Denmark’s gambling market experienced a significant boost in June 2024, with total revenue increasing by 37.0% year-on-year to DKK703m (£81.1m/€94.2m/$103.0m), according to the latest figures from the Danish Gambling Authority, Spillemyndigheden. This growth was largely driven by a substantial rise in sports betting, which saw a notable increase during the Euro 2024 football tournament.

Sports Betting Leads the Growth

Sports betting emerged as the standout performer in Denmark’s gambling sector for June, with revenue soaring by 75.7% year-on-year to DKK271m. A significant portion of this, 64.1%, came from mobile betting, reflecting the growing trend of wagering via smartphones and other mobile devices. The Euro 2024 tournament, which began on 14 June and ran into mid-July, was a major driver of this increase. Although Denmark’s national team was eliminated in the round of 16 after a 2-0 loss to hosts Germany, the tournament still generated significant betting activity.

Online Casino Revenue Nears Record Levels

While sports betting was the highlight of June, online casinos remained the largest contributor to Denmark’s overall gambling revenue. Online casino revenue reached DKK303m, marking a 27.2% increase from the previous year. This figure was just shy of the record DKK310m reported in March 2024.

Slots continued to dominate the online casino segment, accounting for 76.4% of the total online casino revenue in June. Roulette contributed 6.7%, while blackjack accounted for 6.6%. Bingo also made a contribution, generating 3.9% of the gross gaming revenue (GGR) for the online casino vertical.

Retail Gambling Sees Modest Gains

Denmark’s retail gambling sector also saw growth in June 2024. Revenue from physical slot machines rose by 6.6% to DKK97m. Of this total, 79.2% came from gambling halls, with the remaining 20.8% generated by slot machines in restaurants.

Land-based casinos, another key component of Denmark’s gambling market, reported DKK32m in revenue for June, representing a 7.1% year-on-year increase.

Self-Exclusion Statistics Highlight Responsible Gambling Efforts

In addition to the revenue figures, Spillemyndigheden released data on self-exclusion through the Rofus platform. As of June 2024, a total of 50,403 individuals in Denmark have self-excluded from gambling. This includes 33,511 people who have opted for lifetime exclusion and 16,892 who have chosen temporary exclusion. The country’s gambling support helpline, StopSpillet, also recorded 32 calls in June, primarily from men aged between 26 and 35.

Source:

Euros and icasino drive Denmark gambling revenue up 37% in June, igamingbusiness.com, August 8, 2024.

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As reported by CasinoNieuws.nl, the Netherlands is set to alter its gambling tax rate from 30.5% to 37.8%, should the latest coalition agreement be implemented.

This change is expected to provide the state treasury with an additional €202 million (£173.3m/$219.6m) annually in gambling tax contributions. The agreement involves the PVV, VVD, NSC, and BBB parties.

In November, seven political parties announced their goal to generate an additional €200 million to €400 million in state contributions through an increased gambling tax. The coalition agreement, titled “Hope, Courage and Pride,” is scheduled to be presented today (16 May).

Tax Increase Amid Online Slot Ban Controversy

The proposal to raise the gambling tax comes on the heels of the Netherlands’ house of representatives voting to ban online gambling advertising and “high-risk” gambling, which includes online slots. The house voted to ban all targeted advertising, having already prohibited untargeted advertising. This new ban, effective from July 2023, encompasses mass advertising through television, radio, and sports sponsorships.

Additionally, the house voted for a ban on online slots due to concerns over the lack of player control in such games. These motions were put forward by Socialist party MP Michiel van Nispen. Although the bans have passed a house vote, the Netherlands’ minister for legal protection, Franc Weerwind, will review the law and decide whether to approve the changes.

Industry Opposition to Proposed Bans

The proposed changes have faced significant opposition from the industry. The Netherlands Online Gambling Association (NOGA) argues that these bans would push players towards the black market. NOGA described the proposed changes as “thoughtless and irresponsible,” with its director, Peter-Paul de Goeij, expressing concerns that the motions are based on inaccurate data.

“A majority in the house of representatives is taking an expensive gamble with online players who are now consciously opting for the legal offer,” said De Goeij. “If we soon find that politicians have made the wrong decisions too hastily, the house will be responsible for the negative consequences.”

Implications for the Dutch Gambling Market

The increased tax rate and the new regulations reflect the Dutch government’s attempt to regulate the gambling market more stringently. While the tax increase aims to boost state revenue, the advertising and slot bans are intended to mitigate the risks associated with gambling. However, the controversy and opposition suggest that the road to implementing these changes may be fraught with challenges.

