Fortune favours the brave

first_img Subscribe to the iGaming newsletter AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter My name is Jonny and I’m the founder of a gambling startup. I’m here to shed light on the unique challenges our industry poses for start-ups, to explain why these startups are essential for innovation and to raise a call to arms to do more to help them flourish. Innovation is the lifeblood of any industry but it’s also one of the biggest challenges. This is especially true in online gambling, where the risks of deviating from the status quo in such a competitive environment are high. Old vs new These days, incumbent bookmakers find themselves in Clayton Christensen’s now famous Innovator’s Dilemma. Granted they have the luxury of a huge customer set, but they also have equally high expectations of yearly sales. Meanwhile, the large customer set is not interested in new innovation and keeps demanding more incremental innovation from the incumbent product. In contrast, startups find niches away from the incumbent customer set to build new products. They don’t require the yearly sales of the incumbent, nor do they face demands for a perfect product, and therefore have more time to focus and innovate on their smaller venture. It’s in this space that new entrants invent new products and ways of doing things. The theory goes that by the time the new product becomes interesting to the incumbent’s customers it is too late for the incumbent to react and keep up with the new entrant’s rate of improvement. It’s this opportunity that drives entrepreneurs to invent game-changing technology and ideas that ultimately invigorate and refresh industries. In this way you can think of startups as a small but essential part of the industry ecosystem.When startups flourish the ecosystem flourishes; when they’re supressed the ecosystem loses vitality. Whole different ball game So let’s take a look at what it’s like being not just a startup, but a gambling startup. First, you’ll need a bank account, if you can find a bank that will give you one. You might want to start talking to venture capital firms, but you’ll quickly discover that 95% of them won’t touch gambling. You’ll no doubt want to follow lean startup principles to go live and fail fast, fail often. Until that is you realise that gambling requires licences, safeguards and compliance and that failing fast or slow comes with serious consequences. Technology is key to every new business, but then you grasp the sheer complexity of gambling: vast data feeds, real-time odds, KYC, payment gateways, third party integrations and platform providers. How the hell does it all connect together you wonder, and when you eventually figure that out you’ll be asking if you should build it yourself or buy off the shelf. It’s okay though, you say to yourself, you have some money you can use to bootstrap it, but then you worry if you have enough money. Enough of a runway to pay for monthly feeds subscriptions, the complex integrations, service charges or even just the time to figure it all out – all while keeping food on the table. Naturally you’ll be keen to network and be part of the wider startup community, only to realise pretty soon that with gambling it’s that little bit harder to fit in. There’s always your own industry, you think, but then again it’s dominated by huge operators with little time or interest in supporting the little guy. Eventually you have an app and you’re on the home run now, only to discover that because it’s connected to gambling Apple takes three months to review it instead of the advertised three days and the Play store won’t even consider entertaining it before seeing a gambling licence.Finally, you’ll need traction, so you do what’s easily taken for granted and turn to Twitter, Facebook and Google PPC – only to be shut down for violating their inflexible gambling advertising requirements. Yet… It’s worth every minute As the saying goes, beyond the mountain are more mountains. So why do we bother? Ultimately we do it to create change where we see stagnation and unexploited opportunities. We choose gambling because sport and gaming are life and let’s face it: unlike other industries the financial pay-off could be monumental.Even if it doesn’t work out, as a failed entrepreneur you’ll be left with more invaluable business and life experience compressed into a matter of years than a decade working for the man. Off the back of this you can be guaranteed that your next venture will be twice as good and take the half the time. One thing’s for sure: it’s a tough challenge and as an industry I believe we could be doing more to help. To see ahead what others cannot see Recently I met a gambling startup at the very beginning of their journey and was able to tell them more in an hour and a half than I’d learnt in four years, the hard way. It felt good to help. In the past I might have viewed them as a competitor, but having been through the mill, I could only sincerely wish them the very best of luck.It was this experience that opened my eyes to the need for, and benefit of, mentoring. It made me realise how much mentoring could have benefitted me – and how much startups in general could still be helped. If you’re reading this and thinking you’ve been through your own kind of mill, be that corporate or entrepreneurial, an hour of your time could make a huge difference to a startup. One of the greatest assets mentors have is their ability to see ahead what others cannot see and to navigate a course to their destination. Aside from the obvious good karma that comes from helping, we’re starting to realise that mentoring is both what we need and what we can offer, that it puts us in the mix with good ideas and good people, and offers us potential investment and collaboration opportunities. Join us and make a difference If finding out more about gambling startups sounds interesting, join our mailing list at gamblingstartup.ventures. Here we hope to start informally connecting like-minded people to do exciting things.Jonny Robb is the founder of tech innovation studio Bettor Faster, creators of Bet Blocks Messenger app. Being a user experience architect and former developer his passion lies in the creation of disruptive technologies. Casino & games Tags: Mobile Online Gambling Payments Video Gaming Topics: Casino & games People Sports betting Strategy Tech & innovation Video gamingcenter_img 11th February 2019 | By contenteditor Email Address Fortune favours the brave If founding a startup is fraught with risk, how much higher are the stakes for one trying to make it in the gaming industry? The brains behind an innovative new betting app gives iGamingBusiness.com his inside viewlast_img read more

