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As Australia continues its attempts to regulate the acute issues leading to problem gambling within its borders, further responsible gaming failures continue to come to light.
Now undoubtedly a major policy issue, problem gambling and gambling addiction in turn is having a heavy impact on the Oceanic commonwealth.
Nearly 80 percent of Australians partake in gambling activities with the most at-risk demographic being males between the ages of 18 and 35.
What’s more worrying, however, is that almost half of all Australians who participate in gambling activities are at risk of experiencing some kind of gambling-related harm.
Efforts to curb problem gamblingIn lieu of this, Australia is undergoing a heavy regulatory restructuring in order to address these increasingly out-of-control issues.
Subsequent to a parliamentary inquiry specifically aimed at curbing harms from online gaming, 31 recommendations have been made to encourage responsible gaming and mitigate gambling harm.
These have most notably included a self-exclusion register known as BetStop and a ban on credit cards for gambling purposes, previously only applicable at land-based venues, extended to all online gambling among any other forms.
These efforts are yet to be properly reviewed due to how early in their inauguration they are. Aside from this, however, several issues remain unattended to as of yet.
Fines for underage gamblingSubsequent to the implementation of the newest measures from the parliamentary inquiry, Gambling operator Tabcorp was accused of failing to prevent a 16-year-old from gambling at several of their venues in nearly 31 instances.
Aside from Tabcorp’s clear negligence in adequately monitoring their venues for underage gambling or establishing effective age verification methods, this displays just how deep gambling penetrates into the culture of the nation.
This is perhaps an issue as significantly perpetrated by advertisers as it by operators themselves.
CEO of New South Wales operator Wicked Games, Darryl Manning, gave an exclusive statement to SiGMA group when he explained that this sort of oversight would not occur in the currently outlawed online casinos of Australia.
He suggests that player protections are far more robust online than they are in land-based operations:
“If the pundits wanted to get real about problem gambling, why not allow online slots. After all, the tools that are currently being developed to protect the online player are far more robust, and far more capable of identifying a player’s means or curtailing certain behaviour, than those applied to land-based Gaming.”
Considering these improved protections, problem gambling could be curbed by offering a more diverse marketplace with a new influx of far safer products in the online space.
Gambling advertisingWhen focusing on gambling advertising, the various states comprising Australia are in agreement and are keen to enact a ban or at least a restriction on gambling advertising.
South Australia
In South Australia there is already a gambling ban in place for television that includes a blackout between 4 pm and 7.30 pm on Monday and Friday with a similar blackout in effect for radio between 6 am and 8.30 am on the same days.
This is still not believed by many to be a strong enough band with South Australia submitting in favour of a total prohibition on gambling advertising on television, streaming services and social media.
Shane Rattenbury, the Australian Capital Territory’s attorney general, has also stated that he wishes to see his jurisdiction follow suit.
Queensland
In Queensland, the government has made several statements noting that gambling promotion is “obtrusively delivered through television broadcasts” touting its own support for a ban on gambling inducement.
Although gambling advertising is already restricted in the territory, PG programmes between the family-friendly hours of 7 pm and 8.30 pm are unfortunately “saturated with gambling advertising”.
A national issue?This issue has been a point of contention for quite some time now. The states previously mentioned among some others are in favour of a national approach issued throughout the commonwealth.
However, some other states, most notably New South Wales, have submitted in support of the current system as the regulatory bodies there believe this is a matter for states and territories separately.
These states have stated that this preference stems from the competitive tension this creates, allowing states to adopt the most optimal policies based on the variety of data provided by their peers.
Operator stanceAlthough most operators in Australia would disagree with gambling advertising being subject to a complete prohibition, there is some agreement in that effective restrictions should be implemented with scrutiny placed on the ethical values of advertisers.
Manning also weighed in on this particular issue, expressing how he believes that the onus should be on advertisers to dissuade any players at risk.
In his statement, he suggested:
Join us in Malta between the 13 – 17 November for SiGMA Europe 2023“One way would be to allot a portion of the advertising budget to this audience. Maybe the last third of a video ad or the bottom third of a pictorial could be dedicated to seriously addressing the issue. Not just a 5-second Speed talker.”
SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.
