Month: December 2023

The Interactive Gambling Amendment (Credit and Other Measures) Bill 2023 was introduced in September. This legislation seeks to ban credit cards and other credit-related products, as well as digital currencies, in Australia.

Australia’s House of Representatives passed the bill last month, allowing it to progress to the Senate. Today (6 December), the Senate also approved the legislation, clearing the way for it to pass into law. 

The country already has a ban in place on gambling with credit cards at land-based venues. This means the bill effectively places a blanket ban on credit card gambling across Australia.

What is in the credit card bill?

Aside from a ban on credit products, the bill features several other related measures. These include fines of up to AU$234,750 (£122,475/€143,003/US$154,282) for operators that do not enforce the ban.

The bill also grants new powers to the Australian Communications and Media Authority (ACMA). Such powers include enforcing new and existing penalty provisions and taking responsibility for issuing penalties to those breaching the ban.

However, the bill will not come into effect immediately. The Australia government previously said it would run a six-month transition period to allow operators, payment providers and consumers to move in line with the new rules. This period will begin once the bill receives royal assent.

The bill is the result of in-depth and widespread consultation with many stakeholders. These include operators, harm reduction advocates, wagering and lottery providers and banking payment organisations.

Responsible Wagering Australia questions keno and lotteries exclusion 

One of the leading advocates for a credit card ban, Responsible Wagering Australia (RWA), welcomed news of the bill’s approval. RWA CEO Kai Cantwell said the change was needed and that Australians should only be gambling with money they have.

“This is an important measure to protect customers and their loved ones, making it easier for people to stay in control of their own gambling behaviour,” Cantwell said. “It will complement the existing offering of safer gambling account management tools by RWA members to customers to help them stay in control of their betting.”

However, Cantwell hit out at the decision to exclude certain types of gambling from the ban. Consumers will still be able to use credit cards to play lotteries and keno. Cantwell said this was “disappointing” as lotteries are the most prevalent form of gambling in Australia and commonly accessed by people in low socioeconomic communities.  

“The latest Australian Gambling Statistics show that Australians lost most than $3.20bn on lotteries and keno in 2020-21,” Cantwell said. “With the introduction of online keno in Victoria, keno losses increased more than 400% from 2021-22 to 2022-23.

“Lotteries were also exempt from the National Self Exclusion Register, Betstop, meaning that Australians who have self-excluded from online gambling are not precluded from gambling up to $10,000 online at a time through lotteries.”

Campaigners push for blanket ban 

With this in mind, Cantwell and RWA are calling for a complete blanket ban on using credit cards for any form of gambling.

“To effectively reduce gambling harm, consumer protection measures must exist across all forms of gambling, otherwise those at risk of harm will just move from one form of gambling to another less regulated type,” Cantwell said.

“RWA members have been working with the federal government and the financial services industry to deliver this credit card ban since 2021. We will continue to engage productively to ensure the ban can be implemented effectively within six months.”

Credit card ban a long time coming in Australia

The bill implements recommendations set out by the Parliamentary Joint Committee on Corporations and Financial Services from November 2021. However, efforts to outlaw credit card use in online gambling have been ongoing for some time.

In December 2019, the Australian Banking Association hosted a consultation on credit cards in gambling. The initiative ran to March 2020 and also looked at how banks can help better protect players. 

Calls for a ban grew louder in spring 2020 when Great Britain introduced a ban on credit card gambling. 

Against this background, certain parties chose to effectively jump the gun and put in place their own bans. This included consumer-owned banking group Bank Australia, which in October 2021 announced account holders could no longer to use its credit cards to fund gambling.

As we reach our third global igaming market as part of our Slot Trumps research, we are rapidly building up a detailed picture of player preferences. Our reports have spanned some of the world’s fastest growing regulated and newly regulating territories.

If Romania was split between a mix of classic slot fans and Bonus Buyers, and Brazil was made up of “thrillseekers”, then Greece is the first market where we have seen regulation impact online casino player behaviour. 

