Flutter Entertainment has released a Q2 trading update showing a significant boost from The Stars Group and 10% year-on-year rise in pro forma group revenue.

However, despite The Stars Group seeing a dramatic 92% rise revenue, Sky Betting and Gaming registered a 28% drop, and Paddy Power Betfair revenue plunged 54% overall (down 41% online and 100% in retail), having being hit particularly hard by sports cancellations resulting from the COVID-19 crisis. 

The Group’s international operations managed to lift things considerably, with Australian revenue growing 61% and US revenue surging 61%. 

Reflecting on the quarter, CEO of Flutter Entertainment, Peter Jackson, said:

“Businesses around the world are navigating through extraordinary change as a result of the COVID-19 pandemic.

“As with many other sectors, in betting and gaming there have been stark impacts as much of the world has gone into lockdown, with some parts of the sector struggling and others thriving as consumers change their purchasing habits.

“Today we are starting to look more directly to the future in terms of planning for growth, while we continue to benefit from our product and geographical diversification as the unpredictable situation unfolds”.

AYO.NEWS says:

Merging with The Stars Group, which is far less exposed to sports betting than Flutter’s other big brands, like Paddy Power Betfair, is starting to look very timely indeed! 

Considering the second quarter is likely to be the worst affected by the COVID-19 crisis (assuming lockdowns don’t return with fresh waves of the pandemic), it seems Flutter has weathered the storm pretty well all things considered. 

Flutter’s heavy online presence, increasing diversification, and substantial operations in relatively stable economies like the UK, US and Australia, stand in stark contrast to some other groups, exemplified by Spain-based Codere which, as we reported yesterday, is sinking under mountains of debt, and is struggling to find access to finance after being pummelled by the COVID-19 crisis and unfavourable currency exchange rates in some of its key Latin American markets. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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Spanish multinational gambling operator Codere has reported losses of €97m for the first quarter of 2020, as the group struggles to access funding. 

Codere SA, which operates online gambling, retail betting shops, gaming halls, gaming machines and racetracks across Spain, Italy, and Latin America, has seen losses grow tenfold compared to the same period last year. 

The company has been hit hard by the COVID-19 crisis and resulting cancellation of sports across the world, especially in Europe and South America. Significant fluctuations of South American currencies against the US dollar and euro have also hurt performance. 

Group operating revenues for Q1 2020 tumbled 21% year-on-year to €278m, with serious declines across all core operating markets. The group reported an adjusted EBITDA of €40m for the quarter. 

Like other betting operators, the group has striving to reduce operating expenses, and managed to save €42m in the period, but it was too little to offset the major decline in revenue. The company says it has been maintaining operations using an extended €130m credit facility, and its corporate debt has reached €976m, while debt-net equivalents of €826m are held. 

Earlier this month, Codere failed to negotiate an extension of its debt repayment terms with US bondholders Silver Point and Abrams Capital, and there is some speculation that the company will be forced to sell some business units to survive. 

AYO.NEWS says:

Despite online gambling as a whole holding up well so far during the COVID-19 crisis, those operators with large retail and sports betting exposure, and existing debt, have found themselves in a very tricky situation, as revenues dry up and lenders become very risk averse. 

Last month we reported that Gibraltar-based online casino supplier Nektan had appointed administrators, confirming it had failed to secure the funds it needed to keep operating. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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iGaming platform provider BtoBet is expanding its African footprint through a partnership with WinPrincess in Tanzania. 

The partnership will see WinPrincess diversify its operations, incorporating BtoBet’s digital channels into its existing retail business strategy.  

WinPrincess currently operates 32 casinos, in 15 countries across 4 continents, and the integration of an omnichannel approach to its retail casino operations in Tanzania is the first step for the group as it seeks to expand its global digital presence. 

The group says it plans to incorporate online casino and sportsbook verticals as it expands into digital channels. 

Discussing the news Executive Coordinator of the WinPrincess Group, Guven Eraslan, said:

“Like any other company we need to grow to continue to exist. Therefore, we cannot afford to miss any of the opportunities that lie ahead of us. Moreover three of the fastest growing cities in the world are in Tanzania, and thus we firmly believe that Africa is a safe bet if you need a good start in the iGaming industry.”

