JKO Play, Florida, UKGC, BGC, Mohegan, & GambleAware: the week in numbers
Each week, CasinoBeats details the numbers behind some of the industry’s most interesting stories. In our latest edition, we revisit Mohegan’s fourth quarter financial performance, UK Gambling Commission warnings, the JKO Play Playtech lawsuit, and a science game buy.
The persistent work to enforce regulations regarding non-compliance with social responsibility and anti-money laundering rules is “simply unacceptable”, Andrew Rhodes, Managing Director of the UK Gambling Commission, indicated in the regulator’s “compliance and application report”
Although the year has been “one of the busiest” in a context of global disruption, Rhodes explained that while he is “impressed with the amount of execution work done”, it is also “disappointing that it is. is necessary “.
During the year, the Commission suspended five operator licenses, as well as revoked those of an operational entity and nine holders of personal management.
In addition, £ 32.1million was paid by 15 gambling companies, including Caesars Entertainment UK, Netbet and White Hat Gaming, as a result of fines or regulatory regulations, bringing a total of over important than any previous year.
However, Rhodes expressed concern that “the same two weaknesses in almost all cases”, namely the aforementioned social responsibility and AML, the reasons for which are described as “almost as worrying as the failures themselves”.
the Seminole Tribe of FloridaThe online sports betting app has been temporarily closed, following the outcome of its emergency motion to stay on. United States Court of Appeals for District of Columbia Circuit.
The rejection of the second appeal, following the first judgment of a lower federal court at the end of November, led the tribe to temporarily suspend its activities on its Hard Rock Sports Betting application.
On the result, the United States Court of Appeals for the District of Columbia said the Seminole Tribe of Florida “did not meet the strict requirements for a pending appeal stay.”
Following the court ruling, Hard Rock Sportsbook posted a statement on its twitter account which read: “Due to the [Friday] court of appeal decision, the Hard Rock Sportsbook mobile application will temporarily suspend the acceptance of new bets and deposits.
“Player information and account funds are safe and secure, and the app will stay online for easy withdrawals via all payment methods. “
“The regulated betting and gaming industry is committed to promoting safer gambling,” said the industry standards body, after expressing hope that child protection will be at the forefront. focus of the upcoming UK Government Gambling White Paper.
Michael Dugher, Managing Director of the Betting and Gaming Council, said its members “are not complacent” on the issue of protecting young people, adding that the industry “is committed to promoting safer gambling.”
The group added that the ongoing work done by the regulated industry to keep young people safe is in “stark contrast” to that of the black market, which it says “has none of the safer gambling measures offered. By its members.
The BGC has identified 15 measures which have been introduced since 2019, including a £ 10million youth gambling prevention program; rules to prevent children from viewing gambling advertisements on official football club social media accounts; ban on whistling to whistle; and age rules on advertising on social platforms, limiting advertising to people aged 25 and over for most sites. Other measures would be planned in the coming months.
JKO play was given a deadline of 5 p.m. on January 5, 2022, either to announce a firm intention to make a takeover bid on Playtech or withdraw from the race to acquire the business.
It was confirmed last month that the group, led by the former Formula 1 team owner Eddie jordan and ex-Scientific games executive Keith O’Loughlin, had become a potential third Playtech suitor, as reports circulated that a £ 3bn counter-offer could be in the works.
However, Aristocrat remains the leader in securing any potential deal after entering in October, with an offer that values the company at £ 2.7bn, or 680p per share, a 58% premium on its closing price on the market. previous week.
If he succeeds in acquiring the company, Aristocrat has expressed his intention to leverage his new Snaitech division to “operate and innovate” in Europe, while also aiming to increase revenue, expand customer base and provide material scale. in online games.
This latest update saw the UK acquisition panel impose the aforementioned deadline on JKO Play, which would cease to apply if a third party announced its intention to participate in the tender.
While JKO indicates that it does not intend to pursue its initial acquisition interests, the Aristocrat transaction is expected to close in the second quarter of 2022.
GambleAware detailed the outcome of its recent grantmaking process, as the charity aims to take “an important step towards reducing current inequalities in gambling harm.”
This saw GambleAware award £ 300,000, up from £ 250,000 specified in the original call for proposals, to increase awareness of the lived experiences of minority communities, including minority ethnic, religious and linguistic groups, with regard to the gambling and the harms of gambling.
Grants were awarded to two consortia, one led by Ipsos Mori and supported by researchers at the University of Manchester, and a second led by ClearView Research. Ipsos Mori will lead the global research.
The goals to be achieved during the 18-month program are stipulated as exploring the experiences of minority communities with gambling, harm and counseling, as well as information, support and treatment services. .
Scientific games is to provide the Atom cashless tabletop gaming solution to operators in a range of global jurisdictions, after the company finalized the purchase of ACS‘ Play on.
The renowned AToM product line, which stands for Access To On Demand Money, seeks to provide players with a seamless debit solution to live table games by allowing them to access funds without having to leave their seat.
Additionally, there are no back-end or off-network transaction fees charged by the player’s financial institution. To access the funds, players simply swipe their debit card and enter their PIN code.
The system is currently live on 650 table games at over 20 properties across North America, including locations in California and New Mexico, as well as Nevada. Atlantis Casino Resort Spa in Reno, Palace Station Hotel and Casino and Red Rock Casino Resort & Spa. AToM is also approved for use in New Jersey.
Mohegan Gaming and Entertainment praised the “hard work, dedication and support” of its entire employee network, as the group achieved record Adjusted EBITDA during the fourth quarter ending September 30, 2021.
As part of the casino operator’s continued recovery from the COVID-19 pandemic, net revenue over the three-month period increased 33.1% year-on-year to $ 391.23 million (2020 : $ 294 million).
This increase was aligned with the addition of Mohegan Sun Casino Las Vegas during the current period, combined with the COVID-related shutdown of MGE Niagara Resorts and state-mandated public health protocols at other company properties over the past year.
Operating income in the quarter increased 29.5% to $ 65 million (2020: 50.2 million), with Adjusted EBITDA up 33.1% to $ 82.8 million to $ 110.2 million in 2020, which was aligned with the aforementioned closings.
Compared to the corresponding quarter of 2019, net sales decreased by 5.5%, however, Adjusted EBITDA increased by 23.3% due to the reduction in labor costs and marketing.