Betting handle for the month amounted to $3.5m, which was 32.7% lower than $5.2m in the same month last year and 14.6% behind the $4.1m wagered in February this year. This was also the lowest monthly total since August 2022.
However, sports wagering revenue was $544,385, only marginally lower than $553,465 in March 2022 and 77.6% higher than $306,573 in February.
The partnership will focus on responsible gambling policy and preventing gambling harm.
Specifically, Doura-Schawohl Consulting will bring a perspective on safer gambling policies in the US, while Mindway AI will integrate its knowledge of neuroscience, AI and psychology into the partnership.
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Game Type:Video SlotGo Live Date (expected):30/05/2023Game special features:Free Spins, Multiplier Wild, Countdown Wild, WildEnergy, RespinsNumber of paylines:243 waysNumber of reels:5×3RTP% (recorded/theoretical):96.1%, 94.1%, 90.5%, 86.0%Variance/volatility:Super HighNumber of symbols to trigger feature/bonus?:3+Can feature be retriggered?:YesNumber of free spins awarded?:10 for 3 scattersStacked or expanding wilds in normal play?:NoStacked or expanding wilds in feature play?:NoNumber of jackpot tiers?:–Auto-play function?:Yes, except for markets where it’s banned
After MGM’s acquisition of LeoVegas last year, LeoVegas – which is now part of MGM – has announced the acquisition of Push Gaming for a rumoured $150m (£119.7m/€135.8m).
Clearly this latest purchase was part of a bigger content strategy all along. Once you reach a certain size, it seems, the metrics of in-house content creation make more sense.
And it looks as though 12 years of hard work are finally paying off for the founders of Push Gaming, which is especially good news for the creative arm of our industry.
The relentless pace of game output and new studio launches has meant less shelf space per studio and per operator. There has also been an increasing number of games per operator, and thus real margin pressures. Only a couple of weeks ago we witnessed the high profile closures of Funfair Games and Green Jade Games.
So how do the numbers stack up, and what is this acquisitive operator looking to achieve when buying up the value chain?
First up is an overview of the target company. With a UK base, licence and workforce, Push Gaming is neither a small nor cheap operation.
Whilst they once outsourced some game production components to the likes of Yarki or Ace Gaming and ported some land-based titles from Magic Dreams, they are now focussed on the in-house creation of higher quality titles. Even their acquisition of platform provider GSI in 2020 didn’t distract them from their studio-first ambitions.
They now have nearly 50 games live across 450 sites and, whilst we don’t know the numbers of sites that are direct integration partners, the studio distributes content via 47 aggregators.
Target company namePush GamingTarget Company TypeStudioAcquirerLeoVegas (MGM)Acquirer TypeOperatorFounded2010LicencesMalta, Ontario, Romania, UKBaseUKStaff127Aggregator/Platform partners37Games shown on Push Gaming’s site30Games found across operator sites 202347Operators featuring their live games459
The output of games is less than the average of one per month. But the company has focussed on quality and, as a result, the games do perform better than those from the average studio.
The table below compares Push Gaming to the average studio across metrics such as game distribution (the number of live sites and live URLs where content is found), average position on page and the average number of games, split down further by all sites versus Tier 1 and 2 operators.
Site distribution and positions on pageAll operators Push GamingTier 1 and 2 operator groups Push GamingAll operators All studio gpsTier 1 and 2 operator groups All studio gpsOperator sites featuring games45927712084Number of URLs featuring their games1332825290258Average position on page with 1 being at top493421849763Average number of games on sites47465652
Overall, Push Gaming is well above average in terms of numbers of sites and URLs where games are found, as well as position on page. However, things are slightly below average in game portfolio and output. They sit just outside the top 50 studio groups when measured in distribution terms or on page position, so they are not a major player – but not an insignificant one either.
Similarly, when the likes of Flutter or its subsidiaries acquired Core Gaming and Cayetano, or when Entain acquired CR Games, these weren’t the largest studios either.
The diagram below shows some suppliers that have been rolled up into operator groups over the years.
The next table gives a detailed view of game position and distribution data, comparing Push Gaming to the average studio group across a handful of Tier 1 or 2 operators.
In terms of game position, they perform well on operator groups such as Kindred, Videoslots, SkillonNet and Bally’s Corporation. In terms of share of total shelf space, they perform best on the likes of Cherry AB, Bally’s Corporation and, of course, MGM.
