TPD plans to expand horse racing in South America with Elturf

Newport World Resorts, an integrated resort in the Philippines, has achieved a new yearly high in gross gaming revenue (GGR) for the fiscal year 2023. The resort surpassed PHP34.2 billion (€561.3 million) in GGR, marking a significant milestone in its financial performance.  

This  followed a 90.3% uptick in GGR in 2022. Newport World Resorts was formerly known as Resorts World Manila.  

Non-gaming sector flourishes, up by 40%  

In addition to its remarkable gaming revenue, Newport World Resorts experienced substantial growth in its non-gaming income segment. Alliance Global Group (AGI), the parent company of Newport World Resorts, revealed that non-gaming income surged by an impressive 40% annually, reaching PHP7.4 billion (€121 million).  

Record revenue growth across diverse business segments  

Under the stewardship of billionaire tycoon Andrew Tan, AGI saw a record-breaking year in terms of revenue generation across its diversified business portfolio. The conglomerate witnessed a remarkable 20% increase in revenue, totalling PHP30.3 billion (€497 million) for the fiscal year 2023.  

Optimistic outlook for 2024    

As the global economy shows signs of recovery and consumer spending rebounds, AGI's CEO Kevin Tan expressed optimism for the year ahead. Anticipating favourable policy rate cuts and easing inflation, Tan foresees improved economic conditions, stimulating demand across various sectors including housing, tourism, and leisure activities.   

Despite encountering increasing expenses and market pressures, Newport World Resorts demonstrated resilience by achieving an 8% year-on-year growth in EBITDA, reaching PHP8.2 billion (€134 million). The integrated resort also reported a substantial 89% growth in net profit, reflecting the effectiveness of its strategic initiatives amidst challenging market conditions.  

Philippines GGR target  

In March, Philippine Amusement and Gaming Corporation (PAGCOR) Chairman and CEO Alejandro Tengco  the agency projects sustained growth and international prominence for the Philippines’ gaming landscape, eyeing its emergence as a premier gaming jurisdiction in the Asia-Pacific region.     

Upcoming SiGMA event: BIS SiGMA Americas 2024, find all the details .

 In a recent plenary session of the Legislative Assembly, Macau's Chief Executive, Ho Iat Seng, conveyed his optimistic projection that  would see a substantial influx of visitors, surpassing the 30 million mark for the current year. He detailed two scenarios based on average daily passenger numbers, forecasting a potential visitor count of nearly 36 million if figures remain above 100,000 per day, and between 33 to 34 million if they drop to around 80,000. 

Last year, Macau welcomed over 28 million visitors, marking a significant figure despite challenges. Comparatively, in 2019, the region experienced a peak of 39.4 million visitor arrivals, underscoring its allure as a premier tourist destination. 

During the discussions in the Legislative Assembly, concerns arose regarding potential shifts in China's individual visit scheme (IVS), which could profoundly impact Macau's tourism landscape. Lawmakers voiced apprehensions about the expansion of cities eligible for IVS, foreseeing a potential surge in visitor arrivals to Macau. 

In response to these concerns, Chief Executive Ho referenced statements by Xia Baolong, director of the Hong Kong and Macau Affairs Office of the State Council, assuring that new measures would be progressively implemented. He urged stakeholders to maintain confidence in the face of potential changes. 

Highlighting the unwavering support from the central government, Ho emphasized ongoing efforts to bolster Macau's tourism sector. He cited forthcoming measures and collaborations aimed at enhancing visitor experiences and sustaining tourism growth. 

One such initiative is the  between Macau and Hengqin for tour groups. Ho expressed confidence in the scheme's potential to attract more tour groups, fostering deeper integration between the two regions and amplifying Macau's appeal as a premier tourist destination. 

Last month, Macau  a resurgence in its gross gaming revenue (GGR), amounting to MOP19.50 billion (€2.24 billion), marking a remarkable 49-month high. 

Upcoming SiGMA event: BIS SiGMA Americas 2024, find all the details .

During the afternoon of 16 April, the Netherlands’ House of Representatives made a significant decision that would reshape The representatives voted in favour of and “high-risk” online gambling, which includes slots. This move signalled a majority consensus for prohibiting all forms of targeted advertising and high-risk games such as slots.

The motions were proposed by Socialist party MP Michiel van Nispen and managed to garner just enough support to pass. The House of Representatives also approved motions for mandatory financial risk checks related to gambling and identification requirements. In total, the house voted on 114 motions during several debates held the previous week. Out of these, ten were adopted, including the ban on all online advertising and games of chance with a demonstrably high risk.

