Month: February 2024

Total gambling revenue in New Jersey for January reached $559.1m (£442.9m/€518.4m). This was 28.0% ahead of $436.9m in January 2023 and 7.1% higher than $522.2m in December last year.

Land-based casinos remain the primary source of gambling revenue in New Jersey. During January, revenue here stood at $205.0m, down 3.1% year-on-year. 

Physical slots, traditionally one of the main money-makers in New Jersey, saw revenue slip by 5.8% to $143.0m. However, land-based table games revenue edged up 3.7% to $62.1m.

Igaming closes the land-based gap with record January

While the land-based market faltered in January, the situation in igaming could not be more different. Revenue from igaming in New Jersey reached $183.3m, up 19.9% year-on-year and a new monthly record.

Online slots accounted for $180.8m of all revenue here, a rise of 20.4%. However, revenue from internet poker slipped 8.2% to $2.5m.

Golden Nugget remains the igaming leader in New Jersey with $52.2m in revenue in January. Resorts Digital ranked second with $49.3m, then Borgata with $42.0m.

New Jersey sports betting market continue to grow

Turning to sports wagering and more records fell in January. For the month, revenue from sports betting hit a record $170.8m, up 136.1% from $72.3m.

This was driven by an all-time high spend by players. Total handle for January was $1.72bn, a 5.3% increase from last year. Online betting spend reached $1.67bn, with retail at $47.4m.

Meadowlands and partners FanDuel, PointsBet and SuperBook remain the frontrunners with $113.0m in revenue. Following in a distant second was DraftKings and Resorts World on $40.3m, then Borgata and BetMGM with $8.0m.

Could New Jersey be set for a new record in 2024?

The January results place New Jersey in a strong position to break yearly records in 2024. For the past year, the state posted all-time high figures for several areas, including total revenue of $5.78bn.

Igaming revenue here reached $1.92bn, a new record and 15.7% higher than in 2022. As for sports betting, revenue also hit a new yearly high of $1.01bn, up 31.9% from 2022 and the first time the state surpassed the $1.00bn mark. 

Arrests were made by the National Capital Region Police Office and Anti-Cybercrime Group of the Philippine National Police. The arrests follow a raid in Parañaque City and support a wider effort by Pagcor to combat illegal gambling.

The probe focused on Tbb888.com, a site identified by Pagcor as offering online gambling illegally. Games available on the sire include slots, casino and esports betting.

During the raid, authorities seized computer sets, mobile phones, tablets, laptops and flash drives. The confiscated gadgets were found to contain evidence of the group’s illegal online gambling activities.

Pagcor also noted that the raid took place in the BF Northwest Subdivision. This, the regulator added, is an affluent area home to prominent political and business leaders in Parañaque.

Pagcor senior vice-president for security and monitoring cluster, Raul Villanueva, said cases will now be filed against the suspects before the Parañaque Regional Trial Court.

“The operation was part of our unified efforts to intensify the fight against illegal online gambling,” Villanueva said. “We have a marching order from Pagcor chairman Alejandro Tengco to put a stop to these illegal activities.

“We will continuously collaborate with law enforcement authorities to put a stop to these.”

Long-term commitment to tackle illegal gambling 

Villanueva took the opportunity to reiterate Pagcor’s commitment to combating all forms of illegal online gambling. 

He said at one point almost 5,000 illegal websites were active in the Philippines. However, the efforts of Pagcor mean 80% of these sites have now been blocked.

“We need to consistently monitor and report them to authorities not only to protect the bettors but to also ensure that revenues from regulated gaming are channelled back to the government for its nation-building programmes,” Villanueva said.

“We advise the public to stop patronising illegal online gaming sites and instead play on legal platforms to protect themselves. Unfortunately, most of the victims of these illegal sites are Filipino bettors.

“We are also working closely with the Cybercrime Investigation and Coordinating Center under the Department of Information and Communications Technology because we have a lot more targets under surveillance.”

Pagcor slams privatisation “disinformation”

The arrests come after Pagcor last week criticised “disinformation” over a rumour it will spend ₱500m (£7.1m/€8.3m$8.9m) to repair its Casino Filipino branch in Angeles City ahead of privatisation.

The rumour spread from a post from Pagcor employee Gian Samson. In the post, Samson said Pagcor would improve the casino for potential buyers, who may want to purchase it after it has been privatised.

Tengco denied the rumour, stating Pagcor would not spend any money on the renovation.

Adam Bell SC – who famously undertook the first Bell report – has been appointed to conduct the second inquiry, entitled Bell Two. It begins today (19 February) and will run for 15 weeks. The deadline for the final report is 31 May 2024.

Philip Crawford, chief commissioner of the NICC, said the second Bell report would examine how Star has attempted to implement the recommendations from the first Bell inquiry.