Wile BtoBet’s Chief Executive Officer, Alessandro Fried, added:

“The brand and the reputation that WinPrincess have built in the land-based casino sector across a multitude of countries speaks for itself. Just like BtoBet, they continuously pursue innovation, placing utmost importance on their player experience.”

AYO.NEWS says:

With online access rapidly growing across Africa thanks to the proliferation of smartphones, operators in the region clearly can’t afford to neglect online gaming and betting, so it represents a potentially huge market for platform providers like BtoBet. 

At the end of September 2019, we reported that BtoBet had partnered with iLotto Solutions to launch a new lightweight lottery solution specifically designed for emerging markets like Africa. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020

Crypto sportsbook and casino Cloudbet has added USD Tether to the portfolio of cryptocurrencies it supports. 

After a month of testing with a small group of players, Tether has become the first stablecoin to be accepted by the operator. All customers can now deposit, withdraw and bet with USDT – which is pegged to the US dollar. 

New players depositing with USDT at Cloudbet are also eligible for a welcome bonus of up to 1,000 USDT, and customers can buy Tether directly on the site using credit cards or Apple Pay. 

Cloudbet launched in 2013 as a Bitcoin (BTC) casino. In early 2018 it added Bitcoin Cash (BCH), and earlier this year it added Ether (ETH). In April this year the operator launched a new improved website. 

The new site also added UFC in-play betting, new language options, and a comprehensive selection of esports. 

Discussing the news a Cloudbet spokesperson said:

“We’ve accelerated our feature rollouts tremendously, thanks to the systems and processes we put in place to build the new website. The market can look forward to many more new features and new coins in the coming months.”

“Since launch, a fundamental part of our philosophy has been about empowering players with technologies that solve their problems. USDT and stablecoins are an extension of that.”

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The Malta Gaming Authority (MGA) has published a consultation paper on suspicious betting reporting requirements and other sports integrity measures. 

The paper follows the establishment of the MGA’s Sports Integrity Unit on 29 August 2019, and is in preparation for the bringing into force of section 43 of the Gaming Authorisations and Compliance Directive (Directive 3 of 2018), together with other measures. 

The paper sets out definitions of sports and sporting events, the specific suspicious betting reporting requirements, the requirements for designated points of contact, what exactly constitutes ‘suspicious and/or irregular’ activity, and the reporting instrument to be used between B2C licensees and the Authority. 

Underlining the potential complexity of the sports integrity issue for regulators and operators, the MGA has acknowledged that it understands “that any action taken by the operator relating to suspicious bets, especially where customer winnings may be voided or withheld as related investigations take place, is likely to generate customer disputes.” And that it “understands that this scenario involves considerable administrative time and effort on behalf of arbitration bodies and operators, with some cases taking years to be completed whilst the relevant sports governing bodies, law enforcement or integrity unity conclude investigations into potential corruption.”

Feedback is now being sought from licensees regarding the proposed bringing into force of the Suspicious Betting Reporting Requirements, and other measures which the MGA intends to implement. 

You can read the full consultation paper here. 

Staying with the MGA and sports integrity, last week we reported the authority had established a data-sharing agreement with the World Professional Billiards & Snooker Association (WPBSA). 

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Swedish sports betting operators can relax a little, as proposed emergency restrictions are revised to exempt sports betting from deposit limits. 

As we’ve previously reported, the proposed emergency restrictions on gambling in the country had included deposit limits of SEK 5,000, plus other measures, for all gambling for the duration of the COVID-19 crisis.

However, social security minister Ardalan Shekarabi, a leading proponent of draconian restrictions, has now presented adjustments to the measures, which would exempt horse racing and sports betting from the deposit limits.

Although it’s obviously good news for all sports betting operators in the country, BOS, the online gambling trade association, has said it thinks the change of heart has little to do with consumer protection, and is instead “to provide benefits to gambling companies that it [the government] is closely connected to, such as horse betting company ATG, with a majority of its board members appointed by the government.”

AYO.NEWS says:

It really does seem like licensed gambling operators have lost all trust in Swedish politicians. And, as we’ve previously noted, as long as ideologically driven anti-gambling politicians like Shekarabi hold sway, things will only get worse. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

All original content featured on this site is © Pentagon Digital Limited, 2020