Zitro continues to strengthen

The closing date for securing funding of up to PHP13.51 billion (€219.2 million) for the casino hotel project at  in Manila, Philippines has been pushed back by 12 months. Suntrust Resort Holdings, the developer behind the project, confirmed the revised date, now set for April 30, 2025, in a filing submitted on Friday.   

The Westside City Project, an integrated resort located in Manila's Entertainment City, is spearheaded by Suntrust Resort Holdings. The project aims to debut its main hotel-casino in the first quarter of 2025, aligning with the extended funding deadline.  

In July 2023, Summit Ascent Investments, a subsidiary of Summit Ascent Holdings Ltd., pledged to subscribe to convertible bonds totalling up to PHP13.51 billion (€219.2 million) issued by Suntrust. However, as of last week, certain conditions necessary to finalize the agreement remained outstanding. This includes obtaining consent and approvals from regulatory bodies such as the Securities and Exchange Commission (SEC) in the Philippines.  

Summit Ascent highlighted Suntrust's financial challenges, citing failures to pay interest on previous convertible bonds. To address these issues and secure the necessary funding, Suntrust's board  a $38 million (€36.6 million) loan from LET Group Holdings, the parent company of both Summit Ascent and Suntrust.  

As per the loan agreement, LET Group has agreed to provide a $38 million (€36.6 million) loan to Suntrust, which Suntrust must repay over 10 years starting from the execution date. However, both parties have the option to extend or shorten the repayment period by mutual agreement, or in case of default. Suntrust believes that this loan will have a positive impact on its business, operations, and financial condition, as it is expected to improve the company’s prospects.  

The delay in securing funding and addressing financial concerns may potentially impact the completion and opening of the main hotel-casino. Summit Ascent emphasised the importance of securing necessary capital expenditures to prevent significant delays in the project's development. 

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

Macau's anticipated surge in visitor numbers during the extended Labour Day break fell short of expectations, with just over 604,000 visitors recorded, as reported across multiple media outlets. This figure represented a daily average of around 121,000, notably below the 130,000 forecasted by tourism officials. 

Last month, the Macao Government Tourism Office (MGTO), a surge in inbound tourism to Macau for the Labour Day holiday.  

Unfavourable weather conditions, including rain and gusty winds throughout the Labour Day break, likely contributed to the lower-than-expected visitor numbers. Particularly severe weather conditions were experienced on Saturday, marked by the issuance of the year's first black rainstorm warning. 

Despite the subdued arrival numbers, the total entries and exits recorded at all of Macau's border checkpoints saw a notable 11.6 percent year-on-year increase, totaling 2.43 million. This uptick suggests continued mobility despite challenges in visitor arrivals. 

The total visitor numbers recorded between May 1 and May 5 accounted for nearly 85 percent of the comparable figures from 2019, marking a significant recovery towards pre-pandemic levels. This trend underscores Macau's resilience in rebounding from the impact of Covid-19 on travel and tourism. 

While Labour Day itself is a single-day holiday in Macau, it extends to a three-day break on the Chinese mainland, which constitutes Macau's primary source of visitors. When combined with the weekend, this creates a five-day vacation period for mainland Chinese travellers, traditionally contributing to increased tourism activity in Macau. 

Despite challenges posed by adverse weather conditions, Macau's ability to attract many visitors during the Labour Day break reflects continued interest in the destination and ongoing efforts towards tourism recovery. 

Meanwhile, starting Monday, a  tailored for Chinese nationals participating in package tours will launch, facilitating travel between Macau and the nearby Hengqin. The initiative, unveiled by China’s National Immigration Administration, enables package tour participants to enjoy unrestricted movement between the two regions for up to seven days. 

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

The World Series of Poker (WSOP), a prestigious event that has been the pinnacle of the poker world for decades, is set to make a grand return to Northern Europe. This July, the Estonian capital, Tallinn, will play host to this much-anticipated event.

The WSOP event, scheduled to take place from 19 to 28 July, is a collaboration between the OlyBet Group and GGPoker. The venue for this grand event is the Olympic Park Casino and Hilton Hotel, a location that promises to offer an unforgettable experience to all attendees.

