Supplier Evolution has released its Q2 2024 financial results, revealing a notable 15.9% year-over-year increase in revenue, totaling €508.4 million ($553.3 million). This brings the company’s H1 2024 revenue to the €1 billion mark, showcasing robust growth.

The company also reported a 10.9% year-over-year increase in Q2 EBITDA, reaching €345.8 million, with the first half of the year seeing a 13% rise to €691.5 million. Evolution’s EBITDA margin for the initial half of 2024 was recorded at 70.3%.

Mixed Profit Margins and Financial Performance

Despite the overall revenue growth, Evolution’s profit marginsdeclined to 52.9% in Q2 2024, down from 59.9% in Q2 2023. However, the period still saw a 1.9% year-over-year increase in profit, totaling €269.1 million. Profits for H1 2024 rose by 4.5% year-over-year, reaching €538.3 million.

Evolution’s CEO, Martin Carlesund, expressed satisfaction with the company’s financial performance, stating, “For the second quarter of 2024, Evolution reports revenue of €508.4 million, corresponding to a year-on-year revenue growth of 15% and an EBITDA margin of 68%. Revenue growth at constant currency is estimated to be 19% for the quarter. It has been a very active second quarter at Evolution, and I am happy with the progress we have made on several of our initiatives.”

Strategic Initiatives and Market Expansion

Evolution’s Q2 was marked by the introduction of a new capital allocation framework and the launch of a share repurchase program. Additionally, the company announced a deal to acquire Galaxy Gaming for $85 million, aiming to expand its presence in the US market. The acquisition is expected to be finalized by mid-2025.

Carlesund highlighted the company’s efforts to introduce offerings in newly regulated markets, such as the Philippines, Brazil, and the Czech Republic. He noted, “We are intensively working on introducing our offering to new markets that have recently regulated or are in the process of regulating.”

New Product Developments and Market Growth

Evolution has continued to innovate, with plans to release over 100 new games in 2024. Despite the postponement of the highly anticipated Lightning Storm game to Q3, the company successfully launched https://www.livedealers.com/evolution-unveils-balloon-race-a-new-era-in-online-slot-gaming/ Balloon Race, a new online live slot game, and Lightning versions of popular games SicBo and Dragon Tiger in Q2.

The company’s Live Casino segment reported an 18% year-on-year revenue increase, while the RNG segment saw a modest 2% growth. Carlesund expressed confidence in the company’s product pipeline, stating, “We have a high pace of fantastic game delivery in 2024, even better than in 2023.”

Evolution’s Q2 2024 financial results demonstrate strong revenue growth and strategic advancements. Despite some challenges, including reduced profit margins and a large payout on its Crazy Time game, the company remains optimistic about its future. With continued innovation, market expansion, and strategic acquisitions, Evolution is poised for further success in the global gaming industry.

Source:

Interim Report | January-June 2024 | Evolution AB (publ) [pdf], Evolution, July 2024.

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The Spanish online gambling market has shown robust growth in the first quarter of 2024, as reported by the Directorate General for the Regulation of Gambling (DGOJ). The Gross Gaming Revenue (GGR) for the quarter reached €350.69 million, marking an 11.23% increase quarter-over-quarter and a 15.14% increase year-over-year. This significant rise underscores the market’s resilience and recovery from previous fluctuations.

Growth Across Key Segments

In terms of player transactions, both deposits and withdrawals showed notable increases compared to the previous year, rising by 15.85% and 13.90%, respectively. Quarter-over-quarter, deposits grew by 5.61% while withdrawals saw a modest increase of 0.72%. Despite the overall growth, marketing expenditure saw a slight decrease of 1.0% quarter-over-quarter, while the number of new accounts surged by 15.21%.

The GGR is distributed across various gaming segments, with betting, casino, bingo, contests, and poker all contributing to the total. Betting accounted for €150.28 million (42.85% of the total GGR), followed by the casino segment with €167.76 million (47.84%). Bingo contributed €4.19 million (1.19%), contests €0.002 million (0.00%), and poker €28.45 million (8.11%).

Betting and Casino Drive Growth

The betting segment experienced a significant positive variation rate of 30.99% quarter-over-quarter and 15.37% year-over-year. This growth was largely driven by a remarkable 588.84% increase in pre-match betting, although in-play sports betting saw a decline of 31.69%. Other betting categories also grew by 1.57% this quarter, whereas horse betting decreased by 28.36%.

