Total market revenue was ahead of $1.11bn in February 2022 but 2.4% behind the $1.27bn reported by the Nevada Gaming Control Board (NGCB) in January of this year.
Slots generated the majority of gambling revenue for the month, with the $822.8m posted in February being 7.6% ahead of the same month last year. Multi-denomination slots drew $456.6m in revenue and penny slots $265.4m.
Beshear, a Democrat, has stated his intention to sign the bill, meaning that the outlook looks optimistic for legalized sports betting in Kentucky.
Lawmakers approved the legislation 26-12, with a 23 vote threshold for passage. The two-thirds majority requirement is a result of state rules regarding revenue generating laws being passed in a session not devoted to the budget.
“After years of urging lawmakers to legalise sports betting, we finally did it! Today’s result shows that hard work pays off,” said Beshear on twitter. “Kentuckians will soon be able to place their bets here, and for the first time, we are going to keep those dollars to support our roads and bridges, schools and communities.”
This was also 25.8% higher than in January 2023.
The Welfare Lottery generated CNY13.58bn of the total, a rise of 44.2% year-on-year and up 25.2% compared to the previous month.
Lottery sales made up CNY7.65bn of this total, a rise of 46.9% yearly, while instant games revenue was CNY3.60bn, 32.3% higher than in February 2022. Keno generated CNY2.26bn in revenue, falling by 16.8% yearly.
Sports Lottery revenue also grew sharply. The revenue of CNY28.27bn was a rise of 115.9% compared to February 2022, and 26.3% higher than in January.
This total consisted of CNY5.65bn in from lottery, as well as CNY19.50bn in sports wagering.
Instant games generated CNY3.11bn in revenue, down 9% month-on-month. Video lottery revenue remained at CNY1m, up from a total of zero in January, but down from CNY11m in February 2022.
Previous to joining GeoComply, Jelezniakov worked at a number of blue chip US corporations including Google, Amazon and the New York Times. During his career, he has worked within product development, specialising in developing and managing scalable technology platforms.
In his new role, Jelezniakov will oversee the business’s overall technology strategy, directing the development of new products and services.
“We are thrilled to have Vadim join our team,” said GeoComply co-founder and CEO Anna Sainsbury. “With his impressive track record of innovation and leadership in the technology industry, I am very confident that he will help us continue to grow and stay ahead of the competition.”
“I am so excited to join GeoComply and work with such a talented and dedicated, industry-leading team,” said Jelezniakov. “My goal is to help drive innovation and growth in new and existing market verticals by leveraging new technologies and developing products and services that meet the evolving needs of our customers.
“This truly is a once-in-a-lifetime opportunity to scale a market-leading company.”
The product – which is aimed at complimenting the business’s existing Software as a Service (SaaS) licensing model – will allow technically capable clients to modify or build up the supplier’s existing application.
The provider said that that it hopes to give operators more options in managing their platforms by allowing them the option to supplement the software. GiG also said that this would provide the company with a new commercial model to augment its existing offering.
According to the supplier, Enterprise Solution will be an offering available only to businesses which have the requisite technical ability to integrate the services into their current systems. GiG said that it considers the product as a “powerful and bespoke” solution which will aim to serve the rising demand in the sector for increased technological and roadmap flexibility.
GiG said that it today (31 March) signed its first licensing agreement for the new product to an unnamed “successful industry group”.
The deal is structured to charge a significant up-front fee for licence, with subsequent fees added over the agreement’s term. The supplier added that the average yearly contract value is “materially above” current averages for company SaaS contracts.
GiG CEO Richard Brown outlined the business’s thinking when it came to the new product, and the market gap it is looking to fill.
“We have long held the view that for some operators, who have the technical ability and experience, a model that would open up our platform and technology to them would create further collaborative improvement of the product and ultimately enhance the customer experience,” he said.
“We have seen increasing demand for operators to gain that flexibility, and with a recent development of our next generation platform, which has been developed with this structure in mind, we are able to offer this service in a controlled, supported and sustainable manner.
