Green Feather Online latest to face Malta suspension

Green Feather has been operating under a B2C Gaming Service Licence in Malta. However, the suspension means it must cease all operations with immediate effect.

The operator has been running Bcasino.com, Bcasino.in, Boocasino.com, Boocasino.co, Galacticwins.com and Mrfortune.com under the licence.

According to the MGA, Green Feather breached several sections of the country’s Gaming Compliance and Enforcement Regulations. These primarily relate to submitting financial information to the regulator.

Highlighted sections include Article 41(1) of the Gaming Authorisations and Compliance Directive. This states that licensees must submit management accounts for the first six months of the year no later than the last day of the eighth month of their financial year.

The MGA also flagged Article 41(2)(a) of the same set of regulations. This requires licensees to file and audited financial statements with the MGA within 180 days from their financial year end.

As a result of the breaches, the MGA suspended Green Feather’s licence. It can no longer carry out gaming operations but must retain all customer information and refund all credit to players.

Green Feather will have the option to appeal against the decision and subsequent licence suspension.

SFJL Holding also suspended in Malta

The ruling comes after the MGA also suspended SFJL Holding Limited’s licence. SFJL was ruled to have breached a number of regulations in the country.

These include rules related to material changes within the business and a requirement to notify the regulator of these changes.

As is the case with Green Feather, SFJL cannot carry out gaming operations during the suspension period.

MGA cancels EGMIT Elite’s licence 

Last week, the MGA also cancelled EGMIT Elite Limited’s B2C gaming service licence. EGMIT Elite operates its Elite24bet site via the licence but must now cease all operations.

The MGA flagged several breaches of the Gaming Compliance and Enforcement Regulations.

The regulator also filed a police report against the operator and initiated liquidation proceedings.

Senators flag integrity concerns over legal election betting plans

In June, private predictions business Kalshi contacted the Commodity Futures Trading Commission (CFTC), saying it intends to offer election betting. Kalshi would offer event contracts on the outcome of elections in the US.

However, a number of senators have now contacted the CFTC to air their concerns. Writing in a joint letter, the senators said Kalshi’s plans would go against CFTC rules on the offering of certain event contracts.

The CFTC currently prohibits event contracts that “involve, relate to, or reference” gaming or activities unlawful under state laws. It also forbids activities similar to this if the CFTC determines the contract to be “contrary to the public interest”.

Senators say Kalshi’s plan opens the door to gambling on election outcomes and would be the first time the CFTC allowed a for-profit entity to offer event contracts on political events.

The group claimed the move would enable a large-scale, for-profit gambling market on which anyone can bet. It also said people could profit off political outcomes and interfere with elections.

This, the group added, would “erode” trust in the integrity of elections and potentially allow for interference in election outcomes.

Senators backing the letter include Chris van Hollen (Democrat – Maryland.) Jeff Merkley (Democrat – Oregon), Sheldon Whitehouse (Democrat – Rhode Island), Edward Markey (Democrat – Massachusetts), Elizabeth Warren (Democrat – Massachusetts) and Dianne Feinstein (Democrat – California).

Election betting could undermine voters

“There is no doubt that the mass commodification of our democratic process would raise widespread concerns about the integrity of our electoral process,” the letter said. “Such an outcome is in clear conflict with the public interest and would undermine confidence in our political process.

“Billionaires could expand their already outsized influence on politics by wagering extraordinary bets while simultaneously contributing to a specific candidate or party.

“There are strong ethics concerns as political insiders privy to non-public information could wield their inside information to profit at voters’ expense.”

The senators also spoke about the danger that election betting could sway the outcome. They said this could also undermine the voices of US voters.

“If citizens believe that the democratic process is being influenced by those with financial stakes, it may further exacerbate the disenfranchisement and distrust of voters already facing our nation,” the letter said.

“We urge the CFTC to deny Kalshi’s proposal.”

Is Mohegan Digital the blueprint for tribal igaming?

Building a digital offshoot to a land-based business is tricky when the property casts a shadow as long as Mohegan Sun, which is Mohegan’s massive flagship property in southeastern Connecticut. 

