CasinoBeats delves into the numbers that drive some of the most interesting stories in the gambling industry. GAMSTOP reacted positively to the UK Gambling Act White Paper, while PENN Entertainment reported improved revenue. Seven US regulators have joined forces to fight illicit operations.
DraftKings has suggested that it is “positioned to sustain success” after the first quarter 2023, in which the company produced robust revenue growth. The operator has increased its midpoint revenue and adjusted EBITDA forecasts for 2023.
DraftKings, in its first quarter financial report, announced revenue of $770m. This is an increase of 84 percent over the previous year (Q1 2020: $417m). The company attributes this to “efficient acquisitions of new customers, increased hold percentages, reduced promotional intensity in mature states, and continued healthy retention of customers”.
The operator’s monthly unique players also increased, reaching an average of 2.8 millions. This is a 39 percent increase YoY. This was due to “strong unique retention and acquisition of DraftKings sportsbook and igaming product” as well as an expansion of all products in new jurisdictions.
In a statement, CEO Jason Robins said: “Looking ahead to 2023, I’m confident DraftKings will achieve profitability in the near-term on an adjusted EBITDA-basis and deliver long-term shareholder value.”
GAMSTOP – the UK’s leading self-exclusion program – responded to the UK Government’s whitepaper for the Gambling Act Review by expressing the need to give player protection priority in the review as the number of its users had reached 365,000.
Fiona Palmer , CEO of the self-exclusion organization, expressed concern about the risks that gambling at-risk people face.
Palmer said, “We are especially concerned about illegal sites that do not have a GAMSTOP registration targeting vulnerable individuals.”
“More that 365,000 people have excluded online gambling. It is alarming to know that they are deliberately targeted at a time when they are most vulnerable.
Gaming Innovation Group announced its best Q1 revenue performance at EUR28.4m, an increase of 49 percent year-on-year.
GiG also “successfully began” a strategic review, which could lead to the division of the group into independent publicly-listed companies.
The group has also completed the acquisition of AskGamblers, and CEO Richard Brown stated that the company is now back to a month-on-month increase.
He said that the post-merger implementation had begun at a rapid pace. A number of short-term projects were already underway, and a long-term plan was taking shape.
“We are pleased with our first media partnership, and we look forward to expanding this internationally.” The business, excluding AskGamblers, saw a revenue increase of 13 percent in the past year as the positive developments and efforts from the previous year continued to deliver.
Both the paid and publishing segments continued to grow year on year. The company launched multiple assets and markets, further diversifying future earnings and potential.
KSA has taken action against casino operator Merkur Almere for failing to comply with exclusions measures. The fine was EUR45,000.
The casino failed to meet its statutory audit obligations when it granted access to a person who was registered on the Central Register of Exclusion of Games of Chance (Cruks).
The Netherlands requires gambling providers to verify that players are not listed in Cruks.
The person in question was registered, but between February 17 and March 2 2022 he managed to access the Merkur Casino Almere nine times.
The regulator stated that employees at the casino were unable to verify the registration of the person when they checked Cruks data.
The person was denied entry to the casino on that basis. The Gaming Authority imposed an EUR45,000 fine on the casino for failing to comply nine times during the period mentioned.
After the acquisition of Barstool Sports and a strong start of the year, PENN Ent. improved its revenue guidance for 2023 to the range $6.37bn- $6.81m.
The change in guidance follows a 7 percent increase in Q1 revenues compared to last year, to $1.67bn ($Q1 2022 $1.56bn), with $1.32bn of gaming revenue.
Jay Snowden is the CEO and president of PENN. He stated that “we are pleased to announce that PENN delivered a solid quarter in a macroeconomic environment which remains uncertain.”
“PENN reported first-quarter revenues of $1.67bn, and adjusted EBITDAR was $478.2m. A strong performance in Northeast offset softer results year-over-year in the South. Our proprietary sports betting platform and icasino, which are live in Ontario continues to drive market share and compelling results.”
Rush Street Interactive Richard Schwartz , CEO of the operator , has described the Q1 results as “excellent”, after revenues increased in several areas including Latin America.
Latin America grew by more than 100%, contributing to RSI’s Q1 revenue of $162.4m (Q1 2020: $134.9m), up 20% year-over-year.
Schwartz said: “We’re pleased with our first-quarter results. We made significant progress towards profitability, with a much improved EBITDA performance.
“Revenues increased by 20 percent compared to the previous year. This was driven by a growth of more than 100 percent in Latin America, and the launch of new markets in North America in 2020. The results were good across all of our business areas, with growth in revenue for both online sportsbook and online casino.
A coalition of seven US gaming regulatory agencies has sent a letter US Department of Justice urging more action to be taken against illegal offshore operators.
In a letter sent to Attorney General Merrick G. Garland by regulators in Colorado, Illinois and Louisiana, as well as New Jersey, Mississippi, Michigan, New Jersey, and Nevada, they stated that the DoJ’s priority should be combating the offshore markets through enforcement actions.
Michigan Gaming Control Board Director Henry Williams commented: “In Michigan strict laws and regulations govern internet gambling and sports betting, and provide consumers with protection, promote confidence, and ensure fair, honest gaming.
We are ready to assist the US Department of Justice as it enforces US laws against illegal offshore gaming enterprises that exploit our citizens.
Coderereported all of its major markets achieved growth in 2022 as the group revenue increased by over 67.5 percent compared to last year.
The group reported that EUR1.31bn of revenue in 2022 was earned following the lifting of COVID restrictions and a strong rebound in all markets. This is especially true in Argentina and Italy.
Mexico grew by 45.7% to EUR233m and Argentina by 136.6% YoY. Spain was up 18.8% to EUR172.9m.
Codere’s EBITDA adjusted was EUR133m more than the previous year, at EUR231.9m. The margin was 17.6 percent, an increase of five percentage points YoY.