In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”
Find all the details here.
A Mexican gaming draft decree that would outlaw all gaming machines and casino-style games in Mexico is facing stiff opposition from Mexican operators, union groups, and local and international associations.
On September 7, SEGOB unexpectedly released a draft regulation which aims to reform and repeal various provisions of the 2004 regulatory decree. The draft regulation aims to eliminate slot machines and reduce the duration of casino permits. The reforms included in the draft will revoke the articles of the 2004 regulatory decree which establish permits for casinos to operate slot machines. The decree will also reduce the validity of casino permits from 25 years to 15 years.
Additionally, the proposed draft would expressly outlaw any games involving slot machines, dice, cards, or roulette wheels, effectively destroying Mexico's 400+ de facto casinos once their operators' licenses run out and the new laws are fully implemented.
Feedback from stakeholdersOver 140 individual comments on the draft legislation have been received after it was posted on CONAMER website (the National Commission on Regulatory Improvement), with the vast majority voicing vehement opposition to the draft that poses a serious threat to the industry's survival. The proposed changes would not decrease the demand for casino gaming, various Mexican gambling operators have cautioned in their feedback. The changes would merely result in illegal, unregulated practices, beyond control or verification.
Representatives of union groups that represent employees in the services industry warned in their feedback that the draft puts in serious jeopardy the estimated 50,000 direct and 120,000 indirect jobs provided by Mexico's licensed gambling halls.
Comments on the draft have come from Las Vegas, where several international gaming operators that cater to the Mexican market are situated. Professor Bo Bernhard of the University of Nevada, Las Vegas and gaming lawyer Frank Schreck advised the Mexican government to consider the good practices in the United States, Japan, and other nations in assessing the advantages of a well-regulated casino business and the risks and pitfalls of prohibition.
In Mexico, gaming is regulated by the Ministry of Interior (Secretaría de Gobernación or SEGOB), through its Gambling and Raffles Bureau (Dirección General de Juegos y Sorteos). The National Commission on Regulatory Improvement (CONAMER), within the Secretariat of Economy, is the agency responsible for streamlining federal and sub-national regulation.
Join us in Malta between the 13 - 17 November for SiGMA Europe 2023SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.
In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”
Find all the details here.
MGM Resorts International and Caesars Entertainment, two of the hugest names in the Las Vegas casino industry, have found themselves embroiled in multiple federal class action lawsuits after experiencing cyberattacks that reportedly compromised customer data.
Court documents reveal that four lawsuits were initiated last Thursday, with two targeting each of the casino giants. Another lawsuit was filed against Caesars on Friday, and a sixth similar case was brought against both defendants in a New Jersey district court on 18 September.
Confidentiality compromised
At the heart of all these legal actions are data breaches. Plaintiffs assert that "unauthorized individuals" managed to infiltrate the resorts' network systems, gaining access to the Personal Identifiable Information (PII) of resort customers.
One of the complaints, filed by Emily Kirwan against MGM Resorts, disclosed that the cyberattackers claimed to have exfiltrated a substantial six terabytes of data. This data reportedly includes the PII of the plaintiff and other class members, all taken from the defendant's network.
The filing also pointed out that the defendant was aware of its vulnerability to such attacks, as its IT vendor, Okta, had warned of a "consistent pattern of social engineering attacks against IT service desk personnel.
Class members claim security measures not adequate
According to the lawsuits, the injuries suffered by the plaintiff and class members were directly linked to the defendant's failure to establish or maintain adequate data security measures. Once PII is stolen, the fraudulent use of that information can lead to lasting damage for the victims, extending over several years.
The lawsuits also referenced the potential financial value of the stolen data, with criminals reportedly willing to pay significant sums for such information. The plaintiffs cited invasion of privacy and theft of personal information as real injuries. Furthermore, they expressed that the data breach had caused them "fear, anxiety, and stress," further exacerbated by the defendant's failure to provide comprehensive details about the data breach.
Companies were allegedly negligent
All six lawsuits against MGM Resorts and Caesars Entertainment allege negligence and breach of implied contract. The five complaints filed in Nevada additionally include counts of unjust enrichment. The plaintiffs are seeking monetary relief in various forms, including actual damages, statutory damages, punitive damages, and restitution.
