In the past week, the company has announced job cuts in the UK, customer surcharge fees in the US, and a series of stock buybacks, all as part of a strategy to protect margins amid shifting market dynamics.

Flutter to Eliminate 250 Jobs, Mostly in Leeds

Almost all the job cuts will be in the company’s Leeds office, with an additional 10 positions being in Dublin. The eliminated positions are expected to come from Flutter’s technology and product teams. The move comes as the company seeks to consolidate several of its brands.

A Flutter spokesperson told the Yorkshire Post: “As part of a broader strategy to bring some of our brands onto a single tech platform – and against the backdrop of increasing cost and regulatory pressure – we have entered into consultation with a number of colleagues.”

“While we are working with those affected to explore redeployment opportunities wherever possible, it is likely that some roles will regrettably become redundant later this year.”

According to the news outlet, Flutter plans to make further investments in its safe gambling operation in Leeds.

UK Gambling Reform Spurs Change

Last month, the UK government submitted new legislation to modernize the country’s land-based casino laws. The proposed reforms are part of the “High Stakes: gambling reform for the digital age” program.

Key changes include allowing more machines on casino floors, adopting cashless payments on slots, and removing outdated machine-to-table ratios.

If approved by the UK legislature, the new rules could take effect as early as July. Stakeholders in land-based gambling operations have praised the move, seeing it as long overdue.

At the same time, the UK government is working towards tighter online gambling regulations. Planned changes include stake limits for online slots, stricter risk checks for high-spending users, and enhancements to responsible gambling tools.

While these changes are aimed at consumer protection, together with the land-based casino reforms, they are expected to increase costs for operators like Flutter, whose brands rely heavily on online revenue.

Different Approaches in the UK and US Amid Rising Costs

Flutter’s UK job cuts come as the company faces growing regulatory and cost pressures across key markets.

In the US, the company is taking a different approach to protect its margins by passing new costs on to consumers. Flutter announced that, starting September 1, the FanDuel platform will add a 50-cent surcharge on all bets in Illinois.

The move comes as a direct response to the new tax hike in the state. The Illinois legislature passed a new law that will require operators to pay 25 cents for every bet placed on their platforms up to the first 20,000 bets. After that threshold, the tax increases to 50 cents per bet.

As FanDuel is the market leader, a significant portion of bets on FanDuel will fall under the higher tax. The increase comes on top of the Illinois tax hike that took effect last year. It raised FanDuel’s gross gaming revenue tax from 15% to 40%. The company states that it absorbed the costs last year, but this year, it will pass them on to the consumer.

Investors and analysts perceived the move as positive, and the company’s stock remained stable. The company expects to retain its profit forecasts.

Buyback Program Signals Confidence to Investors

As Flutter restructures in the UK and adapts to rising costs in the US, the company is also signaling confidence to investors through a series of share buybacks.

Last September, the company announced a plan for a $5 billion multi‑year buyback program. This week, Flutter announced the acquisition and subsequent cancellation of its ordinary shares, aiming to repurchase up to $300 million worth of shares by June 30.

The $300 million phase follows a previous $350 million tranche that the company closed on March 31. Additionally, Flutter has announced plans for another $225 million in buybacks, to be completed between July and September 2025.

In total, the three tranches add up to $875 million returned to shareholders this year.

The advancement of buybacks suggests that Flutter’s leadership remains confident in the company’s long-term strategy, despite shifting dynamics in the UK and US.

The post Flutter Responds to Global Cost Pressures: UK Job Cuts, US Surcharges, $875M in Buybacks appeared first on CasinoBeats.

2%

IGT declared revenue for Q3 of $587m, down 2% year-over-year (Q3 2023: $601m) and 3% in constant currency (cc). For the year-to-date, ending 30 September, the company reported a revenue of $1.86bn (2023: $1.85bn).

Q3’s revenue was attributed to “sustained momentum in Italy and improved US instant ticket and draw game wagers”.

