M&A: LeoVegas completes acquisition of Push Gaming

Delta Corp, a prominent player in India's gaming industry, faced a 3 percent year-on-year decline in gross income from operations for the quarter ending on March 31, 2024. The  reported a gross income of Rs 222.75 crores (€24.8 million), attributed to decreases in both its casino and online skill gaming segments.   

Income from gaming operations witnessed a decline to Rs 174.07 crores (€19.35 million) in the March quarter, compared to Rs 181.54 crores (€20.1 million) in the previous quarter and Rs 175.61 crores (€19.53 million) in the corresponding period last year. Similarly, income from online skill games fell by 10.4 percent to Rs 35.08 crores (€3.9 million) compared to the previous quarter.  

Despite the decline in gross income,  reported a remarkable 110% sequential increase in profit for the quarter, reaching Rs 72.41 crores (€8 million). This increase was attributed to the sale of a subsidiary, contributing to the company's financial performance during the period.  

For the full fiscal year ending on March 31, 2024, Delta Corp experienced a 2.5 percent year-on-year decline in gross income, amounting to Rs 1,010.48 crores (€112.5 million). Both gaming operations and online skill games reported declines of 1.5 percent and 9.5 percent, respectively.  

Delta Corp addressed ongoing legal challenges, including notices sent to three of its subsidiaries demanding back payment of GST. The company, along with other impacted entities, has elevated writ petitions opposing these demands to the Supreme Court. Delta Corp asserts that these demands are arbitrary and contrary to legal provisions, emphasizing industry-wide concerns regarding taxation on gaming revenue.   

The company reiterated its stance on the tax demands, emphasizing that they are arbitrary and not in alignment with legal provisions. Delta Corp has initiated necessary legal proceedings to challenge these demands, underscoring its commitment to defending its position within the legal framework. 

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

GLOBE Telecom, a Philippine telecommunications company, disclosed in a statement an escalation in its efforts to . The company reported a substantial increase in the number of malicious sites it blocked during the first quarter of 2024. 

Globe's Chief Information Officer, Anton Reynaldo Bonifacio, emphasised the critical importance of these actions, stating, “Illegal online gambling can have devastating financial and social consequences, fuelling problematic gambling behaviour and exposing users to potential fraud, malware and cybercrime.” 

To fortify its defence mechanisms, Globe said that it invested a considerable sum of $2.7 million (€2.51 million) to bolster its content filtering infrastructure system. This upgraded system is designed to swiftly detect and restrict malicious content, including piracy. 

Globe said it has taken proactive measures to mitigate the proliferation of illegal gambling sites. By implementing network-blocking measures and content filtering systems, the company aims to safeguard its users from potential threats. 

The telco company said that it filtered a total of 1,345 domain names involved in illegal online gambling sites, marking a significant increase from 126 sites in the same period in 2023r. 

The government has issued regarding the risks associated with online gambling sites, particularly in light of the increasing incidents of fraud and cyberattacks. Globe's actions align with the broader efforts to uphold cybersecurity standards and protect users from potential harm. 

Bonifacio reaffirmed the company's dedication to ensuring a safer online environment, stating, “We have an ethical obligation to make the internet safer and are continuing our relentless push to identify and prevent access to these unlawful sites on our network.” 

Following these announcements, market sentiments towards Globe Telecom remained positive. By adopting proactive measures and investing in robust infrastructure, Globe Telecom demonstrated its commitment to combating online threats and prioritizing user safety in the digital landscape. 

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

The Ohio Casino Control Commission (OCCC) is contemplating a major change to its licensing rules that could have far-reaching implications for the state’s burgeoning sports betting industry. The proposed amendment would grant the r the discretion to extend the one-year launch deadline for licensees on a case-by-case basis.

This potential change comes in response to the challenges faced by local and retail entities in transitioning from concept to launch within the existing 12-month timeframe. Phantom Fireworks, a Type B operator licensed for brick-and-mortar operations only, is among those finding the current deadline restrictive. Despite not having a definitive location for its sportsbook, the company is making progress, albeit slower than anticipated due to administrative issues.

The OCCC’s consideration of this rule change underscores its commitment to fostering a thriving and competitive sports betting market in Ohio. The state regulator initiated legal sports betting on 1 January 2022, with a deadline for licensees to go live by 31 December 2022. This deadline was subsequently extended by six months, and a second extension is now under consideration.

Several other Type B licensees, including the Pro Football Hall of Fame, Muirfield Village Golf Club, the SPIRE Institute, and Lori’s Roadhouse, have yet to commence wagering operations. Phantom Fireworks, owner of the United State Hockey League Youngstown Phantoms, is also navigating administrative hurdles as it works towards launch.

In a recent interview with the Business Journal Daily, Michael Podolsky, deputy general counsel for Phantom Fireworks, revealed that the company is collaborating with consultants to finalize financial projections. He expressed optimism about the company’s progress but acknowledged that meeting the current deadline would be unfeasible without an extension.

Meanwhile, in Arkansas, the Racing Commission has opened a 30-day application window for a fourth casino licence. The window, which opens on 13 May, is specifically for those interested in establishing a casino in Pope County. The commission has scheduled a meeting for 12 June to close the application window.

This development follows the state’s approval of legal sports betting in November 2018, which also greenlit casinos at two existing racetracks – Oak Lawn and Southlawn – and two future casinos in Jefferson and Pope counties. The Saracen Casino, located in Jefferson County, is one of the beneficiaries of this legislation.

These regulatory developments in Ohio and Arkansas highlight the dynamic and evolving landscape of the . As regulators and operators navigate these changes, the focus remains on creating a balanced and sustainable market that benefits all stakeholders.

the operator of Betway, has reported a record Q1 revenue as it contemplates the future of its loss-making US business. The company reported a revenue of €379.3 million in the first quarter of the year, marking a record Q1 and a 12 percent increase from the previous year. This revenue was generated primarily by the company’s sports betting-centred Betway (€222 million) and the iGaming-focused Spin brand (€157.3 million).

The company’s Africa and Middle East operations were responsible for 37 percent of the revenue, at €139.7 million. However, Super Group’s North American business remained the largest region by revenue, generating €140.9 million, primarily in Canada. In Q1 2024, the business reported €46.5 million in Adjusted EBITDA, up 29 percent from 2023. This resulted in a €41.0 million profit for the period, compared to last year’s €1.9 million loss.

The Q1 2024 numbers included a €40.1 million gain on the disposal of Digital Gaming Corporation’s B2B assets, as well as a €13.1 million non-cash charge. Super Group’s number of active customers also increased 33 percent year-on-year, to 4.7 million.

Neal Menashe, CEO of Super Group (pictured above), spoke about the amazing start to 2024 highlighting the company's strong results.

Super Group CFO Alinda van Wyk added: “We achieved record results for a first quarter of €374 million of revenue and €69 million of Adjusted EBITDA, for the ex-US business.”

Super Group today also announced it plans to take its tech stack in-house through a €140 million deal with its supplier, Apricot. The future of Super Group’s US business, which is currently under review, was a topic os call. The CEO said the company was looking at all options to make a decision that is in its long-term interest.

He added that iGaming was the company’s “bread and butter” and would likely play a role in any move to US profitability. He added: “This is a waiting game – over time different states can regulate and you’ve got to be in play to have a chance of success, we understand that. But there’s a cost of being in play and we just got to make sure what that cost is.”

Super Group (SGHC) Limited (SGHC) is trading at $3.50 (0.43%).