Analysing the Greek market

In 2022 the Greek government increased the maximum stake limit on all slot games to €20. This reversed its 2020 guidance of a €2 max bet. It also doubled the jackpot value on games of chance and slots from €70,000 to a €140,000 cap. Slot spin speeds were also increased from three seconds to two seconds. 

Although conditions both for players and the industry have improved, player behaviour is still conditioned by regulatory requirements. This has also been evident within our findings.

For example, Greek players cannot access “Buy” features. The maximum bet cap influences in-game bonus features as well as average bet levels of €0.79 per spin. This comes while only 20% of the 20 most played games have an average bet of more than €1. 

In contrast, Greek players’ inability to access certain bonus features means more traditional mechanics thrive. A total of 60% of the top 20 games within the SlotMatrix Greece network contain free spins. This is while only 20% offer jackpots and 15% offer game-specific bonus features that enable players to access bonus rounds. 

Comparing Romania

Romanian players spend three times more per spin across their top 20 games (€2.59) than in Greece. This is with very few regulatory rules restricting activity. In contrast in Brazil, where gaming laws are still being established, players on average also spend more per spin (€1.09). 

These numbers, however, mask the huge appetite for real-money games in Greece. This is a country with a lower adult population than both Romania and Brazil. We see this with the average number of sessions (6.2), bets per player (459) and bets per session (73.8) across SlotMatrix’s top 20 aggregated games within a 90-day timeframe. 

For a country of its size, and despite restrictions preventing players from accessing features that other markets enjoy, it punches far above its weight. The latest official country data shows gross gaming revenue (GGR) is 16% higher year-to-date. Compared to the the same period last year, this has risen to €619m, with Q3 GGR up 4% to €212m. 

Pettersen explores the optimum strategies operators can use to consistently engage Greek players within a changeable regulatory market. 

Slot Trumps: Compliance comes first 

Without question, in markets such as Greece, having a firm grasp of the regulatory issues and ensuring you are compliant is vital. Our CasinoEngine productivity platform, for example, enables operators to take full control of the gameplay window on both desktop and mobile. 

This allows for real-time notifications in line with regulatory and safer gambling requirements. That includes reality checks, time limit calculations, wagering limits across all vendors, authenticity checks and bespoke daily reporting. We also have toolbars with specific buttons such as money transfer and the ability to switch between fun and real money modes. 

Furthermore, it also allows brands to add buttons on top of the gameplay window for added features. These include quick deposit and cashier functions, gameplay information, gamification features and more. 

This is also fully supported with precise and real-time reporting. For example, once a game is launched, CasinoEngine allows operators to retrieve wallet and detailed session data. This includes gambling notification interval (e.g. 5 mins), session times (e.g. 10 min), session information (stakes/winnings), and user info (e.g. user balance, country of residence). 

This ability to swiftly design and deliver any tool or feature an operator requires within the Greek market is essential. We have been working with market leaders OPAP and others for several years to offer and amplify highly engaging and personalised, but equally safe and responsible, gameplay. This also ensured we delivered record revenues for them.  

Localised content is king 

As we have discovered in 15 years of integrating, distributing and delivering the largest content library in our industry, localised content strategy is crucial. Not only does every market have its own regulatory requirements, but players also select and engage with games they are most familiar with and that fit into their cultural preferences. 

Lobby management goes together with localisation and is vital in a market such as Greece. This is especially the case given that conditions and trends change quicker than most. Integrating an aggregation offering supported by a flexible and highly efficient platform is a must. This is especially the case if you want to fully control and personalise your offering.

SlotMatrix enables brands to choose the ideal content for each market. This is supported by a powerful productivity platform that offers flexibility and personalisation. This means operators can target player segments and instantly present them with the games they enjoy the most. Not only that, it also continually adds new content and offers them those titles whenever relevant. 

This then empowers brands to manage what is presented to each player within the front-end. Brands are enabled with creating any number of lobby variations; tailor categories and game order for specific markets or player segments; build web and mobile lobbies for games, live dealer tables and VIPs, for instance; and change the order of games in a way that suits their strategy best. 

