DraftKings details senior management reshuffle as CFO steps aside

Park will move into the newly created role on 1 May. He has served as CFO at DraftKings for almost five years, joining the business in June 2019.

In the new role, Park will lead initiatives to deploy technologies as part of efforts to capture additional operating efficiencies. He will also oversee the integration of the proposed $750m (£590m/€690m) acquisition of Jackpocket, announced last month.

“I have asked Park to take on a new role at DraftKings to address and capture large efficiency opportunities that I expect will generate significant incremental profitability over the coming years,” said DraftKings co-founder and CEO Jason Robins said. 

“Jason’s unique skill set, based on his accomplishments over the last five years as CFO and 11 years as a private equity operating partner, will allow us to further improve how we operate. In addition, I’m confident he will unlock the benefits of our proposed acquisition of Jackpocket following its closing to strengthen DraftKings’ position in US online gaming.”

DraftKings names Ellingson as new CFO

Replacing Park is Alan Ellingson, currently senior vice president of finance and analytics at DraftKings. He becomes CFO with effect from 1 May.

DraftKings said Ellingson will be tasked with continuing to improve shareholder value by driving the business towards its financial objectives.

Ellingson joined DraftKings in February 2020, starting as vice president of financial planning and analysis. He went on to become senior vice president of finance and took on his current role in January last year.

Prior to his time with DraftKings, Ellingson worked in several roles at Iron Mountain. 

“I am very excited to elevate Alan to CFO,” Robins said. “He will continue to lead the company on the very clear path that we have laid out. Alan has been with DraftKings for more than four years. He has extensive experience across our finance and analytics teams, and most importantly, deeply understands our core value drivers and focus on maximising shareholder value.”

DraftKings sets out growth potential for 2024

Details of the proposed Jackpocket acquisition were announced on the same day DraftKings posted its 2023 results.

Over the past year, revenue was up 63% to $3.7bn while loss from operations was cut from $1.50bn to $789.2m. In addition, negative adjusted EBITDA was $151.0m, compared to the previous year’s $721.8m.

DraftKings also ended 2023 on a high, with revenue in Q4 rising 44% to $1.2bn. Loss from operations was $43.8m compared to $232.2m in Q4 2022. Adjusted EBITDA increased from a negative $49.9m to positive $151.0m. 

Based on the figures, DraftKings published improved forecasts for the current financial year. 

DraftKings now expects to report its first full year of positive adjusted EBITDA during 2024, with earnings of up to $510m. This is higher than the previously stated $450m. 

As for revenue in 2024, this is set to be between $4.65bn and $4.90bn, up from the range of $4.50bn to $4.80bn. 

Taking a business from start-up to scale-up

I worked in the banking and finance industry for 20 years in various senior positions, but I reached a point where I felt like I needed a change.

The industry had changed a lot since I first started working in finance. It was like what we are seeing in gaming now – the industry was a lot of fun to work in, but more and more regulations were starting to be introduced.

When I decided I wanted a change of pace, I started talking with some great people, one of whom was an Angel Investor who had invested in Triggy. She knew that they were looking for an external CEO, so she introduced me to the company’s founders, and we just clicked right away.

Even though I didn’t know that much about the gaming industry back then, they knew that with my financial background, I had the skills needed to take Triggy to new heights.

Taking a leap of faith

The origin of CallsU in the igaming industry goes way back to 2006. Until recently the company has been growing organically and quietly, but my business partner and I have decided to get the brand out there and make it well known, so we launched CallsU last year.

I really believe in the CallsU offering; it achieves amazing ROI for our customers – actually, best in class across the entire industry, which we are super proud of.

To give you an idea of what CallsU does, we work with igaming operators offering player acquisition and reactivation services. My business partner has two master’s degrees in marketing and one PhD in behavioural science, so he knows this space really well.

For me personally, I have always loved a challenge. I enjoy building something from scratch and seeing it grow. The CEO role at CallsU seemed like it would be just that. I also believe we have great product-market-fit in igaming and the timing could not be better with operators realising the value and importance of retention, reactivation, and high-quality player engagement.

Analysing the data that CallsU has collected over the past 18 years in this niche has given us a deep understanding of how we can apply our technologies and expertise to get fantastic results.

New heights

As I mentioned earlier, when I first started at Triggy, I was completely new to the gaming industry. But over the last three and a half years I have learned so much about the industry and about building networks. I really understand the importance of having a strong team and good people in the network. For me, these lessons shape everything I do.

