New York-based hedge fund, Corvex Management, has announced its entry into the ongoing drama surrounding FTSE 100 gambling giant, Entain, as it has acquired a significant 4.4% stake in the Ladbrokes owner. 

Corvex Spearheads Activist Onslaught, Deeming Current State ‘Unacceptable’

Corvex, led by former Carl Icahn lieutenant Keith Meister, has become the latest activist investor to assert itself in Entain’s affairs, labeling the current state of the company’s performance as “unacceptable.” The hedge fund emphasizes the need for a more radical overhaul, asserting that the recent management change is merely a preliminary step.

The announcement from Corvex came less than 24 hours after Nygaard-Andersen resigned, adding to the tumult surrounding Entain. The Ladbrokes owner has been grappling with a slump in its share price throughout the year, coupled with a series of unsuccessful acquisitions totaling over £2 billion ($2.6 billion).

Entain‘s joint venture with MGM Resorts International in the United States, particularly in the rapidly growing sports betting market, has been a focal point for the activist hedge fund. Corvex, already holding a stake in MGM where Meister sits on the board, aims to wield its influence to drive transformative change at Entain.

The hedge fund has expressed its intention to engage with Entain’s chairman, Barry Gibson, and interim CEO, Stella David, to actively contribute to positive changes within the organization.

Entain’s Shares Rally 7% Amidst Activist Calls for Industry-Expert Leadership

Entain’s shares experienced a nearly 7% surge, reaching slightly above £9 ($11.5) in morning trading following Corvex’s announcement. The gambling group now finds itself at a “critical juncture,” according to Corvex, suggesting that a shareholder with substantial industry and company-specific experience is necessary for the company’s revival.

Last month, Entain faced increased pressure as two US activist hedge funds, Dendur Capital and Sachem Head Capital Management, joined Eminence Capital in expressing concerns over the company’s stagnant share price and CEO Jette Nygaard-Andersen’s leadership. 

The activists cited regulatory challenges and management missteps, prompting Entain to pledge the appointment of four new non-executive directors. Activists, led by Ricky Sandler, also pushed for more inclusion on the board. Entain, in response to the increasing activist pressure, asserts its commitment to addressing shareholder concerns. The company remains confident in its ability to capitalize on significant growth opportunities, but the looming question remains whether the board will succumb to external pressures and consider a sale of the company or some of its assets.

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Prime Gaming, the company that owns and operates several successful international online casino brands, has decided to change its brand to Kinetic Digital after 20 years on the iGaming market.

The rebranding process gave the company a brand new logo along with a total design overhaul of the website. The new logo and name better reflect the company’s values and the journey that it has made since first starting out back in 2003.

The new name was chosen starting with “Kinetic”, which originates from the Greek word “kineticos”, which signifies motion. The new company name suggests a continuous struggle to progress and improve, while being a dynamic presence on the online casino market.

The company has extensive experience in the online gaming business after having been on the market for 20 years. Prime Gaming first started out with the Prime Casino brand, then added Prime ScratchCards and Prime Slots to its portfolio, before further expanding with brands such as Mega Casino, Simba Games, LuckyMe Slots, Ice 36, Slingo, Spin Genie and Genting Casino.

The casinos operated by Kinetic Digital are powered by SkillOnNet, a top provider of white label and full turnkey casino software solutions, and they hold licenses in various key markets such as the United Kingdom, Spain, Ontario (Canada), Denmark and Sweden.

The company also has one of the most appreciated affiliate platforms in the iGaming industry, Prime Partners. Despite the brand revamp, the affiliate program will keep its original name and continue to market and sell brands such as Genting Casino, Slingo, SpinGenie, MegaCasino and LordPing.

All About Movement

Speaking about the company’s new brand, Rachel Regev, Marketing and Operations Vice-President at Prime Gaming, said that “Kinetic is about movement and the new energy that creates.”

The company executive added that the team that works for Kinetic Digital is eager to “constantly challenge itself” while taking on “daring endeavors”. The business is also constantly looking for new partnerships and new ways to “foster a collaborative environment.”