As of now, MGM Resorts International has refrained from providing any comments regarding these legal filings. The situation continues to unfold as both companies navigate the legal challenges stemming from these cyberattacks.
Operation risk framwork
In the case if large enterprises such as these casino flagship establishments, establishing a robust operational risk framework is paramount for safeguarding against the growing menace of cyberattacks. This framework plays a pivotal role in the broader spectrum of enterprise risk management. It ensures that an organization's cyber resilience framework aligns seamlessly with its overarching operational risk management strategy.
This alignment is not merely a procedural formality but a strategic imperative that are part of a due diligence process. Large enterprises usually recognize that common elements in policies, procedures and controls are instrumental in mitigating various risks, including cyber threats. As well as anability to detect, prevent cyberattack, the framework lays out guidelines for responding to cyberattacks effectively, fortifying the enterprise's resilience in an ever-evolving digital space.
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The Ministry of Tourism and Sports in Kazakhstan is set to recommend stricter rules related to public access to gambling venues.
In an announcement made by Vice Minister, Yerzhan Erkinbayev, he confirmed that his department is set to publish its recommendations on gambling protections in lieu of President Kassym-Jomart Tokayev’s demands.
These demands were outlined recently when the Kazakhstani President addressed the National Security Council stressing the great need for changes in Kazakhstan’s gambling regulations.
The RecommendationsAmongst the proposals, Erkinbayev has endorsed Kazakhstan’s increase of the current gambling age limit from 21 to 35 years of age.
In a statement, Erkinbayev expressed his approval and highlighted the need to “end the manifestation of gambling addiction amongst Kazakh youth”.
He also pointed to the need to mitigate the negative consequences of the public incurring debt due to gambling addiction.
Another notable recommendation suggests that the Ministry should support new administrative responsibilities to ensure that under no circumstances will be present in gambling venues should they be underage.
The Ministry has also asked the Kazakh Police Force to draft new policies themselves in order to ensure the “criminal liability” of venues serving underage customers.
Financial restrictions are also called for when related to participation in gambling will be imposed on individuals with overdue loans or financial obligations.
Lack of regulatory frameworkAs it stands, Kazakhstan has no dedicated framework to address gambling regulations only currently providing a limited set of regulations in certain provinces dating as far back as 2007.
Currently, the list of recommendations amounts to 62 in relation to gambling and betting operations and activities. These are subject to Presidential review, however, no recommendation has yet been put forth to devise a specific gambling law for Kazakhstan.
Join us in Malta between the 13 – 17 November for SiGMA Europe 2023SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.
In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”
Find all the details here.
India's tax authorities have taken action against Dream11, a gaming company backed by Tiger Global, demanding approximately US$150 million in unpaid taxes for the period between 2017 and 2019, according to legal documents. This tax dispute revolves around the appropriate tax rates applicable to gaming platforms, particularly those offering fantasy cricket games, which have gained immense popularity.
Higher tax on gaming revenue
Dream11's stance is that it should be subject to taxation based on the fees it charges its customers. Conversely, Indian tax authorities are insisting on a higher 28 percent tax on the total gaming revenue generated from players, as stated in court documents.
In a move that set the clock ticking, tax authorities issued notices on 12 September, giving Dream11 a 30-day window to provide a defense against a claimed shortfall of 2.1 billion rupees (US$26.07 million) for the fiscal year 2017-18 and a hefty 10 billion rupees (US$120.85 million) for the subsequent year of 2018-19. These figures include accrued interest and penalties.
Dream11, for its part, has chosen to remain tight-lipped on the matter, declining to comment. Meanwhile, the Indian tax authorities have not yet responded to inquiries seeking their input.
Mumbai High Court lawsuit
To challenge the tax notices, Dream11 has filed a lawsuit in Mumbai's High Court, as confirmed in some court documents. The case is expected to make its way through the legal process in the coming days.
Dream11, headquartered in Mumbai and founded in 2008, enjoys significant backing from the U.S. investment fund Tiger Global.
Additionally, the tax authorities are conducting a broader investigation into Dream11's tax payments, extending their scrutiny to cover the period until March 2023, as disclosed in the company's court filing.
