Month: May 2024

Total market revenue in Kansas increased 13.0% to $10.4m (£8.2m/€9.6m). However, April was not so positive for DC, with revenue down 59.5% to $526,689 from last year.

Starting in Kansas, not only was revenue up year-on-year, it was also 46.5% ahead of $7.1m in March this year. Online betting accounted for $10.3m of all revenue, with retail’s share at just $79,989.

In terms of spending, total handle for Kansas in April hit $192.1m. This is 44.4% more than last year but behind March’s state-wide handle of $252.9m. 

Players spent $185.9m betting online during the month, with a further $6.2m wagered at retail sportsbooks.

Total tax for the month reached $1.0m, with almost all of this coming from online betting. 

DraftKings and Boot Hill out in front in Kansas

Taking a look at each operator, DraftKings and partner Boot Hill Casino continue to lead the online market. Revenue from the partnership hit $5.1m in April after players bet $84.3m.

FanDuel, partnered with Kansas Star, posted revenue $4.9m off $60.7m in bets. Caesars and Kansas Crossing was the only other partnership to post revenue, with this hitting $277,103 from a $6.6m handle. 

Kansas Crossing also has online arrangements in place with BetMGM and Fanatics, but neither generated any revenue in April. The situation was similar for ESPN Bet and Hollywood, which took $14.0m in bets but did not report revenue. 

In terms of the financial year to date, total sports betting revenue in Kansas amounted to $98.0m. This includes $93.5m from online wagering and $4.6m retail sportsbooks.

Spending-wise, players wagered $2.05bn, with $1.96bn bet online and $89.5m at land-based locations. As for tax, the state collected a total of $9.8m.

DC revenue down despite level handle 

Turning attention to DC, revenue was down year-on-year and also fell 62.4% from $1.4m in March of this year.

As for handle, players wagered a total of $14.5m during April. This was level with the same month last year but 5.7% behind $15.7m in March 2024.

Analysing each operator’s performance, GambetDC led the way. Players spent $6.9m and, after taking off $6.5m in winnings, this suggests revenue of $394,224. This was despite the brand ceasing operations in mid-April after being taken over by FanDuel.

Incidentally, FanDuel reported $194,236 in revenue off $550,751 during its first few weeks of activity.

Elsewhere, Caesars, which led in March, ended up posting a $165,196 loss for April from a $6.9m handle. Meanwhile BetMGM generated $226,880 in revenue from $3.1m in total bets, while Grand Central posted $55,614 off $317,770.

Cloakbook made $2,800 in total revenue from an $18,090 handle, Sports & Social $11,071 off $47,541, and Grand Central H Street $2,554 from $30,966. The sportsbook at Ugly Mug made a loss of $614 from $447.

To find out more about FanDuel’s entrance into DC and the departure of Gambet, click here to read our US editor Jill R. Dorson’s expert analysis. 

Better Collective purchased AceOdds, a multi-language sports betting company, for €42m (£35.9m/$45.5m). The transaction took place on a net cash/debt free basis and implies a 12-month EBITD multiple of 4x.

Ben Robinson, founder of Corfai Capital, acted as sell-side advisor on the transaction.

It will be financed by €40m in cash, with the remainder made up by an undisclosed total of Better Collective shares. The shares will be based on the volume weighted average share price on the Nasdaq Copenhagen five days before and ending five days after its closing. Better Collective plans to set up a share buyback scheme for this, which will be settled in shares.

AceOdds was founded in 2008 and is based in the UK. It offers betting tools, reviews, odds and streaming programmes. Ian Bowden, senior director, UK and Ireland at Better Collective, said AceOdd’s offerings and trajectory aligns “perfectly” with Better Collective’s vision for the future.

“This strategic acquisition brings us a robust owned and operated sports betting media brand in the UK market, poised for global scalability,” said Bowden.

“Aligned perfectly with Better Collective’s overarching strategy of acquiring leading sports media brands across various niches, the AceOdds brand fills a crucial gap by offering a vital sports betting affiliation brand in a pivotal growth market for the Better Collective group, along with an app benefiting from hundreds of thousands of installs to further increase the reach we can provide our partners.”