Mohegan, formally known as Mohegan Gaming and Entertainment, stretches across the US and soon into Asia, but the Connecticut property remains one of the most renowned and highest grossing tribal casinos in the world. 

Last week, Mohegan’s chief executive, Ray Pineault, outlined the tribe’s expansion plans and how he sees digital working in tandem with in-person gaming. Now Rich Roberts, as president of Mohegan Digital, explains how he’s making the online component work. 

Mohegan Sun in Connecticut is one of the most impressive tribal casinos in the US. Now it’s looking to ramp up online.

The tribe established Mohegan Digital in June 2021, hiring Roberts to lead the business to bring his igaming career full circle. 

He progressed from video games to social casino with Slingo before running Sportech’s digital operations. Through its SNG Interactive joint venture with NYX Gaming Group he launched igaming for Resorts Casino, managed by Mohegan since 2012. 

After a diversion into daily fantasy and esports, Roberts led the DraftDay DFS platform prior to his current position with Mohegan.

Expanding Mohegan’s audience

Mohegan Digital, formed after Connecticut signed off betting and igaming legislation, offers casino in its home state, as well as an igaming offering in Ontario through its Fallsview Casino property.

We won’t be spreading rapidly across the US and looking to compete in every state, Roberts says. “Mohegan Digital supports the Mohegan brand as an extension of the properties.”

In Connecticut online casino Mohegan Sun Casino is the brand, while its Ontario offering runs as PlayFallsview. “What we’re doing is ensuring the customer leaves the venue with a great brand experience that will bring the player back to the property,” he explains. 

Mohegan Digital is an extension of the land-based properties, says president Rich Roberts

Among tribal operators, he concedes, there are concerns online takes players away from the property. Data from its Momentum loyalty programme suggest that isn’t the case. 

The Momentum cardholders that do play online, essentially do both. A “handful” of members may be heading out to Mohegan Sun less, but their lifetime value has increased.

“If you take a look at what’s happened in New Jersey over the last nine or ten years, the expansion of digital gaming has not negatively impacted the operators property business,” Roberts adds. 

Most importantly online casino expands the audience. The majority of digital gamers in the first 18 months of icasino in Connecticut are not Momentum loyalty card holders. 

Considering Mohegan Sun is one of two casinos in the Constitution State it has a sizeable database – igaming is refreshing the parts land-based can’t reach. 

“Digital is one of the better customer acquisition tools for the property.”

Get them on property

“The goals of Mohegan Digital include,” Roberts says, “extending the Mohegan brand, bringing more guests to the property and increasing the overall revenues for Mohegan.”

When guests visit the Mohegan properties, they want to come back and the digital platform helps incentivise their repeat visits. Aside from the gaming floor, now featuring “the largest sportsbook east of the Mississippi”, there’s an arena hosting acts from the Jonas Brothers to Bruce Springsteen.

For dining and dancing there is a branch of restaurant-nightclub concept Tao and celebrity chef Todd English’s Tuscany. Two hotel towers mean you don’t have to make your way home after. It’s the full resort experience.

Roberts says Mohegan Digital strives for an experience “in unison” with Mohegan Sun and Fallsview, but it’s impossible to replicate that sensory experience at home. 

Mohegan Digital aims to create a closed loop that integrates the properties into the digital experience

“But what you can do is build a brand extension to what guests expect from going to the casino and all the things it offers,” he says. 

“As a simple starting point, have all the games they would want to play online,” Roberts continues. “Have proper customer service, with the Momentum card as a key piece to earn rewards.”

He knows people are playing games on mobile already. After half a career in gaming then the past 12 years in gambling, his job is to serve these consumers. As an example, Slingo – the slots and bingo hybrid owned by Gaming Realms – attracted tens of millions of monthly actives in its heyday and those gamers are very active real-money players. 

“That mobile experience already exists,” he says. “So the question is how do we get the Mohegan experience to the mobile gamer?”