“We emphasize growth, progression and working together, celebrating the journey as much as the milestones,” Rachel Regev added. The Prime Gaming executive also underlined the fact that the online gaming industry has changed drastically since the company launched in 2003 and that is one of the reasons behind the decision to switch brands at this point.

Source: “Prime Gaming Rebrands as Kinetic Digital to Create New Energy“. European Gaming. November 28, 2023.

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Crown Resorts is set to cut jobs at its Sydney casino, which continues to struggle with low visitation. The casino operator will also reduce its working hours, according to a report by The Sydney Morning Herald.

The NSW news outlet said that the casino operator’s Sydney property does not have enough visitors to justify the 24/7 working hours of the property. The casino, which already shut down one of its gaming floors, will thus reduce its work hours and will close down for eight hours every day.

Under the new schedule, Crown Sydney will close at 2 am and will reopen at 10 am from Monday to Thursday, as well as on Sundays. On Fridays and Saturdays, the casino will close at 4 am instead.

This change will also affect Crown Sydney’s workforce as the operator prepares to part ways with as many as 180 workers. This would mean that the gambling company has cut off a total of 275 since it opened the Barangaroo property in August 2022.

According to a Crown spokesperson, the dismissed workers include many people in frontline gambling-related roles. Some people in casino support and hospitality are also likely to be affected by the layoffs.

Crown Sydney promised to redeploy as many people as it can to its other casinos in the state and promised to provide support to the rest.

Crown’s Business Remains Troubled

Crown Resorts continues to struggle in the aftermath of the regulatory trouble it recently encountered. Multiple violations forced the company to introduce changes to its leadership and implement remediation measures to prevent repeated offenses.

Amidst these hurdles, Crown recently tried to renegotiate its AUD 1 billion tax guarantee with the government of New South Wales. However, Premier Chris Minns said that he believes Crown should either honor its agreement or return the land.

Adding to Crown’s woes, the company narrowly avoided a strike at its Melbourne property. Luckily, the casino operator was able to reach an agreement with its workers.

In the meantime, a former guard is preparing to sue the casino company once again, alleging that Crown and its ex-president James Packer failed to pay him the AUD 260,000 they owed in relation to a previous lawsuit.

One of Crown’s competitors, Star Entertainment, has encountered similar troubles and recently sold its Grand Mirage Resort Gold Coast property.

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GamblingIQ, a gambling industry intelligence specialist that seeks to set new standards, has published a new report. Called “A Responsible Revolution: Unlocking Effective Digital Identity & AI Technology to Prevent Financial Risk, Underage, and Problem Gambling,” the publication explores how artificial intelligence and digital ID can change the sector and help it follow the measures in the white paper.

Featuring an analysis of the UK’s Department for Digital, Culture, Media and Sport (DCMS) 2005 Gambling Act reform white paper, the report highlights the multiple opportunities for Digital Identity and AI companies.

The white paper was published earlier this year, outlining a set of objectives that the British gambling industry should follow. After a long period of delays the paper provided a clear picture of where gambling in the UK is headed.

GamblingIQ’s report suggests that gambling companies can turn to Digital Identity and AI tech vendors to solve many of the challenges presented by the ongoing gambling reforms.

GamblingIQ Explores the Leaders in the Digital ID Sector

The full 25,000-word report is available for purchase on GamblingIQ’s official website. It highlights the best suppliers of digital identification technology, naming Persona, Signzy and Yoti as some of the best picks for gambling companies in the crowded identity proofing market.

Readers can also learn what the major trends in the ID verification market are and how data security helps companies prevent fraud. The report also addresses cybercrime and the growing dangers it poses to the digital industry as a whole.

In addition to that, readers can also learn about the latest developments in the identification and face biometrics technology offered by some of the most reliable and government-certified providers on the market. GamblingIQ analyzes the available technologies and provides a comprehensive analysis of their ability to help gambling companies.

Such tech can help operators reliably verify the ages of their customers, preventing underage gambling. GamblingIQ believes that legislative changes should require operators to employ third-party certified digital providers to automatically check the ages of all of their customers.

Prior to the release of its current research, GamblingIQ also explored other hot topics, such as the links between social gambling and gambling addiction and the revolution in payment engine technology.

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