Month: January 2023

Approval from local regulator Lotería de la Ciudad de Buenos Aires (LOTBA) will enable the provider to work with licensed operators in the Argentine city, which opened its market in early 2021.

Content from Yggdrasil, which celebrates its 10th anniversary in 2023, will includes titles that feature its game engagement mechanics (GEMs) and slots from the YG Masters program.  

The new approval further expands Yggdrasil’s presence in Latin America, with the provider having entered the region last year when it began to offer its igaming content in Colombia.

“We are starting the year with a great milestone in achieving the approval to supply our content in the City of Buenos Aires,” Yggdrasil chief executive Björn Krantz said.

Yggdrasil joins a number of other content providers to have been approved in Buenos Aires including Play’n Go, Zitro, Habanero, iSoftBet, Greentube and Pariplay.

The current rate is set at 50% on net stake receipts, but the NPP proposal would increase this to 80%, which in turn would mean the HKJC would have to pay significantly more tax.

The HKJC estimated that if the duty change was to be approved, the amount it pays in tax would jump from the current HK$25.00bn (£2.58bn/€2.94bn/US$3.19bn) to HK$31.00bn, while revenue would fall from HK15.00bn to HK$9.00bn, a decline of 40%.

“It will result in a zero surplus at best or more likely a negative one, preventing the Club from making necessary investments to secure its future and from contributing to the community,” the HKJC said. 

“In reality, however, consumer behaviour can be highly dynamic. Any perturbation such as a tax increase, or simply the perception of such, could easily result in a disproportionate response, even if the tax increase is not immediately passed on to consumers directly. 

“The change in demand triggered by a perceived price change in the wagering business would be substantial.”

The HKJC remains the only licensed betting operator in Hong Kong, but faces competition from other, offshore brands that are active in the market and not subject to tax duty rates as they operate illegally without a licence.

This, the HKJC said, is primarily because Hong Kong already has the highest betting duty rates in the world. It added that any increase football betting duty would reduce the Club’s competitiveness and drive more people to bet with illegal and offshore bookmakers.

“We would like to reiterate that the NPP’s proposal represents a lack of understanding of the competition in the wagering market and the Club’s investment and business,” the HKJC said.

“It will create irreversible damage to Hong Kong by destroying the Club’s longstanding successful business model and Hong Kong’s world status as a leading racing jurisdiction and will jeopardise the public interest of Hong Kong.”

Attenborough left Tabcorp in May of last year after leading the operator for more than 12 yeas. His departure coincided with the demerger of Tabcorp’s lottery operations from its wagering, media and gaming services.

Prior to his time with Tabcorp, Attenborough was CEO for South Africa at Phumelela Gaming and Leisure for six-and-a-half years, while he also spent 11 years working within gambling-focused roles for the Hilton Group.

Attenborough’s proposed appointment to the NED role at SkyCity is subject to regulatory approval in each of the gaming jurisdictions in which the operator is active. 

SkyCity aims to complete this process and the appointment by 1 March, with Attenborough having already agreed to take on the new role.

“David has extensive gambling industry, corporate governance and sustainability experience which will bring considerable expertise to the SkyCity board,” SkyCity chair Julian Cook said. “We are delighted that he has agreed to join the SkyCity board.”

The proposed appointment comes after it was announced last month that the Australian Transaction Reports and Analysis Centre (Austrac), a government-run financial intelligence agency, had launched federal court proceedings against SkyCity Adelaide for anti-money laundering failings.

Austrac said the land-based casino operator demonstrated a pattern of “serious and systemic non-compliance” with the country’s anti-money laundering (AML) and counter terrorist financing (CTF) laws.

The civil penalty proceedings commence following an investigation into the New Zealand-based business, which SkyCity was notified of in June 2021. The probe itself was a product of an industry-wide compliance campaign initiated in September 2019.

