Glitnor Group

Cathryn McGinty has joined the Glitnor Group as chief human resources officer, bringing over 25 years experience in senior human resources and organisational strategy to the role.

This past expertise spans multiple sectors including FTSE 250 and blue chip organisations
such as such as William Hill, BUPA, Avis, BwinParty and TalkTalk.

“Glitnor Group has a strong brand and values driven culture, which was a key consideration for me when considering my next role,” McGinty said.

“I believe in developing a strong employer brand through providing a great employee experience. I am passionate about both customer and employee experience and putting people at the heart of our business.

“Within Glitnor Group, I see a tremendous opportunity as we grow; to develop our brand alongside our employees to offer a true best in class employee experience.”

Betsoft Gaming

Betsoft Gaming has named Anna Mackney as head of account management, where responsibilities will focus on demand generation; planning, executing and measuring throughout every stage of the sales team.

In addition to driving new business forward, Mackney will also be charged with ensuring that the group’s service and customer support will both retain and expand existing customers’ exposure to the Betsoft product portfolio, in a bid to deliver and track profitable growth for clients.

Matt Avison, managing director, Betsoft Gaming, noted: “Anna is hugely professional at onboarding clients. Now, as she takes over the leadership of the team, we anticipate positive change and sustained growth as we move into new markets.”

Rank Group

The Rank Group has announced the appointment of Katie McAlister to its board as a non-executive director, with immediate effect  She will also serve on its nominations, safer gambling and remuneration committees.

McAlister is currently the chief marketing officer for TUI Northern Region (UK, Ireland and Nordic), and sits on the TUI Northern Region board. She has thirteen years of digital and marketing experience, during which time she has been responsible for digital transformation and business change programmes.

Alex Thursby, Rank‘s chair, noted: “We are delighted to welcome Katie to the Rank board. Her extensive background in digital marketing, together with her customer-focussed strategic experience, will be a real asset. The board and I are very much looking forward to working with her over the coming years.”

BoscaSports

BoscaSports has rolled-out the recruitment of Racecourse Media Group’s Ben Dowding to its board of directors; lauding the move as “another important step” in scaling up the group on an international basis.

Downding is a senior executive with over 12 years’ experience within the Horseracing and
wider sports industries, and is currently director of betting for Racecourse Media
Group having previously held roles with The Jockey Club.

Dowding explained: “I am delighted to join the BoscaSports board and look forward to supporting the team in scaling the business and technology. They have developed a cutting-edge data and rights agnostic platform allowing betting operators complete flexibility and management of their customer experience.

“The BoscaSports technology has also been a great success for stadia and venue distribution as showcased by the transformation of UK racecourse Tote screens.

“I can already see some clear technology synergies from digital into retail across multiple sports not just racing, and how this will support international growth, with the product already due to launch in Italy with media system technologies broad network of shops.

“I will also look to bring my low latency streaming experience with Stats Perform and Phenix Real Time Solutions to bear in helping develop BoscaSports IPTV solution for retail and venues.”

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Issuing a trading update, Rank highlighted a disparity between its Grosvenor Casinos based outside of London and those within the capital city. The group noted that the like for like net gaming revenue at the casinos outside of London “is close to 2019 levels”. 

Meanwhile those situated within London had been affected by “the lack of international tourism, significantly reduced numbers of office workers in the city and the ongoing late night travel challenges for consumers”, which has led to a 38 per cent decrease in NGR.

On average, however, Grosvenor’s weekly NGR for the period totalled £5.5m, compared to Mecca’s £2.6m – both of which are down 17 per cent and 20 per cent on 2019’s figures respectively. 

While the group recognised that it is still very early days, trading at its Mecca venues has proved to be strongest in the venues where the company is trialling elements of a new proposition, which includes enhancements to the mainstage bingo game.

Average weekly net gaming revenue for the six weeks after the reopening of its venues was £8.6m on a like-for-like basis, marking a 19 per cent drop when compared to the same period in 2019.

Performance in Rank’s digital businesses in Q4 is expected to be at a level between that achieved in Q2 and Q3 of this financial year.

Rounding off the update, Rank highlighted that the UK first-tier tax tribunal ruled in its favour of its claim to be refunded VAT paid on slot machine income in the period from April 2006 to January 2013.

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50%

The UK gambling industry could be facing a 50% remote gaming duty tax, as new Chancellor Rachel Reeves searches for revenue-raising measures ahead of a tough first Autumn Budget.

The Guardian reported that one of the ideas being given serious consideration by the Treasury is major changes to the UK’s complex array of gambling taxes. Unlike many of the tax ideas that have been floated by government sources in recent weeks, this one has received little pushback from Whitehall officials, according to the newspaper. 

Plans for the increase reportedly stem from two influential think tanks, which according to the Guardian are also backed by one of the party’s most significant donors. 

A central theme of the Labour government’s initial 100 days in charge has been their commitment to plugging a £22bn gap that they claimed was left by the previous tenure. 