Gross profit was also down 5% YoY and 7% in cc during the quarter to $263m (2023: $278m), while operating income fell by 33% YoY to $110m (2023: $163m). YTD, gross profit had declined 2% YoY to $882m (2023: $896m), while operating income was down 9% YoY to $507m (2023: $555m).

Operating income was “driven by a $38m restructuring charge associated with OPtiMa 3.0, a program focused on optimising general & administrative and operating activities following transformational actions over the last several years”.

Q3 net income stood at $43m, down from Q3 2023’s $123m. Broken down, income from discontinued operations stood at $88m (2023: $46m), but income from continuing operations fell to a loss of $46m (2023: $77m income).

Adjusted EBITDA for the quarter was down 6% YoY at $264m (2023: $279m) with a margin of 44.9% (2023: 46.4%). YTD, adjusted EBITDA was down 2% YoY to $880m (2023: $898m) with a margin of 47.3% (2023: 48.6%). IGT noted that the figures highlight the “attractive profit profile of pure play lottery business”.

Reflecting on the Q3 results, CEO Vince Sadusky noted: “Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure and strong cash generation.

“Over the first nine months, we generated $1.9bn in revenue, led by steady Italy growth and improved third quarter trends in the US. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalise on attractive industry dynamics.”

$3.25bn

Flutter Entertainment declared a 27% year-over-year increase in revenue to $3.25bn (Q3 2023: $2.56bn), while average monthly players (AMPs) grew by 16% to 12.9 million (2023: 11.1 million). Excluding US operations, revenue rose by 15% YoY to $2bn (2023: $1.7bn). 

For the quarter, net loss improved to $114m, up 56% YoY (2023: $262m loss), which the company says was “driven by strong revenue growth”. The net loss “included non-cash impacts of $128m acquired intangibles amortisation charge and $121m fair value loss on Fox Option liability (Q3 2023 $18m gain)”.

Adjusted EBITDA increased by 74% YoY to $450m (2023: $258m) with a margin of 13.9% (2023: 10.1%). Group ex-US adjusted EBITDA rose by 24% to $392m (2023: $313m).

Net cash from operating activities dropped by 48% to $290m (2023: $554m) “primarily due to the impact of derivative settlements in the current and prior year period”. Free cash flow declined by 74% to $112m (2023: $434m).

Jackson commented: “Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and Adjusted EBITDA guidance for 2024.”

The group’s 2024 guidance was also raised by 1% across revenue and adjusted EBITDA, reflecting a strong Q3 group ex-US performance.

However, Flutter also said that “excellent US momentum in Q3 has subsequently been more than offset by unfavourable sports results in Q4 to date”.

15

The New Zealand Government has agreed on further details regarding the regulation of online casinos in the country, with 15 operators set to be offered the chance to gain a licence. 

Back in July, Internal Affairs Minister Brooke van Velden announced New Zealand’s plans to have a new online casino regulatory system “in place from early 2026”. At the time, the Government stated that the online casino regulation was “designed to minimise harm, support tax collection and provide consumer protections to New Zealanders”.

Online gambling will be prohibited for those aged 18 or over, with operators only able to offer online casino games, not sports betting or lottery. The Department of Internal Affairs will be the regulator.

In addition, licensed gambling operators will be allowed to advertise, but with strict limits in place. Previously, advertising by licensed gambling operators was prohibited. Sponsorship by online casinos will remain illegal.

Providing an update earlier this week, van Velden noted that further decisions have been taken by the New Zealand Government regarding online casino regulation, stating that a new Online Gambling Bill will be drafted.

In July, the Government said that only a limited number would be allocated via auction, each lasting three years and being conditional on meeting regulatory requirements. The total number of licences to be issued has now been revealed to be up to 15.

In addition, the regulatory system will prohibit advertising that appeals to minors, require operators to have age verification systems and the regulator will issue fines of up to NZ$5m (€2.8m) for operators who don’t comply with regulations.

€7m

Gaming Innovation Group has reported more than €7m in revenue for the third quarter of 2024, but an adjusted EBITDA loss of over €1m.

Both of these figures are down compared to the same period last year, with GiG also reporting an operating loss (EBIT) of just under €10m for the quarter.