Align your online casino strategy with the right foundations, tools and functionality and you will instantly reap the rewards in Greece. 

For a detailed breakdown of Greek player and wagering behaviours go to our latest Slot Trumps Player Behaviour Report. 

Meet the Experts! Click here to book a meeting with the EveryMatrix team at ICE 2024! 

Carried out by Ipsos UK and ClearView Research, supported by the University of Manchester, the study focused on potential links between problem gambling and discrimination. Findings have been published today (6 December) by the GambleAware charity.

The study features responses from 2,999 people, including 1,779 white British people and 1,220 from minority communities. It took place in May 2022 and covered England, Wales and Scotland.

GambleAware says the overarching finding was the relationship between problem gambling and discrimination. Half of those from minority communities experiencing problem gambling were more likely to have been subjected to discrimination in public, compared to those who did not have a gambling issue.

Some respondents spoke of a link between experiencing of discrimination and susceptibility to gambling harms. This included racism and discrimination leading to exacerbated gambling behaviour, as well as feelings of social exclusion, reduced employment opportunities and heightened risk of mental health issues.

There were also concerns over those saying gambling was a “coping mechanism”. Some 18% of people from minority backgrounds who gambled are three times more likely to make this link. In comparison, only 6% of white British people who gamble made such a statement. 

“Barriers” to help for problem gambling

The study also looked at barriers stopping people seeking support for their gambling issues. People from minority communities were less likely than people from the white British group to say they would be comfortable talking to family and friends about their habits. 

Minority community respondents were also less comfortable talking to gambling support service providers or a healthcare providers. In relation to this, research flagged a lack of awareness in minority communities of where gambling support.

Perhaps of more concern was some respondents describing a lack of trust in healthcare providers and support services. This was due to previous experiences of racism and discrimination they faced when seeking healthcare. 

Furthermore, minorities said that they could be disproportionately influenced by gambling marketing and advertising. This related to limited understanding about the risks of gambling, making them more susceptible to adverts.

GambleAware urges people to seek help

GambleAware CEO Zoë Osmond said the findings made for concerning reading. However, she also urged those experiencing such issues to contact GambleAware for confidential guidance and support.

“Gambling harms can affect anyone, but they can be more common and more damaging in communities that face social inequality – such as these minority groups,” Osmond said. “Fortunately, help is out there. 

“The National Gambling Support Network offers confidential, tailored support for people from all backgrounds. It also does a lot of community outreach to raise awareness and increase early intervention, so that people from all backgrounds know where to turn and can get help before gambling problems turn into an addiction.”

New funding for gambling support organisations 

GambleAware will be opening a new funding programme later this month. This will seek to address some of the issues flagged in similar research.

Earlier this year, a separate study found gambling participation rate for minority groups was 31%. This was lower than that of white British people, of whom 48% participate in some form of gambling. However, 42% of gamblers from minority backgrounds suffered some form of gambling harm, compared to 20% of white British gamblers.

In response, GambleAware will make some £4.3m (€5.0m/$5.4m) available to organisations in England, Scotland and Wales to help address such issues.

“Our new funding programme is a response to research which demonstrated that both women and people from minority ethnic and religious communities face additional burdens of gambling harm as well as barriers in accessing services which meet their needs.” GambleAware chief commissioning officer Anna Hargrave said.

“Through the fund we will aim to reduce the inequality of experience of gambling harm for women and people from minority religious and ethnic communities.”

Online slots draw most gambling harm contacts in 2022-23

This latest report comes on the back of other data published this week by GambleAware. In its annual statistics, GambleAware said 6,645 people contacted the National Gambling Treatment Service (NGTS) during the reporting period. The gambling harm data covers the 12 months from 1 April 2022 to 31 March 2023.

Some 5,621 people (85%) accessed treatment from the NGTS. The other 15% received support to address the impact of someone else’s gambling.

Almost 38% of those who accessed treatment were for online slots, with internet sports betting second on 15.6%. Fixed-odds gaming machines in bookmaker shops followed with 12.8%, while sports betting and gaming machines in bookmakers each accounted for 10.1%.