Betting and gambling vs 'skill-based games'
According to court documents, Indian tax inspectors contend that Dream11's services fall within the domain of betting, gambling and wagering. In contrast, Dream11 argues that its gaming platform is rooted in skill-based games and should thus be subject to a lower tax rate, specifically on its earnings known as platform fees, rather than the entire prize pool.
Potential of Indian gaming market
India's gaming industry boasts a significant valuation of $930 million, securing its position as the world's top-ranked market. With over 560 million registered internet users, India stands as the second-largest global consumer of internet services. The government projects that the online gaming sector will reach a substantial $1.9 billion by the end of 2024, reflecting a remarkable 28 percent growth over the past two years. These statistics underline the immense potential of the Indian gaming market, prompting the need for clear and tailored regulations to define iGaming (betting and gambling) and skill-based games in this rapidly evolving industry.
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UK-based gambling group Entain, the owner of Ladbrokes, has issued a warning about a drop in its online gaming revenues, citing recent industry reforms and unfavorable sports results as contributing factors. This announcement had a significant impact on Entain's share price, causing it to plummet more than 11 percent during early Monday trading. As a result, the company's shares reached their lowest level since 2020, making it the biggest loser on the FTSE 100 index.
CEO's comment
Entain's CEO, Jette Nygaard-Andersen, stated that the company continues to experience positive growth in its online business. She noted that despite softer-than-expected revenue growth in Q3 and the ongoing implementation of industry-leading safer gambling measures, Entain anticipates strong full-year earnings.
“We continue to see good underlying growth in our online business and are reiterating our EBITDA guidance for the year despite softer than expected revenue growth in Q3 and the ongoing roll-out of industry-leading safer gambling measures." She added “We continue to attract more customers than ever before to enjoy our products and services. BetMGM remains on track to deliver positive EBITDA in H2 and a full-year NGR performance at the top end of our expectations, and we are particularly excited about the product improvements that we are rolling out over the NFL season.”
Slower growth in Australia
Several factors contributed to this underperformance, including adverse sporting results in September, the ongoing implementation of safer gambling measures, regulatory challenges, and slower-than-expected growth in key markets like Australia and Italy. This unexpected setback led to an over 8 percent drop in Entain's share price during early trading.
Despite these challenges, the company highlighted strong performance from recent acquisitions, particularly SuperSport in Croatia. The retail segment also demonstrated resilience, with BetMGM in the US on track to achieve positive EBITDA in H2 2023.
Online revenue forecase for Q3
THE decline in online net gaming revenue (NGR) growth during the third quarter projected a decrease of a "high single digit per cent" on a pro forma basis. This decline is expected to contribute to a "low single digit per cent" reduction in pro forma online gaming revenues for the entire year.
The company attributes this downgraded outlook to several factors, including "adverse sporting results" that impacted profit margins in September, "ongoing regulatory headwinds" stemming from government reforms in key markets like the UK, which are persisting longer than anticipated, and slower-than-expected growth in its Australian and Italian businesses. In the UK, Entain's largest market, the government introduced various reforms aimed at reducing problem gambling, including affordability checks and stake limits on online slots.
Analysis and outlook
Despite the revised revenue outlook, Entain, which also owns Coral and Bwin, maintains its projected earnings before interest, tax, depreciation, and amortization (EBITDA) within the range of £1 billion to £1.05 billion for the full year. Analysts suggest that Entain may have compensated for weak online revenues with robust growth in its retail operations and cost control measures.
It is projected that we will see a 1percent decline in full-year earnings based on Entain's trading update. They highlighted disappointing online trends in key markets but took some encouragement from the strong performance of Entain's US joint venture, BetMGM, and suggested that much of the weakness could be attributed to sporting results, which they expect to normalize over time.
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Entain is responding swiftly to its disappointing Q3 2023 financial results. The company reported a less-than-stellar performance in its online Net Gaming Revenue (NGR) following the summer season. With Q3 2023 online NGR growth expectations in the high single digits and proforma NGR facing a similar decline, Entain is challenged with multiple factors contributing to this setback. These include adverse sporting results, the ongoing implementation of safer gambling measures, regulatory hurdles and slower-than-expected growth in Australia and Italy. As a result of these challenges, Entain's shares plunged by over 8 percent this week.