“Ultimately our new GiG Enterprise product provides a solution that many operators crave for and we do not think is being offered fully by the industry as of today.”
XLMedia launched in a number of additional states during the past 12 months following the legalisation of online gambling, including in New York, which opened its regulated internet sports wagering market in January 2022.
The group also launched in Maryland later in 2022, while after the year-end, XLMedia went live with its affiliate offering in Ohio to coincide with the market’s opening on 1 January. Plans are also in place to launch in Massachusetts following the roll out of legal online sports betting earlier this month.
This growth, XLMedia said, offset declines in Europe, with chief executive David King saying its Europe business continues to build back following the recent restructure.
The group in December revealed it had held talks with various parties regarding the potential sale of its personal finance division as part of this process, with the aim of switching its focus to on growing in North America.
“We made good progress in 2022, having re-engineered the business to become one of the leading sports betting affiliates in North America and our US business is expected to continue to evolve at a rapid pace as the market starts to migrate from up front acquisition payment to revenue share agreements,” King said.
“However, our mix of media and betting brands, both owned and partnered, are well placed in that environment to build sustainable revenues. Within our European sports and gaming operations, our teams continue to build back our business following the recent restructure.”
Looking at the full year results, revenue from continuing operations for the 12 months to 31 December 2022 amounted to $71.8m (£58.3m/€66.2m), up from $57.8m in 2021 and in line with forecasts published in January this year.
Core revenue, which was revenue excluding discontinued personal finance activities, affiliate network revenue and external agency revenue, also increased 27.5% to $54.6m.
Breaking down this performance, $48.3m of continuing operations core revenue came from cost-per-acquisition, while $18.5m was attributed to revenue share agreements and $2.8m fixed.
In terms of category, XLMedia said $54.0m of all revenue in 2022 was generated by sports betting, up 72.0% year-on-year. In contrast, casino revenue stood at $15.6m, which was 32.8% lower than in the previous year.
XLMedia also published a breakdown of geographical performance to demonstrate growth in North America. Revenue from North America sports betting operations reached $46.4m and gaming $1.3m, while European sports wagering revenue was $7.6m and casino $14.3m.
Turning to costs, operating expenses were down slightly to $36.6m, but sales and marketing spend jumped 80.3% to $22.7m, while deprecation and amortisation edged up to $7.3m.
When also including $1.8m worth of finance costs, this left a pre-tax profit of $4.0m, up 233.3% year-on-year. XLMedia paid $1.6m in tax, resulting in a net profit of $2.4m, down 14.3% on 2021 after the group benefited from an income tax benefit in the previous year, while adjusted EBITDA climbed 17.9% to $17.8m.
XLMedia also published results for its discontinued operations, which generated a pre-tax loss of $11.8m, in contrast to a $2.8m in the previous year. Net loss from these activities amounted to $9.8m.
“2022 has been an important year for refocusing the business and I’m pleased with the progress we have made,” King said. “Whilst still early into the new year, I’m confident XLMedia is in a stronger position as a result of the actions we took and I look forward to updating on our continued progress in 2023.”
Under the deal, unikrn will benefit from a presence across Blast’s event coverage and promotions including fan-led activations, social giveaways and broadcast integration.
The agreement will also include branding on the Blast Premier tournament series and the upcoming Blast.tv Paris Major. Blast events are broadcast in over 150 territories and in 25 different languages.
“Blast is an epicentre of action for esports fans around the world and has produced some of the most memorable moments in the history of competitive Counter-Strike play,” Entain esports managing director Justin Dellario said.
“unikrn is built for these moments, when fans are looking for the deepest and best possible experience as they root on their favourite players and teams. We are thrilled to be Blast’s partner, and to bring our world-class insights and betting opportunities to its millions of fans.”
Entain relaunched unikrn in December last year after acquiring the brand in October. The site is live in Brazil and in Canadian provinces other than Ontario, with Entain planning to launch the brand in other refulated markets this year.
