CasinoBeats breaks down some of the biggest industry stories. The latest headlines reflect on the developments at Rank Group and Rank, as well as a dire regulatory update from the Netherlands.
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Dutch MPs received a number of motions calling for the outlawing of ‘high-risk’ online gambling games.
A vote was held to end the promotion of online gambling, which will further strengthen the gambling framework in The Netherlands.
Both motions have been proposed by Socialist Party Member Michiel Van Nispen, as part of ongoing Kamer revisions to the Remote Gambling Act KOA Act. This is the legal framework that was adopted in October 2021 for the Netherlands online gambling market.
After 114 MPs proposed motions, 14 of them were approved this afternoon.
Van Nispen’s first motion, which sought to ban all online gambling advertisements, received 70 votes out of 150. It failed to achieve a majority outright but was approved because ministers were absent.
This vote reverses the previous positions on this matter, having previously rejected in February an amendment by CDA MP Derk BOSWIJK to “investigate a complete ban on gambling advertising”.
The Kamer voted in favor of a blanket prohibition on all gambling ads, as KOA Amendments implemented by July 2023 banned gambling advertisements on ‘public platforms,’ such as TV, radio and print media.
Van Nispen told MPs: “The KOA is sick from the inside out.” These companies’ bad behavior leads to more gambling addictions every day.
As far as we’re concerned, this is the end for gambling companies with no morals. The ban of online gambling advertising is yet another step towards creating a nation without gambling companies.
PS431.2m
In its most recent trading update, announced a Q1 group revenue of PS431.2m. This is slightly more than the PS420m-PS430m range that was set in last month’s results for the operator.
The group’s revenue has fallen by three percent (Q1 2020: PS445.5m) compared to last year.
The group’s revenue was two percent higher than Q4 2023. However, the company expects that “revenues will return to growth year on year from Q2 2024”, and FY2024 revenues should be in line with “the mid-term goal of five to nine percentage growth per annum”.
The gaming vertical saw a slight increase of one percent to PS272.2m (PS269.8m in 2023), but the betting sector fell by ten per cent, to PS159m. (2023 PS175.7m). The average monthly active player increased by 6 per cent year-over-year to 1.8 millions (2023:1.7 million).
The Sportsbook Bets dropped by 5% YoY, to PS1.35bn (PS1.43bn in 2023), with a Net Revenue Margin of 11.8% (2023: 12.3%).
CEO Widerstrom Widerstrom stated: “I’m pleased to announce that the Q1 revenue for 2024 was slightly above our forecast, as strong player volume translated into better revenue runs rates.
We remain optimistic about a growth return in Q2 of 2024, having successfully navigated through various changes to regulatory and compliance during the first quarter. With increased marketing investments and an exciting product pipeline supporting them, we are confident that this will happen.
70%
IGaming Ontario reported that gaming revenues and wagering figures for FY2023-24 have improved over 70% compared to last year.
The casino operations in the province of Canada have been a major contributor to this improvement, with wagers and revenues growing by nearly 90 percent year over year.
iGO announced that for the quarter ending March 31st 2024, 47 operators and 77 sites collected total wagers of CAD$17.8bn (excluding promotional). FY2023-24 wagers were $63bn. This represents a 78 percent YoY growth over 202223 operations.
Total gaming revenues for Q4 were $690m and $2.4bn in the fiscal year. This is a 72% increase YoY. The figure is inclusive of rake, tournament and other fees for all operators. It excludes player winnings from cash bets, but does include operating costs and liabilities.
This quarter, the wagering and revenue figures have also improved on those reported for Q3 earlier in this year of $17.2bn and 658m.
The second-year iGaming Ontario market in Ontario is 70 percent bigger than its first year. This was stated by Martha Otton.
As the market enters its third year of maturity, I am looking forward to building upon this success as operators and partners continue to invest in Ontario to ensure that Ontarians are able to continue playing with confidence.
