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iGB’s February Casino Dashboard review is just in!

January was understandably a quiet month for dealmaking with just 23 partnerships announced. But it wasn’t wild lockdown parties for all, as the studio/aggregator EGT was able to onboard 3 new studios, bringing them into contention for the rolling 6-month crown, alongside Gamingtec, SoftSwiss and Blue Ocean Gaming. Pronetgaming and Qtech join Everymatrix and PariPlay as the busiest aggregators in recent months.

Biggest aggregator dealmakers

Evoplay Entertainment still leads from the studio front over the last six months, notching up another distribution deal in January, as too did our runner up Skywind Group. Habanero have been twiddling pencils rather than their thumbs too, signing a couple of new distribution contracts.

Biggest studio dealmakers

On the games chart, there’s no change to our top three, with Starburst, Bonanza and Book Of Dead all sitting comfortably on the podium they seem to own. There are though some exciting new contenders…

Top 20 games by distribution

The funky new Hyper Strike by Gameburger Studios has joined their lucky number 9 games and two other Microgaming titles in the top half of the charts. NetEnt has added two new entrants Twin Spin Megaways and the catchy but not quite so catchily-titled Riches of Midgard: Land And Expand, so a few variations planned for the theme, perhaps. Caps duly tipped again to Big Time Gaming, for holding the candle in the conception of Twin Spin Megaways.

Just the one Christmas title retained a place in January’s charts, Betsoft Gaming’s Take Santa’s shop, which meant the return of some non-seasonal titles such as Blueprint Gaming’s Eye of Horus and Play’n Go’s Legacy Of Dead. Just a tad older than our top 3, Barcrest’s Rainbow Riches continues to deserve its place in the kaleidoscopic-light.

About the data

• Top 20 games by distribution ranks all games (excluding live games and table games) on operator sites by the number of operators that feature those games on their main casino page. Rankings are determined by the number of game appearances on the casino homepages of more than 1,000 casino sites. To see other charts including live and table games, or to filter by operator type and size, see our partner’s site, egamingmonitor.com.
• Biggest studio dealmakers covers B2B deals between studios and aggregators while Biggest aggregator dealmakers covers these same deals but from the aggregators’ perspective. Data on deals per month was collected from April 2020 onwards. Deal relationships between companies from all time are available on other charts, just not available monthly. Note that only deals reported on company websites or in the gaming press are collated.

.About eGaming Monitor
For 80 more charts with plenty more data, biggest dealmakers of all time, studio/operator deal analysis, game rankings by position on operator pages, table game comparisons, market shares by brand, country, domain and more, see our official data partner’s site at www.egamingmonitor.com

Egamingmonitor data supports three key supplier decisions: how to increase the number of operators and aggregators distributing games, how to achieve better exposure on sites where you are at least ‘listed’ and how to add more and/or better performing games to your portfolio.

Egamingmonitor also has a set of operator reports, which allow sites to benchmark their game portfolio with peers: how many (and which) studios or games do other operators have, and, of these which seem to perform best? Does this vary by game type, by country and so forth?

Revenue for the 12 months to 31 December was up 49.4% year-on-year to $1.97bn (£1.43bn/€1.63bn), while bookings – which adds deferred revenue to the total – were up 45.1% at $2.27bn. 

The year saw Zynga break revenue records across the board. Online games’ total of $1.67bn marked a 59.2% improvement on the prior year. While its advertising revenue grew at a slower rate, a 12.1% increase to $307.6m represented another milestone sum.

This included $763.1m in revenue from international markets, up 54.1% year-on-year and another new record. 

This growth was aided by the strong performance of proprietary titles such as Empires & Puzzles, Words With Friends and Harry Potter: Puzzles & Spells, and complemented by the acquisitions of Peak Games and Rollic. 

Peak was acquired for $1.85bn in July 2020, adding successful casual titles such as Toon Blast and Toy Blast to Zynga’s portfolio, while an $180m deal for Rollic, a hyper-casual Turkish studio, was finalised in October.

