CasinoBeats delves into the statistics behind the most interesting stories in the gambling industry. The latest headlines include financial results of Entain and an increase in Portuguese Self-Exclusions.
40
Entainwarned of a likely impact on 2024 EBITDA by nearly PS40m as regulated adjustments continue in UK and Netherlands.
Entain, in its published financial results, announced net gaming revenues of PS4.83bn – which includes its joint venture BeMGM with MGM Resorts International, an increase of 11 percent compared to the PS4.35bn reported by 2022.
The revenue for the year was PS4,77bn (excluding US operations), an increase of 11 percent over last year (2022: €4.3bn).
Entain stated that its trading is “in line” with what it had expected. Brazil has already seen “early benefits” from improvements made in 2023. BetMGM was launched in Nevada, and the single-account single-wallet will be available later this year.
Entain, a UK-based gambling company, said it looked forward to the introduction of the online slot stake limit and a possible uniform agreement on safer gambling measures across the entire market.
The group believes that these changes will be beneficial in the long term, however, there could still be “continued disruption of players” on the short-term. However, investments in the market could increase market share.
Entain, a Dutch company, stated that the proposed increase in deposit limits from the Dutch regulatory Kansspelautoriteit starting Q2 of 2024 could have a negative impact on the EBITDA for 2024.
The group anticipates that “in total, this dynamic could reduce FY24 EBITDA of approximately PS40m”.
215,000
Servico De Regulacao E Inspecao Dos Jogos (Portugal’s Gambling regulator) has announced that the number of online self-exclusion registrations reached 215,000 by 2023.
The regulator also noted that, while gross gaming revenues from online games increased by more than 16 percent year over year, revenue generated by land-based gambling decreased by nearly four percent.
SRIJ published data for the Q4 and announced a 16.4% increase in gross revenues compared with the prior year. The total revenue was EUR227.4m. (Q4 2020: EUR195.3m). The Q4 revenue also improved by 5.6 percent over the EUR215.3m of the prior quarter.
The 17 licensed game of chance operators in Portugal and the 13 licensed sportsbooks saw a combined revenue of EUR154,5m. This is an increase of 40.7 percent YoY. (Q4 2020: EUR109.8m). Sports betting revenues fell 14.8 percent to EUR72.8m.
Slots accounted for 83 percent of all games of chance bets during the first quarter, followed by French Roulette at 6.9 percent, Blackjack at 4.7%, Dice Games at 3.3%, Poker at 1.2%, and Poker Tournaments at 0.8%.
The regulator reported that 74.7 percent of sports bets were placed on football, with basketball coming in second at 10.8 percent, tennis third at 9.7, and other wagers at 4.8%.
The SRIJ reports that the total number during the fourth quarter was 4,1 million players, an increase of 15,7% compared with the same period in the year before (Q4 2020: 3,6 million), and the new registrations were 319.500. This is a 6.3% rise compared with the same time last year.
Self-exclusions increased by 41,6% to reach 215,000 players (Q4 2020: 151 800).
21
The Belgian Gambling Act has been revised to better protect players. It confirms that the gambling age is being raised to 21 from 18.
After publication in The Official Gazette of Belgium, the Gaming Commission has posted a news release about the changes to the Belgian Gambling Act.
The Commission has stated that new laws will be in force from September 1, 2024.
- Devices prohibited “3.3
- Ban on cumulating online licenses at the same site
- Gifts, bonuses and free games are prohibited
- Advertising of games of chance is banned in principle
- Age limit 21 and refund if no control
The Commission also stated that they are seeking the attention of “license holders E on the adjustments that need to be made to bingo machines and gaming devices with reduced stakes that operate in gaming establishments classified as Class III, in order to implement the required adjustments in a timely fashion”.
New measures have been implemented to improve the safety of Belgian licensed operators.
The age requirement for land-based casino gambling has been the same since 2018 and will be adopted by sports betting, bingo, arcades and other games.
11.4
Spelinspektionenhave declared that the gambling market in Sweden has experienced a small drop year over year for the 4th quarter of 2023 and the entire year. The segment owned by the Swedish state, casino games, saw the biggest decline at 11.4%.