Upgraded financial targets

Following the deal, Better Collective has heightened its full-year 2024 financial targets. Revenue is now expected to fall between €395m and €425m, up from previous targets of €390m and €420m. EBITDA before special items is now projected between €130m and €140m. Previously, this was €125m to €135m.

In February, Better Collective revealed that it had surpassed its FY23 revenue targets. Revenue came to €327m for the twelve months. In the same month it completed its acquisition of Playmaker Capital, which was valued at €176m. The deal – which was announced in November – was agreed by 99.999% of Playmaker shareholders.

Better Collective noted that AceOdds had achieved operational earnings of approximately €10m in the last twelve months. Better Collective said that it wishes to reinvest part of this profitability into its product and user experience.

AceOdds has also consistently achieved recurring revenue. Better Collective will utilise zero and first party data from AceOdds’ app to improve targeting on AdVantage, Better Collective’s internal adtech platform.

XLMedia sold the assets to Gambling.com Group in April for a total consideration of $42.5m (£33.6m/€39.2m). The deal includes an initial $20.0m, with the rest, including a possible $5.0m earn-out payment, due over the coming months.

The sale follows a difficult year for XLMedia, which saw revenue fall 29.1% to $50.3m. This is in line with forecasts published in February.  This, XLMedia says, is mainly the result of declines in the North America Sports vertical. 

The group noted the smaller scale of new state launches during 2023, compared to those launched in 2022.  H1 2022 saw launches in New York, Louisiana and Ontario. In comparison, only Ohio and Massachusetts went live in H1 of 2023, with XLMedia describing the latter roll-out as “disappointing”.

XLMedia added that both its owned sites and media partners declined mainly due to the relative scale of new state launches. It also notes changing cost per acquisition (CPA) rates in some states. Meanwhile, in Europe, it continued to rebuild sites, driving new customer acquisition, and creating new tail revenues. That said, Europe revenue fell 2%.

Reason for positivity at XLMedia?

Ultimately lower revenue, coupled with a heavy impairment charge of $44.6m, pushed the group to a net loss. However, CEO David King remains upbeat over its future. He says 2024 will be a year of “considerable change” as XLMedia prepares for 2025 and beyond.

“Following the announcement of the sale of the Europe Sports and Gaming business, we are focused on driving organic revenues in the North America market,” King said. “This is while continuing both to expand our footprint in preparation for new state launches when they happen, while also right-sizing the group’s cost base for 2025.

“Having previously focused the group’s strategy towards becoming sports-led with a strong gaming presence, we have now refined this to focus the group’s activities in the North America sports market, while seeking to build the gaming side of the business. 

“The market offers the opportunity for organic growth over the longer term as new operators enter the existing markets and new states legalise online sports betting and online gaming.”

Breaking down 2023

Taking a closer look at 2023, revenue from sports betting dropped 33.8% to $36.6m while gaming revenue fell 12.2% to $13.7m. XLMedia says this is in line with its focus on being sports-led. It also notes the rebuilding of Europe casino assets and launching a new US casino brand.

CPA accounted for $26.2m of all revenue, down 45.8%. In contrast, revenue share, hybrid and other activities generated $24.1m in revenue, up 6.6%. XLMedia says the US has continued largely as a CPA-led market. Europe, meanwhile, is a mixture of fixed, hybrid and revenue share deals.  As a result, CPA revenues accounted for 52.0% of continuing revenues, with revenue share at 48.0%. 

“As the US market continues to develop, we have started to see some hybrid and revenue share deals offered and expect to see modest growth in revenue shares deals in the near to medium term in North America,” XLMedia says.

In terms of geographical performance, revenue in North America was down by 42.4% to $27.5m, with declines across both gaming and sports betting. Europe revenue only fell 1.7% to $22.8m after sports betting growth limited the impact of gaming decline. 

“Revenue from North America region decreased due primarily to the relative scale of new state launches,” XLMedia said. “Revenue from Europe decreased; old tail revenues in online casino declined but was offset by growth in new real-money players revenue in both sports and gaming.”

Impairment charge pushes XLMedia to net loss

XLMedia stopped short of fully disclosing information on expenses in 2023. However, it did reveal that gross profit was 26.1% lower at $26.6m.