Bright outlook for acquisitions and retail segments
Despite the hurdles, Entain's recent acquisitions have resulted in a positive impact, particularly SuperSport in Croatia. The retail segment also delivered robust performance, with BetMGM in the US staying on course to deliver positive EBITDA in H2 2023.
Long-term growth
Over the past three years, Entain has been actively reshaping its strategic approach to enhance earnings quality and deliver long-term shareholder value. With a shift from a brand-focused approach to a regional strategy, Entain is prepared for potential senior position eliminations and organizational restructuring. To accelerate performance and delivery, the company plans a comprehensive market review with an emphasis on sustainable organic growth. Additionally, Entain aims to streamline its group structures, migrate acquired businesses to its advanced technology platform, optimize capital allocation and move closer to achieving a 30 percent online EBITDA margin target.
Resilience and adaptive strategies
Research Analyst Neil Shah, director at Edison Group, acknowledged Entain's challenges but also recognized the company's resilience and adaptive strategies in navigating the ever-evolving online gaming landscape. In H1 2023, Entain demonstrated impressive growth, with an 11 percent rise in overall NGR and significant surges in online revenue. The operator's commitment to cost-cutting, efficiency and optimized capital allocation positions it for future success.
While Entain faces uncertainties, investors and analysts like Peel Hunt maintain a positive outlook, highlighting the company's leading position in the US market through BetMGM and its untapped potential from recent acquisitions. Peel Hunt reiterated its Buy rating for Entain stock with a slightly adjusted target price.
Entain Plc (ENT.L) is currently trading at GBp929.00 (-1.20 percent).
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Mark Stebbings, the Chief Operating Officer (COO) of Betfred Group, has announced his resignation, which will take effect later this week. Stebbings confirmed that he will be leaving his position at the end of the month via his social media posts. After nearly three decades with Betfred, Stebbings expressed that it is the right time for him to depart, highlighting his pride in being part of the company's remarkable growth journey.
Tribute to Fred Done
He expressed gratitude to Betfred founder Fred Done for his mentorship and unwavering belief in him as he rose from a trainee betting shop manager to group COO. Stebbings acknowledged that his last week in the role would be emotional as he bids farewell to many colleagues he has worked with for years. He expressed confidence in Betfred's continued growth and wished Fred Done and the team ongoing success.
Following his resignation, Stebbings intends to take a brief break to spend time with his family before considering his next career steps, according to his LinkedIn post.
Industry stakeholders, including Avenue H principal Benjie Cherniak and Stephen Crystal, who collaborated with Stebbings on Betfred's expansion into the US market, extended their well wishes.
Betfred searches for new Group COO
Betfred is expected to begin the search for a new group COO following Stebbings' departure, although the company has yet to issue an official statement on this matter.
In a related development, Bryan Bennett, COO of Betfred USA, also announced his departure from the company, He described his time with the operator as both challenging and rewarding, and referred to the experience as beinng exciting.
Betfred's online operations are currently active in seven US states: Arizona, Colorado, Iowa, Ohio, Pennsylvania, Virginia, and Maryland. Additionally, the company operates retail sportsbooks in Louisiana, Nevada, and Washington.
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BetMGM, the newly launched UK iGaming and online sports betting brand from MGM Resorts International, has kicked off its first advertising campaign, featuring stand-up comedian and actor Chris Rock.
Having recently launched the brand, the fully integrated campaign reflects how BetMGM provides the best Las Vegas has to offer, bringing entertainment to the UK betting industry and promising to introduce a new golden era in sports and online casino.
As its ambassador, globally recognised entertainer, Chris Rock will appear in a number of marketing initiatives to advertise BetMGM's UK launch. The first of these campaigns has been rolled out, with the actor promoting the launch by sharing information about numerous special deals. The first advert showcases Chris Rock, travelling in a gold speedboat from the Bellagio Fountains to the Thames with a lion in tow. A responsible gambling advert has also been launched. Entitled “Stay Golden”, the ad features Chris Rock listing tools available to players to “keep things golden with responsible play.”
