Month: March 2023

The NFL-themed virtual sports games will allow fans to bet on teams as they compete in simulated games. Aristocrat said that users will be able to wager with many of the options that they are already familiar with including money line bets, over/under total score and total touchdowns.

According to the business, the virtual sports games with include NFL imagery such as the NFL shied, the logos of all 32 teams, heritage team marks, AFC and NFC Conference logos, as well as the Super Bowl logo.

 “Through Inspired, this NFL license expansion into virtual sports presents a ground-breaking entertainment option that’s never been done before,” said Aristocrat CEO Hector Fernandez. “As part of our overall NFL strategy, we are thrilled to tap into the global appeal the NFL offers to current and new fans and casino, sports betting, and lottery players.”

The multi-year licensing agreement – first announce in November 2021 – gave Aristocrat exclusive rights to produce land-based slot machine games, as well as virtual sports.

Inspired CEO and president Brooks Pierce said the company was “delighted” to be working with both Aristocrat and the NFL on this project.

“We look forward to launching this partnership and reaching millions of NFL fans with exciting entertainment options both online and in retail.”

The group announced details of the restructure towards the end of Q4 following a strategic review, with the aim of expanding its focus into a wider range of markets.

The review concluded that shareholders’ interests would be best served by restructuring the existing esports business and widening focus to include a broader array of entertainment and gaming products and services, as opposed to seeking a single business combination transaction.

In addition, the business rebranded as Allied Gaming & Entertainment, with group taking on the new name from 1 December.

While the initiative came too late in the quarter to have any impact on Allied’s performance in Q4 or the full year, chief executive Yinghua Chen said the restructure would support its growth plans in 2023 and beyond.

“Moving forward, we are confident that building upon Allied’s original focus of live events and multi-platform content, while also adding new revenue drivers such as live virtual entertainment events and online gaming tournaments, will result in future positive financial results,” Chen said.

Fourth quarter

Looking first at Allied’s performance in the fourth quarter, revenue for the three months to 31 December was $1.2m, a 36.8% drop from $1.9m in the previous year. 

Allied put the drop in revenue down to the non-recurring nature of its 2021 live streaming partnership with Trovo. Almost all revenue came from in-person operations, with just $428 attributed to multi-platform content.

However, despite the fall in revenue, Allied was able to reduce its operating costs by 33.3% to $3.8m, leaving an operating loss of $2.6m, an improvement on $3.8m in 2021.

Allied noted $954,077 in other income, including $755,209 in interest income, which meant a pre-tax loss of $1.7m, compared to a $3.8m loss in the previous year.

The group did not pay any tax during Q4, meaning net loss also stood at $1.7m, in contrast to the $6.3m loss posted last year, though the 2021 figures were impacted by a $2.6m loss on the sale of assets in the World Poker Tour (WPT) in July 2021. Allied sold its poker assets, including the WPT, to Element Partners for $105.0m.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter reached a loss of $1.7m, though this was an improvement on the $2.1m loss in 2021.

Full year

Turning to the full year and revenue was 28.0% higher year-on-year at $6.4m, helped by an increase in sponsorship revenue and revenue from live-events that took place at its HyperX Arena and within its Allied Esports Truck operations.

Of this revenue total, $6.1m came from in-person activities and $251,558 multi-platform content.

Operating costs and expenses were 12.6% down at $18.1m, which meant operating loss shortened from $15.8m in 2021 to $11.8m. After including $942,311 in other income, pre-tax loss was $10.8m, compared to $15.1m in the previous year.

Again, Allied did not pay any tax, meaning net loss also stood at $10.8m. This was in contrast to the $62.9m net profit posted at the end of 2021, though the previous year’s figures were impacted by the WPT sale, with this having resulted in a gain of $77.9m.

Allied also noted that adjusted EBITDA for the year reached a loss of $8.6m, though this was an improvement from $10.5m in 2021.

“We experienced positive momentum in 2022, with revenues up 28% over 2021, primarily driven by an increase in live events at our HyperX Arena in Las Vegas and our Allied Esports Truck along with sponsorship revenue from Season One of our original content series, Elevated,” Chen said. 

“In addition, during the fourth quarter we rebranded as Allied Gaming & Entertainment to better reflect our positioning as a global experiential entertainment company and also concluded our strategic review process.”

An investigation found Riley committed 15 breaches of the Tennis Anti-Corruption Program (TACP) between 2015 and 2020, and Kolar committed 25 breaches in the same time period.

The ITIA said Kolar and Riley collectively breached a series of TACP rules including contriving aspects of matches, wagering, facilitating wagering, courtsiding, conspiracy and failing to report corrupt approaches. 

As of 14 March, both players are provisionally suspended and prohibited from competing in or attending any sanctioned tennis events organised or recognised by the governing bodies of the sport.

The decision on sanctions for both players will follow in due course.

