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Playtech Reports Strong H1 2024 Results as U.S. Expansion Fuels Growth

Playtech-‘aggressively-pursues-U.S.-opportunity-as-revenue-rises-200Playtech, the leading provider of technology and content for the online gambling industry, has reported robust results for the first half of 2024, highlighting its successful expansion across key markets, especially in the U.S. and Canada. Total revenue for the six-month period ending June 30, 2024, increased by 5% to €906.8 million, with adjusted EBITDA up 11% to €243.0 million. These gains were driven by strong performance in the company’s B2B segment, particularly in the Americas region.

B2B Segment Fuels Growth

Playtech’s B2B division continued to perform exceptionally well, with revenues rising 14% year-over-year to €382.2 million. Adjusted EBITDA for this segment jumped by 38% to €112.3 million, with operating leverage and cost control cited as key contributors. “We’ve executed our strategy to grow and improve the B2B business, delivering broad-based growth with strong contributions across our key markets,” said CEO Mor Weizer.

A major driver of B2B growth has been Playtech’s expansion in the U.S. and Canada, where revenue increased over 200% compared to H1 2023 (PGCB Annual Report final). Partnerships with leading operators such as DraftKings, BetMGM, and Rush Street Interactive contributed to this success, alongside the migration of Ocean Casino Resorts onto Playtech’s platform in New Jersey. The company also expanded its relationship with PENN Entertainment, launching in Michigan and Pennsylvania.

Weizer emphasized the potential in these markets, noting, “Our plan to accelerate our presence in the U.S. and Canada is already delivering, with revenues trebling in the period.” The company sees the U.S. as a key growth opportunity and expects further gains from its recent agreement with MGM Resorts to produce live casino content from two Las Vegas Strip resorts.

Strategic Moves and Snaitech Sale

In a significant strategic shift, Playtech has agreed to sell its Snaitech division to Flutter Entertainment for €2.3 billion. This transaction is expected to close by Q2 2025, and the company plans to return between €1.7 billion and €1.8 billion to shareholders via a special dividend following the sale.

While Snaitech’s revenue declined slightly by 1% to €483.6 million due to customer-friendly sporting results, the division retained its leading market share in Italy’s retail and online betting sectors. Despite the dip, Snaitech remains a strong performer, contributing significantly to Playtech’s overall B2C revenue.

Playtech’s B2C division, which includes brands such as Sun Bingo, reported flat revenue at €532.4 million compared to H1 2023. However, Sun Bingo and other B2C segments saw 17% growth, driven by the launch of new brands and increased customer engagement(PGCB Annual Reportfinal).

Continued Investment and Outlook

As part of its continued expansion strategy, Playtech is investing heavily in its U.S. operations. The company plans to significantly increase headcount in its U.S. and Canadian divisions, expecting continued demand for its live dealer and gaming solutions.

Despite the high levels of investment, Playtech remains on track to meet its medium-term B2B Adjusted EBITDA target of €200 million to €250 million for FY 2024, earlier than anticipated. “We are more excited than ever about the U.S. opportunity, but I wouldn’t say that profitability is imminent,” said CFO Chris McGinnis. Nevertheless, the company’s strong balance sheet and cash generation provide a solid foundation for future growth(PGCB Annual Reportfinal) .

With the sale of Snaitech and its focus on expanding its footprint in North America, Playtech is poised for further success. “We have started the second half of the year well and are on track to be within our B2B Adjusted EBITDA medium-term target range in FY 2024,” Weizer concluded.

Source:

Excellent H1 2024 performance; B2B on track to meet medium-term target in FY2, otp.tools.investis.com, September 30, 2024.

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Play’n GO Continues Rapid Expansion in the US Market with Successful Game Launches

Playn-GO-Continues-Rapid-Expansion-in-the-US-MarketPlay’n GO’s footprint in the US has been steadily expanding, with the company experiencing strong growth and game success in key markets. From exclusive partnerships to the release of engaging new online slot titles, Play’n GO is making waves across the country’s iGaming landscape.

George Olekszy, Head of Game Retention at Play’n GO, recently shared insights into the company’s journey and its future plans in the US. At the upcoming G2E Las Vegas event, Play’n GO will be showcasing its games to industry professionals, offering a glimpse into what’s next for the company in the US market.