Sam Behar, UK Director BetMGM, said: “We are incredibly excited to launch BetMGM in the UK and give customers something new. This campaign leverages the heritage of MGM Resorts’ best-in-class Las Vegas entertainment to deliver a unique proposition to the UK market. Alongside standout promotions and our A-list ambassador Chris Rock, this campaign clearly demonstrates BetMGM’s commitment to bringing a fresh and entertaining approach to the market. It’s showtime!”
The move to the UK reflects MGM’s commitment to expanding in the European market.
The UK BetMGM Sportsbook is using the platform provided by the partnership between the Kambi Group and LeoVegas. BetMGM continues to operate in the US and Canada using the technology and platform provided by Entain. The UK BetMGM casino and sports betting operations would be handled by LeoVegas, the brand having been acquired by MGM Resorts International in late 2022.
Join us in Malta between the 13 - 17 November for SiGMA Europe 2023SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.
In the words of SiGMA Group founder Eman Pulis, “We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”
Find all the details here.
The answer is no, at least based on findings from a study of media coverage during the kick-off weekend of Premier League football (11-14 August). The coverage included TV and radio broadcasts and social media. Perhaps the most significant conclusion reached by the study is that gambling ads and messages “were omnipresent and virtually unavoidable” and “saturated the media landscape”.
One of the more significant findings of the study is that 92% of content marketing ads on social media were in breach of regulations “by not being clearly identifiable as advertising, representing a serious violation of consumer rights.” During the televised 6 Premier League matches included in the study only 14.5% included gambling harm reduction messages, while 11.1% included age warnings.
The study concluded with three main recommendations. The first was the introduction of legislation to comprehensively regulate gambling messages during football matches. The second recommendation called for legislation that clearly bans sponsorship on football shirts. Finally, the study recommended a clarification and strengthening of regulations pertaining to social media content marketing.
The Betting and Gaming Council challenged the research, saying it “fundamentally misunderstands advertising and how it is regulated”.
“Betting advertising and sponsorship must comply with strict guidelines and safer gambling messaging, which promotes safer gambling tools and signposts to help those concerned about their betting, is regularly and prominently displayed,” a spokesperson said.
Earlier this month, the UK Advertising Standards Authority (ASA) banned an ad for the People’s Postcode Lottery. The ad seemed to suggest that playing the lottery could help solve financial troubles. The ad showed a couple who had to call of their wedding after one of them was made redundant. Wedding bells were back when they won a five-figure sum on the lottery.
The study was carried out between the University of Bristol and ITN, an independent production company.
Join us in Malta between the 13 - 17 November for SiGMA Europe 2023
SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.
In the words of SiGMA Group founder Eman Pulis, ““We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.”
Find all the details here.
SOFTSWISS experts have compiled a comprehensive guide containing 54 essential metrics, a curated list of valuable analytical tools, and insights into global trends in the casino and sports betting industry. The guide is readily available for free download.
The document helps increase understanding of the most important iGaming key performance indicators (KPIs), covering top-level, derivative, and operational metrics. This authoritative glossary delves into the often-overlooked complexities of KPIs, dividing the content into four core parts:
- The Financial Metrics section highlights not only Gross Gaming Revenue (GGR) and Net Gaming Revenue (NGR), but also the importance of Average Revenue Per User (ARPU), Conversion Rate, and Customer Acquisition Cost (CAC).
- The Player Engagement Metrics section draws attention to key engagement indicators such as Active Players, Depositing Players Count, and Total Deposits Sum.
- The Operational Metrics section explores player acquisition and retention strategies, with a specific focus on their role amidst major sporting events.
- The Analytical Tools and Trends section focuses on the usage of real-time dashboards, data warehouses, and the evolving significance of Artificial Intelligence and Machine Learning.
Each KPI on the list includes a definition, formula, type, and keynote regarding its impact on the iGaming business. For example, NGR is categorised as a top-level KPI, providing a clear snapshot of the casino’s financial health. Monitoring NGR closely allows operators to evaluate their operational efficiencies and make informed decisions about scaling their offerings or optimising existing operations.