I always want to have great people around me – I want good investors, a good management team, and a strong company culture. I also want to work with great customers. You need amazing people to achieve amazing results. This was something that was so important for me when working at Triggy, and it’s just as important now at CallsU.

When you have a great team and great partnerships, it really is a win-win situation. It pushes you to find new ways to be more accountable, more professional and also have fun while doing it. This was a big part of the culture at Triggy and is something that I will foster at CallsU as well. It’s all about the people.

Of course, gambling companies must also keep up with the ever-changing digital standards brought on by the big tech brands. I’d like to think that the gambling industry is in a good position for this because we have better opportunities for growth than many other industries. There is still great potential to learn from other tech companies about how we can build amazing customer journeys and outstanding player experiences.

The igaming community is highly adaptable, and as an industry we can adjust accordingly to different conditions. We’re in a great position to push the boundaries of innovation even further.

Outside influences

When it comes to influences from other industries, social media would be the first that springs to mind as it’s something that most of us are using in our daily lives. It is super easy to work with and is really personalised to each individual and organisation. It’s also great way to show off a brand’s character and values.

I also think that the gaming industry can look to retail as an example on how to elevate the overall experience for bettors; for example, how retailers gather data on how our shopping and purchasing behaviours have changed, and how their brands can adjust marketing and engagement to suit individual customers.

From my personal experience, the finance industry could also provide a lot of inspiration for innovation. When I started in finance 25 years ago, the industry was in the same phase as the gaming industry is today. Sometimes I hear the same kind of concerns about changes in regulations and the challenges this can pose.

Finance practices can teach us about how we can work alongside regulators to support our businesses and improve our industry, rather than playing cat and mouse.

We have to look at regulatory changes with fresh eyes to find out how we can add value while still being compliant. We protect our collective interests by looking forward and embracing change.

Bolstering safer gambling

It is a combination of both technology and engagement, rather than just marketing, that can help the industry implement better safer gambling strategies today.

With technology, by harnessing artificial intelligence, machine learning and algorithms, we can analyse patterns in player behaviour and flag problematic activities. That can then enable us to reach out to those players and provide them with the support that they need when they need it most.

It is so important that we, as an industry, put player health at the forefront of our businesses. It comes back to that idea of protecting the reputation of our industry; as we are an entertainment-first industry. Gambling should be like going to the movies or going to see a live event. It should be fun and safe.

As with anything else, there is a portion of people who enjoy a flutter, there is a portion of the people who are averse to gambling, and then there is portion of people who are indifferent. If we can show those latter two groups of people that the gambling industry is safe entertainment by building and maintaining our reputation, it will have a lasting positive impact. We have so much to gain in this way. 

Offering a helping hand

There’s an expression from Richard Branson, which goes something like: “If somebody offers you an amazing opportunity but you are not sure you can do it, say yes – then learn how to do it later!”

I really love that, and I think that it rings true. If someone shows that they believe in you, take that opportunity. But most importantly, believe in yourself too. Try to push yourself out of your comfort zone and take every opportunity to learn something new.

I didn’t know much about the gaming industry when I started at Triggy. But I have learned so much about this sector over the last few years; that wouldn’t have been possible if I hadn’t pushed myself out of my comfort zone. It is challenging at first, but you will find a way.

For many women, we have been told that the only way we will be successful is if we imitate men – whether that be how we dress, how we speak to people, or the character traits that we display. However, I couldn’t disagree more. We need to show our individuality, and actively collaborate with our peers, bringing our individual perspectives as women. We are so much stronger as organisations when we come together and challenge our own ways of thinking.

This was prominent during the pandemic, when female leaders were at the forefront of change – introducing new ways of working and adapting their companies so they could navigate the challenges that the pandemic posed. As women, we should be proud of our unique competencies, viewpoints, and modes of thinking and doing.

Engage with women, and other likeminded people, who inspire you and you will succeed. At the end of the day, being a woman is a superpower – embrace your individuality and continue to push those boundaries.

Don’t expect Georgia lawmakers to legalise sports betting in 2024

Short answer: No.

Long answer: The state doesn’t need the money and lawmakers are nowhere near a consensus.