Comfort in the familiar 

First, he says, it’s a case of providing players with what they know. Many icasino titles put out by the likes of Light & Wonder and IGT are land-based variations and that’s what’s front and centre for MoheganSunCasino.com 

“That is why we like to highlight the games we have on the casino floor in the app, because it gives people a sense of familiarity,” Roberts says. However, there’s room for new titles and games no longer available on the floor. “We bring those back for the nostalgia value.”

There is a unique value to online-first titles, but it’s a case of testing out those which have performed best in other states such as New Jersey or Pennsylvania for Connecticut customers.

The Mohegan role is similar to his previous roles Roberts says. “My background prior to Slingo was with Atari, Hasbro, Viacom, Simon and Schuster and focused on expanding the brands to the digital markets. I’ve been lucky enough to work for really strong, large, recognisable brands and Mohegan is right at the top.

“Being a native of Connecticut, growing up in Connecticut, Mohegan is very well-known,” he continues. “[But] it’s amazing how big the brand is outside of Connecticut, with the level of recognition to the other brands I’ve worked with. 

“Almost 25 years ago, I was making the first digital games for Hasbro that included Scrabble, Monopoly and Boggle brands. This has provided the experience and understanding of the value of moving retail brands into the digital marketplace.”

Icasino is the focus for Mohegan Digital

Understanding the brand and its value means Mohegan Digital is focused on icasino. Alongside PlayFallsView and Mohegan Sun Casino, in Ontario and Connecticut respectively, there are plans to add an igaming offering in Pennsylvania next year. 

Icasino resonates with Mohegan’s database and Roberts aims to roll it out as a brand extension around its physical properties. Opportunities in other relevant states could still be interesting, however. 

“If states like Massachusetts or New York go live with casino games, that’s something that would be really interesting to us with the Mohegan customer base in those two states,” he says. “Entrance to other markets would be based on our brand positioning to achieve similar success.

iCasino regulation in New York would be a very interesting opportunity for Mohegan Digital, Roberts says

“We’re not going into states where we don’t have the right formula for success, or investing beyond our comfort level; we want profitable success. That we have in our current model.

“We had a successful launch in Connecticut and we are right on target in Ontario.”

Sports betting, on the other hand, is “very hard” he says. “We have great partners that have the teams and the acumen in sports betting that Mohegan has in gaming. We rely on their expertise in the markets we are working in to add to our success.”

The only local brand in town

For Connecticut, that means FanDuel which, alongside Mohegan Sun, runs the on-property sportsbook known as Mohegan Sun FanDuel Sportsbook and this partnership also extends to the mobile sportsbook that can be accessed through MoheganSunCasino.com and the FanDuel Sportsbook app.

DraftKings offers online betting and gaming through a partnership with the Mashantucket Pequots. The only other online competitor was Rush Street Interactive-powered PlaySugarHouse although that shut down in Q1

Mohegan Sun Casino is the only local digital brand in the state. That’s a passport to partnerships with local businesses, helping Roberts raise awareness and drive registrations across the population. 

“Our marketing is about keeping it local,” he says. “We have the highest value brand in the state; people love the casino and our property.”

Mohegan Digital is leveraging its position as one of Connecticut’s only local brands online

Promoting the Mohegan brand is promoting the tribes’ values, he adds. As a partner, FanDuel “understands the values of the tribe”. 

“They understand what we’re trying to accomplish for the tribe and they’re working with us as I would expect any partner to support the tribe’s values.”

He argues there’s ultimately very little difference between working for a commercial or tribal business: “They’re both businesses.

“The difference running a tribal business is that I see and work with the shareholders every day,” he adds, however. “And it’s really nice to see what your work does in support the goals of the tribe.”

Pay it forward

Mohegan has extended that goal to other tribes, acting as a partner to provide financial and operational support for casino plans. Mohegan helped to fund and manages the Cowlitz Tribe’s Ilani property in Washington State, for example. 

Could this partnership model be replicated for digital?

“If Mohegan can help other tribes from a retail or a digital perspective, we have the experience and success in both areas to help these tribes achieve their goals,” Roberts says. 