Max Trafimovich, CCO at SOFTSWISS, comments: “By launching this useful glossary, SOFTSWISS is continuing its commitment to help operators develop their businesses in the most efficient way. Listed KPIs are the essential metrics that measure the overall performance of a casino or sportsbook. By classifying them into strategic, tactical, and operational categories, operators can gain a comprehensive view of business beyond just financial metrics, including brand resonance and player experience. By aligning KPIs with unique business goals, our partners can develop a robust and adaptable strategy that sets them apart in the highly-competitive iGaming landscape.”
SOFTSWISS has recently published another helpful overview of the iGaming business – the market report ‘iGaming in Brazil’. This exclusive report provides a comprehensive overview of the Brazilian iGaming landscape, equipping operators with the essential information to launch an online casino or sportsbook in the region.
Join us in Malta between the 13 - 17 November for SiGMA Europe 2023
SiGMA Europe’s Malta Week festival brings together a diverse and international group of industry leaders for a convergence of expo, conference, and networking. The event will be held at the Mediterranean Maritime Hub (MMH), a larger, more dynamic venue that promises a raw, industrial, and unconventional space unlike anything ever used before.
In the words of SiGMA Group founder Eman Pulis, ““We’re redesigning your entire experience, from the minute you land in Malta until the very last moment. I look forward to welcoming you with open arms to this iGaming festival.” Find all the details here.
As the gaming industry continues to evolve, Full House Resorts remains at the forefront, capitalizing on opportunities, expanding its reach and delivering compelling experiences to its patrons.
In the second quarter of 2023, Full House Resorts reported consolidated revenues of US$59.4 million, a 33.8 percent increase from the previous year. However, it also incurred a net loss of US $5.6 million, including preopening costs for the Chamonix project and significant depreciation charges for The Temporary. Adjusted EBITDA was US $10.5 million, down from US $12.1 million in the previous year, due to various factors including marketing and training expenses for The Temporary.
Full House Resorts had US$113.6 million in cash and cash equivalents as of end of June 2023. Their debt primarily consists of US$450 million in outstanding senior secured notes due 2028 and US$27.0 million under a revolving credit facility.
Comments from President and CEO
“As with last quarter, our financial results continue to benefit from structural changes throughout the company,” said Daniel Lee, President and CEO of Full House Resorts (in photo above).
“These operating results are significantly above not only the 2020 period, but also meaningfully above any second quarter or first-half results in at least the past five years. These strong continued results have allowed us to continue to re-invest in, and improve, our properties. For example, with the ramp-up of our new marketing systems at Bronco Billy’s and Rising Star largely complete, we now look forward to upgrading the casino marketing systems at our two Nevada properties, scheduled for this year’s fourth quarter.”
First full quarter for The Temporary by American Place
A new casino, The Temporary by American Place reported its first full quarter of operations with US$20.3 million in revenue and US$4.1 million in Adjusted Property EBITDA. Visitor numbers initially surged, and win per admission increased since opening. However, expenses were higher due to personnel training and marketing. The property currently operates 30 out of 48 planned table games due to staffing challenges. The high-end restaurant is set to open later in the year, and an on-site sportsbook partnership with Circa Sports is expected to launch soon.
Hiring dealers in Waukegan, Illinois
The Temporary casino in Waukegan, Illinois, opened in February 2023 with limited services and hours. It now operates 24/7 on weekends and extended hours during the week. The property has increased table game betting limits and is hiring and training more dealers to expand its gaming offerings. An on-site sportsbook in partnership with Circa Sports is also anticipated to open soon.
Chamonix project, Colorado to open in December
Construction continues at the Chamonix project in Colorado, with the main hotel tower nearing completion. Furniture installation is set to begin, and the casino and high-end restaurant millwork is in progress. Hotel reservations for Chamonix will open soon, with a planned opening date of December 26, 2023, aiming to be one of the best casino hotels in the Midwest.
Second quarter highlights and subsequent Events
In the second quarter of 2023, the Midwest & South segment, which includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and The Temporary by American Place, reported revenues of US $49.9 million. This marked a substantial 51.5 percent increase compared to the prior-year period when it generated US $32.9 million. Additionally, Adjusted Segment EBITDA increased to US$9.4 million, reflecting a 2.6 percent rise from the previous year's US$9.1 million.