During a hearing in the House Higher Education Committee on SR 579 late on the afternoon of 18 March, there was fire and brimstone, a reference to heroin, and plenty of misinformation. Multiple lawmakers also noted that the state has a $16bn budget surplus, and isn’t in a hurry for new revenue streams.

And at least one lawmaker thinks that New York is part of New England. For those in need of a geography lesson, the six New England states are Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

Time running short and compromise isn’t happening

The bill is one of several that could legalise sports betting in a state that has been trying to craft a framework for a mobile market for four years, but where lawmakers have been unable to come to a compromise. It seems that legal online wagering will meet the same fate with 10 days left in the legislative session.

So far, the general assembly that can’t agree on the best use of wagering tax dollars, never mind what kind of guardrails to put around it or how to regulate it.

Senator Bill Cowsert introduced his bill to the committee by saying, “This constitutional amendment is way simpler than you think. It just allows for another form of gambling by the lottery.”

Would that it was so simple. Cowsert went on to explain that a tax rate would “come later,” as would the framework around legal betting. His proposal does include the creation of a new gambling commission and significant funds for problem and responsible gambling initiatives because, he said, the ones in place now aren’t effective enough.

“This kind of gambling is nothing more than state-sponsored predatory gambling,” – Mike Griffin @GaPublicAffairs

Sports betting gets first airing in Georgia House https://t.co/xEq3FoWzbW

— Michael R. Griffin (@mikegriffinsr) March 15, 2024

“It’s like telling the heroin dealer to stop selling me heroin,” Cowsert said of existing PG and RG initiatives. “That’s not going to stop you.”

Several witnesses wholeheartedly agreed and urged the committee to vote “no” on legal betting when the time comes. Mike Griffin on behalf of the Georgia Baptist Mission Board quoted his predecessor, telling the story of the day that a crowd shouted “Crucify him! Crucify him!” when Pontius Pilate said he could find no reason to condemn Jesus Christ and that the crowd should make that call.

Handle does not equal tax revenue

During the course of the hearing, it was clear that committee members didn’t have a good understanding of how sports betting works or, for that matter, where states that offer it are located or what tax rate is in place where.

Early on, Cowsert had to explain that when lawmakers hear that sports betting might bring in $100m to Georgia in a month, that number is likely referring to handle – the amount wagered – not operator revenue or tax revenue. The explanation was part of a conversation during which Cowsert was asked if he would come down off earmarking 15% of tax revenue for problem and responsible gaming programs.

A committee peer suggested that if the state were getting $100m in revenue per month, then $15m for PG and RG programs per month – $180m per year -might be overreach. The 15% number is higher than any other state sets aside, but it’s more likely that tax revenue would more in the range of $10m per month, depending on the tax rate, hold percentage, and whether or not promos are deductible.

In that scenario the state would set aside $1.5m per month or $18m per year for PG and RG programs. Those numbers are well above what the average state earmarks.

The lack of education about the subject is an indicator that lawmakers are not engaged enough in the topic to keep it moving forward.

While Cowsert himself said he “believes in the democratic process” and showed a willingness to negotiate, he also exposed his lack of knowledge on several fronts. When asked about how money for problem and responsible gaming would be spent and how much might realistically be needed, he admitted that he did not know what a reasonable number is or how much treatment programs cost.

New York is not in New England

He went on to say that at least one state, Massachusetts, has a 54% tax rate. No state has a 54% tax rate on sports betting. The highest is 51% in Arkansas (no national operators), New Hampshire (DraftKings has a monopoly), New York (operators are losing money but like the cache), and Rhode Island (IGT has a monopoly). When prompted that it is not Massachusetts – which has a 20% tax rate – Cowsert said, “It is one of those New England states, maybe New York.”

New York Picks Nine Operators To Launch State’s $1 Billion Sports Betting Market-https://t.co/NREWWerkP5 #SportsBetting

— Laura Anthony, Esq. (@LauraAnthonyEsq) November 10, 2021

Moments later, Representative Marcus Wiedower attempted to correct Cowsert, saying that he empathised on how his peer got “twisted up” on “Northern states” while pointing out that New York is not in New England. But Wiedower incorrectly said that New York has “a monopoly, they have one operator, so they can charge that for one operator.” Nine online betting platforms are licensed in the Empire State.

