Month: February 2024

Submitted last month, the plan states Inspired will file a 10-Q form for Q3 2023 with Nasdaq by 28 February.

Inspired is also working to complete a 10-K/A for the year ended 31 December 2022, with restated financial statements. In addition, it aims to complete Forms 10-Q/A for Q1 and Q2 of 2023 by the same date.

Nasdaq has accepted this plan, paving the way for Inspired to regain compliance and move past the episode. 

How did Inspired lose Nasdaq compliance?

Nasdaq contacted Inspired in November over the late filing of its Q3 2023 results. Inspired previously said it needed more time to complete the results, with work ongoing to restate certain previously issued statements.

Nasdaq contacted Inspired over the issue saying the late filing places it in breach of its rules. The stock exchange gave Inspired until 22 January to submit a plan to regain compliance, or risk having its shares de-listed.

Inspired missed the deadline by one day, formally filing its proposed plan on 23 January.

Going into detail as to why the filing was late, Inspired noted several concerns. These include accounting errors relating to compliance with US GAAP, connected to accounting policies for capitalising software development costs. 

Inspired says errors were flagged in financial statements for financial periods commencing 1 January 2021. As such, the statements can no longer be relied upon and should be restated.

The provider also said any other statements after that date featuring financial information can no longer be relied upon.

Inspired seeks to ease investor concerns 

Having identified “material weaknesses” in internal control over financial reporting, Inspired is now working to address these issues. In line with the plan, Q3 figures should be made available before the end of the month.

Meanwhile, Inspired sought to allay investor fears over the issues. It said it does not believe the planned changes will impact its cash position or business plan. 

Inspired has not released any financial results since August 2023, when its Q2 and H1 figures were published. These revealed a 12.3% rise in Q2 revenue to $80.1m (£63.8m/€74.5m) amid growth across all business areas. 

Higher spending pushed net profit down 85.4% to $2.3m, but adjusted EBITDA was up to $26.2m.

In terms of H1, revenue was 11.0% higher at $146.4m but net profit fell 53.6% to $3.9m in the six-month period.

Broville was handed a provisional suspension by the ITIA in June last year in relation to the anti-corruption case. He has not been able to compete in or attend any sanctioned tennis events since 20 June 2023.

The case relates to charges of match-fixing in in 2017 and 2018. Broville, who held a career-high world singles ranking of 708 in 2023, denies these charges.

According to the ITIA, Broville did not co-operate with its investigation. He also refused to submit personal devices for examination when asked to do so as part of the probe. These are in breach of F.2.b and F.2.d of the Tennis Anti-Corruption Programme (TACP).

The ITIA has now elected to proceed with a full suspension, with Broville also ordered to pay a €5,000 (£3,982/€4,650) fine. This will include time served under the provisional suspension, meaning Broville cannot play professionally again until 19 June 2030.

Tennis suspensions continue to mount up 

Confirmation of Broville’s suspension is the latest sanction from the ITIA in recent weeks and months.

Last week, Bosnian official Damjan Dejanovic was provisionally suspended in relation to pending corruption charges. The ITIA banned also Bulgarian official Stefan Milanov for 16 years after he was found guilty of corruption offences.

Meanwhile, the ITIA has handed out bans and suspensions to players over links to a criminal case over a wider match-fixing case in Belgium. Collaboration between the ITIA and Belgian authorities led to a five-year custodial sentence for syndicate leader Grigor Sargsyan.

An initial 16 players were banned during Sargsyan’s conviction in November. Since then, the ITIA has taken similar action against other tennis players.

These include French player Leny Mitjanam who was banned for 10 years after being found guilty of corruption and match-fixing offences. Tunisian player Anis Ghorbel was also banned for three years over his role in fixing matches in 2016 and 2017.

Total revenue was comfortably ahead of the €195.8m reported in Lithuania in the previous year. The national regulator, the Gaming Control Authority, detailed online growth while land-based revenue was slightly lower in 2023.

Online gambling generated €148.4m in revenue during 2023, up by 22.0% year-on-year. In contrast, land-based revenue reached €73.8m, which was 0.4% behind the previous year’s total.

Lithuania online slots revenue exceeds €100.0m 

Breaking down the yearly performance, online slots were by far the main source of gambling revenue in 2023. Total revenue from internet slot games amounted to €100.5m, up 28.5%.

Category A online slots revenue amounted to €97.1m and Category B games €3.4m.