Read chief people officer Sarah Kane’s argument for devising – then living – company values here.

Jump to: Regional overviews

Europe

North America

Asia

Rest of the World

Jump to: Country snapshots

Brazil

Germany

Malta

Romania

Singapore

Spain

United Arab Emirates

UK

USA

Europe

The UKGC white paper has been published, but the igaming sector awaits the accompanying legislation, with other countries likely to follow the UK’s lead. Tech hubs in Eastern Europe, including Romania and Bulgaria, have established physical offices while allowing remote work within these countries. Turnkey scalable teams provided by the likes of Cohort Teams are gaining popularity. Major hubs like Malta and Gibraltar show stability, with limited fluctuations in activity.

North America

There have been high expectations surrounding the prospect of several major states legalising online casino in the current year. However, only Rhode Island ultimately passed the legislation, bringing the total number of legal igaming states to seven (with Rhode Island’s igaming going live in April 2024). Meanwhile, last year’s Ontario legislation has transformed it into a highly competitive market.

Asia

Singapore continues to experience growth, driven by the Gambling Control Act 2022 and the Gambling Regulatory Authority of Singapore Act 2022 passed last year. This market is poised for expansion, especially as it emerges from
the uncertainties of the Covid era. Live dealer games and live casinos have gained popularity in the region. Moreover, sourcing remote talent remains viable, seamlessly integrating into
other operations.

Rest of the world

The spotlight is on LatAm, with Brazil at the forefront, legalising sports betting and triggering a surge in hiring activity. Colombia is also making inroads. Africa is often hailed as the next major igaming market, driven by a growing population and rapid internet adoption. South Africa’s online gambling bill, introduced last year, catalysed numerous operators’ entry into this market.

Brazil

Hiring in Brazil has grown substantially this year and the excitement surrounding the market suggests that growth is here to stay.

Germany

Regulatory challenges have contributed to slow growth in this market but change is potentially on the horizon.

Malta

The influx of new talent to the island has slowed but this major gaming hub continues to thrive.

Romania

Despite tech layoffs, hiring in the ‘Tech hub of Eastern Europe’ has demonstrated resilience and strengthened throughout the year.

Singapore

Opportunities for growth are still to be found in this region, with revenue continuing to rise in the post-Covid era.

Spain

New responsible gambling measures have created some challenges but the market continues to show signs of growth.

United Arab Emirates

The establishment of a new gambling regulator has been a catalyst for increased activity in this highly profitable region.

UK

The UKGC white paper was finally published this year but the sector is still in limbo as it waits for legislation.

USA

Legislation for online gambling did not progress as anticipated this year but there’s optimism for its success in the new year.

Next up, you’ll see the full breakdown of industry salaries by function and role.

The facility, CDI’s sixth in the Bluegrass State, has a Kentucky Derby theme and houses 500 HRMs. The CDI venue also features three food and beverage amenities, 130 parking spaces and an exterior 3D video board.

CDI said the project generated 400 construction jobs and resulted in over 150 permanent jobs at the venue. More than $14.0m of the investment was spent with minority, women and veteran-owned subcontracting services.

“This project is one of which I’m particularly proud because in addition to its impact of the Kentucky horse industry, it’s going to bring new energy to our downtown and stimulate investments like it,” CDI CEO Bill Carstanjen said. 

“DCG Downtown will give locals, bourbon tourists, convention attendees and all our visitors, another much needed entertainment facility in this region. Investing in downtown Louisville was more than a financial decision. It is an investment in the spirit and the culture and the future of our city.”

Kentucky’s governor, Andy Beshear, also praised the project. He said the venue fits in with the state’s racing heritage.

“As you all know, racing is a key part of our history and our culture,” Beshear said. “Churchill Downs brings folks from across the state and across our world together.

“This company isn’t just resting on where they’ve been, they’re laser focused on where they’re going. They’re working tirelessly to be even better to ensure their future and our future as Kentucky is brighter than ever.”