Bally’s Q2 boosted by record casinos and resorts revenue

Revenue totaled at $606.2m for the three months. Bally’s casinos and resorts segment hit $333.1m, an increase of 11.1% year-on-year.

Robeson Reeves, CEO of Bally’s, said Bally’s had made “significant strides” during the quarter and noted the casinos and resorts revenue.

“Bally’s made significant strides this quarter, announcing new initiatives, achieving important project milestones, and building on our strong foundation for 2023 and beyond,” he said.

“Our core casinos and resorts segment produced record second-quarter revenues of $333.2m, an 11.1% increase compared to the second quarter of 2022.”

By segment

Bally’s International Interactive segment brought in revenue of $247.7m for the quarter, an increase of 1.7%.

North American Interactive revenue also grew, by 40% to $25.2m.

As usual, most of Bally’s revenue came from its gaming segment. This generated $493.2m in revenue, a rise of 8.4%.

Non-gaming revenue accounted for the remaining $112.9m.

Quarterly breakdown

Operating costs and expenses totaled at $600.2m for the quarter, effectively wiping out the revenue.

General and administrative expenses came to $249.9m for the quarter, up by a significant 29.6%. Costs stemming from gaming were $218.9m, up by 7.3%.

Depreciation and amortisation costs were $79.1m. Non-gaming expenses were $52.2m.

The various costs left the operating income at $5.9m, close to $80.0m less than the $85.3m in Bally’s Q2 2022.

Following interest expense of $67.0m and other non-operating income at $6.8m, pre-tax loss was $54.3m.

Following tax benefit at $28.6m, the net loss for the quarter was $25.6m, a fall of $85.1m year-on-year.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $130.0m, a fall of 5.1%.

H1 results

Revenue for the half year to 30 June totaled $1.20bn, an improvement of 9.4% year-on-year.

The total operating expenses for the two quarters hit $822.2m, a drop of 17.2%. This brought the operating income to $382.7m, significantly higher than the $107.8m in H1 2022.

Following other expenses at $120.9m, the pre-tax profit was $261.7m. After $109.0m in tax, the total profit for the six months was $152.6m, a rise of 148.7%.

Adjusted EBITDA for the the six months totaled at $256.3m, up by 1.8%.

Half-year developments

During the six month period, Bally’s executed a number of strategic developments.

Before Robeson was appointed as CEO, Bally’s appointed finance executive Tracy Harris to its board of directors in January.

Also in January, the Pennsylvania Gaming Control Board approved a licence for a new Bally’s casino. In March Diamond Sports Group, the Bally Sports regional networks broadcaster, filed for bankruptcy.

In May, the Oakland A’s Major League Baseball team agreed to build its ballpark on Bally’s Tropicana property.

Play Synergy cleared to complete Aruze purchase

Last month, Play Synergy struck a deal to acquire certain assets of Aruze for an undisclosed amount.

The United States Bankruptcy Court has now approved the purchase with the transaction set to close by September 2023.

Play Synergy will take ownership of Aruze’s land-based game library, lease and participation machines and business assets including intellectual property. The deal also covers related sales, services and marketing operations. 

According to Play Synergy, it will continue providing products under the Aruze brand.

In addition, Play Synergy further announced the pending acquisition of overseas operations for Aruze Gaming.  

Nevada licence for Play Synergy

In other news, Play Synergy has been granted approval to launch its offering in Nevada.

The Nevada Gaming Commission issued the business with manufacturer and distributor gaming licences. These will enable it to begin working with operators and partners in the US state.

“These two accomplishments propel us to an exciting new level in this competitive space,” Play Synergy president Frank Feng said. “A Nevada gaming licence is a key and indispensable component of any supplier’s ability to establish a leadership position in our industry.  

“The combination of both companies’ teams, platforms and other resources will ensure that we have the ability to develop and deliver superior content well into the future.”

All change at Aruze

The sale approval marks the latest announcement in what has been a year of upheaval for Aruze.

In February, the business filed for bankruptcy in Nevada. At the time, Aruze’s global CEO Yugo Kinoshita said the move was a “critical business strategy” and was “no reflection on the health of Aruze”.