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GB regulator launches review of FSB Technology licence

first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Regions: UK & Ireland Tags: Mobile Online Gambling Email Address GB regulator launches review of FSB Technology licence The GB Gambling Commission has instigated a review of white label and gaming platform provider FSB Technology’s licence, as a result of regulatory concerns. 22nd August 2019 | By contenteditor The GB Gambling Commission has instigated a review of white label and gaming platform provider FSB Technology’s licence, as a result of regulatory concerns.The Commission said the review was launched under Section 116 of the Gambling Act, which gives the regulator the power to launch an inquiry if it suspects that licence conditions are or have been breached.It may also launch an investigation if it believes the licensee may be unsuitable to perform licensed activities, or if it believes any individual connected with the licensee has been convicted of an offence in Great Britain or abroad.FSB noted that it had suspended activities on its Blackbet white label site, which it runs for an operator also active in the Nigerian market. However, it added, this will not prevent the operator from paying out to customers. The Blackbet site carries a statement informing customers that any unsettled bets will be made void as of 23:59 on 27 August.Blackbet is the second FSB white label partner to go down in recent weeks, after 1xBet’s UK-facing site was forced offline earlier this month. A newspaper investigation made a number of allegations against the operator, including that it was advertising via prohibited websites.The operator has denied the claims, however, saying that third party marketing partners are to blame.FSB was unwilling to comment on the Gambling Commission review. Aside from Blackbet, it currently runs 12 white label domains under its licence, including sites for partners such as Genting and DafaBet, as well as independent bookmakers including Toals and JenningsBet. Topics: Legal & compliance Sports betting Subscribe to the iGaming newsletter Legal & compliancelast_img read more

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GC grants approval to Rank Group’s acquisition of Stride

first_img The GB Gambling Commission has given its approval to Rank Group’s proposed acquisition of online casino and bingo operator Stride Gaming.Rank, operator of the Mecca Bingo and Grosvenor Casino, in May made an offer of £115.3m (€130.6m/$143.6m) to purchase Stride’s entire fully diluted share capital, but required approval from the UK regulator to proceed with the deal.Followiing this clearance, Rank and Stride will next week meet for a hearing at the Royal Court of Jersey to finalise the acquisition. The hearing is due to take place on 2 October.Although both parties have stressed that the transaction remains conditional on the sanction of the Court, should the deal go ahead as expected, 3 October would be the final full day of trading for Stride’s shares. Trading would be suspended the following day, with Stride having made an application to London’s Alternative Investment Market exchange. If granted, the shares would be removed from 7 October..Stride has made an application to AIM to cancel the admission to trading of its shares on AIM, which is expected to take effect from October 7.The Commission’s approval comes after Stride shareholders in July also voted in favour of the acquisition. A total of 96.43% of votes cast backed the transaction, with just 3.57% against the deal.Upon tabling the offer in May, Rank said that the merger would create a business with genuine scale and capability in the digital market, with pro forma digital net gaming revenues of approximately £185m.Rank also said the deal would improve its performance and reduce costs through migration to Stride’s proprietary technology platform and in-house ecosystem, as well as enhance its management team with the addition of senior Stride staff.In addition, Rank said that the merger would create significant value from strong synergies and offer greater financial flexibility to the combined business.Last month, Rank announced flat sales and a 22% year-on-year drop in operating profit in its annual figures, despite digital growth helping to drive an improved performance in the six months until June 30.Operating profit slumped to £39.0m from £50.1m in the year through to the end of June, while like-for-like revenue fell from £731.3m to £729.5m and statutory turnover edged up from £691.0m to £695.1m. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Topics: Finance Legal & compliance GC grants approval to Rank Group’s acquisition of Stride The GB Gambling Commission has given its approval to Rank Group’s proposed acquisition of online casino and bingo operator Stride Gaming. The bid, tabled in May, values Stride at £115.3m (€130.6m/$143.6m). Regions: UK & Ireland Finance Tags: Online Gambling Subscribe to the iGaming newsletter 23rd September 2019 | By contenteditor Email Addresslast_img read more

