The New Jersey Division of Gaming Enforcement has published data about the local casinos’ performance in Q4 2023, reporting a decrease in gross operating profit despite an increase in net revenue.

The report highlights Q4 net revenue of $781.9 million, reflecting a 1.3% increase year-on-year. As mentioned, gross operating profit declined by 3.6% to $148.5 million.

Additionally, the Division of Gaming Enforcement published data about its licensees’ full-year performance. According to the authority, net revenue reached $3.33 billion for the calendar year, representing an increase of 0.8% year-on-year. In the meantime, licensed casino companies in New Jersey reported FY 2023 gross operating profit of $780.7 million, a 4.1% decrease year-on-year.

The division also published hotel occupancy figures for the period, saying that casino hotels in the state reported a Q4 occupancy rate of 66.5%. This figure marks a slight 0.7% increase compared to the prior year period. The occupancy rate for the twelve months ended December 2023, on the other hand, reached 73%, which demonstrates a decline of 0.4%.

Most Hotels Experienced a Decline

The most profitable casino resort in 2023 was the Borgata with Q4 net revenue of $190.4 million and gross operating profit of $47.9 million. The property’s FY 2023 results included net revenue of $785.6 million and gross operating profit of $226.1 million.

Next up was Hard Rock with Q4 net revenue of $140.3 million and gross operating profit of $28.5 million. Its FY net revenue stood at $572.7 million, resulting in a gross operating profit of $125.5 million

Rounding up the top three, Ocean Resort posted Q4 net revenue of $119.8 million and gross operating profit of $26.6 million. The venue was one of the only three licensees to report an increase in gross profit for 2023, with net revenue of $491.8 million (+16.3%) and gross operating profit of $117.2 million (+21.8%).

Bally’s AC was notably the biggest winner in 2023 as it was able to greatly bolster its profitability from a gross operating loss of $1.8 million in 2022 to a profit of $11.1 million in FY 2023. Resorts Casino, on the other hand, saw its gross operating profit plummet from $21 million in 2022 to $9.5 million in 2023.

Here’s how New Jersey’s other licensees fared in terms of FY 2023 gross operating profit:

• Caesars: $51.7 million
• Golden Nugget: $29.8 million
• Harrah’s: $80.6 million
• Tropicana: $93 million
• CIENJ: $23.6 million
• Resorts Digital: $12.2 million

In other news, Atlantic City’s casino workers continue to push for a ban on smoking in the local casinos.

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Catena Media released its latest financial report, uncovering details regarding its performance for the fourth quarter and full year 2023. Released Tuesday, the new report acknowledged “weak” quarter results amid an ongoing investment that seeks to propel future growth and profitability.

Details disclosed by Catena reveal that its Q4 2024 revenue from continuing operations took a hit, decreasing by 41% to €14.5 million ($15.5 million). Not unexpectedly, the company’s North American revenue plummeted as well, decreasing to €12.3 million ($13.2 million). This result marked a year-over-year decrease of 43% when compared to the €21.5 million ($23 million) reported in North American revenue for Q4 in 2022.

Similarly, adjusted EBITDA from continuing operations also took a hit between October and December 2023. Catena revealed that its adjusted EBITDA for the aforementioned period halted at €1.5 million ($1.6 million) a result representing an 88% decrease when compared to the corresponding period in 2022.

The number of new depositing customers (NDCs) for Q4 2023 decreased as well. NDCs in Q4 2022 were 56,040, a figure that decreased by 43% to 32,032 for Q4 last year.

When it comes to the yearly performance, the latest financial update also revealed decreasing results. Between January and December 2023, Catena’s revenue was down year-over-year by 22% to €76.7 million ($82.2 million). North American revenue halted at €67.1 million ($71.9 million), down by 21%, while adjusted EBITDA from continuing operations marked a 47% dip to €25.4 million ($27.2 million). NDCs posted a decrease year-over-year to 184,257 in 2023. In contrast, the 2022 result was nearly 20% higher.

The Company Anticipates Resumption of Organic Growth

Michael Daly, Catena’s CEO, commented on the topic explaining that the latest results were “disappointing,” adding that he isn’t satisfied with the recently released figures. Yet, he highlighted an ongoing plan the company initiated in 2023 that involved investments in both artificial intelligence (AI) and technology.