Instead, he said it related to “a recent garnishment judgment against Aruze resulting from a separate judgment against Aruze’s shareholder”.

Aruze’s shareholder Kazuo Okada, former executive at Wynn Resorts and co-founder of Universal Entertainment, is currently embroiled in his own legal troubles. He was indicted on grave coercion after allegedly leading an “illegal and violent invasion” of Okada Manila.

Last month, Aruze confirmed plans to close its Las Vegas headquarters. This was according to a notice to the Nevada Department of Employment, Training and Rehabilitation.

This means 100 members of staff will lose their jobs this month.

Aruze sells table games assets to Interblock

Interblock, meanwhile, will acquire Aruze’s electronic table games (ETG) assets for an undisclosed sum.

Announced in the wake of the Play Synergy slot deal, the supplier adds a range of new content, not to mention more than 700 employees, to its offering.

Iowa State quarterback charged for tampering with gambling probe

The criminal complaint said Dekkers made 366 mobile bets totalling over $2,799 in spend over several years.

Citing a subpoenaed DraftKings account said to be controlled by the quarterback, the document alleges he made 297 of these wagers while under the age of 21 and placed 26 bets on Iowa State University events.

The prosecution also noted one bet that was placed on the 2021 Iowa State football game against Oklahoma State, in which Dekkers was a back-up but did not play.  

The investigation first commenced in May, when the University of Iowa announced that 26 athletes across five sports were suspected of betting on sports in violation of NCAA rules.

Ultimately, prosecutors in Story County and Iowa City charged seven current or former Iowa athletes in connection to the NCAA probe, all with one count of tampering with records related to the investigation.

These include current Denver Broncos defensive end Eyioma Uwazurike, Iowa State Cyclones Dodge Sauser and former Iowa baseball player Gehrig Christensen.

Prosecutors allege Dekkers involved parents in scheme

Story County prosecutors allege he did so through a scheme involving his parents, Jami and Scott Dekkers, who he involved to disguise his wagers. This involved betting on an account set up in his mother’s name.

As proof of the charge prosecutors said bets were made using Dekkers’ personal iPhone, at his university residence and within Story County Iowa, where he was based.

In a statement made on behalf of Dekkers by the Weinhardt Law Firm, the quarterback denied the criminal charge.

“This charge attempts to criminalise a daily fact of American life. Millions of people share online accounts of all kinds every day,” said the statement.

“This prosecution interferes with and politicises what is the business of Iowa State University and the NCAA. The investigation at the Iowa universities is the tip of an iceberg. Thousands and thousands of college athletes place bets – usually very small ones – with shared accounts. That is for the schools and the NCAA to police.

“This investigation has gone on since May, when DCI agents executed a search warrant at Hunter’s apartment in Ames and another at his family’s home in northwest Iowa. The investigation has been an immense distraction from Hunter’s ability to be a good student and a great teammate.”

The rebirth of Bader Field

With Renaissance at Bader Field, Feitshans says that DEEM is “trying to make a change in Atlantic City”.

He means it both in the literal sense – Renaissance at Bader Field is a retail and real estate development – but also in the more conceptual sense.

The development will include condominiums, a race track that meets F1 standards and various other amenities. 

History in the re-making

Bader Field is a storied swatch of land, once home to the Atlantic City Municipal Airport.

“There’s a lot of wonderful history at Bader Field,” Feitshans says. “We’ve heard stories about the Wright brothers landing there, or Charles Lindbergh touching down during his world tour.”

Atlantic City’s ups and downs led the area to fall quiet. Bader Field eventually closed to make way for a new airport in the early 2000s. An attempt to repurpose the land for a casino property in 2008 was rejected by the city and Bader Field has lain dormant ever since.

“This is one of the largest pieces of undeveloped real estate in the mid-Atlantic, perhaps in the Northeastern quadrant of the United States, which is very densely populated.” Feitshans continues. “What a wonderful opportunity to develop something unique.”