Despite the results, CEO Richard Carter has voiced optimism for the igaming technology company’s future, expressing Q3 as a “momentous quarter” and that the firm is now “in a better position to expand” its presence in global igaming and sports betting markets.

Publishing its first set of financials since its business split away from Gentoo Media last month, GiG declared revenue of €7.4m, down 21% year-over-year (Q3 2023: €9.3m).

Providing further context on the comparison, the company stated that “2023 results contain €7.8m one-off revenue related to GiG Enterprise Solution sale (2024: €1.3m)”.

Excluding client exits and enterprise revenue, Q3’s underlying revenue stood at €7.3m, up 26% YoY (2023: €5.8m).

During the quarter, GiG also achieved listing on the Nasdaq First North Premier Growth Market in Stockholm, Sweden, under the ticker GIG SDB.

The company noted that the new listing will “enable management to reinvigorate GiG’s sales and marketing activities to help expand the group’s global client reach”.

15

Meanwhile, Gentoo Media published a 15th consecutive quarter of revenue growth for Q3 2024 following its recent split from GiG. 

Across the third quarter, Gentoo’s revenue grew to €30.4m to represent a 35% growth year-over-year (12% organic) on previous year’s comparatives of €22.5m in Q3 2023. 

Jonas Warrer, Gentoo Media CEO, commented: “I am pleased to present our third quarterly report for 2024, marking yet another record-setting quarter for Gentoo Media, with 15 consecutive quarters of all-time high revenue. 

“Our focused strategy on sustainable, long-term growth – emphasising diversification and increased revenue share earnings – continues to strengthen our business. Despite market volatility, our disciplined approach has proven resilient, driving steady success and positioning us with a competitive edge in an increasingly dynamic marketplace. 

“We remain confident that our strategic path will support our continued growth and stability in the coming quarters.”

Adjusted EBITDA came in at €14.6m (Q3 2023: €10.4m) reflecting a 48% margin, while group accounts booked ‘special items’ related to the company’s September split from GiG, capped at €600,000. 

With special items excluded, EBITDA witnessed an uptick of 36% YoY by growing to €14m (46% margin). Media cash flow operations were valued at €19.9m, while IFRS5 standard platform & sportsbook cash flow was €12.2m. 

In total, 58% of revenues were generated from recurring revenue share agreements, an increase of 24% YoY.

Despite headwinds in Norway, Europe-centric revenue increased 51% YoY, while revenue share from the Americas grew by 52%. This growth in the Americas was headlined by more than double digit growth in North America. 

Europe and the Americas stood as principal markets, contributing 59% and 21% of quarterly revenue respectively.

The post IGT, Flutter, GiG and New Zealand: the week in numbers appeared first on CasinoBeats.

UK growth can never be underestimated

The UK continues on a period of regulatory transformation, however, whilst there was turbulence for many, Flutter was immensely pleased with the success of its heritage portfolio that continues to take market share in the UK –  “an element not underestimated by leadership”

Coldrake emphasised that momentum is strong in the UK, as it “continues to perform extremely well”, this is largely fuelled by a strong output from its gaming business, which was boosted by 29% increase in adjusted EBITDA to $342m. 

Jackson added: “Clearly, as we get into 2025, we will start to annualise some of the changes that we know our competitors have made. And I think it will become more difficult to grow market share at the same rate, although we shouldn’t underestimate how strong our product is in the market at the moment.”

Brazil – working towards January launch

The NSX acquisition has intensified excitement for Flutter in Brazil, enabling the operator to “push on” in the market, by delivering Flutter Edge enhancements to Betnacional pricing, products and operating margins. 

Notably, Jackson remained optimistic about the market opening on 1st January. However, he admitted that they don’t have affirmative confirmation of Bets launch date and there are still regulatory challenges at play. 

There was real optimism from Flutter over their opportunities in the Brazilian market though, with investment behind the NSX brand providing a platform for growth in the newly regulated market. 