Elsewhere, online sports betting revenue was 1.2% higher at €35.3m in 2023. Internet table games revenue also increased by 46.5% to €12.6m for the year.

Sports betting decline hits land-based sector in Lithuania

Turning to land-based gambling, slots were again the main revenue source for operators in 2023. However, total slots revenue was 0.9% lower at €46.3m.

Of this total, €31.3m came from Category B games, down from €31.3m in 2022. The other €15.0m was generated by Category A slot machines, up 4.9% year-on-year.

Land-based table games revenue was up 5.2% to €18.3m but retail sports betting revenue slipped 8.1% to €9.1m for the year.

Lottery revenue rises 17.6%

The Gaming Control Authority also reports lottery figures, albeit separately from the other two markets in Lithuania.

Lottery gross gaming revenue in 2023 was 17.6% higher at €66.3m. This was despite ticket sales falling 7.4% to 100.5 million over the 12-month period.

Players won a total of €74.9m from lottery games, down 5.0% on the previous year. The lottery figures cover operators offering larger lotteries to players.

As for tax, €67.0m was collected in 2023. Of this, €43.7m came from gambling operators and €23.3m big lottery organisers.

The Honorable Brian Krolicki, vice-chairman of the Nevada Gaming Commission, talks to ICE VOX about embracing technology and working with big brands as the gaming world evolves.

Corey Plummer, chairman and CEO of Olympic Entertainment and OlyBet Group, talks to ICE Vox about the black market in Europe and how to make gambling safer for consumers.

White Star, part of Rhino Entertainment Group, has secured a new licence in Curaçao for its CasinoDays. Meanwhile, Games and More, Geeka Corporation and Small House now have Digital Seals.

Confirmation of the licence comes just 12 weeks after Curaçao launched a licensing process for the new regime. A portal to register opened in September but applicants could not register until 1 November.

The portal has been processing new applications under existing legislation with the GCB and to register all sub-licensees that want to keep operating after the National Ordinance for Games of Chance (LOK) is enacted. 

After the LOK takes effect, the new Curaçao Gaming Authority (CGA) will come in.

“2024 heralds a transformative period in the regulatory landscape of Curacao’s gambling sector,” new GCB managing director Cedric Pietersz said. “Since opening our doors to applications less than 12 weeks ago, the volume of submissions has far exceeded our expectations. 

“White Star’s licensure holds a special place in our hearts and history. It signifies a pivotal moment for Curacao’s evolution into a top-tier gambling jurisdiction with many more licences in process.”

Rhino CEO Ross Parkhill added: “Being the first to receive this direct licence is not only a privilege but a thrilling endorsement of our commitment to excellence and responsible gaming. 

“We wholeheartedly support Curacao’s enhanced regulatory processes, recognising the added value and prestige it brings to our licence. We look forward to fostering an open and communicative relationship with the GCB, ensuring a bright and compliant future for online gaming.”

Clearing up confusion in Curaçao 

While there is much support for the changing regime in Curaçao, there remains some sense of confusion. At present, Curaçao operates under the current National Ordinance on Offshore Games of Hazard (NOOGH) legislation, but this will be changed by LOK.

Last month, reports surfaced that the LOK, which entered parliament in December, had been rejected. However, these reports proved to be false.

Subsequently, Javier Silvania, Curaçao minister of finance, released a statement condemning the rampant “misinformation” surrounding the LOK. 

Silvania made two clarifications about the process. The first warns against misinformation while the second confirms the GCB’s licence issuing process remains the same.

To help clear up confusion, iGB delved into the process, explaining how legislation moves through the jurisdiction’s parliament.

Financial details of the deal were not disclosed but Allwyn did say it expects to complete the purchase in H2. Allwyn will finance the investment using its existing financial resources. 

IWG supplies online instant win games to more than 25 national and state lotteries around the world. The IWG portfolio of content currently includes over 250 titles. For the year ended 30 April 2023, IWG posted £18.2m (€21.3m/$22.9m) in EBITDA.

“Allwyn’s agreement with IWG will enable us to create and leverage high-quality content throughout the group,” Allwyn chief investment officer Stepan Dlouhy said. “This demonstrates our ambition to deliver the best user experience to players across our international markets and to be the operator of choice.”

The Allwyn deal states IWG co-founders Rhydian Fisher and Simon Bucknall will remain in their current roles with the developer. Fisher will continue as CEO and Bucknall as chief operating officer.

