The joint venture entity overseeing the development of Japan's inaugural integrated resort (IR) in Osaka, known as , has successfully secured a substantial loan agreement with a consortium of banks. The €3.1 billion loan agreement represents a significant step forward for the ambitious project. 

Osaka IR Corporation, a partnership between US-based casino giant MGM Resorts International and local partner ORIX Corporation, will collaborate with MUFG Bank Ltd and Mitsui Banking Corporation on what has been hailed as Japan's largest co-financing arrangement by a group of banks. Additionally, two companies associated with Hankyu Hanshin Holdings have also committed to investment in the project. 

Under an implementation agreement sanctioned by Japan's central government, the initial investment in the Osaka IR is projected to reach around JPY1.27 trillion (€7.62 billion). The resort's anticipated is slated for 2030, marking a transformative milestone for Japan's gaming and hospitality industry. 

Preparatory land works on the Yumeshima Island site commenced in December, with measures to prevent liquefaction and strengthen the foundation underway. These efforts, costing JPY25.5 billion (€161 million), are expected to continue throughout the upcoming Osaka Expo in 2025, with completion scheduled by April 2027. 

MGM's commitment extends beyond the integrated resort project, with the company sponsoring the United States Pavilion at the 2025 World Expo in Osaka. Groundbreaking ceremonies for the pavilion were recently held, showcasing MGM's dedication to fostering international partnerships and cultural exchange. 

Upon completion in 2030, MGM's Osaka integrated resort is poised to become a premier destination, featuring Japan's sole legal casino, 2,500 hotel rooms spanning three renowned brands, 730,000 square feet of MICE (Meetings, Incentives, Conferences, and Exhibitions) space, and tourism facilities showcasing the vibrant culture and attractions of Osaka and Japan at large. 

Upcoming SiGMA event: SiGMA Asia 2024, 3 – 5 June. Find all the details .

David Einhorn, co-founder of Greenlight Capital and a seasoned hedge fund investor, has strategically invested in Penn Entertainment amidst market volatility. This significant investment, made in the first quarter of this year, is a part of Einhorn’s ongoing efforts to diversify his portfolio.

Einhorn’s investment in Penn Entertainment has sparked curiosity about the future governance of such gambling giants. The trend of activist hedge funds influencing casino operators is reshaping the industry, and Einhorn’s recent move aligns with this shift. Given his style of investment history, insiders say it’s plausible that Einhorn may take an active role in Penn’s governance. As these developments unfold, the casino sector is keenly observing the potential implications. The question that lingers is whether the future of the gambling industry will be dictated by the strategic moves of hedge funds.

In a similar vein, led by former Goldman Sachs banker Parag Vora, also took a proactive stance in Penn Entertainment. With an 18.5 percent stake in the company, HG Vora also requested the appointment of directors to Penn’s board, signalling its intent to influence the company’s decision-making. This move came following concerns over Penn Entertainment’s undervalued stock, which experienced a 16 percent decline throughout 2023. Vora expressed dissatisfaction with the company’s board structure and strategic direction, calling for immediate changes.. The intervention led to a nearly immediate 4.8 percent surge in the share price. This move ignited discussions about the

Over the first quarter of this year, Einhorn has been building a significant stake in Penn Entertainment. Despite the stock’s value declining from $22.69 to $17.44 per share, largely due to investor skepticism following Penn’s challenging acquisition of Barstool Sports, Einhorn remains optimistic. He sees potential in sports betting and believes that if Penn executes it correctly, it could significantly boost the company’s shares.

In the fourth quarter, geopolitical risks led Einhorn to pause his new stock acquisitions, a move he referred to as a “buyer’s strike”. Despite this, his hedge fund managed to yield a 4.9 percent return in the first quarter of 2024, contrasting with the S&P 500’s 10.6 percent gain during the same period.

Einhorn’s investment prowess extends beyond Penn Entertainment. He revealed a first-quarter stake in HP, anticipating an AI-driven personal computer adoption cycle. He also ventured into the biotech sector, taking new stakes in Roivant Sciences and the Class A shares of Liberty Global (LBTYA).

Einhorn’s strategies reflect his adaptability and foresight in a volatile market. His faith in Penn Entertainment’s potential in sports betting, coupled with his investments in tech and biotech sectors, underscores his vision for future market trends. As the gambling market, particularly sports betting, continues to evolve, it will be intriguing to see how Einhorn’s investments unfold. Will the future of the gambling industry be dictated by the strategic moves of hedge funds like Greenlight Capital? The answer remains to be seen.

