Every week, CasinoBeats breaks down the numbers behind some of the industry’s most fascinating stories. Our latest bout of headline recaps feature an overload of financial updates, UK white paper urges, a headline act from the US making its way across the Atlantic and a non-gaming future in Macau.
2.9
A subsidiary of 888, Virtual Global Digital Services, is to pay £2.9m after the Gibraltar Gambling Commissioner carried out an internal review into historical anti money laundering and terrorist financing.
The settlement consists of the aforementioned sanction being payable to the Consolidated Fund in lieu of any financial sanction that may have been imposed under the Supervisory Bodies (Powers Etc.) Regulations 2017.
In January, a review was sanctioned after 888 announced a suspension of VIP activities pending the outcome of an internal compliance investigation.
The gambling group said that it had come to light that certain best practices have not been followed in regard to KYC and AML processes for VIP customers in certain .com markets, with the Middle East region specifically named.
In April 2023, 888 concluded its own investigation, with no further impacts expected. The company’s board noted an expectation to recover 40 per cent to 50 per cent of revenue, resulting in a £25-30m revenue headwind for FY23.
90
SkyCity Entertainment Group has factored in an approximately A$90m financial hit that could stem from ongoing AUSTRAC civil penalty proceedings.
The Auckland-based operator, in addition to its Crown Resorts and Star Entertainment Group counterparts, became the subject of enforcement action from the financial watchdog in September 2019.
This is due to alleged serious and systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing laws.
Subsequently, SkyCity has set aside a A$45m provision for a potential AUSTRAC civil penalty and associated legal costs, as well as writing down the value of its Adelaide casino licence by A$45.6m.
30
Rank Group voiced optimism at witnessing a heightened performance through the coming 12 month period, despite swinging to a pre-tax loss during the year ending June 30, 2023.
The Grosvenor and Mecca owner has also echoed previous calls Director of Public Affairs David Williams, who noted that “timing is key and, for casinos, progress cannot come a moment too soon” when addressing the implementation of white paper reforms earlier in the month.
In a CEO address during its latest breakdown, John O’Reilly noted that the company is prepared to press ahead with modernisation plans to better meet the needs of its customer base.
“The UK government’s white paper on gambling reform sets out a number of important public policies which will enable the land-based bingo and casino sectors to modernise the customer proposition to better meet the needs of today’s consumers,” he commented.
604
BetMGM is looking to replicate “great success in the US and Canada” after beginning its international expansion strategy by first going live in the United Kingdom.
Following MGM Resorts International CEO Bill Hornbuckle recently acknowledging that the entity is “not where we want it to be”, BetMGM has debuted online casino and sports betting within the region, in direct competition with JV partner Entain.
This is leveraging the technology and platform of LeoVegas, as opposed to Entain in the US and Canada, which was purchased by the casino and entertainment operator in a $604m transaction during 2022.
16.07
A series of increases means that the United States stands on the cusp of an “unprecedented” end to the year, as the American Gaming Association also vowed to stand firm in the ongoing fight against illegal operators.
Maintaining a spree of quarterly revenue growth, the industry association’s Commercial Gaming Revenue Tracker highlighted Q2 revenue growth of 8.1 per cent to $16.07bn, driven by online increases that was set against a relatively flat land-based performance.
A tenth consecutive quarter of growth saw the April to June time frame become the second-highest in industry history, topped only by the current year’s first three month period.
The $32.71bn in commercial gaming revenue generated in the first six months of 2023 tracks 11.9 per cent ahead of the same period one year earlier.
40
Craig Billings, Chief Executive Officer of Wynn Resorts, hailed “the most exciting new market opening in decades”, with the group expectant of being in receipt of a significant shot in the arm “imminently”.
This will see the operator gain receipt of a casino licence in the near future as Wynn’s multibillion dollar integrated resort on the man-made Al Marjan Island in Ras Al Khaimah, United Arab Emirates, progresses.
In addition to heavily praising the future prospects for the group, Billings, in a Q2 earnings call, confidently predicted that a 40 per cent equity ownership and management licence fees “will drive a very healthy ROI for Wynn Resorts shareholders”.
In addition to noting that the firm will bring its “’A’ game to this development”, ongoing construction currently sees over 40 per cent of the required hotel piles in the ground.
380.8
First quarter difficulties encountered across North America continued through April-June for Super Group, with the Asia-Pacific region also tracking significant declines through Q2 and H1.
Headline figures saw the Betway and Spin operator’s revenue nudge ahead 19 per cent to €380.8m (2022: €320.8m), with Europe, Africa and the Middle East cited as key growth points.
This partially offset declines felt across North America, predominantly in Canada due to regulatory changes in Ontario, and Asia-Pacific markets.
Operational EBITDA stood at €70m, up 30.59 per cent from €53.6m declared last year. This consisted of €82.6m in non-US income coupled with a stateside loss of €12.6m.
506.2
Online gambling across New Jersey continued to go from strength to strength as the Garden State tracked further increases through July, despite land-based entities suffering a further slight setback.
Total gaming revenue reported by casinos, racetracks and their partners through the 31 day period came in at $506.2m, up 5.3 per cent year-on-year from $480.7m. For the YTD, the region closed at $3.23bn, which is 11 percentage points ahead of $2.91bn.
Figures released by the region’s Division of Gaming Enforcement highlighted that online casinos and poker rooms are up 13.5 per cent YoY after closing at $155.16m (2022: $136.7m). For the YTD, igaming closed at $1.08bn, which is up 14.2 per cent from the past year’s $951.12m.
19
Galaxy Entertainment Group is to make an increased push into non-gaming amenities that it believes are “the future of Macau” after becoming the first of six concessionaire’s to resume dividends.
As the group continues an ambition of returning to the operational levels enjoyed prior to the COVID-19 pandemic, GEG Chair Lui Che Woo once again reiterated optimism for the autonomous region after tracking further increases through the year’s second quarter.
“During the period Macau continued its business recovery and the group’s primary focus was on operational execution, recruitment and project development,” he commented.
“We believe that non-gaming is the future of Macau to drive a longer staying and more diverse visitor base which aligns with Macau government’s vision of building Macau into a world centre of tourism and leisure.”