“Bell Two will bring us back to the Bell report and The Star’s efforts to regain its casino licence in the shadow of that report,” he said. “There is much at stake for The Star, so the NICC is giving the casino every chance it can to demonstrate whether it has the capacity and competence to achieve suitability.

“The inquiry will provide the NICC with the information needed to make an important decision for The Star, its employees, its stakeholders and the wider community.”

What will Bell Two cover?

In a statement released today, Star confirmed that it had been advised about the second Bell report.

As well as examining the fallout of the first Bell report, the second inquiry will look at the culture at Star, which will include risk management culture and Star’s management and reporting lines. It will also examine whether Star has been able to obtain the financial resources needed to support The Star Casino.

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

The blow comes as Star works to recover its reputation in NSW. It was declared unsuitable to hold a casino licence in the state in September 2022.

Star also faces a similar suspension in Queensland, as well as four class actions and a potential AUSTRAC fine. Most of these relate to connections to Chinese junket operators.

Trading halt

Star said the immediate trading halt request was related to contact today from the NICC. At the time of this statement, the operator did not disclose any further information about this inquiry.

It did, however, request that the trading halt remain in place until it releases further details about the inquiry, or 21 February, whichever comes first.

Star adds that it expects the trading halt request to be granted by the ASX.

Star agrees jobs guarantee deal in NSW

Contact from the NICC comes just days after Star struck a jobs guarantee deal in the state. Agreed last week, the binding deal requires Star to maintain a minimum headcount at its Sydney operations.

Under the same agreement with NSW treasurer Daniel Mookhey, Star will also begin a trial of cashless and carded play at its Sydney casino. This is a precursor to reforms due later this year in NSW.

In August last year, Star also secured concessions on casino duty rates with the NSW state. It has since worked on a transition plan to stabilise operations at its Sydney casino and curb further cuts.

Impact on financial performance

Regulatory action has, understandably, had an impact on Star’s financial results. Last August, Star announced a full-year loss of AU$2.4bn (£1.24bn/€1.46bn/US$1.57bn).

Star noted $2.8bn of outgoings labelled “significant items” in the year. These were linked to the series of fines the operator faced.

A $2.2bn non-cash impairment was reported for Sydney, Gold Coast and Treasury Brisbane goodwill and property assets. There were also 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.

Revealed today (19 February), the document follows the offer FDJ put forward last month, valuing Kindred at SEK27.96bn (£2.12bn/€2.49bn/$2.68bn). 

FDJ has offered SEK130 in cash for each Swedish Depository Receipt (SDR) in Kindred. This is 24.4% higher than the SEK104.50 price of Kindred shares at close on 19 January. That was the final day of trading prior to the offer coming to light.

The public tender document confirms this offer. An acceptance period will begin tomorrow (20 February) and run through to 19 November. The Kindred board has already unanimously recommended shareholders accept the offer, while the FDJ board is backing the proposal.

FDJ also notes an initial commencement of settlement date of 28 November. 

Certain other conditions must also be met for the deal to close. FDJ says it expects to meet all these by the end of the acceptance period. Should approvals be secured prior to the end of this, the acceptance period may close early.

FDJ targets “European gaming champion” 

Announcing the offer last month, FDJ said the deal would create the second largest operator in Europe’s gaming sector. Combining the businesses, it added, would create a “European gaming champion” with stronger revenue and earnings growth.

“In this market, Kindred is one of the leading operators, combining strong brands, best-in-class technology platforms, an attractive growth profile and a committed approach to responsible gaming,” FDJ CEO and chair Stéphane Pallez said.

“Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary. The combination will result in a stronger strategic positioning and significant value creation for the benefit of our shareholders and broader stakeholders.”

Kindred CEO Nils Andén agrees the combination will benefit both businesses and support growth moving forward.

“I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets and provide a trusted source of entertainment to customers. It will also speed up our path towards 100% locally regulated revenue.”

What do the analysts think?

As is the case with all M&A deals, it ultimately comes down to strategy. However, Ed Birkin, a senior analyst at H2 Gambling Capital, said the Kindred offer is a whole new level for FDJ.

Birkin said it has been clear for a while FDJ is looking to expand into new markets and out of its traditional monopoly, highlighting the acquisition of ZEturf and Premier Lotteries Ireland. He went on to say Kindred represents a “major step-change” in its strategic shift.

“It gives them access to new products – especially in the igaming space, which accounts for 60% of Kindred’s revenues – and entry into new markets, as well as solidifying their positioning in the ‘competitive’ French online markets,” he said.

“If the French market were to open to icasino, it would also give them a very strong position from day one – something that is very important, given the potential market size.”

Building on 2023 success for FDJ and Kindred

Shortly after the offer was announced, both FDJ and Kindred published financial updates for 2023.

With FDJ, the operator said revenue was 6.5% higher at €2.62bn. This was confirmed last week when FDJ posted its 2023 results in full. Other key figures from the past year for FDJ include an 11.3% rise in EBITDA to €657m and a 38.0% jump in net profit to €425m.

