Gross betting revenue amounted to NZ$38.1m (£19.7m/€22.8m/US$27.6m) for the month, up 43.8% from $26.5m in the same month last year and $7.4m above budget for January.
The monthly total was also up 4.4% from $36.5m in December of 2020.
Turnover in January was $40.2m above budget at $236.0m, which TAB NZ said was driven by an $8.1m increase in sports wagering, $9.7m rise in international turnover, $18.6m jump in domestic racing betting and $3.8m jump in turnover from VIP gambling.
Focusing on betting activity, TAB NZ said turnover on thoroughbred racing in New Zealand during the month was $57.6m, helped by record $6.7m turnover at New Year’s Day racing at Ellerslie.
Turnover on domestic harness racing was $23.1m for the month and greyhound racing $12.5m. Outside the country, wagering on Australian events was driven by thoroughbred racing.
In terms of other sports, turnover reached $68.3m, some $9.1m ahead of budget, with almost 43.0% of monthly turnover attributed to basketball betting, the majority of which focused on North America’s National Basketball Association.
Operating expenses for the month were $300,000 below budget at $9.9m, while TAB NZ paid $13.3m to racing codes, above the $12.5m budgeted for January.
Net profit for the month reached $17.1m, which was 44.9% ahead of budget for January and also $5.8m higher than the same month last year. Some $16.3m of net profit was attributed to betting activity, and the remaining $1.4m to gaming.
For the financial year to date – the six months through to 31 January 2021 – TAB NZ said net profit reached $94.5m, which was $25.9m ahead of budget.
The organisation paid $74.4m to racing codes during the period, which was also ahead of budget by $5.6m.
Tthe DGOJ pointed out that loot boxes have “quickly become a very relevant business model” in both paid and free-to-play games.
It said around half of mobile games and 35% of computer games contain the mechanic. Loot boxes are ‘blind-boxed’ items that players purchase for a fee, for the chance to obtain valuable in-game items.
It also said that loot boxes share many features with gambling products, including “near misses” and “ losses disguised as wins”.
It added that some countries such as Belgium have already opted to consider loot boxes gambling products, while others including Great Britain are looking further into the matter.
The regulator also explained that under Spain’s Gambling Act, gambling involves payment for participation, chance in determining the result and a prize transferred to the winner.
The DGOJ therefore said loot boxes could clearly be considered gambling. This depended on whether the purchase of the box was an action distinct from purchase of the game, if the prize depended on chance and if the prize could be exchanged – inside of outside of the game – for money.
“This legal definition, known and assimilated by all entities with activity related to gambling and betting, is also applicable to loot boxes,” the DGOJ said.
“It is irrelevant if that reward is a cosmetic improvement in the video game or competitive advantage for the player who obtains it.”
The DGOJ asked a series of questions to determine how best to regulate the feature. The first of these questions was whether loot boxes should be considered under the remit of the country’s gambling legislation or whether a new regulatory model should be designed.
It later asked whether, if loot boxes are considered gambling products, they should be considered legal products or prohibited entirely.
If a new framework is needed, the DGOJ then requested information on what this should entail and whether a specific consumer protection framework should be devised.
If loot boxes are considered to be regulated under gambling laws, the DGOJ then asked whether regulations need to be updated or can be applied in their existing form. In particular, it asked whether definitions should be expanded to include loot boxes that produce prizes that cannot be exchanged for money.
In addition, it requested views on whether loot box operators would need to apply for gambling licences and who exactly would be considered a licence-holder.
The consultation lasts until 31 March, with the regulator accepting submissions by email.
GambleAware’s first detailed reports on Scottish and Welsh users of the National Gambling Treatment Service (NGTS) reveal that more than half of those that complete treatment are no longer classed as problem gamblers.
Furthermore, treatment significantly improved individuals’ Problem Gambling Severity Index (PSGI) score. This uses answers to 12 questions to class players as non-problem, low-risk, moderate-risk or problem gamblers.
In Scotland, 90% those that completed treatment over the year from 30 April 2019 to 31 March 2020 saw their PSGI score improve, while in Wales 94% showed an improvement.
During that year, 296 Scottish residents were treated within the NGTS, compared to 271 in Wales. Of these Scottish patients, 77% were male, while in Wales 68% of those treated were men.