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Twin River income declines despite 2019 revenue growth

first_imgAddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Casino & games 11th February 2020 | By Daniel O’Boyle Regions: US Delaware Mississippi Rhode Island Twin River income declines despite 2019 revenue growth Twin River Worldwide Holdings saw revenue rise 19.8% to an estimated $523.6m, but net income declined 23.7% to $51.4m after increased financial costs, according to the operator’s preliminary year-end figures.The majority of Twin River’s revenue for the year came from its two Rhode Island locations: its flagship casino and hotel in Lincoln and the Tiverton Casino & Hotel in Tiverton. These two casinos combined for an estimated $306.3m in revenue, up 1.2% year-on-year.Twin River made $127.4m in revenue from the Hard Rock Hotel and Casino in Biloxi, Mississippi which it owns and operates.The operator made a further $80.8m in revenue from Dover Downs Casino in Delaware, following its acquisition of the property last year.Read more on iGB North America. Subscribe to the iGaming newsletter Topics: Casino & games Finance Email Addresslast_img read more

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GBGC launches consultation on LCCP reporting changes

first_img GBGC launches consultation on LCCP reporting changes 4th March 2020 | By Daniel O’Boyle Subscribe to the iGaming newsletter The British Gambling Commission has launched a consultation on potential changes to the licence conditions and codes of practice (LCCP) which all licensees must adhere to, mostly to change the ways in which licensees must report key events to the regulator.The consultation opened on 26 February and will last until 20 May. In total, the Commission has proposed changes to 17 different articles of the LCCP.The changes would remove the phrase “Ensure that the Commission is provided [with information]” concerning possible offences under the 2005 Gambling Act or breaches of the LCCP.This, the regulator said, was intended to reinforce the fact that, “responsibility for meeting the licence condition rests with licensees, not third parties”.In addition, a new licence condition was introduced, which requires licensees to report any cases of organised money lending they are aware of.Licensees would no longer be required to make the Commission aware of investment, which is not by way of subscription for shares, but now would be required to tell the Commission if a figure in a senior position at the licensee takes on a different senior position at the same company.As well as this, those who hold a licence would no longer be required to notify the regulator of the receipt of reports of the outcome of compliance assessments from regulatory or government bodies.The changes would also add a new licence condition specifying that licensees must notify the Commission of any actual or potential breaches of  Money Laundering, Terrorist Financing and Transfer of Funds regulations.Personal licence holders will have the period of time in which they must report key events extended.The regulator would also shorten the reporting period to annual returns to within 28 days of the end of the financial year, creating a deadline of 28 April, rather than 42 days.In addition, the LLCP would be amended so that customers placing such bets must not be in breach of any rules on betting or misuse of inside information, as opposed to simply rules about irregular or suspicious betting. The changes would also introduce standardised formats for reporting of suspicious betting activity, which the Commission said it hoped would, “improve efficiency in data collection.” Under the changes, the Commission would also no longer require operators to notify the Commission about persons they have authorised to offer pool betting in racing or football.The section concerning the reporting of key financial events such as winding-up orders and bankruptcy was also amended, but only to list all of these events more briefly.The social responsibility code would be amended to allow the Commission to specify the form and manner in which results of inspections involving underage gambling are provided to the Commission.The Commission’s proposals also included changes to regulatory returns and collection of statistics. The regulator says it will collect less data overall, but more that deals with the prevention of fambling-related harm.“We also intend to introduce new datapoints that place a greater focus on our commitment towards consumers and the prevention of gambling-related harms, and to implement several changes focused on improving data quality,” the Commission said.The Commission would no longer ask for non-GB data to be broken down by sport and game category, for the number of gaming machines sold or gambling software data to be reported by title. The regulator said it also hopes to publish Industry Statistics within 6 months of the end of the reporting period, as opposed to seven to eight months.Stakeholders will be able to provide their input on any or all of the proposed changes. When the consultation closes, the Commission will publish one or more consultation response documents within three months.Any changes to the LCCP as a result of this consultation will most likely take place in October 2020. The Commission will provide licence holders with at least three months’ notice before LCCP changes come into force. Casino & games The British Gambling Commission has launched a consultation on potential changes to the licence conditions and codes of practice (LCCP) which all licensees must adhere to, mostly to change the ways in which licensees must report key events to the regulator. Tags: Online Gambling Regions: UK & Ireland Topics: Casino & games Finance Legal & compliance AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Email Addresslast_img read more