Operating loss before impairment costs stood at $300,000, in contrast to a $6.2m profit in the previous year. As for adjusted EBITDA, this also declined 36.0% to $12.1m, with a lower margin of 24.0%.

After accounting for the $44.6m impairment charge, XLMedia was left with a net loss of $45.5m, compared to the previous year’s $3.4m profit. 

“Following the sale of the Europe assets at the start of April 2024, the group is focused on right-sizing the cost base allowing it to enter 2025 with an infrastructure commensurate with the requirements of North America business,” King said.

“Looking forward, XLMedia will retain its focus on revenue diversification. With no further state launches confirmed for 2024, the group will continue its focus on optimising existing legalised sports betting states and monetising its audiences. 

“2024 will be a year of considerable change as we transfer our Europe assets, consolidate our position in North America and prepare for 2025 and beyond.”

GLPI acquired the real estate assets of Baldini’s Casino in Nevada, as well as the Silverado Franklin Hotel & Gaming Complex and the Deadwood Mountain Grand (DMG) casino in South Dakota.

The Silverado is one of the biggest gaming facilities in South Dakota with 245 slot machines and a 68-room hotel. It’s also expected to undergo a hotel renovation, starting in 2024. Baldini’s stretches across nine acres with around 492 slot machines. The DMG, meanwhile, boasts a 93-suite hotel and a 13,500 square foot event centre.

GLPI chairman and chief executive Peter Carlino is excited for the future of the company’s new casino resorts. The business believes the acquisitions will prove “immediately accretive” to its operating results.

“With our acquisition of the Silverado, DMG, and Baldini’s properties, we are pleased to further diversify our property portfolio,” Carlino said.

GLPI agrees tenant relationship with Strategic

As part of the deal, GLPI also entered two cross-defaulted triple-net lease agreements with Strategic Gaming Management. Both of those agreements will initially last for 25 years, with two 10-year renewal periods also available.

GLPI also gave $5m in capital improvement proceeds, taking the total investment to $110m. The new leases’ initial aggregate annual cash rent is $9.2m, including capital improvement funding.

Also included in the deal with Strategic is the securing of a right of first refusal for GLPI on future acquisitions. This will last until Strategic’s adjusted EBITDAR in relation to GLPI-owned assets reaches an annualised amount of $40m.

The acquisition of Strategic’s properties takes GLPI’s portfolio to 65 properties in 20 states. Carlino believes the deal with Strategic will prove positive for both companies.

“With the initial transaction and our right of first refusal on growth opportunities, we look forward to the start of a long-term mutually beneficial relationship with Grant [Strategic chief executive Grant Lincoln] and Strategic,” Carlino continued.

“Our initiatives to expand our portfolio remain active in the current environment as our reputation as the gaming landlord of choice is further strengthened and reinforced by this transaction.”

Lincoln added: “We are pleased to begin our partnership with GLPI. We look forward to collaborating with GLPI to prudently grow our operations over the coming years.”

Some $504.6m (€464.8m/£398.1m) of revenue was recorded for the month, according to figures published by the Pennsylvania Gaming Control Board (PGCB). That was up 5.9% compared to April 2023.

The figure was down on the record $554.6m registered in March 2024. However, the figures were close on a day-by-day basis considering the extra day in March.

Pennsylvania gaming’s biggest segment stalls

Retail slots remains the biggest generator of gaming revenue, although the $205.4m was down 3.5% compared to April 2023. The number of slot machines in operation in April 2024 was 24,890 compared to 25,555 at the casinos in April 2023. Parx Casino, the state’s most popular venue, saw a 4.9% decrease to $31.6m.

iGaming slot revenue was the second biggest segment within Pennsylvania gaming at $126.0m, which was up 31.8%.

Sports betting back to growth

iGaming tables and sports wagering both experienced double-digit rises, with the former up 15.8% to $45.0m.

Following two successive months of year-on-year decline, sports wagering revenue was up 14.5% to $42.4m. Total sports wagering handle was $646.0m, which was up 12.9% year-on-year.

Valley Forge Casino Resort, along with partner FanDuel, was the state’s biggest sports betting business, with total revenue of $25.4m. This was almost three times the size of the next biggest, FanDuel’s Hollywood Casino at the Meadows.

