Belgium’s steps towards responsible gaming

Bally’s Corporation has started 2024 on a promising note. The company’s Q1 2024 results reveal a strategic expansion plan and a positive market positioning.

Bally’s reported a revenue of $618.5 million in Q1 2024, marking a 3.3 percent year-on-year increase. The company’s Casinos and Resorts segment saw a revenue rise of 4.1 percent year-on-year, reaching $342.3 million. However, the international Interactive revenue saw a slight dip of 4.4 percent, settling at $234.7 million. On the brighter side, North America Interactive revenue witnessed a significant surge of 70.2 percent year-on-year, amounting to $41.5 million.

Despite these positive numbers, the company’s adjusted EBITDA fell to $116.5 million in Q1 2024 from $126.3 million in Q1 2023.

Bally’s CEO, Robeson Reeves, expressed optimism about the company’s performance in Q1 2024. He attributed the solid start to the year to the revenue growth in the Casinos & Resorts and North America Interactive segments. During the quarter, Bally’s also launched iGaming in Rhode Island as the sole provider, a move that aligns with the company’s expansion strategy. Reeves stated that the North America Interactive segment’s results were in line with Bally’s expectations.

The decline in the international interactive segment was mainly due to operations outside the UK. However, created by the white paper in the UK, resulting in strong revenue growth. The company aims to launch online sports betting in the UK to complement its iGaming offering and add another customer acquisition funnel.

Reeves also highlighted the potential of their operations in Spain, which are well-positioned to benefit from the recent removal of advertising restrictions. This change will enable Bally’s to increase its investment in faster growth. The company also anticipates further stabilisation of its operations in Asia with an enhanced online sports betting offering.

Bally’s 2024 guidance remains unchanged, with revenue expectations in the range of $2.5 billion to $2.7 billion and adjusted EBITDAR in the range of $655 million to $695 million. The full-year guidance includes the impact of the closure ofbut also considers the ramp of the Chicago Temporary Casino. It also assumes growth in the international interactive division and a revenue rise due to the introduction of iGaming operations in Rhode Island.

Bally’s Corporation (BALY) is trading at $13.00, down by 1.22 percent. This indicates that despite the strategic moves and financial performance in Q1 2024, the stock has experienced a slight decrease. The company is experiencing a positive trend in its revenue growth, especially in the Casinos and Resorts and North America Interactive segments.

The company’s strategic move to launch iGaming in Rhode Island as the exclusive provider has further strengthened its market position.

However, it hasn’t been a smooth sail. The company experienced a drop in International Interactive revenues, mainly due to operations outside the UK. This reflects Bally’s strategic decision to focus on enhancing profit margins rather than chasing growth that may not be economically viable. This shift led to some tough comparisons with the previous year’s revenue. Despite these hurdles, Bally’s has successfully increased its Adjusted EBITDAR by 4.0 percent year-over-year, enhancing the profitability of its segments. This growth, coupled with the company’s strategic expansion plans, could potentially influence the stock performance positively in the future. It’s a testament to Bally’s resilience and strategic foresight in navigating the dynamic gaming industry landscape.

It remains to be seen how the company’s ongoing and future initiatives will influence its stock performance.

South Korean foreigner-only gaming operators Grand Korea Leisure Co Ltd (GKL) and Lotte Tour Development recorded a decline in their April sales compared to the previous month. This decline reflects ongoing challenges faced by the industry despite improvements.  

, a subsidiary of the Korea Tourism Organization, experienced a 28.9 percent decrease in net sales in April compared to the same period last year. Table game sales dropped by 21.2 percent month-on-month, while machine game sales remained relatively stable. However, total sales for the first four months of 2024 declined by 17.7 percent compared to the previous year, without a specified reason for the decrease.  

Although the casino's table drop remained steady compared to March, it showed a notable increase of 7.8 percent from April 2023. The cumulative casino drop for the first four months of the year also demonstrated a significant rise of 17.6 percent compared to the same period last year.  

Meanwhile, Lotte Tour Development, operator of the Jeju Dream Tower casino resort, reported an 8.1 percent decrease in casino sales in April compared to the previous month. However, sales surged by 104.8 percent compared to April last year. Table game sales decreased by 7.7 percent month-on-month but showed a significant increase of 114.6 percent year-on-year.  

Lotte Tour's casino table drop for April witnessed a notable rise of 5.2 percent compared to March and a significant increase of 32.6 percent year-on-year.  

Despite fluctuations in sales and table drops, casino operators in continue to navigate challenges in the gaming industry. While some indicators show improvement compared to last year, the overall trend highlights the need for sustained efforts to bolster the sector in the face of ongoing uncertainties.  

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

The Philippine Amusement and Gaming Corporation () in a joint operation with the Philippine National Police Anti-Cybercrime Group (PNP-ACG), apprehended of 10 Chinese nationals and 26 Filipinos in two separate raids targeting illegal gaming operations and online scams in Laguna and Parañaque City. 

On Thursday, joint forces comprising the CIDG-NCR and PAGCOR apprehended a group of suspects, including 10 Chinese nationals, in Multinational Village, Parañaque. The arrests were made on charges related to the Anti Trafficking in Persons Act (RA 9208), Alien Registration Act (RA 562), and Cybercrime Prevention Act (RA 10175). 

Authorities confiscated a significant cache of assets during the raids, including mobile phones, computers, laptops, credit cards, vehicles, and Chinese government documents. Additionally, two vaults were discovered at the Parañaque residence, further implicating the involvement of the suspects in illicit operations. 

In the Parañaque raid, PAGCOR Senior Vice President for Security Cluster Raul Villanueva said the arrested Chinese nationals believed to have been part of a group that managed to escape from an earlier raid on a large gaming compound in Bamban, Tarlac last March. 