The casino segment, despite a slight quarter-over-quarter decline of 2.05%, showed a strong annual growth rate of 17.02%. Within the casino segment, slots increased by 14.98% year-over-year, and live roulette saw an impressive 22.19% growth. Quarter-over-quarter, Blackjack, conventional roulette, and live roulette grew by 7.32%, 9.69%, and 6.37%, respectively, while slots fell by 7.51%.

Other Segments Show Mixed Results

Bingo showed steady growth, with a 9.18% increase quarter-over-quarter and 24.93% year-over-year. Conversely, the contests segment continued its irregular performance, experiencing a dramatic fall of 96.79% quarter-over-quarter and 99.38% year-over-year.

Poker presented a positive outlook with an 11.98% quarter-over-quarter increase and a 3.99% year-over-year rise. Poker tournaments grew by 11.19% quarter-over-quarter and 2.04% year-over-year, while poker cash games increased by 13.91% compared to the previous quarter and 8.91% compared to the same quarter of the previous year.

Player Engagement and Market Dynamics

The average number of active game accounts per month reached 1,327,575, reflecting a 4.57% increase quarter-over-quarter and a 14.58% increase year-over-year. The average number of new game accounts per month stood at 148,862, with a growth of 15.21% quarter-over-quarter and 33.64% year-over-year.

For this quarter, there were 78 licensed operators in the market. The number of active operators by segment included 41 for betting, 4 for bingo, 50 for casino, 2 for contests, and 9 for poker.

Marketing Expenses

Marketing expenses for the last quarter totaled €112.79 million, broken down into €14.27 million for affiliation expenses, €1.07 million for sponsorship, €55.67 million for promotions, and €41.78 million for advertising. Compared to the previous quarter, marketing expenses declined by 1.00% but increased by 14.86% year-over-year. Specifically, sponsorship decreased by 12.55%, affiliates by 0.87%, advertising by 7.68%, while promotions increased by 4.93% quarter-over-quarter. Year-over-year, sponsorship fell by 27.23%, affiliates increased by 14.82%, advertising by 22.49%, and promotions by 10.92%.

Source: “1st Quarterly Report 2024”. Directorate General for the Regulation of Gambling. June 4, 2024.

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In its recent trading news, the Rank Group has highlighted a significant 6% year-on-year increase in income for the third quarter, reaching an impressive £182.3 million. This growth trajectory shows the company’s solid performance across its digital and land-based gaming sectors.

Land-Based Revenue Overview

The Grosvenor venues continue to lead in terms of revenue generation for the Rank Group. Despite showing a modest growth rate of 3% in Q3, these venues remain a cornerstone of the company’s revenue stream. The increase in visitor numbers by 5% has contributed to a notable 2% rise in average weekly net gaming revenue (NGR) at Grosvenor, aligning with Rank’s strategic goal of achieving £7.0 million weekly NGR from its Grosvenor venues business.

On the other hand, the Mecca bingo venues have experienced a remarkable 12% earnings surge. This growth can be attributed to a combination of increased visitor numbers, which rose by 5% from last year, and a substantial 7% rise in spending per visit. Notably, this surge in gain coincided with strong trading periods during Mother’s Day and Easter weekends, indicating robust consumer engagement with Mecca’s offerings.

The Rank Group’s success extends beyond the UK, with its Enracha venues division in Spain witnessing a commendable 9% revenue increase, amounting to £10.0 million. This international growth underscores Rank’s ability to capitalize on diverse market opportunities and expand its global footprint.

Digital Growth and Operational Enhancements

Digital revenue saw a significant uptick of 6%, totaling £55.0 million in Q3. The UK digital sector experienced a 4% revenue increase, while Spain witnessed an impressive 20% year-on-year growth. Mecca’s digital net gaming revenue (NGR) surged by an impressive 21% in the UK, showcasing the strong performance of its digital gaming offerings. However, Grosvenor’s digital NGR saw a marginal 1% rise, attributed to a weaker gaming margin stemming from significant customer wins.