Elmore served as division head of global sales and development for GLI’s Kobetron division for 14 years and returns to the New Jersey-headquartered testing, certification and assessment services provider after a spell as vice-president of sales for Gaming Innovation Group.

In his role, Elmore will work directly with casino operators across North America on a broad range of issues affecting the industry, including matters such as the convergence of land-based and igaming, cybersecurity and evolving regulations.

Ian Hughes, GLI chief commercial officer, said: “We are excited for David to head GLI commercial services working with casino operators across North America as demand continues to grow.”

“He will ensure we continue to exceed the needs of our clients and maintain a deeper understanding of industry requirements by facilitating regular, on-site meetings.”

GLI has offices around the world and has tested equipment for more than 480 jurisdictions since being founded in 1989. Its North American offices span the US, Canada, the Caribbean and Mexico.

Arnold began his new role earlier this month, at the start of the business’ centenary year. 

He joins from Noel Hayden’s LiveScore Group, which runs the Virgin Bet and LiveScore Bet sports betting brands, where he spent three years first as chief operating officer, then chief commercial officer. 

Earlier in his career, Arnold worked for the likes of Betway, Boylesports and SportingBet, holding a number of marketing and executive roles during his tenure with each operator.

He replaces Derek Lloyd, who served as CEO of The Football Pools since July 2017. 

“I’m delighted to be joining such an iconic British brand at a time of significant change and development,” Arnold said.

“A lot of good work has already been done to reposition the company for growth and I look forward to working with the executive team to bring these plans to fruition over the coming months.”

The Football Pools, established in 1923, has been a prominent feature of the British betting industry, with a number of pools products available in the market. 

These were merged into a single entity from 2000, when Sportech acquired Littlewoods Pools for £161m in 2000. This was followed by deals for the Zetters and Vernons pool betting businesses in 2002 and 2007 respectively. 

This was followed by the new operation being rebranded as The Football Pools in 2008, and the launch of an online offering the same year. A full online sportsbook product followed in 2018.

Sportech went on to sell the business to private equity owner OpCapita for £83m in 2017.

Financial terms of the agreement were not disclosed, but it was confirmed that the deal was able to complete following approval from the UK’s Financial Conduct Authority.

Together, Trustly and Ecospend’s capabilities will include connectivity with more than 80 banks in the UK, as well as a reach of over 50 million consumers in the UK and payments volume in excess of £7.50bn (€8.53bn/$9.27bn) in the region.

Founded in 2017, Ecospend specialises in pay-by-bank payments and holds a contract with HM Revenue and Customs, the tax authority of the UK government.

“We are very excited that we have now officially closed the acquisition; this is an important milestone and is fully in line with Trustly’s ambitious target to be the game-changing market leader in the UK,” Trustly group chief executive Johan Tjärnberg said. 

Ecospend chief commercial officer James Hickman added: “The UK is the largest digital payments market in Europe and represents a huge opportunity for us. We have seen an incredible appetite from both consumers and businesses to embrace open banking and the simple and secure payments that it enables. 

“Trustly and Ecospend will be able to excel in this space with the most comprehensive and compelling solution on the market.”

In February last year, Trustly was fined SEK130m by Sweden’s financial supervisory authority Finansinspektionen for failing to comply with anti-money laundering regulations in the country.

An investigation led by Finansinspektionen found that Trustly had not complied with the authority’s regulations or Sweden’s Money Laundering and Terrorist Financing Prevention Act (Anti-Money Laundering Act).

Shortcomings were identified in the areas of risk assessment, procedures and guidelines, customer due diligence and monitoring and reporting.

In its preliminary report for the fourth quarter of the year to 31 December 2022, Japan-headquartered Universal said TRLEI posted total revenue for 2022 of PHP37.20bn ($681.7m/€627.3m/£551.3m) in 2022, which was up 88.8% on 2021 and down 12.2% on the pre-Covid 2019.

