CasinoBeats delves into the statistics behind the most interesting stories in the gambling industry every week. The latest headlines reflect on the continued growth of New Jersey’s gambling industry, Entain’s Dutch problems and an 888 moment of relief.
461.5
New Jersey reported an increase in gaming revenues for February compared to the same month last year. This was due to gains made across sports betting and igaming.
The revenue of the nine casinos in the Garden State has declined by double digits compared to last year’s same-period period.
According to New Jersey Division of Gaming Enforcement total gaming revenues in February came to $461.5m. This is a 12-percent increase compared to the $412.2m in February 2023. Total revenue for the year has increased by 20.2% to $1.02bn. (YTD: 849.1m).
Segment-wise, the land-based casinos accounted for the largest share of the total revenues generated in the month, with $211.6m. This was followed by the igaming segment with $182.3m, and the sports betting segment with $66.6m.
Casino revenue in February of $211.6m was down 1.6 percent compared with February 2023, which had $215m. YTD, revenue in the segment is $416.3m. This represents a decrease of 2.4% YoY.
Slot machine revenues fell by 0.3% YoY at $158.9m ($159.3m in February 2023), while revenue from table games decreased slightly, to $52.7m ($55.6m in Feb 2023).
The igaming revenues increased by 27% YoY, to 182.3m dollars (February 2023: 142.6m dollars). Igaming revenues are up by 23.7 percent compared to last year, reaching $365.6m (YTD: $295.55m).
The month-end revenue for New Jersey’s sports betting operators increased by 23.7% to $66.6m ($Feb 20,23: $54.6m), with a total handle of $1.085bn. Sports betting revenues have risen by 87.7% to $238.3m ($YTD 2023 $127m), with a total handle of $2.8bn.
1.7
The Danish gambling regulator Spillemyndigheden has reported that Danes’ gambling expenditure in 2023 will be lower than the year before.
The regulator states that Danes will spend DKK 10,3bn (1,38bn EUR) in gambling in 2023. This is a drop of 1.7 percent compared to DKK 10,4bn in 2022.
Gambling spending in Denmark, except for 2021 has been decreasing year-over-year from 2019, when it was DKK 11,2bn.
Spillemyndigheden reported that Danish gamblers spent DKK 3,45bn on lottery games in 2023. This represents 34% of total wagering in 2023.
The top five were the lottery with DKK 3,08bn (30%), betting DKK 2,18bn (21%), gaming machines DKK 1,18bn (11%), and land-based casinos DKK 362m (4%)
Online casinos grew by 192% since 2012. Betting grew by 55%. Gaming machines, casinos on land and lottery numbers have declined during the same time period.
17
The region has agreed on a draft law and the parliamentary discussions have continued.
As the region continues to strive for economic growth, the progress of casinos is key to Prime Minister Srettha Thavisin‘s economic promises.
Positive news is at the core of this progress, as the agreement to tax the gaming industry in the region by 17 percent was reported.
This continues Thavisin’s focus on increasing tourism through its increased appeal among Europeans.
The bill, and its tax rate is vital to tackling and stopping the growth of the black market as well as to allowing the Thai Casino Industry to compete against Singapore and Macau.
The final decision will be made on 28 March, when the details of the plans are discussed in order to make progress towards the end for this sector.
The report was compiled by the former government, which took into consideration the economic and social implications that might arise from the expansion of the casino market.
156
More details were revealed about Entain’s legal action against Sports Entertainment Media B.V., and other parties who are involved with the valuation of its Netherlands-based subsidiary BetCity.nl.
According to casinoNieuws documents from the High Court of England and Wales the FTSE100 gaming group’s board believes BetCity.nl is worth EUR68m to EUR156m lower than the deal previously agreed with Sports Entertainment BV.
Entain has filed a lawsuit accusing Sports Entertainment BV, and its founders the Singels Family, of hiding information about regulatory infringements by BetCity.
Entain has agreed to buy BetEnt B.V. in 2022, for EUR850m. This is the Dutch operator BetCity.nl. Initial terms of the deal resulted in Sports Entertainment Media BV acquiring all of the Group’s shares for a EUR300m cash offer.
The deal included performance reward incentives worth EUR550m, which raised the offer to EUR800m on condition that BetCity produces 10x EBITDA in 2023.
Last year BetCity was fined EUR3m for failing to adhere to the Netherlands Money Laundering and Terrorist Financing Prevention Act – violations that Entain claims were hidden by Sports Entertainment Media BV and affiliated parties.
Entain was represented by Clifford Chance and justified the purchase price of BetCity by stating that it acquired a top-tier operator on the Dutch gambling markets. However, they estimated the damage caused by previous owners who breached the deal covenants at EUR68m to EUR156m.
In the court’s document, it stated that: “Without prejudice of the above matters, the Claimant’s latest good faith calculation shows the damages suffered by the Claimant as a result of the Defendants’ breach of warranty to total between EUR68 Million and EUR156 Million, although, as shown below, a different assessment method results in varying potential losses ranging from EUR58M to EUR124M.
This is true whether the loss of the Claimant is calculated at the time of the SPA or the completion date.
888
UK Gambling Commission has cleared 888 of any regulatory penalties after a review.
The UKGC reviewed 888’s license after FS Gaming attempted to buy a stake last June.
FS Gaming acquired a 6.5 percent stake in that firm. A subsequent proposal focused on the possible appointment of Lee Feldman Kenny Alexander, and Stephen Morana respectively as Chairman, CEO, and CFO.
The UKGC was communicating with 888 about its shareholding, as each of them had previously held senior positions in GVC Holdings and the newly rebranded Entain.
During the same period, GVC also faced an HM Revenue & Customs inquiry into its former Turkish operations. This investigation concluded last December with a PS585m settlement with Crown Prosecution Service from Entain.
888 ended its talks with FS Gaming by July, and went in a completely different direction in its executive team appointment. In October it hired Per Widerstrom to be CEO.
The Commission began a review of 888’s license shortly after FS Gaming ended its talks with the operator. The Commission has concluded this review and no further penalties or actions are required.
5
Philippine Amusement and Gaming Corporation announced that from April 1, the remittance rates for gross gaming revenues will be reduced on online and in-person betting platforms to “attract [more] gaming investment”.
PAGCOR’s Chair and CEO Alejandro H Tengco announced that online and on-site betting rates will average five percent.
The regulator hopes that this reduction will incentivize those operating illegally to obtain a license, and in turn help boost licensing revenues.
Tengco stated that “the remittances rates will then be around 35% (of the GGR) which is significant, because at the time we took office in August of 2022, there was a prevailing rate over 50%.”
We have gradually reduced them, so by the 1st of April our rates will match global standards.
Tengco listed three other factors that can assist the gaming industry to grow sustainably in the Philippines – the entry and operation integrated casinos, performance of the electronic games segment and benefits of the privatization of PAGCOR casino.
PAGCOR projects that gaming will generate PHP 336,38bn (5,54bn EUR) in gross gaming revenue in 2024.
E-casinos and eBingo are projected to grow strongly and generate PHP 61.75 billion, while the licensed casinos in Entertainment City, Metro Manila and Clark will produce PHP 256.63 billion.
Tengco stated: “We anticipate gaming revenue to continue growing this year and in the future, with an increasing demand from local tourists and international visitors for entertainment, leisure and travel.
We will have at least two new IRs opening each year, starting in 2024 with Solaire North, Quezon City, which opens its doors during the first half. Following this, we will see another new IR open in Clark and several others in the pipeline, including one in Cebu.
