Tsang joined the company in 2020 following the business’s acquisition by former CEO Chan Wen Lin, who is now awaiting trial after being suspected of running a “triad organisation”. Tsang has resigned from Macau Legend with effect from 31 October in order to pursue “career development opportunities”.

The business accepted that this would mean for the time being the company did not fully meet the HKEX listing requirements.

“Following the resignation of Mr Tsang as the company secretary and the authorised representative, the company will not have a company secretary and accordingly, will not be able to meet the requirements under rule 3.28 of the listing rules,” stated Macau Legend in a release. “In addition, the company will not comply with the requirement under rule 3.05 of the listing rules that an issuer should appoint two authorised representatives.”

As a result, the business stated it will appoint a new candidate to the position.

Macau Legend’s board thanked Tsang for his service.

“The board would like to take this opportunity to express its gratitude and appreciation to Mr Tsang for his contributions to the company during his tenure of services,” it stated.

Stormy waters

Macau Legend has faced turmoil in the wake of Wen Lin’s arrest the company’s subsequent abandoning of its core junket business, which previously made up a majority of the organisation’s revenue.  Consequently, Macau Legend’s annual report was delayed in March which led to the company delisting from the HKEX.

Within the long-delayed report, which was eventually issued in July, auditors cast doubt on the ability of the business to even continue as a going concern.

“These conditions, together with other matters set out in note 2.1 to the consolidated financial statements, indicate the existence of material uncertainties that may cast significant doubt on the group’s ability to continue as a going concern,” the auditors said.

Trading on the HKEX was again suspended in August, when the business was unable to produce a H1 report in the required time period.

Lawrence Ho, chairman and CEO of Melco, said that although the results had been difficult there had been positive developments, including a recent increase in visitors in the latter stages of the quarter.

“In July, the Macau government implemented preventative measures against the pandemic and our casinos were closed for 12 days,” said Ho.

“Following the re-opening, the operating environment remained challenging given the continuing tight travel restrictions, but we are encouraged by the recent re-opening of Macau to international tourists from designated countries as well as the increase in visitation over the October golden week.”

Ho also commented on the ongoing public tender licence process, wherein six operators in the Macau region will be issued operating licences. Melco is one of seven operators that have applied, meaning that one will be left out.

“We submitted our proposal to the public tender for the award of new gaming concessions on 14 September 2022 and it has been a smooth and transparent process,” he continued. “We fully support the Macau government’s initiatives to further develop Macau as Asia’s premier destination for international tourism.”

“Our proposal reinforces our commitment to Macau, and we look forward to playing a leadership role in partnering with the Macau government to execute on its vision.”

A majority of the operating revenue came from casinos, which was $181.9m. However, this was less than half of the casino revenue last year, which was $373.1m. Rooms revenue was $25.9m, a decrease of 22.2%, while food and beverage revenue also fell to $17.9m from $20.5m. The remaining revenue was made up from entertainment, retail and other operations at $15.9m.

Melco’s City of Dreams integrated resort in Macau made up $66.4m of the total revenue for the quarter, while the City of Dreams Manila resort came to $102.6m. Revenue at its Mocha Clubs – a series of smaller gamn venues – was $18.8m and the business made $2.4m from the Altira Macau. Studio City revenue was $25.6m. Meanwhile, all Melco operations in Cyprus made up $24.8m of the revenue.

Costs amounted to $440.3m. Although this was 29.9% less than the costs recorded in Q3 2021, that decline was not eough to prevent a higher net loss – $198.5m, as opposed to $182.2m a year earlier.

Casino operations were the largest source of costs, at $173.8m. This was followed by depreciation and amortisation costs of $113.5m and general and administrative costs totaling $98.8m.

Following further costs such as interest and financing expenses, the business made a loss of $284.5m. This was up by 2.5% year-on-year.

After tax of $2.0m, the total net loss was $286.6m, an increase of 6.7%.