The operator’s ‘forever franchises’, including Zynga Poker, Words with Friends, as well as Peak’s Toon and Toy Blast titles, accounted for 70% ($1.38bn) of revenue, with a further 19% ($374.3m) coming from its social casino and card games. The remaining 11% ($216.7m) came from other products. 

A year of significant revenue growth, not to mention significant expansion through M&A, resulted in a rise in outgoings. Operating costs were up 47.1% to $2.35bn, as revenue-related expenses, research and development, sales and marketing outgoings all grew. 

This resulted in Zynga’s operating loss widening to $370.2m.

After financial items, it swung to a pre-tax loss of $405.4m, compared to a $47.3m profit in the prior year. However the 2019 figure was skewed by $322.5m in other income, that came predominantly from the sale of its San Francisco headquarters. 

After a $24.0m income tax charge was factored in, Zynga’s net loss for 2020 came to $429.4m. 

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), meanwhile, soared 205.3% to $266.2m. 

That year ended with a record fourth quarter performance, in which the operator set new three-month revenue and booking records. 

Revenue grew 22.4% to $616.0m in the three months to 31 December 2020, and bookings were up 11.3% to $698.9m. 

Q4’s revenue comprised $498.6m from online games (up 14.4%) and $117.4m from advertising, a 74.4% year-on-year improvement. While the ‘forever franchises’ accounted for 69% ($425.0m) of this total, the social casino and cards portfolio’s contribution rose to 17% ($104.7m), with 14% ($86.2m) from other games. 

Costs for the quarter did rise, though only marginally, climbing 3.0% to $643.5m, resulting in Zynga’s Q4 operating loss narrowing to $27.5m. After financial items and income taxes, this resulted in its net loss more than halving to $53.0m. Adjusted EBITDA totalled $89.9m, up 138.5%.

Chief executive Frank Gibeau (pictured) said Zynga’s “talented and resilient” teams performed well in an “unprecedented” year. 

“Our execution throughout 2020 added meaningful scale to our live services platform and strengthened our position as one of the leading mobile game publishers in the world,” Gibeau said. “Our live services portfolio is off to a tremendous start in 2021 led by our Forever Franchises, momentum in Harry Potter: Puzzles & Spells and two new top downloaded hyper-casual games from Rollic. 

“Zynga’s multi-year strategy of growing our live services, launching new games and investing in exciting growth opportunities has us well positioned for growth in 2021 and beyond.”

The business expects first quarter revenue to reach $635m – which would represent a 57% year-on-year improvement – and bookings to hit $680m. 

“Our topline performance will be driven by our live services, which includes the year-over-year additions of Toon Blast, Toy Blast and Harry Potter: Puzzles & Spells as well as existing and new hyper-casual games from Rollic, in addition to collective growth across the remainder of our live services portfolio,” Zynga explained. 

“These gains will be partially offset by declines in older mobile and web titles. Our topline guidance does not assume any meaningful contribution from our games currently in soft launch.”

Full-year revenue of £11.2m would mean a 62.3% year-on-year improvement on the £6.9m generated in 2019. This would surpass its December forecasts, which suggested revenue would hit £10.7m, by 4.6%.

The supplier said this was down to a record month in December, driven by its content licensing arm, which saw revenue more than double during the year. 

Over the 12 months to 31 December it launched with 26 new partners, including DraftKings in the US, and Flutter Entertainment’s Sky Betting and Gaming and Paddy Power Betfair in Europe and Britain. 

As a result of this growth, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £3.1m are projected for 2020. This again surpasses the supplier’s December forecasts of £2.7m.

“We are delighted with last year’s performance, which illustrates both the popularity of our games and our ability to licence multiple different partners,” Gaming Realms chair Michael Buckley said. “At the same time, we have taken a significant step forward to becoming a global platform business with multiple games, all of which is testament to our talented and motivated team. 

“The combination of our excellent games portfolio, our existing distribution agreements with global partners and our strong pipeline of new partnerships, makes us optimistic about the significant opportunities ahead as we focus on our continued expansion and international growth.”

Gaming Realms said the licensing division’s momentum had continued into 2021, with its Slingo content launching in Italy for Goldbet and Sisal. 

