CasinoBeats is breaking down the numbers behind some of the industry’s biggest stories. Our latest headline reflection features the impact of the UK general election results, scrapped targets from Kambi and illegal operations in Macau.
412
The UK gambling industry will be eagerly awaiting a cabinet reshuffle after news broke in the early hours of the morning that Shadow Culture Secretary, Thangam Debbonaire, had been defeated in Bristol, as the Labour Party claimed election victory with 412 seats.
It was one of only a few disappointments for Keir Starmer’s Labour as the country largely lit up red and prepared to welcome a new government. Starmer will have to appoint a new Culture Secretary, however.
Debbonaire lost her seat to the Green Party co-leader, Carla Denyer, after the Greens targeted the seat as a key focus during its election campaign.
Nonetheless, ending 14 years of Conservative rule and sweeping home a significant majority, whoever Starmer appoints as head of the DCMS will have a key opportunity to govern over the department with authority over Britain’s betting and gaming industry.
On the other hand, Stephanie Peacock, who is the Shadow Minister for Sport, Gambling and Media, held her Barnsley South seat, adding to a hugely successful campaign for the Labour Party.
4%
Germany’s gambling authority, Gemeinsamen Glücksspielbehörde der Länder, has revealed that illegal gambling revenue was equal to up to four per cent of the country’s total GGR in 2023.
Publishing figures behind the country’s gambling ecosystem for the previous year, the GGL confirmed that illegal gambling revenue – defined as player losses in the report – stood between €400m and €600m.
Signalling that black market gambling is still rife in the nation, these figures are equal to around four per cent of the total market’s GGR, which came in at €13.7bn for the year.
Per segment, online gambling generated €3bn, 21.9 per cent of the total GGR, with online sports betting accounting for €1.8bn of this figure. Online slots and poker contributed €400m.
The regulator stated that 1,864 websites were checked across the period, of which it proceeded to block operations on 133 instances – 87 cases of offering illegal gambling and 46 cases of websites connected to black market advertising.
In total, the report revealed that the GGL processed 438 cases of suspected illegal gambling or advertising during the year. As a result of hearings or prohibition orders made by the regulator, 63 black market operators ceased operations or illegal advertising.
In response to several illegal sites continuing to offer their services despite intervention, the GGL stated: “Those providers who do not discontinue their services despite prohibition orders are often based in countries outside the EU.”
2027
Kambi is withdrawing its 2027 financial targets due to “slower than expected” regulation progress in certain key markets.
Back in February, the sports betting services provider began a review of its underlying assumptions that formed its 2027 financial targets, which were first revealed in January last year.
Those targets were revenue being two to three times higher than FY2022 levels – approximately €330m to €500m – and EBIT of more than €150m.
Reflecting on this target, Kambi’s board concluded that the company has “made progress in areas within its control”, but there has been “slower than expected progress towards regulation in certain key markets” which is likely to cause revenue delays in such markets.
Following Werner Becher’s appointment as Kambi CEO earlier this week, the board noted that it will “focus its attention on providing Becher with its full support in executing on the company’s long-term strategy and extending Kambi’s lead as the world’s leading sports betting provider”.
In addition, the board stated that Kambi should have long-term financial targets in place and such targets will be evaluated with Becher and communicated when appropriate.
93
A total of 93 people have been arrested following an investigation into an illegal gambling operation in Macau, Hong Kong and the Guangdong Province.
According to a report by government officials, the operation took place across a plethora of major casino locations in Macau.
Police also revealed that the ongoing European football Championships in Germany was a key focus for the syndicate as it offered higher odds for the tournament than legitimate bookmakers.
Furthermore, the operation has been in place since 2016, as law officials remained poised until the most effective moment to ensure they could counter and arrest those responsible for the illegal syndicate.
There was also an illegal gaming and casino operation pursued by the group, which operated in Macau and was taken down by law officials amidst the investigation.
It was also detailed that there was cross-border collaboration as a result of the illegal operation, with a customs official being one of the suspects arrested.
The investigation and arrests come following stark warnings from the Chinese government over the usage of overseas betting operations and casinos.
1
Casinos applying for one of the three commercial licences available in downstate New York could have just under one year to submit their bids, after a deadline of June 27, 2025, was suggested by the Empire State’s regulator.
The unanimous decision was made by the New York Gaming Facility Location Board, which oversees the ongoing commercial casino licensing process for downstate New York.
However, it goes against the August 31, 2024 deadline stipulated in Senator Joseph Addabbo’s bill S9673A, which passed through the US state’s House and the Senate earlier this month.
The Gaming Facility Location Board stated in a meeting last Thursday that they thought the deadline at the end of this summer was too tight and in conflict with the bill.
Board member Stuart Rabinowitz said the August 2024 deadline is too soon as it “would put some potential applicants under a lot of pressure and would favour some and disfavour others”.
Meanwhile, the June 2025 deadline was considered to be far away enough for applicants to be prepared, while also being early enough for the board to thoroughly consider applications before its December 31, 2025 approval deadline.
Nevertheless, S9673A is still awaiting the signature of Governor Kathy Hochul after being approved by the legislature and if signed, the August deadline will remain in place.