Enabling legislation for the constitutional amendment had a hearing last week, but no vote. SB 386 would allow for up to 16 digital wagering platforms, sets licensing fees and a 20% tax rate, and earmarks nearly all tax revenue to the state’s HOPE scholarships. Cowsert’s bill sends funding to multiple educational programs and other initiatives. The constitutional amendment and enabling legislation differ in several areas, causing committee chair Chuck Martin last week to say that the Senate would have to “marry” them before moving forward.

The Higher Education Committee will meet again Wednesday, but Martin did not commit to continuing the discussion.

Inspired expects to hit revenue and earnings targets in Q4

Inspired did not set out any figures at this point but did say it hopes to publish its Q4 results next month. The group expects to file its Form 10-K on or before April 15.

This filing will be some way past the initial time that Inspired was expected to report its Q4 figures. As such, it has now filed a Form 12b-25 – Notification of Late Filing – with the US Securities and Exchange Commission.

The delay comes in the wake of a broad review of accounting policies, with this taking place during Q4. Inspired said it devoted “considerable” resources to this review, and as such this led to the results being delayed. 

This review is connected with restatements of previously issued financial statements, with this also delaying its Q3 results. Errors flagged include compliance with US GAAP, linked to accounting policies for capitalising software development costs.

Incidentally, Nasdaq contacted Inspired in mid-Q4, warned that the late filing placed it in breach of its rules. The stock exchange gave Inspired until 22 January to submit a plan to regain compliance, or risk having its shares de-listed. 

Inspired submitted its plan in January, with this being accepted by Nasdaq last month. As such, Inspired avoided any further action over the matter.

What did Inspired cover in the review?

Upon announcing the initial delay back in November, Inspired revealed several errors. These related to the application of relevant accounting standards to projects. 

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

Based on these findings, Inspired said one or more additional “material weaknesses” existed in internal control over financial reporting. This led to it committing to implement changes to remediate such weaknesses including restating financial statements for the periods of concern.

Inspired sought to allay investor fears, saying the planned changes will not impact its cash position or overall business plan.

Mixed Q3 at Inspired

As for the delayed Q3 results, these made for somewhat mixed reading. Revenue for the three months to 30 September 2023 climbed 30,9% to $97.5m (£76.8m/€89.9m). 

However, higher spending across several areas meant Inspired ended Q3 with a lower net profit of $7.2, down 58.6%. In addition, adjusted EBITDA slipped 2.2% to $26.7m.

As to how Q3 impacted Inspired in the year to date, revenue during the nine months to 30 September grew 18.0% to $241.8m. 

However, spending was higher in almost all areas in the nine-month period. This meant net loss for the period reached $1.0m, compared to a $20.4m profit in the previous year. 

There was some good news for Inspired with adjusted EBITDA creeping up 1.1% to $74.0m.

Australia’s ACMA requests blocking of another eight gambling sites

ACMA named Lucky7even, 50 Crowns, Rockwin, Bitdreams, Mr Pacho, Casino Infinity, Zota Bet and Spicyjackpots as sites to be blocked. It said each site was operating in breach of the Interactive Gambling Act 2001.

The organisation did not go into detail about specific breaches of the Act. However, it did set out how it can take action if a website has committed a certain offence.

These actions include providing banned interactive gambling services to Australian players, such as online casinos, slots and in-play sports betting. ACMA may also request blocking if a website offers gambling without a licence, or publishes adverts for other unlicenced services.

While ACMA cannot actually block sites, it can request Australian internet service providers (ISPs) to do so.

Since ACMA made its first request in November 2019, some 945 illegal gambling and affiliate websites have been blocked. In addition, 221 illegal services have pulled out of Australia since ACMA began enforcing illegal offshore gambling rules.

“ACMA is reminding consumers that even if a service looks legitimate, its unlikely to have important consumer protections,” ACMA said. “This means our laws can’t help if something goes wrong, like if the service provider withholds winnings. 

“Australians can check if a wagering service is licensed to operate in Australia on the ACMA register.”

ACMA blocking orders mount up

The latest round of requests comes after ACMA last month singled out 12 other websites for blocking.

Playzilla, Wazamba, Zet Casino and Slots Palace were among those identified by ACMA. The other sites were are Nomini, Casinia, SG Casino, Fez Bet, Buran Casino, Spin Better, Golden Bet and Clash.gg.

Other recent blocking orders covered Greenspin, Slotman, Jeetcity, Betibet, Candyland Casino, Thunderpick, Golden Lion, Digits 7, Sector 777, New Vegas and PayID Pokies.