As the situation develops, the Dutch gambling industry will closely watch the minister for legal protection’s decisions, which will significantly impact operators and players alike. The balance between regulation and maintaining a healthy market will be crucial for the future of the Dutch gambling landscape.

Source: “Netherlands coalition agreement proposes increased gambling tax of 37.8%”. igamingbusiness.com. May 16, 2024.

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The leading gaming, hospitality and entertainment company, Ceasars Entertainment, started the work on its permanent casino in Danville, Virginia, a few years ago, in 2022. Ahead of the opening of the resort, planned for this December, the cost of the project has significantly increased.

While initially, Ceasars anticipated an investment of approximately $400 million, the construction of the permanent casino has nearly doubled, as suggested by a new report. On Monday, WDBJ confirmed that the cost for Caesars’ Danville casino project has increased to approximately $750 million.

The new sum represents a significant increase of nearly double what was estimated as the initial investment. In light of the increase in capital investment, the company is reportedly collaborating with the city about changes to its development agreement.

The Company Considers Changes to Its Agreement with the City

As a part of the changes, Caesars is anticipating selling between 10 and 20 acres of land to Danville. Provided that this sale is greenlighted by city officials and the land returns to Danville ownership, it is likely going to be used for the development of a new park.

Further changes to the development agreement involve reducing the minimum number of employees for the Danville permanent casino project. While initially, the minimum number of employees was 1,300, Caesars may consider decreasing this number to 900.

Ken Larking, Danville City Manager, who was recently quoted by WDBJ, revealed that over the last couple of years, much has changed. “A lot has changed in the past few years regarding the nature of construction, the nature of the workforce, and some things that come up that we needed to see happen as well,” he explained. Additionally, Larking pointed out: “So, we worked together for the past several months to come up with an agreement we can both be satisfied with.”

Recently, Caesars released its first quarter results, highlighting a decline despite an increase in iGaming win. The company’s quarterly report revealed that its net revenue for the three months ended March 31, 2024, halted at $2.7 billion. A year-over-year comparison showed a slight decrease when compared to the $2.8 billion result in 2023.

The adjustments to the development agreement between Caesars and Danville were recommended for approval by city staff. Still, the final decision is in the hands of the City Council. A vote on the proposed changes is scheduled to take place at the City Council’s meeting on Tuesday.

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Spillemyndigheden, the regulator of the gambling market in Denmark, has announced that in the month of February 2024 the industry recorded an 18.3 percent increase in gambling spend compared to the same month last year.

Moreover, all sectors of the industry registered such increases: sports betting, online casinos, gaming machines and land-based casinos. The total gambling spend registered in February 2024 amounted to 587 million Danish Krone or around 83.6 million U.S. dollars.

The most impressive revenue increases were registered by sports betting and online casinos. According to Spillemyndigheden, the revenue increases for these two segments were most likely due to lower return to player (RTP) rates in February 2024 compared to the same month of last year.

The figures included in the report are based on the data submitted by sports betting and casino operators to the Danish Tax Agency. The report also used data related to responsible gambling, taken from the Register of Self-Excluded Gamblers and StopSpillet, the problem gambling helpline that is available to residents of Denmark.

Online Casinos Dominate the Market

Most of the overall gross gaming revenue for the industry came from online casino operators, which accounted for 47.3 percent of the total. Sports betting managed to cover 30.2 percent of the market in terms of gross gaming revenue, while gaming machines accounted for 16.9 percent. The lowest market share in terms of gross gaming revenue was that of land-based casinos, which only managed to take up 5.4 percent of the market.

In terms of increases of gross gaming revenue in February 2024, sports betting registered the largest percentage: 32.5 percent compared to the same month of last year for a total of 134 million Danish Krone. Within the sports betting vertical, mobile betting was the most popular channel, attracting 65.6 percent of all bets in February 2024.

Online casino operators also registered a major increase of 18.53 percent when it comes to gross gaming revenue, with a total amount of 278 million Danish Krone generated in February 2024. Mobile gambling is also preferred by customers in this vertical, with 61.1 percent of bets being placed through this channel.

Gaming machines recorded a less significant increase in gross gaming revenue, just 1.85 percent year-on-year for a total of 100 million Danish Krone. Land-based casinos also registered a modest gross gaming revenue increase of 7 percent over the same month of last year for a total of 32 million Danish Krone.

Source: “Danes’ gambling spend increased in February 2024“. Spillemyndigheden. April 16, 2024.

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One of the leading companies in the industry, International Game Technology (IGT), published its financial report, which demonstrated a net profit decrease compared to 2023. However, the revenue was $4.31 billion (£3.37bn/€3.94bn), which represents a growth of 2.0%, following a recorded $4.23 billion in 2023.