“Rapid technological developments and the emergence of artificial intelligence (AI) are reshaping the media industry. For the online sports betting and casino gaming sector, the changes will be huge. At Catena Media we are determined to be a leading force in this new landscape.“

Michael Daly, CEO at Catena Media

Daly said that Catena wants to become a disruptor in the sports betting and gaming sector by leveraging innovative technology that can help reshape the verticals. He revealed that the aforementioned investments have already accelerated.

Catena’s CEO predicted that those investments would help position the company well for future growth. Daly predicted that the company would return to a long-term growth trajectory with the resumption of organic growth, expected around the second half of this year. Moreover, he said Catena expects to generate full year adjusted EBITDA in 2024 within the range of €20 million ($21.4 million) to €30 million ($32.2 million).

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Macau, renowned as a global gambling hub, has reported significant shifts in its gambling landscape. The territory’s Social Welfare Bureau (IAS) cited a recent University of Macau survey, noting that gambling participation and gambling disorders among adults significantly decreased in 2022. These figures match Macau’s efforts to diversify its offerings and gradually reduce the role of gambling.

Survey Results Show Promising Progress

A research report titled “A Study of Macao People’s Participation in Gambling Activities 2022” has indicated that 30.1% of the adult population in Macau participated in gambling activities in 2022. This figure represents a significant decrease from the 2019 rate of 40.9%. Although the pandemic likely influenced these results, the figure still represents a notable departure from pre-COVID levels.

Among the 2,033 survey respondents, only nine individuals showed signs of a potential gambling disorder. These people accounted for a mere 0.45% of the overall sample, reflecting Macau’s successful harm prevention measures. Social Welfare Bureau representative Ms Wu I Mui noted the number of people seeking help with gambling-related issues dropped by 40% from 2019.

The first half of this year saw 19 requests for assistance regarding gambling harm, marking no increase in the incidence of detected gambling disorders.

Wu I Mui, Social Welfare Bureau representative

Social Gaming remains the most popular form of gambling among Macau residents at 15.6%, followed by Mark Six Lottery’s 13.0%. Casino game participation was merely 5.6%, while slot machines trailed them with 3.0%. These results indicate that locals generally avoid the region’s high-profile gambling venues. Sports betting had difficulties engaging residents, ranking last at 2.5%.

This Data Does Not Reflect the Wider Gambling Sector

Macau’s latest gambling survey underscores changes in the local gambling landscape. The decrease in gambling participation rates suggests shifts in preferences and priorities among Macau residents, while improved responsible gambling practices and support mechanisms had a noticeable impact. These changes are promising and reflect the local government’s overarching policy.

The Macau government is relentlessly investing in developing new industries like tourism, finance, and technology. Numerous new initiatives aim to draw visitors away from casinos and towards the city’s cultural and heritage attractions. New licenses have operators invest substantial amounts in non-gambling activities, exemplified by recent high-profile launches like the Londoner Macao.

While the recent results show promise, the survey remained limited to Macau locals and may not necessarily reflect the region’s broader gaming landscape. Gambling-related tourism still accounts for most of the local economy, and diversification efforts remain slow. However, the survey data marks steady progress towards a new, reimagined Macau.

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The fast-growing company focused on producing dedicated content for the gambling market in the United States, Catena Media, released its latest financial report, revealing details regarding its performance for the second quarter of 2023 and the first half of the year. The new report, released Tuesday, reveals that the company’s revenue from continuing operations for Q2 2023, or the period between April and June, was €16.9 million ($18.4 million). A comparison to the corresponding period in Q2 2022 shows that this year, the revenue decreased by 16%.

Not unexpectedly, Catena’s North American revenue for the second quarter of this year marked a decrease as well. Overall, the company posted revenue for North America of €12.5 million ($13.4 million). Comparison year-over-year shows that the revenue decreased by 16% when compared to the €14.9 million ($16.2 million) result from the same period last year.

Judging by Catena’s recent financial report, organic growth from continuing operations for Q2 this year was negative 16%, while new depositing customers marked a year-over-year decrease of 31% to a total of 49,770. Adjusted EBITDA from continuing operations for Q2 this year hit €2.6 million ($2.8 million), a figure that represents a decrease of 60% when compared to the €6.5 million ($7.1 million) result from Q2 in 2022.

In its recent report, Catena also highlighted multiple significant events during the second quarter of this year. In mid-April, the company signed a long-term partnership with one of the largest online newspaper publishers in the United States, Lee Enterprises Inc. Then, in May, Catena appointed Erik Edeen to the role of interim group CFO. More recently, in May, Catena released new financial targets for the 2023-2025 period, while in June, it confirmed the repurchase of bonds.