Online casino games are thought to be at the centre of potential tax hikes, as part of a campaign pushed by multimillionaire Labour donor, Derek Webb. 

Webb, who has elevated his stature as a Labour donor in recent years, was also key for the campaign to restrict maximum stakes on Fixed Odds Betting Terminals, a regulation that had a major impact on the retail gaming sector. 

The Institute for Public Policy Research (IPPR), which put forward the proposals, said as much as £2.9bn could be raised now, a figure growing to  £3.4bn by 2030 through the increasing of remote gaming duty to 50%, more than double the 21% it currently sits at. 

Additionally, another think tank backed by Webb, the Social Market Foundation, is reportedly looking at a proposal that would have a smaller impact on the industry, but still strengthen government finances. 

Despite it being seen as a diluted increase in taxes, the plans would still be likely to double taxes paid by gambling companies – another move that would likely lead to backlash from the sector. 

£417m

evoke revenue for the third quarter of 2024 was fuelled by a positive trajectory of gaming for the firm, which grew by 10%. Overall revenue increased by 3% to £417m. 

These figures caused the group to confirm expectations for the second half of 2024 are in line with the mid-term target of 5-9% year-over-year growth.

The quarter marks the first time that the operator has reported growth since the opening quarter of 2022, as it shifts focus from the UK.

It underlines a period of transformation for the operator under the leadership of CEO Per Widerström, with the operator reporting year-to-date revenues standing at £1.27bn (-1%).

Widerström commented: “I have now been in position for a year, and I am pleased that the turnaround of the business is working, with the first quarter of revenue growth since Q1 2022 and positive underlying trends. 

“We are achieving our plans to improve trading in the short-term, while simultaneously radically transforming the Group’s capabilities for the long-term.”

10%

Entain has stated that its performance in the third quarter of 2024 was “ahead of expectations”, as online net gaming revenue (NGR) has risen by up to 10% year-over-year.

However, newly appointed CEO Gavin Isaacs also apprised investors regarding the impact of a potential tax increase on the UK gambling market. Isaacs noted that such increases would “have a materially, detrimental impact on the economic contribution of wider industry”.

The gaming group reiterated its update from last month that its UK&I online operations have returned to YoY growth “sooner than expected”, adding that all key markets delivered growth during the quarter as well.

Following the “stronger than expected” Q3, Entain has upgraded its guidance for FY24 to expect online proforma NGR growth to be mid-single-digit positive on a constant currency basis, as the operator has “increased confidence for the balance of the year.”

Isaacs, who was confirmed as CEO of Entain at the beginning of September, added that the company is “already on a path of strategic and operational improvement”.

£197.4m

Rank Group has lauded a positive period of growth, as UK casino engagement fuelled a net gaming revenue (NGR) increase of 12% to £197.4m. 

For the group’s first quarter reporting period, ending 30 September 2024, Rank saw a 10% increase in land-based NGR, as Grosvenor saw a 13% increase in NGR to £95.3m. 

John O’Reilly, Chief Executive, commented: “We have continued to build on the momentum that we have generated over the past year and a half, and I am very pleased with our start to this financial year.” 

“Rank is now a stronger and more sustainable business, and we are looking forward to the land-based legislative reforms coming to fruition in 2025.”

There was also significant growth for the firm’s Mecca operations, as the NGR of venues grew by 4%, driven by a 5% increase in spend per visit with visits down 1%. 

Furthermore, for its two flagship brands, Mecca and Grosvenor overall digital NGR rose by 15%, as both brands enjoyed significant engagement. 

A$13.1m

The High Court of Australia has ordered SkyCity Entertainment Group to pay an additional A$13.1m (approx €8m) in casino duty to the Treasurer of South Australia over a dispute about loyalty points and gaming revenue.

The dispute was over the interpretation of the Casino Duty Agreement dated 27 October 1999, regarding the “treatment of loyalty points converted to gaming machine play for the purpose of calculating casino duty at the SkyCity Adelaide casino”.

In a statement, the operator said the High Court ruled against SkyCity, confirming the South Australian Court of Appeal’s interpretation of the agreement of “credits on gaming machines arising from the conversion of loyalty points, when played by customers, are to be included in gaming revenue for the purpose of calculating casino duty at the SkyCity Adelaide casino”.

As such, SkyCity Adelaide is now obliged to pay an additional A$10.3m casino duty in addition to A$2.8m “of additional casino duty payable as a consequence of that part of the Court of Appeal’s earlier judgement that was not appealed to the High Court”.

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For the group’s first quarter reporting period, ending 30 September 2024, Rank saw a 10% increase in land-based NGR, as Grosvenor saw a 13% increase in NGR to £95.3m. 

The group underlined that the boost was felt nationwide, in London and other venues, as overall spend per visit was elevated by 11%. 

John O’Reilly, Chief Executive, commented: “We have continued to build on the momentum that we have generated over the past year and a half, and I am very pleased with our start to this financial year. 

