Month: February 2024

Jade Luchauer, senior manager of global sustainability at IGT, discusses what initiatives the platform has implemented to encourage responsible gambling. The company is currently in its 17th year of reporting with the GRI on their annual sustainability report as well as an active member of the Science Based Target Initiatives scheme. From certifications in G4 and WLA to employee training, IGT is leading the way in what sustainable gaming should look like.

2023’s total was a 10% hike on 2022’s figure of $60.4bn, which in turn was a significant increase on the $53bn accumulated in 2021.

The strong numbers were aided by a record Q4. This included an all-time high quarterly revenue of $17.4bn, while a record $6.2bn in revenue was generated.

Land-based casinos continue to perform well with a record GGR of $49.4bn in 2023. This was up 3.3% year-on-year, with 19 of the 27 traditional gaming markets recording all-time highs in annual revenue.

Sports betting also demonstrated impressive growth, with $119.8bn in handle and $10.9bn in revenue – both records. These figures were up 27.8% and 44.5% respectively year-on-year.

With the National Indian Gaming Commission’s addition of tribal gaming revenue coming later this year, the US’ total GGR for 2023 is expected to approach $110bn.

Bill Miller, AGA president and chief executive, said: “From the traditional casino experience to online options, American adults’ demand for gaming is at an all-time high.

“Sustaining our momentum will take unified industry efforts around combating pernicious illegal operators and growing responsible gambling efforts in tandem with the growth of the legal market – both of which the AGA is committed to lead on throughout 2024.”

igaming looking increasingly attractive in US

Igaming is legal in just six US states currently. However, that number is expected to grow in the near future with the sector showing impressive growth.

2023 online casino revenue in the US was up 22.9% year-on-year, reaching $6.2bn. Igaming GGR was just $4.75bn behind sports betting GGR. This is despite igaming being legal in less than a sixth of the states as sports betting.

Online gaming made up 24.7% of nationwide GGR in 2023. Again, this is an annual high and up from 19.5% the previous year.

A number of states are looking at introducing igaming in 2024. One that looks unlikely to have it legalised this year, however, is New York after governor Kathy Hochul left igaming out of her 2025 executive budget.

This came despite New York state senator Joseph Addabbo’s filing of a revised igaming bill. Senate Bill S8185 built on Addabbo’s previous attempt to introduce online gaming in the Empire State.

Easing of igaming cannibalisation fears

Some quarters have previously believed that the legalisation of igaming can have a harmful effect on the performance of land-based casinos.

However, a fresh report commissioned by the iDevelopment and Economic Association (iDEA) has identified that online casino instead has a positive impact on land-based casinos.

The report compared the compound quarterly growth rates (CQGR) of land-based casino GGR before and after online casino was introduced. It noted each of the six states studied experienced a positive change in quarterly growth after igaming came into play.

EKG carried out a survey on casino operators, both land-based and online, as part of the research. It stated “the response from participants has been unanimous: cannibalisation has not been occurring”.

When asked about the impact online casino had had on land-based revenue, 20% of participants said it had “moderately increased”. Some 80% said it had “stayed roughly the same”.

To the question “How would you describe the impact the introduction of online casino has on land-based casino revenue?”, 100% of respondents said they did not believe cannibalisation fears are valid.

The 12 months to 31 December 2023 proved to be a solid year for Caesars. Revenue was higher across all divisions, with group revenue hitting $11.53bn (£9.12bn/€10.66bn). This growth also helped the group return to a net profit.

Despite the group’s optimism, though, Caesars only managed 0.1% revenue growth in Q4, with that stagnation to end the year perhaps marking an indicator of what is to come.

While down from the $0.66 loss per share in Q4 2022, Caesars still recorded a GAAP loss of $0.34 per share in the final quarter of 2023. Gross margin was also down 2.8% from Q4 FY2022.

The momentum of the company has taken a hit, with Caesars’ FY2022 and FY2023 failing to keep up with the impressive growth seen in the two years prior.

At market close on Tuesday, Caesars Entertainment was trading at $41.65 per share in response to the company’s Q4 and full FY2023 results, down 2.02% on the previous day’s close.