It is also continuing to expand across the US, striking a multi-state contract with BetMGM, and securing a provisional supplier licence for Michigan’s newly-regulated igaming market. It is currently live in New Jersey, and in the process of applying for a Pennsylvania supplier licence.

The supplier’s full 2020 results are expected during the week beginning 19 April.

Shares in Gaming Realms were trading up 0.59% at 34.20 pence per share in London this morning (11 February). 

Figures published by the Michigan Gaming Control Board (MGCB) show that the three casinos – the MGM Grand Detroit, MotorCity Casino and Greektown Casino – generated a total of $90.8m (£65.7m/€74.9m) in revenue last month, compared to $120.0m in the same month last year.

However, the January figure was some 279.9% higher than in December, though casinos were only open for nine days of that month, having been closed from November 18 to December 23.

MGM Grand Detroit and MotorCity Casino both held 38% of the Detroit market in January, ahead of Greektown Casino on 24%.

Table games and slots were responsible for €86.9m in revenue, down 27.7% on last year, with casinos currently limited as to how may patrons they can host at one time.

Gaming revenue at MGM was down 32.0% to $34.0m, while MotorCity’s revenue also fell 20.7% to $33.2m and Greektown 30.4% to $19.6m.

Read the full story on iGB North America.

Of its $5.16bn in revenue, MGM made the majority – $2.87bn – from casino operations, though this figure represented a 54.9% year-on-year decline.

Rooms brought in $830.4m, down 65.3%, while food and beverage revenue was down 67.6% to $696.0m and entertainment, retail and other revenue dropped 64.9% to $519.0m.

MGM made a further $244.9m in reimbursed costs, 43.9% less than in 2019.

The operator’s Las Vegas Strip resorts continued to be its main source of revenue, despite the properties’ contribution falling 61.5% to $2.25bn.

Its regional US operations were much more resilient, but revenue still fell 44.6% to $1.97bn.

MGM China saw the steepest drop in revenue amid particularly strict travel restrictions, with revenue down 77.4%, roughly in line with the overall decline in the Macau gaming market in 2020.

Read the full story on iGB North America

Lamont’s proposal would give him the power to negotiate amendments to the compact with the Mashantucket Pequot Tribe of Indians, signed in January 1993, and the agreement with the Mohegan Tribe, agreed in May 1994. 

The tribes hold exclusive rights to operate gaming in Connecticut, with the Mashantucket Pequot operating Foxwoods Resort Casino, and the Mohegan Tribe running Mohegan Sun. 

This expanded agreement would cover the operating of sports wagering, esports betting and daily fantasy contests, as well as online casino gaming and online keno. These would be available both on and off tribal lands. 

The new agreements would come into force as soon as they were approved by the Secretary of the US Department of the Interior. Lamont estimates they could generate $47.3m in new state revenue by the states’ 2023 fiscal year, beginning 1 July 2023. 

In a pre-recorded budget address Lamont explained that neighbouring states were moving ahead with sports betting and igaming.

“[Connecticut] should not leave these opportunities for other states to benefit from our inaction,” he said. “My administration has been in active negotiations with our tribal partners to bring the state’s gaming economy into the digital age. 

“And I am submitting legislation which reflects what I believe to be the best bet in ending this stalemate of inaction in a way which is in the best interest for the entire state.”

Read the full story on iGB North America.

Expert Link will design an entirely independent network that will operate across Great Britain and be representative of the entire British community, focusing on equality, diversity and inclusion.

Once formed, the group will also develop capacity and resource to meaningfully participate and influence national debate and policy making across the gambling sector.

GambleAware will initially fund the project for 18 months, with the overall aim for the network to become sustainable and independent, including identifying and applying for its own funding sources in the longer term.

“We know there are other lived experience groups already out there doing good work in this area, and this new group will fill any gaps and reach those who are harder to engage with,” GambleAware research director Alison Clare said.

“Our ambition is to see this independent network grow and develop so that it can help inform all aspects of the gambling debate, from policy and regulation, to research, treatment and prevention.”