“With all business units performing well, the double-digit growth in our Grosvenor venues and UK digital business is particularly encouraging, with customers clearly enjoying the improvements we are making across our land-based estate and to our digital offering. Rank is now a stronger and more sustainable business, and we are looking forward to the land-based legislative reforms coming to fruition in 2025.”

There was also significant growth for the firm’s Mecca operations, as th NGR of venues grew by 4%, driven by a 5% increase in spend per visit with visits down 1%. 

Furthermore, for its two flagship brands, Mecca and Grosvenor overall digital NGR rose by 15%, as both brands enjoyed significant engagement. 

It continues a period of significant momentum for the group as it continues to navigate challenging UK headwinds to report profit. 

Two years ago, the firm’s overall annual NGR was reported at £622.3m, rising to £671.4M and then again to £734m in its most recent yearly results, underlining a period of strong trajectory for the group.  

Rank Group has continued to welcome white paper changes, with David Williams, Director of Public Affairs at Rank Group, previously emphasising that reform “cannot come a moment too soon”.

One of the key elements he pinpointed, was enabling casinos being able to offer sports betting and electronic payment methods – the implementation of these proposals must be timed correctly.

“At the top of the tree is the long-overdue change to gaming machine allocations. Casinos will also be able to offer sports betting, whilst electronic payment methods (rather than the current over-reliance on cash in our clubs) will help to give customers a more contemporary casino experience and one which is the norm almost everywhere else in the world.

“These improvements cannot come a moment too soon and it is precisely why the industry is urging the Government to keep its foot to the floor in delivering their response to the land-based consultation, laying the necessary statutory instruments and getting the legislation delivered in the first half of 2024. It all takes time, and whilst timing is everything, we are not blessed with time on our side.”

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The collaboration will see Rank Group’s various UK-facing brands, such as Mecca and Grosvenor, add the supplier’s roster of slot content to their online casino lobbies, providing Playson with growth through several channels. 

Paul McInnes, Sales Manager at Playson, stated: “We are thrilled to enjoy further growth in the UK with this major partnership and continue to offer our unparalleled array of slots to players across Europe.

“We are confident that with Rank Group’s significant presence in the market, combined with our stimulating and graphically driven slots, this latest partnership will deliver business growth for both organisations.”

Facilitated via Pariplay’s Fusion aggregation platform, players across Rank Group’s UK brands will benefit from the integration by gaining access to Playson’s slots, including Coin Strike: Hold and Win, Royal Coins 2: Hold and Win and Energy Coins: Hold and Win.

Nolan Frendo, Casino Games Manager at Rank Group, added: “Playson’s slots are in high demand across the UK and Europe, and we are delighted to integrate a selection of their games across Rank Group’s iconic brands.

“We are sure our players will enjoy discovering the Playson slots we now offer and look forward to discovering what the future holds for our partnership.”

Playson’s Deputy CEO, Vsevolod Lapin, recently spoke to CasinoBeats about the studio’s decision to introduce a new ‘GET MORE!’ slogan, stating an aim to reflect the firm’s “evolution, ambitions, and commitment to delivering business value to partners and players”. 

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$3.6bn

Flutter Entertainment declared total group revenue for Q2 of $3.6bn in its latest financial results, up 20% YoY and 22% in constant currency (Q2 2023: $3bn).

The operator also noted that the addition of MaxBet in Q1 added $52m to group revenue growth YoY, while average monthly players grew by 17% YoY to 14.3 million (2023: 12.2 million).

Excluding US operations, group revenue improved by 10% in comparison to the same period the previous year and by 11% in constant currency to $2.1bn (2023: $1.9bn).

Net income rose by 364% YoY to $297m (2023: $64m) with a margin of 8.2% (2023: 2.1%). This was also a rebound from a net loss of $177m reported by the operator in Q1.

Flutter attributed the growth to the aforementioned segment performances, as well as “after the non-cash impacts of a gain in the fair value of the Fox Option liability of $91m (Q2 2023: $53m loss) and a charge relating to the amortisation of acquired intangibles of $147m (Q2 2023: $195m)”.

The group’s adjusted EBITDA rose by 17% YoY and 19% in constant currency to $738m (2023: $633m) with a margin of 20.4% (2023: 21.1%), reflecting “strong revenue performance and ongoing adjusted EBITDA margin expansion in the US”.

Excluding US operations, adjusted EBITDA grew by 4% YoY and 6% in constant currency to $478m (2023: $461m), primarily driven by a “weaker racing market in Australia”.

Net cash provided by operating activities improved by 688% YoY to $323m (2023: $41m), while free cash flow rose as well in comparison to the same period last year to $171m (2023: negative $95m).

Flutter noted that the improvements were due to the continuation of a “good conversion of operational performance to cash” as well as a “lower cash flow during Q2 2023 driven by the large payout within player deposits relating to the record Sisal lottery jackpot, which was partly offset by a cash receipt on settlement of derivatives in the same period”.

£143m

Challenging UK retail headwinds were cited by evoke as the reason for its year on year decline in Q2 of 2024 as overall H1 losses increased to £143m (Q22023: £32m). 