Large operator groupAverage page position of games Push GamingAverage page position of games All Studio Groups% vs averagePush share of total content across sites8881034638-62%Outside top 20Entain790509-55%Outside top 20Flutter161149-8%Outside top 20Rank682406-68%Outside top 20SkillOnNet38556231%Outside top 20Kindred182836%Outside top 20Betsson42578046%Outside top 20Cherry5447-15%Top 10MGM45186848%Top25Svenska Spel889810%Top20Videoslots12117531%Top20Bally’s2883138%Top20Average all sites49384942%Outside top 20Average T1 and T2 sites42176345%Outside top 20
The acquirer has picked up a supplier which ranks in its own top 25 studios in terms of content across site, and whose games outperform the average in terms of position on page.
Fair enough if the intention is to bring a portion of game content in-house, and there’s plenty of scope here for exclusive content and lower third party revenue shares. But how does it compare to similar operator-studio acquisitions in the past and what might we expect to see in the future?
The table below contrasts MGM with four top operator groups that have either acquired or created studios in-house. Most acquiring operators continue to allow their in-house studios to service competing operators, though often ensuring that games debut exclusively for a period in-house.
In this sense, it is likely that MGM will allow Push Gaming to continue to do the same too. After all, much of the touted $150m value of the company will be in its third party operator revenues.
More than anything, this table highlights quite clearly where the opportunity lies in bringing content creation in-house. Most studio groups reserve between 10% and 20% of game content for in-house studios. From a 1% start, MGM now has serious scope to do the same.
The diagram below paints a similar picture, but using one major operator group as an example. 888 Holdings dedicates 11% of all casino space to in-house game content, but 30% of prime real estate on site.
Without more detail on actual revenues and earn-outs, it is difficult to assess the touted $150m valuation.
However, the numbers above do show the true scale of the opportunity. If you were to overlay MGM casino revenues x 20% x average third party revenue shares of 10%, then that headline figure doesn’t look quite so lumpy.
The ability to dedicate up to 10%-20% of content – or yet more of the prime positions on page – to their new in-house studio will have an immediate impact on Push’s revenues and/or the cost of third party content for MGM. We look forward to revisiting the numbers post integration.
Egamingmonitor.com tracks the distribution of 47,000 games from 650 studios across 10,000 URLs of 2,400 operators globally, including positions of content on page. To access 50+ charts which include rankings and distribution of all game types including live, crash and table games across all subpages and to filter game performance by game theme, game feature or by operator type, get in touch.
Financial terms of the agreement were not disclosed, but LeoVegas said that the purchase of Push Gaming would be in line with its strategy to expand through investing in game content creation and distribution.
The group also said the acquisition would expand its activities into the slots content sector, as well as strengthen its content production capabilities.
Should the deal go through as expected, Push Gaming would remain an independent entity with its own management team, while all employees would be retained, and games would continue to be distributed via its own platform and remote gaming server.
In addition, co-founders Winston Lee and James Marshall would remain as chief operating officer and chief executive, respectively.
The transaction is subject to customary approvals and is expected to complete in the third quarter of 2023.
“I’m thrilled to welcome Push Gaming to our extended family,” LeoVegas Group chief executive Gustaf Hagman said. “The management team has been on a phenomenal journey, growing the company rapidly from a small start-up to a leader in its field.
“Push Gaming has an outstanding track record, proprietary tech, and fantastic intellectual property that will ensure we give customers the very best, cutting-edge entertainment.”
Push Gaming’s Marshall added “I’m incredibly proud of what we have achieved to date and this deal is a testament to the work that our team have put in, taking us from start-up to a leading supplier with some of the most recognised games in our industry.
“We have ambitious plans, and we can now supercharge our growth with the backing of LeoVegas and MGM. We look forward to scaling-up our development capabilities, entering new markets and taking our products to the next level.”
The acquisition would be the first major investment by LeoVegas since becoming part of MGM Resorts in November last year.
Speaking about the deal, MGM Resorts International Interactive president Gary Fritz said the acquisition would support the wider business within the digital gaming segment.
“The acquisition of Push Gaming by LeoVegas is consistent with our vision to expand MGM Resorts’ digital gaming presence internationally to grow our capabilities and products over the next several years,” Gary Fritz said.
“We are pleased to bring Push Gaming into our business as it brings a track record of developing games that are popular and have staying power in the industry as well as an exceptional management and operating team.”
With every technological development that improves the industry’s reputation and operative efforts, there are cybercriminals working day and night to find gaps to exploit financial data for personal gain.
Financial data is some of the most sought-after information here. Gaining access to a customer’s financial data goes far beyond simply using that information to make large purchases, or removing money from bank accounts unnoticed.
Personal financial details are sold in the murkiest corners of the internet, albeit cheaply, and can cause ongoing distress to the victim.
