In a strategic leadership transition, the founding family behind theScore will step down from their roles at PENN Interactive, a subsidiary of PENN Entertainment, Inc. The operator retains its focus on consolidating its offerings following the successful launches of ESPN Bet and theScore Bet and should be well-positioned to pursue further growth in 2024.

The Levys Were Instrumental in Penn’s Success

TheLevy family, consisting of John Levy, Benjie Levy, Aubrey Levy, and Noah Levy, played pivotal roles in integrating theScore with PENN Interactive after the gambling giant acquired  Score Media and Gaming Inc. in October 2021. The integration involved bringing together theScore and PENN Interactive under the leadership of Benjie Levy as head of interactive and John Levy as executive chairman of theScore.

Parent company PENN Entertainment expressed gratitude for the Levy family’s contribution to its successful integrated media and betting strategy. CEO and president of PENN Entertainment Jay Snowden emphasized the Levys’ entrepreneurial spirit and pioneering role in the sports media and gaming industry, highlighting their shared passion for innovation.

I am very proud of what we’ve been able to accomplish with (the Levys), including the development of an extremely deep and talented bench at PENN Interactive.

Jay Snowden, PENN Entertainment CEO and president

Penn Entertainment is now actively searching for a replacement for Benjie Levy, the company’s head of interactive. The new hire will have large shoes to fill, as Levy was instrumental in several significant milestones for Penn Interactive. His efforts contributed to the successful sale of Barstool Sports back to David Portnoy and the $1 billion ESPN deal.

Their Departure Heralds a New Era for the Operator

John Levy will depart Penn in mid-February, while the rest of the family will leave in April 2024. This approach ensures a smooth management shift and should help avoid significant disruptions. The Levys have not yet disclosed any plans post-departure, but it is safe to guess that they will remain involved with the industry that brought them such significant success. 

Benjie Levy noted he was happy with the Penn partnership, thanking the team for their support. He highlighted the successful merger of the two organizations, allowing them to implement their integrated media and betting strategy. He added that the two companies had a shared vision, matched only by their efforts to foster a world-class working environment.

We could not be more proud of this team and what we have accomplished together, and we look forward to watching as they continue to build upon the successful foundation we established at theScore.

Benjie Levy, head of PENN Interactive and president and chief operating officer of theScore

The departure of the Levy family from their roles at PENN Interactive marks a significant transition point for the company. With its robust and experienced team, PENN Entertainment aims for a seamless leadership transition and continued growth as a leader in online gaming and sports media. The company hopes to fully leverage its resources and maintain its impressive momentum going into 2024.

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Online gambling giant 888 Group has confirmed a wave of job cuts in Israel as part of its broader organizational restructuring, impacting dozens of its regional employees. This move follows a similar round of layoffs in the country last January. Such events are rarely a good sign, but 888 should still be able to recapture its momentum and have a successful year.

The Group Commands a Sizeable Worldwide Presence

The 888 Group, with a total workforce of 11,000 individuals, including 500 in Israel, is undergoing significant changes in its operational structure. With dozens of job cuts, the company has joined a growing list of high-tech businesses that have reduced their workforce in the country, whether due to regional instabilities or rising macroeconomic pressures.

An 888 Group spokesperson commented on the layoffs, noting they were part of a broader organizational restructuring. The company aims to advance its long-term strategic plans, better positioning it for enduring success. 888 stated it would ensure the affected personnel would achieve adequate support to adapt to these changing circumstances.

Unfortunately, some of our positions in Israel have become redundant. We will offer our full support to those colleagues who were affected by the move.

888 Group statement

Exactly one year ago, the company went through another significant round of layoffs, reducing its 590 staff by almost 100. 888 again justified the move with an increasingly challenging operational environment, hoping to achieve cost reductions in all the company’s branches. The Group did not comment on whether it planned any additional layoffs.

The Layoffs Are Another Troubling Sign for 888

888 Group’s 2021 acquisition of William Hill added significant operational and regulatory complexity to its worldwide operations, necessitating the ongoing restructuring. However, the process has not been kind to the company, as disappointing financial results have damaged investor confidence. These results may indicate an unfortunate trend for the company as 2022 saw another 7% slump.