The total revenue for the first nine months of the year is $1.01bn, a drop of 33.8%. Expenses were $1.55bn, bringing operating revenue to $543.6m. Following interest, tax and other costs, the overall net loss for the period is $803.1m.

In an SEC filing released over the weekend, Wynn disclosed that Fertitta has acquired 6.9 million shares in the Las Vegas-based business, making him the second largest single investor in the company after Elaine Wynn – who has a 9% stake.

Fertitta has extensive experience in both hospitality and gaming through his ownership of the Golden Nugget casino chain.

The markets reacted positively the announcement in a jolt to Wynn’s share price. The company’s stock had fallen 51.5% since May 2021 as the business has been buffeted by the historically weak gaming environment in Macau, where Wynn has significant operations as one of the six concessionaires.

In the company’s Q2 financial report Wynn’s losses rose 23.1% from $173.3m to $213.4m. Despite this, CEO Craig Billings was bullish on the long-term prospects in the region.

“In Macau, while Covid-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time,” he said.

However, there is some hope that Macau is showing signs of recovery, reporting an over 30% month-on-month rise in revenue. Online visa rules are additionally set be relaxed from today in a boost to the land-based trade in the city. Uncertainty still remains, as the recent COVID-19 outbreak and lockdown at the MGM Cotai illustrates.

Houston Rockets owner Fertitta first entered the hotel business after his publicly traded company Landry’s Inc. acquired the San Luis Resort, Spa, & Conference Center in Galveston, Texas. This was followed by the business’s 2005 purchase of the Golden Nugget casino chain.

The amount generated from ticket sales in the three months to the end of June this year was 0.5% more than in the same period in 2021-22, but 13.9% lower than £491.3m in Q4 of the last financial year and also 16.8% behind £508.5m in Q3 of 2021-22.

According to the Gambling Commission, which published the figures, the quarter-on-quarter decline can be attributed an 8.7% fall in total National Lottery sales when compared to Q4 of the last financial year.

The Commission said all games experienced a decrease, with the exception of EuroMillions. Lotto ticket sales were down 15.9%, while scratchcard sales also fell by 11.4% quarter-on-quarter.

It was also noted that total unclaimed prizes added as returns to good causes were £29.0m less than the previous quarter, primarily due to a number of scratchcard games being closed in Q4 of 2021-22, in line with the usual annual cycle.

Since its launch in November 1994, the National Lottery has raised more than £46.0bn for good causes such as sports, arts and heritage, health, education and the environment.

Funds for good causes are held in the National Lottery Distribution Fund (NLDF), while the Gambling Commission ensures payments from the Lottery operator to good causes are accurate and on time.

The UK National Lottery is still under the control of Camelot, though its 28-year tenure as operator will soon come to an end after Allwyn was in September formally awarded the fourth National Lottery licence.

The Commission entered into an “enabling agreement” with Allwyn, meaning it officially had been awarded the licence and the transition to a new operator had begun.

This came after the Commission announced, in March, that Allwyn was its preferred applicant for the licence, ahead of incumbent Camelot, The New Lottery Company and Sisal.

Camelot and its technology provider IGT hit out at the decision and challenged it in court, arguing the regulator had not been forthright in its communication and that its staff were “owed a proper explanation” as to why its licence was not reviewed. 

This led to the High Court automatically suspending the licensing decision, but Camelot in September withdrew its challenge following media reports that money for good causes could be at risk in a lengthy court case – removing Allwyn’s final obstacle in receiving the licence.

Camelot said it would proceed with a separate claim for compensation, but news this week that Allwyn is in “advanced” talks over the acquisition of Camelot has cast doubt over the future of this claim.

Sky News, citing sources close to the talks, said Allwyn had opened talks with Ontario Teachers’ Pension Plan (OTPP), the current owner of Camelot UK, over a deal worth approximately £100m.

Sources said an agreement could be reached within a matter of weeks and lead to Allwyn taking ownership of Camelot’s entire UK operations, including the current (until February 2024) rights to operate the National Lottery – when Allwyn is set to take over.