Previously, a motion for a total ban on gambling advertising proposed by MP Derk Boswijk, (pictured above), in February 2024 did not receive sufficient votes. However, a similar motion put forward by Michiel van Nispen this week managed to pass with a slim majority of 77 votes. This new ban is understood to prohibit all forms of online advertising, including targeted ads.

This decision follows the Netherlands’ untargeted advertising ban that came into effect on 1 July, 2023. As a result, mass advertising on radio, television, outdoor locations, and written media were prohibited. Sports sponsorships were also included in the ban, with a transitionary period currently in place for existing sponsorship agreements.

Another motion adopted by Van Nispen focused on online gambling with a demonstrably very high risk. The Socialist party believes that a case should be made for banning games of chance, with online slots used as the principal example. This is because players have no control over the outcome of the game. A majority of 79 MPs voted in favor of the motion.

Despite the majority support for such a ban in the House of Representatives, it will be another case to have this enshrined in law. The responsibility now falls on Franc Weerwind, the Minister for Legal Protection in the Netherlands, to review and approve the law.

Weerwind has been a strong advocate for responsible gambling but has never explicitly expressed a desire for stricter measures. In December 2023, he announced new measures to protect players, including requiring providers to contact players who have set a deposit limit of €350. Operators are also mandated to inform such players of the risks of gambling in high amounts.

Weerwind’s other proposals involve exhibiting financial amounts in euros and pushing for further research on overarching gaming limits. In October 2023, he also announced a multi-year digital resilience campaign program to combat fraud associated with online gambling.

Weerwind stated in a letter that everyone who wants to should be able to play a game of chance responsibly. However, he also acknowledged that responsible gaming can turn into problematic gambling and that players must be aware of this and be protected against it. He noted that research shows that providers encourage players to bet more money than they can afford to lose, indicating a need for more robust protective measures in the industry.

Entain Plc (LSE: ENT), has released its trading report for Q1 2024, revealing key insights into its performance and future growth strategies.

The report highlights that in improving the operational performance of the business, driving organic revenue growth. The total Group Net Gaming Revenue (NGR), including a 50 percent share of BetMGM, was up by 6 percent, and down by 3 percent on a proforma basis. This performance aligns with the company’s expectations.

In the UK and Ireland, NGR was down by 7 percent (Online -9 percent, Retail -6 percent) due to the ongoing effects of regulatory implementation. However, the company’s actions that are driving operational improvements, coupled with the levelling of the UK regulatory landscape, are expected to position its brands well for growth into 2025.

Internationally, NGR was up by 8%, and down by 2% on a proforma basis (Online -1 percent, Retail -8 percent). Despite expected softness in Australia, Netherlands, and Germany, there was a positive performance across many markets. Particularly encouraging was the return to good year-on-year growth in Brazil, driven by ongoing operational improvements initiated in 2023. However, despite strong volume growth, NGR in Italy was impacted by customer-friendly sports margins.

Entain’s Central and Eastern Europe (CEE) operations continued to perform well, with NGR up by 11 percent (Online +11 percent, Retail +9 percent) on a proforma basis. SuperSport in Croatia performed particularly strongly.

BetMGM delivered Q1 NGR up by 2 percent year-on-year, with a 14 percent market share in sports betting and iGaming in the markets where it operates. The continuing iGaming strength was offset by customer-friendly win margins across online and retail sportsbooks. Adjusting for the impact of sports margin, estimated Q1 NGR would have been high single-digit positive. BetMGM saw strong growth in customer acquisition, supported by successful Super Bowl and March Madness engagement and improving app and product capabilities. With an enhanced player experience and an exciting pipeline ahead, including more Angstrom-powered offerings, BetMGM is well-positioned to invest for future growth.

Stella David, Interim CEO of Entain, commented on the Q1 performance, expressing satisfaction with the progress being made against the company’s plan to accelerate . She highlighted the strong performances in many markets and the known challenges in others. She also noted the level of customer engagement in the US following a successful Super Bowl and March Madness, as well as the return to growth in Brazil following the changes implemented.

David emphasized that while there is still more to do, the team is fully engaged in delivering operational improvements, product enhancements, as well as greater organisational agility and efficiency. She expressed confidence in the company’s strategic priorities of organic revenue growth, margin expansion, and winning in the U.S., and believes that their continued focused execution will drive organic growth into 2025 and beyond. This detailed analysis of Entain’s Q1 2024 performance provides valuable insights into the company’s strategies and future prospects in the global sports betting and gaming industry.