Nevada to Dave & Buster’s: No betting

The Nevada Independent reported that Nevada is the latest state to take notice of Dave & Buster’s plan to offer betting among friends. Gaming Control Board agents met with Dave & Buster’s executives to say betting at the amusement centers wouldn’t be allowed.

Board chair Kirk Hendrick said in a statement Monday (13 May) the board “opposes activities that could promote underage gambling, as well as wagering activities by businesses catering to a significant number of minor clientele.” Other states have reacted, as well. An Illinois lawmaker filed a bill that would prohibit the idea and regulators in Ohio and Pennsylvania are considering action.

Date set for Mizuhara plea change

The US Attorney’s office said Wednesday (15 May) that Ippei Mizuhara’s change-of-plea hearing is set for 4 June. The hearing will be in the federal building in Orange County. Previous court dates have been in Los Angeles. Mizuhara, baseball star Shohei Ohtani’s former interpreter, pled not guilty Tuesday (14 May) as a procedural matter. He’s already signed a plea deal and a federal affidavit shows he admitted he’s guilty of stealing funds from Ohtani.

Mizuhara faces up to 33 years in prison and $1.25 in fines. He is accused of transferring nearly $17m from Ohtani’s accounts to pay off debt.

Head Louisiana regulator announces retirement

Ronnie Johns, head of the Louisiana Gaming Control Board, last last week announced his retirement effective June 30. Johns was appointed to the position in July 2021 by then Governor John Bel Edwards. He’s been in public service for 37 years, including 22 in the state legislature. Johns oversaw the development of regulations and the launch of online sports betting.

Johns told the American Press that he’s reached a time in life to prioritise his family. It’s time to “chase our grandkids from ballpark to ballpark, school events, and wherever life’s journey takes them.”

Check out ESPN Bet’s latest …

ESPN Bet earlier this week rolled out a new ad featuring Stephen A. Smith. Check it out:

NY senator trying to tweak betting laws

New York state senator Joe Addabbo this week filed a bill that would earmark 1 percent of tax revenue for problem and responsible gaming initiatives. The minimum amount designated for PG/RG programs would be $6m. One percent of tax revenue would be sent to youth team sports funding and youth sports and education funding.

Last month, Addabbo filed a bill that would raise the legal age for daily fantasy from 18 to 21. That bill, SB 9044, would also allow for peer-to-peer pick’em-style DFS games. New York’s legislative session is set to adjourn 6 June, and bills don’t carry over to 2025.

Court: No problem with Ontario sports betting

An Ontario superior court Monday (13 May) ruled the province’s online wagering and casino model is legal, reported the Associated Press. The Mohawk Council of Kahnawà:ke (MCK) filed a lawsuit questioning the legality of how the government agencies regulate legal gambling. Canadian lawmakers voted in June 2021 to decriminalise single-event wagering. Operators went live 4 April 2024.

The MCK, according to the AP, has been licensing gambling operators for 25 years for the Mohawks of Kahnawake. The group argued that Ontario’s new gaming will result in losses for its community.

Circa Sports live in Kentucky

Circa Sports launched Tuesday (14 May) in Kentucky in partnership with ECL Corbin/Cumberland Run, the company announced. The company says it offers the highest betting limits in the industry, and “transparent odds.” Kentucky marks Circa’s fifth US state. Consumers are required to make a minimum deposit of $20. Kentucky’s regulator launched live, legal digital sports betting 28 September 2023.

Harrah’s Columbus opens

Caesars Entertainment opened its Columbus, Neb. casino Friday (17 May) to rave reviews and big crowds. The first jackpot was hit at 10:14 a.m. local time, a $1,876 win on Power Push. The first sports bet was $20 on the Boston Celtics to win the NBA Finals (-135). The new property is 17,000 square feet and has 400 slot machines. The 2,100-square foot sportsbook has a 163-inch video wall.

The property is branded as a Harrah’s casino and is in partnership with Columbus Exposition and Racing.

Justin Thomas first athlete to make deal with Fanatics

Golfer Justin Thomas signed a deal to represent Fanatics, the company announced Tuesday. According to the press release, Thomas will “highlight new product enhancements, create social content and engage with the Fanatics community over the course of the next year.” Thomas is in the field for the PGA Championship at Valhalla.