Allwyn issued a response to confirm the talks but added that any deal would be subject to regulatory approvals.

The largest contributors to this figure is the Lottery Duty, which represents 30% of the total, and the Remote Gaming Duty which contributes 28% of the total. However, both the duties declined both in absolute terms and percentage of the total from same period the previous year.   

The 2022 figures had a high degree of variability month to month, demonstrating both seasonal variation and a decreased month-to-month stability in the figures post-pandemic – as commented on by HRMC.

“Since the 2020-21 financial year, monthly receipts have been more unpredictable and, instead, receipts across each quarter are now more representative,” it said.

As a result, the figures had a large range. At the high end, almost £500m of the total was gathered in April alone – while in September, just £93m was received by the public purse.  

The fall in the total recorded for Remote Gaming Duty could reflect wider trends in online gambling. Many large operators reported lower UK revenue totals in their Q2 financial reports – citing increased self-imposed consumer protections ahead of the UK gambling white paper, hits to consumer spend and tough comparables.

These taxes; including Machine Games Duty, Gaming Duty and Bingo Duty; increased since the same time the previous year. This is likely due to retail betting venues and casinos not being disrupted or closed by the Covid-19 pandemic in the six-month period in question, after closures or other limits in prior periods. However, receipts for these duties still remain generally below their pre-pandemic peak.   

888 Holdings’ Howard Mittman sees sports betting as a “cultural phenomenon” in the US, sitting at the centre of sports, media technology and betting. 

For Mittman, this makes his role at the operator, where he has served as president of US operations since April, a perfect fit. 

“Throughout my career, the experiences I have enjoyed the most are ones where I found myself at interesting cross-sections,” he says. “Whether it was technology and culture, fashion and culture, or sports and culture. 

“This creates an interesting opportunity to have a perch and a purview that looks ahead to where we’re going.”

His CV is packed with major industry names, such as Condé Nast, where he served as publisher and chief revenue officer for GQ and Wired, and Bleacher Report, where he led its foray into the emerging sportsbook sector with BR Betting. 

Working for 888 adds another high-profile media brand to that roster. Sports Illustrated, which dates back to 1954, is at the centre of the operator’s US strategy. That partnership with Authentic Brands Group was agreed in July 2021. 

888 has access to a nationally renowned brand, as well as exclusive advertising and editorial integration rights, for sports betting and online casino. There is huge scope for growth, as the US sports betting industry evolves.

“The way I’m thinking about the landscape right now is similar to Web 1.0 and Web 2.0, [but] in terms of Betting 1.0 and Betting 2.0,” Mittman explains.

“Betting 1.0 was solely about acquisition. Betting 2.0 is going to be about retention.”

Two sides of the same coin?

Sports betting and media are inherently synergistic, he continues. Media is the “on ramp” for the business’ betting strategy.

Take the industry as a spectrum, ranging from the media properties on one side, to the sportsbook operators on the other.

“I think some of the bigger players have one end of the spectrum covered in terms of their depth of experience and user base and a whole host of other factors,” Mittman says of the betting competition. 

“On the other end of the spectrum, we have this intensity of brand recognition. We have a media property that has a deep well of authority and consumer affinity. 

“What we’re trying to do is to underscore that connection for the consumer in an experience that blends the best of both content and entertainment to inform and engage our users.” The challenge for both sides, is to reach the middle ground. 

Leveraging the power of Sports Illustrated

How, then, is Mittman looking to lead 888 to that biting point between the two sectors? It has to start with “intensifying the connection” between Sports Illustrated and the online sportsbook.

“We have worked closely with our partners at Authentic Brands Group and Arena Group, and we’ve revitalised that betting vertical,” he says. 

“We’re creating content and content-led experiences that are allowing users to experience, read and use the product inside our app.” There’s also a “plethora” of product-led features so readers can immerse themselves in the content. 

Essentially, it’s trading on Sports Illustrated’s authority. It has the trust required to make the educational component resonate with the bettor. “Along with that comes a host of upgrades, like larger fonts, larger buttons and more white space.”

