Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. In this edition we take a look at the latest ‘Young People and Gambling’ report, Japanese integrated resort progression and more Swedish challenges.
Increased growth and stronger margins due to investments in new games and studios, as well as an overall rise in demand globally, has seen Evolution Gaming continue a trend of reporting consistently strong financial performances.
Encouragement has also seen the firm “reaching completely new player types,” who it’s said are accessing live for the first time and are also being converted across other game categories such as slots.
Stressing that the firm is “favourably positioned to take advantage of the growing general demand for live,” Evolution saw revenues for Q3 increase 47 per cent to €94.7m (2018: €64.3) which nudged full-year figures to €259.8m, a 48 per cent rise from €175.2m.
The positive revenue derives from heightened commission income from existing customers and new customers, with successful new titles launches seeing a continually rising demand for live as dedicated tables and environments also contributed to the increase.
According to the 2019 Young People and Gambling survey published by the UK Gambling Commission, 11 per cent of 11-16 year olds have gambled in the past seven days with their own money.
The research, carried out by Ipsos MORI, found a three per cent decline in gambling participation among young persons compared to 2018. The report analysed the forms of gambling and gambling style games that young people legally take part in along with gambling on age restricted products.
The most popular form of gambling among 11-16 year olds was private bets for money (usually with friends), with 5 per cent of those taking part in the survey taking part in the activity. Meanwhile a further 3 per cent wager money on card games.
Tim Miller, executive director of the Gambling Commission, commented on the report: “This report demonstrates that children and young people’s interaction with gambling or gambling behaviours comes from three sources – gambling that they are legally allowed to participate in, gambling on age restricted products and gambling style games.
“Any child or young person that experiences harm from these areas is a concern to us and we are absolutely committed to doing everything we can to protect them from gambling harms.”
Japan is to establish its Casino Administration Committee next year as the country emphasises that its land-based industry is to have the most stringent regulations in the world, reports Inside Asian Gaming.
After a number of concerns caused a delay to the original date of establishment that was set for July 1, 2019, the regulatory body is to commence operations on January 7, 2020.
The committee is to have oversight of casino licensing and operations, and is set to be comprised of one committee chair and four members, who will serve terms of five years.
The group will be responsible for a plethora of administrative procedures, including revoking licenses when violations of the law have incurred.
Afforded full review and regulatory powers to uphold the strict standards, the Casino Administration Committee is utilising leading global casino jurisdictions, such as Nevada, as a reference point for how background investigations will be conducted, which included background checks for key personnel.
Kindred Group has seen challenges encountered earlier this year continue, as tough conditions in key markets hinder third quarter revenues.
Emphasising a commitment to growth within locally licensed markets earlier this year, the firm stated it continued to adjust in the Scandinavian nation.
Q3 revenue for Kindred dipped a slight two per cent to £226m (2018: 230.7m), for the full-year to date this stands at £676.6m, representing a 2.9 per cent increase from £657.5m.
Henrik Tjärnström, CEO of Kindred Group, explained as the the group publishes its latest financial report: “Similar to what we saw in the first half of 2019, re-regulation in Sweden resulted in difficult market conditions in the third quarter.
“The current terms and conditions make it challenging to attract customers into the system and can lead to worsening channelisation. This, in combination with a lower than usual sportsbook margin in September, resulted in significantly lower gross winnings revenue and a £12.8m decline in EBITDA contribution from Sweden compared to the third quarter in 2018.”