Month: March 2024

Dr Michael Auer explains the importance of utilising accurate data to enhance player protection strategy at an industry-wide level. And how OpenBet’s acquisition of Neccton has embedded a more comprehensive range of player protection tools into its product suite.

From understanding localised game preference to creating accurate audience profiles, Stian Enger, EveryMatrix ceo of casino explains the power of the EveryMatrix Slot Trumps series. From its first five regions, we learn how Slot Trumps has empowered operators, through in depth data analysis, to successfully localise content and accurately target key audiences.

Justice Meredith Sasso wrote that West Flagler and Associates (WFA) chose the wrong “vehicle” to seek relief.

“Quo warranto is not, and has never been, the proper vehicle to obtain a declaration as to the substantive constitutionality of an enacted law. For that reason, we deny the petition because the relief that petitioners seek is beyond what the writ of quo warranto provides.”

The latest Florida Supreme Court decision may not be the end for WFA in Florida. The pari-mutuels chose to bypass filing in district court and went straight to the Florida Supreme Court.

But Bob Jarvis, a constitutional law professor at NOVA Southeastern, told iGB that WFA could now “follow the correct route and sue in the Leon County Circuit Court in Tallahassee”. Jarvis does not believe that WFA will win its cases at any level.

WFA also still has a case pending in US Supreme Court, where it has sued the US Department of the Interior (DOI), claiming that it was out of bounds in approving the 2021 Florida-Seminole compact. That compact allows the tribe to offer statewide mobile sports betting and to deem any bet placed in the state of Florida to have been placed on tribal lands if it flows through a server on Seminole land.

“This is a major victory for the people of the state of Florida, who can count on billions of dollars over the coming years to fund important state needs,” Seminole spokesman Gary Bitner said in an email to iGB. “Floridians and visitors can enjoy statewide sports betting and expanded casino games, now and into the future. And it means the Seminole tribe of Florida can have confidence in the future.”

BIA regs say online wagering OK with state approval

The compact requires that the tribe pay the state $500m per year or $2.5bn over five years for the right to have a monopoly.

The compact has been under fire since it was approved by the state legislature and DeSantis in May 2021 because many believe that the compact violated the Indian Gaming Regulatory Act. But a new set of regulations from the Bureau of Indian Affairs say that bets taken off Indian lands but run through tribal servers are legal, as long as a state agrees. Those regulations go into effect on 22 March.

With court cases in process both in Florida Supreme Court and at the US Supreme Court, the Seminoles launched their Hard Rock Bet platform on 7 November 2023 and began opening brick-and-mortar sportsbooks across Florida a month later.

WFA has been trying to find a way to have the compact voided almost since it was approved by the DOI in the fall of 2021, saying that Seminole exclusivity for digital sports betting would be detrimental to their businesses. The company owns two pari-mutuels in South Florida.

Court: Quo warranto doesn’t replace injunctive relief

WFA argued in its Florida Supreme Court filing that the 2021 compact and its subsequent approval by the state legislature and DeSantis violate Florida law after Amendment 3 was passed by voters in 2018.

That law, Article X, Section 30 requires that any expansion of gaming go to the voters, but this one did not. In the government’s response to the WFA petition, it wrote that the court should deny the petition because WFA “seek(s) a declaration as to the substantive constitutionality of an enacted law.”

It is that argument that the court hung its opinion on.

“As we will explain, we agree with respondents (DeSantis et al) that quo warranto is not a substitute for what petitioners seek – declaratory and injunctive relief as to the substance of the law ratifying the gaming compact,” Sasso wrote.

She went on to explain why:

“Petitioners argue the governor and legislature “improperly exercised” their respective authority because the substance of the compact, reflected in sections 285.710(3)(b)-(14) and 849.142, Florida Statutes (2023), the implementing laws, is inconsistent with Article X, Section 30,” she continued.