Despite ongoing difficulties, 888 maintains a positive outlook, reaffirming its efforts to promote responsible gambling across its retail business as it adapts to shifting regulatory landscapes. While 888 Group seeks to optimize its structure for long-term success, the impact on its workforce reflects the broader trend of companies in the gambling industry adjusting their operations to stay agile and competitive. 

As 888 Group moves through this restructuring phase, the industry will watch how the operator navigates the challenges posed by recent acquisitions, positioning itself for sustained growth in an increasingly competitive market. Recent high-level leadership shifts should provide fresh perspectives, hopefully reversing the negative trend and allowing 888 to better capitalize on its global presence.

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Catena Media, a company that creates content-rich websites that help users navigate the complex world of online sports betting and casino gaming, has published its Q3 results, reporting a favorable net cash position despite a Q3 revenue drop.

As reported by the company, its revenue decreased by 28% year-on-year to EUR 15.9 million ($17.4 million, current rates). The company attributed the decline to the transition of some contracts in North America from CPA to revenue share. Adjusted EBITDA from continuing operations decreased by 65% to EUR 3.1 million ($3.4 million), corresponding to a margin of 19%.

North American revenue plummeted by 29% to EUR 13.3 million ($14.5 million). In addition, the company reported an NA EBITDA margin of 44% despite the transition and intense competition. Meanwhile, the number of depositing customers in the NA region was 17% up. However, the total number of new depositing customers (NDCs) from continuing operations totaled 44,986, a decrease of 34%.

Earnings per share from continuing operations totaled EUR -0.02 ($-0.022). Catena Media also noted that 90% of its group revenue came from regulated markets.

At the close of the quarter, Catena Media reported net debt of EUR 25.4 million ($27.8 million) and concluded the quarter with a net cash position of EUR 21.2 million ($23.2 million). On September 30, Catena Media had EUR 33.5 million ($36.7 million) in cash and cash equivalents.

After Q3, the company finalized the sale of its online sports betting and casino gaming business in Italy for EUR 19.8 million ($21.7 million). At the beginning of Q4, Catena Media continued to invest in the development of an AI-based affiliation platform.

Catena Media also published its year-to-date results, highlighting revenue from continuing operations of EUR 62.3 million ($68.3 million), representing a 16% decrease from the prior-year period. NA revenue decreased to EUR 54.8 million and the number of NDCs from continuing operations declined by 24% to 186,129.

Adjusted EBITDA from continuing operations decreased by 34% to EUR 23.7 million ($26 million), translating to a margin of 38%.

In Q3, Catena Media initiated a share buyback program and agreed to divest its UK and Australian sports betting brands in a EUR 6 million ($6.57 million) deal. The quarter also saw the company part ways with Per Widerström who now heads 888.

In August, Catena Media penned a media partnership with The Sporting News. The following month, the company launched sports betting affiliation in Kentucky.

Soon after the conclusion of the quarter, Catena Media announced the completion of its share buyback program, noting that it had repurchased 2,510,116 Catena Media shares during the period from July 17 to October 31.

Michael Daly, Catena Media’s chief executive, commented on the report, noting that it has been 18 months since the company commenced the strategic review and streamlining of its business. He said that the company will now focus on more stable markets that provide opportunities for stable growth.

Predictable regulatory frameworks provide stability for operators and affiliates alike. They create a structure that allows Catena Media to respond effectively to market needs and to confront the operating challenges and opportunities we face in North America and beyond.

Michael Daly, CEO, Catena Media

In other news, Catena Media recently joined forces with five other affiliates to form the Responsible Gambling Affiliate Association.

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Q2’s impressive growth follows a significant restructuring effort Allied Gaming & Entertainment undertook last year, which aimed to realign its operations and strategic focus for improved financial performance. The company has managed to leverage its newfound financial stability to deliver sustainable financial performance and create a stable foundation for further growth in new and existing markets.