Sports betting now legal in Kentucky

The opening comes shorty after Kentucky opened its legal online sports betting market. Initially, the state launched retail wagering on 7 September, with online following on 27 September as part of a staggered launch.

Bet365, BetMGM, Caesars, Circa, DraftKings, FanDuel, Fanatics and Penn Sports Interactive all picked up online licences. Kambi was also issued a service provider licence, although this only covers retail operations.

As for retail, licences have been issued for a number of racetracks and satellite facilities. These include Churchill Downs and Derby City Gaming, both in Louisville; Ellis Park in Henderson; The Mint Gaming Hall Cumberland Run in Corbin; and The Mint Gaming Hall Cumberland in Williamsburg.

Other approved sports wagering operators are Newport Racing and Gaming in Newport; Oak Grove Gaming and Racing in Oak Grove; The Red Mile in Lexington; and Turfway Park in Florence.

In addition, licences were awarded to three new facilities. These include Derby City Gaming in Louisville; Ellis Park in Owensboro; and Sandy’s Gaming and Racing in Ashland.

DraftKings CEO Jason Robins isn’t concerned over ESPN Bet’s launch, instead claiming it could be a positive for the market.

ESPN Bet, a product of a $1.5bn (£1.2bn/€1.4bn) deal earlier this year between Penn Entertainment and Disney-owned ESPN, launched across 17 states on 14 November.

The ESPN Bet mobile app was downloaded over a million times in the first six days after its introduction. This was no doubt helped by the busy sports calendar of Thanksgiving week.

Unfazed by the competition

Despite ESPN Bet smashing the record for sportsbook downloads, Robins is unfazed by the competition.

Taking time during his presentation at the third annual Craig-Hallum Online Gaming Conference, he re-affirmed DraftKings’ position as one of the top two operators in North America alongside FanDuel.

“[It’s] not the end of the world in the short term. We watch this stuff very closely. We’ve seen nothing to suggest that our trajectory is changing, but its obviously something we’re keeping a close eye on.

“We’ve had many waves of competition, I think in the past [we’ve seen] some aggressive and even at times irrational competitive behaviour. I’ve not seen that now. I think they’re [ESPN Bet] playing for the long term, not to come in, make a splash and disappear.”

The hope for DraftKings is that ESPN Bet will bring new innovation to the market, as well as new industry talent. “I think that’s good for everybody if the overall TAM [total addressable market] is growing.”

He added: “If anything, I feel like we’ve just reinforced that no matter what happens competitively, no matter who enters the market, if we stick to our playbook, good things will continue to happen.”

Strength of product

Robins believes DraftKings’ product is the reason for the company’s continued success, stating: “We’ve seen lots of waves of competition. I think our expectation is that this is a competitive market. We’re going to continue to have to fight for the customer and build great product.

“Typically, best product always wins. And if you have a product that is just clearly sort of viewed as best in class, you get all sorts of organic benefits to LTV [lifetime value] and CAC [customer acquisition cost], which then reinforces the advantage.”

Although Robins was always confident over DraftKings’ prospects, he conceded he was surprised at just how quickly they have become North America’s leading sportsbook. He explained: “The consolidation of market share, I think [we] definitely expected that to happen.

“We’ve really outperformed on that front and it’s really reinforced to us that we can actually achieve really outstanding share in this market.

“The degree to which it’s yielded benefits and really the speed with which we’ve been able to gain share, I frankly thought it would be a longer grind than that. We felt like it might take five years, six years, seven years to get to the level of share that we’re at today.”

Progressive parlays on the agenda

Progressive parlays, which offer sports bettors the chance to win consolation prizes, will also be launched in the coming weeks.

Parlays, which offer a reduced payout, even if all the legs don’t hit, are seen as a beneficial move. He added: “It’s weeks away, so we’re getting close. I’m excited about it, because it’s differentiated.

“The opportunity to, even if you don’t hit every leg of your parlay, be able to win something. I think it’ll really scratch an itch in the customer demand. We have a high degree of confidence it’ll work because it’s been tried in other places.”