, a casino operator in Cambodia and Vietnam, has reported a significant uptick in earnings during the first quarter of 2024. The company's quarterly report indicates a steady increase in operational performance, with earnings nearly reaching pre-COVID levels. 

Donaco highlights that visitation numbers have stabilized, reaching levels consistent with the previous quarter. This stabilization reflects the gradual return of tourism in and Vietnam to pre-pandemic levels, signalling positive momentum for the company. 

The group achieved strong financial results, reporting a group net revenue of AUD12.66 million (€7.7 million) and EBITDA of AUD8.39 million (€5 million), marking a remarkable 66 percent increase over the last quarter. The quarterly report underscores the robust performance of Donaco's key operations. 

Donaco's DNA Star Vegas operation, situated on the Cambodia-Thailand border, recorded substantial growth, with net revenue reaching AUD8.82 million (€5.3 million) and property-level EBITDA of AUD6.63 million (€4 million). The implementation of a membership loyalty program in January 2024 contributed to the operation's success. 

Similarly, Donaco's Vietnam operation, Aristo International Hotel (Aristo), experienced revenue and EBITDA growth driven by stabilized tourism, particularly from China. Aristo reported net revenue of AUD3.84 million (€5.3 million), reflecting a 6.4% increase from the previous quarter. 

The company maintains a strong financial position, ending the period with a robust cash position of AUD28.99 million (€17.6 million), marking a 15.4% increase from the previous quarter. Donaco emphasizes its focus on stringent financial management to support sustainable growth. 

In its quarterly report, Donaco's Non-Executive Chairman, Porntat Amatavivadhana, expressed confidence in the company's outlook, citing continuous improvement across all segments. Additionally, the company anticipates significant growth post-2025, with the development of the new Sapa airport in Lao Cai expected to drive a substantial increase in visitation. 

Upcoming SiGMA event: SiGMA Asia 2024, 3 – 5 June. Find all the details .

The sports betting compliance industry has experienced some M&A activity, with US Integrity and Odds On Compliance merging to form a new entity known as Integrity Compliance 360 (IC360). The merger was announced by sports tech venture capital fund, SeventySix Capital, earlier this week. By combining its resources and expertise, IC360 will enhance its offer with a comprehensive suite of services.

IC360 will offer a combination of integrity monitoring services, compliance advising, and products to serve clients from both companies. This includes t and international clients in Europe and Brazil. One of the services offered by IC360 recently flagged illicit betting activity With its broader client base IC360 is on its way to becoming a leading player in the industry.

Despite the merger, it will be business as usual for clients of US Integrity and Odds On Compliance. The original products of each firm will continue without interruption, now unified under the IC360 brand. This includes the Integrity Monitoring dashboard, PlayBook AI, and ProhiBet.

How are things going to change with this merger? For example, the collaboration on ProhiBet, a tool that monitors sports betting compliance for athletes and team personnel, is most definitely a sign of more innovative solutions to come that will shape the industry standards, particularly around transparency, accountability and ethical standards.

The merger of US Integrity and Odds On Compliance was initially announced last October, following the collaboration on ProhiBet, a tool that monitors sports betting compliance for athletes and other team personnel.

IC360 aims to be a one-stop shop of regulatory technology solutions and compliance expertise for the rapidly evolving sports betting and gaming industry. Wayne Kimmel, the managing partner of SeventySix Capital, stated that the merger is a significant event in the evolution of the sports, media, and entertainment asset class. He explained that IC360’s commitment to ensuring transparency, accountability, and ethical practices across the global sports betting and gaming industry, which is worth hundreds of billions of dollars,

The leadership of IC360 will comprise former executives from US Integrity and Odds On Compliance. Matt Holt, (photo above on left), the former CEO of US Integrity, will lead IC360 as CEO, while Eric Frank, (photo above on right) the former CEO of Odds On Compliance, will serve as President. Scott Sadin, (photo above centre), who previously served as COO of US Integrity, will take over as COO of IC360. Kimmel, the original investor in both companies, will serve on IC360’s board of directors.

Caesars Entertainment (NASDAQ: CZR), the listed Casino giant is expected to post positive results in its quarterly earnings on April 30, 2024. US-based equity research analysts advise to hold or buy the stock ahead of the results call. The company stated that the re-branding of its online casino has been successful, while sale of non-core assets is also on the agenda.