“Rhydian and Simon bring a wealth of sector knowledge and creativity,” Dlouhy said. “We are excited to collaborate and explore new opportunities.”

Fisher added: “We are thrilled to be partnering with Allwyn to take IWG’s success and proposition to the next level. Allwyn’s deep expertise and knowledge of the lottery consumer will help us to deliver immediate and significant value for our existing partners, while this step will also create new opportunities for the brilliant games our team develops.”

Allwyn bulks up with another acquisition 

The deal comes after Allwyn last week officially took control of the UK National Lottery. Allwyn replaces Camelot, assuming responsibility for all National Lottery operations and products.

In securing the fourth licence, Allwyn saw off competition from a number of heavy hitters. Rival bids included Camelot, which had run the lottery since its launch in 1994, as well as The New Lottery Company, owned by Health Lottery operator Northern and Shell and Italy’s Sisal.

Camelot will, however, remain part of the National Lottery family. This will be through its inclusion in the enlarged Allwyn business after several acquisition deals.

Allwyn purchased Camelot UK in February 2023 and Camelot Lottery Solutions (Camelot LS). The latter is a US-facing business that has since been rebranded as Allwyn North America to reflect the purchase. 

The Camelot UK deal allowed Allwyn to fully prepare for taking control of the lottery. In essence, the Camelot UK acquisition granted Allwyn insight into the operations of the lottery ahead of it assuming its new responsibilities.

In related news, Scientific Games last week revealed details of “strategically planned milestones” to support Allwyn with operating the National Lottery.

Scientific Games said it has been working with Allwyn to prepare for the handover of responsibilities. Initiatives will see Scientific Games focus on growing the lottery responsibly and minimising environmental impact.

Net revenue was 75% higher year-on-year following growth across all core businesses within EveryMatrix. EBITDA, meanwhile, jumped 155% to €60m for the 12 months to 31 December 2023.

Casino remained the primary source of revenue for EveryMatrix by some distance. However, there was also growth within the sports betting segment, as well as across the platform and affiliate divisions. 

EveryMatrix CEO Ebbe Groes openly praised the annual results. He said to improve on what he described as “phenomenal” results in 2022 was a huge achievement for the group.

“2022 was phenomenal but this year’s numbers are mind-blowing,” Groes said. “Every business unit and every one of our employees has contributed to a stellar set of financials proving we really are among, if not, the industry’s fastest-growing igaming technology supplier.

“Our growth acceleration from 2019 to today is staggering, while crucially we continue to deliver huge returns for our customers. 

“Particularly pleasing has been the development of our OddsMatrix technology where the team’s hard work has paid off in both winning and delivering to some of the largest operators in Europe. The last 12 months have propelled OddsMatrix to joining the ranks of the industry’s largest sportsbook providers.”

Casino revenue rockets 86% at EveryMatrix

Breaking down the full year performance, casino activity accounted for €54.7m of annual revenue, up 86%. EBITDA for casino was also 162% higher year-on-year at €32.3m.

This was helped by an increase in casino vendor integrations and roll-out of new games. In total, casino content went live with 98 new operators during 2023.

As for sports betting, revenue jumped 51% to €29.1m and EBITDA 103% to €13.5m. It was noted that the number of bets also jumped 96% year-on-year and available live events 31%. Average sports bets per day reached 234,000.

Elsewhere, platform revenue almost doubled to €25.7m, with EBITDA surging by 344% to €12.5m. Average transactions per day were also higher year-on-year.

Finally, affiliate revenue climbed 39% to €4.4m. However, EBITDA for this segment slipped 21% to €1.2m. Affiliates net gaming revenue on PartnerMatrix increased 77% to €326m.

Record Q4 boosts 2023 figures

Full year performance was helped by a record Q4. Revenue for the final quarter of the year was 87% higher at €36m. EBITDA for the quarter was also 194% up to an all-time high of €20m.

Casino revenue in Q4 jumped 101% to €17.9m, with EBITDA 212% higher at €11.4m. For sports betting, revenue climbed 69% to €9.1m and EBITDA 178% to €4.9m.

Elsewhere, platform revenue for the quarter was 91% higher at €7.9m and EBITDA 283% up to €4.0m. Affiliate revenue also increased 39% to €1.3m but EBITA fell 89% due to product and commercial investment.

“Our progress shows no signs of slowing with investment in PlayMatrix; an exciting new live casino product, new technologies, innovations, and new tier-one customers in the pipeline, while we are closing in on our 1,000th employee at the same time as opening a state-of-the-art, purpose-built headquarters in Bucharest,” Groes said.

