Featured News
The Mohegan Tribal Gaming Authority, trading as Mohegan Gaming & Entertainment, has reported a significant increase in its net revenues for the first quarter of 2024. The company’s financial performance was bolstered by the newly inaugurated Mohegan Inspire Entertainment Resort, a foreigner-only casino complex located in Incheon, South Korea.
For the three months ending March 31, 2024, the company reported net revenues of US$461.7 million, marking a 13.8 percent increase compared to the same period in the previous year. Despite this, the company’s adjusted earnings before interest, taxation, depreciation, and amortisation (EBITDA) fell by 17.8 percent year-on-year to just under US$84.0 million. The net loss for the first quarter of 2024 was nearly US$46.1 million, a significant increase from the US$9.6 million loss reported a year earlier.
The company attributes the increase in net revenues primarily to the continued growth of Mohegan Digital and the revenue generated by Mohegan Inspire. Ari Glazer, who assumed the position of CFO on May 1, 2024, stated that the decrease in consolidated adjusted EBITDA was mainly due to operating costs associated with the opening of Mohegan Inspire and non-controlling interest adjustments at Niagara Resorts, a property the company operates in Canada.
Mohegan Inspire, which opened its non-gaming facilities on November 30, followed by its foreigner-only casino on 3 February had an official launch for the property on March 5. The resort boasts 1,275 hotel rooms, 11 restaurants, and a 15,000-seat arena.
Catalyst for revenue growthIn the first quarter of 2024, the Incheon casino resort recorded net revenues of US$35.9 million. However, the property’s adjusted EBITDA were negative at US$24.1 million, primarily due to opening expenses related to labour and marketing costs.
Joe Hasson, the newly appointed interim chief operating officer at Mohegan, stated during a conference call with analysts that Mohegan Inspire was still in its ramp-up phase. Despite this, he expressed satisfaction with the trends observed in April and May. He also noted that the company was encouraged by the ramp at Mohegan Inspire, which was occurring in both the casino and non-gaming segments of the business.
Hasson added that the company sees breakeven EBITDA on the near horizon on a month-to-month basis. He acknowledged that during the initial ramp, the company had to spend on labour and marketing, but he sees breakeven approaching in the immediate future.
The parent company announced that new amenities at Mohegan Inspire, including an innovative food court concept, a digital interactive art attraction, and an amusement arcade, are expected to open in the second quarter of 2024, with a few others following in the third quarter of the year.
Representatives from PAGCOR met with SiGMA Asia’s Managing Director, Neil Shih last week to finalise their schedule ahead of the SiGMA Asia event taking place this June 2nd to 6th.
In addition to a keynote delivered by Chairman and CEO, Alejandro H. Tengco during the official conference opening ceremony on the 4th, PAGCOR will take part in a panel discussion focusing on gaming regulations, the IGL License and the current state of the iGaming landscape in the Philippines. Tengco will also take part in a tour of the expo floor, where he will meet with some of the 250+ exhibitors taking part.
The conference and expo will be held at the SMX Convention Centre in Manila.
The chairman is confirmed to attend the prestigious SiGMA Asia Awards evening – a gala event which takes place on the 3rd at the Forbes Ballroom in the Conrad Hotel.
The Philippine Amusement and Gaming Corporation (PAGCOR) recently unveiled an impressive first-quarter financial report for 2024, showcasing a remarkable surge in income to the tune of PHP25.24 billion (€408.5 million).
This staggering 42.57 percent increase over the same period last year has sparked satisfaction within the corridors of PAGCOR’s leadership.
Chairman and CEO Alejandro Tengco expressed delight at the firm’s robust performance, stating, “We are happy to announce that PAGCOR is able to sustain our growth trajectory in the first quarter of 2024, and this should help position us into achieving another record-breaking year”.
The chairman is also featured in an exclusive interview in the latest issue of SiGMA Magazine – collect your copy at SiGMA Asia.
SiGMA Asia 2024The SIGMA Asia summit will take place from the 2nd to 6th of June at the SMX Convention Centre – Manila’s largest expo venue. SiGMA will connect its vast network in the West with Asian suppliers, operators, and affiliates, opening up new opportunities for business, and providing a space for premium networking for an expected turnout of 20,000 delegates.
SiGMA Asia’s double decker expo floor features a diversified portfolio of B2B and B2C brands, as well as a number of land-based exhibitors – making it one of the biggest gaming shows in Asia. The event will also focus on the emerging technologies, bringing cutting-edge tech, such as AI and Blockchain to the floor.
Two full days of conference provide a valuable platform for knowledge sharing and debate. A guestlist of VIP speakers will address topics ranging from the regulatory landscape to the integration of the emerging technologies, while a series of competitive startup pitches help bring exciting new companies and ideas to light.
With official endorsements from PAGCOR and CEZA supporting the event, delegates can expect an exclusive line-up of guests this June, including 3,000 operators and over 350 top speakers.