A new legacy for Atlantic City

Feitshans and DEEM hope that uniqueness will be the spark that ignites a new wave of growth for Atlantic City. Bader Field is a wide-ranging, comprehensive development that covers a lot of figurative and literal ground.

“It includes housing, a motor course for auto enthusiasts, retail commercial properties, a hotel, condo towers and a museum,” Feitshans says. 

Erick Feitshans, CEO of DEEM Enterprises

DEEM intends to pursue a LEED Platinum certification for the development as well. Feitshans says a “green” outlook is crucial to the project.

Feitshans hopes Renaissance could be a “catalyst for change in Atlantic City”.

“We don’t necessarily mean to say that this project will, in and of itself, make the final difference,” he says. “But it could be the instigator, spurring a whole new way of thinking about Atlantic City.

“It’s dominated by the casino industry, which is great, but the city could use some business diversification.”

Capitalising on the opportunity

Atlantic City has historically been surrounded by affluent areas. But Feitshans says the city hasn’t always capitalised on that. The New Jersey hub is often seen as a destination, a tourism-driven city, but not a place for locals to enjoy.

“We’re hoping to right that ship,” Feitshans says.

“We also hope to ultimately reduce property taxes for Atlantic City residents, which are currently some of the highest in New Jersey. Embracing the city and its people is one important piece of the project.”

The city, as Feithsans tells it, has been fantastic to work with.

“Mayor [Marty] Small has been an absolute supporter. It took some work to get everyone on the same page, understanding what we wanted to do, especially with the motor course.

“But since we started that process four years ago, the city has embraced and understood it. They see the benefits and the potential ways we can uplift the area.”

Revving up

Look at the headlines about Renaissance at Bader Field and you’re bound to be bombarded with pithy takes on the motor course.

That’s fair enough, considering Feitshans and DEEM are excited about the opportunity. But they’re also careful to clarify what, exactly, the track’s purpose is.

“We had always indicated that our motor course project would be built to F1 standards,” Feitshans says. “I think people misunderstood that to think we were building an F1 track that would operate 24/7 immediately adjacent to a neighborhood. That’s not the case.”

It took some heavy lifting on the educational side, but DEEM eventually painted a clear picture of its planned motor course. 

The track will function primarily as a draw to those who participate in the unique and thriving motorsport subculture. 

“Car culture brings people together,” he says. “Collectors and drivers look at automobiles as their own art pieces. Much like an art collector might hang a Picasso in their home, we’re offering car enthusiasts the opportunity to live in our development but also have their car on location.”

Feitshans hopes that will draw global interest from the car community, especially considering Renaissance will have a fully drivable track. 

For anyone interested in learning more about motorsports, he mentions the Netflix series Drive to Survive. 

Betting on the future

Renaissance at Bader Field won’t be a gambling-first property. However, it will undoubtedly have some ties to the gambling world. It is Atlantic City, after all.

Reshaping the city’s identity won’t happen overnight and there will always be those who flock to the East Coast to spin the reels and roll the dice. Feitshans and DEEM are ready for that.

“We plan to acquire a skin and offer online gambling in some form,” he says. “We’re still working through the details, but we see a lot of opportunities in the online gambling and betting world. We obviously have the track, but there’s a lot we can do in terms of simulated racing or other digital platforms.”

He’s mum on the details which makes sense. It is very early days to be discussing a skin when the project still needs to be built. That portion of it, though, is top of mind.

Breaking ground

The first step toward building Renaissance at Bader Field is a heavy lift intended to mitigate some issues with the land.

“There’s a plume 100 feet below the surface we have to remediate,” Feitshans explains. This is a result of the land’s former use as an airport.

“The other situation is it’s entirely flat and only about four feet from the tide level. The area is prone to storms, so we have to raise it. The approval process requires we raise it, on average, about seven or eight feet. Some areas require 40 feet. The point is, we have to bring three million cubic yards of material and sculpt it into a new surface.”

Only once that step is completed can the proper building process begin.

“We’re calling it our horizontal construction period,” Feitshans notes.