The ITIA said the provisional suspension was granted under section G.4.a of the TACP 2023, which allows for a suspension if a player is found liable of one or more of the charges.

ARO is the only Arabian Racing Authority in Britain, and operates with support of the British Horseracing Authority.

As part of the acquisition, ARO CEO Genny Haynes, racing operations manager Willie McFarland and ARO official photographer, media and PR Debbie Burt will remain in charge of delivering the published 2023 fixture list. The fixtures will cover a programme of Arabian races that will take place on British racecourses.

“We are delighted to confirm this deal with ARC, who have been fantastic supporters of ARO for a number of years, with the majority of our races run on ARC racecourses,” said Haynes. “ARO is now in a position to develop new commercial revenue streams, with the aim of developing the sport’s profile within the UK.”

“The future of our Arabian Group races is now secure, and our aim will be that these races host some of the world’s best Arabians, as well as provide a springboard for our domestic horses to progress.”

Mark Spincer, director of ARC’s racing division, said that the company was “delighted” to have acquired ARO.

“As long term partners of ARO, we are delighted to take this step to help secure the future of the sport in Britain,” said Spincer. “Arabian races have sat alongside a number of our summer fixtures, and we look forward to working with Genny, Willie and Debbie to continue this and look for opportunities to grow the sport over the coming years.”

Rights agreement

Also this week, ARC entered into a four-year media and data rights agreement with ATR and Ascot Racecourse.

ARC said that elements of the deal will come into play from 1 April 2023 – including the distribution of images and data from Ascot Racecourse Fixtures by ARC, via betting shop channel The Racing Partnership, to retail betting facilities.

Currently, The Racing Partnership distributes live pictures and data from all ARC racecourses, as well as content from independent venues in the UK. From 1 April, these venues will include Newbury Racecourse.

“Alongside the recent addition of Newbury, we are delighted to welcome Ascot Racecourse to The Racing Partnership with this agreement,” said Martin Cruddace, CEO of ARC. “It goes without saying that their portfolio of top class fixtures across the year will be a huge asset to TRP and its customers.”

Earlier this month, ARC announced that its chairman David Thorpe is to step down from 30 April.

In 2022, the Malta-based gaming business reported consolidated revenue of PLN579m (£108.5m/ €123.5m/ $132.5m), a 16.3% increase from the PLN 498 the company achieved in 2021. On this revenue, STS recorded a 29% rise in net profit – increasing from PLN 131m to PLN 169m.

Adjusted earnings before interest, tax, depreciation or amortisation (EBITDA) grew PLN273m – a 26% increase. The EBIDTA margin stood at 41.2% in 2022, compared to the 28.2% the company achieved the previous year.

The total staked on STS gaming products rose 4.2% between 2021 to 2022 from PLN4.49bn to PLN4.68bn. Despite the relatively modest increase, the number of active users grew 13.0% from 693,000 to 783,000. The company reported 439,000 new registrations and 317,000 new first deposits. The business said that “all operational data is at historical highs.”

“A very good year is behind us – we generated the highest operating results in the group’s history, which translated into extremely satisfactory financial results,” said Juroszek. “We will soon make a decision regarding the payment of dividends.

“In accordance with the applicable policy, we will pay 100% of the profit of STS Holding S.A. to the shareholders. Due to the structure of the group, we will make two payments, as was the case last year.”

Market exits

The operator said that its 2022 financial results indicate the “extremely high attractiveness” of the Polish gaming market. The business said that it is planning a wholescale reorganisation of its operations in 2023.

This effort – aimed at increasingly profitability – will mean that the company will withdraw from the UK and Estonian markets to more full concentrate on Poland, which makes up the bulk of STS’s revenue.

“The plan for the current year is to focus on a number of efficiencies,” said STS president Mateusz Juroszek. “We will focus on Poland to increase profitability and fully exploit the potential of the dynamic market. We will also implement savings and improve our product. We assume that turnover, NGR as well as EBITDA will be higher this year than last.”

Fourth quarter results

In the businesses fourth quarter results, the company highlighted the its PLN167m in revenue, a 43% year-on-year increase compared to the same period the previous year. The three-month period ending 31 December also saw a 290% year-on-year increase in net profit, at PLN58m. Adjusted EBIDTA for the quarter was PLN83m, a 122% rise from the previous period.

The total amount staked by STS customers was PLN1.38bn in Q4, as opposed to the PLN1.22bn the company reported the previous year. In terms of non-financial metrics, this amounted to 542,00 active customers, 202,000 new registrations and 154,000 fist time deposits.

In response to the regulatory action, the business said it accepted that certain systems and processes that were in place in 2020 and 2021 were not “in line with the Commission’s expectations around affordability.”  

The operator also said that it acknowledged and appreciated the Commission’s recognition that the company’s UK operations are in an improved position since the investigation too place, and that it remains suitable to hold a licence.