Meanwhile, towards the end of 2023, ACMA took aim at four leading online gambling brands for breaching in-play betting rules. However, ACMA later conceded the brands eventually complied with rules and would not take further action.

Initially, ACMA said the operators breached interactive gambling rules by using ‘Fast/Quick codes’ to facilitate in-play betting on sports. Entain-owned Ladbrokes and Neds, as well as Hillside’s Bet365 and Sportsbet, were the four guilty parties named by ACMA.

The Interactive Gambling Act 2001 prohibits in-play betting on sports matches, with only limited exceptions.

SkyCity confirms McPherson as full-time chief information officer

McPherson takes on the role having served as interim CIO at SkyCity since November last year. 

He re-joined SkyCity after two-and-a-half years as chief technology officer at New Zealand media business, Stuff. McPherson previously worked as ICT portfolio manager at SkyCity between September 2019 and June 2021.

Earlier in his career, McPherson served as CEO of Experieco, head of national design at Spark Digital NZ, and CEO of International Telematics, a business he also co-founded.

“Happy to be back with the SkyCity Entertainment Group family,” McPherson said in a post today (18 March) on LinkedIn.

SkyCity faces civil penalty proceedings

The news comes at a somewhat troubling time for SkyCity. Last month, the New Zealand department of internal affairs announced it is set to file civil penalty proceedings in the country’s high court against the groups/ SkyCity Casino Management (SCML) subsidiary.

The charges relate to SCML’s alleged non-compliance with the New Zealand Anti-Money Laundering and Countering Financing of Terrorism Act 2009. Should the claim be accepted – in whole or partly – by the court, SCML could face a penalty of up to NZ$8.0m (£3.8m/€4.5m/US$4.9m).

Proceedings follow a review of SCML’s compliance. SCML holds the licence for operating SkyCity land-based casinos in Auckland, Hamilton and Queensland. The draft pleadings set out five separate causes of action seen as “significant” compliance issues related to the Act. 

SkyCity said these issues mainly refer to historical matters, some of which were previously self-reported to the department. The operator added that it has been running an anti-money laundering and counter-terrorism financing enhancement programme to address compliance systems and correct historical shortcomings for the past few years. 

Responding to the civil proceedings, SkyCity says it will work with the department to rectify any issues.

Wider concerns for SkyCity

The case is the latest in a line of regulatory issues to befall SkyCity. In September, the New Zealand secretary of the department of internal affairs applied to suspend SkyCity’s casino licence for an estimated 10 days. This was also in relation to the SCML subsidiary, but it is not clear whether this related to the civil proceedings.

Over in Australia, SkyCity is also facing regulatory concerns. In late 2022, the Australian Transaction Reports and Analysis Centre launched federal proceedings against SkyCity over anti-money laundering failings at SkyCity Adelaide.

The operator in May 2023 launched a review into its counter-terrorist financing and anti-money laundering programs. SkyCity in August also made a provision of AU$45m ahead of an assumed civil penalty from Austrac. 

In October, SkyCity announced Michael Ahearne is to step down from his role as chief executive. Ahearne is due to leave the business this month.

The year ended with SkyCity warning adjusted EBITDA could fall in its 2024 financial year. This is despite previously saying it expected an increase.

New Jersey gambling revenue up in February despite land-based decline

Revenue for February amounted to $461.5m (£362.4m/€423.8m). This was 12.0% ahead of $412.2m in New Jersey last year but 17.5% behind January’s $559.1m total.

Land-based gambling was again the primary source of revenue for New Jersey in February. However, the $211.6m posted was 1.6% behind $215.0m in 2023 and also represented the second consecutive month of decline.

Some $158.9m of all land-based revenue came from slot machines, marginally lower than $159.3m in the previous year. Table games win also slipped 5.3% to $52.7m.

Another month of igaming growth in New Jersey

In contrast to the land-based decline was significant growth within the igaming sector. Here, revenue was 27.9% higher at $182.3m. This was also only just shy of the record $183.3m reported in January.

Slots accounted for $180.0m of all online gaming revenue, a rise of 28.3%. The other $2.3m came from peer-to-peer poker, an increase of 0.4%.

Golden Nugget held its position as the igaming market leader with $51.5m in revenue. Not far behind in second was Resorts Digital on $48.0m, then Borgata with $40.0m.