Once the horizontal portion is done, it’s only up from here for Renaissance at Bader Field. 

DraftKings further increases full-year guidance after Q2 growth

The operator put Q2 success down to continued customer retention and engagement, as well as the acquisition of new players. DraftKings also highlighted an expanded parlay offering and improved promotional intensity.

This led to a year-on-year rise in revenue and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA). DraftKings was also able to reduce net loss.

Based on these figures, the operator was confident in increasing FY guidance for the third consecutive quarter. DraftKings already raised FY expectations in both the first quarter of 2023 and final quarter of last year

DraftKings also took into account anticipated launches in new markets when increasing its FY guidance. The operator expects to go live in Kentucky in September and Puerto Rico before the end of the year, with these launches set to further improve financial performance.

“DraftKings produced outstanding results for the second quarter of 2023,” DraftKings’ co-founder and CEO, Jason Robins, said. “We grew revenue at an impressive year-over-year rate, captured additional GGR share in a cost-effective manner and maintained our focus on operational efficiency.

“The positive adjusted EBITDA that we generated in the second quarter exceeded our guidance. We are well on our way to achieving positive adjusted EBITDA in the fourth quarter, fiscal year 2024 and beyond. 

“We are excited by the additional product features and functionality that we are introducing leading into football season. I also look forward to another successful online sportsbook launch in Kentucky this fall pending licensure and regulatory approvals.”

DraftKings Q2 revenue jumps 88%

Looking at DraftKings’ Q2 performance, revenue for the three months to 30 June reached $874.9m. This was 87.7% higher than $466.2m in the same period last year.

User acquisition efforts led to average monthly unique players (MUPs) jumping 44.0% year-on-year in Q2 to 2.1 million. Average revenue per MUP was also some 33.0% higher at $137 (£108/€125) for the quarter.

The revenue rise was accompanied by an increase in spending across almost all areas. The primary outgoing was cost of revenue at $510.3m, up 63.1% year-on-year. Expenses for sales and marketing and product and technology were also higher, but general and administrative spend was down.

DraftKings Q2 operating loss was $69.0m but this was significantly lower than the $308.9m loss posted at the same point in 2022. The operator noted an additional $7.3m in net finance costs, leaving a pre-tax loss of $76.3m. However, again, this was much less than $298.3m last year.

After also accounting for $651,000 in income tax and a $323,000 loss from equity method investment, net loss hit $77.3m, down from $217.1m in the previous year. In addition, the operator turned an adjusted EBITDA loss of $118.1m in 2022 to a positive of $73.0m.

Net loss slashed by $210m in H1

Tuning to the first half and revenue for the six months to 30 June hit $1.64bn, up 97.3% on last year. 

Spending made for similar reading, with all costs besides general and administrative rising year-on-year. Cost of revenue surpassed the $1.00bn mark to reach $1.03bn, while sales and marketing spend was $596.6m.

However, the revenue rise meant operating loss was reduced from $824.5m to $458.8m. A further $13.1m in net finance costs meant pre-tax loss amounted to $472.0m, again lower than the previous year.

DraftKings paid $2.0m in tax and made a $442,000 loss from equity method investment. As such, net loss for the half was $474.4m, down from $684.8m in 2023. In addition, adjusted EBITDA came in at a loss of $148.6m, an improvement on the $407.6m loss last year.

Higher expectations for full year

Raising its full-year guidance, DraftKings said it now expects revenue to be within a range of $3.46bn to $3.54bn. This is higher than the range of $3.14bn to $3.24bn set after Q1 and would put year-on-year growth between 54% and 58%.

Adjusted EBITDA loss is forecast to be $190.0m to $220.0m, compared to Q1’s guidance of $290.0m to $340.0m. 

Looking at the fourth quarter in particular, DraftKings said revenue is likely to reach almost $1.2bn and adjusted EBITDA between $150.0m and $175.0m.

The operator noted the guidance includes all existing jurisdictions where it is live plus Kentucky and Puerto Rico.

“We are acquiring new customers efficiently while simultaneously retaining and monetising our existing players through rapid product innovation, fewer promotions and higher hold from better bet mix,” DraftKings’ CFO, Jason Park, said.