And as evidenced when a hack of DraftKings resulted in $300,000 being stolen from customers, and when “certain BetMGM patron records were obtained” when BetMGM was hacked last year, no one person – or operator – is exempt from the dangers of financial data theft.
Cutler says that recent breaches of financial security in the industry have created more awareness around the value of personal data.
“There have been breaches in the industry,” he says. “I think it serves as a valuable lesson of how sensitive the data is that these folks are sharing. Fraudsters will go to great lengths to try to access a player’s account.”
Although such breaches have not affected Paysafe’s operations, Cutler emphasises the rigorous security measures it has in place to prevent attacks of this nature.
“We have tons of security protocols,” he explains. “We’re regulated not only by the gaming regulators, but also the financial regulators.”
“We have money transmitter licences in just about every state in the US and to get all that, the security bar that we have to go through is extremely high. Because that bar is so high, the gaming industry benefits from that security bar through our product.”
Slader echoes the industry’s concerns, adding that GeoComply is providing meticulous protections from fraud attempts.
“I would say that there’s definitely lots of concern at the forefront of the minds of both regulators and consumers that are participating in online gaming operations,” she says.
“From the GeoComply perspective, we’re very much working with operators to support them with services that they can use to identify, mitigate and fight fraud and prevent these types of scenarios from occurring.”
She asserts that these anti-fraud services are crucial in the fight against data breaches. This not only applies to preventing the breaches from occurring in the first place, but also for assisting in criminal investigations if fraud attempts are successful.
“We work across the customer journey, from account creation and KYC all the way through to confirming a user’s location,” she explains. “Things like device fingerprinting, to understand the history of a user and their device, which lends itself to all different ways to identify fraud, track down fraud rings and support law enforcement in their own investigations with this type of information.”
Allen highlights that the industry as a whole is affected, more so now than ever, at a time when financial data security is under a microscope.
“The online gambling sector is one of the most attacked industries in the world,” he says. “Cybercriminals are launching complex and sophisticated attacks against businesses of all sizes, from power players to startup studios.
“The increase in attack frequency comes at a time when the global economic landscape is going through a period of change, with Russia’s war against Ukraine and the cost-of-living crisis sweeping across the globe a likely catalyst for the volume of attacks to rise further.”
While robust security measures are the best way to fight hacking attempts, Allen says that the human element must also be considered – or companies could suffer enormous cost.
“Of course, some attacks are able to breach a company’s systems, others are successful due to human error, and some even involve manipulating employees to be complicit in the attacks, such as is the case with social engineering attacks,” he explains. “In addition, there are actions that the operator can take, as well as the player – the most obvious example being, using different passwords for different sites. It’s a very simple action, but imperative.
“With the average cost of a data breach in 2022 hitting a record high of $4.3m, all businesses across the industry should be asking themselves ‘is my company and player data protected?’”
As an extra layer of protection, Cutler says that companies ought to be careful when it comes to who they partner with, or to whom they assign services.
“You do have to find a trusted partner that has been through it and has already reached the standard, and you should review your partner standards,” he continues. “What is your level of payment card industry (PCI) compliance? What does your security team look like? How is it staffed? What are the policies? All the things you can evaluate as an operator before you decide which vendor you want to go with.”
Naturally, those in the industry want to know the best ways to address attempts to steal sensitive financial data, and how to deal with the worst-case scenario of successful attempts.
Slader says that GeoComply provide an all-systems-go package for operators wanting to use their cybersecurity services – a system so robust that most operators are unable to provide it in-house.
“For GeoComply, we employ dozens and dozens of people that are literally on the hunt for all of these types of security threats,” says Slader. “That means that if you’re an online operator, you’re going to need to look for different vendors that can offer types of fraud and payment solutions that are specifically designed to address these types of risks.”
“Unless you have people that are full-time investigating what might be the next risk or the next type of breach, it’s really hard to create machine learning around how you might be able to prevent that in the future.”
Allen says that ensuring all defence tactics are secure is critical to establishing a safe environment for financial data – and will prevent the operator from falling into disrepute.
“The only way to keep up to speed with the changing threat landscape is to take a proactive approach to cybersecurity and deploy a multi-layered strategy for resilience,” he says. “There is no doubt the industry will continue to be under attack over the coming 12 months, so operators and suppliers must act now to ensure they have the necessary policies and protections in place.”
There is also a bigger price to pay, one that may not be as easily recouped as money: reputational damage.
“Those that don’t leave themselves incredibly vulnerable and, should an attack get through, will have to contend not only with the financial loss that results but also the reputational damage of having customers’ personal and financial data compromised,” says Allen.