Gross gaming revenue (GGR) of PHP34.3bn was almost double the PHP18.9bn reported in 2021 when Covid restrictions in the region continued to bite.

The 2022 figure was down 13.8% compared to 2019, the most recent year before the introduction of restrictions.

The Philippines eased Covid restrictions towards the end of 2021 but casinos were closed again at the start of 2022 over fears of increasing cases. The country’s borders reopened in February, although restrictions remained on visitors from China.

For the three months to 31 December 2022, the TRLEI saw GGR of PHP10.5bn compared to PHP7.0bn a year ago.

Within gaming, VIP table games’ GGR of PHP13.3bn was up 38.8% on 2021 but down 32.8% compared to 2019. Mass table gaming, which also includes online, totalled PHP9.3bn and was just lower than the 2019 figure, while gaming machine takings of PHP11.7bn were 13.2% up on 2019.  

Other revenue, including hotel, food and beverage, retail and entertainment, totalled PHP2.9bn in 2022, which was up more than 250% year-on-year and a 10.6% rise on 2019. The PHP1.1bn recorded in Q4 was more than double the figure reported for the same period a year ago.

Hotel occupancy was at 82.1% during 2022, compared to 75.4% in 2021 and 98.1% in 2019. The figure in Q4 2022 was 84.2%.

Adjusted segment EBITDA of 8,611 in 2022 was up 263.0% compared to 2021 and up 25.2% on 2019.

In September 2022, Universal reclaimed control of its Okada Manila integrated resort property after a stand-off with the the company’s former CEO and founder, Kazuo Okada.

Under the terms of the multi-year agreement, the two sides will collaborate on creating new content and fan experiences with current and retired NFL players.

The partnership will also provide hospitality benefits to NFL players, with MGM Resorts’ properties serving as the host location for a variety of NFL player-related events.

The NFLPA and MGM Resorts will work together to create opportunities for guests to engage with players and NFL alumni throughout the football season at Mandalay Bay’s Fan District in Las Vegas. Opportunities will also be presented around the 2023 NFL Pro Bowl Games and Super Bowl LVIII in Las Vegas as well as the 2024 NFL Draft in Detroit.

“Partnering with the NFLPA is another indication of our strong commitment to the great sport of football across the US,” said Lance Evans, senior vice-president of sports and sponsorships at MGM Resorts. “As football’s premier events come to Las Vegas, we look forward to welcoming players and creating world-class experiences for MGM Rewards members.”

The two parties added that active NFL players and NFL alumni will be eligible to enter into individual ambassador agreements to promote MGM Resorts through appearances, social media posts, autographed memorabilia and advertisements. 

Gina Scott, vice-president of partner services at NFLPA, said: “NFL players, past and present, will be at the heart of unforgettable new experiences through MGM Resorts International’s rewards program. We are excited about collaborating on world-class fan events designed to produce incredible benefits for MGM Rewards members and value for our players.”

According to figures from Lithuania’s Gambling Supervision Service, the European nation generated gross gaming revenue of €195.8m during the year to 31 December 2022. That total is up 43.8% on 2021 and almost twice the €99.4m it was worth as recently as 2018.

Remote gambling made up 62% of the total, with the €121.7m up 18.6% year-on-year. Some 38% of that total was €74.9m from online Category A slot machine games, with remote betting the second biggest segment, worth €34.9m.

The four land-based categories each doubled the previous year’s GGR total, with gaming tables and category A machines achieving record results. Category B machines was the second largest segment, with €32.4m generated, up 118.9% on 2021 as Covid restrictions eased, although this figure was still slightly less than pre-pandemic figures.

Land-based betting is also still slightly down on pre-Covid years, although the €9.9m generated in 2022 was well up on the €4.0m of 2021.

The report said the average spend on gambling among Lithuanian adults was €85, which was up 44.1% year-on-year and just short of twice the figure reported for 2018.