Market views 

According to MarketBeat.com, Caesars Entertainment presently has an average rating of "Moderate Buy" and an average target price of $57.73. Five US-based equities research analysts have rated the stock with a hold rating and seven have given Caesars a buy rating ahead of the company’s results on April 30, 2024. Last August CEO Tom Reeg said that the operator’s 2023 re-branding of its online casino to the Caesars Palace name has been a success and it even topped its own internal revenue estimates. Reeg added that 50% year-over-year growth is the expectation, with February revenue standing at $40 million. 

Mergers and Acquisitions 

In addition to internal successes, Caesars Entertainment, extended its iGaming market operations two months ago by buying Michigan iGaming business, contributing to further positive results. Last year Caesar’s also tried to sell Flamingo Casino and hotel, in order to pay down some of the group's debt and maximise its value. The Flamingo's casino is an icon for the Strip in Vegas having opened on December 26, 1946, and thus being the oldest continuously operating resort there.

Always a backdrop for drama in Vegas, the hotel is infamous as Siegel its first owner was killed in June 1947 by an unknown shooter in Vegas. This started a chain of ownership changes over the years. Caesars still owns the hotel and casino however as it didn’t get the price it wanted for the iconic venue. The location is amazing as it’s linked to the Linq promenade but Flamingo needs major updating, and buyers just didn’t offer enough. Real estate experts said this could change as the value of property in Vegas has increased. Caesars CEO Thomas Reeg also didn’t rule out selling one of its Las Vegas Strip resort casinos during its first-quarter earnings call. However, he said nothing was imminent unless they get approached with a good offer.

Caesars Entertainment, Inc. was founded in 1937 and is based in Reno, Nevada. It owns, leases, or manages properties in 18 states; operates and conducts retail and online sports wagering across 31 jurisdictions in North America and operates iGaming in five jurisdictions in North America.

Even though 888 Holdings, a listed online betting-and-gaming company surpassed 2024 revenue expectations, according to its announced last week, the company may still need to implement changes to achieve growth by year end.

The Q1 report states the revenue during this period amounted to £431 million, down 3.2% on-year but ahead of the £420 -£430 million it had predicted; while 888 sportsbook stakes were down 5%, from £1.43 billion ($1.78 billion) to £1.35 billion.

Increasing the sports betting promotions could be part of the new development strategy. A number of competitors offer daily tournaments, other free-to-play offers, and cash prizes, which 888sport currently does not offer as many. At the moment, 888sport offers six sports betting promotions, while its competitor Ladbrokes has 19, and Paddy Power offers 10.

Online sports betting stakes in the UK and Ireland dropped by 9% to £630.6 million, and sportsbook retail operations fell 4% to £393.5 million during Q1. It appears that more customer promotions could improve customer retention, market sources say.

The acquisition of William Hill did not improve 888 retail numbers. Despite it being an iconic brand with 1,400 William Hill betting shops across the UK, 888 retail numbers were still 4% down to £393.5 million in Q1. William Hill has great promotions, but these don’t make their way over to 888sport, outsiders commented.

Other high street brands, such as Ladbrokes and Coral have also been facing challenges as retail sports betting has slowed down, while online betting is growing. Online casinos have increased a lot in 2024, and the choice of online casinos is overwhelming. To grow revenues, profits, 888 also hopes to enhance its branding and “One Company” approach with the name change. The new name - Evoke is yet to be voted on by the shareholders at the company AGM scheduled for 13 May 2024. Per Widerstrom, the CEO of the group, has led the name change as part of a broader strategic transformation to prioritise the core markets and to reset its operating model with a focus on automation and AI, and to cut costs by removing duplication.
With focus being on core markets in Europe include Denmark, Spain, Italy and the UK, will the re-brand and new strategy be enough to get back its £4.48 share price from 2021?

Svenska Spel, a major player in the gaming industry, recently disclosed its Q1 2024 financial results, which painted a picture of mixed fortunes. The company’s net revenue for the quarter was SEK1.96 billion ($0.18 billion), marking a marginal 1 percent decrease compared to the same period last year. This dip in revenue has been attributed to the restructuring efforts within the Casino Cosmopol and Vegas business area.

A detailed examination of the revenue reveals that the net gaming revenue for the Casino Cosmopol and Vegas business area plummeted by 32 percent to SEK 169 million. This downturn was primarily due to the extensive restructuring of Casino Cosmopol, the closure of Casino Cosmopol branches in Malmo and Gothenburg, and reduced operating hours at the remaining Stockholm casino.