In both countries, online adoption has accelerated in the past five years. Between 2015-16 and 2019-20 the percentage of players grew from 52% to 70% in Scotland, and from 65% to 69% in Wales, making it by far the most popular channel.
In each case, bookmakers were the next most popular gambling outlets, though usage declined in the same timescale. The number of Scottish gamblers betting via bookies fell from 54% to 42%, while in Wales this number dropped from 47% to 33%.
In Scotland, service users’ average monthly spend before assessment came to £1,588, with 63% having fallen into debt as a result of gambling. This fell to £1,330 in Wales, though a slightly higher percentage (65%) had debts due to their activity.
Both countries’ average spend in the month before assessment fell below that of the UK, which stood at £2,102.
Those treated in Scotland were more likely to self-refer, with 92% of the individuals seeking help themselves. This dropped to 84% in Wales. However in Wales, professional referrals, such as those from doctors, were significantly higher than in the rest of the UK.
In total 4% of referrals to the NGTS in Wales were made by professionals, compared to 1.5% across the UK as a whole.
Treatment in Scotland, however, lasted for an average of five weeks, while Welsh treatment ran for double this time.
Both countries saw the majority of patients complete their treatment, though Welsh patients were far more likely to do so. Of those to ended treatment in Wales in 2019-20, 80% completed all scheduled sessions, compared to 58% in Scotland.
However in each case, there were significant improvements in the percentage of individuals completing treatment, and ending treatment with an improved PSGI score.
Between 2015-16 and 2019-20, the number of Welsh patients completing treatment rose from 64% to 80% with PSGI scores improving by a median of 14 points between their earlier and last appointments.
Of these individuals, 57% were no longer classed as problem gamblers at the end of their treatment. Their Core-10 score, which measures an individual’s psychological distress by asking them ten questions and giving them a score between 0 to 40, also improved significantly, with 58% no longer in acute distress.
In Scotland, the percentage of patients completing treatment rose from 51% to 58%, and PSGI scores improved by a median of 12 points. This meant 54% were no longer classed as problem players, while 54% of clients were classed as under the clinical cut-off on the CORE-10 scale.
GambleAware did note that 29% of patients in Scotland dropped out before the scheduled end of their treatment. Wales’ drop-out rate was almost half that of Scotland, at 15%, though in both cases GambleAware said this did not necessarily mean they had returned to gambling.
“It is possible for service users to drop out of one treatment in favour of another, however further research and follow up is necessary to determine drop-out cause,” it noted.
Lisa-Marie Patton, team leader at GamCare Scotland, said the country’s results showed how treatment can make a real difference to people’s lives.
As a result, Patton continued, efforts were underway to ensure the NGTS was available to the widest possible number of people.
“Better links with health and social care services will help us to connect more people with the treatment that they need for gambling harms,” she said.
Diana Yorath, Wales development officer for the Addiction Recovery Agency added that it was dedicated to increasing uptake in the NGTS across the country.
“We are actively collaborating with NHS partners to improve referral routes to ensure individuals have access to the best treatment for them,” Yorath said. “Alongside this, we are working to build awareness both of gambling harms and of the NGTS and helpline through engaging with grassroot community initiatives.”
The country-specific reports follow GambleAware releasing its first detailed report on the NGTS in the UK, in October 2020. A survey that the number of individuals competing treatment rose from 59% in 2015-16 to 69% in 2019-20, of whom 90% saw their PSGI scores improve. As with Scotland and Wales, the majority of players (69%) tended to gamble online, compared to 38% gambling via bookmakers.
As we look to the year ahead, industry experts share their thoughts on the opportunities and challenges facing the industry.
In part five we talk to recruitment experts. In part one we heard from igaming operators and suppliers, in part two land-based operators and suppliers, part three finance experts and part four those in marketing. In parts six to eight we will focus on technology and innovation, regulation and social responsibility.
Interviewees
Camilla Bille, vice president people and culture, Better Collective Andrew Bulloss, partner and head of the gaming practice, Odgers Berndtson Marwa Mitchell, vice president recruitment North America, Pentasia
Looking back at 2020, what – other than the Covid-19 pandemic – did you feel was transformational for the industry? And how much of a lasting effect do you think the Covid-19 pandemic will have going forward?