“This is problematic because however far afield from its original function the current use of quo warranto has wandered, this court has never permitted use of the writ in the manner which petitioners seek – to address the substantive constitutionality of an enacted law… Furthermore, we have made clear that the writ of quo warranto is not a substitute for declaratory and injunctive relief. See Detzner vs Anstead, 256 So. 3d 820, 823 (Fla. 2018).”

In her opinion, Sasso does not directly address whether or not the compact and its approval are out of bounds, rather that the type of filing isn’t appropriate for the request.

In the US Supreme Court case, WFA filed its petition 11 February and the DOI has until 12 April to respond. From there, SCOTUS will determine if it will hear the case, although the court typically accepts between 100-150 cases of more than 7,000 filed every year.

Penta is exploring its options for Fortuna, which currently operates in Poland, Croatia, Romania, Slovakia and the Czech Republic, running sites and betting shops under the Fortuna, Casa Parulior and PSK brands.

Any sale of Fortuna could purportedly be worth up to €2bn (£1.7bn/$2.2bn), according to Reuters which broke the news. Penta acquired a 79.8% stake in Fortuna in 2017, having first bought into the company in 2005, before launching a takeover bid in 2018.

While not ruling out an exit, Penta is evaluating alternatives that would best help the development of the Fortuna franchise, the business told iGB, while ensuring sustainable growth and the creation of long-term value.

“As discussions are in their early stages, it’s premature to speculate on the specific outcomes,” Penta said. “However, the possibility of a majority sale remains within the realm of consideration.”

This doesn’t necessarily mean it will cash out of gaming entirely, however.

“Penta, as a long-term investor, remains committed to the sector,” it said. “Our continued interest in the industry is driven by a robust belief in its potential and enduring value.

“We find the sector attractive and are looking to stay in it.”

Fortuna taken private by Penta in 2018

Following Penta’s full takeover in 2018 through its Fortbet Holdings subsidiary, Fortuna was delisted from the Warsaw and Prague stock exchanges.

The delisting would free Fortuna from public disclosures that would leave it at a disadvantage to its competitors, the operator said at the time.

Victor Corcoran, former chief executive of Paddy Power Online, leads Fortuna as CEO, replacing interim chief David Vaněk. Vaněk took charge after Per Widerström – now CEO of 888 Holdings – left in February 2022 after seven years at the helm.

The next big CEE acquisition?

Fortuna’s presence across major markets in Central and Eastern Europe (CEE) could make it an attractive acquisition target as the industry turns its attention towards the region as a source of new revenue.

Entain has been the most active acquirer in CEE, in part due to its Entain CEE joint venture with EMMA Capital. It acquired a 75% stake in SuperSport, a leading betting and gaming brand in Croatia, in August 2022, then a year later snapped up Poland’s STS Holdings. While some shareholders have questioned these deals, Entain CEE is eyeing up additional deals for market-leading omnichannel brands in the region.

Paddy Power operator Flutter Entertainment has also made moves in the region. The company acquired an initial 51% stake in Serbian omnichannel sports betting and gaming operator MaxBet for €141m in September. The agreement also gives Flutter the chance to acquire the remaining 49% of MaxBet in 2029.

The deal provides Flutter with access to the regulated Serbian market and aids its ongoing expansion plans, including within the wider Balkans region.

The Commission announced the review in July of last year. This followed FS Gaming, the investment vehicle backed by former Entain CEO Kenny Alexander, acquiring a stake in 888.

After purchasing a 6.57% stake, plans were set for a trio of former Entain executives to take charge at 888. This led to the Commission initiating the investigation. 

888 faced GB licence loss over FS Gaming appointments

Alexander would have become CEO under the proposal. Former Entain chair Lee Feldman would take the same role at 888 and Stephen Morana chief financial officer. Such a move would likely take FS Gaming’s stake in 888 above 10%, triggering a change in corporate control that would require the green light from the Commission.

If the regulator rejected that change, its only option would have been to revoke 888’s licence.

888 terminated discussions with FS Gaming as the appointments had “no reasonable prospect of being approved”. Therefore, its UK licences would be at immediate and significant risk, prompting it to terminate discussions over the matter.