Coldrake stated: “We’ve grown there with our brands that we’ve got there already. We’re very excited about the NSX acquisition. And we feel that gives us the ability to really kind of push on in Brazil and investing behind that brand in 2025 as we laid out at the Investor Day, something that we’re planning to do and really take advantage of what we think is a very exciting market with lots of opportunity.”

Australia – grounds for a quick recovery 

The operator provided a positive outlook for the Australian market having enjoyed success, despite a punter-friendly Melbourne Cup result.

AMP growth is at the forefront of positivity for Flutter in Australia according to Jackson, who forecasts a return to growth for its SportsBet subsidiary  in a market that has stalled due ongoing regulatory adjustments . 

Jackson said: “We’ve got to remember next year, we’ve got a lot of taxes we’re going to annualise. But I think it just goes back to the strength of the business and the benefits that Australia continues to provide to the rest of the Group through The Flutter Edge in terms of helping us with things like generosity and products.”

Italy – target is Gold 

Achieving 40% growth in Italy, the market was deemed as a key factor in Flutter elevating the guidance of its International unit by 3%. 

Italian ambitions are refreshed by the €2.3bn acquisition of Snaitech – in which the international unit must guarantee gold ranking for its portfolio of SISAL, Betfair, PokerStars and SNAI.

The latest quarter saw Flutter exceed expectations in the country, a trend mirrored by the group’s wider European performance. Coldrake commented: “What we’ve seen since Sisal has come into the Flutter’s table is the fact that being an omnichannel operator in Italy enables you to continue taking share because of the advertising restrictions there. And we see us kind of compounding that with Snai coming on board as well.”

“Snai is a really standout brand by itself. Snai is a brand in the Italian market that’s synonymous with sports betting. So it’s a very different and complementary brand to Sisal. So we see them both operating alongside one another and really kind of enhancing our position in the market overall and taking that gold medal position.”

US – Netflix…but no chill on parlays 

Despite FanDuel achieving a positive swing in Q3 adjusted EBITDA to $58m, overturning previous losses of $55m, US results are likely to be dampened by unfavourable sports outcomes recorded in October.

During the call, analysts questioned whether FanDuel would maintain its “marketing spend and generosity” through to the end of the year.

In spite of unfavourable sports swings, leadership stands by FanDuel’s promotions, asserting that “customer acquisition in new and existing states remains compelling, with payback periods of 18 months.”

Peter Jackson acknowledged that FanDuel had been impacted in October by its generous parlay offerings, which provided optimal prices and accuracy to customers, but he described the effect as a “material differential” between Flutter and its US competitors.

Jackson revealed that during the upcoming festive period, FanDuel will serve as a partner of Netflix in its broadcast of Christmas NFL games. “We’ll be delighted to deliver our exciting product for Americans to get behind on Christmas Day.”

“From a parlay perspective, you’re right; it does drive a significant improvement in the hold. I think we need to remember that we’ve seen a big step up in parlay adoption year-over-year. Customers really like the product.

“It is a higher-margin product, but the generosity proportion we offer our customers remains consistent as a percentage. So naturally, as margins increase, we will be spending more.”

Additionally, Jackson expressed his elation at overcoming strong opposition to narrowly pass the sports betting bill in Missouri.

The post Markets in focus: five key targets from Flutter’s Q3 earnings call  appeared first on CasinoBeats.

Speaking to the Financial Times, Jackson emphasised that the heightening of taxes, which have been touted by a myriad of states, will see a rise in costs and the inevitable expansion of the black market.

Jackson was also part of the UK Investment Summit, which hosted some of the key figures from business alongside  Chancellor of the Exchequer, Rachel Reeves, who is working to strengthen ties between the Labour government and business.

Off the back of the Summit, Jackson took to Linkedin to state that getting regulation and fiscal policy right are essential to achieving business and economic success. He agreed with former Google CEO Eric Schmidt that ‘UK regulation must be streamlined and implemented at a greater pace under Labour’. 

Jackson remains supportive of the implementation of the Gambling Act Review, however, sharing that the regulation ‘requires ongoing collaboration on a number of key areas, but the fact that it was complicated by three years of delay caused great uncertainty for the UK’s sports betting and gaming industry’.