The sports and casino business area also experienced a revenue decline of 3 percent to SEK 549 million. This decrease is linked to less favourable outcomes for the pool games.

Despite these challenges, , registering a 6 percent growth compared to the same period last year. The online segment generated a total of SEK 1.09bn, accounting for 56 percent of the group’s total revenue for the quarter.

The Lottery division, also known as Tur, had a successful quarter with net gaming revenue rising by 6 percent to SEK1.24 billion. This growth was fuelled by the Eurojackpot and the sustained sales growth of the game Triss.

However, the operating profit for the first quarter took a significant hit, plunging by 49 percent to SEK 310 million. Svenska Spel attributed this decline to several costs incurred during the quarter, including the liquidation of the casinos in Malmo and Gothenburg, restructuring costs associated with the group’s review, and a penalty fee.

In a noteworthy development, Svenska Spel announced the appointment of Gustav Georgson as its new Head of Community Relations and Public Affairs at the beginning of the month. This move is expected to bolster the company’s community engagement and public relations efforts moving forward.

This analysis provides a comprehensive overview of Svenska Spel’s Q1 2024 performance, highlighting the challenges and successes encountered by the company during this period. As the gaming industry continues to evolve, Svenska Spel’s ability to adapt and innovate will be crucial in maintaining its competitive edge.

Svenska Spel stands among several key players, each with their unique offerings and strategies. Let’s delve into a brief comparison. Firstly, we have Goals, a company that has carved out a niche for itself in the domain of football games. Their focus on this specific area sets them apart in the gaming industry. The company offers a variety of gaming solutions, including casino and live casino games, as well as sports gaming solutions. Then there’s Flax Innovations, a B2B Sports Tech company that has chosen to specialize in interactive betting solutions. Its focus on this particular aspect of the industry differentiates them from their competitors.

The gaming industry is a dynamic and competitive field, with each of these competitors bringing unique strategies to the table. When comparing them, it’s important to consider factors such as market share, revenue growth, product offerings, customer base, and technological advancements.

It’s also worth noting that the performance of Svenska Spel and its competitors have been influenced by regulatory changes, technological innovations, market trends, and consumer preferences.

The operator of Adelaide Casino, , may encounter substantially heightened penalties, potentially reaching up to AUD75 million (€45.6 million) if found guilty of misconduct. This significant increase, proposed as part of an overhaul of South Australia's (SA) gambling laws, aims to hold the state's sole casino license holder accountable and align penalties with community expectations. 

ABC News quoted Australia’s Consumer and Business Affairs Minister Andrea Michaels as emphasizing the necessity to ensure fines serve as a genuine deterrent rather than merely a cost of business. The proposed legislation, to be introduced to parliament, seeks to not only raise penalties for criminal offences but also cover past and future conduct, enabling retrospective fines. 

The proposed changes follow the Australian Transaction Reports and Analysis Centre’s (AUSTRAC) allegations of systemic non-compliance against , including failure to carry out due diligence on numerous customers. SkyCity's decision to increase reserves for potential civil penalties from AUD45 million (€27.3 million) to $73 million (€44.4 million) underscores the seriousness of the matter. 

Acting Liquor and Gambling Commissioner Fraser Stroud highlighted the imperative of updating South Australia's legislation, citing penalties issued in other states exceeding AUD100 million (€60.8 million). The proposed amendments aim to enhance accountability and ensure appropriate regulatory oversight of casino operations. 

SA independent MP Frank Pangallo welcomed the proposed penalty changes, advocating for stringent regulation of SkyCity's operations. Opposition leader David Speirs acknowledged the need to modernize casino laws and expresses tentative support for the government's proposal, pending further review of the details. 

Consumer Affairs Minister Michaels affirms the government's commitment to consulting parliament on the proposed changes once the bill is introduced. The outcome of this legislative initiative will likely shape the future regulatory landscape for Adelaide's casino industry. 

Upcoming SiGMA event: SiGMA Asia 2024, 3 – 5 June. Find all the details .

The UK National Lottery has been a significant contributor to good causes, surpassing the £500 million mark twice in the past five quarters, marking an 18.7 percent sequential increase. This achievement has been made possible through the continuous efforts of from Camelot in 2023.

Allwyn’s takeover was marked by a strong unaudited annual performance, generating double the revenue (€7.87 billion) compared to the previous corresponding period. This success has set the stage for the next phase of the National Lottery’s evolution.