Successful year and plans for 2024

Global Gaming and PlayDigital businesses were major reasons for the increase in revenue, while Global Lottery’s results dropped down. However, the lottery business performed better in Q4 than was the case during the whole year, following the success of other departments.

Vince Sadusky, the company’s CEO, commented: “We delivered a strong finish to the year in the fourth quarter, propelling full-year 2023 profits to record levels. A compelling array of products and solutions fuelled broad-based momentum in key performance indicators, driving margin improvement across our Global Lottery, Global Gaming, and PlayDigital segments.”

IGT conducted a restructure in February when Global Gaming and PlayDigital merged with another industry giant, Everi. The operations in total cost $6.20bn. IGT will own a majority of shares, 54%, while Everi will possess 46%. The merger is expected to be finished by the end of 2024 or at the beginning of 2025 when Everi will be renamed.

Sadusky said: “We believe the recent determination to split the business and create separate lottery and gaming pure-play companies, each with experienced management teams and simplified business models, better positions each company to service customers and create significant value for stakeholders.”

Revenue growth

In the past year, IGT’s revenue grew. Product sales revenue was incredibly high – $963 million, which is 11.2% higher than in 2022. However, service revenue decreased by 0.4%, so the company generated $3.35 billion.

Global Lottery was the main source of revenue in 2023, even though the decrease is noticed since it generated $2.53 billion in revenue in 2023. As the main reason for this drop, the company listed a sale of a commercial services business in Italy. If it remained part of the company, a growth of 6% would be recorded.

Global Gaming also achieved significant growth since its operations increased by 9.1% to $1.55 billion. PlayDigital’s revenue also increased by 9.1% to $228 million, which broke the record when it came to this division.

The operations cost $3.31 billion, and services were $1.63 billion. However, non-operating costs increased to $372 million, which is 11.7% higher than in 2023. This means that the profit before paying taxes was $629 million, which represents a 6.8% increase compared to the year before. The company paid $322 million for taxes and $151 million for non-controlling interests, so the net profit was $156 million, which is $156 million lower than in 2022 when the profit was $275 million, so a decrease of 43.3% is recorded. But despite that, adjusted EBITDA was $1.78 billion, which is an increase of 6.9%, and hit the record when it comes to this figure.

Max Chiara, the company’s CFO, said: “We achieved all of our financial goals in 2023. Robust cash generation funded incremental investments in the business and shareholder returns, while driving leverage to historically low levels, putting IGT in a strong financial position as we enter 2024. This gives us confidence in further expanding our investment in the business to fund future growth.”

Source: Fletcher, Robert. “Net profit dips despite revenue growth at IGT in 2023”. iGaming Business. March 12, 2024.

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Lithuania’s parliament (Seimas) has received a new proposal that, if passed, would raise the minimum age limit for gambling to 21. As reported by SBC News, this proposal is part of the Seimas’ 2024 agenda and will be on voted by ministers later this year.

The new measure applies to both retail and digital gambling. In addition to discussing this measure, Lithuanian lawmakers will also discuss the implementation of new restrictions and ID requirements. Under the newly proposed rules, Lithuanian players under 21 will be unable to enter gambling venues, wager money and participate in online gambling.

The raise of the age limit for gambling was proposed by Jurgita Sejonienė, a member of Lithuania’s Homeland Union Party. According to Sejonienė, the age limit in question should be raised in line with Lithuania’s ongoing gambling reforms that have seen the introduction of stricter gambling laws.

The measure was fast-tracked to a vote and received unanimous initial approval. The Seimas will decide whether to proceed with these changes by July 2024.

Lithuania Aims to Introduce a Stricter Regulatory Framework

Currently, Lithuania allows players over 18 to gamble, although people under 21 are prohibited from entering and playing at casinos. Since the new measure will also ban under-21s from playing online, only those above the age of 21 will be able to participate in real-money games.

There is a notable exception, which is the country’s national lottery. As previously, the legal age limit for participating in the lottery would remain 18+. However, Lithuania recently introduced stricter ID check requirements for lottery retailers that require them to verify that consumers are over the legal age before they are allowed to participate.

In the meantime, Lithuania recently adopted increased gambling licensing fees, which was considered a significant development in the country’s regulations. Effective as of July 27, 2023, the resolution reflected the country’s desire to introduce a stricter regulatory framework.

Speaking of regulation, a few months ago, TopSport violated the country’s self-exclusion rules by allowing an excluded individual to play. As a result, the operator was required to pay a fine of $27,000.

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The Spanish gambling industry has recorded an increase of 23.6 percent year-on-year in gross gambling revenue during the third quarter of 2023 to a total amount of 304.3 euros.