Sports betting revenue tops $67.6m

Turning to sports wagering and revenue here also increased 23.7% year-on-year to $67.6m. However, this was some way short of the record $170.8m in January despite February featuring the NFL’s end-of-season Super Bowl showpiece.

In terms of handle, New Jersey players wagered a total of $1.08bn in February, up 27.6% on last year. Some $1.04bn was bet online, in addition tp $37.9m at retail sportsbooks across the state.

Meadowlands again claimed top spot in the sports betting market with $35.1m in revenue. The racecourse is partnered with FanDuel, PointsBet and SuperBook for sports wagering.

Elsewhere, DraftKings and Resorts World ranked second in this segment with revenue of $24.2m. Borgata and BetMGM followed in third with $4.5m in monthly revenue.

Year-to-date revenue in New Jersey already past $1.00bn

Looking to the state’s year-to-date performance, revenue for the opening two months hit $1.02bn. This was 20.2% ahead of $849.1m at the same point in 2023.

Land-based revenue was 2.4% lower at $416.3m, but growth elsewhere puts New Jersey on track for what could be a record year.

Online gambling revenue was 23.7% higher at $365.6m, while sports betting revenue hiked 87.7% to $238.3m. 

At this rate, New Jersey could be set for a record year across igaming and sports betting, as well as total market revenue. 

Rebuck exits New Jersey regulator

The monthly figures come after it was confirmed at the end of February that David Rebuck was stepping down as director of the New Jersey Division of Gaming Enforcement (DGE).

Rebuck led the New Jersey regulator for 13 years, the longest-serving director in its history. In total, he served the Garden State for more than 36 years.

Deputy director Mary Jo Flaherty has assumed the role of interim director. Flaherty joined the DGE as deputy attorney general in January 1988, providing legal advice and legislation.

New Hampshire sports betting declines again in February

Total handle for New Hampshire in February was $62.3m (£48.9m/€57.2m), 15.0% down on January’s figure of $73.3m. This is the third month in a row that New Hampshire has seen a decline in sports betting handle.

Online continues to dominate the market, with mobile accounting for $55.9m in handle, 86.9% of the total figure. Retail was responsible for just $6.4m of the handle for New Hampshire in February.

February’s gross gaming revenue (GGR) also fell to $6.6m from January’s $9.8m, again a significant 33.0% month-on-month drop. February’s GGR figure was the lowest in five months since September’s $6.2m.

The decline in the state’s sports betting figures is also having a negative impact on its tax revenues. These fell to another five-month low of just $2.8m, having dropped 36% from January’s $4.5m.

New Hampshire’s concerning year-on-year comparison

While February’s handle did take New Hampshire past $500m in wagers accepted for its financial year, it was also 28.4% behind the same month last year, when $87.0m in bets was accepted in New Hampshire.

February’s GGR of $6.6m is 7.0% short of February 2023’s $7.1m, while the state’s revenue share was also 12% behind the same month last year at $2.9m.

The state’s handle figure of $513.2m in its financial year so far is over $100m behind the same point last year, when New Hampshire had received $623.8m in bets over the first eight months of its 2022 financial year.

The GGR to date is currently $54.1m, 6.8% behind the same point of New Hampshire’s FY2022 total of $58.1m. State tax revenue from sports betting is also lagging behind FY2022 at $23.8m, having already accumulated $26.7m in tax at this point last year.

Delaware reveals year-on-year igaming and betting growth in February

Looking first to igaming, revenue in February hit $3.9m (£3.1m/€3.6m). This was up 254.6% from $1.1m in Delaware last year and, interestingly, 14.7% ahead of January’s $3.4m total.

Video lottery games accounted for $2.8m of all revenue, with online table games at $1.1m for the month. 

Spending-wise, players bet $117.2m online in February, including $68.4m on video lottery and $48.8m on table games. This was up 208.4% year-on-year and also 13.5% ahead of $103.3m in January.

Delaware Park generated the most igaming revenue during the month, posting a total of $2.1m. Harrington Raceway placed second with $1.0m, then Bally’s Dover on $717,119.

Delaware sports betting handle rockets 236.6%

Turning to sports betting, revenue for this sector amounted to $560,449 in February. This was 82.8% ahead of February 2023 but 68.6% behind $1.8m in January.

As for betting handle, this reached $13.8m. The February total was 236.6% clear of the same month last year but 2.8% less than January’s total.