The CEO added: “Consistency around fiscal policy is also paramount as it allows businesses like ours to invest with more confidence. With plenty of speculation around the taxation of our sector this week, it was perhaps timely that I warned of the unintended consequences of high taxes in an interview with the Financial Times published today. 

“While my comments about balance were in relation to the US, the point can also be applied to the UK operating environment and elsewhere – setting too high a tax rate reduces competition, weakens the consumer offering, and can lead to a reduction in tax revenue. This is in no one’s interest.

“At Flutter, we stand ready to play our part through our brilliant businesses, such as Sky Betting & Gaming in Leeds and tombola in Sunderland. As a leader in the space, we can help drive the UK’s digital economy and lay the foundations for long-term success, aligning with the Chancellor’s quest for growth.”

The comments from the Flutter CEO come after bleak predictions from analysts over the potential impact of the touted tax rises in the UK market. 

Specifically, JPMorgan analysts Estelle Weingrod and Karan Puri both discredited the effectiveness of the plans. A tax hike may well lead to an “exodus of operators” from the subsequently “unattractive” UK market, they assert.They also warned of the new framework driving players to the black market, “defeating the purpose of having a regulated market in the first place”.

They added that it is “also worth noting that generally, more stringent regulation typically offers the opportunity for scale operators to consolidate the industry further as small/sub-scale operators struggle to mitigate the adverse impact as effectively, eventually exiting the market”.

The post Flutter‘s Peter Jackson urges Labour to streamline UK regulation  appeared first on CasinoBeats.

It came off the back of an investigation by the ICO that detailed the operator had processed personal data through advertising cookies without gaining the consent of users

The complaint, which came from campaign group, Clean Up Gambling, was publicised by the Financial Times and Daily Mail.

Clean Up Gambling explained thes importance for the ICO to investigate whether Sky Bet was deliberately using personal data without consent to target vulnerable gamblers – “such profiles include indicators of personal vulnerability and addictive behaviours, which can then be used to target the most vulnerable.”

The ICO investigation found that from 10 January to 3 March 2023, Sky Bet was processing user information and sharing it with advertising technology companies.

Data was captured via advertising cookies that were processed once a user visited Sky Bet websites, where they had no option to consent to accepting or rejecting the cookies.

Nonetheless, the investigation failed to find evidence of deliberate misuse of data; however, it was concluded that Sky Bet had processed personal data through “certain cookies in a way that was not lawful, transparent or fair.” 

Taking action in March 2023, Sky Bet implemented changes to allow users to reject advertising cookies before data sharing.

Stephen Bonner, Deputy Commissioner at the ICO, said: “Our enforcement action against Sky Betting and Gaming is a warning that there will be consequences if organisations breach the law, and people are denied the choice over targeted advertising.

“We are preparing to scrutinise the next 100 most frequented websites, so I urge all organisations to assess their cookie banners now to make sure consent can be freely given before a letter arrives from the regulator.”

The case involving Sky Bet builds part of a broader crackdown on cookie compliance across UK websites, which has seen the ICO take a wide variety of actions against companies. 

A review of the UK’s top 100 most visited websites revealed that 53 had infringed upon cookie compliance duties, whilst 52 had been forced to make changes.

British media, advertisers and publishers have been warned of the ICO’s intentions to undertake a further sweep of websites and data management platforms for potential data protection violations.

The ICO urged that organisations breaching cookie laws will face enforcement, urging companies to review their cookie practices proactively.

Deputy Commissioner Bonner concluded: “We are pleased to see changes being made as a result of our intervention, with 99 of the top 100 websites either already offering a meaningful choice over advertising cookies or making improvements to gain people’s consent.

“These changes mean that people have more agency over how their personal information is used online. Others have started to introduce alternative methods to obtain consent, such as ‘consent or pay’ – a business model we are currently reviewing.”

As detailed in the King’s Speech, the Labour government has pledged to introduce a new ‘Smart Data Bill’’, to balance and harness data processing for economic growth.

