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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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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Data from the Victorian Gambling and Casino Control Commission reveals Carlton as the top beneficiary of poker machine in the AFL, garnering $19.1m from its 290 machines at four different venues, averaging a return of $65,954 per machine.

Meanwhile, Richmond accrued $4.6m from 97 machines located at the Wantirna Club in Melbourne’s eastern side, resulting in an average of $47,573 per machine. St Kilda fetched $1.8m from its 83 machines at its Moorabbin venue.

Essendon stood out, collecting $14.7m from its 190 machines across two venues. Advocacy group, No Pokies at Essendon, pointed out this as the highest total since 2007.

No Pokies at Essendon President Mike Read said the club a lot of work to both on-field and off-field, and was extremely disappointed with their continued profiting off poker machines.

ALSO READ: BEST POKIES VENUES IN MELBOURNE

“In recent years we have seen AFL clubs rush to get out of the pokies business, recognising the immense social harm they cause,” Read said.

“Essendon, instead, points to the revenue that gaming machines provide the football club, as though yet another disappointing season on-field justifies the continued damage that the predatory machines inflict.”

The No Pokies at Essendon initiative is endorsed by Zoe Daniel, an independent MP and dedicated Bombers fan. Daniel voiced her concerns, saying football clubs shouldn’t be attempting to profit off fans via electronic gaming machines. s

An Essendon representative, however, defended the club’s reliance on pokies, noting, “In the aftermath of Covid, we still need the revenue from our gaming machines. Any major decisions regarding our future venues will undergo thorough scrutiny by the board.”

Interestingly, all four clubs — Richmond, St Kilda, Essendon, and Carlton — are affiliated with the Victorian Responsible Gambling Foundation’s Love the Game program, an initiative focusing on educating the youth about gambling risks.

Carol Bennet, CEO of the Alliance for Gambling Reform, challenged their association with the program given their substantial gambling earnings.

“If you’re profiting significantly from your poker machines, you can definitely be selective with your sponsors,” Bennet said.

Bennet suggested that if these clubs truly cared about their performance and community, they’d emulate teams like Collingwood, Melbourne, Geelong, and the Western Bulldogs who’ve abandoned pokies and secured seven premierships combined since doing so.

North Melbourne was notably the first Victorian AFL club to abandon pokies back in 2008. In 2022, Hawthorn followed suit, selling its two poker machine venues. Collingwood also exited the industry in 2018, with its former president, Eddie McGuire, terming it “a sound business move.”

Australia has some of the most stringent gambling laws in the world, with it one of the few countries yet to legalise online casinos, which has caused many millions of dollars to be sent to offshore gambling sites.

This means authorities have little idea about the money spent playing online pokies, with several notable AFL players in the past admitting they gambling heavily online during their careers.

Australia does have a legal sports betting industry, with the AFL one of the most popular wagering events at online bookmakers.

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In its first earnings call for the year, Sportradar registered strong growth across its revenue and adjusted EBITDA metrics. The company ended the three-month period on March 31, 2023, with a strong increase in its quarterly revenue, which was up 24% from the previous quarter, posting €207.6 million ($226.2 million), keeping its momentum from the fourth quarter of 2022.

Strong Financial Performance in the United States

The company saw the RoW betting segment account for 52% of its total revenue, which was up 25% at €108.5 million ($118.3 million). This segment was primarily driven by the performance posted in the Managed Betting Services and Live Odds verticals.

The quarterly profit stood at €6.8 million ($7.45 million), which was down from the €8.2 million ($8.98 million) reported in 2022, so a small decline, nevertheless. Sportradar’s adjusted EBITDA in the first quarter hit €36.7 million ($40 million), or an increase of 37%.

Sportradar similarly boasted a strong customer Net Retention Ratio that went up 120% in the first quarter of the year. The United States performed well for Sportradar during the quarter, with the results hitting €39.7 million ($43.3 million) during the reported period, or up by 55% from 2022.

Core betting data products and the ad:s product were largely tied to this regional success. There have been more costs and expenses during the period, however. For example, the purchased services and licenses in Q1 2023 increased to €48.4 million ($53 million), the company said.  Personnel expenses also went up in the first quarter to €77.5 million ($84.86 million). Another big expenditure was the total sports rights costs which stood at €51.2 million ($56.06 million) in the quarter.

Business Highlights and Company Successes

The company also remarked on some of its business successes over the past months, including the renewal of its partnership with Big Ten Network. The company successfully integrated its ad:s tech into Snapchat.

Sportradar also won a tender to become the Association of Tennis Professionals (ATP) data and streaming rights owner. Sportradar also demonstrated its ability to safeguard sports from corruption, with the company’s UFDS Annual Report: Betting Corruption and Match-Fixing in 2022 report flagging as many as 1,212 suspicious matches across 12 sports and 92 countries, a 34% increase.

Not least, the company embarked on some executive changes with Gerard Griffin stepping in as its new chief financial officer.

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NagaCorp Ltd, a company incorporated in the Cayman Islands with limited liability and operator of NagaWorld integrated casino resort in Phnom Penh, Cambodia, published its full-year 2022 financial results, posting a net profit.

Positive Financial Results

For the twelve months ended December 31, 2022, NagaCorp generated revenue of $460.7 million, more than doubling its 2021 reading of $225.9 million. Compared to 2019 ($1.755 billion), 2022 revenue is down by 73.8%, casting aside any notion of pre-pandemic recovery.

Turning to the company’s shareholders, Timothy Patrick McNally, chairman of NagaCorp, highlighted the positive operational and financial results of the business that was impacted by the pandemic in the previous two years.

“The gradual recovery of our business and resiliency of our earnings in the face of major market disruptions placed NagaCorp as only one of the two regional gaming companies to achieve profitability during the period,” McNally stated.

Gross profit for the largest hotel, gaming and leisure operator in Cambodia was $376 million, up 162% on the previous year but down 55.6% compared to the pre-pandemic 2019.  50% of it, or $189.8 million, came from mass market table gaming, mass market electronic gaming machines contributed an additional 28%, or $103.9 million.

EBITDA for the twelve months at the gaming and hospitality operator listed on the Main Board of The Stock Exchange of Hong Kong came at $245.4 million. In 2021, EBITDA was just $15.6 million. The huge increase in EBITDA allowed NagaCorp to register a net profit of $107.3 million for the year as compared to a loss of $147 million in 2021.

ASEAN Reopening, Cost Control

The stable financial results were attributed to the gradual reopening in ASEAN and continued stringent cost control measures which resulted in a higher profit margin. The recovery of Cambodia tourism and visitations to NagaWorld also contributed to the bottom line of the operator.

NagaCorp reported that the average daily business volumes for its mass market and premium market segments in the year have recovered by 76.8% and 66.7%, respectively, compared to the pre-pandemic peaks in 2019. Both mass market and premium market gaming contributed about 94% of NagaCorp’s total gaming revenue.

The company’s non-mass referral VIP business declined during the year but as the number of direct flights to Phnom Penh continued to increase, the average daily numbers posted stable growth.

Non-gaming revenue of the company increased significantly year-over-year positively impacted by the reopening of business operations and the easing of travel policies in Cambodia and other countries in the region that increased footfall and occupancy rates.

“We believe that the long-term prospects and outlook of the Company are favourable, with the return of tourism and continued investment in the local Cambodian economy,” concluded McNally on the company’s future outlook, expressing the Board’s appreciation to employees, shareholders, customers and suppliers.

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