Camillla Bille
Camilla Bille: It has been yet another interesting year, with rapid developments in the industry. I will not highlight one transformational event but instead say that technological and regulatory developments, combined with changes in societies across the globe in general, have had a huge impact on the industry. Looking back at January 2020 (which seems just weeks ago) and fast-forwarding to today, I think there are very few industries that can showcase such big developments as the igaming industry demonstrates. That is great fun to be part of. Focusing on the pandemic, just like many other companies, at Better Collective we have found new ways of how we structure work. I think the learnings from this will have lasting impacts on how we continue to work, communicate and collaborate in the future.
Andrew Bulloss: I think Covid-19 and the enforced move to remote working should be a catalyst for permanent change as to how employers structure their workforce. Digital businesses in particular should be thinking in a more sophisticated way about leveraging remote working to attract quality, diverse talent that they may not have had access to before because of where they are based as a business. The ability to open up the talent pool globally and not be restricted by having certain roles in certain offices is significant and could drive a competitive advantage for those willing to embrace this approach.
Marwa Mitchell: While US land-based casinos were hit hard in 2020, the online gaming market entered a new growth phase. Two years on from the PASPA repeal, those who have entered the digital space are already experiencing accelerating demand. There’s also already far greater competition, with consumers expecting more sophisticated products and services. All this is driving demand for an ever-increasing quantity and skillset-range of talent.
How the US online gaming industry will hire the skills it requires remains a largely unanswered question. There’s a significant gap between job requirements (both at senior level, and also for the volume of mid-level and junior openings) and available talent. Covid-19’s severe impact on jobs in other sectors will increase the talent pool in some areas, but in 2021 US igaming employers will still need to work hard to attract digital and gambling industry specialists. Openness to remote working should certainly address some of these challenges, widening talent pools beyond the hubs of NJ, PA and NV. Employers will undoubtedly also need to consider hiring for ‘potential’ rather than direct experience.
What do you feel is going to be a game-changer for the industry in the coming year?
CB: With 2020 in mind, it is difficult not to look at the pandemic. How will the pandemic develop and as a result, how will this affect the way organisations work, collaborate and communicate in the future – and again as a result, how will this affect the culture of a company? That will be interesting to follow. We have already taken actions this year to work around the pandemic, e.g. working more from home, further digitised the way we organise and structure cross-team collaborations, etc. The development of the pandemic will continue to impact not only organisations in the igaming industry but it will also be a game-changer for many industries in 2021.
Andrew Bulloss
AB: I think this depends on a number of factors, one being regulation, particularly in the UK with the outcome of pending regulation and what that means operators can and cannot do. This has a knock-on effect on talent and people and what sort of roles become important as part of this set-up. With a new president in the US, it will be interesting to see what happens with current US immigration legislation and whether this opens up the US market for European gaming talent.
MM: The game is already set for serious growth as ever-more states introduce sportsbook legislation. Additional legislation for casino is likely to follow hot on the heels of sports betting, and many land-based operators will be considering how to transition online; perhaps by reskilling existing workforces, or by bringing in new digital-savvy talent. As the industry evolves, businesses should expect tighter regulatory monitoring. There’s a strong business case for ensuring that regulatory compliance is baked into processes from the start, if necessary, by applying best practice as adhered to elsewhere in the world. This experience may need to be sought out through consulting partners initially, though ultimately operators will want to build strong in-house teams of their own.
On the other hand, what do you feel could disrupt the sector or slow progress?
CB: The battle for talent is intense and as an industry, we need to be on our toes to be able to continue to attract the talent we need to keep innovating. It is a task we have been facing for many years and it is definitely not an easy one as we are competing against many other companies from across various sectors.
AB: The drive for diverse talent has never been higher across all sectors and whilst many gaming employers are looking to create more diverse leadership teams, I would like to see more being done at entry level to facilitate change and create an authentic message to diverse groups that the gaming sector is one that can appeal to them. This authenticity is important – diversity is no longer about optics. Having a diverse board and leadership team as the face of the business is not enough. The benefits of a diverse workforce are clear as day and any organisation that doesn’t get behind this quickly will find themselves chasing others that have. Regulation is forcing organisations to think differently, different answers don’t always come from asking the same people.