There is no single way to completely protect financial data from being exploited. But stringent digital defense and personal accountability are the industry’s best defenses against financial data theft.
An experienced hospitality executive, Schoen will oversee all operational aspects of the new resort, Wynn’s inaugural development in the Middle East North Africa (MENA) region and its first beachfront destination.
Schoen joins after more than seven years with Marriott International’s Pine Cliffs Resort in the Algarve in Portugal, where he served as complex general manager.
Prior to this, he spent over seven years with Starwood Hotels & Resorts, including three-and-a-half years as area manager for Egypt and almost six years as area manager for Poland.
“We’re delighted to welcome Thomas to lead our operating team at this new venture,” Wynn Resorts chief executive Craig Billings said. “In his role, he will lead the delivery of the exceptional Wynn guest service for which we are so well known.
“Thomas’ passion for hospitality and extensive experience will be an important part of the success of Wynn Al Marjan Island.”
Schoen added: “I am delighted to lead the operations of Wynn Al Marjan Island and feel privileged to be part of such a significant new chapter for the group.
“The iconic destination will not only mark a new one-of-a-kind guest experience in the Emirates but will further establish the brand across the globe. I look forward to embarking on this exciting journey.”
Due to open in early 2027, the land-based venue will be built on the man-made Al Marjan Island in the city of Ras Al-Khaimah. The development is expected to cost Wynn $3.90bn (£3.12bn/€3.55bn)
The initial design for the project, which was unveiled last week, includes a gaming area, 1,500 hotel rooms, dining and lounge options, a spa and wellness centre, a high-end shopping esplanade, events centre, an on-site theatre and a range of other entertainment facilities.
The operator experienced increases within its Las Vegas Strip resorts, regional operations and MGM China businesses during the three months to March 31, while revenue from management and other operations also increased.
Chief executive Bill Hornbuckle praised the performance of the operator in Q1, adding that other recent developments will help drive future growth for the wider group.
For the three-month period ending 31 March, BetMakers recorded revenue of AU$23.6m (£12.7m/ €14.4m/ $15.8m), a 9% increase from the $21.6m the company achieved at the same time the previous year.
In the preceding quarters, the business “significantly” expanded its costs base, which BetMakers characterised as due to new investments made to “deliver on new contracts, technology and growth opportunities.”
Total operating costs for the period were $28.6m, meaning that the business made a $5m net loss from its operating activities for the period. Once the company factored in cash changes from BetMakers’ investments, the business saw a net negative cash flow of $4.9m.
As a result, the supplier saw its cash and cash equivalents decline from $61.0m to $56.2m during the three-month period.
Due to these continuing costs pressures, the business said it was committed to normalising its operating costs during Q3, with a goal of operational cash flow positivity by H2 FY23.
BetMakers’ product manufacturing costs stood at $9.1m for the quarter. This represented a 13% decline from the same period the same year.
The business said it had achieved this reduction through the “right-sizing of systems” and the increased use of cloud hosting environments.
Following a restructuring and a reduction in use of third party contractors, BetMakers said that it saw an 8% fall in staffing costs for the three-month period to $15.9m
Administrational and corporate costs also fell 25% to $2.8m, which the company ascribed to the lack of an annual insurance payment in Q3m as well as the business opting to reduce its use of third party advisors.
Overall, costs stood at 13% below those reported by the business in the same period the previous year.
“Progress was made during Q3 FY23 as evidence by the decline in operating cost outflows, although the company is continuing to review its cost base to extract operational inefficiencies,” said BetMakers.
“Management remains focused on reducing the company cost based to deliver sustainable positive cash flows, providing a secure base from which to continue growth.”
The news follows January’s announcement that the company would be restructuring its senior leadership team. The changes included chief executive Todd Buckingham opting to step down to chief growth officer with former chief operating officer Jake Henson taking his place.
“The decision to transition from CEO to a focused delivery role on our international opportunities and growth initiatives came after an internal review to best position the company for accelerated growth and how best I could assist in capitalising on these opportunities,” said Buckingham.
The quarter saw Vici acquire the real estate assets of four Canadian gaming properties, at a combined total of CAD$271.9m.
Edward Pitoniak, chief executive officer of Vici Properties, said that the quarter had been successful and had carried on from Vici’s accomplishments in 2022.
“Our Q1 2023 activity highlights Vici’s focus on building off of our transformative 2022 and our relentless pursuit of attractive domestic and international growth opportunities both within and outside of gaming,” said Pitoniak. “We added a new partnership and tenant with Pure Canadian Gaming and announced our first international investment with the acquisition of Pure’s four Canadian casinos.”