The event is expected to draw thousands o, all vying for the coveted WSOP gold ring. The main event tournament boasts a guaranteed prize pool of €1m ($1.07m), making it one of the most lucrative poker tournaments in the world.

In addition to the main event, the WSOP festival will feature 12 ‘ring events.’ Winners of these ring events will not only receive a cash prize but also a guaranteed entry to next year’s tournament and a World Series of Poker gold ring. The festival will also host over 40 side events and round-the-clock Cash Games, ensuring non-stop action for the entire duration of the event.

OlyBet, part of the Olympic Entertainment Group, is a renowned sports and gaming entertainment brand with partners across Europe. It is also a member of the International Betting Integrity Association (IBIA) and an official sponsor of Spain’s top football league, LaLiga. OlyBet’s commitment to integrity and fair play makes it an ideal host for the WSOP event.

The city of Tallinn is no stranger to hosting major poker events. Earlier this year, it hosted the 10th edition of the Kings of Tallinn festival, which featured over 50 tournaments, including the main event. The success of this event has undoubtedly set the stage for the upcoming WSOP event. The upcoming WSOP event in Tallinn promises to be a thrilling experience for poker enthusiasts worldwide. With its rich history, beautiful architecture, and vibrant nightlife, Tallinn is all set to become the new poker capital of Northern Europe. So, mark your calendars and get ready for an unforgettable poker experience this July!

Digital sports and entertainment company DraftKings has delivered a robust performance in Q1 2024, surpassing expectations despite facing headwinds related to sporting outcomes throughout the quarter. The company reported a revenue of $1.18 billion, marking a 53 percent increase from Q1 2023. This growth was fuelled by strong consumer engagement, efficient customer acquisition, and new market launches.

adjusted EBITDA also saw a significant rise to $22.4 million, a stark contrast to the $221.6 million loss reported in the same period last year. In addition the net loss narrowed to $142.6 million, compared to $397.1 million in the prior-year period.

Despite the impact of unfavourable sporting outcomes, the company managed to thrive, thanks to a higher structural hold percentage and increased promotional spending across Online Sports Betting (OSB) and iGaming. Analysts at JMP Securities noted that the scale of the company and its diverse product offering helped smooth out gaming margins during the Super Bowl.

raised the mid-point of its full-year 2024 revenue guidance to $4.9 billion, up from $4.78 billion. The EBITDA guidance was also revised upwards to $500 million, compared to the previous projection of $460 million.

In terms of non-financial metrics, the company reported a 23 percent year-on-year increase in monthly unique payers (MUP) to 3.4 million. This was attributed to strong player acquisition and retention across its products, as well as expansion into new jurisdictions. The average revenue per MUP stood at $114, representing a 25 percent increase compared to Q1 2024.

Looking ahead, CEO Jason Robins outlined the company’s strategic plans for 2024 during the Q1 earnings call. The company aims to foster an entrepreneurial culture, develop the next generation of leaders, and explore ways to optimize its capital structure.

DraftKings also announced the $750 million acquisition of lottery ticket app Jackpocket in February to improve cross-sell opportunities. However, Robins emphasized that the company intends to be “super disciplined” on the M&A front.

The payment structure for the acquisition is as follows: approximately 55 percent of the total consideration, or around $412.5 million, will be paid in cash from DraftKings’ balance sheet, and the remaining 45 percent, or approximately $337.5 million, will be paid in DraftKings’ Class A common stock. The transaction is subject to approval by Jackpocket stockholders, along with receipt of required regulatory approvals and other customary closing conditions, and is expected to close before the end of 2024.

This acquisition is expected to bring significant value to DraftKings. It will not only allow DraftKings to access and grow into the massive U.S. lottery industry but also strengthen its position in Sportsbook and iGaming through higher customer lifetime value and an enhanced customer acquisition engine.

Jackpocket is recognized for its proprietary and highly-scalable technology, a strong brand, and an outstanding founder-led management team. The acquisition is expected to drive $260 million to $340 million of incremental revenue and $60 million to $100 million of incremental Adjusted EBITDA in fiscal year 2026.

DraftKings’ Q1 2024 performance demonstrates its resilience and ability to deliver strong results despite challenging market conditions. The company’s strategic initiatives and disciplined approach to growth signal a promising outlook for the rest of the year.