Meanwhile, GambleAware has also signed a grant agreement for a new special interest lived experience group.

Referred to as ‘Affected Lived Experience Research, Treatment and Support Group’, or ‘ALERTS’, the group is made up solely of individuals with experience of treatment from within the National Gambling Treatment Service (NGTS).

ALERTS will focus on scrutinising existing treatment services and provide system-wide advice and guidance from a lived experience perspective about the NGTS.

The group will seek to ensure there is a representative voice for people with lived experience of gambling harms at the National Clinicians Network Forum of the NGTS.

GambleAware will provide initial funding for the group for a 12-month pilot, with ALERTS to operate as an independent advisor to GambleAware and the NGTS.

GambleAware commissioning manager Ruth Champion said: “In order for us to ensure that the treatment services we commission are what people want and need, but also effective in preventing and reducing gambling harms, we must ensure the voices of people with lived experience are heeded.

“The group is already contributing to existing work which builds on the peer support system which is available through NGTS. I welcome the establishment of this new group and look forward to working with them to develop further the treatment and support that people need for gambling harms.”

The double announcement comes after GambleAware this week also revealed that John McCracken, its director of commissioning for treatment services, has stepped down from his role.

McCracken spent just under three years at the charity, having joined in April 2018 from the UK government’s Department of Health, where he served as head of drugs policy.

Overall revenue for the 12 months through to 31 December stood at €387.5m (£340.0m/$469.8m), up 8.9% from €356.0m in the previous year.

Cost of sales in the operator’s financial year reached €67.9m and gaming duties €57.3m, which left a gross profit of €262.3m for the year, an increase of 10.6% on 2019.

Operating expenses for the year reached €210.5m, with marketing expenses the main outgoing for LeoVegas, after the operator spent €132.6m during the year. This left LeoVegas with €51.9m in earnings before interest, tax, depreciation and amortisation (EBITDA), up 4.9% year-on-year.

Earnings before interest and tax (EBIT), but after including depreciation and amortisation, was €22.8m, some 79.5% higher than the previous year.

After accounting for financial costs, profit before tax was €21.5m, more than double the €10.3m posted on the previous year. LeoVegas paid €2.2m in income tax, and including the impact foreign exchange, it ended the year with €19.3m in profit, up 103.2% on 2019.

Looking to the operator’s record fourth quarter, revenue for the three months to 31 December was €98.4m, some 13.0% higher than €87.1m in Q4 of 2019.

Breaking down its performance, LeoVegas said 75% of gross gaming revenue in Q4 was derived from classic casino games, including slots, while 16% came from live casino and the remaining 9% sports betting.

In terms of geographical performance, the Nordics accounted for 36% of revenue in Q4, behind the rest of Europe on 47%, where revenue share was up 28% year-on-year. The other 17% of revenue was generated in markets elsewhere in the world.

New depositing customers during the quarter were up by 15.0% year-on-year to 181,592, while returning depositing customers reached a record 280,391 in Q4, up 31.0% on 2019.

Cost of sales amounted to €17.1m and gaming duties €14.3m resulting in a gross profit of €66.9m, up 17.4%. Operating costs reached €58.9m, leaving €8.0m in EBITDA for the quarter.

After depreciation and amortisation, and amortisation of intangible assets and impairment of assets, LeoVegas posted an operating loss of €833,000, which was an improvement on a €2.5m loss in 2019. After financial costs, loss before tax was €1.5m, compared to €3.2m in the previous year.

LeoVegas paid €534,000 in tax during Q4, which meant it ended the three-month period was a loss of €1.9m, compared to €3.0m at the same point in 2019.

However, despite the Q4 loss, president and chief executive Gustaf Hagman was positive about the performance, declaring it’s the strongest-ever Q4 in the operator’s history.

“LeoVegas concluded the record year 2020 with its strongest fourth quarter ever, and we did this despite frequent changes to the gaming requirements in our markets in addition to finding ourselves in the midst of a global pandemic,” Hagman said.

“I am proud of our ability to quickly adapt to changed conditions through a high capacity for innovation at the same time as we are building an increasingly solid and diversified business.

