CasinoBeats is breaking down the numbers behind some of the industry’s biggest stories. Our latest headline reflection features M&A activity involving IGT and Everi Holdings, ‘very positive’ Q2 results from Kindred and a sustainability report from the EGBA.
$14.25
Apollo Global has swooped in to secure a landmark deal in igaming as it lands the lucrative acquisition of IGT’s Gaming & Digital business as well as Everi Holdings, at a price of $14.25 per share.
It is reported that the US firm has been successful with its cash offer to Everi shareholders as it pursues the full acquisition of its combined business with IGT’s Digital and Gaming spin-offs.
In February, Everi moved to merge its business with IGT’s Global Gaming and PlayDigital units, as dealmakers seek to form a new independently-owned IGT separated from its lottery technology business.
The terms of the deal saw Everi secure $3.7bn and $500m credit facilities from Deutsche Bank and Macquarie Capital, respectively, to finance its merger with IGT spin-offs.
Vince Sadusky, IGT PLC CEO, commented: “With the Apollo Funds, we have found a partner that recognises the strength of IGT Gaming, the value of our talent and our position in the industry.
“After the closing of this transaction, IGT’s shareholders will continue to own one hundred percent of IGT’s Global Lottery business, which will be positioned for long-term success as a pure-play global lottery player with a more focused, compelling business model and optimised capital structure to drive long-term shareholder value.”
As a result of the all-cash counter offer which places a value of approximately $6.3bn, Apollo emphasised that IGT Gaming and Everi will be privately owned companies that are part of one combined enterprise.
65%
The European Gaming and Betting Association has published its latest sustainability report, stating that 65 per cent of customers of EGBA members – a record 21 million – used safety tools in 2023.
However, a joint CEO letter within the report also raised concerns about the growth of the illegal online gambling market in Europe, with the CEOs mentioning that it “underscores the urgent need for national policymakers to take decisive action to protect their players”.
EGBA’s Sustainability Report 2024, the association’s fourth annual sustainability report, noted that over half of the 21 million customers used safer gambling tools voluntarily, which is a 14 per cent increase year-over-year.
The report – which “outlines the joint efforts and progress made by its members to promote a sustainable approach to gambling and contribute positively to society in Europe” – highlighted a record 67.6 million safer play messages sent by operators to customers, up 49 per cent YoY, of which 23 million were personalised based on customer behaviour.
Maarten Haijer, Secretary General of EGBA, commented: “We’re pleased to publish our latest sustainability report, highlighting significant progress by our members in many areas of safer gambling, particularly in the roll-out of safety tools and their direct interactions with players about their playing behaviour.
“This demonstrates their collective efforts to embed a sustainable approach to gambling at the heart of what they do.”
£327.6m
Kindred declared a total revenue growth of seven per cent YoY to £327.6m in Q2 2024 (Q2 2023: £307.3m), with improvements seen in B2C and B2B operations in comparison to the same period the previous year. Excluding North America, total revenue improved by nine per cent YoY.
Gross winnings revenue from the B2C business rose by six per cent YoY to £317.2m (2023: £298.3m) thanks to continued growth in the Netherlands and a return to growth in France and Belgium, as well as sports betting operations being the main driver.
The number of active customers for the operator increased by 12 per cent YoY to 1.75 million (2023: 1.56 million).
The operator also noted that 84 per cent of its B2C revenue (£267.1m) came from locally regulated markets. When excluding North America, revenue from locally regulated markets has risen by 12 per cent YoY.
Other revenue from its Relax Gaming B2B business improved by 16 per cent YoY to £10.4m (2023: £9m). Total Relax Gaming revenue before the elimination of Kindred Group revenues stood at £13.4m, up 10 per cent from the same period last year (2023: £12.2m).
“Building on our solid start to 2024, I am pleased to present a very positive set of second quarter results for Kindred,” commented CEO Nils Andén.
“We continue to demonstrate our resilience and strategic execution, which is reflected in our strong performance across our market portfolio. The vast majority of our top markets have grown year-on-year, which is very encouraging.”
$18.25
Bally’s Corporation’s board has confirmed to investors that it has reached definitive terms for the NYSE gambling group to be acquired by Standard General LP for $18.25 per share.
The group endorsed the cash per share offer which was proposed by Standard General LP, the New York private equity fund and Bally’s biggest investor, maintaining circa 26 per cent of the firm’s NYSE shareholding.
As a result of the deal, Bally’s will be operated by Queen Casino & Entertainment Inc (QC&E), a regional casino operator owned by funds managed by Standard General.
QC&E owns and operates four casinos across three states and is currently working on major redevelopment projects at two of its properties, expected to be completed in 2025.
Robeson Reeves, Bally’s CEO, stated: “The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio.
“With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025.
“We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”
$18bn
iGaming Ontario has reported total wagers of over CAD$18bn in its first quarter of the 2024-25 fiscal year (Q2 2024) report, with casino accounting for more than 80 per cent of the province’s total wagers.
Across the Canadian province’s 50 operators managing over 80 gaming websites, the iGO noted that total wagers for the quarter stood at $18.4bn – not including promotional wagers (bonuses) – a 31 per cent increase year-over-year and a 3.4 per cent growth in comparison to the previous quarter.
Total gaming revenue for the period was $726m, a 34 per cent uptick YoY and a 5.2 per cent increase over the previous quarter.
The iGO stated that the figure “represents total cash wagers, including rake fees, tournament fees and other fees, across all operators, minus player winnings derived from cash wagers and does not take into account operating costs or other liabilities”.
Martha Otton, Executive Director of iGO, commented: “With 50 regulated Operators and a one-third increase in wagering and revenue figures over the first quarter of last year, Ontarians who choose to gamble are finding many enjoyable options in our open regulated igaming market.
“The revenue generated by Ontario’s competitive igaming market contributes directly to provincial priorities such as infrastructure, healthcare and education.”
According to the iGO, the quarter had nearly 1.9 million active player accounts with an average monthly spend per active player account of $284.