Caesars reported solid year-on-year growth across its Las Vegas and Regional operations. However, Caesars says the stand-out highlight for 2023 is the record performance of its digital division. Here, revenue was up 77.6% as the operator grew the business significantly across both online casino and sports betting.

The group also kept spending relatively level, allowing a net loss in 2022 to turn into a net profit and adjusted EBITDA to increase. Eric Hession, president of Caesars Sports and online gaming, focused on digital growth, highlighting record revenue and adjusted EBITDA for the division.

“The core icasino slot customer has responded positively to our significantly improved offering,” Hession said. “We’re pleased that the new product and brand resonate much better with our Caesars Rewards database than our casino associated with the sportsbook. 

“Igaming remains a critical component of our digital growth strategy for 2024 and beyond.”

Widespread growth for Caesars in 2023

Taking a look at the 2023 results, and beginning with group performance, casino revenue was up 6.2% to $6.36bn. Rooms revenue climbed by 6.8% to $2.09bn, food and beverage revenue 8.3% to $1.73bn and other revenue 5.7% to $1.34bn.

Turning to segmental performance, growth is clear to see. Caesar’s Regional division remains its core source of revenue, with this edging up 1.3% to $5.78bn for the year.

There was also growth in Las Vegas, with revenue rising 4.3% to $4.47bn. Caesars says this was helped by certain key developments during the year including the Nevada city hosting its first Formula 1 race weekend in November.

However, it was the Caesars Digital business that caught the eye in 2023, with revenue up from $548m to $973m. An additional $307m in revenue was reported from corporate and other activities, up 8.9% year-on-year.

Back in the black as net profit reaches $786m

While revenue increased, Caesars was able to keep costs down. In fact, operating expenses for the year were 0.3% lower at $9.06bn, while an additional $2.53bn of other costs were also reported.

This left a pre-tax loss of $60m, an improvement on the $565m loss in 2022, while Caesars also benefitted from an $888m tax benefit. After taking away $42m in net income from non-controlling assets, group net profit for 2023 was $786m, compared to the previous year’s $899m loss.

In addition, Caesars says its adjusted EBITDA for the year increased 21.7% to $2.92bn. 

Digital growth boosts Caesars in Q4

Alongside the full-year figures, Caesars also posted results for Q4, with the success of its digital business again the main headline for the operator.

Group revenue in Q4 was 0.1% higher at $2.83bn. This includes $1.58bn in casino revenue, rooms revenue of $509m, food and beverage revenue of $423m and $315m in other revenue.

Regional revenue edged up 0.5% to $1.36bn but Las Vegas revenue dipped 5.5% to $1.09bn. However, digital revenue jumped 28.3% to $304m, with managed and branded revenue down 5.6% to $68m.

Costs-wise, operating expenses were 1.9% lower at $2.29bn and other costs fell by 10.6% to $576m. This resulted in a pre-tax loss of $40m, compared to 2022’s loss of $156m.

Caesars paid $16m in tax and also discounted $16m in income from non-controlling assets. As such, it ended Q4 with a $72m net loss, an improvement on $148m in the previous year. 

However, adjusted EBITDA for the quarter was 2.8% lower at $930m.

“Our fourth quarter operating results demonstrated consolidated net revenue growth, reduced net loss and stable consolidated adjusted EBITDA year over year,” CEO Tom Reeg said.

Caesars acquires WynnBet igaming business in Michigan

Along with announcing these results, Caesars also confirmed the acquisition of WynnBet’s Michigan igaming business. It has also signed a long-term extension for igaming market access rights in the state with the Sault Ste. Marie tribe of Chippewa Indians

Caesars now gains access to the Sault tribe’s igaming skins, allowing it to operate additional digital brands in Michigan. Existing WynnBet customers will transition to Caesars’ Michigan igaming platform later this year, pending regulatory approvals. 

“As we continue to grow our igaming franchise, the assumption of WynnBet’s igaming operations in Michigan allows us to tap into a significant market and customer base,” Caesars’ senior vice-president and chief igaming officer, Matt Sunderland, said. “It provides a crucial step forward in growing our digital products and offering players more ways to play.

