Category: News

On a like-for-like basis, revenue for the three months to 31 December 2020 grew 146.1% year-on-year to $322.2m. If prior year figures from Diamond Eagle Acquisition Corp (DEAC) and SBTech were factored in, revenue grew 98.2% on a proforma basis. 

The combination with special purpose acquisition company DEAC and SBTech saw DraftKings list on the Nasdaq Stock Exchange in April 2020. 

DraftKings chief executive Jason Robins explained that a favorable sporting calendar in Q4, as well as strong marketing execution, helped the operator generate “tremendous” customer acquisition and engagement. 

“In the fourth quarter of 2020, we saw [Monthly Unique Players (MUPs)] increase 43.9% to 1.5m and [average revenue per monthly unique player (ARPMUP)] increase 54.8% to $65,” he said. 

The fourth quarter saw the business continue to expand, rolling out mobile betting in Tennessee. DraftKings noted that the state had the best two-month launch in the US to date, with over $300m staked across November and December.

A number of commercial and strategic agreements were also struck during the quarter. Perhaps most notable among these was an agreement with the Mashantucket Pequot Tribal Nation and Foxwoods Resorts Casino that sees the brand gain access to Connecticut’s sports betting market when regulation permits. 

On the B2C side, it also announced agreements with Turner Sports, the Philadelphia Eagles, the Detroit Pistons, Nashville Predators and its first golf partnership, with professional player Bryson DeChambeau.

The legacy SBTech B2B business, meanwhile, rolled out a new sportsbook for PalaceBet, a brand operated by South Africa’s Peermont Hotels, Gaming and Resorts, and extended its partnership with Mansion Group’s MansionBet brand. 

However, the business’ rapid growth was accompanied by a sharper rise in operating costs. Expenditure more than doubled across all segments, including marketing spend of $192.0m (up 205.3%); cost of revenue jumping 142.9% to $159.3m; and product and technology expenses growing from $7.4m in the prior year to $66.1m. 

This resulted in the business’ operating loss widening to $268.3m. Adjusted loss before interest, tax, depreciation and amortisation, meanwhile, came to $87.9m. Once financial items and income taxes were factored in, DraftKings’ net loss for the fourth quarter came to $266.4m. 

The operator’s strong fourth quarter performance has prompted it to raise its 2021 revenue guidance from a range of $750m to $850m, to the $900m to $1bn range. 

This, it said, was based on its 2020 growth, coupled with new state launches – such as Michigan and Virginia – in January 2021, and the assumption that all scheduled sporting seasons could run without interruption.

Should 2021 revenue fall within this range, it would suggest year-on-year growth of between 39.9% and 55.4% from the $643.5m generated in the 2020 calendar year. 

Read the full story on iGB North America.

Full-year revenue for the Asian gaming giant declined 69.9% to $1.73bn (£1.24bn/€1.43bn), with all of its venues closed as a result of Covid-19 for significant parts of the year and facing restrictions after reopening. 

Its Macau and Philippines propers were worst affected. In Macau, travel bans, restrictions and quarantine requirements on visitors to and from the special administrative region slashed tourism and visitation.

None of its Macau properties – the Altira, City of Dreams or Studio City – had an occupancy rate greater than 36% for the year. 

In the Philippines, operations were badly affected by an enhanced community quarantine that ran until 30 November 2020. 

During this time its City of Dreams Manila property has been conducting a trial run of gaming and hospitality operations since 19 June, which is ongoing. Its occupancy rate, at 53%, was significantly better than Melco’s Macau properties, though still well down from 2019’s 98% rate. 

Gaming operations in Cyprus, meanwhile, were subject to a new regional lockdown from 12 November, which has since been extended nationwide. Melco’s operations in Paphos and Limassol remain shuttered at the time of writing. 

As a result operating revenue was down across the board. Casino’s contribution remained the largest at $1.47bn, though also saw the largest year-on-year decline, falling 70.4% below 2019’s total. 