In other news …

Borough leaders rallied outside a New York state senator’s office Monday (13 May) in support of a casino project near Citifield. Mets owner Steve Cohen is behind the project, which would require legislation action to move forward.

The Colorado Division of Gaming Wednesday (15 May) sent out an update to its March 2024 wagering revenue report. After discovering an error, the agency “revised” the Top 10 Sports by Total Wagers section, according to an e-mail announcement. The update does not affect handle, wagers, or taxes collected.

Citing the risk to kids, a Prince Edward Island (Canada) senator says he supports a national gambling advertising framework, according to CBC. “My particular concern is the impact on young people. These ads [feature] a lot of sports heroes, a lot of celebrities. Young people may be aspiring for that lifestyle, thinking, ‘Oh, I can make some easy money.’ Are we expanding the number of gamblers, and are we growing the addiction problem in the future?”

Fontainebleau Miami Beach announced Tuesday (14 May) it will unveil a 45,000-square foot, five-story convention center in Q4. The space will feature a grand staircase, LED walls, floor-to-ceiling windows. It will also have a 7,000-square foot rooftop terrace with ocean views.

President Joe Biden Thursday (16 May) appointed National Indian Gaming Commissioner associate commissioner Sharon M. Avery as acting chair. She replaces E. Sequoyah Simermeyer, who left in February for an executive position at FanDuel. Avery will serve in both roles until a Senate-confirmed chair is in place. The appointment was effective as of 15 May.

ICYMI on iGB

New Jersey: Online casino, sports betting revenue up; land-based down

GLPI acquires three land-based casinos for $105m

Flutter CFO: North Carolina ‘won’ by continued investment

US DoJ to Supreme Court: Florida case isn’t your purview

Ohtani’s ex-interpreter enters ‘not guilty’ plea, with plans to change plea

AGA reports record US quarterly revenue

The experts pointed to sponsorships’ importance to sports in Germany and the subsequent loss of funding such a ban would cause as the primary reason for its rejection.

However, managing director of the Association of Sports Sponsorship Providers, Inka Müller-Schmäh, outlined that a legal framework was needed to ensure sport sponsorships continued to help German sport.

“Sports sponsorship must remain possible, no matter where, when and how sport takes place and is broadcast,” Müller-Schmäh said.

Gambling industry in Germany facing problems

The German market has faced real issues with the black market, with tight restrictions driving players towards offshore operators.

A 2023 study from the University of Leipzig found the channelisation rate towards legal German online operators was just 50.7%. With nearly half of all German players betting with illegal operators, there are concerns over the safety of bettors.

Operators must not advertise online or on television between 9pm and 6am. Additionally, there are restrictions on showing sports clips in advertising, while there is also a ban on partnering with sports personalities and influencers.

Luka Andric, managing director of the German Sports Betting Association (DSWV), pointed to the “extremely strict” restrictions as a problem.

“It’s probably one of the strictest around, unless you take a monopoly system or somewhere where you have a complete ban on advertising,” Andric told iGB.

Sponsorship bans elsewhere in Europe

As of July 2023, operators in the Netherlands have been banned from sports sponsorships. There is currently a transitionary period to allow existing agreements to come to a conclusion.

France also introduced new sports sponsorship regulations in 2023. French regulator Autorité Nationale des Jeux (ANJ) attributed this to the changing role of sponsorships in France.

Between 2022 and 2023, sport partnerships with legal operators in France increased by 20% to €40.7m (£34.8m/$44.3m). Also, clubs penned €15m worth of sponsorships with unlicensed sites for African and Asian players.

Last April, English Premier League clubs announced a collective agreement to stop the sponsorship of gambling companies on the front of shirts.

That will come into effect from the conclusion of the 2025-26 campaign. However, that hasn’t quelled interest in the market. Aston Villa recently agreed a deal with Betano in April to make the operator its front-of-shirt sponsor until 2026.

Operators went live in North Carolina 11 March, ahead of the NCAA men’s and women’s basketball tournaments. Consumers wagered $659.3m during the three-week span in the opening month. But during that time, three North Carolina teams — Duke, NC State and UNC — were all playing in March Madness. Across the US, sports betting handle often dips in April, after the NCAA’s marquis event comes to a close.