Talk of larger text and white space may suggest that it’s a case of building a minimalist sportsbook. That’s not the case. A sportsbook as simple as an Apple interface isn’t possible due to regulatory and technical requirements. 

“The design minimalism will only go so far and I think we’ll continue to advance the technological minimalism but that is layered with very necessary rules and regulations, everything from the state level to banking laws,” he explains. An operator’s challenge is to innovate within these tight parameters.

Instead, with the Sports Illustrated sportsbook, 888 is evolving the product experience. “Article integration is key,” Mittman says. “The opportunity to feature Sports Illustrated writers is a big part of what we bring to the table that others don’t.

“We think the education process is a big part of this, [and by] removing friction for users, simplifying it so that content can be part of the on-ramp for them. That’s a big advantage. It’s something we’re working on very aggressively, on the product side.”

Product as a point of differentiation

888 is making betting as accessible as possible for consumers, to experience betting and to learn the industry. At a stage when the integration of media and betting is embryonic there is scope to shape the narrative. 

Product can be a USP in such an embryonic market, he continues. “One of the mistakes that’s been made here across the entire industry is just retrofitting European products into the US market.”

Many would argue the European product itself was retrofitted for an audience that started out with in-person betting; accusations that sportsbooks are glorified Excel spreadsheets refuse to go away. 

US sportsbooks may have started along the same lines as their European counterparts, but Mittman believes the tried-and-tested models are ripe for disruption. 

“We’re going to start to see – and we have started to see – some really interesting evolutions that are taking us further away from the European sensibility to more closely align with what you see in other consumer-based technologies here in the US.”

Others are seeing what 888 saw when it struck the partnership with Authentic Brands Group. The belief is that Sports Illustrated content will aid retention and make betting part of the brand’s broader flywheel. 

“Some of the things we’re doing are making covers as NFTs and offering tickets and event access to bettors within the Sports Illustrated sportsbook,” Mittman adds. “For us, it’s all about the sports betting 2.0 model of retention; we’re heavily focused on that right now. 

Going after an older demographic

When the likes of Maxim, Yahoo, ESPN and NBC Sports are also jostling for eyeballs, who is the target audience? Experienced bettors form part of the Sports Illustrated sportsbook’s ideal audience but that’s not the sole focus. 

“In truth, we are building a mass-market product that is for 40-, 50-, 60-plus-year-old sports fans who are casual bettors or who don’t get betting.

“The Sports Illustrated brand resonates most deeply with those older consumers,” Mittman points out. 

“You have a level of trust and heritage, history and legacy, and journalistic credibility [with the 40+ demographic]. That’s where the content part resonates most deeply. 

“This is a group of consumers that has higher household income, but lower levels of technological sophistication, though are more loyal.”

Simply put, lifetime value will be higher, and players are less likely to be lured away by offers from competing brands. And higher household income means bigger entertainment spend. 

“We’ve seen from internal research that the average revenue per user (ARPU) for these consumers is four to five times what it is for under-40s, so we’re really playing to that,” he adds. 

This will come at a higher cost per acquisition. “[But] we think it’s worth it because we think that LTV will really pay dividends for us.”

That audience can also be reached across multiple channels. TV, newspaper ads and outdoor advertising all resonate. Online is just as effective; the 40-60+ demographic is almost as active online as younger consumers. 

“You probably won’t find us advertising much on TikTok in the near term. But I think Facebook or Twitter and some of the other platforms such as YouTube do a really nice job of delivering older consumers as well.”

888’s casino capabilities

There is significant room to grow for the brand. The Sports Illustrated sportsbook’s 888 mothership is a “true global leader” in online casino. Icasino’s total addressable market is much smaller than for sports betting.

Yet revenue across six states almost matched betting’s total in 31 for Q2 2022 . 

Mittman is convinced the Sports Illustrated sportsbook’s expansion into casino – starting with Michigan in January – will be “a real force multiplier” for the business. “[It’s] probably the biggest product advantage we have,” he says.