“The future is very bright for EveryMatrix in 2024 and beyond.”

iGB and EveryMatrix have covered several countries in the Slot Trumps series. Last month, iGB reflected on what we have learnt about the markets covered. 

Tomic said during his tenure as CEO Alea became a truly global business with operations stretching across Latin America, Africa and Asia. 

“It is now time for me to take a new role in the industry,” he explained. “I plan to share the insights I have gained along this journey with my peers and take a positive leadership role within our sector at a time of great change.”

Alongside this ambassadorial role he will focus on strategic projects at the supplier.

Sendra, COO since 2021, joined Alea after working in industrial manufacturing and business consultancy. 

Taking on the CEO role was “a natural progression” as Tomic moved into his strategic role, Sendra commented. 

“I’m looking forward to building on the work Alex and our team have done.”

Alea looks outside gaming for new talent

Ramon Glieneke joins Alea as Sendra’s replacment in the COO role. He comes from Apartum, an aggregation business in the travel industry. 

Sendra pointed out Glieneke’s “extensive experience and profound understanding of API aggregation” as a particular benefit for the supplier. 

As he outlined in a series of video interviews with iGB in 2023, Tomic advocates for gaming businesses looking beyond the industry for new hires.

“One of my core goals at Alea has been to create a welcoming environment that prioritises the wellbeing of the staff, and by doing so make the gaming industry more attractive to professionals in other sectors,” Tomic explained.

“With Ramon Glieneke joining as our new COO, Alea continues this proud heritage of bringing outside talent into the igaming industry.”

Hear from Alea’s new CEO Jordi Sendra, as he discusses its global ambitions in last year’s video series.

The comment was made at the ECA Opening: Global Associations panel at the International Casino Conference. The panel was moderated by Tom Nieman, principle of Apollo Gaming Group.

The panel also featured Erwin Van Lambaart, chairman of the European Casino Association and Ernest Stevens Jr, chairman of the Indian Gaming Association.

Miller was outlining how the expansion of a number of major US operators to other markets has worked out positively.

“The American Gaming Association, our principle focus is on American gaming, mostly US, but certainly… in the American Gaming Association, we have some tribal members who are exporting what we would call the American blueprint to other places,” he explained.

“Certainly, Macau is a great example of three large American operators – MGM, Wynn, Sands – who had a vision to take Macau and expand it to what it is today, which is arguably the largest gaming epicentre in the world.”

US gaming growth shown worldwide

This growth is also being seen as far as the Middle East, Miller continued.

“We continue to see year-on-year growth within the confines of the US, but we are also seeing continuing growth in places – this past summer I was in Dubai, where Wynn is in the process of building what will be the first casino in the Middle East,” he continued.

“Certainly, this kind of American model – whether it’s commercial or tribal – is something that we believe is a successful long-term endeavour, which has shown itself to be very successful in the US, and also successful around the world.”

Van Lambaart spoke about Europe’s recovery from the Covid-19 pandemic, which he said has required prioritisation – but has been an overall success.

“Like many continents, during the pandemic, we had a really horrible time,” said Van Lambaart. “Our first focus has been to come out of that and make the industry stronger.”

“We organised and innovated at the same time, which I think a majority of our members and casinos have been quite successful at. It’s the same situation with us in Europe.”

However, he admitted that this innovation is “quite problematic”, adding that “in general, regulators don’t like innovation that much”.

Elsewhere, Van Lambaart declared inclusivity as “absolutely crucial” for the industry, adding that “new talent needs new role models”.

“We have a responsibility to our communities”

Meanwhile Stevens was emphatic about the responsibility tribal gaming associations have towards those who choose to play with them.

“We have a responsibility to our communities,” he stated From day one – regulation. Day one – security. Day one – responsible gaming.”

“All those things are right there for us to move forward and analyse and get better and stronger at. We’re constantly scrutinising the world around us, not just to create a better tomorrow, but also a safer tomorrow.”

Along this thread Stevens also spoke of the importance of participating in the upcoming US presidential election.

“Right out front, the presidential election in the fall,” Stevens continued. ”That’s really important. The trade association is non-partisan, so we don’t get involved in one side of the aisle or another.

“But we get our people and employees to the polls in the next election coming up, believing the Indian country really has to be strong.”

ICE Vox takes place 5-8 February.