“Our unit economics are outstanding with older states generating more than enough cash to fund investment in new states. This performance combined with fixed costs that grew at only a mid-single digit year-over-year percentage rate in Q2. This resulted in an inflection to positive adjusted EBITDA that we expect will occur again in the fourth quarter and for full-year 2024.”

DraftKings’ failed PointsBet offer

Q2 also saw DraftKings momentarily enter the running to acquire the US operations of PointsBet.

DraftKings tabled an unsolicited non-binding indicative proposal worth $195.0m in June. This came just weeks after Fanatics announced plans to acquire PointsBet’s US business.

The proposal led to strong criticism from the ecommerce giant’s CEO, Michael Rubin, who said he was “sceptical” of the move. He added that it was a “desperate” attempt to slow progress on Fanatics’ own deal with PointsBet.

PointsBet said it would engage with DraftKings after determining the proposition could be “superior” to Fanatics’ bid. However, after Fanatics returned with an improved proposal worth $225.0m later in the month, DraftKings withdrew from the race.

Should the Fanatics deal complete as expected, it would grant the business access to 12 states. Among those are major betting and igaming hubs New York, New Jersey, Pennsylvania and Michigan.

Catena Media to offload UK and Australian businesses for €6m

The sale covers all assets in the Catena Media UK business such as the Squawka and GG.co.uk brands. It also includes all shares in the group’s wholly owned Australian subsidiary.

Moneta, a UK-based sports betting affiliate, will pay an initial €5.8m, with further a €200,000 due within 75 days of closing. Catena Media will use the funds to repay debt.

Following an impairment charge of €15.2m arising from the sale, the divested businesses’ intangible assets had a net book value of €6.0m on 30 June. The assets generated €4.5m in combined revenue and €900,000 in EBITDA during the 12 months to the same date.

Catena says the transaction will reduce its cost base by approximately €2.8m per year, with these savings to be realised directly on closing.

The sale is due to complete during the third quarter of this year.

“I’m delighted that we have found a buyer that is well placed to build on the success of our UK and Australian sports and casino brands,” Catena Media CEO Michael Daly said. “It will offer them the scope and support they need to develop and grow.”

Moneta CEO Christopher Russel added: “We are happy to have acquired these established and successful brands. This acquisition allows Moneta, as part of the OneTwenty Group, to further our plan to acquire fan-focused, profitable digital media assets that cover major sports in important markets. 

“We are excited to further develop and grow the assets and the team.”

Catena switches focus to North America

The sale marks the latest phase in Catena’s shift in direction to focus on the North American market.

Last May, the group launched a strategic review of its business to consider selling off certain assets. This was sparked by interest in its AskGamblers brand, with Catena looking at other options to divest parts of its business.

The review initially focused on certain assets but was expanded to cover all European online betting and casino businesses. It was also only due to last a month but was extended in October to allow Catena to assess “multiple options”.

In January, Catena appointed Carnegie Investment Bank as a financial advisor to assist in other the potential sales.

Shortly after, AskGamblers was sold to Gaming Innovation Group (GiG) for €20.0m. GiG agreed the deal in December and completed the purchase in late January.

In the days after, it was also announced that Better Collective had acquired a minimum position of 5% in Catena.

Job losses and investment cut-backs

The review has also led to Catena reducing its staff headcount as part of wider cost-saving plans.

Catena hinted at job losses near the start of the review, announcing that it would consult on redundancies in the UK and Malta. By November, Catena confirmed it had laid off 25% of its European staff base but added that no further job cuts were planned.

There was also an outgoing at senior management level when Peter Messner stepped down as CFO in February. Former CFO Erik Edeen is now serving in the role on an interim basis.

Aside from job cuts, Catena also opted to cut back strategic investments. Upon announcing its second-quarter results last year, CEO Daly said such investments would be reduced from planned levels.

Speaking at the time, Daly said a “priority” for Catena was to remove costs where possible and adapt the business to lower margins in key markets.