“We are honoured to work with the Sault Ste. Marie tribe of Chippewa Indians and look forward to growing with them in Michigan.”

WynnBet has been operating under the Wynn Interactive umbrella. However, Wynn Resorts, which owns Wynn Interactive, last summer announced a major reduction in its online brand WynnBet’s US footprint.

Initially, Wynn said it would cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia. Last week, it also exited Massachusetts and operations in New York remain under review, but it remains active in Nevada.

As for Caesars, tribal partnerships are not a new concept for the group. Last month, Caesars announced it will launch mobile sports betting in North Carolina after expanding its relationship with the Eastern Band of Cherokee Indians.

The operator is set to go live when North Carolina launches its online sports betting market on 11 March. Ahead of the launch, the Caesars Sportsbook app will start accepting sign-ups and deposits from 1 March.

Revenue was up from $464.4m in January 2023 but 10.7% behind the $534.2m generated in Pennsylvania in December. This revenue comprises land-based slot and table games, online gambling sports betting, video lottery terminals (VLTs) and fantasy sports.

Physical slots remain the primary source of gambling revenue in Pennsylvania at $179.5m, down 11.2% year-on-year. Land-based table games revenue also slipped 13.4% to $72.7m.

Slots drive online gambling growth in Pennsylvania

In contrast, the Pennsylvania online gambling sector reported more growth. During January, revenue from igaming amounted to $149.6m, up 12.4% from last year.

Online slots revenue reached $110.0m, a rise of 22.0%. However, online table game revenue fell 7.8’% to €36.9m, while internet poker revenue was almost level at $2.7m. 

Hollywood Casino at Penn National remains the market leader with $50.5m in total igaming revenue. Valley Forge Casino Resort ranked second with $41.6m, then Rivers Casino Philadelphia on $29.5m for the month.

Sports betting revenue rockets 77.9%

Turning to the sports betting market, total revenue here was up by 77.9% to $69.9m. This includes $66.0m in online wagering revenue and a further $3.9m from the retail sportsbook market.

In terms of handle, this reached $858.2m for January, an increase of 8.1% from $793.7m last year. Players spent $808.8m betting online and $49.4m at land-based locations. 

Valley Forge Casino Resort and FanDuel remain some way out in front in this market. During January, the partnership generated a total of $39.6m in sports betting revenue.

Hollywood Casino at the Meadows and DraftKings were a distant second with $19.0m, then Hollywood Casino Morgantown and BetMGM on $3.6m.

Elsewhere, VLT revenue in Pennsylvania amounted to $3.0m in January, down 9.1%. Fantasy sports revenue also edged down 3.9% to $2.5m.

Pennsylvania welcomes newcomers 

The Pennsylvania market could be set for further growth after it was confirmed that several new brands will launch.

Last month, Fanatics Betting and Gaming launched its sportsbook and online casino in the state. The Fanatics brand replaces PointsBet, with existing customers moving over to the new-look Fanatics platform.

Meanwhile, microbetting operator Betr last month entered into a market access deal for Pennsylvania. Betr’s agreement is with the Cordish Gaming Group, the gaming division of The Cordish Companies.

Betr also secures similar access deals in Colorado and Kentucky.

At PandaScore, we saw not only an increase in the total number of esports bets across our operator partners, but the total amount placed per bet also increased significantly. The average amount wagered per bet placed across 2023 was €45 – a 37% increase compared to 2021.

Total betting turnover also increased significantly. This was in spite of the broader esports sector undergoing a market correction that included reduced budgets and consolidation of professional teams.

Along with the growth in overall turnover, margin performance either maintained or improved upon previous years for many suppliers and operators.

The total pool of bettors has grown and they’re placing larger bets than before, with overall turnover continuing to grow year-on-year. The results from 2023 show that esports betting is a genuinely evergreen vertical that consumers have become more comfortable and interested in.

Let’s dive into them a bit more.

Which esports titles are popular for betting?

Counter-Strike’s popularity and strong betting culture mean that historically, it either dominates or accounts for a significant portion of total turnover every year. Responsible for 60.2% of total turnover for PandaScore’s clients, that is still very much the case. However, other esports segments are now growing and chipping away at Counter-Strike’s supremacy.