“It is a demonstration of strength that LeoVegas delivered adjusted EBITDA growth of 25% for the full year while the operating cash flow increased almost 90 %. This was achieved despite maintaining a high investment pace with launches of new brands, new markets and product improvements.”

Hagman also noted a number of major highlights in the quarter, including the star of the migration of Royal Panda to its joint technical platform, as well as the launch of the Pink Casino brand in Canada.

LeoVegas also successfully issued a senior unsecured bond of SEK500m under a framework of SEK 800m in Q4.

“On the tailwinds of a strong 2020 we are now looking forward to a year with many exciting growth initiatives and an even stronger customer offering,” Hagman said.

The Netherlands is scheduled to open the regulated market on 1 October, after its launch was delayed several times. Dekker confirmed the latest delay in opening the market last month, with laws regulating the market now due to come into effect from 1 April.

Ahead of the market launching, Dekker answered a series of questions from MP Stieneke van der Graff, primarily focused around the protection of players – particularly young people – when the market opens.

Van der Graff raised a query about section 7.2 of the Dutch Remote Gambling Act (KOA), which refers to how certain articles within the Act can be implemented at different times if the government sees fit.

The MP asked whether this would be implemented to allow Section B of Article 6.2 to come into force. This section of the Act sets out how advertisements must not be aimed at on people aged 24 or under.

In response, Dekker said that, as licensees would be required to ensure adverts do not target children or young adults as part of their licensing requirements, there is no need to implement this part of the Act at an earlier stage.

“Licensees may not target their advertising at minors,” Dekker said. “For licence-holders who offer games of chance, they are not allowed to carry any advertising that focuses on young adults. Therefore, earlier entry into force of Article 6.2. of the Act is not necessary.”

In addition, van der Graff questioned whether current restrictions on certain gambling ads appearing on television before 9pm would remain in place. Dekker said that this requirement, which became law in November 2020, would remain and apply to all licensees when the market launches.

“For higher-risk games of chance, it is prohibited to broadcast adverts for this on television between 6am and 9pm,” Dekker said. “For other games of chance, this prohibition applies between 6am and 7pm.”

In terms of the help on offer to those who do suffer from gambling problems, van der Graff asked whether the government would consider working with people who specialise in this area when developing its support options.

Dekker said the proposed addiction prevention policies set out in the Act have been developed in close collaboration with experts in addiction prevention and care.  

He added that licence-holders will be required to have in place a policy to help customers avoid addiction problems and offer support to those suffering with these issues.

“To be able to connect sufficiently with the Dutch system of addiction treatment, it is necessary for the licensee to engage an expert organisation when compiling information regarding addiction prevention,” Dekker said.

“This will improve the quality of the information and the interest of the player to protect them from gambling addiction monitored.”

The operator has said it will use the licence to operate “a comprehensive international operation”, targeting players across the world with the exception of the United States, where it announced last year it is making efforts to pursue licences.

5Dimes owner and board member Laura Varela said the licence was part its steps towards an ambitious goal of expansion across the globe. The expansion was made possible by a $46.8m settlement with the US Department of Justice, ending an investigation against the operator from the Attorney’s Office for the Eastern District of Pennsylvania and also included a requirement to block all US customers.

“This undertaking in the Isle of Man is a first step towards relaunching the 5Dimes brand in all legalized jurisdictions around the world,” Varela said. “We are excited to welcome back many of our loyal customers to our top-of-the-line gaming experience while keeping our eyes set on future expansion opportunities in additional legal and regulated markets in the near future.”

Varela added that the strong reputation of an Isle of Man licence made it an attractive jurisdiction from which to launch international operations.

“This licensure is an exciting milestone for the 5Dimes brand,” Varela said. “The Isle of Man is a Tier-1 jurisdiction, known for its advanced approach to gambling and e-gaming legislation and its exceptional reputation in the international gaming community. 

“The Isle of Man sets high standards for its gaming operators and players, and we look forward to upholding the same level of principles and innovation with the launch of 5Dimes.”

The operator will also establish a management and operations team base in the country.