6%
Entain has stated that it makes “good progress” to improve operational performance, despite the declines in UK and Ireland.
The FTSE100 company stated that it had performed in line with its expectations, with its “organic growth”.
The total group gaming revenue (which includes its 50% share in BeMGM) increased by six percent year over year, though it was down three percent on a pre-tax basis.
Except for US operations, the group NGR increased by four percent YoY but decreased by three percent on a per-forma basis. The gaming NGR decreased by two percent, the sports NGR by five percent, and sports bets by five cents.
On a proforma, online operations increased by six percent following an increase of 11 percent in customers active. However, on a monthly basis, they dropped by two percentage points. Retail sales decreased on a proforma-basis by 1% and 5% respectively.
Interim CEO of Entain, Stella David stated that “Our Q1 results were in line with expectations. Growth reflected both strong performance in many markets and known challenges in other.”
We are especially encouraged by the engagement of our customers in the US after a successful Super Bowl, March Madness and the return to growth we experienced in Brazil as a result of the changes that were implemented.
A$50,000
Victorian Gambling and Casino Control Commission has fined BlueBet A$50,000 for violating gambling advertising laws.
BlueBet was found guilty by the VGCCC of 43 counts of advertising gambling on a road or over a public highway, an offense under the Gambling Regulation Act of 2003.
A member of the public complained to the commission, and the investigation was conducted. BlueBet’s charges were filed in August 2023.
BlueBet gambling advertisements were displayed on five digital billboards during a period of two weeks in August or September 2022.
VGCCC said that Greg Thomas , the Magistrate for the VGCCC “found it hard to accept BlueBet’s defence of not knowing they had broken the law given that the billboards were placed in a prime location to attract males between 15 and 54 years”.
BlueBet was also accused of “high negligence” if BlueBet’s breaches had been accidental.
The Magistrate Thomas also noted that, had he not taken into consideration the guilty plea of the operator, his cooperation with VGCCC, and the measures implemented to avoid these violations from occurring again, he could have fined BlueBet up to $70,000.
Annette Kimmitt, AM CEO of the VGCCC, commented on this verdict: “Gambling advertisements have no place in public places where they are easily visible by children and vulnerable groups. It is difficult for people to stay away from these places as they are part of their daily activities.
This decision is a message sent to betting providers who ignore these community protections.
PS182.3
Rank Group reported an increase in its net gaming revenues for the third quarter. Venues and digital channels are performing well and in line with expectation.
Rank reported that the Q3 NGR increased by six percent year-over-year, to PS182.3m. NGR is up eight percent YoY at PS544.9m.
Mecca’s venues saw the largest increase in NGR, rising 12 percent YoY from PS37.3m to PS37.3m. NGR in the sector is PS104.5m YTD. This represents a 10% improvement.
The company attributes the growth to the five percent increase in visits by customers and the seven percent rise in spending per visit. “We have benefited from the strong sales over Mother’s Day weekend and Easter.”
The Grosvenor venue generated the highest NGR, increasing by 3% YoY. NGR is up eight percent YTD to PS247.5m.
It was noted by the operator that the increase in NGR at Grosvenor was due to a 5 per cent rise in visitor numbers. However, since this quarter was a “seasonally slower period”, the average weekly NGR was PS6.2m. This was an increase of 2 per cent year-over-year but a decrease of two per cent compared with the previous quarter.
Enracha’s NGR increased by six percent YoY, to PS10m. NGR has risen by 9 per cent YTD to PS163.4m.
NGR for digital operations grew six percent to PS55m. NGR is up eight percent to PS544.9m. Rank stated that the digital operations of the UK have improved by four percent, and Spanish operations have grown by twenty percent.
John O’Reilly Chief Executive Officer of Rank commented that: “We are continuing to make progress in both our online and venues businesses. Q3 trading was very close to the Board’s expectation.
The performance continues to improve and the important reforms based on land from the White Paper of the government are something we look forward to. We hope to begin implementing them in the next few months.