Namely, Dota 2 has firmly cemented its second-placed spot amongst bettors, while League of Legends (LoL) has experienced a dip in performance. The Chinese and Korean domestic LoL competitions have traditionally been very popular, with the North American League Championship Series (LCS) following closely behind. However, this year we’ve seen reduced viewership numbers for the LCS, and the volume of total bets have followed a similar trend.

The introduction of football Ebattles to the PandaScore offering has yielded some noteworthy results. Garnering 5.7% of total turnover for the year in its first year is an incredible start. However, there is always an important caveat with these fast-esports type titles: they’re largely EA Sports FC matches designed and marketed as quick esports matches for sports bettors.

They play a key role in the product suite of a sportsbook, but it’s important to note that the bettor profile for this segment is generally quite different from other esports titles.

Additionally, the shift to a shorter, sharper season in Valorant was always going to have interesting implications for betting. The good news is that Valorant is steadily continuing to grow in total turnover and is head and shoulders above the many other titles that make up esports’ long tail.

Valorant vs. the long tail

Aside from the big three esports titles of Counter-Strike, Dota 2 and LoL, it’s worth taking a more granular look at the other long-tail titles and how they shape up against Valorant.

Valorant’s popularity and growth as a budding new title is clear as day, with Call of Duty sitting atop the list of other esports titles. With US regulation rolling out on a state-by-state basis, Call of Duty is still a title to watch considering the entire professional scene is now based in the United States. Mind you, Valorant appears to be a trendy title in North America for esports fans, so it remains to be seen whether any other long-tail title will nip at the heels of the Riot Games first-person-shooter game.

Live betting runs the show

Over the past few years, we’ve seen bettors prefer live betting even more than previously, shifting from a 55-45 split to an even bigger slice – around the 65% mark. This follows similar trends in sports betting and is a strong indicator of improvements to the live betting experience, as well as innovations like betbuilders to capture greater interest.

Most popular competitions for esports bettors in 2023?

Echoing the overall turnover breakdown, the most popular competitions of the last 12 months are largely in Counter-Strike. It’s common to see ESL Pro League competitions this high, as they’re month-long seasons featuring 32 teams and a lot of matches. The Paris Major was arguably one of the biggest Counter-Strike tournaments ever, with hometown heroes Vitality taking the title in Paris.

The elephant in the room is the absence of any Dota 2 tournament in the top 10, including the penultimate tournament of the year, the International. Despite yielding a greater overall turnover for the year compared to LoL, the way the competitive season – the Dota Pro Circuit (DPC) – was structured meant there was an incredibly high volume of matches. This resulted in Dota 2 turnover being distributed across a much wider range of decently performing tournaments, as opposed to the big-ticket items in other titles.

Game publisher Valve is scrapping the Dota Pro Circuit (DPC) structure in favour of a more decentralised, grassroots structure. What this means for betting, only time will tell.

Pandascore sees positive signs for 2024

Valve’s upheaval of the DPC has resulted in some top-tier tournaments leading the charge and ESL stepping up to provide some wide-sweeping qualifiers.

The LCS is shifting back to weekends after mixed results with midweek matches – the weekend timeslot being incredibly popular with LoL fans and bettors alike. And considering the increasing legalisation of esports betting across different US states, we could see a bump in turnover and bet volume on the LCS.

Operators and suppliers remain bullish on Valorant, eager to find out if the newly established Partner Program yields improved stability, consistency and quality of the professional circuit. Greater league stability invariably leads to greater connections to teams and players, a key touchpoint for esports bettors when they place their wagers.

The first Major of the recently launched Counter-Strike 2 kicks off in March, and while this and changes to the competitive structure could lead to shifts in betting behaviour, it’s safe to say betting on Counter-Strike will continue to be strong across the board.

Better Collective’s 2023 revenue was up 21% year-on-year, on top of the 52% growth recorded the previous year. This exceeded its target of €315m-€325m that it revealed in its 2022 earnings. Recurring revenue stood at €189m, again up 47%.

Better Collective also saw a rise in EBITDA before special items, up 31% to €111m, again in the high end of its €105m-€115m objective. EBITDA margin was 34%, fitting with the group’s target of 30%-40% it set out in its 2022 report.