The Company Remains Focused On Growing

Focusing on the bigger picture, the company released details regarding its performance between January and June this year. Overall, Catena posted revenue from continuing operations of €50.6 million ($55 million), a 9% decrease year-over-year when compared to the €55.9 million ($60.8 million) result from 2022. Not unexpectedly, the company’s revenue in North America dipped as well, decreasing by 7% to €41.5 million ($45.1 million) between January and June 2023 when compared to last year.

“Q2 was a quarter of further evolution for Catena Media as we continued to transition towards a net cash positive business focused on regulated markets in North America. The group capitalized on the annual interlude in the North American sports calendar to undertake significant operational and financial streamlining measures ahead of the NFL resumption in early September.“

Michael Daly, CEO of Catena Media

Michael Daly, Catena’s CEO, commented on the topic and explained that the company continues to follow its plan toward net cash positive within regulated gambling markets in North America. He highlighted that Catena seeks to optimize its capital structure and increase shareholder value by repurchasing bonds and share buybacks.

Daly acknowledged that after Q2 ended, the company divested its Australian and UK business. He spoke about the seasonality of sports that impacted the revenue from this segment. Still, Daly predicted strong growth of Catena and exceptional results in Q3 and Q4 as well, boosted by an increase in sports activities.

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The leading sports technology company delivering unique experiences for sports fans and bettors, Sportradar Group AG, released its latest financial results, revealing details regarding its performance for the second quarter of 2023. Results emerged Wednesday, revealing strong revenue growth and an increase in adjusted EBITDA for the quarter ended June 30, 2023.

Overall, Sportradar’s revenue in Q2 2023 hit €216.4 million ($237.8 million). A year-over-year comparison to the €177.2 million ($194.7 million) in revenue reported for the same period in 2022, shows that this year, the revenue grew by 22%.

Another strong growth was observed in adjusted EBITDA, considering it hit €40.1 million ($44.1 million) for the second quarter of this year. A comparison to the Q2 2022 period, when adjusted EBITDA halted at €27.6 million ($30.3 million), reveals growth of 46% this year. Judging by the latest report, the adjusted EBITDA margin increased slightly from 16% in Q2 2022 to 19% in Q2 2023.

While revenue and EBITDA increased for the second quarter of this year, Sportradar revealed that its profit for the period sustained a serious hit. Profits in Q2 this year fell to €30,000 ($32,300), down by 100% from the €22.8 million ($25.1 million) result reported for Q2 last year. In its latest trading update, the company revealed that this was the result of “a net negative impact from foreign exchange rates.”

In Q2, the Company Signed Multiple Strategic Deals

Besides the financial results, Sportradar highlighted multiple achievements during the latest trading period. The company confirmed that it continues to expand its presence in the US by expanding its long-term agreement with Caesar’s Entertainment. This collaboration designated the company as the official supplier of betting data from major sports leagues, including NHL, MLB and NBA.

Carsten Koerl, Sportradar’s CEO, shared his excitement about the latest results. He spoke about the strong performance the company demonstrated during the first half of this year and predicted that this growth will culminate in a record-setting revenue for Sportradar. “We hold a pivotal position in the global sports ecosystem and believe our talent, technology and diverse product offering positions us for strong future growth as we continue to execute against our strategic initiatives,” he added.

“We are very proud of our strong performance during the first half of 2023 and remain on track to achieve the highest annual revenue in the Company’s history.“

Carsten Koerl, CEO at Sportradar

During the second quarter, the company inked multiple strategic agreements. Back in April, Sportradar was designated as the official technology partner of the Delhi Capitals Academy, under the terms of a new agreement with the Indian Premier League franchise, the Delhi Capitals.

Then, again in April, Sportradar’s unit, Sportradar Integrity Services, joined forces with World Aquatics. Under the terms of the two-year agreement, the company agreed to safeguard international water polo matches.

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Kansas launched its legal online and retail betting market in September last year. While the market has seen ups and downs, closer to the summer there are fewer sports events which resulted in a decrease in the betting handle, judging by unaudited figures released by the agency in charge of monitoring the activity, the Kansas Lottery.

The overall betting handle reported by retail and online betting operators last month was $120,323,444. This result marked a decrease of nearly 10% or more than $12 million, when compared to the result reported just a month earlier, in April, when the betting handle was $132,981,289.