Operators had a higher hold in April vs. March, paying out $538.4m in winnings on the $649m handle vs. $590.8m on $659.3m handle in March. North Carolina taxes digital operators at 18 percent of GGR, but the state did not release a number for tax revenue.

Promos down

Promotional betting dropped significantly in April, according to the report. Operators wrote off $79.7m in promos for the month vs. $202.6m in March. Historically, operators offer the biggest and most competitive promotions at launch.

The lottery does not break down its revenue numbers by operator or sport. On 11 March, eight platforms went live, including all of the major operators. Underdog Sports made its wagering debut in North Carolina, and Bet365 went live in its 10th state.

BetMGM, Caesars Sportsbook, ESPN Bet, DraftKings, Fanatics and FanDuel all went live on the same day. Operators in North Carolina are required to be tethered to professional sports venues or tribal casinos. There are two tribal casinos in the state, and Caesars is the only live operator tethered to a tribe (Tribal Casino Gaming Enterprise Cherokee).

Law could be tweaked sooner than later

Less than two months in, North Carolina lawmakers are already looking to tweak the new sports betting law. The Tar Heel State is among those considering a ban on college-player prop bets. In addition, Governor Roy Cooper is calling on lawmakers to allow bettors to write losses off on their taxes.

Both bills are still in committee. North Carolina’s legislative session opened 24 April, significantly later than most others. It is set to close 31 July.

For the six months to 31 March, revenue at Aristocrat hit AU$3.27bn (£1.72bn/€2.01bn/US$2.19bn). This is 6.1% higher than in H1 last year, helped by growth in all core segments.

Ahead of posting the results, Aristocrat announced a change in the way it will report finance data. This follows the acquisition of NeoGames, which completed in late April. Its Anaxi arm and NeoGames operations are now being managed as a single business under ‘Aristocrat Interactive’. Former NeoGames CEO Moti Malul is overseeing the entity as CEO.

As such, with effect from H1, Aristocrat is now reporting results for three primary segments: Aristocrat Gaming, Pixel United and Aristocrat Interactive. This, it says, better aligns to its strategy, management structure and growth expectations.

The good news for Aristocrat is that each of these segments reported year-on-year growth in H1. Gaming remains by far its primary source of revenue, drawing $1.83bn in Q1, with Pixel United at $1.33bn and Interactive $109.4m.

Together, this led to an increase not only in overall revenue, but also EBITDA and net profit. Croker welcomed the increases, hailing an “outstanding” period for the group.

“This was once again an outstanding result, reflecting Aristocrat’s resilience and ability to grow share and drive profitability through different operating environments,” he said.

“We delivered strong revenue and EBITDA growth over the half. This was underpinned by record Aristocrat Gaming performance, led by an exceptional North America gaming operations result and strong growth in Aristocrat Interactive, while Pixel United achieved improved profitability despite mixed market conditions.”

Gaming drives growth at Aristocrat

Going through the results segment by segment, Aristocrat begins by praising the success of its Gaming arm. Revenue increased 8.3% year-on-year to $1.83bn, a record quarter for the segment.

Aristocrat puts this down to strong performance in North America gaming operations, which it says reflects the expansion of the installed base and portfolio strength. This was despite a 9.0% drop in unit sales in the region, although overall figures were helped by higher sales in the rest of world.

Turning next to Pixel United, revenue edged up 0.9% to $1.33bn, despite a drop in bookings. Aristocrat noted its social casino franchises within this segment outperformed the market. In addition, overall Margin increased to 35.0%, reflecting a focus on optimising user acquisition spend and operational efficiency.

Finally, the new-look Interactive segment saw revenue rise 52.2% to $109.4m. Aristocrat said this was driven by customer experience services revenue growth, as well as ongoing scaling of igaming in North America and Europe. Focusing on igaming, Aristocrat notes launches with major operators in the US, Canada and UK, its expanding games portfolio and impact of the Roxor acquisition.

Higher costs fail to halt profit rise in H1

In terms of spending, cost of revenue was actually slightly lower year-on-year at $1.37bn. However, Aristocrat noted an increase in several areas across operating costs.

Selling, general and administrative was the main operational outgoing at $527.6m, while design and development costs topped $424.9m. As for finance costs, these were also higher at $79.2m.