“We think that’s an area where we have scope not only to compete, but maybe have a shot at winning, and winning as we define it for ourselves,” he says. “We’re not a tier one player, but we think we can build a smart, healthy, profitable strategy that pushes us towards tier two. Casino will lead that.”

What can we expect from the Sports Illustrated casino? Mittman promises unique game experiences customised for Sports Illustrated. After all, there are 888’s “world class” technology and gaming studios to tap into. 

“The way I view it is sportsbook is the appetiser and casino is the entrée,” he says. “We’re going to be more and more focused here in the US not just on sportsbook, but on states where we can take advantage of sportsbook and casino-based opportunities.”

Where next?

This naturally makes states where online casino is permitted more attractive to 888, while it will also factor in tax rates as it draws up the expansion strategy for Sports Illustrated sportsbook. 

Crucially, the number of licences available play into Mittman’s thinking. “The fewer the licences, the more valuable they are to the individual operators.

“We prefer states where we can fight against five to 10 operators outside of tier one, as opposed to fighting 30,” he explains. 

“The states that check those three boxes are going to be the ones that we are most focused on strategically. I don’t think you’ll see us rolling out into every state. We don’t have a world domination strategy.”

888 will pick its battles and select states where it has the best place of carving out an audience. 

“We have a tight, disciplined strategy to focus where we think we have an opportunity to compete and where we think we have an opportunity to a player,” Mittman adds. 

As president, US for 888 he has taken on a key position that could play a pivotal role in the development of the US betting and gaming sector. Others are looking to get in on the action.

There are ongoing rumours of Disney’s entry into sports betting through ESPN, and Fanatics prepares to leverage its vast database with a proprietary product.

Others therefore seem to be of the belief that sports betting 2.0 is imminent and retention will replace acquisition.

For Mittman, this just adds to the thrill.

“Media seems to bring [retention] about organically. I’m happy everyone else is figuring that out because it confirms our thesis to some degree.”

Smith has served as CFO at Playtech since March 2015 and also been head of investor relations for the gambling tech giant for the past seven-and-a-half years.

However, he will leave the business on 28 November having reached a mutual agreement with Playtech.

Chris McGinnis, who has been deputy of investor relations and strategic analysis at Playtech since November 2018, will replace Smith as CFO and executive director. 

McGinnis joined Playtech in June 2017 first serving as head of strategic analysis before going on to his directorial role.

Prior to this, McGinnis spent six-and-a-half years with Temenos, where his roles included head of strategy, head of strategic planning, and associator director for investor relations and business strategy.

McGinnis also had spells working in equity research for BofA Merril Lynch, Stefil Nicolaus and UBS Securities.

“On behalf of the board, I would like to thank Andy for the contribution he has made to Playtech over the past seven years, and in particular since taking over as CFO in 2017,” Playtech chairman Brian Mattingley said.

“Andy has played a crucial role at the company, helping to steer the business through the pandemic including delivering a record half year performance in H1 2022, and leading the recent successful refinancing of Playtech’s external debt in light of the upcoming bond maturity. 

“We wish him all the best in his future endeavours.”

“I’m delighted that Chris will be joining the board as CFO. In addition to his deep knowledge of Playtech and the sector, he brings a strong set of financial and strategic skills that will be invaluable as the company looks to deliver further growth. 

“I am very much looking forward to continuing working with him as we execute against our strategy in the coming years.”

During the first half of the year, Playtech reported revenue of €792.3m, up 73% thanks in part to the success of B2C sports betting brand Snai.

The Authority said the customer in question was first allowed to gamble on the Top Sport website on 11 May this year.

This, the regulator ruled, was in breach of Article 205, Part 3, Article 201, Part 1 of the Gambling Law of Lithuania, whereby allowing players to connect with and gamble on a licensed website from outside of the country is considered illegal.

As a result, the Authority issued Top Sport with a fine of €15,000 (£12,934/$14,889).