Hotel rooms accounted for $108.6m of Melco’s 2020 revenue, down 69.0%, while food and beverage revenue declined 68.3% to $74.5m. 

Revenue from entertainment, retail and other sources was the smallest segment for the year, at $58.1m, though this also experienced the smallest year-on-year decline. 

As with the majority of land-based operators, Melco saw the sharp decline in revenue accompanied by a slower drop in outgoings for the year. Total operating expenses for 2020 were down 46.5% at $2.67bn, resulting in the business swinging from an operating profit of $747.7m in 2019 to a $940.6m loss. 

When items such as depreciation and amortisation, share-based compensation and developments costs were factored back in, as well as fees and levies, loss before interest, tax, depreciation and amortisation (EBITDA loss) came to $177.3m. 

Financial expenses rose year-on-year to $517.0m, which resulted in a pre-tax loss of $1.46bn. This was reduced slightly by a $2.9m income tax benefit and a $191.1m contribution from Melco’s share of non-controlling interests’ profits, for a full-year net loss of $1.26bn. 

This followed a fourth quarter that Melco chairman and chief executive Laurence Ho said showed a “moderate recovery” in business operations. However, revenue for the three months to 31 December was still down 63.6% year-on-year at $528.0m. 

This was comprised largely of gaming revenue, which made up $440.4m of the total, down 64.7%. Hotel rooms accounted for a further $41.4m, with $26.5m coming from food and beverage, and $19.7m from entertainment, retail and other sources. 

Operating expenses, meanwhile, dropped 47.3% to $672.8m, for an operating loss of $144.8m. However Q4 EBITDA remained positive, at $43.6m, though this was still down significantly from 2019’s $383.2m total. 

Financial outgoings were down year-on-year, at $87.8m, for a pre-tax loss of $232.6m. This was reduced to a net loss of $199.7m after an income tax charge and a share of profits from non-controlling interests were factored in.

Looking ahead, Melco said it was difficult to say how or when it would recover from the Covid-19 pandemic. This, it explained, would be affected by multiple variables, from effective vaccination programmes, to new strains of the virus, to declines in the share of individuals’ discretionary income allocated to gaming.

However, restrictions on Macau have been slowly lifted since September 2020, when the Chinese government reinstated the individual visa scheme for the island. It was not until 23 February that the final quarantine requirements – for Shijiazhuang in Hebei province and Suihua in Heilongjiang province – were lifted. 

Two key development projects have already been pushed back as a result. The second phase of construction to expand Studio City will require additional work, while it has been granted additional time to complete work on the City of Dreams Mediterranean in Cyprus. 

That was originally required to be completed by 31 December 2021, though that has been pushed back to 30 September, 2022 by the government of Cyprus. 

Ho added that the operator remained committed to bidding for an integrated resort licence in Japan. 

“We believe our focus on the Asian premium segment, a portfolio of high-quality assets, devotion to craftsmanship, dedication to world-class entertainment offerings, market-leading social safeguard systems, established track record of successful partnerships, culture of exceptional guest service, and a continuing commitment to employee development puts Melco in a strong position to help Japan realize the vision of developing an exceptional IR with a uniquely Japanese touch,” Ho explained. 

“Due to Covid-19, the process in Japan has been delayed and remains complex but has renewed momentum as jurisdictions are again initiating RFP processes. We will continue to be patient as we evaluate the landscape to ensure that Melco pursues the right opportunity that takes advantage of Melco’s core strengths to drive strong value creation.”

Gross gaming revenue for the opening month of 2021 amounted to $23.1m, up 25.5% from the previous record of $18.4m set in November and also 34.3% higher than $17.2m in December.

Online accounted for $22.7m of revenue in January, compared to $481,276 from retail, land-based sports wagering facilities.

In terms of handle, players in Colorado spent $326.9m in sports betting during the month, an increase of 14.9% on the existing record of $284.6m reported in December.

Basketball was the most popular sport to wager on in the month with a total of $88.4m in bets.