Delaware Park also claimed top spot in the sports betting market with $473,002 in revenue. Placing second was Harrington Raceway with $133,989, then Bally’s Dover at $82,984.

The revenue total would have been higher had it not been for a $129,526 loss from retailers running sports betting. 

Sun International reveals 5.5% income increase for 2023

Total income for the 12 months to 31 December 2023 was 7.0% higher than ZAR11.3m in the previous year. Sun International said the results reflect the “resilience” of its omni-channel portfolio and “disciplined” execution strategy.

Looking across the business, there are mixed results for Sun International. While income was higher in some segments, this was not the case for other areas of the group. Stand-out highlights include a record performance by SunBet and a 14.8% hike in income from its Sun City casino.

In contrast, there were declines across several of its casino properties, with slots operations having been impacted by “load shedding”.

However, it was a good year for the group, which in December expanded its portfolio with the acquisition of Peermont. The deal, which includes the flagship Emperors Palace resort and online brand PalaceBet, is worth ZAR7.30bn. Sun says the purchase may close before the end of the year.

“The performance reflects the quality of its operating businesses, the resilience of its omni-channel portfolio and disciplined execution on strategy which continues to drive shareholder value,” Sun said.

“We are executing effectively on our omni-channel strategy and are focused on extracting further operational efficiencies as we look to protect and grow our income and margins.”

Positive signs for Sun International in 2024

The group added that while the wider economy and load shedding is placing pressure on its urban casinos, trading levels at the start of 2024 have improved. Again, it noted the success of SunBet.

“Our limited pay-out machines operations are demonstrating continued resilience,” Sun said. “SunBet is achieving significant income growth and is exceeding key performance indicators. This strong momentum is expected to continue with another substantial increase this year as the business expands rapidly. 

“Our resort and hotel properties have continued to perform exceptionally well, and we anticipate another good year from them in 2024. Overall, we are seeing positive growth in both income and adjusted EBITDA.”

Sports betting and tables growth offsets slots decline

Breaking down the 2023 results, gaming was the main source of income at ZAR9.29bn, up 3.2%. 

Slots remained the main source of income at ZAR5.51bn, but this was 2.8% lower than the previous year. However, tables income was up 5.9% to ZAR1.59bm and income from the Sun Slots and SunBet brands also jumped 1.9% to ZAR2.19bn.

As for other revenue from non-gaming operations, this increased 21.7% to ZAR2.81bn. Sun said rooms revenue was up 32.6% to ZAR1.13bn, food and beverage revenue 14.9% to ZAR986m and other revenue 13.7% to ZAR591m.

In terms of individual operations, GrandWest casino drew the most income at ZAR1.88bn, a 3.0% increase. Sun City followed on ZAR1.87bn then Sun Time Square at ZAR1.51bn.

Other stand-out figures for Sun include the record ZAR733m generated by SunBet. The Sun Slots brand also had a good year with ZAR1.47bn in income, though this was 2.7% down from 2022’s total.

Net profit up 62.1% in 2023

Turning to spending, costs were higher across several areas for Sun. The main outgoing for 2023 was employee expenses at ZAR2.31bn, up 7.6% year-on-year. Levies and VAT on casino income also increased 2.6% to ZAR2.20bn.

However, this did not stop Sun posting an improved operating profit, with this rising 2.5% to ZAR2.50bn for the year. Even after including other, finance-related costs, pre-tax profit was 29.4% higher at ZAR1.77bn.

Sun paid ZAR555m in total tax and also accounted for ZAR79m in negative foreign currency translation and ZAR22m related to fair value on listed shares. As such, this resulted in a total comprehensive net profit of ZAR1.30bn for 2023, up 62.1% from the previous year.

In addition, group adjusted EBITDA for the year was 2.4% higher at ZAR3.40bn.

“Our balance sheet remains strong and positions us to continue delivering industry leading cash returns to shareholders,” Sun said. “While we anticipate that the proposed acquisition of Peermont may be concluded this year, we do not expect it to have a significant impact on our 2024 financial performance. 

“In the meantime, we will be focused on comprehensive integration planning and positioning the combined group to deliver earnings and cash flow accretion with comfortable levels of gearing immediately post completion.

“Leveraging off our current momentum and proven leadership, we are confident our strategy will continue to yield exceptional results.”