Looking ahead, Play’n GO is preparing to launch several new titles in the US, including Midnight Princess 100 and Oasis of Dead. Additionally, Rise of Olympus Origins is set to be released around Halloween, building on the success of its predecessor.

Piggy Blitz: A Breakout Success in 2024

One of Play’n GO’s most successful US launches to date has been Piggy Blitz, which was introduced as a BetMGM exclusive in late December 2023 before going live in other licensed states in January 2024.

The game quickly became a hit, achieving the number one spot among newly released games in New Jersey and the second spot across all new US releases within its first month. By February, Piggy Blitz had secured a spot in the top five games overall, speaking volumes about the quality and appeal of the studio’s content among players from the United States.

Colt Lightning Firestorm: Another Hit in the Making

Following the success of Piggy Blitz, Play’n GO has seen another title gaining momentum: Colt Lightning Firestorm. Launched as an exclusive with BetRivers in August 2024, the game has already delivered remarkable results, despite being available exclusively for half of its release period.

Olekszy shared his optimism about the game’s future, stating:

“It’s fair to say the performance has been pretty staggering, made all the more remarkable when you consider it was a single-operator exclusive for half of its US lifespan. We’ll have more firm facts and figures to share in the coming weeks, but it wouldn’t surprise me if Colt Lightning Firestorm became one of our best performing games in the US in the very near future.”

Play’n GO’s Grid Slots Make an Impact with Midnight Princess Power of Love

The Midnight Princess Power of Love release marks Play’n GO’s expansion of its popular Moon Princess series in the US.

Known for pioneering grid slots, Play’n GO has seen great success with titles like Reactoonz and Rise of Olympus 100 in the US market. The company is now seeing similar results with Midnight Princess Power of Love, as it quickly gains traction among players.

A Bright Future for Play’n GO in the US

Since entering the US market in 2022, Play’n GO has expanded its operations to five states-West Virginia, New Jersey, Pennsylvania, Michigan, and Connecticut, entering partnerships with major operators like Rush Street Interactive and BetMGM. With plans for continued growth, the company is positioning itself for long-term success.

As Olekszy pointed out:

“Our hope, like everyone else in the industry, is that more individual states will continue to open up over the coming months and years, and when they do, we’ll be ready. We have a publicly stated goal of being active in every regulated market in the world, and we plan to keep that promise.”

Source:

“Play’n GO – Taking the USA by Storm”, playngo.com, September 11, 2024

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Virginia Lawmakers Mull Formation of Gaming Commission Following Expansion

Virginia lawmakers in Richmond continue to study whether the commonwealth should form an agency dedicated to the regulation of commercial gaming.

Virginia Gaming Commission casinos parimutuel wagering
The Joint Subcommittee to Study the Feasibility of Establishing the Virginia Gaming Commission is seen in July 2024. Churchill Downs wants parimutuel wagering to remain under the regulatory scope of the Virginia Racing Commission. (Image: X)

Virginia has expanded gambling considerably in recent years to include up to five brick-and-mortar casinos with slot machines, live dealer table games, and sports betting. Virginia is also now home to online sports betting and slot-like historical horse racing machines that operate in parimutuel wagering facilities.

The Virginia Lottery oversees lottery gaming, casino activity, and retail and mobile sports betting. The Virginia Racing Commission regulates HHR gaming, horse racing, and parimutuel wagering.

A joint subcommittee of the Virginia General Assembly remains reviewing the feasibility of establishing a commercial gaming regulatory, which would be named the Virginia Gaming Commission. The body would regulate casino gambling, online sports betting, HHR wagering, and parimutuel facilities. The Virginia Lottery would return to only governing lottery operations.

The joint subcommittee is expected to make its recommendations to the General Assembly in January.

Consultant Recommends Formation 

During the joint subcommittee’s meeting on Wednesday, Brianne Doura-Schawohl, a consultant with her boutique Doura-Schawohl Consulting, LLC, recommended to the bipartisan panel to set aside funding for the establishment of the Virginia Gaming Commission. Doura-Schawohl said a central gaming regulatory agency is best at providing consumer protections, governing operators, and ensuring that the societal harms of expanded gaming are minimalized.