Jesper Søgaard, Better Collective founder and chief executive, said: “In 2023, a great team effort across the group secured a prosperous year marked by profitable growth, all while continuing our strategic investments to lay the foundation for the future.

“2023 stands out as a year where we made significant progress towards our vision of becoming the leading digital sports media group.”

Q4 2023 for Better Collective

Better Collective accumulated €85m in revenue during Q4, allowing the group to meet its 2023 revenue target. The group’s recurring revenue in Q4 was 15% up at €47m, with the company saying this implied “higher quality revenue”.

Group revenue for Q4 was €1m less than it generated in Q4 2022, with organic revenue growth of -7%.

EBITDA before special items stood at €30m for Q4, down 16% on 2022, though EBITDA margin was at 35%, finishing in the high end of the 2023 range. Better Collective pointed to the ongoing transition to revenue share in the US for its dip in EBITDA before special items.

The group’s January trading saw revenue dip 27% to €27m. Better Collective put this down to tough comparisons from its successful launch of sports betting in Ohio last year, with January 2023 Better Collective’s strongest ever month.

As a result of sizeable fluctuations seen within quarters such as Q4 2023, Better Collective says it will no longer report on trading for the first month of the following quarter.

Better Collective’s new depositing customers (NDC) for Q4 were 17% down at 483,000, though the group cited the 300,000 NDC during the 2022 World Cup as the reason for the drop. Of the 483,000, 115,000 were sent in the US. In total, Better Collective sent a record 1.9 million NDC during 2023, up 14%.

Cash flow from operations before special items was €38m, up €17m from Q4 2022’s figure of €21m. By the end of 2023, Better Collective’s capital reserves were €122m, made up with €43m in cash, other current financial assets of €7m and unused credit facilities of €72m.

Better Collective’s acquisitions in FY2023

Following the close of Q4, Better Collective acquired Playmaker Capital for €176m in the group’s second largest deal ever. The company believes this will strengthen its North American position as well as give it “market leadership” in South America.

Following the close of the Playmaker Capital deal, Better Collective revised its 2023-2027 targets, raising its EBITDA margin before special items to a 35%-40% objective from 30%-40% previously.

Revenue compound annual growth rate (CAGR) and net debt to EBITDA targets remained at +20% and below 3x respectively.

Also following the close of Q4, Better Collective announced BLS Capital Fondsmæglerselskab A/S as a new major shareholder with 6.7% of the voting rights. The group is also now included on Nasdaq Stockholm and Nasdaq Copenhagen.

2024 targets

Better Collective’s strong 2023 has meant it has raised its 2024 financial targets, with an objective to reach €390m-€420m, implying growth of 19%-29%.

It’s also eyeing growth of 13%-22% in its EBITDA, looking to generate €125m-€135m, while Better Collective is also hoping to keep net debt to EBITDA below 3x.

Better Collective has factored in an 11-month impact from its Playmaker Capital acquisition, though it said it expected that deal to produce flat revenue and earnings for 2024. However, it believes the acquisition will “ramp up over time”.

For the fifth market analysis in the Slot Trumps series we’re focusing on a market that took decades to regulate and is yet to fulfil its true potential.  

Germany’s legislative journey started with an online ban in 2008. Fast forward 13 years and the 2021 Interstate Treaty on Gambling created a comprehensive online betting and gaming market, while the establishment of the Joint Gambling Authority (GGL) in 2023 marked yet another milestone.

But by setting online slots apart from other casino games, regulations pose a unique challenge for licensees in Europe.

Today, despite improvements in conditions for both players and the industry, regulatory requirements continue to shape player behaviour, as our findings show.

But the data from the Slot Trumps Germany report offers some guidance as to how operators can keep players safe – and engaged – in this intricate market.

Compliance is king

Understanding and complying with regulatory issues is crucial in markets such as Germany, where players face restrictions on simultaneous game playing and spin delays on online slots.

Additionally, a monthly deposit cap of €1,000 applies universally, irrespective of income, along with a €1 maximum stake limit on slots.

Such regulatory issues mean operators must integrate solutions to offer players complete control over the gameplay window on both desktop and mobile.