Net Loss Decreased Significantly

Allied’s Q2 revenue recorded groundbreaking growth, rising 182.3% year-on-year to $3.3 million. The company’s multiplatform content operations contributed most to the company’s bottom line, reporting quarterly revenues of $2.0 million. Land-based revenue marked a significantly lower 18.2% increase but remained healthy at $1.1 million.

A lack of foreign currency translation adjustments and a 2.1% decrease in operating costs contributed to a Q2 pre-tax loss of just $691,218, down from $3.8 million for the same period in 2022. Adjusted EBITDA grew accordingly, improving from a loss of $2.7 million in Q2 2022 to a $1.1 million loss.

Q2’s impressive results also contributed to a significantly bolstered first half. Revenue for the first six months reached $4.5 million for a 25% year-on-year increase. With operating costs down 22.0% compared to H1 2022, Allied sits at a net loss of $2.6 million– a significant improvement compared to last year’s $7.5 million loss.

New Initiatives Will Bring Additional Revenue

Q2 2023 marked the second full quarter since Allied Gaming & Entertainment completed its restructuring initiative. The process involved a comprehensive overhaul of the company’s operations, positions, and strategies. Allied aimed to optimize operational efficiency, streamline processes, and enhance the overall customer experience across the company’s offerings in the esports and poker sectors.

These encouraging results indicate a positive trajectory for Allied’s prospects and a hopeful return to profitability. The company founded two new subsidiaries, Allied Mobile Entertainment (AME) and Allied Experiential Entertainment (AEE). These will focus on developing the mobile games market and exploring experiential entertainment venue operations, creating new revenue streams.

We expect that AME and AEE will enable us to break into new markets, creating additional revenue streams and enhancing our financial performance within the next 12 months.

Allied Gaming & Entertainment president and CEO Yinghua Chen 

Although Allied is yet to reach profitability, its recent efforts mark a significant milestone in its recovery efforts. As the company continues to leverage the momentum generated by its restructuring efforts, it is well-poised to capitalize on the continued growth and evolution of the gaming and entertainment industry and achieve sustainable success in a dynamic and ever-changing market landscape.

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BetMakers released a report on its performance in Q4 of the fiscal year ended June 30, 2023. The company recorded improvements across the board and unveiled an upcoming webinar for its full-year report.

The betting tech and data partner reported $16.6 million (converted to USD) in cash receipts in Q4, which represents a modest 5% quarter-on-quarter increase.

Meanwhile, the company also posted $66.5 million in full-year cash receipts from customers for the fiscal year. This figure represents a 6% year-on-year increase from the prior fiscal year.

At the same time, net cash flow from operations experienced a sharp 39% quarter-on-quarter decline.

Finally, the company reported a closing cash balance of $27.5 million.

Q4 Was a Busy Period for BetMakers

BetMakers reported several key Q4 FY 2023 highlights, such as the execution of a non-binding term sheet with Stronach Group’s 1/ST Content business. Under the agreement, BetMakers’ Global Racing network’s race meetings will be distributed into various international markets, including the United Kingdom and Ireland.

The deal kicked off on May 1 and will see BetMakers leverage its content from many famous racecourses to power 1/ST Content’s broadcast schedule.

In addition, the company started its strategic operational restructure, hoping to improve profitability. As a result, net cash outflows from operations declined by 39% quarter-on-quarter. To achieve these results, the company had to reduce its team from 568 members to around 485 members.

The program addressing BetMakers’ deficiencies is still ongoing.

Finally, BetMakers highlighted its acquisition of the intellectual property of Form Cruncher, a racing data company that leverages racing data and odds to create engaging, dynamic and flexible content.

BetMakers Will Continue Its Restructuring Project in FY 2024

BetMakers’ board of directors announced that it is pleased with the results, adding that the period marked significant progress for the company. The directors highlighted the company’s efforts in reducing and normalizing the cost base and in simplifying the operating model.

BetMakers’ strategy is already yielding results, the directors said, as evidenced by the decline of operational cash outflows. The leaders noted that the firm will continue to execute its current strategy and strategic restructure during the first quarter of the following fiscal year.

The board is set to discuss the company’s FY2023 results during an upcoming webinar in late August 2023. The company will provide more details at a later date.

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