However, in a statement released today (22 March) by 888, the group said the Commission will take no action.

“The Commission has concluded the licence review without imposing any licence conditions, financial penalties or other remedies on the group after being satisfied that the risk to the licensing objectives under the Gambling Act that led to the review have been appropriately managed and adequately mitigated,” 888 said.

Issuing its own response, the Commission confirmed it would not be taking action over the matter.

“We understand from 888 Holdings the management proposals put forward by the new shareholders are no longer being pursued and have not been for some time,” the Commission told iGB in a statement.

“As a result of this, alongside wider assurances provided as to those involved in the management of the operator, it has not been necessary for the Commission to make any determination in this case or to make any assessment of the suitability of the proposed individuals and we have therefore discontinued the review of 888 Holdings’ licence to operate with no further action required.”

Why was the Commission concerned?

The case primarily relates to concerns over HMRC’s investigation into GVC, which rebranded as Entain in 2020, and its former Turkish business.

At the time, 888 said FS Gaming failed to provide “basic reassurances that addressed these concerns”. This resulted in the regulator launching its review under Section 116 (2)(c)(ii) of the Gambling Act 2005.

Since the review launched, the HMRC case has been settled with the Crown Prosecution Service (CPS). Entain agreed to pay a financial penalty plus disgorgement of profits totalling £585.0m (€681.4m/$737.6m). It will also make a charitable donation of £20.0m and contribute £10.0m to CPS and HMRC costs.

888 did not share whether this has an impact on the decision by the Commission to take no action following the review.

What was the issue with GVC’s former Turkish business?

The Turkey case has now settled, with Entain accounting for the associated costs in its 2023 results, leading to a £936.5m loss for the year.

But what did Turkey case actually involve?

Possible offences flagged included section 7 of the Bribery Act 2010. Entain noted historical misconduct involving former third-party suppliers and former employees may have occurred. 

888’s board examined all potential risks relating to this investigation, including information from historic discussions between William Hill and GVC. The businesses paired up to acquire Sportingbet in 2012. 

William Hill acquired its Australian business and secured a call option on Sportingbet’s Spanish operations. GVC took charge of the remaining business, including Turkey. 

The Turkish subsidiary Headlong Limited was sold off to Ropso Malta in 2017, with the €150m earn-out later waived in order to speed up the deal and avoid regulatory delays. The formerly-named GVC denied it continued to benefit from Headlong two years later, in July 2019.

However, one year later, HMRC launched its investigation highlighting “potential corporate offending”. This widened an inquiry first launched around the time the earn-out was waived in November 2019. This came days after Alexander abruptly stepped down as GVC CEO.

What next for 888?

The news will come as a relief to 888, as it works to steady the ship following a difficult year. New CEO Per Widerström is expected to deliver turnaround strategy imminently.

In January the operator reported an 8% decline in revenue to £1.71bn for 2023. This was revealed in a trading update, with its full results due next week.

Alongside this, 888 said that it will be making redundancies as part of changes to its organisational structure. Confirming this to iGB, 888 said the changes will help it achieve long-term plans. 888 did not state which departments will be affected.

No future in the US for 888?

More recently, 888 this month launched a strategic review for its US B2C operations. This, it said, could lead to the partial or full sale of the division.

888 will also consider a controlled exit of US B2C operations and other possible strategic transactions. The review, 888 said, will not impact its existing B2B arrangements in the US.

At present, there is no end date for the review. The operator is likely to update shareholders in full-year results next week.

In line with the strategic review, 888 is ending its partnership with Authentic Brands Group (ABG), paying up to $50m to end the partnership in two tranches. The ABG deal allowed 888 to run sportsbooks and online casinos under the Sports Illustrated brand. 

Stephenson has been championing legal statewide digital sports betting for at least three years.

The A-21 amendment passed 8-4 with the bill approved 8-5 and it is now headed to the tax committee. There is no crossover deadline in Minnesota, which is set to adjourn 20 May. But if sports betting isn’t legalised this session lawmakers will have to craft new bills for the 2025 session as bills do not carry over.