Meanwhile, the organisation reported revenue of £862m for H2 as a whole, showing a decline of 2% year-over-year but up 4% sequentially on H2 2023. 

UK retail falling by 8% was largely cited as a key contributing factor behind the decline, as the firm admitted the retail gaming offering of William Hill had fallen behind competition. 

Furthermore, management expectations were met when it came to H1 Group revenues, which amounted to £862m (H1 2022: £881m). However, group accounts detailed double-digit adjusted EBITDA declines across all core business segments.

Group CEO, Per Widerström, stated: “The return on our marketing – primarily in UK Online – was lower than expected, leading to an online marketing ratio of 25%, which was higher than planned. We have put in place a new and experienced commercial leadership team and marketing leadership team, and we are transforming the way we plan and undertake our marketing.

“The corrective actions we have already taken give us even more confidence that our strategic approach is sound and that we will achieve sustainable success.”

21.4%

Mohegan reported its “highest quarterly net revenues after witnessing a 21.4% YoY increase in net revenues to $504.2m (Q3 2023: $415.4m). 

CFO Ari Glazer attributed the improvement primarily “to continued growth in Mohegan Digital and revenue from Mohegan INSPIRE”.

Income from operations dropped by 12.1% in comparison to the same period the previous year to $72.4m (2023: $82.4m). The operator also reported a net loss of $29.9m (2023: $50.6m net income) and an adjusted EBITDA of $104.7m, down 3.6% YoY (2023: $108.7m).

As of 30 June, Mohegan held cash and cash equivalents of $180.9m (30 September 2023: $217.3m).

Glazer commented: “Consolidated adjusted EBITDA of $104.7m decreased $3.9m compared with the prior-year period, primarily due to operating costs related to the opening of Mohegan INSPIRE and non-controlling interest adjustments at Niagara Resorts, offset by strong growth in our digital operations.’

£734m

Rank Group’s 2023/24 financial results revealed that it is delivering on its strategic plan as underlying net gaming revenue rose by 9% year-over-year to £734.4m (2022/23: £671.4m). 

Both venues and digital NGR improved year-over-year. Venue underlying NGR improved by 8% in comparison to the previous year to £508.4m (2022: £468.8m) while digital underlying NGR increased by 12% to £226m (2022: £202.6m). In Q4, NGR improved by 14% YoY.

As a result, underlying operating profit had a 131% uptick YoY to £46.5m (2022: £20.1m), which Rank says was “slightly ahead of analysts’ consensus” and reflected “significant operating leverage in the business”. Operating profit improved in H2 to £24.8m compared to £21.7m in H1.

Employment costs increased by 11% YoY too for the group due to “wage inflation and the reinstatement of colleague bonuses”. The firm expects this to continue to be a key headwind in 2024/25 and rise by a further 7%.

Net free cash flow stood at £26.6m (2022: £17.9m loss) and net cash pre-IFRS 16 was £20.9m (2022: £5.9m debt). Following investments in venues and proprietary technology, total capital expenditure was £46.7m, while the group expects the figure to be around £60m for 2024/25.

1,000

Ongoing strikes at Evolution’s Georgia offices have caused the igaming supplier to respond by laying off 1,000 employees. 

“This regretful decision was not taken lightly,” Evolution said when announcing the redundancies via its Facebook page. 

“It is a direct consequence of the union’s unlawful actions and its negative impact on Evolution’s operations in Georgia, and the damage it has caused on Evolution customers’ view of Georgia.

“The recent illegal actions initiated by one of the local unions have hindered Evolution’s ability to operate in Georgia and has hurt Evolution’s customers, many of which now no longer wish to operate their tables from Georgia,” Evolution’s statement read.

Evolution referred to the impact strike action has had on the company’s relationship with clients as “permanent damage”, specifically naming the strikers’ illegal blockade as a reason for the permanent workforce reduction. 

In a reassessment of its presence in Georgia’s capital, Evolution will move “most of its customer-specific tables to its other studios worldwide”, with the dismantling and removal of its clients’ tables having already begun.

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With the revenue increases in digital and venues, the group highlighted that it is “well placed for the planned legislative reforms for land-based bingo and casinos when they arrive” with further revenue growth opportunities.

Growth across Rank

For the last 12 months, ending 30 June 2024, Rank stated that it is delivering against its strategic plan with growth across all businesses, as underlying net gaming revenue rose by 9% year-over-year to £734.4m (2022/23: £671.4m). 

Both venues and digital NGR improved year-over-year. Venue underlying NGR improved by 8% in comparison to the previous year to £508.4m (2022: £468.8m) while digital underlying NGR increased by 12% to £226m (2022: £202.6m). In Q4, NGR improved by 14% YoY.

As a result, underlying operating profit had a 131% uptick YoY to £46.5m (2022: £20.1m), which Rank says was “slightly ahead of analysts’ consensus” and reflected “significant operating leverage in the business”. Operating profit improved in H2 to £24.8m compared to £21.7m in H1.