The Smart Data Bill will replace the Data Protection and Digital Information (DPDI) Bill, endorsed by the former Conservative government, which failed as the House of Lords stalled its review due to amendments sought by the Department for Work and Pensions (DWP).

Labour plans to enhance the remit of data processing by providing users with three types of legal consent, including for the use of digital verification services and the creation of secure digital identity products.

The post Sky Betting and Gaming warned by ICO over data processing practices appeared first on CasinoBeats.

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.

The post GiG, Holland Casino and the UKGC: the week in numbers appeared first on CasinoBeats.

The copyright case saw Georgian courts rule in favour of Aviator over allegations of trademark infringement against Spribe OÜ and Flutter-owned Adjarabet.

As a result of the case, the group was awarded $330m in damages after the ruling found copyright and trademark infringement and invalidated trademark registrations based on bad faith. 

Batting back against the decision, Flutter issued the following statement: “The level of damages sought is egregious in nature and bears no resemblance to the actual economics of the property under debate.”

Flutter acquired Adjarabet in 2019, as the group looked to use the deal to bolster its presence in the Georgian market. 

The case in Georgia was around the firm’s use of hugely successful Aviator crash game, developed by Spribe, which the claimant was seeking to stop the firm from using. 

Nikoloz Gogilidze, Managing Partner of Mikadze Gegetchkori Taktakishvili LLC, the law firm which represents Aviator LLC, stated on the original conclusion: “We are pleased with the outcome of the court’s ruling on this claim, and we will continue to aggressively protect our client’s intellectual property from unlicensed use on any international gaming platforms.”

The post Flutter hits back at ‘egregious’ levels of damages in Adjarabet case appeared first on CasinoBeats.

Playtech issued a brief statement following significant media speculation on the potential sale of its Italian business to Flutter.

The statement emphasised that discussions are ongoing “regarding the potential sale of the Snaitech business for a value that could be about £2bn.”

Playtech granted Flutter a period of exclusivity to complete due diligence and necessary terms to pursue a deal with investors.

As it stands, Playtech’s board has not sanctioned any approach by Flutter, and “there can be no certainty that any transaction regarding the potential sale of the Snaitech business will ultimately be agreed upon, or as to its terms. Further announcements will be made as and when appropriate.”

Flutter responded by emphasising that at this stage there is no certainty that Flutter will proceed with an acquisition, adding it will provide an update as appropriate.

It would build on Flutter’s ambitions for expansion into the Italian market to expand its International unit (non-US and UK), which in 2022 acquired Italian lotto and retail betting giant SISAL for €1.9bn.

The acquisition of Snaitech would be transformative for Italian gambling, merging the market’s second and third largest gambling groups under Flutter International’s domain.

Published yesterday, Flutter’s Q2 accounts registered International Unit revenues of $807m (+11%), combined with EBITDA results of $156m.

Setting out ambitions for growth in the future, the firm’s CEO Peter Jackson underlined that ‘if necessary, we will go beyond our leverage targets to do a deal’ when it comes to market expansion.

The post Playtech and Flutter discussions confirmed for Snaitech takeover  appeared first on CasinoBeats.

Updating investors, Jackson revealed that off the back of a significant amount of M&A in the US market, there are a myriad of markets that are regulated or soon-to-be regulated that Flutter ‘isn’t yet present in with a podium or gold medal position, where they have a great track record of acquiring businesses in those markets and applying the Flutter edge and seeing a step up in performance’. 

Setting out ambitions for growth in the future, he revealed that ‘If necessary we will go beyond our leverage targets to do a deal’. 

Unsurprisingly, one of the markets Flutter is most excited about is Brazil. Jackson emphasised that the firm is ‘reasonably well-placed for growth in the region with Betfair and Pokerstars. However, he underlined that they are ambitious and are aiming for podium positions. 

Jackson didn’t rule out M&A in Brazil, as he detailed that Flutter is currently identifying the best strategy for success in the region. 