Our CasinoEngine productivity platform, for example, offers the possibility to develop market-specific functionalities. We aim to ensure operators remain compliant at all times, even when regulation changes.

CasinoEngine’s UI communication framework features real-time notifications aligned with regulatory and safer gambling requirements. Brands can enhance the gameplay window with additional buttons such as quick deposit, cashier functions, gameplay information, gamification features and more.

This is complemented by precise, real-time reporting. Upon game launch, CasinoEngine enables operators to access wallet and detailed session data, including gambling notification intervals, session times, session information (stakes/winnings) and user details.

Slot Trumps: Localisation key for complex markets

In our experience, as the largest aggregator in the industry, localised content makes a huge difference in markets with intricate regulations.

Players gravitate not only towards games that resonate with their cultural preferences, but also towards specific game features that allow them to have more fun or access more gameplay.

In Germany the regulatory environment makes players gravitate towards specific games, due to the max bet cap which influences the average bet on slots. This leads to an average bet level of €0.52 per spin, approximately 50% less than the global average within our SlotMatrix network.

This can also be correlated with the game mechanics preferred by German players. Traditional features, such as in-game free spins, reign supreme with 85% of the top 20 games in the SlotMatrix network offering this option. When spins don’t count towards the limits imposed by regulation, they offer a way to keep players engaged for longer.

Slot Trumps shows German regulations’ impact

For one of the largest markets in Europe, regulations are pushing down average sessions per player across the top 20 slots. With 4.8 sessions per 90 days, Germany is 20% lower than Greece (6.2), another regulated European market in the Slot Trumps series that has gone through changes in recent years.

What’s more, German players place an average of 30% fewer bets per session (59) every 90 days than Greeks (73.8) and 50% fewer than Romanians (109) on the top 20 games in our findings.

To tackle such a complex environment, our content aggregation division, SlotMatrix, serves as a solution that allows brands to select the optimal games for each market by theme, game mechanics or vendors.

Supported by CasinoEngine and its flexibility and personalisation functionalities in terms of lobby management, operators can precisely target player segments, presenting them with games tailored to their preferences. The platform also allows for the continuous addition of new content and timely presentation of relevant titles.

Safer gambling mechanisms for Germany

A key element of Germany’s regulatory framework is its commitment to protecting players from harm. At EveryMatrix we prioritise the design and delivery of technologies, tools and products that align with regulatory and safer gambling requirements. And our commitment extends across all markets where we collaborate with more than 300 global customers.

We are proud to say that, following a rigorous audit process, we became the first igaming supplier to receive World Lottery Association (WLA) Safer Gambling certification in Sept 2023.

Embedded within our environmental, social, and governance (ESG) policy is an enhanced Safer Gambling strategy. This strategy ensures that our 900+ employees spanning 13 global offices, alongside our clients, have access to the necessary tools and are fully informed about the latest research.

This comprehensive approach aims to enable responsible and ethical operations across our organisation and extends to our partners, offering reliable and responsible support in markets such as Germany.

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

Announced yesterday (19 February), the inquiry will run for 15 weeks, with a final report due by 31 May. Adam Bell SC, who undertook the first Bell report, will lead the inquiry, looking at how Star has implemented recommendations from the first inquiry.

In the wake of the announcement, Star requested a trading halt on the Australian Securities Exchange (ASX). 

The operator has now also confirmed it will delay reporting its results for the first half of its 2024 financial year. Star had been due to report the results tomorrow (21 February) but this will now be pushed back. The operator says it will provide an updated release date in the coming days.

Star: Inquiry will provide an objective forum

Reacting to the inquiry, Star says it welcomes the decision from the NICC. Star says that the inquiry will offer an “objective forum” to demonstrate it can return to licence suitability in NSW. It was declared unsuitable to hold a casino licence in the state in September 2022.

“Star intends to participate in the inquiry in an open, transparent and facilitative manner,” it said. “Further, while noting the inquiry is expected to run over the next 15 weeks, a critical period for Star in executing against its multi-year remediation plan, Star will dedicate all necessary resources to the inquiry to ensure it meets all its requirements and expectations.