The regulator also warned Top Sport that it could have its licence withdrawn if it does not make the necessary changes to rectify the breach. The operator has until 11 November to meet this requirement. 

The Authority added that the decision, as is the case with all its regulatory rulings, is not final and may be subject to appeal. 

The ruling comes after Top Sport in September was also fined €15,000 by the Authority for failing to properly install a digital video recording system at two of its retail betting facilities.

In May, Top Sport was issued a €25,000 fine for violating the country’s wide-reaching ban on gambling promotion. In this case, the regulator found that the business had posted a number of claims on its website that were deemed as encouragements to gamble.

The deal was announced last week, with BetMakers having agreed to pay up to AUS$20.0m (£11.2m/€13.0m/US$12.9m) to purchase the business.

Punting Form uses proprietary IP and artificial intelligence to create sectional times and benchmarks for horse racing, which are used for time-based ratings systems. Professional wagering syndicates, betting operators, content creators and form analysts use the service.

BetMakers said it viewed the acquisition as “strategically important”, saying the addition of Punting Form will further strengthen its position as a provider of B2B data and technology services for horse racing.

The provider said Punting Form will deliver improved back-end tools, more efficient pricing and improved relative trading margins to platform and managed trading services customers through its Global Betting Services.

In terms of its Global Tote operation, BetMakers said it will leverage the existing Punting Form relationships powering racing syndicates to drive more liquidity in existing and new markets for racetrack partners

BetMakers also said that the deal will offer improved pricing and increased confidence in overseas content for its Global Racing Network business, as well as deliver a wider range of data for its US fixed odds operations

Completion of the deal comes after BetMakers also reported a 13.3% year-on-year increase in revenue for the first quarter of its 2023 financial year, putting this down primarily to ongoing growth within its Global Betting Services business.

Revenue increased from $21.0m in the first quarter of last year to $23.8m this year.

This compares with the MOP2.96bn reported by the special administrative region for September, which was 49.6% below the 2021 total. This represents a 31.8% increase month-on-month in revenue. However even this modest recovery is still 85.3% below the pre-pandemic 2019 October revenue of MOP26.4bn.

The continuing recovery in monthly revenue likely reflects the relaxing of Covid-19 measures that occurred during the month. The former Portuguese colony had been over three months without a recorded case until Sunday, when an outbreak was reported at the MGM Cotai hotel and casino.

New rules

The Cotai has been locked down since then, with neither guests nor staff allowed to leave the premises until the period of quarantine is over. Additionally, all of Macau’s 700,000 residents are expected to conduct daily rapid flow tests.

The city also relaxed visa rules from today, allowing mainland Chinese citizens to apply via an online system – rather than requiring in-person applications as has been the norm since the onset of the pandemic. Group visas will also be allowed under the new rules, which will pave the way for the resumption of package tours.

Macau chief executive Ho Iat-Seng predicted in the policy’s announcement that subsequently daily visits could increase to 40,000 per day.  

However, the new visa policy has an in-built “circuit-breaker” mechanism which will suspend the new rules if a new Covid-19 outbreak is reported – meaning that the policy could be halted if the current outbreak increases in scale.  

Uncertain environment

The ongoing situation led to Las Vegas Sands CEO Rob Goldstein emphasising the uncertainty of the gaming sector in city in the company’s Q3 earnings call:

“I think we should be careful,” he said. “Predictions of Macau had been erroneous the last couple of years because we don’t know who’s going to come and we don’t know when they’ll close the market. It’s been stopping for so long. It’s kind of silly for us to pontificate on exact gains in EBITDA.

“Could we be EBITDA-positive? Sure. It’s positive tomorrow if things open up and visitation returns. And that’s going to happen at some point. But I think it’s difficult for us to tell you the fourth quarter could be EBITDA-positive without knowing what effect the visitors team will have in November and then also not knowing how zero Covid will happen. So there’s certainly unknowns in Macau that are very difficult to guess.”