Employment costs increased by 11% YoY too for the group due to “wage inflation and the reinstatement of colleague bonuses”. The firm expects this to continue to be a key headwind in 2024/25 and rise by a further 7%.

Rank noted that its strong balance sheet has enabled the continued investment in strategic transformation priorities and the resumption of dividends. 

The group noted that its balance sheet position was supported by £120m in debt facilities, “comprising £30m Term Loan to October 2026 and £90m Revolving Credit Facility to January 2027”. The total undrawn RCF was £78.5m.

Net free cash flow stood at £26.6m (2022: £17.9m loss) and net cash pre-IFRS 16 was £20.9m (2022: £5.9m debt). Following investments in venues and proprietary technology, total capital expenditure was £46.7m, while the group expects the figure to be around £60m for 2024/25.

Rank added that it is making “good progress” with its ESG programme, with its “net zero plan well underway, key technology developments delivered in the year to further enhance protections for our customers, record colleague engagement scores recorded in the period and a continued strong focus” in its role in local communities.

CEO John O’Reilly commented: “This has been a year of strong financial, operational and strategic progress for Rank. We are continuing to rebuild profitability following the impact of lockdowns and the material inflationary pressures experienced in recent years.

“Trading continues to improve due to ongoing investment in our people, our products and the facilities within our venues businesses and the continued development of the proprietary technology which is driving the growth of our digital business.”

Venue brand performance

Per venue brand, Grosvenor NGR improved by 9% YoY to £331.3m (2022: £305m) across its 51 venues, with London rising by 10% to £108.1m (2022: £98m) and the rest of the UK increasing by 8% to £223.2m (2022: £207m). 

Customer visits and active customers rose by 9% and 2% respectively, but spend per visit fell by 1%. Gaming product revenue across the board grew, with electronic roulette rising by 11%, gaming machines up by 9% and table games increasing by 9% as well.

Operating profit improved by 42% to £23.7m (2022: £16.7m) with total profit of £16.5m (2022: £35.4m loss). £6.4m was invested into new products and the operator stated that further investment could occur to broaden the variety of machines available following land-based legislative reforms. Meanwhile, £7.6m was invested into property facilities.

Rank noted that the growth reflects the recovery from lockdowns, the slow return of international customers and the tightening of affordability restrictions in recent years.

Mecca NGR grew by 8% YoY to £138.6m (2022: £127.9m), reflecting the “considerable rationalisation of the estate” that has taken place following the impact of the pandemic on customer numbers and visit frequency. 

These factors led to casino closures, with the number of Mecca venues dropping from 82 in 2018/19 to 52 at the end of 2023/24. One more venue is expected to close in 2024/25, completing the rationalisation process.

Rank claims that the rationalisation process has created a “stronger and more competitive estate with higher liquidity, namely higher visits and therefore more attractive prize boards”.

Customer visits and spend per visit rose by 2% and 6% respectively. Rank added that 44% of its 187,000 new customers were under 35, which it says demonstrates the bingo’s strong appeal.

Main stage bingo NGR rose by 11% YoY while gaming machine revenues improved by 9%. Rank stated that further growth opportunities could occur in gaming machines once land-based legislative reforms are implemented, which will allow up to 50% of machines to be category B3 machines. Interval bingo increased by 7%, while food and beverage sales were up 6%.

Operating profit improved to £3.9m (2022: £5.6m loss), but Mecca venues had a total loss of £1.7m (2022: £74.1m).

Rank’s Spanish gaming brand, Enracha, saw its NGR increase across its nine venues by 7% YoY to £38.5m (2022: £35.9m) with customer visits and spend per visit undergoing a 6% and 1% uptick respectively.

Bingo revenues rose by 7% YoY while gaming machines revenue increased by 7%. The operator added that the business is “in a strong position” entering 2024/25.

O’Reilly stated: “We are well-positioned to take advantage of the much needed land-based reforms which will help to further modernise our casino and bingo propositions to better meet the expectations of today’s customers and we look forward to the Government confirming the timetable for the required secondary legislation.”

Digital downsizing

Across digital, UK operations rose by 11% YoY following the delivery of key technology developments including a new single content management system, operational efficiencies, front-end developments speed to market and faster webpage loading.

A new in-house developed app was launched in Q4 for its Grosvenor brand, while a new in-house app for its Mecca brand will be launched in 2024/25.

Mecca, Grosvenor and Yo Bingo/Enracha saw NGR improve YoY, but other proprietary brands, non-proprietary brands and Passion Gaming NGR fell. 

Mecca NGR rose by 20% YoY to £86.9m (2022: £72.5m), Grosvenor improved by 21% to £69m (2022: £57.1m) and Yo/Enracha grew by 16% to £27.6m (2022: £23.8m), ahead of the Yo brand’s launch in Portugal during 2024/25.

Other proprietary brands NGR fell by 1% to £23.2m (2022: £23.4m), non-proprietary brands dropped by 21% to £15.5m (2022: £19.6m) and Indian rummy platform Passion Gaming declined by 39% to £3.8m (2022: £6.2m).

