Macau Horse Racing Company Limited, the company behind the Macau Jockey Club, announced with regret that it has reached an agreement with the Macau government to terminate its concession contract. Under this agreement, the contract will expire on April 1, 2024.

The Macau Jockey Club was founded through a contract between the Portuguese government and shareholders. However, the introduction of flat horse racing by the Taiwanese consortium in 1989 impacted the club’s business negatively. In 1991, the government requested the club to undergo a restructuring led by the local gambling leaders, which allowed it to continue its operations.

Throughout its history, the Macau Jockey Club has always strived to diversify gaming and racing on horses and support the growth of tourism in the special administrative region. Despite this, Macau Horse Racing Company Limited pointed out that it has been operating at a loss, accumulated in excess of 2.5 billion.

To make matters worse, there has been limited room for the development and growth of the horse racing industry in Macau, the company added. This issue was further exacerbated by the COVID-19 pandemic and China’s Zero-COVID policy, which brought further adverse effects.

As a result, sustaining the Macau Jockey Club’s operations became increasingly difficult.

The Company Thanked Its Supporters

According to the official announcement, the Macau Horse Racing Company Limited’s board of directors eventually decided to cease all racing-related operations. Despite that, the current member facilities will remain available to the Macau Jockey Club’s members, the company added.

It also used the opportunity to thank all colleagues who supported the company throughout the years, lauding their valuable contributions.

You have all served with a high level of professionalism with global recognition. The company will conduct necessary briefing sessions for the staff, provide assistance and job referrals, and comply with the provisions of Macau labor law to provide appropriate compensation.

Macau Horse Racing Company Limited statement

The Macau Horse Racing Company also expressed its appreciation of all horse owners and members, thanking them for their ongoing support. It added that specific details regarding the necessary arrangement for their horses will be provided at a later date and no later than March 31.

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Global operator bet365 has published its annual report, highlighting a significant year-on-year increase in revenue. However, this favorable metric was offset by a substantial increase in operating loss.

Bet365’s report covers the 52 weeks ended March 26, 2023, and highlights a total gaming and betting revenue of £3.39 billion ($4.32 billion, current rates). This represents a year-on-year increase of 19% from the £2.87 billion recorded during the prior-year period.

In the meantime, the company reported gross profit of £2.87 billion ($3.66 billion), representing a noticeable increase from the $2.37 billion recorded in the 52 weeks ended March 27, 2022. However, the company’s administrative expenses increased dramatically in FY 22/23 to £2.89 billion ($3.69 billion). For reference, this metric stood at £2.36 billion in the prior-year period.

Overall, bet365 reported an operating loss of £24 million ($30 million) for the period, down from a profit of £15 million in FY 21/22. Fair value losses on investments stood at a staggering £62 million ($79 million), down from a profit of £28 million in the prior-year period.

The company’s loss before taxation was £60.19 million ($76.8 million). The company’s total loss for the financial period, meanwhile, reached £69.41 million ($88.5 million). For reference, bet365 recorded a profit of £33 million last year.

After all considerations, bet365’s total comprehensive expense for the 52-week period ended March 26, 2023, was £61.23 million ($78.1 million).

Denise Coates Secures a Solid Paycheck

The company’s precarious position, however, did not prevent the company’s chief executive officer, Denise Coates, from getting an annual salary of £270.7 million. Around £50 million of this total sum came from dividends, cementing bet365’s leader as one of the most well-paid executives for the year.

In the meantime, bet365 continues to pursue global expansion. The company is currently lined up for a license in North Carolina as it continues to seek global expansion. In November, the operator also secured its position as the US Darts Masters’ title sponsor, solidifying its presence in professional sports.

Elsewhere, the Australian Communications and Media Authority recently issued warnings to a number of betting companies, bet365 included, over violations of the country’s in-play betting rules.