A breakdown of the $120.3 million in betting handle reveals that online betting activities were responsible for the lion’s share. This comes as no surprise and is usually what happens in states where retail and mobile betting activities are offered. Judging by the preliminary figures from the Kansas Lottery, online betting operators hit $115.6 million in betting handle, while the retail sector reported a total of $4.7 million.

Not unexpectedly, comparing the online and retail betting handle to the previous month, April, shows a decrease. Overall, the online betting handle in April was $126.3 million, while the retail betting handle hit $6.7 million, revealing that in May, a decrease of approximately $10 million and $2 million was observed respectively.

Despite Betting Handle Dip, Revenues and Taxes Remain Strong

While the total betting handle fell in May when compared to April, the operators’ revenue and tax revenue for the state did not see a significant decrease. Overall, the $120.3 million in betting handle translated to $8.9 million in proceeds for the betting operators, while the state’s share was $887,390. Comparison to the results in April shows a slight decrease, considering that back then, the operators’ revenues hit $9.2 million, while the state share was $919,720.

A further breakdown shows that the revenue share of online betting operators was $8.7 million last month, while retail operators saw only $130,047 in revenue. This resulted in a state share of $874,385 and $13,005 respectively.

Judging by the Kansas Lottery’s recent report, DraftKings was an unquestionable leader within the online betting market in May. Overall, the operator reported $48 million in betting handle, resulting in $4.3 million in revenue. Comparing the results to April, a slight decrease is observed considering that DraftKings’ betting handle at the time was $53 million.

Not far behind was FanDuel, which reported $35.3 million in betting handle last month. This resulted in some $3.5 million in revenue. Similarly to DraftKings, FanDuel’s betting handle in April was higher than in May, given that it hit $40 million.

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Despite the record momentum of the gaming industry, gaming executives are increasingly cautious about the industry’s future prospects, according to a report by the American Gaming Association (AGA) compiled in partnership with Fitch Ratings. 

Gaming Industry Executives Predict Flat Growth Ahead Despite Record Momentum

Two-thirds of respondents expect conditions to remain the same. The report found that gaming-related economic activity expanded at an annualized rate of 8.4% in the last three quarters, while the US economy grew by 2.9% over the last two quarters of 2022.

The data in the report suggested that annualized industry economic activity will decrease moderately over the next six months. The results showed that more executives expect a decrease in the pace of hiring new employees, revenue growth, and customer activity over the next three to six months than an increase. 

However, there was a brighter outlook for certain segments of their businesses, with more operators expecting capital investment and gaming units in operation to increase rather than decrease over the same period.

Gaming equipment manufacturers expressed significant optimism, with most expecting sales of gaming units for replacement use to increase and almost all expecting sales of units for new or expansion use to increase. 

Economic Uncertainty and Geopolitical Risk Among Top Concerns for Gaming Industry Executives

Among the top concerns for industry executives were interest rates and inflation, cited by 69% of respondents, and economic uncertainty, cited by 38%. Meanwhile, supply chain delays, which had been a top-five concern in the previous report, fell out of favor, with geopolitical risk taking their place.

Retention of talent remained a challenge for the industry, with competition for current employees cited as an area of concern.

AGA President and CEO Bill Miller said that gaming was well-positioned to weather any potential economic headwinds, but projections of slowing growth across the broader US economy had muted expectations for gaming in the medium term. 

The report, prepared biannually by Oxford Economics, provides a timely measure of recent industry growth and future expectations.

A total of 26 executives responded to the Q1 2023 survey, including those at the major international and domestic gaming companies, tribal gaming operators, single-unit casino operators, major gaming equipment suppliers, and major iGaming and sports betting operators. Another recent report by AGA highlighted that the US gaming industry is more diverse than the larger hospitality sector and the US workforce. The study revealed that 62% of gaming industry employees are minorities, with Asian employees representing a significant presence with 14%, double the national workforce.

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Kindred Group, a leading global gambling operator, released a new update, revealing that its revenue share from harmful gambling decreased for the most recent quarter. The company unveiled details Monday, revealing that its revenue from harmful gambling decreased to 3.0% for the first quarter of 2023, representing a 90-day period between December 20, 2022, and March 19, 2023.

The latest result marked an improvement when compared to the same period in 2022. For the first quarter of 2022, the company’s revenue from harmful gambling was 3.3%. This means that for Q1 this year, a decrease of 0.3% is observed.