However, such was the impact of revenue growth that pre-tax profit was up by 12.8% to $961.7m. After paying $250.5m in tax, net profit hit $711.3m, an increase of 8.9%.

Aristocrat also noted other factors that impacted bottom line for H1. These include an $83.8m negative impact from foreign currency exchange and a $13.4m loss on fair value of interest rate hedge. As such, Aristocrat ended H1 with a comprehensive net profit of $614.1m, up 39.0% year-on-year.

As for EBITDA, this also increased 12.2% to $1.20bn.

“The result again highlights resilience and scale as fundamental strengths of our business, supported by an effective focus on operational efficiency and extracting operating leverage,” Croker said.

“Looking ahead, we will continue to focus on portfolio performance and capturing the significant strategic opportunities in front of us, including integrating NeoGames and positioning Aristocrat Interactive to achieve its full potential in this next chapter of Aristocrat’s growth.”

Aristocrat set for strategic review

Aristocrat also used the H1 results announcement to set out details of an upcoming strategic review. This will focus on its casual and mid-core gaming assets: Big Fish Games and Plarium Global.

The group said with the expanded Interactive business now sitting alongside Gaming, it has “clear opportunities” to lean into its strengths in regulated gaming content. It said gaming content and enhanced technology spans multiple verticals at Aristocrat, including social Casino through its Product Madness business.

With this in mind, the group intends to conduct a strategic review of the casual and mid-core gaming assets. Aristocrat stressed no decisions have been made and will assess all options to maximise shareholder value and ensure the ongoing success of these businesses. Aristocrat will provide more detail on the review when appropriate.

Revenue was $9.8m lower than the $58.9m posted in the same month last year. Incidentally, April 2023 was the first full month of legal online sports betting in Massachusetts.  

However, the April revenue total is 6.3% higher than $46.2m in March of this year.

As to where revenue came from, online betting generated $49.4m during April. Retail betting resulted in a $256,593 loss, pushing the overall revenue total down.

In terms of spending, players in Massachusetts wagered a total of $603.3m on sports. This is 4.1% higher than last year but 6.1% behind $642.3m in March.

Of this total, some $591.5m was spent wagering online, while the remaining $11.7m was bet at retail sportsbooks.

DraftKings’ handle tops $304.1m in April

Looking at individual operators, DraftKings continues to lead the way in Massachusetts by some distance. During April, it generated $24.5m in sports betting revenue from $304.1m in total wagers.

Long-time rival FanDuel ranked second with revenue of $20.1m off $176.3m. Following in a distant third was BetMGM, posting $2.5m in revenue from $40.4m in bets.

As for the rest of the pack, ESPN Bet reported $1.8m in revenue, Fanatics $1.2m and Caesars $712,756.

In terms of retail operators, Encore Boston Harbor was the most successful of the three casinos that offer sports betting on site. Revenue at the casino hit $161,126, with players spending $5.2m.

Plainridge Park Casino reported $149,405 in revenue from $4.6m in bets. However, as MGM Springfield posted a $537,772 loss off $1.9m in bets, this left retail’s total in the red.

Casino revenue also dips in Massachusetts

Turning to the casino market, revenue here was also lower year-on-year. The $97.5m posted in April was 3.7% lower than last year and $12.2% behind March.

Slots accounted for $65.9m of this total, while table games generated $31.6m. 

Encore Boston Harbor again led the way with $60.9m in revenue, ahead of MGM Springfield in $22.8m and Plainridge Park Casino with $13.8m. 

Looking at the Massachusetts market as a whole, overall gambling revenue amounted to $146.6m. As for tax, the state collected $9.9m from sports betting activity and $27.7m casino gaming, with total tax at $37.6m.

Massachusetts considers further non-gaming related promotional bans

In other news out of Massachusetts, the state is considering further tightening promotional and advertising prohibitions. The Massachusetts Gaming Commission discussed banning promotions or bonuses that are not related to gaming at a meeting last month.

Massachusetts already has the most stringent advertising and promotional guidelines in the US. The regulator requires 21+ on any advertisement that can be seen in or from a professional sports venues. 

It was also the first to ban partnerships between universities and gambling companies. In addition, it prohibits gambling advertising at any venue where 75% or more of attendees are expected to be under the age of 21.