Nine Filipino female workers were also rescued, while one Filipino male serving as a bodyguard was arrested for possession of an undocumented .45 calibre pistol. 

The operation followed an earlier raid on Tuesday with the Philippine National Police Anti-Cybercrime Group (PNP-ACG) and PAGCOR security personnel which led to the involved in an illegal online raffle conducted via Facebook. The suspects, operating under the Facebook page "Lucky Dream 4," were apprehended while livestreaming their 50th raffle event from an office located within a subdivision in Biñan. 

In a press, release, PAGCOR Chairman and CEO Alejandro Tengco reiterated the agency's commitment to combating illegal online gambling and other illicit activities, stressing the importance of protecting the public, especially the youth, from such harmful endeavours. Tengco highlighted the agency's collaborative efforts with law enforcement agencies to strengthen its campaign against these unlawful practices. 

These coordinated efforts underscore PAGCOR's ongoing commitment to upholding regulatory standards and protecting the public from the adverse effects of illegal gambling and fraudulent activities. 

Upcoming SiGMA event: SiGMA Asia 2024, 2 – 5 June. Find all the details .

s financial results for the first quarter of 2024 reveal a challenging period for the company. The operator reported a total revenue of $1.61 billion and an adjusted EBITDAR of $256.2 million, marking a decline of 3.9 percent and 46.4 percent year-on-year respectively. This downturn was not limited to these metrics alone; net income also took a hit, plummeting from $514.4 million in Q1 2023 to a loss of $114.9 million in Q1 2024.

Operating income followed a similar trend, dropping from $199.1 million to a loss of $21.4 million. Total operating expenses, on the other hand, grew by 10.5 percent to $1.63 billion. A significant portion of these increased expenses can be attributed to ESPN Bet, which was launched in August last year following the reselling of Barstool to its Founder, Dave Portnoy, for $1 –o acquire it in February 2023.

At a property level, Penn generated $1.4 billion in revenue, with an adjusted EBITDAR of $479 million. However, Penn Interactive/ESPN Bet reported an adjusted EBITDA loss of $196 million among other factors, resulting in a total adjusted EBITDAR of $256.2 million.

The northeast segment, which includes properties such as Ameristar East Chicago, Hollywood Casino at Greektown, and Plainridge Park Casino, made $684.7 million in revenue and $202.6 million in adjusted EBITDAR, down 2.3 percent and 4.8 percent year-on-year respectively.

The south segment, with properties including Boomtown Biloxi, Hollywood Casino Gulf Coast, and Margaritaville Resort Casino, generated $298.5 million, down $16.3 million from last year, while adjusted EBITDAR fell by $10.1 million to $113.5 million. The mid-west segment came slightly behind the south segment at $291.2 million, down 1.4 percent year-on-year. Adjusted EBITDAR was also down, falling 6.8 percent annually.

Lastly, the west segment, with properties including Ameristar Black Hawk, M Resort, and Zia Park Casino, saw a marginal revenue decline, down $0.9 million to $128.8 million, while adjusted EBITDAR fell 6.5 percent to $45.9 million. The other segment, which includes stand-alone racing operations and overhead costs, made $6 million in revenue – the only segment to see any annual growth, up $0.2 million.

Penn Interactive, which includes all online and retail sports betting (ESPN Bet), online casino, and social gaming operations, reported a revenue of $207.7 million, down 11 percent year-on-year. Adjusted EBITDAR went from a loss of $5.7 million to a loss of $196 million – a significant increase.

ESPN Bet was expected to result in a loss in its early days, especially considering that operators such as DraftKings have yet to report an overall profit from operations, having made an overall loss from operations of $43.8 million in Q4 2023. However, with revenue down across the board and the operator still recovering from the financial loss accrued from acquiring Barstool, the operator may struggle to compete if investments on ESPN Bet do not begin turning around soon.

Despite this, ESPN Bet has remained active. In March, the sportsbook was added to North Carolina’s online sports betting market following its legalisation, while in April, the sportsbook opened its first retail location in Detroit at Hollywood Casino in Greektown.

Penn Entertainment’s Q1 2024 results reveal a challenging period for the company, with declines in revenue and adjusted EBITDAR, and significant losses from ESPN Bet. The company will need to navigate these challenges carefully to ensure future growth and profitability.

Penn Entertainment’s future seems to be a blend of potential hurdles and opportunities, according to various market analyst projections and predictions.

Projections for financial growth: Market analysts predict that Penn Entertainment’s earnings and revenue will see an annual growth of 61.9 percent and 6.1 percent respectively. The Earnings Per Share (EPS) is projected to see an annual growth of 63.3 percent. The return on equity is expected to be 8.4 percent in the next three years.

Forecast for stock price: The average price target set by analysts for Penn Entertainment Inc (PENN) stock for the upcoming 30 days is $27.58, indicating a potential increase of +59.60 percent from the current price of $17.28. The highest price target set by analysts is $28.93, and the lowest is $26.23.

Long-term outlook: Based on financial reports and historical earnings data, Penn Entertainment Inc (PENN) stock could potentially reach $35.50 by 2030, $56.34 by 2040, and $90.13 by 2050.

Expectations for earnings: Earnings for Penn Entertainment are anticipated to grow in the coming year, moving from ($0.90) to $0.80 per share. Penn Entertainment has confirmed that its next quarterly earnings report will be released by the end of this week. It’s crucial to remember that these are merely forecasts and the actual results may differ. The company’s performance could be affected by a range of factors, including market conditions, regulatory changes, and the overall economic climate. Therefore, investors should consider these forecasts as part of a wider set of information when making investment decisions.