers minus players winnings, reached $11.7m, with $10.2m of this coming from slots and the remaining $1.5m table games.

It was also revealed that the casino paid $2.1m in tax during the month, with AGR taxed at a rate of 18%.

Of this, 6.0%, or $703,049, was distributed to the Regional Improvement Commission, 0.8% ($16,873) the Problem Gambling Treatment and Support Fund, and 0.2% ($4,218) the Family and Children’s Trust Fund. The remaining $1.4m went to the Gaming Proceeds Fund.

Hard Rock also plans to roll out sports betting at the new casino facility, having in May said it will launch a retail sportsbook at the site.

The operator already offers online sports betting in Virginia through its mobile sportsbook app that went live in May.

Gannett – which owns the country’s leading newspaper by circulation, USA Today, as well as a large network of local newspapers – had signed a deal with German market leader Tipico last year, as the operator looked set to expand in the US.

The operator committed to $90m in media spend over the five-year agreement, while Gannett would also receive referral fees for customers that place bets after being directed to Tipico from Gannett properties.

That agreement replaced Gannett’s partnership with MGM-Entain joint venture BetMGM, meaning the media business would promote Tipico odds instead of BetMGM’s.

Read the full story on iGB North America

The 33-year-old is alleged to have placed a total of 52 bets on matches between March 2017 and February 2022. 

The FA said that this breached Rule E8 on betting, which bans any player, match official and coaches from level eight in the English football pyramid and upwards from placing bets on games anywhere in the world.

Individuals found to have breached this rule face a fine, suspension or ban from the game.

Lincoln City, which plays in League One, also confirmed that Maguire had been suspended from the club “without prejudice” until further notice.

Scottish forward Maguire signed for Lincoln City in the summer of 2017 and scored five goals in his first season with the club, including a hat-trick against former team Sunderland.

Maguire has been capped twice by Scotland and also played for Derby County, Sheffield Wednesday, Oxford United and Rotherham United.

The War in Ukraine has changed the world for Ukraine-based businesses such as Parimatch Tech. Unlike other crises, in this case it was the first time the HR department had to take the brunt of the crash. While the war continues, we have already learned a number of important lessons that can apply to any business in a time of crisis. Some may be counter-intuitive, but all have played a key role in helping to keep Parimatch Tech running through 2022.

While the war continues, we have already learned a number of important lessons that can apply to any business in a time of crisis. Some may be counter-intuitive, but all have played a key role in helping to keep Parimatch Tech running through 2022.

HR went “back to basics”, and that’s OK

Meeting basic needs becomes a priority because of a high level of uncertainty. Therefore, we need to ensure that everything is stable at work — the company operates, employees have both current tasks and tasks for the future and payments are made on time, despite all the difficulties related to banking. 

It is vital to ensure that the underlying processes are clear, transparent and work accurately and in coordination. When you go back to the basics, you have three main tasks.

make sure the basics are working;communicate with clear messages. And do it daily because every day brings many changes;constantly analyse the current situation and plan for future actions.

Keep making decisions – right or wrong

Making any decision is extremely difficult at times like these when you are in shock. At some point, you realise that the key is to keep making decisions – whether right or wrong.

A wrong decision is already a good thing because you know for sure that it is bad, and you do not feel paralysed, wasting your energy trying to decide whether to make this decision or not. After all, the critical thing is to act. 

Do not wait, do not sit tight in anticipation that something will change. If you have enough information and some ideas, make decisions and act on them.

Corporate values ​​are your engine

Two of my colleagues participated in an ESG Hub Meeting recently, devoted to cases of the country’s support from Ukrainian companies.

Speaking about Parimatch Tech and the Parimatch Foundation, colleagues mentioned the financial assistance and charitable projects related to supporting and rehabilitating the victims of the war.

But I would like to note another vital aspect—the importance of developing a corporate social culture (CSR), which helps mobilise resources. This was also evident from other participants’ cases.

As a company that promotes caring for the employees at every step, we did not need to explain to people that caring for each other in hard times is the most important thing. We just have to provide people with the opportunity to implement what is needed at the moment.

Such an approach resulted in us launching many volunteer initiatives and projects. We not only helped Ukraine, but also created internal streams of support for our employees and their loved ones.

A vibrant corporate culture opens up additional opportunities to support not only in the event of hostilities but also in other emergencies, such as natural disasters or pandemics.

Optimism can be harmful sometimes

Optimism in our work processes had always been our strength, but became our weakness under new circumstances. 

We had plans prepared for various events, but a scenario like this one was unexpected for each of us, so we had to build internal processes aimed at helping the employees and their families from scratch. At times, a more realistic approach can help a business prepare for the worst.

Don’t show pity

I recently heard an interesting story: the centres providing help to refugees prohibited volunteers to show pity, hug or reassure people. 

These actions worsened the inner state of refugees, and they began to complain, feel sorry for themselves, and as a result burned out. 

Instead, volunteers were asked to provide people with activities, simple ones at least, like sorting some items. Such functional activities kept the hands and minds of those who were occupied by minor thoughts. I liked this approach. 

After all, the purpose of HR is to give a boost and inspiriration so that people get themselves together and start doing something. It’s crucial to do everything possible for people to get back to normal and begin to restore their lives as far as possible.

The operator in June implemented the scheme for the demerger of The Lottery Corporation, finalising the demerger of Tabcorp’s lottery operations from its wagering, media and gaming services. As a result, the new business now focuses only on the latter verticals.