Igaming a key area of growth for DraftKings

DraftKings overtook rival sportsbook FanDuel for the first time earlier this year, reaching 31% in market share in igaming during the third quarter of 2023 through August.

Robins is delighted with DraftKings’ progress in igaming. He added: “It’s a very significant chunk of our revenues and that’s only in five states.

“So really for me, igaming is kind of the unlocked or the hidden, gem of DraftKings. We’re very bullish on igaming.

“I think it’s something that is a hidden gem and we’re investing a lot behind that product. It’s something that we intend to continue to compete in and try to gain share.

“Initially, I thought, igaming, we were going to have a hard time getting close to 30%, but that’s where we are.”

DraftKings still at net loss for earnings

In November, DraftKings raised its guidance for the third consecutive quarter this year after posting revenue and adjusted EBITDA growth in Q3, also reducing net loss.

Its launch in Maine last month means DraftKings is now live with mobile sports betting in 25 US states. The brand also saw monthly unique players increase 40% to 2.3 million in Q3.

Surprisingly however, DraftKings remains in the red for the year. This is despite a 57.40% rise in revenue in Q3.

Notably, its net loss of $283.1million was significantly lower than the $450.5m in Q3 of 2022. Its greater operational efficiency suggests a stronger chance for net profitability for H1 2024. This was indicated further with adjusted EBITDA loss reduced from $264.2m to $253.4m.

When Brazil’s Economic Affairs Commission (CAE) approved Bill 3,626 two weeks ago, the industry thought the Senate plenary vote couldn’t be too far away. Unfortunately, that wasn’t the case.

The senate plenary’s vote was initially scheduled for 29 November. However, the vote was delayed until December after more than 100 amendments were added to the bill.

This takes us to the present day. The senate plenary’s vote is scheduled to take place at 2pm local time (5pm GMT).

iGB understands that this vote will be delayed by six days, to take place on 12 December. Senators have allegedly been told that the minimum number of senators needed to vote today will not be met.

In this case, the vote could not go ahead because approval of the bill may be compromised.

What effect would this have?

If this vote is also delayed, the ramifications could reach much further.

The National Congress of Brazil – which contains the federal senate and chamber of deputies – goes on recess on 22 December. The recess will end on 2 February 2024.

If the vote is delayed by even one week, this would leave one week and two days for Brazil’s chamber of deputies to approve the amendments presented by Senator Angelo Coronel and officially sign off on the bill.

And for the resources necessary for the bill to be included in the 2024 budget, it would have to be approved in 2023.

What does the industry think?

Despite rumours of a delay, Luiz Felipe Maia, founding partner of Brazilian law firm Maia Yoshiyasu Advogados, says sports betting regulation is not far away.

“I sincerely believe we are moving closer to regulation,” says Maia. “In fact, I believe we are very close to the approval of the bill, with one critical element that was absent in the previous attempts: the weight of the government in favour of its approval.”

Maia says that players will benefit the most from the regulation, even compared to the assumed benefits for the government and sports. As for the delays, he believes it’s just part of the process.

“COP28 resulted in several absences in the senate,” he continues. “The government and those in favour of the bill are not willing to take risks in the vote and those against it are trying to block it, aiming to exclude online games.

“It is definitely frustrating, but it is part of the democratic process.”

How did it get to this point?

To take stock of how we get here in the first place, let’s work backwards.

As mentioned, the CAE approved Bill 3,626 last month. This approval was particularly notable as it amended one of the most controversial aspects of the bill – the tax rate. This was initially set at 18%, much to the ire of the industry which had an overwhelmingly negative reaction.

The version of the bill approved by the CAE officially set the tax rate at 12%. An attempt to remove igaming from the bill also fell flat. Online gaming was added to the bill in September, and was approved by the chamber of deputies the same month.

Bill 3,636 went through a number of transformations to get to its current form. In July this year, Brazil’s president, Luiz Inácio Lula da Silva signed Provisional Measure (PM) No 1,182 into law. This implemented sports betting measures outlined in Law No 13,756 from 2018, with amendments to the tax rate and marketing restrictions.