Additionally, Kindred revealed that the use of technological solutions that helped detect at-risk gambling and allowed the company to engage with such clients reaffirmed a positive trend. The company confirmed that the improvement effect after interventions was 83.0%. This result, when compared to previous quarters, marked improvement. For example, the improvement effect after interventions halted at 82.1% and 82.6% in Q4 2022 and Q3 2022 respectively.

Efforts within Journey Towards Zero Continue

Tracking and at the same time reducing the revenue from harmful gambling is one of Kindred’s strategic sustainability goals. With this long-term commitment, the company leads by example by voluntarily implementing effective controls, processes and collaborating with its customers to reduce the revenue from harmful gambling.

To ensure transparency of the process, Kindred posts quarterly reports about the metrics related to revenue from harmful gambling. Ultimately, the company seeks to achieve zero percent revenue from harmful gambling, a goal that is expected to have a positive impact on societies and the industry as a whole.

“Going forward I look forward to following the holistic approach and collaboration across different teams within Kindred. Responsible gambling is not a factor only for one team, but it is something that every single employee contributes to through their knowledge and commitment to reducing harmful revenue.“

Henrik Tjärnström, CEO of Kindred Group

Henrik Tjärnström, Kindred Group’s CEO, revealed that engaging with customers that are showing signs of at-risk or problem gambling is an ongoing commitment of the company. Moreover, he explained: “To prevent a harmful behavior, early intervention is critical, and I am glad that we can see result of the rollout of automated interventions that we have done in some of our markets.”

Focusing on the future, Tjärnström predicted that the company’s teams will continue to stand united and engage with customers that may be showing signs of at-risk gambling. He explained that reducing revenue from harmful gambling isn’t a priority for a single team within the company, but a goal for the whole Group. Finally, Tjärnström acknowledged the importance of technological solutions and the positive impact they may have in the Journey towards Zero initiative.

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The 2022 Tribal Gaming Report has shown a 2.2% collective decrease in the reported payments to local entities by Michigan’s 23 tribal casinos from 2021.

Michigan Tribes Report $30.8M Payments to Local Governments in 2022

The total payments made by Michigan tribes to local government units was $30.8 million in 2022, down slightly from $31.5 million in 2021. The report also indicated that the factors that impact payments and net win totals differ amongst each tribe. Several tribes include free-play wagers in their reported net win for the year, while some have Class II machines at their casinos, and that revenue is not included in the annual tribal report.

The four Michigan tribal gaming operators that saw an increase in their payments are the Sault Ste. Marie Tribe of Chippewa Indians, who own Kewadin Casinos and recorded a 12.4% increase from 2021, Hannahville Indian Community, the tribe that operates Island Resort & Casino saw 6.3% growth, Little River Band of Ottawa Indians, operators of Little River Casino Resort, reported a 2.4% payment increase, and the Gun Lake Tribe had a 0.7% increase in payments.

The eight tribal gaming operators who saw a decline in their payments are the Pokagon Band of Potawatomi Indians, who operate Four Winds Casinos, recording a collective 8.9% decline, Lac Vieux Desert Band of Lake Superior Chippewa Indians, operators of Northern Waters Casino Resort in Watersmeet, had a 6.1% decrease, Keweenaw Bay Indian Community had a 3.8% decrease, and the Little Traverse Bay Band of Ottawa Indians saw a collective decline of 3.3%. The Grand Traverse Band, Bay Mills, Nottawaseppi Huron Band, and Saginaw Chippewa also experienced a decline in their payments.

Michigan’s Gambling Industry Thrives in 2022

Each year, the MGCB provides information on the payments tribes make to local units of state government based on slot revenue from their Class III machines. The 2% payment calculation estimates annual tribal casino slot revenue, but factors such as how tribes include free play wagers in their net win and the use of Class II machines affect the reported totals. The Tribal Gaming Report is the lone public insight into annual tribal casino revenue in Michigan. Detroit’s retail casinos, as well as Michigan online casinos, including tribal partners, are required to provide monthly revenue reports, but this does not extend to tribal casinos.

Overall, the gambling industry in Michigan did quite well in 2022. According to a report by MGCB, online gambling operators in Michigan saw a strong year, with gross receipts from commercial and tribal iGaming and internet sports betting hitting almost $2 billion in 2022, a 41% increase from the previous year.

Internet sports betting contributed $399.6 million in gross receipts, while Internet casino gambling generated $1.58 billion. Adjusted gross receipts for internet gaming and sports betting were $1.65 billion, with $219.6 million from sports betting and $1.43 billion from internet gaming. Taxes and payments to Michigan from operators totaled $303 million in 2022.

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