However, that amount was slightly lower (2.7 percent) than what the industry managed to generate in the second quarter of 2023. Nevertheless, the figure recorded in the third quarter of this year represented a drastic increase from the 240.8 million euros that were recorded in the same quarter of 2022.

The casino segment was the main source of gross gambling revenue during the third quarter, with a total of 160.3 million euros generated. That figure represents an increase of 25.3 percent compared to last year and 52.7 percent of the whole gambling market in the country.

The live roulette sector managed to generate the highest amount of growth, with gross gambling revenue going up by 27.8 percent. The slots vertical also registered healthy growth, with gross gambling revenue increasing by 25.9 percent.

Blackjack also registered a good performance in the third quarter, growing by 11.5 percent compared to the previous quarter. Slots registered an 8.1 percent increase quarter-on-quarter, while live roulette grew by 5.4 percent. Conventional roulette did not manage to get a similar performance, though, its gross gaming revenue decreased by 2.2 percent compared to the second quarter of 2023.

Sports Betting Revenue on The Rise

Sports betting revenue also registered an increase of 22.7 percent year-on-year to 113.5 million euros and a share of 37.3 percent of the whole market. However, gross gaming revenue from pre-match bets fell 31.7 percent compared to the previous quarter and even in-play bets registered a 0.3 percent decrease. The product that registered enormous growth was fixed-odds betting, whose revenue went up by 46.1 percent compared to the second quarter.

The poker segment also managed to grow in the third quarter, its gross gaming revenue amounted to 26.8 million euros, an increase of 22 percent compared to the same quarter of last year and of 4.1 percent compared to the second quarter of 2023.

Bingo was the only vertical that registered a gross gambling revenue decrease, it slipped by 1 percent year-on-year to a total amount of 3.6 million euros. However, that figure still had a positive vibe as it was 2.9 percent higher than what was generated in the second quarter of 2023.

Spain had 78 licensed operators in the market during the third quarter, with 50 of them offering casino services, 42 active in sports betting, 9 in poker, three in bingo and two offering contests.

Source: “Spain gambling revenue jumps 23.6% to €304.2m in Q3“. iGaming Business. December 15, 2023.

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Earlier this year, lawmakers in India pushed forward a significant change in the taxation for online gambling. At the time, the regulatory body in charge of recommendations to the implementation of the Goods and Services Tax (GST), the Goods and Service Tax Council, greenlighted a proposal for the introduction of a 28% tax applicable for gambling activities, including online gambling, casinos and horseracing. The changes effectively increased the tax rate for all gambling, as well as gaming activities such as fantasy sports to 28%.

Previously, the tax rate applicable for gaming activities like fantasy sports was 18%. However, with the recent change, gaming activities are taxed the same way as gambling activities. To make matters worse, the Council said that the new tax rate would be backdated to the introduction of GST which happened back in July 2017.

The taxes for gambling and gaming activities were previously applied to each operator’s gross revenue. This has also changed, and taxes are now applied to the total amount wagered by the players.

The combination of those controversial decisions has put many operators in a difficult spot and according to one industry expert, the Indian government may face further challenges soon. Ritesh Kumar Singh, the founder and chief executive of Indonomics Consulting, a policy research and advisory company, recently commented on the topic in an opt-ed released by Nikkei Asia. Explaining the current situation, he revealed that many companies within the gaming and gambling sector may go bankrupt.

Citing recent reports, Singh said that companies within the sector have already received notices about billions of rupees past due. Moreover, he cited reports of companies, claiming they are asked to pay 10 times their annual revenue due to the new taxation.

Tax Rate May Push Operators to Operate Illegally, Conceal Revenue

The industry expert explained that India’s public debt currently exceeds 90% of GDP and while the government is trying to control this, tax revenue remains around 11% of GDP. “Consequently, New Delhi feels compelled to enact stringent tax measures to bridge its revenue gap. The unfortunate consequence is a resurgence of exorbitant tax demands on business and an apparent increase in rejections of GST refund claims,” explained Singh.

Focusing on the gambling sector, he predicted that despite ramped-up taxes, gambling operators will continue to offer their services rather than disappear, considering the high demand. However, Singh warned that the increased tax rate may push some operators to conceal cash transactions in order to reduce the tax they pay. Finally, he warned that other gambling operators may consider operating illegally.  

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Taxation of retail and online gambling provides a vital stream of revenue for countries across the globe. Currently, there are strict rules regulating the gambling sector in the Netherlands and licensed operators in the country are subject to a 29.5% gambling tax. Now, a new proposal seeks to change the taxation of gambling for operators in the country, calling for an increase.