In October, Brazil’s ministry of finance published the general conditions for receiving a sports betting licence in the country. This specified that hopeful applicants must apply by late November in order to be in with a chance.

Undoubtedly, the path to legal sports betting in Brazil has been long and winding. It’s fair to assume that the industry may be fatigued by this point. But while it’s been a long road – specifically for those based in Brazil – hopes are high that the senate will vote in favour of the bill today.

For Alexandre Tomic, CEO and co-founder at Alea, there are two key drivers for success: technology and data. With a drive to recruit technology experts that can help to analyse Alea’s impressive player data, Tomic believes the future is in sharing player preferences and understanding which games work in which markets.

The double addition has had a significant impact on Allwyn, with revenue almost doubling year-on-year in Q3 to €368.4m. Earnings were also higher in the period while adjusted free cash flow was 10% higher at €336.6m.

The group purchased Camelot UK, current operator of the UK’s National Lottery, in February. This comes ahead of Allwyn taking control of the lottery in February next year under the fourth National Lottery licence.

Allwyn also acquired Camelot Lottery Solutions (Camelot LS) earlier in 2023. The US-facing business has since been rebranded as Allwyn North America to reflect the purchase. 

Reflecting on Q3, Allwyn CEO Robert Chvatal said he was pleased with progress across the group. He added that the Q3 results show Allwyn is well placed for further growth in Q4 and beyond.

“I am pleased to report that Allwyn delivered another quarter of solid financial performance and strategic progress, notwithstanding headwinds from customer-friendly sports results (which impacted the sports betting sector in general) as well as less favourable jackpot cycles,” Chvatal said.

“Total revenue increased by 98% year-on-year in Q3 2023, reflecting a steady performance in our existing geographies in addition to the significant contribution from the Camelot acquisitions that we completed in the first quarter.

“We continued to deliver solid margins and free cash flow generation, with only a limited impact of inflation on our cost base, reflecting our favourable cost structure. Our largest cost categories were directly linked to revenue and our focus on cost and capital efficiency.”

Gross gaming revenue up 98% at Allwyn

Looking at preliminary results for the three months to 30 September, Allwyn did not publish figures in full. However, it does offer an insight into revenue performance for the quarter.

Consolidated gross gaming revenue in Q3 was 98% higher at €1.92bn. Again, this was based on the whole business, including the Camelot UK and Camelot LS operations. Net revenue – total revenue minus gaming taxes and good causes contributions – also increased by 38% to €883.3m.

When excluding the double Camelot acquisition, total revenue was 1% lower at €1.01bn for the quarter. Gross gaming revenue was level at €965.2m, with net revenue declining 1% to €636.1m.

Focusing on data excluding the acquisitions, Allwyn said growth was impacted by customer-friendly sports results, as seen across the industry. It was also hit by unfavourable jackpot cycles, with jackpots for key games being won before growing to the size to attract less frequent players. Allwyn gave the example of the EuroMillions jackpot reaching a record high in Q3 of 2022. 

UK makes up almost half of Q3 revenue

Breaking down geographical performance, the UK is now the core market for Allwyn by some distance. Total revenue in the UK in Q3 was €956.5m, which was 12% lower than last year, due to weaker performance of numerical lotteries and shorter EuroMillions jackpot cycles.

The Allwyn UK will take over operations of the UK National Lottery from Camelot UK on 1 February 2024. Allwyn noted certain costs related to preparations for the transition to the new licence.

Elsewhere, total revenue in the Greece and Cyprus segment slipped 4% to €503.4m. Allwyn put this down to unfavourable jackpot rollovers, customer-friendly sports results and one-off natural events, including the wildfires that hit Greece, which impacted the availability of some points of sale (POS). 

However, Allwyn did note growth within its online channel in the region. This posted higher gross gaming revenue year-on-year reflecting stronger igaming performance and helped by the launch of new games.

There was also better news in Italy, with total revenue up 8% year-on-year to €554.0m.