Marwa Mitchell
MM: Clearly, the severe ongoing economic downturn is likely to impact our industry. In particular, ongoing disruption to sporting events – which are so critical to driving demand – will hamper success. That said, business leaders and investors are still clearly focused on the long-term ‘big picture’ of the industry’s potential, and this level of confidence is reflected in ongoing team expansion plans, active staff training and increased hiring activity.
Remote working is also evidently here to stay, certainly in the medium term and perhaps the long term too. In our Employers Survey 2020, we found that productivity rates in the industry had been broadly sustained, with many even reporting an uplift. Yet, as the US igaming industry remains so young, it will surely be difficult to build truly cohesive and high-performing teams from scratch without being in one location.
What type of people or roles do you think the industry might be looking for more than ever in 2021?
CB: I think to some degree we will follow the broader developments within the general IT industry, meaning we will continue to look for people who can convert data into meaningful conclusions, as well as developers. At Better Collective, however, we will continue to first and foremost look for people with a curious and ambitious mindset that suits our culture.
AB: I think the compliance community in the sector needs a shot in the arm. There are too few people willing to challenge current compliance processes for the good of the customer. Technology, product and UX/UI-based marketing have been the prevalent skills in 2020 and I don’t expect that to reduce in 2021. There is a clear demand for talent in emerging European markets rather than established, mature markets.
Lots of private equity-backed businesses are looking for exceptional people to help them transform unsophisticated gaming assets. At a leadership level we will be looking for evidence of the following traits: 1) agility and resilience – decision-making and direction setting under pressure and at pace; 2) authenticity – compassion, empathy, humility; and 3) creating purpose across the company – how does this sense of purpose create loyalty with players and employees and how do you ensure you do the best for both communities?
MM: Commercial leaders – those who can competently manage North American P&Ls for incoming B2C and B2B businesses entering the market – are already highly sought-after, and demand will increase further still in 2021. As the industry emerges and evolves, demand for talent will move from “only the most senior” to a broader mix of specialisms and skillsets. Other key hires that expanding businesses will be hiring as a top priority in the coming year will be directors of marketing, product and operations (B2C). In all cases, direct industry experience carries a significant additional value. Employers will need a clearly defined talent acquisition strategy and be prepared to compete hard to attract the best people.
Slots made up the majority of sales, but this total was down 33.8% to $18.87bn. Table game revenue came to $5.09bn, meanwhile, down 39.4%.
Despite the suspension of all major sports for a large portion of the year, sports betting GGR was up 68.9% to $1.53bn, thanks mostly to new state markets opening up. Online gaming GGR rose the most sharply, tripling to $1.55bn.
The AGA said 2020’s drop in revenue was unprecedented.
“The devastating impact of the Covid-19 pandemic on the gaming industry, with GGR contracting by nearly one-third (31.3%) year-over-year, overshadows previous slumps,” it said. “During the Great Recession, gaming revenue decreased by a comparatively mild 8.4 percent during the span of two years.”
The steep drop in revenue was mostly due to the closure of Crown’s venues as a result of the novel coronavirus (Covid-19) pandemic. This included the operator’s flagship Crown Melbourne venue, which was closed for much of the six months.
Crown Perth, meanwhile, reopened in late-June 2020. Chief financial officer Alan McGregor said the property had performed “ahead of expectations” since reopening.
“The main gaming floor started strongly, with performance moderating across the half,” McGregor said. “Non-gaming revenues were adversely impacted by capacity constraints and reduced foot traffic to the property, but have shown improvement through the half, particularly over the summer holiday season, despite the restrictions which remain in place,”
“Crown Melbourne has progressively recommenced operations from November, albeit with only limited initial access to the property. Since the easing of restrictions on 9 December, results had shown improvement but continued to be impacted by ongoing limitations on capacity.”
Crown Sydney opened for the first time in December 2020, but gaming operations could not yet open because of the inquiry into the operator’s licence.
Last week, the inquiry published its full report, which found that it was unsuitable to operate the casino. It may still do so if it makes certain changes, including ending its ties with junket operators and conducting financial and compliance audits.
Following the release of the report, chief executive Ken Barton stepped down with executive chairman Helen Coonan taking over on an interim basis.
“Despite the uncomfortable reading at times, Crown has welcomed the Commissioner’s report,” Coonan said. “We see it as an opportunity for a complete and comprehensive corporate reset.