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In a landmark ruling by the Swedish Patent and Market Court of Appeal, Betsson, a prominent betting company, has been mandated to refund all losses the plaintiff, a man suffering from a gambling disorder. This development has significant long-term consequences and follows similar cases in other European jurisdictions.

Betsson May Face Other Such Lawsuits

According to the court’s decision, Betsson must repay all of the plaintiff’s historical spending and additional compensation for mental distress. According to the individual, Betsson engaged in extensive and aggressive marketing tactics like frequent bonuses despite being aware of his status as a problem gambler. Since this happened before the company received its Swedish license, he had little legal recourse.

Magnus Rydeving, an expert providing legal guidance to individuals affected by addiction, noted that the court’s decision, ordering Betsson to reimburse the individual, potentially sets a precedent for similar cases from other victims. In an interview for Swedish media outlet Dagens industri, he noted that the sum for this individual trial may be just the tip of the iceberg.

“It’s hundreds of millions of krona, and that’s solely what I know about. Then, of course, there’s much more out there.”

Magnus Rydeving

Betsson might face the prospect of repaying hundreds of millions of krona to affected individuals, who can use this recent ruling to improve their chances of court victory. An influx of lawsuits could significantly hinder the company, costing it valuable resources and time. Betsson can still appeal to the Swedish Supreme Court, but the company has yet to disclose its intentions.

This Development Follows Broader Industry Trends

The silver lining for Betsson is that the case specifically targets the period spanning 2014 to 2019, preceding the regulation of the Swedish gambling market. Betsson was a grey market operator in Sweden before the industry underwent formal regulation in 2019. Any customers seeking legal action against the company after 2019 will likely face a significantly more difficult court battle.

This ruling aligns with similar legal precedents established in countries like Germany, Austria, and the Netherlands, where tens of millions of euros have already been recovered from gambling companies in almost 7,000 cases, with the argument being that companies acting against the law were not entitled to profits from such activities.

Sweden’s decision underscores the increasing legal scrutiny faced by gambling companies operating in unregulated markets, setting a precedent for accountability within the industry. However, it contributes to ongoing tensions between operators and EU regulators as some jurisdictions may become unsustainable for licensed stakeholders.

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As the festive season approaches, concerns are mounting in Australia’s Northern Territory (NT) over the AUD 15 million ($10.1 million) year-on-year rise in gambling losses among its populace. This trend roughly matches other regions in the country, placing increasing pressure on local authorities and the federal government to implement better player protection policies and curb the growing gambling addiction epidemic.

Gambling Tax Income Comes at a Price

Recent data from the NT’s Department of Industry, Tourism, and Trade exposes the immense daily average of AUD 411,000 ($277,000) poured into poker machines across the region. Nearly half of these losses occurred in Darwin, where 722 pokies operate within 31 venues. This sum amounts to AUD 149 million ($100.42 million)  spent on poker machines in 2022-23, a worrying AUD 15 million increase.

Despite this worrying trend, higher poker machine profits contributed to the NT government’s substantial revenue of AUD 48.4 million ($32.62 million) from gaming machine taxes and an additional AUD 15.1 million ($10.18 million) from a community benefit levy raised by casinos and hotels last fiscal year. While these results underscore the financial significance of gambling within the region, they also caused significant player safety concerns.

Government data showing a recurrent December increase and subsequent January decrease in poker machine losses over the past three years has triggered concerns as welfare groups and researchers believe financial stressors and heightened emotions during the holiday season can be particularly detrimental to vulnerable individuals. These can be especially problematic in a society already struggling with addiction.

The Problem Is Not Isolated to NT

While NT’s gambling losses are impressive, they pale compared to other regions like New South Wales, Queensland, and Victoria, where this figure reaches well into the billions. Kim Caudwell, a senior lecturer in psychology at Charles Darwin University (CDU), told ABC News that Australians had a cultural affinity for gambling, noting that the government’s efforts to curtail this phenomenon were a monumental task.

Australians love to gamble. It’s something that’s very much embedded in our culture.