Rank noted that following its decision to exit the multi-brand (non-proprietary brands) business during the year, the sale should be completed in the coming months. The operator has also sold its 51% share in Passion Gaming to its founders in June 2024.

Operating profit improved by 79% to £23.4m (2022: £13.1m) while total profit rose to £16.2m (2022: £4.1m).

“With some important developments within our proprietary technology now in place, we are increasingly delivering a seamless and tailored cross-channel experience for our customers, leveraging our key area of competitive advantage,” stated O’Reilly.

Outlook

Looking ahead, Rank noted that it has already continued momentum into 2024/25, with NGR growing by 10% in the first six weeks. The group also intends to declare a 2024/25 interim dividend alongside its half-year results in January 2025.

In addition, Rank highlighted continued employment cost pressures but noted that there are opportunities to drive revenue growth across the business, while its strong cash position will allow for further investment in its strategic priorities.

The group stated as well that it is “well placed for the planned legislative reforms for land-based bingo and casinos when they arrive”.

O’Reilly concluded: “We have started the new financial year as we finished the previous one, with good momentum across all businesses. With inflation receding, disposable incomes improving, investment continuing to be made in the customer proposition and a strong pipeline of growth initiatives underway, we are confident in the future prospects of the Group.

“It would not be possible to deliver this improved performance without our excellent colleagues who continue to excite, entertain and protect their customers, support their local communities and contribute fully to the progress we are continuing to make.”

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The DCMS published the new regulations in response to a consultation regarding measures relating to the land-based gambling sector from the April 2023 gambling white paper.

After reviewing the consultation responses, the DCMS intends to increase the number of gaming machines allowed at certain land-based casinos to 80 and more than 20 for smaller casinos; allow a 2:1 ratio of Category B to Category C and D gaming machines in arcades and bingo halls; allow direct debit card payments on gaming machines; introduce an age limit of 18 and over for the use of ‘cash-out’ Category D slot-style gaming machines; and increase the maximum chargeable premises licence fees.

The next step for these regulations will be for them to be presented before Parliament.

BGC – ‘much needed reforms’

In response to the DCMS’ proposals, BGC CEO Michael Dugher said that the council welcomes the changes, stating that cashless payments, additional gaming machines and sports betting inside casinos will help the industry meet the needs of customers.

Dugher noted: “Casinos are a vital pillar of the UK’s leisure, hospitality and tourism sector and we welcome the Government’s consultation response which is positive progress on the modest, long-overdue but mission critical modernisation reforms needed for the land-based casino sector to compete and thrive.

“Casinos currently employ more than 10,000 people, contribute £300m annually in tax and generate an estimated £800m a year to the UK economy.

“Much needed reforms on cashless payments, gaming machine allocations and allowing all casinos to offer sports betting will strengthen the sector to better meet the needs and expectations of their customers.”

Rank – ‘modernisations cannot come a moment too soon’

Rank Group also expressed its approval of the proposals, with CEO John O’Reilly noting that the modernisations will help its venues.

He stated: “Today’s Government response to the land-based consultation is good news for Rank. Providing the legislation is on the statute books by recess in late July, we are looking forward to improving the customer proposition in our venues with a roadmap of investments and improvements in the months and years that follow. 

“The legislative modernisations cannot come a moment too soon, so we are pleased with the progress contained in today’s announcement.”

Dugher has also requested for the government to provide guidance on when these new regulations will come into effect for the land-based gambling industry.

The BGC CEO said: “While we welcome these proposals, attention must now shift to the timeline for implementing policy changes and we urge the Government to urgently set out a clear timeline for progressing the relevant legislation to make them reality for our members.

“Too many casinos have sadly closed in recent years as successive administrations failed to deliver the changes we needed to protect jobs and growth. The BGC and our fantastic casino members have campaigned for these new measures for years to allow businesses to modernise, innovate and grow, and we strongly welcome the Government’s approach to ensure casinos are better placed to make that happen.”

Bacta – cashless play by 2025

Bacta also welcomed the DCMS proposals, with President John Bollom noting that the organisation will work with the UK Gambling Commission to introduce cashless play for next year.

Bollom stated: “This is a good day. The Minister is to be congratulated for creating the conditions which will allow the land-based sector to go forward. The progress achieved is a testament to the hard work of Bacta and our members in making the case for reform. 

“I would like to thank all the Bacta members who have helped in this campaign which has taken four years. 

“We hope that Parliament will give a smooth passage to these proposals, so they are passed into law before the General Election. Bacta will actively engage with Gambling Commission officials to ensure the introduction of cashless play in 2025.”

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114

In a major setback to operators in the Netherlands, Dutch MPs have received numerous motions to outlaw ‘high risk’ online casino games.

Further intensifying the framework around gambling in the Netherlands, there was also a vote to stop the marketing of online gambling. 

