Every week, CasinoBeats breaks down the numbers behind some of the industry’s most fascinating stories. An array of M&A manoeuvres featuring the likes of Entain and Churchill Downs, Tabcorp optimism, unregulated gaming machines, advertising issues in Australia and FS Gaming taking a reduced stake in 888 all fall under the spotlight in our latest headline reflection.
4.55
FS Gaming Investments announced a reduced stake in 888 after an agreement by Shay Segev to transfer voting rights to the group was terminated.
The investment group, which comprises former gambling industry executives of GVC, now Entain, has subsequently witnessed its slice of the online casino and sports betting operator dip from 6.57 per cent to 4.55 per cent.
In June, FS Gaming, spearheaded by the former GVC leadership duo of Kenneth Alexander and Lee Feldman, and including the support of ex-Betfair executive Stephen Morana and igaming investor Daniel Shribman, announced the acquisition of an 888 stake.
An RNS filing also noted that DAZN CEO Segev, who followed Alexander into the GVC hotseat a little over three years ago, allowed his two per cent share to be controlled by the investment group to help facilitate the total purchase.
750
Entain stands on the brink of closing its latest acquisitive interest after shareholders of Polish betting group STS Group issued unanimous approval to the takeover bid.
Following an initial move being made in June via a proposal to bookbuild £600m in new capital, the former has revealed that its proposal has now been accepted.
The offer includes a 28 per cent premium to the three-month volume weighted average price and a 20 per cent premium to the spot price as of June 12, 2023, which values STS at approximately £750m.
After an acceptance period commenced on July 14, 2023, and closed this month, individuals holding a total of 155,591,656 shares have issued the green light, with this figure corresponding to approximately 99.3 per cent of the total issued capital.
55
German gambling regulator, Gemeinsamen Glücksspielbehörde der Länder, has cast further doubt over the legitimacy of Malta’s controversial Bill 55, by stating that it does not believe it complies with European law.
Passed by lawmakers of the Mediterranean archipelago in June, the Bill aims to permit Maltese courts to refuse the recognition and enforcement across foreign judgements related to licensees.
The GGL noted that it believes its introduction has been witnessed due to a “sharp rise in the number of successful gambling loss repayment claims against Maltese gambling companies by players claiming illegal losses as the gambling offered was not legal in their home country”. This has been evident across regions such as Germany, as well as Austria.
Specifically, the Act prevents enforcement actions against MGA licensed operators under two sets of circumstances. Firstly, if an action conflicts with or undermines the provision of gaming services in Malta it cannot be undertaken.
Additionally, enforcement measures cannot be taken if the action made by the operator relates to an authorised activity lawful under the Gambling Act.
25
Tabcorp reiterated confidence in the group’s TAB25 vision that was rolled-out earlier in the year after achieving “what we pledged to investors we would do” during the year ending June 30, 2023.
Speaking in the group’s latest annual report, Bruce Akhurst, Chair and Independent Non-Executive Director, and Adam Rytenskild, Managing Director and Chief Executive Officer, hailed the company for having laid the foundations for future growth.
In the first full year of operation following the demerger of its lotteries and keno business in June 2022, the pair detailed the launch of a new app, a record level of active customers at 805,000 and a level playing field in Queensland in helping to achieve its ongoing goals.
In addition, Tabcorp is also aiming to progress with its TAB25 strategy, which level the playing field forms a part of, and is tasked with crafting a “simpler, growing, more valuable business, providing investors with clarity around our strategic goals for the next three years”.
2
2mee is aiming to gain further traction within the global influencer market after disclosing a non-binding heads of terms, subject to due diligence and appropriate approvals, to enter into a reverse takeover with Golden Rock Global.
The former aims to personalise and humanise engagement across the entire customer journey via the delivery of influencers as on-screen web and app messages.
As a result of the additional capital and resources, 2mee is aiming to expand its business at pace and scale through the hire of additional specialists, as well as developing additional tech innovations.
10
The Advertising Standards Authority did not uphold another one of its own complaints, this time levelled at William Hill, amid an ongoing body of work that is designed to clamp down on gambling adverts which, under strengthened rules, are deemed to likely be of strong appeal to under-18s.
In this latest instance, following Ladbrokes being penalised on a number of occasions and bet365 falling foul, the advertising watchdog itself raised a challenge regarding another promoted Tweet.
These were identified for investigation following intelligence gathered by its Active Ad Monitoring system, which uses AI to proactively search for online ads that might break the rules, the ASA said.
This latest social media post in question, promoted for the 888 online gambling brand on February 10, 2023, featured Robbie Savage discussing Leeds United’s relegation prospects.
250
Churchill Downs Incorporated finalised its previously disclosed acquisition of Exacta Systems for a total consideration of $250m, subject to certain working capital and other purchase price adjustments.
It is hoped that the transaction will allow the casino and entertainment operator to enhance recent acquisitions made in the world of horse racing, as well as realising “significant and immediate” synergies related to CDI’s Virginia operations. This includes the region’s Colonial Downs Racetrack and Rosie’s Gaming Emporium facilities.
Furthermore, as a result of the transaction, which was funded with cash on hand and via the company’s existing credit facility, CDI expects to achieve additional operational improvements through the diversification of games available at its historical racing machine facilities.
43
The Victorian Gambling and Casino Control Commission took further regulatory action within the state after BlueBet was found to have illegal displayed advertisements.
The operator is facing 43 charges for allegedly contravening section 4.7.1 of the Gambling Regulation Act 2003 after ads across various locations were witnessed between August 29 and September 11, 2022.
BlueBet, licensed and regulated by the Northern Territory Racing Commission, faces a fine of 120 penalty units for each charge. Each unit is worth A$184.92 at the time of the offence, meaning that if the company is found guilty of all the charges it faces a maximum fine of up to A$954,187.20.
65
Bill Miller, President and CEO of the American Gaming Association, suggested that unregulated ‘skill’ gaming machines should be removed from all locations across the United States.
The comments came alongside a fresh wave of data being published by the group, which highlighted that of those familiar with such machines 65 per cent suggested that they are no different from slot machines where wins are based on random chance, and that even a skilled player cannot reliably influence the outcome.
Furthermore, it is also reported that Americans are increasingly concerned of the associated dangers of such unregulated machines, which are also said to be “overwhelmingly” viewed as negative community influences.