Butera, an entertainment and hospitality executive with more than two decades of executive gaming experience, will lead the SIG business and be responsible for forming partnerships and ventures that leverage SIG’s Daily Racing Form content and brand.
He will also oversee the expansion of AI’s advance-deposit and sports wagering capabilities.
Egnor will assume responsibility for strengthening AI’s digital performance marketing capabilities across its business units including casino, Daily Racing Form, and DRF Bets.
An experienced industry executive, Egnor previously held senior roles with San Manuel Casino and Resorts Worlds Casino New York City.
Both Butera and Egnor will assume their new positions at Affinity Interactive with effect from 1 April.
“Affinity Interactive is thrilled to welcome Scott and Brad to our leadership team, and we are certain that they will be valuable additions in helping us create deeper customer engagement and further captivate diverse audiences,” said Andrei Scrivens, who was appointed chief executive of Affinity Interactive in November last year.
“As AI continues to lead the way in meeting the growing demand for online gaming products and omni-channel casinos, Scott and Brad bring relevant skills, networks and experiences that will inform our business strategy.
“We look forward to taking AI’s digital marketing performance to the next level and providing customers with a truly exceptional gaming experience.”
Under the arrangement, 12Bet customers will have access to a range of sportsbook services from Betradar including betting options on the Indian Premier League (IPL) cricket competition.
12Bet will also work with Betradar to run a number of special promotions for the IPL, with users having the opportunity to win a range of prizes.
Licensed and regulated by the Philippine Amusement and Gaming Corporation (Pagcor), 12Bet also offers online casino, keno, lottery and other igaming options. The operator celebrates its 15th anniversary this year.
“We are thrilled to announce our partnership with Betradar as our new sportsbook provider. Our aim has always been to provide the best possible experience to our beloved members,” a 12Bet spokesperson said. “With Betradar’s expertise, we have enhanced our offerings and are positive to provide an unparalleled experience to end-users.
“We are excited to celebrate our 15th anniversary and have loads of offers ongoing, especially for the IPL.”
Gaming companies are modernising their diversity and inclusion practices to fall in line with public trends and to foster an environment where anyone – regardless of gender, race or ability – can succeed. But how can the industry make the most of D&I programmes and embed them to spark meaningful change?
The first step is to establish well-meaning goals.
It’s a point that Laura Da Silva, director at SG:certified – an organisation that provides sustainability, environmental and social certifications for the gaming industry – is keen to hammer home.
“D&I initiatives at gambling companies typically aim to increase diversity and inclusion within the company and to create a more inclusive culture for employees and partners,” she says. “Until now, a focus on gender diversity has perhaps been the most visible part of the D&I agenda for the gambling industry, especially following controversies at various shows.”
“The industry must also go beyond gender and understand the value of creating a welcoming, inclusive and high-performing work environment that learns from diverse backgrounds, experiences and voices.”
Diversity programmes must encompass all aspects of diversity, as Da Silva notes. It’s important to provide support for all underrepresented communities, especially in an industry that has historically been (and is currently) dominated by a white male demographic.
“As the industry welcomes more and more people from different backgrounds and cultures to its ranks it has never been more important to implement D&I initiatives,” says Ani Akimyan, head of HR at igaming solution provider Technamin. “Companies need to value all employees no matter their socio-economic backgrounds, working experiences, race, religion, disabilities, sex or orientation.”
Technamin strives to do exactly that because its business employs a global workforce with various worldviews.
“Companies should have diversity policies which are effective internally and reflect our values externally,” Akimyan continues. “Diversity is also about fairness and that includes job safety and transparency. D&I initiatives can also boost innovation in the workplace by being open to different ways of thinking and solutions.”
Christina Thakor-Rankin, principal consultant at 1710 Gaming Ltd and board advisory co-founder at All-In Diversity Project, notes that the shape and execution of a company’s diversity programme is informed by that company’s definition of diversity and reasons for change.