As for Kindred, the initial trading update forecast a rise in revenue and earnings. Publishing its full-year results this month, Kindred reported a 13.3% increase in revenue to £1.21bn, with £1.17bn coming from B2B activities.

However, higher costs meant net profit for the year hit £47.2m, a drop of 60.7% from 2022. In addition, EBITDA for 2023 was 18.6% lower at £152.6m but underlying EBITDA climbed 58.3% to £204.5m.

The deal will increase Betsson’s presence in the Netherlands and will be financed with the group’s own liquid assets.

Made on a cash and debt-free basis, of the €27.5m, €16m will be paid upfront with deferred payments of €9m and €2.5m to come in six months and 12 months respectively.

It previously appeared Betsson was easing its operations in the Netherlands, withdrawing its online gambling licence application for the country in July 2023 due to “significant delays” in the approval process.

This change in strategy, though, will see Holland Power Gaming continue to supply games exclusively for Holland Gaming Technology, which holds a gaming licence for casino in the Netherlands.

In the group’s statement, Betsson said the deal will “contribute to a higher share of revenue from locally regulated markets” and aligns with the company’s plan to “deliver profitable growth through geographic expansion”.

Betsson’s record 2023 results

This move follows Betsson’s announcement of a record 2023, with revenue rocketing by 22% to €948.2m during the year to 31 December 2023.

Over the course of 2023, EBITDA was up 52% to €262.7m from €172.4m in 2022. The EBITDA margin was 27.7%, compared to 22.2% in the prior year.

Betsson also reported operating income (EBIT) of €210.5m, which was up 60% year-on-year. The EBIT margin of 22.2% was an increase on 2022’s 16.9%.

Casino revenue was a big driver of Betsson’s Q4 figures, with casino revenue for the quarter up 25.1% year-on-year to €182.8m, accounting for 72% of group revenue.

Betfirst launches in Belgium

Earlier in February, sports betting and gaming operator Betfirst launched online casino in Belgium having been acquired by Betsson last year.

Betsson purchased the Belgian Betfirst Group in a deal worth €120.0m in June 2023, also striking a deal to partner with Groupe Partouche for access to Belgium’s icasino market.

The new online casino received an A+ casino licence by virtue of its deal with the Middelkerke Casino, with Betfirst looking to become the “country’s leading operator” in online casino.

Betfirst’s foray into igaming comes after it became the first operator to obtain an online betting licence in Belgium following the regulation of the market in 2011.

Further European expansion in Betsson’s plans

The move to add online casino to Betsson’s Belgian offering was anticipated after its partnership with the French casino operator Groupe Partouche.

The partnership was expected to initially focus on Belgium, with the aim to launch in other regulated markets afterwards.

Two of those markets are France and Switzerland, with Groupe Partouche operating land-based casinos in both of those countries. Online casino is legal in Switzerland and, while it is currently illegal in France, there is growing expectation it will be legalised in the near future.

Betsson also secured a licence back in September 2023 to offer online sports betting in France, a move that came after it announced its entrance into the Serbian market earlier in the month.

Monthly handle was 16.3% ahead of January 2023 but 7.7% behind the $259.7m wagered in Kansas in December.

Online betting accounted for $228.6m of all bets placed during the month. In contrast, just $11.5m in wagers were reported at retail sportsbooks.

Turning to revenue, the January total was 138.3% higher than $6.0m in the same month last year. However, it was 28.9% behind the record $20.1m posted in December 2023.

Revenue from online sports betting in January amounted to $14.3m. Retail’s revenue share for the month reached $668,086.

Kansas Star and FanDuel lead the way

Kansas Star and partner, Flutter Entertainment-owned FanDuel, took top spot in the online market in January. Revenue from the partnership reached $6.1m from $77.3m.

Boot Hill Casino and DraftKings, which led in December, slipped to second with $5.9m worth of online revenue. This was despite taking more wagers – $96.7m – than Kansas Star and FanDuel.

Placing third was Kansas Crossing and BetMGM with $1.2m in revenue from $21.1m in total online bets. 

Looking at the retail market, Hollywood Casino at Kansas Speedway was the clear leader. Partnered with ESPNBet, revenue from retail here hit $422,845 from $8.9m in wagers.

Kansas Star and FanDuel placed second with $164,669 from $1.5m, ahead of Boot Hill and DraftKings on $53,732 off $402,722.

Kansas year-to-date wagers reach $1.40bn 

As for the fiscal year to date, handle amounted to $1.40bn. Some $1.34bn of this was spent online, while $64.4m was bet at retail sites.

Revenue-wise, this amounted to $77.4m. Of this, $72.9m came from online wagering and $4.5m retail sportsbooks.

Total tax for the fiscal year to date stood at $7.7m.

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