Minnesota lawmakers have been trying to legalise sports betting since 2018. In 2022, Stephenson was able to get his bill through the house, but not the senate.

A key issue has been whether or not the state’s horse tracks should be included in offering wagering. A senate bill that has been through six committees does include the horse tracks and now sets the tax rate to 20%. That bill is now on its way to the finance committee.

Pulltabs are a political football

The latest amendments would put a regulatory structure around fantasy sports, which are currently unregulated. Stephenson did not share any particulars when introducing the amendment, which is not yet publicly available.

But the critical part of the amendment centres around pulltabs and charitable gaming. Stephenson said that, in the current setup, the state of Minnesota gets the most amount of revenue from charitable gaming, followed by the game developers and then the charitable organisations. He said the amendment would flip that scenario and would potentially send $40m to the Allied Charities of Minnesota (ACM) over multiple years, although he did not specify how many.

According to the Minneapolis Star-Tribune, there has been a disagreement brewing around how the pulltab machines work. As technology advances, the machines are getting dangerously close to resembling slot machines, say the state’s tribes, who have exclusivity for casino games.

State Democrats in 2023 passed a law that would ban an “open-all” feature on pulltabs. Instead, each tab on the game must be opened individually, which the ACM says slows down consumers and ultimately could affect ACM income because games take longer.

While pulltabs and charitable gaming aren’t directly related to sports betting, they have the potential to be a political football and Stephenson is attempting to take that out of play. In order to increase income to the ACM, the amendment would increase the proposed tax from 10%-20%.

Horse tracks still want in

During the meeting, the committee also heard from a representative from Running Aces, one of the two tracks in the state. CFO Tracie Wilson testified that tracks would be “badly damaged by the unfair amendment” and that horse racing would be “eviscerated by this leglislation, which picks winners and losers”.

Andy Platto, executive director of the Minnesota Indian Gaming Association (MIGA), said that the tribe continues to “evaluate” the bill and that some of the policy changes “are of concern to tribal leaders”. Despite that, he gave MIGA’s support to move the legal Minnesota sports betting bill forward. Minnesota’s 11 tribes are part of the association, which historically has not supported any bill that includes the tracks.

Stephenson told the Star-Tribune that he’s been working with the ACM and tribes for several years and the current deal is one that “both sides can live with”.

The bill moving through the senate has already been amended to increase the tax rate to 20% and to eliminate in-game betting. The senate bill does not include the tracks. It also does not include the latest pulltab agreement that Stephenson has brokered.

The first time I heard the word “email” would have been about 1993 at the first publisher I ever worked for. We were trying to get some cover imagery and, with no way to get a SyQuest drive (anybody remember those?) or similar posted to us in time for the issue going to print, my editor said, “We’ll have to get them to email it and hope nobody phones up in the night”.

“Say that again, please – get them to what?”

“Email it.”

“What the hell does that mean?”

Since then, of course, it’s ubiquitous, it’s every-damn-where and we all know what it is. But that first time? I thought he might be drunk. It’s become normalised.

“Normalisation” is a term that’s bandied about a lot and, these days, it’s usually in connection with gambling. Gambling has been normalised, it’s a common thing now, it’s this, or it’s that, it’s the other. It’s never used in a positive sense, of course.

What does it mean? It really just means something is recognised as acceptable, where it either didn’t exist previously or had a much lower profile and was therefore irrelevant.

It’s usually something bad. The other pastime it’s used with frequently is smoking and in many countries there has been a concerted effort in recent years to de-normalise this particular social ill. It’s been very successful too, or it was until vaping became popular and, well, normalised. Not that I’m equating the two things, they’re entirely different excepting the base addiction to nicotine.

Integrated into our culture

In the UK, tobacco advertising was banned in 2003, followed in 2007 by a workplace smoking ban, which effectively meant you could no longer smoke in pubs. You can’t even have tobacco on display for sale now.