“We recognise the need for immediate and swift action and I would like to reiterate my commitment to driving the necessary ‘root and branch’ change that is required,” she explained. “Crown has committed to working constructively with ILGA to advance reforms necessary to allow it to give effect to the Restricted Gaming Licence in Sydney.”
Coonan added that she was determined to lead a turnaround for the operator.
“As interim executive chairman, I am determined to provide the leadership required to drive change,” she said. “My job is to lead Crown to become a stronger company, a more transparent company and a more respected company. A better company.”
Because of the closures of Crown Melbourne, Crown Perth became the operator’s leading property in terms of revenue, bringing in $409.0m, down 5.3%.
Gaming machine revenue was the largest portion of this total, at $171.6m, up 19.0%, while main floor table games brought in $103.5m, up 5.7%. Hold-adjusted VIP revenue was just $400,000, down 99.0%, and non-gaming revenue $133.5m.
Crown noted that VIP revenue across all of its resorts dropped especially significantly because of restrictions on international travel.
The operator said that Crown Melbourne’s revenue – adjusted for hold percentages – came to $97.1m for the quarter, down 90.5%. This was made up of main floor table revenue of $30.3m, machine revenue of $23.4m, adjusted VIP revenue of $3.7m and non-gaming revenue of $39.7m.
While Crown did not reveal its revenue from digital operations, it said earnings before interest, tax, depreciation and amortisation (EBITDA) was $23.2m.
Crown’s overall EBITDA for the half was $4.4m, down 99.0%.
After accounting for closure costs, pre-opening costs and other one-off items, Crown’s net loss after tax was $120.9m, compared to a $218.2m profit a year before.
Crown also announced that Mary Manos has stepped down from her roles as general counsel and company secretary with immediate effect. McGregor will take over as interim secretary.
“In consultation with Mary, the Board has determined that, with the regulatory challenges facing Crown, the role of General Counsel and Company Secretary will be split into two separate roles,” Coonan said. “This represents a further significant governance improvement for Crown and demonstrates Crown’s commitment to a well resourced governance, legal and compliance function.”
Directors Guy Jalland, Michael Johnston and Andrew Demetriou also resigned this week, with Nigel Morrison being appointed to Demetriou’s spot.
The new partnership provides more than 25 licensed Italian sportsbook brands operating on Microgame’s Intrabos platform solution with Genius’ LiveData and LiveTrading services.
Through the partnership, Microgame’s customers will have access to Genius’ official live sports data and pricing for major sports. This includes the English Premier League, Euroleague basketball, LigaMX, Nascar and a full range of FIBA and FIVB competitions.
Jack Davison, chief commercial officer at Genius Sports, said: “The Italian market has been a hub of major investment for Genius Sports in recent years, from hiring, to product development and official rights acquisitions.
“Partnering with Microgame, another respected supplier in the region, is expected to further our local reach and will enable over 25 new sportsbooks to unlock additional in-play engagement and revenues.”
Microgame’s Italian market customer base includes Goldbet, Betaland and Betflag.
Marco Castaldo, chief executive of Microgame, said: “The partnership with Genius Sports Group is an important step in the continuing development of our sportsbook.
“Adding the Genius data service will further improve top-quality event coverage for our customers, ensuring a better player experience and additional revenue opportunities.”
The deal comes just days after Genius expanded its presence in the US market through a multi-state official data partnership with WynnBET, Wynn Resorts’ online US sportsbook brand.
Under the terms of the agreement, 888casino will host a range of the supplier’s live casino and random number generator (RNG) games on its platform.
In addition, the partnership will see Playtech host a bespoke 888 branded studio in its live casino production facility in Riga, Latvia. 888’s studio will feature a range of live casino games and exclusive content from Playtech, including Live Slots.
Edo Haitin, chief executive of live casino at Playtech, said: “888’s significant investment in, and commitment to, the live casino vertical demonstrates just how important an entertainment-led experience is becoming for the modern player.
“Our partnership comes at a time when we are launching more new games and variants than ever. We’re delighted to be working with a market leader like 888 to deliver an exciting, innovative Live and RNG offering for their players.”
Playtech has spoken encouragingly about the potential growth of the live casino vertical during its most recent financial reports. In its H1 2020 results, it described “significant momentum in live casino with new signings and existing licensees” after adding new customers Totalizator Sportowy, BetConstruct and Svenska Spel and expanding with existing partners.
