CasinoBeats is breaking down the numbers behind some of the industry’s biggest stories. Our latest headline reflection features financial results from Gaming Innovation Group’s Gentoo Media and Holland Casino, as well as an update from the UKGC on affordability check plans.
39%
Gaming Innovation Group’s rebranded stand-alone media group Gentoo Media generated €30m of revenue in Q2 2024, up 39% from 2023 comparatives of €22m.
Success of the firm and the growth of the group was significantly enriched by their M&A strategy as completed AskGamblers and KaFe Rocks deals provided an uplift for the group.
GiG Chairman Mikael Riese Harstad commented on the group’s performance: “It is with this confidence that I am happy to announce the finalisation of our strategic split into two separate listed entities: Gentoo Media (formerly GiG Media) and GiG Platform. This split is now set to be completed by the end of September 2024.”
“I am fully confident that both companies will flourish as independent entities, each continuing to lead and innovate within their respective areas of focus.”
Overall GiG’s divested Platform & Sportsbook business registered a 21% decline in revenues to €7.3m (Q2 2023: €9m).
Revenue declines were anticipated as the divested Platform & Sportsbook business has changed its auditing structure under IFRS rules.
$330m
Georgian courts have ruled in favour of Aviator in the firm’s copyright and trademark infringement claim against Spribe and Flutter-owned Adjarabet.
The group was awarded $330m in damages after the ruling found copyright and trademark infringement and invalidated trademark registrations based on bad faith.
One of the key elements of the case was Aviator seeking to halt Adjarabet from utilising copyrighted material by offering Spribe’s Aviator crash game.
The Aviator brand registered by Spribe has gone on to become one of Adjarabet’s most successful crash games, the firm originally registered its own “Aviator” trademarks for computer games and gambling services, which the claimant argued were infringing on its original trademark.
Flutter has since confirmed it will appeal the decision, issuing the following the statement: “The level of damages sought is egregious in nature and bears no resemblance to the actual economics of the property under debate.”
€3.5m
Holland Casino revealed it suffered a loss of €3.5m in the first half of 2024.
It’s a dramatic change from last year, when the company made a profit of €17.2 million in the same period. The company also blamed the 1% increase in gambling tax since the start of the year, which according to the group cost them a total of €3.7m.
CFO Ruud Bergervoet, commented: “Holland Casino’s finances are under severe pressure due to increased costs. This mainly concerns high inflation, the increase in the collective labour agreement and investments in our gaming offer and staffing.
“As a company, we are also still working on paying off the corona debts. This makes our financial position vulnerable. It is crucial for our financial health that no further significant cost increases occur now. Only then can we prevent ourselves from ending up in a loss-making situation.”
High inflation was also cited by the group as a reason for the increasingly challenging times, as it revealed it has already taken into account a sharply reduced profitability.
6
An update on affordability checks has been provided by the UK Gambling Commission as the regulator prepares to launch a six-month pilot for financial risk assessments.
The Commission announced on 1 May 2024 that it would look at launching a pilot of its frictionless ‘light touch’ financial risk assessments from 30 August, this upcoming Friday.
A four-stage plan was initiated by the UKGC back in May, hoping to adopt regulatory changes that will impact “remote game designs, terms and conditions on direct marketing, light-touch financial vulnerability checks, and tightening processes to support age verification checks in premises.”
Once launched on Friday, the pilot will run for six months to apply light-touch affordability checks with an initial threshold of customer deposits of £500 a month.
Subsequently, the pilot aims to reduce the deposit threshold to £150 a month by 28 February 2025.