The whole crusade has been incredibly effective and the path to success is a simple and easy-to-understand one. Take away the routes of visibility, starve it of oxygen and, as proponents die off and the next generation matures, smoking is not even relevant.

I read an article on The Conversation a while back and it said that sports is being used to normalise gambling and it should be treated the same way smoking is. The article opened by saying that if you watch sports on TV you are “four times more likely to see a gambling ad during a sports broadcast than during other programming”.

Sure, and probably also more likely to see a beer commercial and/or beer sponsorship. It’s the perceived relevance of the audience to the advertiser. You may also notice more chocolate and bingo commercials during soap operas; it’s not a coincidence.

But the reason why you cannot denormalise gambling in the same way as smoking is a simple one. It’s already part of our language. We use it as shorthand in conversation every day of our lives. Non-gamblers do it all the time.

How did it get to this stage?

Even in The Guardian, they run articles on the favourites to win certain prizes. Think of movies – this might sound tenuous, but bear with me – and the prominent plot device of “parley” in the early films.

I know it’s not the same term, context or anything as when it’s used in gambling. OK, they might want to conference then (fan)duel when they hear it… I’ll get my coat. The point is, it’s a really unusual and very specific term with at best two contexts. One of those is in gambling, the other is a hugely successful Hollywood movie franchise.

How often do you hear people say, “What are the odds of that happening?” They don’t actually want the odds, it’s just accepted language. It’s furniture. It’s just there.

The point is, gambling is already normalised, and it has been for a very, very long time.

I asked Alan Hardacre about this, someone with extensive experience in both the gambling and tobacco industries. His lanyard would say he is a public affairs leader, but he wears many hats well.

“Normalising basically means establishing a market,” he said. “You’re trying to set up something in a culture that doesn’t have the affinity or the current offer and you try to establish a market. You’re trying to sell an activity as a legitimate pastime.

“If you wanted to denormalise something like online gambling, you would have to establish the harm that’s being done, how it’s being done, then create a strategy to go after the individual elements of that harm.”

Balance is key

Now, part of the problem with online gambling’s image is advertising. It’s often extremely effective, but that’s not the issue: the issue is quantity.

Hardacre describes it neatly as “carpet bombing”. It’s this carpet bombing – which, with this definition of normalisation, is actually as simple as trying to establish a market that perhaps didn’t exist in this way before – that is creating pushback. If we don’t monitor it ourselves, regulation will come and do it for us.

It’s one thing when a group like the Betting and Gaming Council announce how brilliant their whistle-to-whistle ban is. But it’s another when studies reveal that in one football match, betting logos could be seen 37 times per minute.

When a football club’s due diligence for shirt sponsorship amounts to basically taking the cheque into the bank and chuckling, the gambling industry has to do more and be better for everyone involved. The clubs are selling pitchside advertising space on digital boardings which are shown worldwide; the Premier League is the most-watched sports league in the world by some distance. They just want the money, after all.

The best thing our trade bodies could do would be to draw up an industry agreement whereby external advertising – anything outside the boundaries of your own website or signed-up player comms – is limited.

The pushback we are seeing carries genuine weight. While we are all excited about the prospect of new markets opening up, regulators are listening to concerns and complaints. They will undoubtedly affect new market regulation in future.

As Hardacre summarises, “in small doses none of this would be offensive, but in the absolute overdose it’s served, it becomes offensive”.

Cooke and the board consider a leadership change being in the company’s best interests Star explained. Chairman David Foster will take on additional duties as executive chair while a search for a permanent CEO is conducted.

Cooke took over as CEO of Star in November 2022. In doing so, he became the operator’s fourth CEO in the space of year, following Matt Bekier, who resigned during The Star’s New South Wales investigation, John O’Neill and Geoff Hogg.

Prior to joining Star, Cooke was chief executive of Tyro Payments. However, he was better known for serving as managing director and group CEO of lottery business the Tatts Group from 2013 to 2018. He left soon after its sale to Tabcorp closed.

Cooke departs the top job at Star immediately. However, he will remain a consultant to the operator for the next six months.