Tabcorp first announced plans to spin off its Lotteries and Keno arm in July 2021 following a strategic review that begun four months earlier and considered a number of structural and ownership options, including potentially selling off its wagering and media business. Business that considered bidding for the wagering and media business included Entain.

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.

With the demerger now complete, this leaves Tabcorp free to focus on wagering, media and gaming, with chief executive and managing director Adam Rytenskild saying much of its focus moving forward will be on growing its digital operations and market share.

“We’ve made an urgent start to transform Tabcorp into a competitive and growing business,” Rytenskild said. “We have a clear strategy and a focused ambition to grow our customer base. The hero metric for everyone in the company is digital revenue market share, without exception. 

“FY22 results reflect a disrupted period – it’s a line in the sand and the end of old Tabcorp. We’re resetting our business and culture to focus only on customers and growth.

“Our transformation has started. In the near term, we have a clear plan with specific actionable priorities for FY23 including the launch of our new Tab App which is faster, simpler and different. 

“We are improving our customer experience and will better leverage our venue and media assets for customers. Structural reforms to level the playing field with offshore bookmakers will further improve our competitiveness and our opportunity to grow.”

Revenue dip

Looking at Tabcorp’s report for its 2022 financial year, revenue from continuing operations, excluding the demerged lottery business, was AU$2.37bn (£1.39bn/€1.65bn/US$1.64bn), down 4.3% from $2.48bn in the previous year.

When including the lottery business, revenue for the year was 1.4% lower at $5.61bn.

Tabcorp’s wagering and media business was by far the main source of continuing operations revenue, but the $2.18bn generated in 2022 was down 5.1% year-on-year, primarily due to retail closures in the first half as a result of Covid-19 measures.

Revenue from wagering fell 11.7% to $1.73bn, again due to Covid-19 restrictions in the early part of the year and the impact of wet weather leading to the cancellation of some events. However, media and international revenue jumped 33.2% to $454.4m as the Sky Media business continued to expand racing and sport content and its distribution through digital and retail formats.

Turning to gaming services, revenue increased 5.3% to $192.9m. Tabcorp said that this was helped by a return to its full-fee model in December 2021, having offered customers covid-related relief through most of the first half.

In terms of costs, spending was higher in almost all areas of the group, with the exception of employment expenses, which were down 6.5%, while other expenses also fell 9.3% to $41.9m. Tabcorp’s main outgoing remained commissions and fees, with these rising 7.5% to $1.18bn.

After also accounting for $61.1m in net finance expenses, this left a pre-tax loss of $136.2m, compared to a $100.7m loss at the same point in the 2021 financial year. Tabcorp received $17.8m in income tax benefit, meaning it posted a net loss of $118.4m, an improvement on the $160.9m loss reported in the previous year.

However, earnings before interest, tax, depreciation and amortisation (EBITDA) before significant items fell 21.7% year-on-year from $487.2m to $381.6m.

“FY22 was a disrupted year with first half Covid-19 lockdowns in our two largest markets, a record number of race meetings washed out and the priority challenges of a company pre-demerger,” Rytenskild said.

“We are seeing stabilisation in our digital market share, and our total focus is now on executing our strategy to transform and pursue growth. We feel the next results, reflecting this half, will be a good test for the improvements we are making.

“None of this is possible without our people, and we are working quickly to change our culture and the way we work to be innovative, bold and unified to win.”

The move will be effective from 1 September 2022; the board states that Humphrey’s presence will further strengthen the board, as well as bringing in a wealth of experience relevant to the strategy of the group.

Company chairman Richard McGuire elaborated: “Paul brings over 30 years’ main board experience and a successful track record focused on shareholder value creation. We are therefore delighted with this appointment, which further strengthens the financial expertise and independence of the board.”

Humphrey is currently a director at one active business, as well as having previously held a directorship role at a number of companies in the last five years.

Sportech has recently been riven by a number of resignations in its senior leadership team, including CFO Nicola Rowlands in July, CEO Andrew Lindley and non-executive director Ben Warn in May, as well as the company’s independent non-executive chairman Giles Vardey in April.   

These changes have mostly come as the business has downsized after selling its Global Tote business to BetMakers.

Under the deal, Highlight Games will develop a new suite of instant win products featuring archive footage from Manchester City matches.

Video content that will appear in the new digital scratch card games will include goals and action from domestic league and cup games involving the club.

“This agreement will enable Highlight Games to further extend its product portfolio, combining unique archive footage with Manchester City’s intellectual property to create premium branded games,” Highlight Games co-chief executive Steven Holmes said.

“We are confident that the simplicity of our new Instant Win games, combined with the best goals from Manchester City’s past seasons, will prove very popular with players.”

Manchester City clinched its sixth Premier League title in the 2021-22 season, narrowly seeing off a challenge from Liverpool.

The club currently sits second in the 2022-23 Premier League table with seven points from three games, following a 3-3 draw with Newcastle United in the third round of fixtures.

Ludeña officially joined Greentube and also took a seat on the developer’s board as part of a strategic move to strengthen the collaboration between the two businesses.

Gubo will combine his new role with his current position as COO.

“With our continued strong performance in regulated markets across the world, it is a natural evolution for Greentube to fully immerse itself in the wider entertainment industry,” Ludeña said.

“I am honoured to be appointed as the company’s first Chief Sportsbook Officer. While Greentube has a vast heritage in online gaming, we want to engage players across a variety of different online verticals in future months and years.”

Gubo added: “There are clear synergies between Admiral and Greentube that can help to drive growth for both parties. These new appointments will help to inform that strategy.

“On a personal note, it’s a privilege to join a company as prestigious as Admiral as managing director and I believe the future is bright for all involved.”