Kim Caudwell, CDU senior lecturer in psychology

Regions like New South Wales have undertaken extensive measures to combat this worrying trend. The upcoming cashless gambling trial shows substantial promise. If this measure is successful, it will be a significant milestone in Australia’s battle against problem gaming and may inspire other regions to follow suit. While NT has made some efforts to reduce the number of pokies in public venues, its efforts have been largely ineffective.

As concerns escalate, stakeholders urge proactive measures, emphasizing the urgency to support problem gamblers, address the root causes of addiction, and implement comprehensive strategies to counteract the societal impact of excessive gambling. The federal government faces rising pressure for rapid reform, but it cannot do so without the cooperation of local authorities.

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Galaxy Gaming, a leading casino table games developer, has published its financial results for the quarter ended September 30, 2023. While the company reported increased revenue, its net loss doubled.

The third quarter of 2023 notably saw Galaxy Gaming report revenue of $6.1 million, representing an increase of 3%. In the meantime, the company’s Adjusted EBITDA declined by 36% to $1.5 million.

The quarter also saw the company record a net loss of $1.45 million, far exceeding the net loss of $699,000 it recorded in Q3 2022.

On a year-to-date basis, Galaxy Gaming posted revenue of $21 million, up 20% year-on-year. Adjusted EBITDA for the first nine months of the year also increased to $7.8 million, representing a modest increase of 6%.

The overall net loss for the nine-month period is still lower than the one recorded during the first nine months of 2022. For reference, the company recorded a net loss of $988,000 in the first nine months of 2023 versus a net loss of $1.8 million in the prior-year period.

Galaxy Gaming also reported a cash decrease of 13% to $15.9 million. Its total long-term debt decreased from $59.6 million to $58.7 million. Stockholders’ deficit, on the other hand, increased from $17.8 million to $18 million.

The company now expects Q4 revenue of roughly $7-$7.5 million and adjusted EBITDA in the range of $2.8-$3.2 million. This forecast assumes no impact on the company’s business from the ongoing wars in Ukraine and the Middle East.

Cravens Is Optimistic Despite the Setbacks

Todd Cravens, Galaxy Gaming’s president and chief executive officer, commented on the results, underscoring the effect of the challenges the company faced in Q3. He attributed the decline to the lower sales of perpetual licenses. While these sales will likely make the company’s quarterly results lumpier, Cravens said that the company is committed to pursuing such sales.

Cravens also pointed out that the company’s expenses increased because of various factors, including cost of sales, compensation costs and legal and regulatory expenses.

Galaxy Gaming also purchased over $1 million in equipment to fulfill the demand for GoS and EZ Baccarat placement, leading to a decline in its cash position. Speaking of EZ baccarat, the company became its distributor on September 9. Following that, it added almost 500 tables across 120 casinos. Cravens noted that the distribution of EZ Baccarat could provide Galaxy Gaming with an annual EBITDA boost of over $3 million.

Last but not least, Cravens said that the company had its best G2E show ever. According to him, Galaxy Gaming’s participation in the exposition sets it up for increased revenue in 2024.

In other news, in September Galaxy Gaming powered Carnival Corporation ships with GOS, allowing them to offer progressive jackpots to their clients.

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Gambling losses have reached an alarming milestone in Queensland, as the latest figures reveal that residents lost more than AUD5 billion ($3.2 billion) during the 2022-2023 financial year, marking an 11.3% increase from the previous year. 

Electronic Gaming Machines Account for 63.2% of Queensland’s Gambling Losses

The data, released by the Queensland government, has raised eyebrows across the state, reported ABC News. It shows that electronic gaming machines accounted for a staggering AUD3.2 billion ($2 billion), representing 63.2% of the total losses. Casino-related losses amounted to nearly AUD800 million ($512.4 million), while lotteries and wagering contributed AUD642.1 million ($411.2 million) and AUD313.8 million ($202 million), respectively, to the overall figures.