Football also proved popular, attracting $75.0m in bets, helped by the National Football League’s play-offs and championship games.

Read the full story on iGB North America.

The original deal, announced earlier this month, saw Nexus agree to pay $21.0m (£15.1m/€17.3m) to take ownership of the stake.

However, after taxes and transaction expenses, the final value of the deal was $16.2m.

Ahead of the deal completing, Intralot signed a three-year extension to a contract with Intralot de Peru SA, until 2024, to continue providing gaming technology and support services.

This came after Intralot signed extended deals with a number of other clients, including Lotterywest, the state lottery of Western Australia.

Intralot also renewed its lottery services deal with Greek lottery monopoly OPAP until 2023, and became one of the first companies to receive a Buenos Aires provincial igaming licence in partnership with local operator Binbaires.

The results cover a year in which regional casino operator Eldorado Resorts acquired Caesars Entertainment, with the new business then taking the Caesars name.

The combined business made $3.93bn through regional operations in 2020, down 35.5%. Las Vegas revenue fell more sharply, by 54.8% to $1.77bn, while international and online revenue was $384m, down 35.5%.

The operator’s full breakdown of financial results covered only the legacy Eldorado business for up until July 20, 2020, and then the combined business from that point on. Counting revenue in this way, the business brought in $3.47bn, up 37.4% year-on-year, thanks mostly to the extra revenue generated from the acquisition. 

Of the remaining $2.63bn of the combined business’s revenue, $2.49bn came from the legacy Caesars business, and the remaining $138m came from properties Eldorado divested to complete the transaction.

Read the full story on iGB North America

Overall revenue for the 12 months through to 31 December 2021 amounted to SEK46.9m, up from SEK25.7m in the previous financial year.

Scout did not publish a full breakdown of revenue, but it did note that this year-on-year growth came despite what it described as a “strong negative impact” from the novel coronavirus (Covid-19) pandemic, with many sports events having been postponed or cancelled in the second quarter.

However, Scout also said the pandemic resulted in a faster pace of digitalisation in general and for companies operating in the entertainment sector in particular, which in turn benefited the Scout business.

Looking at spending in 2020 and total operating expenses for the year reached SEK92.7m, an increase of 18.1% from SEK78.5m in the previous year. This was primarily down to a 78.8% jump in external expenses to SEK51.3m, while Scout was able to reduce personnel costs by 12.6% to SEK34.8m.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at loss of SEK39.2m, compared to a SEK42.8m loss in the previous year.

After including depreciation and amortisation, this left Scout with an operating loss of SEK45.8m, which was an improvement on the SEK52.8m loss reported at the end of 2019.

However, after taking into account a negative effect of SEK8.8m from financial items, loss before tax was SEK54.6m, compared to SEK52.2m in the previous year.

Scout received SEK65,000 in tax benefits in 20202, meaning it ended the year with a total loss of SEK54.6m, which was slightly worse than the SEK52.2m posted in 2019.

The provider also published its fourth-quarter results, during which revenue climbed 69.0% year-on-year to SEK16.9m. Costs in Q4 were 16.8% higher at SEK16.8m, mainly due to higher marketing costs.

Operating loss improved from SEK10.9m in Q4 of 2019 to SEK7.9m, while after including a SEK7.9m negative impact from financial items, loss before tax was SEK13.9m, compared to SEK13.3m in 2019.

After receiving SEK16,000 in tax benefits, Scout ended the quarter with a loss of SEK13.9m, slightly higher than SEK13.3m in the previous year.

“Scout Gaming continues to meet strong demand at the same time as we have so far only touched the long-term potential,” Scout’s chief executive Andreas Ternstrom said.  “We continue to focus on long-term shareholder value, which is the prime goal.

“I look forward to 2021 with great confidence. The start of the year has been strong and we are expecting continuous heavy growth.”

The gambling industry is one with a long history of adaptation for the purpose of growth, and, in some cases, survival.

Considering the events of the last year, the industry as a whole is once again on the precipice of yet another seismic shift.

