Every week, CasinoBeats breaks down the numbers behind some of the industry’s most fascinating stories. A series of updates in the UK concerning white paper consultations, advertising and a labour crisis, a series of financial updates, Game4Ukraine sponsorship and Glitnor Group’s latest dip into the M&A well form a part of latest set of reflections.
4
A series of consultations were launched by the UK government and Gambling Commission that are tasked with advancing ambitions of the recent white paper Gambling Act review.
The former is designed to assess online slots, which are deemed “a higher-risk gambling product” that are “associated with large losses, long sessions and binge play”.
In a bid to drive government goals and “update gambling rules for the smartphone era”, the deliberation will consider how to conduct financial risk checks for problem gambling and at what level stake limits should be set at for the aforementioned titles.
Among the government consultations are those concerning a maximum stake of between £2 and £15 per spin, with options to introduce greater protections for 18 to 24-year-olds also possible. These could include lower stake limits of £2 to £4, or requirements on operators to consider age as a risk factor for gambling-related harm.
10
Steve Wynn is to pay a $10m fine and sever all ties with the industry in the state of Nevada as part of a settlement agreement over sexual misconduct allegations.
As disclosed by state regulators, the financial sanction represents the largest handed to an individual within the Silver State. This relates to a Wall Street Journal report from over five years ago.
In addition to accusing the mogul of widespread sexual misconduct, the publication also alleged that employees, including casino managers, sought to cover up the sexual misconduct of which the company’s founder and former CEO stood accused.
Wynn, who at the time cited “an avalanche of negativity” in denying the allegations, offloaded his almost 12 per cent Wynn Resorts shareholding a short time later for approximately $2.1bn.
37.5
Glitnor Group is looking to make significant progress on lofty North American ambitions after detailing the acquisition of a 37.5 per cent stake in PlayStar Gaming Group.
Undertaken via the firm’s venture capital vehicle, named Glitnor Ventures, which was established in November 2022, the company is aiming to enable the brand to soar to “even greater heights” across the US’ igaming ecosystem and beyond.
PlayStar, launched in New Jersey during August of last year, and Glitnor, which boasts LuckyCasino and Swintt among its primary B2C and B2B brands, will collaborate in a bid to achieve “incredibly high hopes for going forward”.
1
Following “another record-breaking quarter” being revealed in the group’s H1 Interim results, Betsson CEO, Pontus Lindwall, joined the iGaming Daily podcast to discuss the company’s recent performance.
Hosted by Craig Davies, CasinoBeats Editor, this latest episode dived into the group’s recent acquisition movements, what regions the company is eyeing for expansion next, the impact of a certain sponsorship on the group’s LatAm position and potential future M&A manoeuvres.
Lindwall mentioned that the company has been following an operational strategy for around four years that looks to be “paying off”, with a whistle stop tour of a number of region’s beginning in Belgium following a June acquisition of BetFirst.
25
The Betting and Gaming Council welcomed fresh plans by the UK government that are looking to stamp out illegal online advertisements, as well as heighten protections for the younger generation.
Under fresh plans outlined by Department of Culture, Media and Sport Minister Sir John Whittingdale MP, social media platforms, websites and services will be tasked with taking tougher action to stop children seeing age-restricted adverts for certain products, with alcohol and gambling specifically cited.
As part of the new rules, which it was said would “make advertising regulation fit for the digital age,” fake celebrity scams and pop-up malware from hackers were identified as forming a key part of the clamping down efforts.
Currently all social media advertisements for BGC members must be targeted at those aged over 25, unless platforms can provide evidence to verify the accuracy of their targeting to over 18s.
16
Per Widerström was named as Chief Executive Officer of 888, with the appointment to become effective as of October 16, 2023, and seeing Lord Jonathan Mendelsohn returning to the role of Non-Executive Chair.
This came after Itai Pazner became one of a number of high profile exits from the group earlier in the year, with the gambling business detailing that he was “immediately leaving office” as both CEO and a Director.
Mendelsohn subsequently assumed the position of Executive Chair on an interim basis while the board searched for a permanent successor.
307.3
Interim Kindred Group CEO Nils Andén reflected on “an extraordinary quarter in many ways”, with growth “in most markets and product segments” reported during Q2.
Amid an ongoing strategic review, which could include potential divestment options, and following significant changes to senior management, the company saw revenue through the quarter close at £307.3m, up 29 per cent year-on-year from £238.7m.
This, Andén said, is aligned to a “continued focus on a strong customer offering,” with April and May cited as demonstrating a particularly solid showing.
4
VBET was named as an official charity and headline partner for Game4Ukraine, the brainchild of Ukrainian President Volodymyr Zelenskyy that will raise funds for the region.
Scheduled to take place at Chelsea FC’s Stamford Bridge home on Saturday 5 August, the event will raise money for the restoration of the Mykhailo-Kotsyubynsky Lyceum in the Chernihiv region. The educational institution was damaged by the Russian occupiers in March 2022.
As a result of its partnership, VBET branding will appear on matchday jerseys, with the gaming and sports betting operator to also host a series of promotional activities across European markets, including the UK.
19
Bacta has pleaded for government intervention to help with what the group has labelled as a “labour crisis” that is said to be severely impacting the UK’s hospitality industry.
John White, CEO of the group that represents the gaming machine and amusement industry in the UK, called for the removal of “some of the barriers to being employed in the UK”.
This would see businesses in the amusements and low stake gaming sectors become placed on the shortage occupations list, which comprises those roles deemed by the government to be in short supply within the UK labour market.
White cited the impact of Brexit, as well as the lasting effects on the COVID-19 pandemic, in seeing many European workers returning to their country of birth and not returning to the region.
50,000
The Massachusetts Gaming Commission issued $50,000 in fines to every retail sportsbook in the state after wagers were offered on unauthorised sporting events.
This saw financial penalties issued to each of Encore Boston Harbor, Plainridge Park Casino and MGM Springfield, after it was previously found that DraftKings accepted 860 wagers on prohibited tennis matches across a period of 12 days.
67,500
The Pennsylvania Gaming Control Board issued three fines that totalled $67,500, with the regulator also placing an additional seven adults on the state’s involuntary exclusion list.
Following similar actions taken last month, the first of the financial penalties concerned Mohegan Pennsylvania. The gaming venue received a fine of $50,000 for permitting individuals under the age of 21 to gain access to the gaming floor.
One incident saw access gained to gamble on multiple occasions, while another followed suit and was also provided with alcohol.
Elsewhere, Rivers Casino Pittsburgh was penalised $10,000 for allowing someone under the age of 21 to gain access to the gaming floor to gamble, while a $7,500 fine was issued to Rivers Casino Philadelphia after an untrained employee was allowed to deal roulette.
944
BetMGM reported that it is on the “path to profitability” after achieving positive EBITDA for the second quarter. The brand expects to hit near the upper end of its fiscal year 2023 revenue guidance.
In an H1 2023 trading update, the jointly owned MGM Resorts International and Entain operator declared net revenue for the period of $944m, including a same-state growth of 25 per cent from digital operations.
Same-state CPAs improved by eight per cent during the period in comparison to the previous year, while bonus optimisation and the player management programme have made a positive impact as well.
As a result, BetMGM claimed that it is on the path to delivering the upper end of its FY2023 revenue guidance range of $1.8bn to $2bn.
