Blockchain, crypto can bring transformative impact to iGaming, says GlobiancePay exec

Dutch authorities have apprehended a suspect linked to the ZKasino scam. The arrest was made on April 29, with the suspect, a 26-year-old man, facing charges of fraud, embezzlement, and money laundering.

The ZKasino platform, which initially presented itself as an innovative blockchain-based gambling platform, has been under scrutiny for its dubious operations. The platform promised investors a return on their investments within 30 days, a promise that was never fulfilled. The smart contract associated with the platform suggested that there was never an intention to return the funds, raising red flags among the investor community.

The Fiscal Information and Investigation Service (FIOD) seized assets worth over 11.4 million euros ($12.2 million) during the arrest. The seized assets include cryptocurrency, real estate, and luxury cars. This marks the first arrest in the ZKasino fraud case, where investors have reportedly lost at least $33 million in digital assets.

The platform went live on April 20, attracting over 10,515 Ether (ETH) from more than 10,000 investors. However, investor concerns escalated when an on-chain transaction revealed ZKasino moving all 10,515 ETH into the Lido staking protocol. Additionally, the platform altered the wording on its website, removing a statement that assured investors that their ETH “would be returned.”

Adding to the controversy, ZKasino announced in a March post that it had closed a Series A investment round at a $350 million valuation. The platform claimed backing from crypto exchange MEXC and venture firm Big Brain Holdings, among others. However, Big Brain Holdings later clarified that it had not invested in ZKasino, labeling the platform as “fraudulent.”

While the identity of the suspect remains unconfirmed, speculation is rife within the crypto community. The suspect’s detention has been extended by 14 days for further investigation. As the case unfolds, risks and challenges in the rapidly evolving world of online gambling and cryptocurrency need to be continuously evaluated. The ZKasino case is a cautionary tale for investors, highlighting the importance of due diligence and regulatory oversight in the crypto space.

Maybank Securities Inc. projects a robust growth of 15 percent in the of the Philippines' gaming industry for 2024. In a recent note, the institution expressed optimism, maintaining a positive outlook on the sector.  

Analyst Raffy Mendoza highlighted the anticipated growth driven by the domestic mass and slots market, with additional upside potential from the gradual recovery of the VIP segment, notably led by South Korean visitors. 

Maybank expects growth to extend beyond Entertainment City, Manila, with the opening of Solaire Resort North and a surge in e-gaming activities contributing to the industry's expansion. 

In 2023, the Philippines witnessed a remarkable 33% year-on-year growth in GGR, reaching PHP 285.3 billion (€4.6 billion). Land-based venues constituted the bulk of this growth, accounting for approximately 80 percent of the industry's GGR, marking a substantial increase from the previous year. 

Mass tables and slot machines dominated Entertainment City's GGR, comprising 64% of the total in the financial year 2023. This underscores the growing demand from the domestic market, a trend expected to persist due to increasing private consumption. 

While Maybank anticipates challenges due to fewer Chinese visitors affecting the VIP segment, it notes a gradual recovery led by South Korean tourists. Despite Chinese arrivals being at only 24 percent of 2019 levels in the first quarter of 2024, Korean arrivals have reached 88 percent of pre-pandemic levels during the same period. 

The Philippine Amusement and Gaming Corporation (PAGCOR) the gaming industry to generate PHP 336.38 billion (€5.5 billion) in GGR in 2024, reflecting a significant 17.9 percent increase compared to 2023. 

Overall, Maybank's positive forecast underscores the resilience and potential of the Philippines' gaming industry, driven primarily by the domestic market's sustained growth and gradual recovery in the VIP segment, despite challenges posed by fluctuating visitor arrivals. 

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

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 .