Austria will be hit by loss of casino licence in Germany 

In contrast, the Austria segment reported growth, helped by a good performance in instant lotteries, igaming and video lottery terminals and casinos. Total revenue here was up 2% to €379.9m.

Allwyn, however, said the performance of numerical lotteries was somewhat weaker. This was impacted by shorter jackpot cycles in EuroMillions as well as a record rollover in the prior year. 

Allwyn also noted the next licence to operate 10 casinos in the Lower Saxony region of Germany was awarded to a competitor post quarter end. The activity is reported within VLTs and casinos in the Austria segment. The current licence ends in August 2024.

The group also noted growth in the Czech Republic, with total revenue up 6% to €123.1m. This, Allwyn said, was driven by good organic top line growth across all major products. In particular, it noted a strong performance by instant lotteries and igaming.

Finally, the US-facing Allwyn LS Group business took €46.5m in total revenue in Q3, up 12%. This was mainly due to a strong performance of the Illinois Lottery, which the business operates.

Year-to-date consolidated revenue tops €5.70bn

Allwyn did not disclose further details in terms of costs or profit. However, it did break down its year-to-date performance. Total revenue for the nine months to 30 September reached €5.70bn, again up 98% from last year’s €2.88bn.

Gross gaming revenue hiked 99% to €5.47bn and net revenue was 43% higher at €2.60bn. The group also noted that adjusted EBITDA increased 26% to €1.10bn and adjusted free cash flow 23% to €1.02bn.

Excluding the two Camelot acquisitions, total revenue was still 7% higher at €3.09bn. Of this total, €2.97bn was designated as gross gaming revenue, up 8%, while net revenue jumped 8% to €1.97bn.

Adjusted EBITDA climbed 11% to €968.5m and adjusted free cash flow 8% to €901.2m.

“Overall, despite the sector headwinds in the quarter, I am very pleased with Allwyn’s continued progress and believe we are well placed to end 2023 successfully and for the next chapters of our growth story,” Chvatal said.

Spiffbet acquired the dormant Helmicasino site for SEK300,000 (£22,777/€26,552/$28,774) in November. Helmicasino was previously operated in Finland under a different licence, but shut in early 2023 amid changes to payment conditions.

Helmicasino is live again in the country under a Malta Gaming Authority (MGA) licence held by Spiffbet. The brand extends Spiffbet’s reach in Finland, operating alongside its existing Supernopea.com and Turbovegas.com sites.

The relaunch marks the second new brand roll-out by Spiffbet in recent months. In October, the operator also launched Supersnabbt.se in the Swedish market. 

Spiffbet said both launches were managed with existing organisation and resources. This, it adds, means that they did not significantly increase fixed costs for the Spiffbet business.

“Following up the launch of Supersnabbt.se with a launch of Helmicasino.com is an offensive move in our focus on growth and increasing revenues,” Spiffbet CEO Henrik Svensson said. “In less than a month, our new agile organisation has managed to complete this launch.”

Further launches on the horizon for Spiffbet

Svensson added Spiffbet could pursue further launches over the next 12 months. However, he stopped short of saying which brands would launch and the markets they could target.

The business also counts Metal Casino, Cashmio, Supernopea, Buster Banks, Sir Jackpot, Live Lounge, Wishmaker, Goliath Casino, Bellis Casino, Turbovegas and Scandibet among its online brands.

“Hopes are high after the successful launch of Supersnabbt.se,” Svensson said. “We believe that Helmicasino will be well received by both players and affiliate partners. If this turns out well, we can look forward to more launches in 2024.”

The latest launch marks a strong end to a productive year for Spiffbet. Aside from also rolling out Supersnabbt.se, Spiffbet sold its game development business to Million Games back in August. The deal is worth up to SEK3.5m.

At the time, Spiffbet said the division has not contributed to its business for the past year. The segment has also been subject to a liquidation analysis.

Spiffbet also said the sale reflects a shift in focus from game development to online casino operations. Should the deal complete as expected, this would leave Spiffbet free to focus solely on running online casino brands.