This time, however, in order to come out of the tunnel more powerful than ever, that adaptation is going to require perhaps the largest single overhaul of the casino floor in half a century.

In my new white paper, I look at historical player data from the global brick-and-mortar landscape in an effort to identify what the most significant changes need to be in order to appeal to a new generation of casino visitors.

In the paper, I look closely at the existing target demographics of some of the most valuable players on the casino floor: slot players. Generally speaking, this is an ageing demographic, and little has been done to adapt the floor model to cater to a new, younger generation with a longer player lifespan.

As we emerge from this pandemic, the heavy reliance on slot players over 55 will no longer satisfy the financial objectives of brick-and-mortar operations. There is a hugely underserved population of carded players that casinos need to engage with using new machines and updated technology. As such, there exists a major opportunity in skill-based gaming.

Studies show that integrating skill-based gaming machines entices new players to engage with the slot machine floor space (in some cases making up 80% of total unit space on the casino floor) without cannibalising play from other machines.

This, combined with the technological advantages of modernised games can help encourage new play-throughs, and ultimately widen the base of active slot players with a demographic that has been infamously elusive to date.

Learn more by reading the white paper below, or by downloading it here.

January revenue across all products and services came to $761.8m, which represented an 11.4% improvement from December 2020. However, it also represented a 26.6% year-on-year decline. 

This broke down to $526.5m from slots across all outlets – down 26.7% from January 2020 – while table, counter and card games revenue fell 35.6% to $235.4m. 

The table, counter and card games segment did include strong returns from the state’s sportsbooks, with revenue up 159.9% at $52.4m. 

Sports betting was one of the few products in this category to post year-on-year growth, and its contribution was the second highest of any product after blackjack, which generated revenue of $55.0m. 

Based on an 8.10% hold percentage, this suggested stakes for the month totalled $646.7m, a 28.7% increase. Mobile wagering accounted for $363.7m of amounts wagered, and $23.1m of revenue. 

This meant that Nevada lagged far behind New Jersey, where revenue of $82.6msmashed the state’s previous monthly record.

Handle in the Garden State was also significantly higher at $948.7m – and that represented a month-on-month decline. 

Read the full story on iGB North America.

The SPAC, which aims to raise $250m in an initial public offering on the Nasdaq exchange, has not selected a specific business combination target.

However, it said it was hoping to purchase a business in the field of casino gaming, sports betting, igaming, live events, family entertainment destination hospitality or sports.

It added that its management team was “well-positioned to partner with a management team to develop, analyze and execute on the next wave of growth and consolidation” within the gaming industry.

Acies may look to acquire a consumer-facing brand or a business-to-business platform, and while it said it would primarily focus on the US, it added that its search may expand to other markets.

It added that it was looking for a business with a “highly defensible” and “disruptive” business model within a fundamentally strong sector.

Read the full story on iGB North America

The developer said the new service, which builds on the existing online casino package, is a response to an increasing number of gaming operators broadening their offering to include betting.

The module includes an upgraded API, which enables raw data collection on multiple player activities within sportsbook solutions from igaming brands.

As well as player activities such as visits, registrations and first deposits, Affilka now also collects multiple data points on sports betting activities such as bets, cancelled bets, wins, GGR and bonuses.

Anastasia Borovaya, Affilka product owner at SoftSwiss, said: “We’re excited to be launching this new module for the sports betting industry and therefore expanding our services to more exciting new projects.

“The sports betting industry is developing at an exceptionally rapid pace. More and more of our customers who operate online casinos are expanding by establishing sportsbook solutions.

“We couldn’t stand aside, therefore we decided to offer our current and future clients a new option that expands opportunities and helps to increase their efficiency.”

SoftSwiss added that significant improvements have been made to the commission constructor for CPA and RevShare deals within sportsbook projects.

A spokesperson added: “In terms of revenue share deals, sportsbook operators can share a percentage of their net revenue with their partners. The percentage of revenue payable to affiliates may be fixed or may be defined by various performance tiers.”