The group has also brought its igaming product in-house in the US market, in a strategy that Jackson stated wasn’t a cost-play, but one which will enrich the firm in its ability to deploy its own in-house content in the US market and drive significant benefits and initiatives. 

Furthermore, Pokerstars also continues to provide the firm with significant opportunities across the US as the landscape for poker continues to evolve. 

“When you look at it globally, poker is breaking down into different segments from a liquidity perspective. We are in a strong position in some of those local markets because of the strength of the local hero brands that they have.”

Rob Coldrake, the company’s CFO, also emphasised that in Q1 Flutter  saw poker progressing very well and later in the year, leadership expects to roll out the platform in Italy, demonstrating Flutter’s agility and quickness. 

There was also renewed optimism from Coldrake for Pokerstars continuing to experience green shoots in the US, as he lauded changes to poker loyalty and offset changes that has led to them being really happy with the way they are trending on poker. 

Jackson also pondered the impact of the latest steps by PokerStars’s largest competitor, GG Poker, acquiring the WSOP. 

He said: “GG Poker operates in a lot of markets that we wouldn’t be prepared to operate in. So I think there’s some interesting questions there for some of those people involved.”

Lastly, graduated tax and the consequences it could have on the elevating offshore gambling engagement was also on the CEO’s agenda.

He stated: “There is a happy-medium for tax rate that enables operators to maximise market growth, provides the best experience for customers and over time maximises revenue for states and most states have taken a sensible approach. I do think though that implementing a graduated tax rate punishes those who have invested the most and is wrong. 

“It will drive customers to offshore operators or to sweepstakes. Our experience is that moderating levels of generosity or reducing local marketing is the best response. We have no plans to introduce a surcharge for winners.”

The post Flutter: Peter Jackson raises questions over GG Poker acquisition appeared first on CasinoBeats.

There were discussions centred around the correct and most effective strategy for an operator to succeed in the Eastern European market, analysing the nuances that differentiate it from other European climates. 

Savo Bakmaz, CEO and CFO of MaxBet, revealed that the Balkan operator’s journey has been one of exponential growth – having gone from “literally being a company founded in a garage to a multi-million buyout by Flutter Entertainment”.

He stated that MaxBet’s evolution underlines the success of tech growth in the Balkan region – with the sector having navigated significant socio-economic challenges intertwined with tech advancements for the benefit of national economies.

“We are part of a 30-year-old economy, but it was only until recently that we have garnered interest from Western investors”, said Bakmaz. 

The growth of MaxBet was truly validated when the firm was acquired by Flutter, in what is “one of the biggest transactions in the past decade” as Bakmaz lauded the impact it had on the Serbian economy.  

When it comes to mergers and acquisitions, Simon Westbury, CEO of Sport Generate, explained: “The challenge isn’t just about transferring a business model from one region to another. It’s about understanding and respecting the economic and cultural fabrics of those new markets you choose to enter.”

Westbury reflected on his career forged in the development of gambling within new economies. Working for Digitain since 2019, Westbury has witnessed the expansion of an “Armenian tech giant employing 4,000 staff globally”.

“I don’t want to make this sound colonial, but gaming companies have created a new socio-economic class in Armenia. Government incentives for IT and tech have developed wealth and there is now promotion of home ownership… that is a positive story.

“There are parts of Yerevan that remind me of when I was living in Dubai in 2006. The amount of construction that is going on and the empowerment of gaming companies have many dividends.”

Bakmaz echoed the sentiment of Westbury on positive economic contributions but elaborated on the inherent clashes that arise when Western business practices meet prevalent traditional values in Eastern European, stating: “In the street, the word of gambling can put people on edge, and can be not so popular.”

Noted as MaxBet’s toughest challenge, Bakmaz reflected: “We had to change the perception of betting, and why people come to our shops.

“Our shops are not like Euro betting shops… They are very high class with a different offering, to change the perception of gambling. Customers are coming to our shops not just to gamble. They come to watch a game on HDTV, to socialise and relax, have a coffee or drink a beer with their friends.”

The post SBC Summit Tbilisi: understanding economic and cultural fabrics appeared first on CasinoBeats.