Every week, CasinoBeats breaks down the numbers behind some of the industry’s most fascinating stories. Our latest headline reflection features a merger between IGT and Everi, growth in Spain’s casino industry and record figures from Codere Online.
6.2
Everi has merged with IGT’s Global Gaming and PlayDigital businesses to “create a global leader in gaming equipment, fintech services and casino systems”.
Through the combination, a “comprehensive and diverse portfolio of high-performing land-based, digital, and fintech gaming products and services” is expected to be created.
Randy Taylor, CEO of Everi, commented: “This morning we announced the strategic combination of Everi with IGT’s Gaming and Digital businesses. We are excited about the opportunity to bring together the two companies to create a world-class leader in gaming solutions for our customers.”
The Everi-IGT merger values the combined businesses at approximately $6.2bn on an enterprise value basis. IGT will spin off a subsidiary owning its Global Gaming and PlayDigital businesses to IGT shareholders, which will combine with Everi.
Under the terms of the agreements, at closing, IGT shareholders are expected to own approximately 54 per cent and Everi stockholders are expected to own approximately 46 per cent of the shares in the combined company.
IGT CEO Vince Sadusky will lead the combined company with Everi Executive Chair Michael Rumbolz serving as Chair of the board of directors.
“We are bringing together two businesses with complementary strengths that are stronger and more valuable together,” added Sadusky.
“The combination results in a comprehensive and diverse product offering, addressing more aspects of the gaming ecosystem across land-based gaming, igaming, sports betting, and fintech.
“The creation of separate gaming and lottery companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”
The announcement came alongside Everi’s Q4 and FY 2023 financial results, which saw the firm publish net income declines in both periods, standing at $1.9m in Q4 (2022: $27m) and $84m for the full year (2022: $120.5m).
83
The Danish gambling authority, Spillemyndigheden, has stated it has been successful in blocking 83 illegal gambling websites in Denmark.
Blocking the recent websites in the Næstved court, the authority noted that it is the tenth time it has gone to court to block illegal websites, in which it has blocked 359 illegal websites since the Danish gambling market was partially liberalised in 2012.
With Spillemyndigheden intensifying its efforts to block illegal websites that offer betting and online casinos without permission in Denmark, the 83 sites blocked means 2022’s high of 82 websites has already been surpassed.
“We have intensified our work to shut down the illegal sites so that we now get them blocked twice a year instead of once as previously,” noted Anders Dorph, Director of Spillemyndigheden.
“In this way, we can get hold of even more sites and minimise the period when Danish players are exposed to games that are offered illegally in Denmark.
“Children and young people in particular are a vulnerable group. For instance, many of the illegal websites have very lenient requirements for age verification. Some of the sites also offer games that particularly appeal to children and young people, such as skin betting.”
315.29
Spain’s Directorate General for the Regulation of Gambling has reported a gross gambling revenue increase for the fourth quarter of 2023, with the country’s casino segment undergoing significant growth.
For Q4, the authority noted that GGR rose by 3.63 per cent quarter-over-quarter to €315.29m, while improving by 0.55 per cent in comparison to the previous year.
Deposits for the reporting period came in at €1.04bn, a 12.45 per cent increase on the previous quarter and a 9.36 per cent uptick year-over-year, while withdrawals stood at €734.7m, up 19.34 per cent QoQ and 14 per cent YoY.
New accounts grew in comparison to the previous quarter by 20.11 per cent, but declined by 2.31 per cent YoY to 387,620. The monthly average of active game accounts was 1,269,585, up 17.26 per cent QoQ and 6.76 per cent YoY. The new game accounts monthly average was 129,207, up 20.11 per cent QoQ, but down 2.31 per cent YoY.
During the quarter, 78 licensed operators were active, split across five segments – casino: 49; betting: 43; poker: nine; bingo: three; contests: two.
Spain’s casino segment was the main driver in terms of GGR at €171.27m – 54.32 per cent of the total GGR for Q4.
Elsewhere, betting GGR stood at €114.73m (36.39 per cent), bingo was €3.84m (1.22 per cent), contests was €47,583 (0.02 per cent) and poker was €25.41m (8.06 per cent).