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KSA ups fines for Covid-19 adverts by €50,000

first_img Dutch gambling regulator the Kansspelautoriteit (KSA) has said that it will increase fines levied on any igaming operator that uses the novel coronavirus (Covid-19) pandemic to promote their products by at least €50,000 (£45,501/$53,924).The regulator said it had noticed both operators using Covid-19 to promote their offerings, using terms such as “Coronavrij gokken” (Corona-free gambling) to do so.As a result operators, affiliates, review sites and unlicensed land-based operators would all face a 25% increase in the current penalty for illegal activity, meaning the minimum fine would start at €250,000.This may be increased further, based on the content of the ad in question.Licensed, land-based operators, meanwhile, were also warned not to reference Covid-19 in their marketing, as Article 4A of the current Gambling Act states that operators must moderate advertising. References to the current situation, the KSA said, would be considered a breach of this regulation. Notices stating that games or prize draws must be cancelled, adjusted or postponed as a result of the pandemic would not be considered an advertisement, however.The pledge comes after the regulator earlier this week said that since the mass closure of gaming venues due to the outbreak of Covid-19, it had seen an increase in advertising by online operators.iGaming remains illegal in the country, until the market opens for business from July 2021, after the Remote Gambling Act comes into force from 1 January. The new market will officially open on 1 July 2021, with gross gaming revenue expected to reach €300m the first full year of operation. Tags: Online Gambling OTB and Betting Shops KSA ups fines for Covid-19 adverts by €50,000 Legal & compliance Email Address 20th March 2020 | By contenteditor AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Subscribe to the iGaming newsletter Regions: Europe Western Europe Netherlands Dutch gambling regulator the Kansspelautoriteit (KSA) has said that it will increase fines levied on any operator that uses the novel coronavirus (Covid-19) pandemic to promote their products by at least €50,000. Topics: Legal & compliance Marketing & affiliateslast_img read more

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Flutter and TSG secure CMA approval for mega-merger