Queensland Attorney-General Yvette D’Ath expressed her concern over the rising losses, acknowledging that several factors could be contributing to this increase, including changes in spending habits. She emphasized the potential harm that excessive gambling can inflict on communities, mentioning that many Queenslanders enjoy betting, but she also noted that gambling can lead to harm.

In response to the issue, the government has implemented measures to address gambling-related harm. This includes allocating AUD7.8 million ($5 million) to Gambling Help Queensland in the state budget and enforcing regulations such as an AUD100 ($64) cash load-up limit and a minimum spin rate of 3 seconds per game for club and hotel gaming machines. 

Additionally, since July of the current year, 97% of Queensland venues have adhered to a mandatory six-hour shutdown period from 4 am.

The government is also actively working toward making cashless gaming mandatory for transactions exceeding $1000 in Queensland casinos as part of their ongoing efforts to curb excessive gambling.

Alliance for Gambling Reform CEO Calls for Urgent Action Amidst Soaring Losses

Carol Bennett, the CEO of the Alliance for Gambling Reform, expressed her astonishment at the staggering losses, especially during a time when many individuals are facing financial hardships. She urged both federal and state governments to prioritize this issue and take significant steps to protect the community from such devastating losses.

In response to the situation, the federal government recently introduced legislation to ban the use of credit cards for online gambling, addressing one aspect of the problem. Meanwhile, in Queensland, the state government regulates the number of electronic gaming machines allowed in pubs and clubs.

Clubs Queensland, an organization representing community clubs, stressed their commitment to responsible and sustainable activities. They pointed out that the revenue generated by these clubs, including those without gaming machines, benefits local organizations and essential community initiatives.

Meanwhile, in July the Palaszczuk Government in Queensland announced a new initiative during Gambling Harm Awareness Week to address excessive gambling and promote support services, partnering with Queensland Cricket to raise awareness of gambling harm and sports betting risks.

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PLBY Group, Playboy’s parent company, has lost $4.9 million because of the sharp declines across the cryptocurrency space. The company had sold its Rabbitars NFTs for Ethereum, which has now lost much of its value.

Playboy launched its NFT line in 2021 and accepted Ethereum as a payment method for the tokens. However, the price of Ethereum coins plummeted, resulting in big losses for the media company.

As reported, Playboy’s digital assets, valued at $1.75 million at the end of September 2022, have now declined to $327,000. The so-called crypto winter has greatly impacted the company’s decentralized currency portfolio.

The worst part for Playboy is that it accounts for its digital assets as “indefinite-lived intangible assets.” These are subject to impairment losses that cannot be recovered even if the price of the crypto tokens rises again.

As noted by the company, Ethereum coins’ price fluctuated heavily in 2022. Turbulent periods saw the coins rise and decline, with their lowest price being $964. However, the carrying value of each token the group held at the end of the reporting period reflects the lowest price of one Ethereum since its receipt.

Therefore, negative swings in the market price of Ethereum could have a material impact on the company’s earnings and carrying value, while only time a rise in prices will impact the company’s earnings positively, is when the Ethereum held in the balance sheet, are sold at a gain.

Playboy statement

Playboy’s Passion for Blockchain Did Not Pay Off

Playboy’s Rabbitar NFTs were launched in October 2021 when cryptocurrencies were still one of the hottest topics. Back then, few could have predicted the current state of the crypto market and Playboy was interested in exploring new monetization opportunities.

The Rabbitar line actually was not Playboy’s first venture into the world of blockchain as it had launched the so-called Liquid Summer collection earlier that same year. The Liquid Summer line was created in collaboration with the artist Slimesunday and featured photographs of Lenna Sjööblom, a famous Playboy model.

Playboy was interested in the crypto space far before minting the Liquid Summer collection. This was attested by its decision to allow customers to subscribe to Playboy TV via Bitcoin in 2018. Playboy eventually allowed customers to use Bitcoin payments on Playboy.com as well.

Despite its genuine interest in the crypto space, Playboy now has to deal with significant losses.

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