“While we accept the outcome, and the acknowledgment that we have already taken significant steps to strengthen our processes, we also recognise that we need to work even harder to ensure a safe and compliant business,” Kindred chief executive Henrik Tjärnström said.

“We appreciate the Commission’s clear recognition that our operations are in an improving position and that we remain fit to hold an operating licence,” he added. “Our commitment to reducing gambling harm across our platforms is a key part of our journey towards zero ambition – and we are redoubling our efforts to ensure we continue that progress.”

The business said that – as a result of the actions taken – that it was unlikely for similar cases of shortcomings as highlighted by the regulator to happen today. It added that it had hired additional staff in its UK compliance and risk management teams, as well as continued to make ongoing process improvements.

Self-regulating features

New features include the imposition of compulsory limits tailored to an individual consumer’s risk profile, including a more focused approach to players under the age of 25. The new “robust affordability framework” also means that the business implements a full registration block for players who show signs of “significant financial pressure.”

The company also said that it voluntarily imposes stake limits on specific products based on a person’s risk profile, with customers deemed to be a lower affordability bracket not permitted to stake at the higher levels.   

Additionally, Kindred said that it continued the roll-out of automated interventions to improve the reaction speed to players showing characteristics typical of an escalating risk profile.  

In the months ahead, the operator said that it was its “firm ambition” to continue to leverage this work by integrating technical and data advancements in its responsible gaming framework.

Since the implementation of the business’s safer gambling features, the business said that it had seen a reduction in the amount of revenue generated by high-risk individuals. Kindred said that from Q1 2020 to Q4 2022, there was a 57% decrease in such revenue in the UK.

The company added that 87% of the interventions made resulted in healthier consumer behaviour. Currently, more than 50% of UK players now voluntarily use at least one responsible gaming tool.

Fines amounted to $60,000 and were handed to the Mountainview Thoroughbred Racing Association, operator of Hollywood Casino at Penn National Race Course; Downs Racing, operator of Mohegan Pennsylvania casino and its igaming partner Unibet Interactive; and online casino solutions provider Evolution.

Mountainview was fined $45,000 for allowing five individuals who were enrolled in the PGCB’s igaming self-exclusion program to access and gamble on its online Barstool Sportsbook.

Read the full story on iGB North America.

The Casino.exe website will offer player an initial eight casino games, while plans are also in place to roll out a mobile app in Ontario in the near future.

Rivalry, which is based in Toronto and holds an internet gaming registration in the province, launched its first third-party casino game last summer and has gradually enhanced its offering since, launching a proprietary platform to house a number of games.

Read the full story on iGB North America.

Oren Cohen Shwartz, chief executive officer, talks to iGB about the power of harnessing personalisation in the igaming industry and how he sees it as a gamechanger for Delasport with the new release of My Sportsbook.

This was a significant rise of 81.8% compared to the GGR of €350.2m generated in Partouche’s 2020-2021 financial year.

Slot machines generated the highest GGR for Partouche during the year, coming in at €500m – more than double the year-on-year figure of €224.6m.

Partouche’s non-electronic games accounted for €68.2m of the total GGR, an uptick from €61.4m in the previous financial year, while GGR from electronic games grew significantly by 131.8% to €68.4m.

No GGR was recorded for sports betting during the year.

Consolidated revenue

After Partouche paid gambling levies at €331.1m – a further increase from €134.2m in 20/21 – the net revenue for the year was €305.5m, an increase of 41.5%.

A total of €86.1m in revenue – excluding net gaming revenue – coupled with a loss of €2.8m in costs associated with its loyalty programme, brought Partouche’s total consolidated revenue to €388.8m – a rise of 52% from €255.7m recorded in 2021.

The consolidated revenue was also up on the total in 2020, which was €343.5m. However, it was still a considerable decline on pre-pandemic revenue of €410.8m in 2019.

Of this total turnover, €352.4m came from casino operations. This was up by 69.6% year-on-year. Hotels accounted for €27.9m of the total turnover, while €43.4m came from other operations.

Operating income

The turnover was affected by a multitude of costs. The highest of these were staff costs, which totaled at €168.0m – up by 61.2% yearly.

Purchases and external charges fell, by 6.9% to €122.0m. The third highest cost for the year came from depreciation and impairment of fixed assets, at €51.5m – up by 4.7%.

The remaining costs were made up of dues and taxes and other current operating expenses.

This brought the current operating income to €23.1m for the year, a rise of €69.5m.

Other non-current operating incomes at €3.5m, coupled with the result of sale of consolidated holdings at €14.1m, brought the total operating income to €40.7m, up by 86.2% yearly.

Financial costs of €2.3m brought the pre-tax profit to €38.4m, up by €87.7m.

After considering income taxes at €500,000, value added tax at €1.7m and adjustment due to equity accounting at €100,000, the total net income for the year was €37.1m. This was an increase of €93.0m year-on-year.