first_img Tags: Online Gambling OTB and Betting Shops Finance Topics: Finance Legal & compliance Email Address The UK’s Competition and Markets Authority (CMA) has given its approval to the proposed mega-merger between Flutter Entertainment, the parent company of Paddy Power Betfair, and Sky Bet operator The Stars Group. Subscribe to the iGaming newsletter The UK’s Competition and Markets Authority (CMA) has given its approval to the proposed mega-merger between Flutter Entertainment, the parent company of Paddy Power Betfair, and Sky Bet operator The Stars Group.The CMA granted “unconditional phase one clearance” to the proposal, which would see Flutter acquire all of the shares in TSG and join together to create a combined business with annual revenue of £3.8bn (€4.3bn/$4.7bn).The proposed transaction is still subject to approval by Flutter shareholders at its extraordinary general meeting on 21 April, as well as TSG shareholders at a vote on 24 April.The merger is also conditional on approval from a number of other regulatory bodies, some of whom have warned that this process could be delayed due to the global outbreak of novel coronavirus (Covid-19).Among the organisations yet to give clearance to the proposed merger are the UK Financial Conduct Authority, London Stock Exchange and Euronext Dublin.“This morning’s announcement from the CMA marks a further important milestone in the process towards completion of our proposed combination with The Stars Group,” Flutter chief executive Peter Jackson said.“We continue to work with the remaining international regulatory authorities to obtain the last of the outstanding approvals. Separately, last week we published the necessary documentation ahead of the shareholder votes in April and we continue to make good progress in our post-completion planning.”Flutter and TSG last week also announced that they had come to an agreement as to who will serve as directors at Flutter. Divyesh Gadhia, currently the executive chairman of TSG, will become deputy chair of the group, following completion of the merger.TSG chief executive Rafi Ashkenazi will act as a consultant to Flutter and join the board in a non-executive capacity rather than taking up an operational role, while Richard Flint, Alfred Hurley Jr, David Lazzarato and Mary Turner will also become directors.Subject to completion, Jan Bolz and Emer Timmons will step down as non-executive directors of Flutter, while Ian Dyson will step down from the audit committee and will relinquish his roles as senior independent director and chair of the nomination committee. Andrew Higginson will instead take up these positions. Regions: UK & Ireland AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter 31st March 2020 | By contenteditor Flutter and TSG secure CMA approval for mega-mergerlast_img read more

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Svenska Spel demands stricter measures against match-fixing

first_img Subscribe to the iGaming newsletter Legal & compliance Svenska Spel has once again claimed Swedish gambling regulator Spelinspektionen’s needs to go further in its efforts to prevent match-fixing, arguing the latest proposals do not go far enough to stop betting-related corruption.Last week, the Swedish gambling regulator proposed limiting betting to the top four divisions of football and banning betting on training matches or friendlies entirely.The regulations follow measures put forward by the regulator in January this year to ban betting on rule violations – such as yellow cards in football – betting on teams or athletes losing and betting on individual performances on athletes aged 18 or under. Svenska Spel also argued that these rules failed to do enough to protect sports, counteract gambling fraud or strengthen consumer protection.While groups such as operator association Branschföreningen för Onlinespel (BOS) have criticised the proposed rules for being too strict and only helping the unlicensed market, Dan Korhonen, product manager for sports betting and game safety at Svenska Spel, said more needs to be done in the fight against match-fixing.“It’s a step in the right direction, but it’s still a long way to go before we have all the tools needed to stop match fixing,” Korhonen said.Korhonen said that the rule to only allow bets on matches featuring clubs from the top four divisions may work well for domestic matches in Sweden, but could still lead to betting on more at-risk matches in some other countries where the fourth tier of football may be a much lower level.“For Sweden, this is a correct boundary in accordance with the recommendations of the National Sports Federation, while in Estonia, for example, it would mean games on extremely low divisions,” he said.In addition, Korhonen said he wished to see betting on the number of throw-ins and corners within a game banned, noting past investigations suggested fixers had targeted these markets. Korhonen said it was “very strange” that objections to these bets had been ignored.However, Korhonen also said the proposals went too far in other areas, citing the ban on friendlies. He pointed out that international friendlies are a major part of the footballing calendar and said betting on these games should still be allowed.“This would mean that you can only offer games on competition matches played by our Swedish senior and U21 national teams,” Korhonen said. “The national team plays many friendlies every year and not to allow licensed gaming companies to offer games on these would be very unfortunate.”Korhonen added that the gambling industry has a responsibility to fight match-fixing and must do so in order to protect its reputation.“It should be obvious that the gaming industry should take responsibility for the sport and protect it from match fixing to the greatest extent possible,” Korhonen said. “In order to strengthen the industry’s long-term credibility, responsibility should always go before profit.”The operator had previously spoken out after seeing an increase in betting activity on Sweden’s lower leagues, following the suspension of sporting action arond the world as a result of the novel coronavirus (Covid-19) pandemic.Yesterday, Svenska Spel announced that its revenue ticked up 0.7% in the first quarter of 2020 to SEK2.14bn (£173.5m/€199.4m/$217.0m) while profit grew by 33.6% to SEK545m, despite the effects of the novel coronavirus (Covid-19).On the same day, a new report commissioned by BOS found that Sweden’s channelisation rate to the licenced market for online casino and sports betting are well below government targets and in decline, with the rate for sports betting falling between 80% and 85%. Svenska Spel has once again claimed Swedish gambling regulator Spelinspektionen’s needs to go further in its efforts to prevent match-fixing, arguing the latest proposals do not go far enough to stop betting-related corruption. Svenska Spel demands stricter measures against match-fixing Topics: Legal & compliance Sports bettingcenter_img Regions: Europe Nordics Sweden AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter 29th April 2020 | By Daniel O’Boyle Email Addresslast_img read more