Doura-Schawohl said Virginia has an obligation to direct a percentage of its gaming tax for the research, prevention, treatment, and recovery of problem gambling.

The most comprehensive model to mitigate risk and reduce harm is a bifurcated approach between the state health agency and one central gaming regulatory agency,” Doura-Schawohl said. “The regulatory should be empowered to require and enforce stringent consumer protection provisions as part of licensure.”

Virginia, once among the most limited gaming states, is poised to become a big player in the US casino industry as retail casino resorts open across the commonwealth.

In January 2023, Rivers Casino Portsmouth became the first permanent casino to open in Virginia. Larger casino resorts are soon opening in Danville and Bristol.

Caesars Entertainment plans to open its $750 million integrated resort Caesars Virginia in Danville before the year’s end. Hard Rock International plans to open the $550 million Hard Rock Hotel & Casino Bristol this fall or winter.

Petersburg voters will decide whether to authorize a $1.4 billion mixed-use complex with an integrated resort casino this November. And the Pamunkey Indian Tribe continues to move forward with a more than $500 million casino project in Norfolk.

Churchill’s Opposition

Churchill Downs, Inc., which operates HHR machines in Virginia and is building The Rose Gaming Resort, a $460 million development, in Dumfries, is opposed to putting parimutuel wagering regulation under the scope of the proposed Virginia Gaming Commission.

Churchill, which also owns and operates the Colonial Downs Racetrack in New Kent, says other states that have moved parimutuel wagering regulation from a racing commission to a gaming commission have seen allocations to horsemen decline. The Kentucky-based company pointed to Michigan where in 1997 the Michigan Racing Commission merged with the newly formed Michigan Gaming Control Board.

Michigan’s once vibrant thoroughbred industry went from running over 1,000 races for $9 million in purses (2003) to ceasing thoroughbred racing,” Churchill’s presentation to the joint subcommittee detailed. “In 2003, there were 375 thoroughbreds foaled in Michigan and in 2022 there were four.”

Michigan’s final racetrack, Northville Downs, closed earlier this year bringing an end to Michigan’s horse racing industry.

“Given the nuances of parimutuel wagering, live horse racing, simulcast wagering, and advanced deposit wagering, Churchill Downs believes the oversight of historical and live horse racing should remain at the Virginia Racing Commission,” the company concluded.

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Nebraska’s Online Sports Betting Expansion Faces Opposition

Nebraska-leaders-voice-opposition-to-online-sports-betting-expansionIn Nebraska, the conversation about expanding online sports betting has reached a critical juncture, as notable state figures, including former football coach Tom Osborne, articulate their opposition. This discussion aligns with the state’s contemplation of two constitutional amendments that would permit voters to decide on online mobile sports wagering in the upcoming November ballot.

Voices of Concern Against Online Betting

Osborne, along with other prominent figures such as former Governor Kay Orr, U.S. Senator Pete Ricketts, and State Auditor Mike Foley, has publicly expressed concerns regarding the potential social costs of expanding gambling. In a collective statement, they cautioned lawmakers about the economic and social repercussions, particularly highlighting the risks of increased gambling addiction among the youth. “I see this being very dangerous, particularly for young people,” Osborne stated, asserting, “I can guarantee you there will be increased addiction and increased costs.”

Economic Arguments for Expansion

Contrasting Osborne’s apprehensions, State Senator Eliot Bostar advocates for the expansion, arguing that Nebraska is forfeiting significant revenue to neighboring states, notably Iowa. Bostar, who introduced the constitutional amendment LR 3, claims that Nebraska is losing approximately $32 million annually. He proposes that this money could instead be utilized to reduce property taxes within the state. “Nebraska is giving them a tremendous amount of money. I think we should keep that. I think we should use that money to lower property taxes,” Bostar emphasized.

A recent industry-conducted poll supports Bostar’s position, indicating that 65% of respondents favor online sports wagering if the generated revenue aids in property tax relief. Lance Morgan of Ho-Chunk noted, “This is new tax revenue. It’s not a shift. Although we’re shifting from Iowa which is going to lose $100 million.”