Cooke exits amid New South Wales inquiriy

The news comes as Star faces a second inquiry from the New South Wales Independent Casino Commission (NICC). 

As announced last month, Adam Bell SC, who oversaw the first Bell report, will lead the inquiry, looking at how Star has implemented recommendations from the first.

Star was declared unsuitable to hold a casino licence in New South Wales in September 2022 after the initial investigation uncovered a catalogue of anti-money laundering and social responsibility failings.

Cooke said remaining as CEO would not be “conducive” while this process is ongoing. The inquiry will be running for 15 weeks, with a final report due 31 May.

“While I find the position exceptionally disappointing, I have reached the conclusion that my continuation in the group CEO role is not going to be conducive to the NICC determining to find Star capable of becoming suitable to hold a casino licence in NSW,” Cooke said.

“In these circumstances a change in leadership provides the best opportunity for the business to navigate the regulatory pressure it is facing. I take comfort in what we have achieved as a team over the last 16 months.

“I’m certain the company is now on the right path. David and the next CEO have my ongoing support in delivering on the key business and important strategic initiatives that are under way.”

Star chair hails Cooke’s “tireless” efforts

With Foster stepping into the new executive role, Anne Ward will assume the role of lead independent director. Foster praised the impact Cooke has had on the business in recent years.

“Robbie has worked tirelessly since he joined in October 2022, focusing on stabilising the operations, resolving a number of existential threats to the business, addressing separate remediation demands from regulators and rebuilding the management team and systems,” Foster said.

“This includes the addition of more senior risk, compliance and financial crime executives and the commencement of our culture transformation. Robbie shared in a resolve to put safe, responsible and ethical gaming at the core of what we do.”

Also reverencing the second New South Wales inquiry, Foster said he is confident that the operator will win back the trust of players.

“We remain absolutely committed to being judged suitable to hold a casino licence in New South Wales and Queensland,” Foster said. “In taking on executive duties, I am determined that the positive momentum at Star continues, as we work to win back the trust of our stakeholders. 

“The many thousands of people working across the company deserve stability and security and together they all continue to do great things to get the business back on track.”

CFO Katsibouba also heads for the exit

In other news, Star today also confirmed Christina Katsibouba is stepping down as its CFO. Former Tatts Group CFO Neale O’Connell will be taking on the role on an interim basis.

Katsibouba has served as CFO since May 2022 – first on an interim basis and later permanent – but will now exit Star after nine years with the operator.

Having joined Star in April 2015 as general manager of finance transformation, Katsibouba held a series of senior finance roles. These included group financial controller and deputy CFO. She was also group executive for gaming before becoming CFO almost two years ago.

Prior to joining Star, Katsibouba spent almost five years with Australian market business Salmat, again working in finance roles. She also has spells with both Apparal Group and PricewaterhouseCoopers.

Star said Katsibouba is leaving to pursue other interests away from the business.

“Christina stepped into the CFO role following the Bell inquiry in 2022,” Foster said. “After two challenging years she has decided the time is right to move on. 

“She leaves with both the board’s and my personal thanks, for her tireless efforts as CFO and as an executive with the group. We wish her well.”

O’Connell takes temporary CFO role

Katsibouba is succeeded by O’Connell, an experienced executive across both the gaming and leisure industries.

O’Connell was most recently global CFO for Corporate Travel Management between July 2019 and June 2021. Prior to this, he spent almost 14 years with Tatts Group, first as group general manager finance before becoming CFO.

His earlier career roles included finance director at Delta Group Australia and group financial controller for Smorgan Steel. In recent years, he has spent time as a strategic advisor for Songtradr and currently serves as a board member for the Financial Executives of Australia. 

“Neale is a highly capable and credentialed replacement,” Foster said. “With both an industry and listed company track record, he will bring new perspectives and leadership to our executive team. 

“Star operates in a highly regulated environment and is going through significant internal change. Neale’s expertise from previous roles will be highly valued.”