“Some companies may be focused specifically on gender diversity and increasing the numbers of women, especially at more senior levels, whereas others are more focused on the wider definition of diversity and increasing levels of employees from all underrepresented groups,” she says. “Any initiatives will be reflective of this and include anything and everything, from changing how and where they recruit, development of existing employees through targeted learning and training, apprenticeship schemes, employee resource groups, partnerships with D&I organisations, to quota systems and targets.”
Any and all of these reasons are noble ones, though according to Thakor-Rankin not all companies go about implementing D&I with the right attitude.
“There are also a handful of companies embracing D&I because it’s on trend or everyone else is, but without really understanding what it is or what it involves. This is dangerous. We live in a world where social media rules, and it is only a matter of time before they are called out and/or found out.”
To better understand one company’s overarching perspective on D&I, and the programmes it runs, we spoke to Penn Entertainment’s Justin Carter.
Carter is Penn Entertainment’s SVP of regional operations, where he covers Louisiana and Mississippi. He also heads up the company’s Diversity Committee, which drives Penn’s D&I strategy.
Penn’s Diversity Committee, formed in 2020, runs various programmes aimed at building community and increasing diversity both within its business and outside of it. Its first ever programme was the Diversity Scholarship.
“It’s aimed at equity in education,” Carter says. “So it’s not necessarily aimed at ethnic diversity, even though ethnic diversity is definitely captured to a large degree. And the programme is really aimed at diversity – whether it be social, economic, or ethnic – and providing opportunities for our team members, kids who may not necessarily have an opportunity to fund their education. So we dedicated a million a year to that programme.”
During the programme’s first year, 57% of scholarship recipients were first-generation college students. Years two and three? 58%.
“It shocks me every year,” Carter says. “It’s changing the lives of families and providing opportunities they haven’t had before.”
Penn surprises scholarship recipients, calling them into the office under the auspices of some logistical detail – missing a line on the application, or confirming some personal info, for example.
“You have one of our employees, the recipient’s mom, who has worked security for us for 20-plus years. She finds out her daughter won the scholarship. We have a band come in, streamers, balloons, and the tears start flowing. These people tell you what it means for them, and it’s impactful.”
Celebrating diversity – literally – is part of Penn’s playbook.
The company also runs a leadership development programme called Emerging Leaders.
“This programme is aimed at frontline workers,” Carter says. “If you have aspirations of going into management, the eight-week course provides you all the tools you need to have the best shot at possibly getting that type of job.”
It’s a hard sell when a job requires experience but the candidate doesn’t have any. Emerging Leaders helps fill that gap.
“We help put people in a position to land those first management jobs with skills like interviewing, conflict resolution, paperwork, finance and more,” Carter says.
Since the Diversity Committee began, Penn has seen great progress.
“We’ve helped more than 100 students with our scholarship programme,” he continues. “We have partnered with six HBCUs [historically black colleges and universities], dedicating over $4m to them and forming long-term relationships to drive STEM [science, technology, engineering and maths] and create new opportunities for their students.”
The Diversity Scholarship dedicates $1m per year in tuition scholarships to children of Penn employees. Meanwhile, the HBCU STEM scholarship programme has committed $4m over five years to establish scholarships in science, technology, engineering and maths fields. Penn also has internship opportunities for these students across its organisation.
Carter says D&I programmes like the ones at Penn go a long way to creating a positive corporate culture.
Penn also created Women Leading at Penn to help women pursue leadership roles within the company. It offers mentorship and cohort programmes to help diverse team members thrive.
“We’re active in the communities, and we’re driving change in the community and making a difference for our people,” Carter says. “That’s what creates connectivity with the company, and being able to provide scholarships [and] provide a true path for you to grow your career at Penn, those are the things that we’re proud of.”
“That’s what really makes a difference and that’s why it’s important to have these things in place. It’s really about creating a culture that is inclusive, fair and gives everybody a shot.”
As for the future, Carter says: “We won’t stop until we are unequivocally the best in our industry, best in class at D&I, for sure.”