The gambling authority, combining data from the Swedish Tax Agency reported that Swedish gaming companies reported a turnover in 2023 of SEK 27,1 billion (EUR 2,41bn), which is a decline of 1.2 percent compared to the prior year (2022: SEK 27,4bn).
State-owned Casino Games, as measured by vertical turnover, fell the most over the past year. The decrease was 11.4 percent to SEK475m (SEK536m in 2022). The state-run slot machines and lotteries also fell, with a drop of 3.6 percent to SEK 5 billion (2022: SEK 5 8bn).
The turnover of commercial online gaming, betting and games was SEK 17bn in 2022 (SEK 17,1bn). Games for public use and national lottery games were SEK 3bn. Community games and bingo halls were SEK 19m (2022 SEK 182m).
Spelinspektionen reported that the overall Swedish market was worth SEK 7.9bn in Q4 of 2018, down 3.2% from 2022’s same-period (Q4: SEK 7.3bn).
Spelinspektionen reported that, at the end Q4, just under 104,000 individuals were registered in the self-exclusion program Spelpaus. This is a five percent increase compared with the same period the year before.
19.7
Gammix Limited announced its intent to appeal against the EUR19.7m penalty that the gaming authority of the Netherlands Kansspelautoriteit imposed on the company.
It claimed the group had a ‘falsified’ data set, with “extreme inaccuracy” and “highly suspect math”.
Gammix denies that it offers illegal gambling games in the Netherlands via its rantcasino and betoriginal brands, as well as cashimashi, goslot nordslot vegadream, scatters or bluvegas.
Phil Pearson Director of Gammix Limited said: “The KSA imposed a penality that was both unjustified and outrageous. We can now confirm, that as we have the opportunity to speak openly, we will be fighting this case on every front. This is an unjust and excessively harsh action by a regulator who many people already considered unapproachable.
We contacted them when we first received a notice about a potential penalty to let them know that we had put in place blocks. To ensure that we were in full compliance with the guidelines, we asked them for information relevant to an investigation. They seemed to disregard our request. In a letter, our lawyers asked for more information from the regulator. However, they received no reply.
Pearson said: “This penalty is a joke and we’ll contest it in any way possible, anywhere.” Once this ridiculous penalty is rescinded, and we receive the apology that we deserve, we will rest.
888
888advertised that they will conduct a review of their US B2C business, after concluding that it is “unlikely” that the group would be able to achieve sufficient scale on the US B2C market in order to produce positive returns over accelerated timelines.
In this process, 888 is considering all possible alternatives to deliver value for its business. This includes the sale of US B2C businesses, whether in full or part, or the controlled exit from US B2C activities.
SI Sportsbook is available in Colorado, Virginia and Michigan. 888casinois also active in New Jersey.
A strategic review of the US operations is being conducted by the group due to a gross profit margin “lower” than that of the entire group in the US. This was due to the “significant costs associated with operating on the US market, including duty fees, access fees and license fees”, along with “intense competitive pressure from incumbents who are well capitalised”.
It stated that the current structure of 888 does not optimize returns.
As a result, of both the strategic review as well as the evaluation above, the group is parting with Authentic Brands Group and terminating its partnership. Authentic Brands Group had previously granted 888 exclusive rights to use the Sports Illustrated trademark for online gaming and betting.
As part of termination, 888 agreed to pay a fee in the amount of $25m, which will be deducted from its available funds, plus an additional $25m over the period 2027-2029.
According to the group, the cancellation of the Authentic Brands Group agreement is estimated to save approximately $6m – $7m in operating costs per year between 2024 and 2025.
CEO Per Widerstrom of 888 commented, “Since I began my role, I’ve been focused on making sure the group was set up for strong value creation over the next years. The intensity of the competition in the US and the need for scale mean that huge investments are required to achieve profitability.
Our partnership with Authentic consistently drives strong demand across consumer experiences as well as product offerings. SI Casino’s record breaking months have highlighted the brand strength.
However, despite our successes in this market, we believe that it is highly unlikely to achieve sufficient scale on the US Market within a short timeframe.
The strategic review of US B2C will be continued at a rapid pace. I am looking forward to updating our shareholders in March on the plans we have for our entire group.