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Insurance payout offsets Covid-19 hit for SkyCity in 2020

first_img Subscribe to the iGaming newsletter Insurance payout offsets Covid-19 hit for SkyCity in 2020 New Zealand caisno operator SkyCity Group saw revenue grow 36.8% to $1.13bn (£572.6m/€643.6m/$760.7m) as favourable win rates and insurance payouts from a 2019 fire offset a decline in normalised revenue due to the impact of the novel coronavirus (Covid-19).While SkyCity made $1.13bn in revenue, its normalised revenue came to $779.5m, down 24.3%. Normalised revenue is adjusted for average win rates and removes exceptional items such as the insurance payout from a fire at the New Zealand International Convention Centre and Horizon Hotel in October 2019.SkyCity’s flagship Auckland property brought in the most revenue, at $497.3m, down 18.0%. SkyCity said Covid-19 was the reason for this decline, with the venue posting record revenue for the eight months ending on 29 February.Of this total, $230.8m came from table games, a 14.8% decline, and $128.0m came from table games, 21.6% less than in 2019. The Auckland venue made a further $138.5m in non-gaming revenue, a 19.6% decline.SkyCity Hamilton was the operator’s most resilient venue amid the effects of Covid-19, bringing in $58.8m, down just 4.8%. Gaming machines brought in $41.4m of this total, a 6.8% decline, table game revenue fell 6.1% to $8.4m and non-gaming revenue rose to $9.0m.SkyCity Adelaide brought in $121.0m, down 18.7%. Gaming Machine revenue was down 25.6% at $38.3m and table game revenue down 26.5% at $56.9m, but non-gaming revenue was up 30.3% to $25.8m.SkyCity Queensland’s revenue was down 15.1% at $11.1m. Gaming machines brought in $5.7m and table games $3.8m, while non-gaming revenue grew to $1.6m.SkyCity chief executive Graeme Stephens also said the operator’s domestic business fared well after casinos in New Zealand were allowed to reopen.“Our domestic businesses in New Zealand and Adelaide have recovered more quickly than anticipated post reopening which has been encouraging, although the outlook remains unpredictable as we adjust to new social and economic settings,” he said.In the 2019-20 fiscal year, the operator launched its GiG-powered online business, which brought in revenue of $10.2m in its first year of operation on bets of $253.5m from 15,855 customers. Stephens said that while online revenue declined once casinos reopened, it experienced another boost after the end of the fiscal year as SkyCity’s Auckland property was forced to close again until 31 August.“We have observed a slight reduction in online gaming revenue following the reopening of our properties in May, but we saw an increase in activity during the second Auckland closure period in August,” he said. “We now have over 35,000 customer registrations and we continue to prepare for a regulated online gaming industry in New Zealand. We are supportive of the Government’s ongoing policy review in this regard.”The operator’s Asian VIP business brought in $78.9m in normalised revenue, down 58.6%, on stakes of $5.8bn, while the SkyCity Hotel Group saw revenue fall 24.8% to $41.1m. Stephens said both of these segments would be slow to recover due to their dependence on international travel.Insurance recoveries and liquidated damages from the New Zealand International Convention Centre fire in October 2019, which forced its Auckland casino to shut for a number of days, came to $384.5m.The business paid $72.8m in goods and services taxes on gaming, down 28.1%, for net gaming revenue of $706.7m, down 23.9%.SkyCity’s expenses came to $776.7m, up 48.1%, of which $108.1m was fire-related. Its normalised expenses declined by 16.5% to $506.0m. Stephens said this was due to cost cutting measures implemented as a result of the pandemic.“A wide range of strategic decisions and actions have had to be taken to mitigate the impacts of, first, the fire and then the impacts of Covid-19,” he explained.“We have rapidly restructured our New Zealand workforce, downsizing it by around 25% to ensure SkyCity is positioned to be sustainable in the short to medium term; we have undertaken a capital raising and debt restructure to ensure that SkyCity has sufficient liquidity and funding capacity; and significant operational effort has been focused on closing and reopening our properties with rigorous health and safety measures in place.