Star returns to profit in H1

The news comes after Star last month revealed it was able to return to a net profit during the first half of its 2024 financial year. This was despite also reporting a decline in group revenue.

Revenue fell 14.6% to AU$865.7m (£447.2m/€521.3m/US$564.6m) in H1. However, Star moved into the black with a net profit of $9.1m, compared to a $1.26bn loss in the previous year.

The news comes in the wake of two IGT divisions, PlayDigital and Global Gaming, set to spin off and merge with gaming and payments specialist Everi. Current IGT CEO Vince Sandusky will leave to join this new $6.20bn business as its chief executive.

As this merger progresses Enrico Drago is stepping down as PlayDigital CEO. Former Bet365 executive Gil Rotem, currently IGT PlayDigital president of igaming, will now expand his role to become PlayDigital president.

Drago will remain with the business as non-executive director.

These changes will come into effect from 1 April. IGT also noted that Drago will continue in his role as vice-chairman of the De Agostini Italian-facing business.

“Over the last five-plus years, IGT PlayDigital has established leadership positions in the global igaming and North American sports betting sectors that will be foundational to the company’s future successes,” Drago said.

“I thank the entire IGT PlayDigital team for all that we have accomplished in this time. I look forward to supporting IGT in a new capacity and further helping the company define its vision and strategy.”

Drago Sr. departs IGT board

Enrico Drago’s father Marco will free up a seat on the IGT board by stepping down. He will complete his remaining term and officially depart after IGT’s annual general meeting on 14 May.

Commenting on his departure, Drago Sr said he leaves IGT in a strong position for “continued growth”.

“Watching and guiding IGT through its evolution from a collection of companies that started with Lottomatica and Gtech grow into a unified global gaming leader has been very gratifying,” Marco Drago said.

“We have been fortunate to have a great group of board members and business unit leaders that have helped drive IGT’s growth during this time. I thank them for their contributions.”

IGT executive chair Marco Sala also addressed the changes. He said: “I’d like to thank Marco Drago for his many years of service and his unwavering commitment to driving results and creating value for all IGT stakeholders.

“Enrico Drago joining the board and leaving his executive leadership position at IGT is a natural evolution that supports the company’s vision for its next era of growth and transformation. 

“Enrico’s value-creation mindset and understanding of global growth opportunities will enhance the board and align with IGT’s strategic priorities.”

Changes come ahead of mega-merger

Incidentally, IGT will soon look rather different, with the name transferring to the combined PlayDigital, Global Gaming and Everi business.

Global Gaming and PlayDigital will be spun off and combine with Everi, creating a business spanning fintech, games and sports betting. IGT shareholders will own around 54% of shares in the combined business and Everi stockholders the remaining 46%. 

The merger is set to close later this year or early 2025, with both the IGT and Everi boards having approved the deal. Following the close, Everi will be renamed International Game Technology Inc and trade on the New York Stock Exchange.

The combined business’ projected revenue will be in the range of $2.7bn for 2024, IGT said, with adjusted EBITDA coming in around $1bn.

This leaves IGT’s Global Lottery business. That entity is to change its name and continue to trade on the NYSE, led by Renato Ascoli as CEO.

Net profit down in 2023 despite revenue increase

The changes come after IGT last week published its full-year results for 2023. Revenue was up 2.0% to $4.31bn (£3.42bn/€3.98bn) but net profit fell year-on-year.

Global Lottery slipped 2.4% to $2.53bn but was still the primary source of income for IGT. In contrast, Global Gaming revenue was up 9.1% to $1.55bn and PlayDigital revenue also 9.1% to $228m.

However, net profit for the year hit $156m, down 43.3% from $275m in 2022. There was better news in terms of adjusted EBITDA, which reached an all-time high of $1.78bn, up 6.9%.

For Alex Leese, Pronet Gaming’s group ceo, there’s a current reinvigoration in Asia, with data being a key component of predicting trends in player behaviour across each unique market. But what for the future? For Leese, regulation is the driving force behind this region’s potential. With countries, such as Thailand rumoured to be preparing legislation.