In a bid to modernize the National Lottery, Allwyn has partnered with technology supplier MADIC UK. Together, they are introducing a new Electronic Point of Sale (EPOS) software. This innovative solution will enable retailers to sell lottery products at checkouts, seamlessly integrated with MADIC UK’s Point-of-Sale solution.

Alex Green, Director of Channel Operations at Allwyn, expressed his delight at the partnership with MADIC UK. He emphasized Allwyn’s commitment to investing in the retail channel and future in-store technology. The introduction of innovative ways to purchase National Lottery draw games aims to make them accessible to a broader audience, both new and existing players. This aligns with Allwyn’s primary goal of raising more funds for National Lottery-funded projects.

The collaboration is expected to boost the sales of National Lottery draw-based games, including Lotto, Set For Life, EuroMillions, Thunderball, and HotPicks. A prototype of the offering will be showcased at the National Convenience Show 2024, scheduled to take place between April 29 and May 1 in Birmingham.

Emma Baillie, Solutions Management Director at MADIC UK, highlighted the integration with The National Lottery and evoPOS as a significant milestone in their product’s evolution. This integration has been a long-standing wish of their customers since the product’s launch. The partnership with Allwyn to offer this solution to all their customers marks a significant step forward in their journey.

When Allwyn took over the UK National Lottery in February 2023, it marked a significant turning point for lottery sales. The initial phase was marked by a robust unaudited annual performance, with revenues doubling to €7.87bn compared to the previous period. This promising start signaled a positive impact on lottery sales.

However, a subsequent The company attributed this downturn to unfavorable cycles of EuroMillions jackpots and limited product and channel developments towards the end of the previous license.

In response to this challenge, Allwyn shifted its focus towards modernizing the National Lottery. A strategic partnership was formed with technology supplier MADIC UK to introduce a new Electronic Point of Sale (EPOS) software. This software enables retailers to sell lottery products at checkouts, fully integrated with MADIC UK’s Point-of-Sale solution. The goal is to make National Lottery draw games more accessible to a wider audience, thereby increasing sales.

While Allwyn’s takeover initially led to a surge in lottery sales, a subsequent decline was observed. However, through strategic partnerships and the introduction of innovative technology, Allwyn is taking proactive steps to boost lottery sales and continue contributing to good causes. It’s important to note that these impacts are based on the information available at the time of this response and may evolve as Allwyn continues to implement its strategies.

Kindred’s ambitious campaign, ‘Journey towards Zero’, aimed at eradicating revenue from high-risk gamblers, appears to have stumbled in its latest update. The first quarter of 2024 sa slight increase from the 3.1 percent reported in Q4 2023.

The ‘Journey towards Zero’ initiative was launched in 2021 in response to a surge in problematic gambling behaviour, exacerbated by the COVID-19 pandemic. The campaign’s goal was to become the first operator to achieve 0 percent revenue from harmful gambling by 2023, a commitment publicly made by then-CEO of Kindred, Henrik Tjärnström (pictured above). Despite Tjärnström stepping down in May of the same year, the objective remains a priority for the company.

Throughout 2023, Kindred’s revenue from high-risk players remained relatively stable, oscillating between 3.3 percent and 3.1 percent. However, the company failed to meet its target of zero revenue from harmful gambling by the end of the year. Despite this setback, The company reported that 87.1 percent of players demonstrated improved behaviour following interventions, a slight decrease from Q4 2023’s 87.4 percent.

Alexander Westrell, Director of Communications at Kindred Group, acknowledged the fluctuating revenue from high-risk players but emphasized the company’s ongoing commitment to fostering a more sustainable gambling experience. He noted the steady decline in harmful gambling data since 2020 and the positive impact of interventions on healthier gambling behaviour.

Westrell also highlighted the importance of open dialogue, citing the recent Sustainable Gambling Conference in London, where individuals shared their personal experiences with gambling. He expressed optimism about the role of advancing technology in detecting and intervening in harmful gambling behaviour.

Westrell called for increased engagement from regulators and industry experts to ensure a more sustainable future for the gambling industry. Despite the challenges, Kindred remains committed to its ‘Journey towards Zero’, underscoring the need for continuous effort to achieve sustainable progression.

Kindred’s transparency in reporting its progress has been appreciated by many. They have been open about their successes and setbacks, contributing to a fact-based dialogue about harmful gambling. However, some critics have labelled the initiative as a PR stunt. In response, Kindred has reiterated its commitment to the cause and highlighted the extensive work being done to ensure data reliability.