To further enhance its digital operations, Rank implemented a new content management system for its Mecca and Grosvenor online platforms during Q3. This system aims to improve operational efficiency and facilitate rapid market responsiveness for customer proposition enhancements.

Looking at the year-to-date performance, Rank Group’s income for the nine months ending in March reached a substantial £544.9 million, marking an impressive 8% increase compared to the previous year. This robust performance is driven by the continued growth of Grosvenor and Mecca venues, along with positive digital revenue trends.

As the fiscal year progresses, Rank anticipates that its strong performance will persist, with operating profit expected to align with market expectations for the year ending June 30. This outlook is bolstered by ongoing operational enhancements and strategic initiatives aimed at maximizing revenue potential.

CEO John O’Reilly said: “We continue to make good progress across both our venues and online businesses. Q3 trading is very much in line with the board’s expectations. Performance continues to improve. We have the very important land-based reforms from the government’s white paper to look forward to, which we hope to start implementing in the coming months.”

Stake Sale in Passion Gaming

Rank has announced its decision to divest its stake in Passion Gaming, an Indian online rummy business. While the financial terms of the deal remain undisclosed, Rank has emphasized that the transaction represents a significant strategic move for the company’s portfolio optimization.

Source: ”Spain and Mecca Bingo revenue surges as Rank hails Q3 progress”, igamingbusiness.com, April 18, 2024.

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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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The International Betting Integrity Association (IBIA), the leading global voice on integrity for the licensed betting industry, has released its 2023 sports betting integrity report. The organization notably said that the number of suspicious sports betting alerts has decreased significantly.

According to the IBIA, a total of 184 alerts were reported in 2023, representing a year-on-year decrease of 101, or 35%. For reference, a total of 285 alerts were recorded in 2022. Moreover, the IBIA pointed out that between 2019 and 2022, the annual average number of alerts was 244.

In addition to recording 184 alerts, the IBIA’s suspicious betting activity data proved that 74 matches were corrupted. Luckily, the body was thus able to report an increase in the number of sanctioned violators.

The IBIA noted that its ability to recognize and deter suspicious betting activity has increased dramatically in recent years. The organization now comprises gambling companies responsible for more than $137 billion of annual global betting turnover.

In addition to demonstrating the improved IBIA capabilities, the latest figures also highlight the importance of requiring sports betting operators to join an international integrity monitoring body. The integrity specialist cited Brazil’s new rules as a perfect example.

IBIA’s chief executive officer, Khalid Ali, commented on the latest figures, describing them as “encouraging.” According to him, they demonstrate that his organization’s monitoring and alert network is truly making a difference.

Despite this progress, we must remain vigilant and recognize that the greatest threat to sports integrity comes from unregulated operators, most notably in Asia.

Khalid Ali, CEO, IBIA

Soccer and Tennis Were the Most Reported Sports

In the meantime, the IBIA confirmed that its alerts led to the successful sanctioning of 21 clubs, players and officials – a substantial increase from 2022’s 15. The sanctioned people in 2023 included 8 tennis athletes, 7 umpires and 4 snooker players.

Despite the high number of sanctioned tennis players, soccer was the sport with the majority of alerts with 63. This number is more or less in line with those reported in 2022 and 2021 when the IBIA reported 67 and 66 soccer-related alerts, respectively.

Tennis was the second most reported sport with 54 alerts. This figure notably represents a stellar 49% decrease on the 2022 total of 206.

Mr Ali praised the decrease in tennis alerts. He added that the IBIA will continue to work closely with the International Tennis Integrity Agency (ITIA) and other important tennis organizations to continue prosecuting wrongdoers. Ali concluded that the strict sanctions imposed on recent violators have proven effective in discouraging fraud.

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The New York sports betting market continues to post record-breaking monthly results. As reported by the New York State Gaming Commission, sports betting operators in the state recorded betting handle of $2.1 billion in November. This exceeds October’s spectacular results when the industry also exceeded $2 billion in bets, becoming the first state to surpass this milestone.

November’s record-breaking results represent a 5.1% month-on-month increase and a whopping 35.7% year-on-year increase. The state’s ability to not only repeat but surpass the October results attests to the fast growth of the local industry and the increased interest in betting products.

Despite the favorable results, the actual revenue recorded by sportsbooks declined by 9.2%. For reference, sports betting operators in The Empire State reported total revenue of $150.9 million and a hold rate of only 7.1%. For reference, the industry had a hold rate of 8.2% last month.

