Maltese gaming industry continues to positively impact the country’s economy through its role of a key driver of economic growth and innovation. The gaming industry in Malta contributed EUR 810.7 million, or around 9.5%, to the country’s Gross Value Added (GVA) during the first half of 2023. Over the same period, the industry’s overall contribution to the national economy accounted for 12.2% to testify about its crucial impact on the economic outlook of the Maltese economy.

Reaching 12.2% Stake in Malta’s Economy

The argument is further supported by the fact that the gaming industry growth in the first half of 2023 reached around 1.1% higher level than in the same period of 2022. By June 30, 2023, the Maltese Gaming Authority (MGA) approved licenses to 335 online and land-based companies following the 2022 figure standing at 357 MGS-license companies to underline the industry’s stability and a continuous contribution to Malta’s economy.

In the same period of 2023, the regulator collected EUR 41.2 million in license fees and compliance levies. When compared to EUR 39.8 million collected by MGA in the first half of 2022, it is evident that the industry has kept the momentum and maintained financial resilience. Also, the industry’s GVA increased from EUR 801.8 million in H1 2022 to EUR 810.7 million in the first half of 2023 to showcase a 1.1% growth achieved by the industry on a year-over-year basis.

Expecting Further Growth in 2024

The growth was propelled by 26% increased visits to local casinos in the first half of 2023.The gaming sector therefore directly contributed around 9.5% to the country’s economy and is expected to continue growing at a slightly slower pace. In 2024, 74% of online gaming operators expect further revenue growth while 60% of them anticipate increased employment. On the contingency side, operators generally expect higher operating costs and divergent regulatory actions requiring quick adaptation.

Commitment to Innovation and Social Responsibility

The industry promotes transparency and responsible gaming and considers the integration of environmental, social, and governance (ESG) principles essential for long-term profitability. Also, the utilization of emerging technologies enables the gaming sector to maintain customer interest through innovative integrations of traditional and other games. For example, innovative products like digital receivables and tokens are increasingly included in transactions and supported by the regulatory body.

As a result, Malta’s gaming industry expects positive market trends in the forthcoming period and continues to adjust the established gaming landscape to the evolving regulatory framework and emerging market trends. Overall, the sector maintains its stability and continues to drive Maltese economy.

Source: “MGA Interim Report 2023: Malta’s gaming industry maintains strong economic contribution’’. SiGMA. December 2023.

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Last week marked the debut of ESPN Bet, the newly rebranded sports gaming app owned by Penn Entertainment. The new sports gambling app launched for 17 US states, entering important markets such as New Jersey, Pennsylvania, Colorado, Iowa, Maryland and Michigan, among others. The latest launch comes after a $1.5 billion deal announced between Penn Entertainment and ESPN, granting the gaming company the permit to use the name for the sports gambling app for the next decade.

The recent launch of ESPN Bet immediately impacted positively the stock of the leading gaming and entertainment company. On Monday, the Bank of America upgraded the rating for Penn’s stock from neutral to buy. Shaun Kelley, the leading analyst for Bank of America, highlighted the positive change and spoke about the strong launch of ESPN Bet across the country.

In a note to clients, he explained that the new sports gambling app is gaining popularity quickly, moving its way up charts and reaching more clients. Kelley outlined that ESPN Bet has been among the top apps on the Apple store since Tuesday last week. Moreover, he outlined that the sports gaming app has accumulated a 4.8 rating on the App Store along with a staggering 865,000 downloads.

“ESPN Bet is dominating initial download activity and charts, proving it is cutting through to customers. ESPN Bet has been #1 or #2 of all free apps on the iOS store since last Tuesday, with 865K cumulative downloads and a 4.8 app store rating, even without data from NFL Sunday.“

Shaun Kelley, analyst for Bank of America

Penn’s Stock Price Target Increases

The upgrade in Penn’s casino stock from neutral to buy by Bank of America undoubtedly underlines the expected growth of ESPN Bet and highlights its successful launch. When it comes to the price target, it increased from $27 to $30 as of Monday. Additionally, as of Monday, Penn Entertainment’s stock was more than 7% higher.

According to Kelley, ESPN Bet “creates an asymmetric risk-reward.” He explained that the app performed much stronger than expected when it came to initial downloads. Moreover, Kelley pointed out that its promotional offers showed discipline. Finally, he highlighted the importance of Penn’s core gaming business which demonstrated stable third quarter earnings.

While ESPN Bet is just penetrating the regulated gambling sector, it is up against fierce competition in the face of giants such as DraftKings, FanDuel and Caesars, among other sportsbooks that have already established their presence in different states across the country.

Yet, ESPN Bet anticipates offering a one-stop-shop experience for sports fans and bettors alike, offering not only betting options but highlights, scores and stories, a move that is likely going to help it engage with new customers.

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