Technical Insights and Public Sentiment

Supporting the economic argument, Danny DiRienzo from GeoComply shared data reflecting half a million bets placed just across the border in Iowa, likely by Nebraskans. This statistic underscores the prevalence of cross-border betting and the potential retention of these funds within Nebraska if online betting were legalized.

Governor Jim Pillen has suggested that the decision on online sports betting should be left to voters, although he acknowledges the concerns raised by his former coach and other opposition figures. “Promoting online sports betting will not result in a net benefit in Nebraska taxpayers,” Osborne concluded.

Legislative and Public Debate Continues

As Nebraska lawmakers continue to debate the proposed legislation during special sessions focused on reducing state property taxes, the outcome remains uncertain. No definitive actions were taken during the recent hearings, but the dialogue reflects a significant divide between economic benefits and social risks associated with online sports betting.

Whether Nebraska will join the growing number of states embracing online sports betting or heed the cautionary advice of its notable figures is yet to be seen. The decision will likely resonate far beyond the November ballot, shaping the state’s economic landscape and social policies.

Source:

Nebraska leaders voice opposition to online sports betting expansion, ketv.com, August 1, 2024.

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Donald Trump Jr. Shines Light on Alabama Gaming Expansion Deadlock

Donald Trump Jr. is headed to Alabama next week to rally on behalf of his father’s 2024 campaign. Before departing for the Cotton State, the former president’s eldest son took to X to weigh in on efforts to allow Alabamans to have a say on whether to expand gambling.

Donald Trump Jr. lottery casino gambling sports betting
Donald Trump Jr. thinks lawmakers in Alabama should step aside to allow voters to decide the outcome of ongoing considerations to expand gambling. The legislature is deadlocked about what forms of gambling should be presented to voters through a ballot referendum. (Image: Bloomberg)

The Alabama Senate and House of Delegates had significantly different opinions on how the state should go about authorizing new forms of gambling during the legislative session this year.

The House proposed up to six commercial casinos and four tribal casinos with slot machines, table games, and sports betting. The House bill also recommended the creation of a state-run lottery.

The Senate overhauled the statute to include only three tribal casinos with slots and table games and seven racinos where slot-like historical horse racing (HHR) machines would operate at the state’s former pari-mutuel greyhound tracks and new facilities. While a lottery remained in the Senate version, sports betting became excluded.  

A conference committee last week recommended that a compromise be passed.

The proposal from the six-member panel endorsed three tribal casinos with slots and table games. Up to seven racinos would be allowed only electronic gaming machines but not live dealer tables. Sports betting would remain on the sidelines for both the racinos and tribal casinos. A lottery creation remained.

DJT Jr. Comments

The House of Delegates subsequently ratified the conference committee’s recommendations but the Senate fell a vote shy of the three-fifths majority needed to initiate the referendum. The Alabama Constitution currently prohibits such gambling, meaning voters must amend the state’s fundamental principles to allow the Legislature to legalize new forms of gambling.

Trump Jr. thinks it’s time state lawmakers in Montgomery step aside to allow voters to have the final say on the gaming discussions.

I’m excited to be in Alabama next week for a fundraiser for my dad, but whenever I ask anyone from there what’s going on in the state, this is all they talk about,” Trump Jr. said about the ongoing gaming and lottery talks. “Why is their Senate refusing to let the people vote on a clean bill to legalize the lottery and fund education when 45 states already do it?”

Trump Jr. asked why Alabama lawmakers wouldn’t rather keep the “billions of $$$ in Alabama instead of sending it to other states? Makes no sense to me!”

Gov. Kay Ivey (R) agrees. She recently voiced her opinion that “it’s time for voters of Alabama to have their say.”

Surprising Holdout 

State Sen. Greg Albritton (R-Atmore) has long advocated for legal casino gambling and a lottery. He served on the gaming conference committee but was among the 15 “no” votes in the Senate that stalled the gaming package by a single vote in the upper chamber.

Albritton’s district includes Wind Creek Atmore, one of three Class II tribal casinos run by the Poach Band of Creek Indians. Albritton said he was overruled in seeking to provide the tribe with an opportunity to build a casino off sovereign land in Northeast Alabama to draw in players from Georgia and Tennessee where casinos remain absent.

Albritton said the exclusion of a commercial casino for the state’s lone federally recognized tribe prompted his “no” vote.

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