The proposal was submitted Tuesday by MPs Silvio Erkens and Chris Stoffer and it comes at a time when the Dutch government proposed a drastic increase in the levy applicable for alcohol. The government recently hinted at plans for increasing the excise duty applicable for alcoholic beverages, such as wine, beer and others, by 16.3%.

However, Erkens and Stoffer identified the potential negative impact of such an increase, claiming that it may have a significant economic impact on regions near the country’s borders. The duo outlined that people living in such regions may try to avoid the higher excise duty on alcoholic beverages by buying them from countries nearby.

To cushion the potential negative impact, of an increase in the excise duty on alcohol, the MPs submitted a proposal that calls for the increase to be in half. This would otherwise mean that the excise duty on alcohol would be increased by only 8% and to compensate for the tax revenue, Stoffer and Erkens called for an increase in gambling tax.

Increasing the Gambling Tax by 1%

Introducing half of the excise duty on alcohol is estimated to cost approximately €74 million ($78.3 million) in tax revenue. Within their proposal, the two MPs sought to fill in the gap created by the decrease in the revenue from alcohol by implementing a 1% increase in the tax rate applicable to gambling operators. This would effectively increase the tax rate from 29.5% to 30.5%.

In their proposal, Erkens and Stoffer highlighted the recent increase in the popularity of online gambling activities. Ideally, the duo sought to only increase the gambling tax applicable to online gambling operators.

“Ideally, the increase in the gambling tax would only have resulted in a heavier taxation of online gambling. However, the gambling tax is currently not differentiated with regard to different forms of gambling, which means that an increase cannot yet be focused on this group,“

reads the proposed change submitted by MPs Silvio Erkens and Chris Stoffer

However, under the existing regulations, there’s no separation between online gambling activities and land-based activities. In other words, if the proposal of the two MPs is implemented, the increase would apply to all forms of gambling in the Netherlands. This would be the case unless further changes and provisions are implemented.

If the Dutch government implements the change and increases the tax by 1%, an estimated €26 million ($27.5 million) in tax revenue is expected to be generated. The duo’s proposal also calls for an increase in the excise duty on tobacco as well, in addition to the gambling tax.

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The leading land-based and online gambling operator with a strong presence in the United States, Boyd Gaming, released its latest financial results, outlining details regarding the company’s performance for the third quarter of 2023. The latest unaudited figures, encompassing the three months ended September 30, 2023, reveal that the company posted total revenue of $903.2 million. This result, when compared to the corresponding period in 2022, when revenues halted at $877.3 million, marks an increase of nearly 3%.

The total adjusted EBITDAR for Q3 this year was $320.8 million when compared to the $337.7 million in total adjusted EBITDAR posted for Q3 in 2022. The latest financial update revealed that adjusted earnings for Q3 this year were $137.3 million or $1.36 per share when compared to the $159.2 million or $1.48 per share posted for the corresponding period last year.

A breakdown of the $903.2 million in total revenue revealed that the lion’s share came from the company’s gaming operations. This comes as no surprise, yet, gaming revenue in Q3 halted at $641.2 million, slightly below the $668 million result from Q3 in 2022.

In contrast to the slight dip in gaming revenue, Boyd’s other operations posted an increase in their revenues. Food and beverage revenue increased slightly to $71 million in Q3 this year, while room revenues increased to $48.7 million.

Boyd’s online revenue in Q3 soared to $90.3 million. This result marked a significant increase of 72.4% when compared to the $52.4 million in online revenue posted for the corresponding quarter in 2022. Last but not least, management fee revenue and revenues derived from other operations increased as well, hitting $17.2 million and $34.8 million respectively.

The Company’s Diversified Business Model Brings Benefits

Keith Smith, Boyd’s president and CEO, explained that the latest results reaffirm the company’s diversified business model. He outlined that Boyd continues to see strong results from core play customers, online gaming, as well as its non-gaming operations. According to Smith, all those factors impacted positively the results for Q3 this year. “However, quarterly results were impacted by declines in play from our retail customers and ongoing cost pressures, both related to the challenging economic environment,” he added.

Smith explained that an ongoing focus for Boyd is the creation of value for its shareholders. He pointed out that the recent refurbishment at Fremont helped push the latest results. “And we remain committed to our capital return program, having returned over $1 billion to shareholders in the last two years through our ongoing share repurchases and dividends,” said Smith in conclusion.

Focusing on the bigger picture, Boyd confirmed that the revenue for the first nine months of 2023 hit $2.78 billion. This marked a significant increase when compared to the same period last year when the total revenue halted at $2.63 billion.

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