Strategy – Page 6 – Bookielink

October 17, 2023

G2E 2023: Like Covid never happened

The dog days of the pandemic feel long in the past and the gaming industry was in a bullish mood at G2E 2023, Buck Wargo writes. Despite potential economic headwinds, international expansion and high hopes for igaming mean many left Las Vegas with the sense the industry is in good health.

It was like the pandemic never happened.

The Global Gaming Expo returned to Las Vegas last week, upbeat and optimistic about igaming’s future.

The industry faces headwinds in the coming months from the US economy and a potential Culinary Union strike in Las Vegas, but attendees at the show remained positive.

G2E attracted more than 25,000 people over its four days, just shy of 2019’s record 27,000 turnout. Attendance continued to bounce back after 2020’s cancelled event and a 2021 edition that drew only 13,000 delegates.

A greater return of international visitors and exhibitors – more than 125 countries were represented – helped boost attendance numbers. There were 368 exhibitors, up from 350 a y..

October 4, 2023

Paddy Power closes 21 shops in Ireland

Flutter UK and Ireland has closed 21 Paddy Power shops in the Republic of Ireland, affecting 78 members of staff.

The list of affected shops includes Dominick Street Galway, Kilkenny, Rathdrum and Templemore. In a statement, Flutter said the decision to close consisted of two main facets – lease expiries and early terminations. It added the decision came after a review into its “high street estate”.

Paddy Power is among Flutter’s biggest brands in the UK and Ireland, alongside Betfair and Sky Bet.

Flutter stated that the closures leave 230 active Paddy Power shops across the Republic of Ireland.

Flutter added that the “majority” of the 78 members of staff would be offered redeployment across Paddy Power’s remaining shops. However, it admitted that the closures would lead to a “small number” of job losses.

“As with all businesses in the retail sector, we regularly review our estate to ensure we are operating efficiently and meeting the evolving needs of our customers,” said David N..

October 4, 2023

Fanatics completes PointsBet US purchase in New York and Wyoming

Fanatics Betting and Gaming (FBG) has edged closer to taking full control of PointsBet US after completing the acquisition of its operations in New York and Wyoming.

PointsBet New York LLC has been transferred to FBG. This follows the satisfaction of certain conditions in the state including approval from the New York State Gaming Commission.

Meanwhile, ownership of PointsBet Wyoming LLC has also transferred to the FBG division of sports retail giant Fanatics.

Transfer of additional US state operations to FBG will take place as approvals are obtained in each state. PointsBet says subsequent completion in this market is tracking as planned.

The double completion come after PointsBet last month also secured approval for acquiring PointsBet US in eight other states. These comprise New Jersey, Pennsylvania, Colorado, Iowa, Kansas, Maryland, Virginia and West Virginia.

PointsBet will continue to operate in Illinois, Indiana, Louisiana, Michigan and Ohio until FBG closes on selected sta..

October 2, 2023

FDJ completes acquisition of ZEturf

French national lottery operator Française des Jeux (FDJ) has finalised its acquisition of online horse racing betting site ZEturf Group.

The announcement completes a process that began in November last year when FDJ struck the acquisition deal. The transaction places ZEturf’s value at €175.0m (£151.6m/$185.0m).

Completion comes after the French Competition Authority (l’Autorité de la Concurrence) gave its approval to the deal last month.

Founded in 2001, ZEturf employs approximately 100 people and generated over €50.0m in revenue in 2022. Alongside online horse race betting, it offers internet sports betting via the ZEbet brand.

“The acquisition of ZEturf marks a new chapter for FDJ,” CEO and chairwoman of FDJ, Stéphane Pallez, said. “It strengthens our position in the French market for online games open to competition.

“Following the launch of our poker business, our entry into the world of online horse-race betting rounds out our diversified online range and bolsters FDJ Group..

September 27, 2023

Flutter acquires majority stake in Serbia’s MaxBet for €141m

Flutter Entertainment has acquired an initial 51% stake in Serbian omnichannel sports betting and gaming operator for €141.0m (£122.6m/$149.0m) in cash.

The deal, Flutter says, provides the group with access to the regulated Serbian market and supports its ongoing expansion plans, including within the wider Balkans region.

The agreement also states that Flutter has the opportunity to acquire the remaining 49% in MaxBet in 2029.

Ranked among the leading operators in Serbia with an approximate 20% online share, MaxBet employs more than 2,400 staff. In the 12 months to June 2023, it posted €145.0m in regulated revenue and €32.0m worth of adjusted EBITDA.

The transaction remains subject to customary regulatory clearances but is due to close in the first quarter of 2024.

“I am excited to announce the addition of MaxBet to the Flutter portfolio,” Flutter chief executive Peter Jackson said. “This acquisition continues our progress against the strategic priorities we have set for our inte..

September 25, 2023

Entain online revenue fails to meet expectations in Q3

Safer gambling measures, slower growth in key markets and sporting results hindered Entain's Q3 performance, although the group remains on track to hit EBITDA guidance.

In a trading update, Entain says online net gaming revenue (NGR) has been mixed across the group in recent weeks. While it still expects to achieve growth during Q3, Entain says that, on aggregate, this will be softer than anticipated.

Third quarter online NGR growth is now expected to rise by a high single-digit percent. However, Entain also says it will likely decline by a high single digit percent on a pro forma basis.

Reasons for this, Entain says, include adverse sports results impacting sports margins during September and slower growth than expected in Australia and Italy. It also noted the impact of safer gambling measures across the group and ongoing regulatory headwinds persisting longer than expected, particularly in the UK.