The lower hold rate does not undermine sportsbooks, though, as their revenue still exceeded the revenue recorded in November 2022.

FanDuel Dominated the NY Market

New York’s Gambling Commission also provided information about the performance of the state’s legal sports betting operators. The market continued to be dominated by FanDuel, which singlehandedly handled $925.4 million of the total $2.1 billion in handle. It was followed by DraftKings, which recorded a betting handle of $732.1 million. Rounding up the top three is Caesars with a handle of $204.9 million

BetMGM, on the other hand, reported $120.6 million in handle. Rush Street Interactive, PointsBet, WynnBet and ResortsWorld Bet failed to surpass the $100 million mark, reporting handle of $76.6 million, $27.2 million, $11.3 million and $6.8 million, respectively. In November, Bally’s also returned to New York, generating $4.3 million in handle through its BallyBet brand.

In terms of revenue, FanDuel maintained its lead, reporting $69.2 million from its November operations. DraftKings remained in second place with a revenue of $54.3 million. Caesars, on the other hand, earned $11.6 million.

The top three were followed by BetMGM at $7.9 million. Rush Street Interactive and PointsBet, meanwhile, recorded handle of $4.9 million and $2.4 million respectively. ResortsWorld Bet, BallyBet and WynnBet failed to hit the one million mark, instead reporting revenues of $483,000, $234,000 and $312,000, respectively.

The sports betting operations in New York resulted in $83 million in taxes to the state.

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Sports streaming service DAZN is seeking ways to raise fresh funding, reports say. According to Bloomberg, the sports streaming giant wants to raise as much as $1 billion through various initiatives.

The reports claim that DAZN Bet has been discussing the matter with potential advisers and eyeing a range of capital-raising strategies. Bloomberg also implied that DAZN might come up with a definitive plan within a few months.

This news comes a few months after DAZN put its initial public offering plans on hold amid devastating losses and because of heavy market headwinds. The company reported a loss of £2.3 billion in 2021, causing it to rethink its strategy and postpone its IPO ambitions.

While an IPO is not yet out of the question, DAZN seems to be exploring alternative ways to generate funding. However, the company has yet to confirm whether this report is correct.

DAZN Wants to Be Self-Sufficient

DAZN’s goal is to become an independent streaming company that doesn’t have to rely on its sports betting business to be sustainable. According to Shay Segev, DAZN’s chief executive officer, DAZN should remain independent of its betting arm, leaving betting as an additional revenue stream.

In earlier interviews, Segev said that he isn’t necessarily hellbent on making DAZN go public but believes that the move would “make sense” as he hopes to follow the success stories of Amazon and Netflix.

DAZN has already secured sports media rights for a number of influential sports leagues, cementing itself as the biggest sports broadcaster in Europe.

Speaking of DAZN Bet, the company’s betting division secured access to the German market a few months ago, solidifying its European reach.

In November, DAZN Bet also formed a partnership with Pragmatic Play, which powered the operator’s business in Spain.

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Reports claim that Maverick Carter, an American sports-marketing businessman and media personality, has admitted to betting with an illegal operator. According to The Washington Post, Carter confessed his involvement in unlicensed gambling in 2021, during the investigation into ex-Minor League pro Wayne Nix.

Back then, Nix plead guilty to the operation of an illegal sports betting business and the filing of false tax returns. During the investigation, Carter admitted to a federal agent that he made roughly 20 bets with the illegal bookmaker.

Carter, who manages the Los Angeles Lakers’ superstar LeBron James, told the federals that he placed around 20 bets with the bookmaker. All of the bets were roughly between $5,000 and $10,000 and were all placed on football and basketball. However, none of the bets Carter made were placed on the Lakes and he did not make any bets on the behalf of other people.

Carter Cooperated with the Authorities

Carter is not an athlete or sports official, meaning he is not barred from wagering on sports, as per the NBA’s rules. As a result, he avoided sanctions from the league.

Adam Mendelsohn, a media spokesperson for Maverick Carter and LeBron James, contacted The Washington Post on the matter, clarifying that the former was never the target of the investigation. Mendelsohn added that the businessman cooperated with the federals and helped resolve the issue.