The International Betting Integrity Association (IBIA) and Professional Footballers’ Association Canada (PFA Canada) have announced a partnership to create a bespoke two-year sports integrity education programme for players and staff in the Canadian Premier League (CPL). This initiative, supported by a CA$300,000 educational fund from regulated betting operators bet365, Betway, and FanDuel, aims to tackle potential sports-betting related match-fixing. The programme, set to begin in May 2024, will educate approximately 300 individuals about the risks of match-fixing and the importance of maintaining the integrity of the sport. It includes both in-person training and online resources, covering topics such as rules, sanctions, and the use of technology in sports integrity monitoring. A repeat training is scheduled for 2025 to ensure newcomers in the league also receive this critical education.
The IBIA has a track record of delivering sports integrity education to athletes in Europe and is bringing its expertise to the Canadian market with the support of member operators. High-profile representatives from these betting operators have expressed their commitment to athlete education as a means to safeguard sports integrity. The program is expected to serve as a model for protecting sport integrity that could be extended to other sports beyond soccer in Canada. Moreover, IBIA’s global sports integrity programme offers a comprehensive approach against match-fixing, including data sharing with sports regulators and law enforcement to investigate and sanction corrupt activities.
Khalid Ali, CEO of IBIA, said: “IBIA’s members take their role – as responsible regulated betting operators – in protecting the integrity of sporting competition and of betting markets seriously. Alongside balanced, efficient and evidenced-based regulation, protecting soccer players, staff and officials from being targeted by criminals is an essential first step to stamping-out sports-betting related match-fixing and fraud.”
IBIA, a non-profit association established in 2005, represents over 60% of private sports betting operators in Ontario and is recognised as a leading voice in betting integrity. The association provides a Monitoring & Alert Network to detect suspicious betting activities and has partnerships with major sports organisations for information sharing. Its recent report emphasised Ontario’s progress as a regulated gambling jurisdiction, with high rates of onshore channelisation for sports betting expected. In Q1 2024, IBIA’s alerts contributed to the sanctioning of 21 clubs, players, and officials, indicating the impact of its efforts. PFA Canada, established in 2020, has been the collective bargaining representative for CPL players since December 2022, advocating for players’ interests and negotiating collective agreements with the league. The organisation is also a candidate member of FIFPRO, the global players’ association.
Find out more about the latest updates and trends in the industry, from latest regulatory news to most recent innovations at the upcoming SiGMA Asia Summit happening in Manila in June.Brightstar Capital Partners, a private equity firm specializing in industrial, manufacturing, and service businesses, has entered into a definitive agreement to acquire PlayAGS, Incorporated (NYSE: AGS), a global supplier of high-performing slot, table, and interactive products. This acquisition, valued at approximately $1.1 billion, was announced on May 9, 2024, from Las Vegas, NV, and New York.
The Board of Directors of AGS has given unanimous approval for the agreement and recommended the Company’s stockholders to do the same. As per the agreement, AGS shareholders will receive $12.50 per share in cash, representing a 41 percent premium to the Company’s volume-weighted average share price over the last 90 days and a 40 percent premium to AGS’ closing price on 8 May 2024
AGS, a global company, is known for creating a diverse mix of entertaining gaming experiences for every kind of player. Its high-performing slot products, expansive table products portfolio, and highly rated online casino content make it a valuable partner for casinos worldwide.
Key Takeaways | Milestones |
✅ Brightstar’s Acquisition | Brightstar acquires PlayAGS, Inc for $1.1 billion Unanimous approval from Board |
✅ Shareholder Benefit | AGS shareholders will receive premium of $12.50 per share in cash, |
✅ Future Growth | Acquisition will enable investments in R&D and innovative approach to game development. |
David Lopez, CEO & President of AGS, expressed his pleasure at reaching the agreement, stating that it provides compelling, certain cash value for their stockholders. He believes that the partnership with Brightstar opens an exciting new chapter for AGS in its mission to provide exceptional gaming solutions for its operator partners. With Brightstar’s resources and strategic guidance, AGS is expected to be well-positioned to make targeted investments in R&D, top talent, operations, and industry-leading innovation, accelerating its global footprint.
Andrew Weinberg, Founder & CEO of Brightstar, looks forward to working with David and the AGS team to capitalize on opportunities by taking a long-term approach to creating value. He believes that AGS’s strong pipeline of new products and its innovative approach to game development provide significant potential for continued growth.
Roger Bulloch, Partner at Brightstar, has been impressed by AGS’ award-winning products, differentiated culture, and outstanding reputation in the expanding industry. He trusts that partnering with AGS and executing on their shared vision can accelerate the Company’s ability to create even greater value for its customers and players around the world.
Road aheadThe proposed transaction, expected to close in the second half of 2025, is subject to customary closing conditions, including the receipt of regulatory approvals and approval by a majority of AGS stockholders. Upon completion of the transaction, AGS will become a privately held company, and shares of AGS common stock will no longer be listed on any public market.
In light of the proposed transaction, AGS has cancelled its previously announced conference call to discuss its first quarter 2024 financial results. Additionally, AGS will not be issuing a quarterly earnings release. The Company expects to file its 10-Q for the quarter ended 31 March, 2024, with the SEC.
This strategic acquisition marks a new chapter in the global gaming industry, with Brightstar Capital Partners and AGS joining forces to create a more vibrant and diverse gaming experience for players worldwide.