Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. Today we revisit the EGBA’s end-of-year report, PlayOhio’s predictions on the state’s annual bet generation, PNG’s fourth Pennsylvania property and GiG’s SkyCity investment, and an array of acquisitive moves.
According to end-of-year data published by the European Gaming and Betting Association, Europe’s online gambling market is expected to be accelerated by the ongoing COVID-19 pandemic, along with the use of mobile devices.
In partnership with H2 Gambling Capital, the report predicts that by 2026, online GGR is expected to reach 41 per cent of Europe’s total gambling revenue, up from a 26 per cent share in 2019.
Another trend expected to continue is the increasing use of mobile devices, such as phones and tablets for online gambling, with the share of bets from mobile devices this year set to account for 50.5 per cent of Europe’s online bets for the first time, with the EGBA expecting this number to reach 61.5 per cent of all online bets by 2026.
“The growth trend of Europe’s online gambling market continues but there remains significant room for online development in markets such as France, Germany, Italy, and Spain, where the online share of the total gambling market is still relatively low despite the online markets in these countries being relatively mature,” commented Maarten Haijer, secretary general at the EGBA.
Online and retail operators in Ohio are predicted to generate between $9bn and $12bn in bets annually once fully matured, according to PlayOhio.
Predicted to come as soon as the market’s third year, this estimation would also accumulate between $700m and $900m in gross revenue each year as PlayOhio also pinpointed that the state’s sports betting market is capable of producing as much as $900m in gaming revenue, $12bn in wagers, and $90m in state taxes once the market matures.
“Ohio is a large state that has embraced an open model, which will make it immensely attractive to both national and local operators,” said Eric Ramsey, analyst for the PlayUSA.com network, which includes PlayOhio.com.
“The common element among the largest markets in the US is that they all foster competition among many operators. Those markets are far more appealing to bettors, which in turn makes the industry a more reliable revenue producer for the state.”
Penn National Gaming has opened its fourth gaming and entertainment property in Pennsylvania as it marks the grand opening of its $111m Hollywood Casino Morgantown.
Once open to the public, Hollywood Casino Morgantown will welcome thousands of guests to experience 750 slot machines, 30 table games, a retail barstool sportsbook, upscale casual dining and premier guest service.
“We would like to officially welcome players and guests to Hollywood Casino Morgantown, our fourth property in the Commonwealth,” remarked Todd George, executive vice president of operations for PNG. “We’re thrilled to showcase this regional entertainment destination, offering premier gaming and dining in a modern atmosphere.
“In addition, we’re grateful for the support of our host community, Caernarvon Township, and to all of our local and state legislators and regional business leaders who helped make this day possible. We’re proud to be creating jobs and starting a new economic engine right here in Berks County.”
Flutter Entertainment has secured terms for the acquisition of Italian online gaming operator Sisal, from CVC Capital Partners Fund VI for £1.62bn.
Scheduled to be completed during the second quarter of 2022, the purchase of Sisal, which is payable in cash and in full, is expected to be accretive to adjusted earnings in the first 12 months post-completion.
Moreover, the purchase amount includes full repayment of all Sisal’s debt upon completion and will be financed by way of additional Flutter debt facilities, agreed with Barclays Bank.
Commenting on the acquisition, Peter Jackson, Flutter’s chief executive, stated: “I am delighted to add Sisal, Italy’s leading gaming brand, to the group as we look to attain a gold medal position in the Italian market.
“For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so. Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation.
€50.8m & €25m
Gaming Innovation Group has inked a share purchase agreement to acquire igaming firm Sportnco in a €50.8m deal, as well as deepening its collaboration alongside SkyCity Entertainment which will put €25m into the company.
The acquisition of the betting and gaming solutions provider has been undertaken to enhance and strengthen GiG’s position, which will see the enlarged group be licensed in 25 markets.
The initial consideration of €50.8m, €23.5m of which will be paid in new shares in GiG and €27.3m in cash. In addition, GiG will assume existing debt in Sportnco of €19.2m, with an earn-out of up to €23m based on performance through 2022 and 2023 also included.
GiG has also entered into an agreement with SkyCity Entertainment, which will see the New Zealand headquartered firm, subject to final completion of the acquisition, invest €25m through a directed share issue at NOK18 (€1.79) per share, that will finance the main part of the cash consideration.