In addition, Carter was never charged and was never contacted on the matter again, Mendelsohn said.

Nix Ran a Gambling Operation for Athletes

For reference, the Wayne Nix investigation uncovered a longtime-running operation that included many high-profile clients from the sports sector. The operation had been running for over twenty years and was focused on catering to the betting needs of professional athletes (who are, under normal circumstances, prohibited from betting).

The operation was run by former athletes who acted as bookmakers, offering betting on sports to clients across various leagues.

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Kazakhstan parliament members have approved changes to the country’s Tax Code that will require operators to provide reports on the activities of local players.

Under the new rules, owners of gambling and lottery companies must submit information about the size of bets players have placed, as well as data on gambling losses and winnings. The aforementioned information must be sent online to the country’s National Tax Authority.

To make sure that gambling companies are compliant with these new rules, Kazakhstan will also require operators to adopt new tech systems that automatically send the information to the authority.

In addition to requiring operators to provide information about their customers’ losses and winnings, Kazakhstan has also introduced rules that will require national banks to provide information on the gambling transaction of local players within 10 days of the transaction.

Kazakhstan Is Updating Its Gambling Laws but Plans No Dedicated Regulatory Framework

The introduction of the new laws is in line with the ongoing gambling reforms ushered in by President Kassym Tokayev. The president seeks to address the concerning gambling harm rates among Kazakh citizens, especially among younger players.

Despite that, Tokayev has not announced further regulatory plans. For reference, the country has no clear regulatory framework like other modern gambling markets.

Vice Minister Yerzhan Erkinbayev was put in charge of the review of the country’s gambling rules. Several weeks ago, Erkinbayev published the first set of proposals, which included the raising of the legal age for gambling from 21 to 25.

Erkinbayev’s proposals also envision harsh penalties for gambling operators that violate the rules by offering gambling to underage customers.

Tokayev continues to review the Vice Minister’s recommendations, which may lead to further changes in Kazakhstan’s gambling sector.

Earlier this year, the leading esports wagering solutions supplier Oddin.gg joined forces with Olimpbet, a Kazakh sports betting operator.

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Sean Pattwell, executive director of the New Jersey Casino Reinvestment Development Authority, is rumored to be preparing to resign from his position. Sources told ROI-NJ, a news outlet covering events in New Jersey, that the director may depart from the authority very soon.

ROI-NJ was contacted by three separate people on the matter, all of whom preferred to remain anonymous because of the sensitive nature of the information.

According to the reports, Pattwell may leave by the end of the year, although none of the individuals who contacted ROI-NJ was able to provide an exact date. The people familiar with the matter couldn’t confirm what Pattwell would do next but noted that he would pursue other opportunities.

Pattwell joined the New Jersey Casino Reinvestment Development Authority on April 1 last year, replacing Matt Doherty, the authority’s previous executive director. Before joining the body, he served the insurance industry and spent some time as the co-CEO of Herbert L. Jamison. He is also the founding chair of Grosvenor Brokers.

According to the news outlet’s report, the people familiar with the matter have suggested that Pattwell may now return to the private sector. They also told ROI-NJ that the New Jersey Casino Reinvestment Development Authority is on the lookout for Pattwell’s successor.

At the moment, the authority is still discussing the matter and considering its options. ROI-NJ’s concluded that Pattwell’s successor will ultimately be appointed by Governor Phil Murphy.

New Jersey’s Casino Industry Remains Strong

Speaking of New Jersey, a recent report from the Division of Gaming Enforcement (DGE) highlighted the growth of the local casino industry. According to the regulator, the gambling revenue for October increased to $487.1 million, which represents a 9.3% year-on-year growth.

Year-to-date revenue was also strong, demonstrating the resilience and momentum of the local gambling sector. Casino gaming continued to be the main revenue stream and was responsible for almost half of the total revenue.

A week ago, the Garden State’s gambling regulator forced operators to return $77,000 to underage customers and self-excluded players.

In the meantime, New Jersey continues to discuss the future of smoking at Atlantic City’s casinos. Seeking to revisit old laws that exempt casinos from the indoor smoking prohibition, proponents of the ban claim that the smoke jeopardizes casino workers’ health. However, casino companies are wary of such a measure as they believe that it would undermine their profits.

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