However, Entain also noted drivers of growth within its online business. The..

September 19, 2023

French competition authority clears FDJ for ZeTurf acquisition

France’s national competition regulator, l'Autorité de la Concurrence, has cleared the country’s national lottery operator Française des Jeux (FDJ) to acquire online horse racing betting site ZeTurf Group.

However, FDJ will have to change several aspects of its operations to address the regulator’s concerns about risks to competition.

In particular, FDJ has committed to separating its monopoly and competitive gaming operations. It also has said it will allow any French licensed operator to access the common pool of horse racing bets it manages.

L’Autorité outlines competition concerns

Despite both FDJ and ZeTurf offering online sports betting, their low combined market share meant this alone did not concern the regulator.

Instead, l’Autorité said problems could come from FDJ’s monopoly on lottery games and retail sports betting.

It argued that, because of its exclusive rights to offer these segments, the new combined business may have been tempted to restrict the competition..

September 14, 2023

Genius shares down 10% as Apax sells $121m in stock

A subsidiary of one of Genius Sports' major shareholders and former owner, Apax Partners LLP, will sell 20,000,000 shares in the business.

The underwriter of the sell-off, Goldman Sachs & Co, will have the option of purchasing an additional 3,000,000 shares worth $18,120,000. The option will end after a 30-day period.

The stock to be sold off is worth – as of close of trading on 13 September – $120.8m (£97.1m/€113.1m).

The total shares on the table represent just over 10% of all of Genius’ 216,627,899 shares.

Following the announcement of the stock sell-off, Genius’ share price has fallen 10.2% to $5.4 per share since trading opened. The supplier will not receive any of the proceeds from the sale.

Former owner opts to sell stock

Apax is the provider’s former owner, having purchased the company from Three Hills Capital Partners in July 2018.

Funds advised by Apax kept hold of the business for over two years prior to Genius going public on the New York Stock Exchange via an ..

September 8, 2023

LeoVegas breaks ground with BetMGM UK

The news that BetMGM would be launching in the UK gave its gambling market a much-needed shake. But it was the fact that LeoVegas, not Entain, would be MGM’s launch partner that really set the conversation alight. Gustaf Hagman, CEO of LeoVegas, believes his company is more than ready to take on the challenge.

To say the journey to the launch of BetMGM UK has been complex would be an understatement.

To the uninitiated, an established US-facing brand – a joint venture of two industry giants – has managed to implant itself into the UK market.

But peeling back the layers reveals a different story. BetMGM’s US offering is a joint venture shared between MGM and Entain. But the launch of BetMGM UK doesn’t include Entain at all.

Instead LeoVegas, which was acquired by MGM Resorts last year for $604m, will power BetMGM’s new UK platform. This means that BetMGM UK will be competing directly against Entain’s UK brands, which include the likes of Ladbrokes, Coral and Gala.

Despite the enormi..

September 7, 2023

Net profit up 56.4% at STS in H1

Net profit at Polish sports betting operator STS Holding grew 56.4% to PLN97m (£18.1m/€21.1m/$22.6m) in the first half of 2023, a period in which it agreed to be acquired by Entain CEE for £750.0m.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the half-year rose by 34.1% to PLN157m.

The news that Entain CEE – Entain’s Central and Eastern Europe (CEE) venture – would acquire Poland’s leading sportsbook operator came in June, after Mateusz Juroszek, chief executive of STS, and his father Zbigniew, entered into an agreement to accept Entain CEE’s acquisition offer.

Entain CEE paid PLN24.80 per STS share. This put the business at an equity value of £750m and an enterprise value of an estimated £690m. The deal closed on 24 August, after STS shareholders – holding 155,591,656 in STS shares – backed the deal.

On the half-year, Mateusz Juroszek said STS focused on optimising its operations during the six months, adding that he projects increased player ..

September 1, 2023

Fanatics completes PointsBet deal in eight US states

Fanatics Betting and Gaming (FBG) has closed on the first eight states in its previously announced acquisition of PointsBet’s US business.

Following regulatory approvals, the deal has now completed in major markets such as New Jersey and Pennsylvania. FBG has also completed in Colorado, Iowa, Kansas, Maryland, Virginia and West Virginia.

PointsBet confirmed that the Fanatics subsidiary has now paid the initial instalment of $175m of the $225m headline purchase price. The price was agreed in June 2023.

From today, customers in each of the eight states will see PointsBet rebranded to “PointsBet, a Fanatics Experience”. The rebrand will complete in Indiana and Illinois in the coming months.

PointsBet USA will continue to operate in Illinois, Indiana, Louisiana, Michigan, New York and Ohio. This will be until Fanatics is able to close on selected states individually.

“We are excited about what we are building at Fanatics Betting and Gaming and this acquisition accelerates our plans,” ..

September 1, 2023

Ontario: The state of play

More than a year on from the regulation of the Ontario gaming sector, gambling businesses have each adapted to the market in their own way. But how can operators stand out from the crowd in North America’s most competitive market?

With every gold rush comes the prospectors.

In the 16 months following the regulation of the gaming sector in Ontario, gambling operators of all shapes and sizes have thrown the dice to get a slice of the biggest and most dynamic market in North America.

Those involved range from former grey market players trying to make the regulated transition, the big European operators, media brands which have grown a betting wing and land-based companies trying to get in on the action – plus everything in between.

The landscape

Ontario has become an incredibly competitive market, with iGaming Ontario recording 46 companies operating 71 brands as of Q1 2023.

However, one trend to note is its diversity. This is especially striking when compared to the US which, butt..

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Tag: Strategy