The significant growth in revenue and Adjusted Segment EBITDA can be attributed to the opening of The Temporary in February 2023. During the second quarter of 2023, The Temporary contributed US$20.3 million in revenue and US$4.1 million in Adjusted Property EBITDA. The company anticipates further improvement in The Temporary's results in the upcoming quarters as its customer database expands, and early expenses related to marketing and labor normalize. It's worth noting that in the same quarter of the previous year, Rising Star's sale of "free play" contributed US$2.1 million in revenue and income.
Excluding the results from The Temporary, same-store revenues decreased to US$29.6 million from US$32.9 million. This decline is primarily attributed to the sale of "free play" at Rising Star, along with increased labor expenses and insurance costs at Silver Slipper, which led to a decline in Same-store Adjusted Segment EBITDA to $US5.3 million fromUS $9.1 million.
Bad weather in Lake Tahoe impacts results
West Segment: The West segment includes Grand Lodge Casino, Stockman's Casino, Bronco Billy's Casino and Hotel, and the expected Chamonix Casino Hotel opening in December 2023. In the second quarter of 2023, this segment reported revenues of US$8.1 million, a decrease from the prior-year period when it generated US$9.3 million. Adjusted Segment EBITDA for the current quarter was US$0.2 million, significantly lower than the previous year's US$1.7 million.
The decline in revenue and Adjusted Segment EBITDA can be attributed to the temporary loss of all on-site parking and on-site hotel rooms at Bronco Billy's due to the construction of Chamonix. Additionally, heavy winter snowfall in the Lake Tahoe region delayed the return of seasonal residents to Incline Village during the current period.
Growth in sports wagering
The Contracted Sports Wagering segment encompasses on-site and online sports wagering "skins" in Colorado, Indiana, and, upon launch, Illinois. In the second quarter of 2023, both revenues and Adjusted Segment EBITDA were $1.4 million. This reflects the activation of all three permitted skins in Colorado and two of the three skins in Indiana. In the prior-year period, both revenues and Adjusted EBITDA were US $2.2 million. This decrease is primarily due to an acceleration of deferred revenue for two agreements that ceased operations in May 2022 when one of the contracted parties terminated its online operations.
It's important to note that the results from the Illinois sports skin are not yet included in this segment. For the Illinois sports skin, the company will receive a percentage of revenues as defined in the contract, subject to a minimum amount of $5 million per year. Revenue payments for the Illinois sports skin are expected to commence in August 2023, irrespective of whether online sports wagering operations have begun. The total annualized minimum amount for all six of the company's current sports wagering agreements will reach $10 million once the Illinois skin is live.
Revolving credit facility
As of June 30, 2023, the company had a total of US$113.6 million in cash and cash equivalents. This amount includes US$78.1 million held in reserve under their bond indentures, allocated for the completion of the Chamonix construction project. The company's debt primarily consists of US$450.0 million in outstanding senior secured notes due in 2028, which can be called at specified premiums starting in February 2024. Additionally, there is US$27.0 million outstanding under the company's revolving credit facility.
Pioneering growth
Full House Resorts is a dynamic player in the gaming industry, with a diverse portfolio of owned, leased and operated gaming facilities across the United States. These properties include The Temporary by American Place in Waukegan, Illinois; Silver Slipper Casino and Hotel in Hancock County, Mississippi; Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado; Rising Star Casino Resort in Rising Sun, Indiana; Stockman’s Casino in Fallon, Nevada; and Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe Resort, Spa, and Casino in Incline Village, Nevada.
Full House Resorts has consistently demonstrated its commitment to growth and innovation, as exemplified by the recent opening of The Temporary. This new addition to their portfolio reported impressive revenue and EBITDA figures within its first quarter of operation. The company is poised for further success with the upcoming launch of Chamonix Casino Hotel in Cripple Creek, Colorado, projected for December 2023.
Expansion in the gaming industry
Full House Resorts' strategic vision and dedication to growth in the gaming industry are evident in its expanding portfolio of properties and the impressive performance of recent additions like The Temporary. With the imminent opening of Chamonix Casino Hotel, Full House Resorts is well-positioned to continue its success and provide exceptional gaming and entertainment experiences to a broad audience.
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