Guy Cohen, 888’s senior vice president and head of B2C, said: “At 888, we are constantly looking for partnerships that strengthen our product offering and I believe Playtech’s live casino and RNG content will do exactly that.
“The new games will expand upon our existing suite of games to provide new, exciting, and engaging gaming experiences within a safe and secure environment.
“I look forward to welcoming Playtech’s content onto 888casino and growing our partnership together.”
If enacted, the Gambling (Prohibition of Advertising) Bill 2021 would prohibit all forms of gambling advertising except sponsorship. The party said the bill would divorce the gambling industry from the everyday enjoyment of sports, politics and entertainment.
While Labour is in opposition, Minister for Public Health and Fine Gael TD Frankie Feighan has already said that he would support “the gist” of the bill, but said would need to read it before determining if he would back the bill itself.
“Gambling addiction is a silent scourge across the nation, which is why the Labour Party has published legislation to address this national problem,” said Labour’s spokesperson on sport, Senator Mark Wall, who co-introduced the bill with TD Aodhán Ó Ríordáin.
“In 2019, Ireland had the 7th highest gambling spend in the world at €9.8 billion (or €379.51 per head). Our legislation to ‘#BeatTheAds’ will prevent unnecessary encouragement of gambling – banning all gambling ads across the media, on public transport, billboards and online outlets.”
Wall said that the gambling industry has worked hard to create a strong link in the public’s minds between sports events and betting.
He described advertising around sports broadcasts as a bombardment, stating that 75.4% of broadcasts show at least one gambling advertisement, and that gambling ads are the most common type shown during televised sports and the 7th most common form of ad shown generally.
He went on to say that changes driven by the increased availability of gambling on mobile mean that anyone can now gamble any amount of money in an instant, whereas previously the need to go to a betting shop to gamble helped limit any potential damage.
Deputy Ó Ríordáin added: “Gambling is an addiction and it should be treated as such. We’re introducing legislation to ban the manipulation carried out by the industry which is one step forward in addressing this issue.”
“This should be treated as a public health issue and we need to ensure that there are adequate supports in place to help those suffering from addiction.”
Ó Ríordáin pointed to evidence from the College of Psychiatrists in Ireland, demonstrating a connection between the high volume of betting advertisements and an increase in problem gambling amid lockdowns relating to the novel coronavirus (Covid-19) pandemic.
“They see the consequences of gambling addiction on a daily basis and they have called for an immediate ban on all gambling advertising,” he said.
“That is what our legislation does, it is informed by medical professionals who are at the coalface of this particular public health issue.”
Ó Ríordáin called upon the public of Ireland to share its experiences of gambling and the targeted advertising they receive from the industry with government, in order to inform on how to “break the link between the enjoyment of sports and betting once and for all.”
In a Dáil Éireann debate today on addiction and homelessness, leader of the Labour Party Alan Kelly said: “During the pandemic, I can guarantee we will see a crisis due to gambling because people are spending so much time isolated, on their own or in family settings. It is so deadly dangerous. It needs to be fully regulated and advertising needs to be dealt with.”
Kelly asked Feighan if he would support the bill, and said that Wall and Ó Ríordáin would consider amendments to their legislation.
“I have not seen the Bill, but I would support its gist,” the Minister responded. “I do not know what is in the Bill, but its mood is something of which I would be supportive.”
Deputy Thomas Gould added concerns for Ireland’s population of young people, stating that: “We see from data from the European school survey that Irish males aged between 15 and 16-years old have more than double the problem gambling rate of the general population.”
In 2019, Minister of State David Stanton revealed that the creation of a new gambling regulator in Ireland would take place over a period of around 18 months.
As part of a multiyear strategic partnership, Bally’s has secured the rights to use NHL marks and logos as well as use of the ice hockey competition’s official data across its portfolio of sports betting products.
In addition, through its media partnership with Sinclair Broadcast Group – which will see Fox Sports rebrand to Bally Sports – the gaming operator will create content for NHL fans that will be integrated into live NHL game coverage spanning 19 regional sports networks.
The NHL deal is the latest development at Bally’s in a busy few months in which major acquisitions and integrations have accelerated its status in the US B2C and B2B sports betting markets through its Bally’s Casinos and Bally’s Interactive divisions.