“Finally, Star notes under the inquiry’s terms of reference it is considering the suitability of Star Sydney to ‘be concerned in or associated with the management and operation of Star casino in Sydney’.” 

In addition, Star referenced how the NICC is giving it “every chance” to demonstrate it has capacity to achieve suitability. Star says it will provide all the information necessary for the regulator to decide its future in NSW.

“Star appreciates the opportunity to demonstrate it has the ability to regain suitability,” the operator said. “We will continue to do all in our power to work cooperatively with regulators including the NICC and its appointed manager. 

“Star remains committed to and focused on executing its remediation plan and earning back the trust of the community.”

Second ring of the Bell for Star

As to what the second Bell report will cover, there are several key focus areas.

As well as examining the fallout of the first report, the second inquiry will look at the culture at Star. This includes risk management culture and management and reporting lines.

The inquiry will also consider whether Star has been able to secure the financial resources needed to support Star Casino.

Adam Bell SC’s first report outlined anti-money laundering and social responsibility failings at Star Sydney stretching back years. One year later, a report into Star Sydney’s progress found the casino had implemented 22 of 30 recommended measures from the initial report.

The report ultimately led to it being declared unsuitable for a licence in NSW. However, Star also faces uncertainty in other states, including a similar suspension in Queensland, four class actions and a potential AUSTRAC fine. Most of these relate to connections to Chinese junket operators.

Impact of regulatory decisions on financial performance

Understandably, regulatory action has impacted Star’s financial performance. For Star’s 2023 financial year, it posted a net loss of AU$2.4bn (£1.25bn/€1.46bn/US$1.57bn).

At the time, Star noted $2.8bn of outgoings labelled “significant items”. These related to the series of fines the operator faced. 

They include a $2.2bn non-cash impairment for Sydney, Gold Coast and Treasury Brisbane goodwill and property assets. In addition, it noted regulatory and legal costs of $595m, debt restructuring costs of $54m and redundancy costs of $16m.

Those costs, minus a positive and growing EBITDA of AU$317m, meant an after-tax loss of AU$2.4bn.

The impact of the decisions on Star’s performance in the most recent H1 will be stated in the delayed results announcement.

Igaming dashboard powered by H2

iGB’s principal data partner H2 Gambling Capital provides headline metrics on the global igaming market, with forecasts now extended to 2028.

Last updated 03/10/2023

Issued by Danish regulator Spillemyndigheden, the new licence clears NetBet to offer online casino in Denmark. The operator is now active in the country, with players able to access a range of games.

Active in Denmark via NetBet.com/dk, the operator is offering players slots, casino and live casino content. This includes games and titles from partners Push Gaming and Pragmatic Play.

Push Gaming slot content includes Razor Shark, Goat Getter and Boss Bear. Players can also access Pragmatic Play games such as Gates of Olympus, Sugar Rush and Sweet Bonanza.

“We’re excited to launch in Denmark,” NetBet Denmark PR manager Claudia Georgevici said. “Opening in this market is an important next step for our brand as we look to open in more licensed territories within Europe. 

“Our extensive experience of creating exciting and rewarding online casino experiences with our players will be great for our new customers. We look forward to welcoming them to our team.”

NetBet is also active in several other major markets including the UK and Italy. Last summer, it was also added to Germany’s list of approved operators, allowing it to offer slots in the country.

Study flags concerns over bonuses on unlicensed sites in Denmark

NetBet joins a roster of other operators to have secured approval in Denmark. However, the country still faces challenges in terms of unlicensed activity.

Last month, a study found those who deliberately gamble on unlicensed sites are fuelled by higher repayment and bonuses, as well as the different types of games on offer.

Contrastingly, participants cited control and supervision, credibility and the availability of the Danish language as reasons for gambling with licensed sites. The study was based on an online survey, created by Spillemyndigheden in collaboration with Statistics Denmark. Results are based on a net sample of 30,070 people. 

Key findings include of those who had played online within the previous 12 months, 2.1% said they knowingly played on unlicensed sites. This rises to 3.8% when accounting for those playing on sites that do not have permission to offer gambling in Denmark.

A total of 8.6% of players are unaware whether the sites they played on are licensed.