Casino’s Q4 GGR of €171.27m is a 6.87 per cent increase QoQ and 20.23 per cent improvement YoY. Slots GGR rose by 25.86 per cent YoY to €105.9m, live roulette improved by 15.26 per cent to €52.1m and blackjack grew by 8.7 per cent to €6.6m.
14.6
Publishing its financial results, The Star Entertainment Group reported a 14.6 per cent revenue decline year-over-year in H1 to AU $865.7m (H1 FY23: $1.01bn).
Normalised EBITDA for the period was $113.6m, which the operator says is “broadly consistent” with Q4 2023, while statutory net profit – after $16m loss (H1 FY23: $1.3bn loss) in significant items after tax – was $9m (H1 FY23: $1.26bn loss).
As of December 31, 2023, the operator had a net cash of $171m, an increase in comparison to the net debt of $596m as of June 30, 2023.
The Star noted that the significant items figure primarily reflects “regulatory, legal costs and equity raising and debt refinancing costs offset by the profit on the sale of assets”.
In addition, the company revealed that performances across all main gaming floors and products “held up well”, but premium gaming areas were “significantly impacted” following a revenue mix shift from premium to main gaming areas. Non-gaming performance was “solid with strong hotel occupancy levels”.
Looking ahead, The Star noted that H2 FY24 revenue and EBITDA are “broadly consistent” with H1 and “only slightly softer” than the same period the previous year. The operator will largely focus on remediation measures and lifting operational performance.
52
Conducting research into player preferences within its home nation, Play’n GO found that over half of Swedish slot players want to ban Bonus Buy slots.
In a ‘nationally representative’ survey using the Swedish public and respondents that reported to have played slots at least once per month, the study suggests that 69 per cent of the general public would support a ban on Bonus Buy games, alongside 55 per cent of surveyed Swedish slot players.
The study found that 66 per cent of the public and 52 per cent of slot players in Sweden believe that Bonus Buy games ‘exploit vulnerable gamblers’, while 63 per cent of slot players think they result in higher losses for players.
Johan Törnqvist, CEO and Co-Founder of Play’n GO, commented: “Play’n GO has been a consistent and vocal advocate for a sustainable, regulated, and thriving gaming industry that is based around an ‘entertainment-first’ mindset for many years.
“I pledged as far back as 2021 that Play’n GO would never make a Bonus Buy game – a decision that has cost us hundreds of millions of Swedish Krona – but I stand by that decision.
“Bonus buy games are harmful to players, and to the long-term health and sustainability of the entire industry, and they should be excluded from the regulated Swedish market.”
32
Codere Online reported a total revenue for Q4 2023 of €46.9m, a 32 per cent increase year-over-year (Q4 2022: €35.6m) with net gaming revenue of €50.1m, a 33 per cent uptick (Q4 2022: €37.7m).
Casino operations exceeded expectations by contributing towards 58 per cent of the quarter’s total net gaming revenue.
For the full year, total revenue grew by 41 per cent YoY to €162.6m (2022: €115.7m) with a net gaming revenue of €171.9m, up 40 per cent (2022: €122.9m).
Although revenue grew, Codere Online declared a net loss of €1m in Q4, but this was an improvement in comparison to a net loss of €17.4m during the same period the previous year.
Net income also came in at a loss for the full year of €3.1m, but this was an improvement as well on the previous year’s loss of €45.9m.
Q4 adjusted EBITDA came in at a €4.1m loss, up 72.1 per cent YoY (Q4 2022: €14.7m loss). For the full year, adjusted EBITDA was a €11.7m loss, a 77.1 per cent increase (2022: €51.2m loss). As of December 31, 2023, cash and equivalents was €41.3m.
Aviv Sher, CEO of Codere Online, stated: “In Q4 2023 we delivered an impressive 33 per cent growth in net gaming revenue to €50 million, our highest ever quarterly figure, despite a tough competition with the World Cup in the prior year period.
“Our strategic focus on Mexico and Spain, where we are seeing a strong return on marketing investment, has proven successful, with significant increases in both our active customer base and spend per customer. Casino continued to exceed our expectations with a second consecutive quarter contributing 58 per cent of total net gaming revenue in the period.”
