Every week, CasinoBeats breaks down the numbers behind some of the industry’s most fascinating stories. Our latest headline reflection features Groupe FDJ’s ambitions to acquire Kindred, a rise in UK self-exclusions and a continuing Mexican struggle for Codere.
2.6
Groupe FDJ has laid out its ambitions to form a “new European gaming champion” as it launched an all-cash tender offer of €2.6bn to acquire Kindred Group.
The strength of FDJ’s approach was underlined as the offer has been “unanimously recommended by Kindred’s Board of Directors” and “five key shareholders holding a combined 27.9 per cent of the capital irrevocably support FDJ’s deal and terms”.
Stéphane Pallez, Chair and CEO of FDJ Group, said: “I am pleased to announce today the proposed acquisition of Kindred. Fully aligned with our strategy, it will give the Group a diversified and balanced profile, based on several pillars.
“Given their respective histories, strategic strengths and core values, FDJ and Kindred are highly complementary, and I will be delighted to welcome Kindred’s management team and many talented individuals into the combined Group following this transaction.”
As suggested by FDJ’s recent Paris filing, the offer represents a premium of 24 per cent over the closing price on 19 January 2024 and 35 per cent over the weighted average price for the last 30 trading days.
Nils Andén, CEO of Kindred, added: “I’m delighted with today’s transaction announcement between FDJ and Kindred, creating a leading European gaming operator with the financial and strategic capabilities to further expand its global footprint.
“I believe that combining with FDJ, Kindred can accelerate the delivery of long-term strategic projects, continue to grow in core markets, and provide a trusted source of entertainment to customers.”
7.5
Scott Sibella, former CEO of MGM Resort International’s MGM Grand, pleaded guilty to failing to file reports of suspicious transactions when he was working as head of the resort.
According to his plea agreement, Sibella allowed a customer to continue to gamble large amounts of money at MGM properties despite having knowledge he was working as an illegal bookie.
The player, named Wayne Nix, was also reportedly provided with lavish hotel stays and casino weekends hosted by Sibella from August 2017 to February 2019.
It’s a case that largely centres around the 2019 Super Bowl, which saw Nix accept a $5m bet on the Super Bowl – something Sibella was fully aware of.
The sentencing for Sibella could be significant as he faces up to five years in prison followed by five years of probation. He will also pay a fine of $250,000.
The Cosmopolitan and the MGM Grand have also agreed to pay an additional $7.45m for their part in the transgression.
9.5
Self-exclusion service GAMSTOP has reported a 9.5 per cent increase in registrations in 2023, with registrants expected to surpass 500,000 this year.
Since its creation in April 2018 to the end of December 2023, GAMSTOP has registered 433,357 people onto its service, with more than 92,000 registering in the past year, a record high. May 2023 saw the most new registrations within a single month at 8,591.
In June, representatives of the self-exclusion scheme and those with lived experiences spoke at an event at the House of Lords to mark the service’s fifth anniversary.
55 per cent of all registrants self-excluded for a period of five years with GAMSTOP, which is also the longest period someone can self-exclude for. Registrants can also self-exclude for six months or a year.
Fiona Palmer, CEO of GAMSTOP, commented: “We are continuing to see a year-on-year increase in the number of registrants, which shows the importance of self-exclusion for anyone struggling with their gambling, alongside other blocking tools and support,” commented Palmer.
“We want to continue raising awareness of GAMSTOP to anyone who might benefit from self-exclusion and to the friends and families of anyone affected by gambling.”
2
Sweden’s Gambling Authority, Spelinspektionen, has issued its first two bans of 2024 to companies accused of illegally providing gambling in the country.
True Polygon Entertainment Limited and Smein Hosting NV have been accused by the gambling authority of providing gambling in Sweden without the necessary licence and have been banned as a result.
Investigations found that True Polygon Entertainment’s CSGOBIG website or their affiliates, as well as Smein Hosting’s websites under the Gamdom brand or their affiliates, were found to have marketing in Swedish.
Spelinspektionen stated that in both cases, it was not discovered that Swedish consumers would be prevented from registering and creating an account on the websites in question.
The authority noted that both True Polygon Entertainment and Smein Hosting have been given an opportunity to make a statement, but it has yet to receive a response from either company.
1.2
A significant intervention has seen the Supreme Court of Justice in Mexico take action in a bid to settle ongoing disputes between Codere SA and SHCP, Mexico’s Ministry of Finance and Public Funds.
It stems from SHCP demands that Codere pay taxes and surcharges for the year 2008, which the Ministry estimates to be MEX 1.2bn pesos (approximately €300m).
However, Codere claims it was exempt from tax obligations in 2008 due to an ‘amparo’ granted by Mexico’s Federal Court of Administrative Justice (TFJA).
The SHCP has once again begun with the dispute, off the back of a rise in Codere’s tax charge from MEX560m to 1.2bn pesos after a ‘new determination’ by the Tax Administration Service (SAT), increased.
The Ministry contends that the initial protection is no longer applicable given Codere’s increased tax obligation, providing the basis to demand the operator to settle its outstanding liabilities.
As the SHCP details, “Following the SAT’s reassessment, Codere’s subsequent nullity trial upheld the SAT’s resolution, and their direct protection appeal was denied.”
The SAT reinstated its inspection and determined a revised “tax credit of 1,272,385,927 pesos”. Dissatisfied, Codere pursued another annulment trial, which upheld the SAT’s resolution; subsequently, Codere appealed to the Supreme Court for direct protection against this outcome.
Codere has challenged the Supreme Court, questioning the constitutionality of specific sections of the Federal Law of Administrative Procedure to avoid paying the taxes demanded by the SHCP.
This appeal marks the first time Mexico’s Supreme Court will intervene in a legal dispute regarding gambling taxes.
15
Online casino and sportsbook operator bet365 has enhanced the jackpot offering of its UK-facing platform by gaining progressive jackpot campaigns from Games Global.
As part of a partnership between the two firms, Games Global will integrate a selection of 15 proprietary slot titles into bet365’s online casino lobby, each offering enhanced prizes from the studio’s Mega Moolah and WowPot! progressive jackpots.
A spokesperson from bet365 commented: “The inclusion of Mega Moolah and WowPot! titles significantly enhances our jackpot offering, providing our players with the prospect of record-breaking wins.
“Our partnership with Games Global is going from strength to strength and we look forward to creating unforgettable gaming experiences for our customers together.
Within the supplier’s content offering, bet365 players will gain access to slots such as Mega Moolah, Wheel of Wishes and Immortal Romance Mega Moolah, as well as Cash N Riches Megaways WowPot!, Treasures of Kilaueau Mega Moolah and Wolf Blaze Megaways WowPot.
In 2023 alone, both Games Global’s Mega Moolah and WowPot! jackpot campaigns paid out over €155m, with increased prizes being won every 10 seconds on average.
This figure included a record-breaking jackpot win of €38.4m, won by a lucky player on Games Global studio Alchemy Gaming’s Wheel of Wishes slot in December. That multi-million-pound win was the largest jackpot prize ever awarded on an online slot.