“SkyCity was able to move quickly but with care in response to these events and is well positioned to deal with the foreseeable future. The wage subsidy in New Zealand and Australian JobKeeper scheme have been helpful and partially mitigated the impact of property closures and ongoing negligible international customer activity.”SkyCity Auckland’s expenses fell by 9.0% to $257.0m, SkyCityHamilton’s expenses ticked slightly down to $27.9m and SkyCityQueenstown’s expenses were down marginally at $9.2m.SkyCity Adelaide’s expenses declined by 12.9% to $101.1m, the hotel group’s expenses were 7.3% below 2019 at $20.9m. Online costs, meanwhile, came to $8.1m, of which $5.7m were in bonuses and costs to supplier GiG.After these expenses, SkyCity’s earnings before tax, interest, depreciation and amortisation (EBITDA) came to $348.3m, up 16.9%, while its normalised EBITDA was down 37.7% at $200.7m.The business incurred a further $86.6m in depreciation and amortisation costs for earnings before interest and tax (EBIT) of $261.7m, up 20.2%. Normalised EBIT, however, was down 52.9% to $114.2m.SkyCity paid $28.6m in net interest costs, resulting in a pre-tax profit of $233.1m, up 12.3%, or a pre-tax normalised profit of $93.0m, down 59.9%.After a $2.2m tax benefit, SkyCity reported a profit of $235.4m, up 62.8% year-on-year. Its normalised profit, however, fell by 59.7% to $66.3m.Stephens said the business’s performance in the 2020-21 fiscal year would most likely depend on whether further closures are required.“We expect the domestic businesses to continue to perform well when open but remain prepared for the possibility of further closures,” he said. “We are planning for international borders to be closed for the duration of FY21, and that there will be negligible International Business and international tourism activity.“”Based on our current outlook we believe we are well positioned to deal with any further adversity, and we expect to achieve some growth, but there is something of a holding position across several aspects of our business.” Casino & games New Zealand caisno operator SkyCity Group saw revenue grow 36.8% to NZ$1.13bn as favourable win rates and insurance payouts from a 2019 fire offset a decline in normalised revenue due to the impact of the novel coronavirus (Covid-19). The year also saw its online business make its first contribution to group revenue, bringing in $10.2m. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter 3rd September 2020 | By Daniel O’Boyle Topics: Casino & games Finance Poker Slots Table games Regions: Oceania New Zealand Tags: Card Rooms and Poker Online Gambling Slot Machines Email Addresslast_img read more

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Betway extends with Cricket West Indies

first_imgIn addition, Betway will continue to support the CWI’s integrity and player education programmes. 14th September 2020 | By Aaron Noy Betway chief executive Anthony Werkman added: “We are extremely happy to be extending this deal which will bring us to many more fans throughout the world in conjunction with one of the most prestigious international teams.” Betway will benefit from a pitch and broadcast presence at all CWI men’s and women’s International Home Series matches, while the operator will now also become the official betting partner of the Super50 Cup 50-over tournament. Online gambling operator Betway has signed an extension to its partnership with Cricket West Indies (CWI). The three-year deal will run through to 2022, with Betway to retain its role as the official betting partner of the CWI. “CWI is delighted to extend our relationship with Betway as one of our major partners whose support makes a real difference for the development of international and regional cricket in the West Indies,” CWI commercial director Dominic Warne said. Email Address AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Subscribe to the iGaming newsletter Betway extends with Cricket West Indies Topics: Sports betting Sports bettinglast_img read more

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