The pair of motions were pushed by Socialist Party MP Michiel van Nispen, as part of the Kamer’s ongoing revision of the Remote Gambling Act (KOA Act), the legislative framework adopted in October 2021 to regulate the Netherlands’ online gambling marketplace.

As a result, 114 motions were proposed by MPs to amend KOA market laws, standards and protections of which 14 were voted on this afternoon.

Van Nispen’s first motion to impose a ‘total ban on online gambling advertising’ secured 70 out of 150 MP votes, failing to gain an outright majority but approved due to ministerial absences.

The vote reverses previous stances on the matter having rejected in February a motion by CDA MP Derk Boswijk “to investigate a total ban on gambling advertisements”.

As such, the vote sees the Kamer favour imposing a blanket ban on all gambling advertisements as KOA amendments applied in July 2023 enforced a ban on gambling advertising on the ‘public platforms’ of TV, radio, print and outdoor media.

Addressing MPs, Van Nispen stated: “The KOA market is sick through and through. Every day that these companies continue their bad practices, more people become addicted to gambling.

“As far as we are concerned, it is the end of the story for gambling companies without morals. A ban on online gambling advertisements is another step forward towards a country without bad gambling companies.”

£431.2m

888 declared a group revenue for Q1 of £431.2m in its latest trading update, which is slightly higher than the £420m to £430m guidance range set out in the operator’s FY23 results last month.

However, in comparison to the same period last year, group revenue is down three per cent (Q1 2023: £445.5m).

Revenue was up two per cent in comparison to Q4 2023, but the group expects “revenues to return to year-on-year growth from Q2 2024 onwards”, with FY2024 revenue growth expected to be “consistent with the mid-term target of five to nine per cent annual growth”.

Per vertical, gaming revenue improved slightly by one per cent to £272.2m (2023: £269.8m), while betting revenue dropped by 10 per cent year-over-year to £159m (2023: £175.7m). Average monthly player actives rose by six per cent YoY to 1.8 million (2023: 1.7 million).

Sportsbook stakes fell by five per cent YoY to £1.35bn (2023: £1.43bn) with a net revenue margin of 11.8 per cent (2023: 12.3 per cent).

CEO Per Widerström commented: “I am pleased to report that Q1 2024 revenue was slightly ahead of our guidance, with strong player volumes converting into improved revenue run rates. 

“Having lapped various regulatory and compliance changes during the quarter, and with increased marketing investment supported by an exciting product pipeline, we remain confident in a return to growth from Q2 2024.”

70%

iGaming Ontario has stated that FY2023-24 gaming revenue and wagers figures have both improved by over 70 per cent in comparison to the previous year.

Casino operations across the Canadian province have contributed heavily to the improvements, as wagers and revenue in this segment have grown by almost 90 per cent year-over-year.

For the period ending March 31, 2024, iGO declared that 47 operators and 77 websites collected total wagers (excluding promotional) of CAD$17.8bn in Q4, with FY2023-24 wagers at $63bn, a 78 per cent YoY increase over 2022-23 operations.

Q4 total gaming revenue was $690m, ending at $2.4bn for the full fiscal year, a 72 per cent uptick YoY. This figure includes 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.

The quarter’s wagers and revenue figures are also an improvement on the $17.2bn and $658m figures reported earlier this year for Q3.

“With $63bn in wagering and $2.4bn in gaming revenue, the second year of Ontario’s igaming market is more than 70 per cent bigger than the first,” commented Martha Otton, Executive Director of iGaming Ontario.

“As the market matures into its third year, I look forward to building on this foundation of success with operators and other partners as they invest in Ontario so that Ontarians can continue to play with confidence.”

6%

Entain has stated that it is making “good progress” in improving operational performance despite declines in the UK & Ireland.

Within its first quarter trading update, the FTSE 100 company noted that its performance was in line with expectations with “organic revenue growth”. 

Total group bet gaming revenue, which includes its 50 per cent share of BetMGM, improved by six per cent year-over-year, but down three per cent on a proforma basis.

Excluding US operations, group NGR rose by four per cent YoY, but declined by three per cent on a proforma basis. Gaming NGR fell by two per cent, sports NGR dropped by five per cent, while sports wagers decreased by five per cent.

Online operations improved by six per cent following an 11 per cent uptick in active customers, but on a proforma basis, these figures dropped by two per cent. Retail operations decreased by one per cent and five per cent on a proforma basis respectively.

“Our Q1 performance was in line with our expectations, with growth reflecting both strong performances in many of our markets as well as known challenges in others,” stated Stella David, Interim CEO of Entain.

“We are particularly encouraged by the level of customer engagement in the US following a successful Super Bowl and March Madness, as well as our return to growth in Brazil following the changes we implemented.”

A$50,000

The Victorian Gambling and Casino Control Commission in Australia has issued a A$50,000 fine to BlueBet for gambling advertising breaches.

The VGCCC found BlueBet guilty of 43 charges of displaying gambling advertising on or above a public road, which is an offence under the Gambling Regulation Act 2003.  

The commission conducted an investigation into the operator following a complaint from a member of the public. BlueBet was charged in August 2023.