The Gambling Supervision Service, which works under Lithuania’s Ministry of Finance, said there are currently 39 gambling licensees. During 2022, it received 81 complaints, which was well up on the 45 from 2021. Fines for operators totalled €114,644, which was up 175% year-on-year.

By the end of 2022, there are now 1145 blocked domains in Lithuania, which is up on the 904 from 2021 and almost double the 647 from 2020.

Some 11,388 Lithuanians have requested to be excluded from gambling, of which 89 are men and 88% adults under 40 years old. That total is up 52.1% compared to 2021.

The Gambling Supervision Service said its plans for 2023 include a risk assessment of business entities, particularly in relation to money laundering and terrorist financing.

Last year, Lithuania’s Gambling Supervision Service amended the country’s Code of Administrative Offences (ANK) after it discovered a loophole that prohibited the confiscation of income generated by illegal acts, such as unlicensed gambling.

Since the easing of lockdown and other pandemic-relate measures, Rank said Britain has faced a huge increase in energy costs, high wage inflation, slow return of overseas visitors to London and increasing pressure on consumer’s discretionary income.

The Grosvenor Casinos and Mecca Bingo operator said while its trading across the Christmas and New Year period was strong, and this continued into the first three weeks of January 2023, the cost-of-living pressures are likely to continue to have an effect on British retail customers in the months ahead.

This, tied in with continued tightening of the regulatory environment, particularly in regard to affordability restrictions on customers, will likely mean a challenging period for Rank and other operators in the land-based sector, with Rank having already warned it will cut costs.

“The recovery from the severe impact of the pandemic on our UK venues businesses – Grosvenor and Mecca – has certainly been slower than we anticipated,” Rank chief executive John O’Reilly said.

“We experienced strong trading over the Christmas and New Year holiday period but recognise that the trading environment is likely to be challenging in the months ahead and cost pressures will continue to weigh heavily on the UK hospitality sector. 

“However, trading is improving as we invest in the quality of our products and properties, introduce new gaming concepts for our customers, reduce the level of intrusion in managing customer risk and reintroduce lapsed customers to the fun and excitement of our gaming experience.”

Looking at Rank’s performance in the six months to 31 December 2022, revenue during the first half of the operator’s 2022-23 financial year was £338.9m (€385.0m/$420.3m), up 1.6% year-on-year.

Grosvenor venues contributed £153.4m to the revenue total, 4.8% lower than the previous year, primarily due to the slower-than-expected return of visitors to London following the pandemic and tightening of affordability restrictions on higher end customers.

While revenue from Mecca venues increased 4.1% year-on-year to £65.5m, Rank warned that the rate of customer volume growth has slowed since before the pandemic. Customer visits were 4.0% higher year-on-year, though Rank noted a decline in visits from its older cohort of players.

Revenue from Rank’s Enracha venues in Spain jumped 25.5% to £17.7m as the retail sector in the country continued a stronger recovery from the pandemic. However, while customer visits were 16.0% higher year-on-year, this was still 14.0% lower than pre-pandemic levels.

Turning to digital, revenue here was 9.5% higher at £100.8m, with Rank describing this as a “strong” performance for this area of the business. Mecca digital revenue was £36.1m, Grosvenor £27.8m and Enracha/Yo £11.6m, while Stride legacy brands contributed £25.3m.

Looking at spending and cost of sales stood at £303.8m, some 61.9% ahead of 2021-22, while operating costs climbed 10.7% to £136.4m and financial costs totalled £6.1m. 

As such, loss before tax was £107.1m, compared to a £101.5m profit at the same point in the previous financial year.

After taking into account a positive tax impact of £5.9m, this left a total net loss of £101.2m for the half, a stark contrast to the £84.0m profit posted in H1 of 2021-22.

“Given the challenges we have faced, I am very grateful to my colleagues across the group for their commitment to their customers and to the local communities they serve and for the progress we continue to make in the ongoing transformation of Rank,” O’Reilly said.