During a two-week period in August and September 2022, BlueBet’s gambling advertising was present on digital billboards in five different locations.

The VGCCC stated that Magistrate Greg Thomas “found it difficult to accept BlueBet’s defence that they didn’t know they were breaching the law, given the prime position of the billboards to target males aged 15-54 years old”. 

The commission also said that Magistrate Thomas did not record a conviction, but claimed that if the breaches were accidental, it showed “a high degree of negligence” by BlueBet.   

In addition, Magistrate Thomas noted that he would have fined BlueBet $70,000 and recorded a conviction, but took into account the operator’s guilty plea, cooperation with the VGCCC and the changes implemented to prevent these breaches from being repeated. 

Commenting on the verdict, VGCCC CEO, Annette Kimmitt AM, said: “Gambling advertising has no place on public roads where it is readily visible to children and other vulnerable groups. These places are especially difficult to avoid as part of day-to-day activities.

“This decision sends a clear message to wagering providers that flout these protections for our community.” 

£182.3

Rank Group has reported an uptick in net gaming revenue for its third quarter, with venues and digital channels improving and trading in line with expectations.

For the period ending March 31, 2024, Rank noted that Q3 NGR rose by six per cent year-over-year to £182.3m. Year to date, NGR has improved by eight per cent YoY to £544.9m.

Mecca venues underwent the biggest NGR increase in Q3, rising by 12 per cent YoY to £37.3m. YTD, NGR for the segment stands at £104.5m, a 10 per cent improvement.

Rank credits the uptick during the quarter to a five per cent growth in customer visits and a seven per cent rise in spend per visit, “particularly benefiting from strong trading over the Mother’s Day and Easter weekends”.

Grosvenor venues generated the most NGR during the measuring period, rising by three per cent YoY to £80m. YTD, NGR has improved by eight per cent to £247.5m.

The operator noted that NGR for Grosvenor venues was driven by a five per cent increase in visitors, but since the quarter is a “seasonally quieter period”, average weekly NGR of £6.2m was up two per cent YoY but down two per cent in comparison to the previous quarter.

Enracha venues NGR improved by six per cent YoY to £10m. YTD, NGR rose by nine per cent to £163.4m.

Digital operations NGR grew by six per cent to £55m. YTD, NGR has increased by eight per cent to £544.9m. Rank noted that digital operations in the UK improved by four per cent, while Spanish operations grew by 20 per cent.

John O’Reilly, Chief Executive of Rank, commented: “We continue to make good progress across both our venues and online businesses, with Q3 trading very much in line with the Board’s expectations.

“Performance continues to improve, and we have the very important land-based reforms from the Government’s White Paper to look forward to, which we hope to start implementing in the coming months.”

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For the period ending March 31, 2024, Rank noted that Q3 NGR rose by six per cent year-over-year to £182.3m. Year to date, NGR has improved by eight per cent YoY to £544.9m.

Mecca venues underwent the biggest NGR increase in Q3, rising by 12 per cent YoY to £37.3m. YTD, NGR for the segment stands at £104.5m, a 10 per cent improvement.

Rank credits the uptick during the quarter to a five per cent growth in customer visits and a seven per cent rise in spend per visit, “particularly benefiting from strong trading over the Mother’s Day and Easter weekends”.

Grosvenor venues generated the most NGR during the measuring period, rising by three per cent YoY to £80m. YTD, NGR has improved by eight per cent to £247.5m.

The operator noted that NGR for Grosvenor venues was driven by a five per cent increase in visitors, but since the quarter is a “seasonally quieter period”, average weekly NGR of £6.2m was up two per cent YoY but down two per cent in comparison to the previous quarter.

Enracha venues NGR improved by six per cent YoY to £10m. YTD, NGR rose by nine per cent to £163.4m.

Digital operations NGR grew by six per cent to £55m. YTD, NGR has increased by eight per cent to £544.9m. Rank noted that digital operations in the UK improved by four per cent, while Spanish operations grew by 20 per cent.

Rank has also agreed to sell its holding in the Indian online rummy business Passion Gaming for a “nominal consideration”, a sale which is expected to be completed in the coming weeks. 

John O’Reilly, Chief Executive of Rank, commented: “We continue to make good progress across both our venues and online businesses, with Q3 trading very much in line with the Board’s expectations.

“Performance continues to improve, and we have the very important land-based reforms from the Government’s White Paper to look forward to, which we hope to start implementing in the coming months.”

For the UK’s digital operations, Mecca NGR improved by 21 per cent, but Grosvenor NGR only rose by one per cent due to a “weaker gaming margin with some big customer wins”. 

Rank noted that “planned reductions in marketing investment” led to an NGR reduction of 13 per cent across other UK digital brands, with “improvements in the return on investment delivered in March and continuing into Q4”. 

Both Mecca and Grosvenor also launched new CMS to improve “operational efficiency and speed to market for customer proposition enhancements”. Meanwhile, in Spain, the Yo brands “continued to deliver strong NGR growth”.

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