Data capture
Sportradar's data dominance, Germany special, Netherlands, results round-up &Co
Good morning, on Gaming&Co today:
IMG deal shows Sportradar dominates data alongside its strong results
Friday feature: What is holding Germany back?
Nederlandse Loterij targets offshore operator in new strategy
Gambling.com enjoys record 2024 driven by sports data
OPAP reaches new highs; AI drives Bragg profits
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Sportradar dominates data space with IMG deal
Technology company’s FY24 results show revenues up 26%
OMG: Sportradar reported impressive enough FY24 results as revenues rose 26% to €1.1bn and adj. EBITDA increased 33% to €222m, but it was the news that IMG Arena would be paying the Switzerland-based data group $255m to take its sports betting rights off its hands that dominated the company’s update yesterday.
Striking structure: Sportradar said the deal’s structure was unique as it “will not be required to pay any financial consideration” and the new betting rights will increase the “depth and breadth” of its global sports data. As part of IMG’s payments, $125m will go to Sportradar and up to $100m in cash prepayments will go to rights holders.
For Regulus Partners, the deal was an admission by IMG that there had been no value created and showed how difficult it is to compete with Sportradar, which now has the scale, pricing and financial firepower to continue dominating the space.
For your information: Having built up and spent vast amounts on official data rights based mainly around tennis and golf, IMG had around “5-10% share of credible independent markets”.
This however was not enough to gain pricing power, despite IMG parent company Endeavor trying to bundle them with betting services when it acquired Openbet for US$800m in 2022, “an absurdly inflated price”, according to Regulus.
Data entry: The deal is further confirmation that Sportradar “is now likely to be a price-setter for official sports data and streaming” with “the only flexible balance sheet and scale to crowd out competition", although sportsbooks and leagues “may wonder whether having such a dominant data provider is in their long-term best interests,” said Regulus.
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German market fails to live up to potential
Operator frustration is growing as industry waits to see what new government will do
Downsides only: The German gambling market has been described as one of the most restrictive in the world and is dogged by disputes over the size of the black market and poor channelisation rate. The 2021 Interstate Treaty on Gambling created a comprehensive regulated online betting and gaming market in Germany for the first time.
Key regulations include a 5.3% stake tax, a monthly deposit limit for players of €1,000 and a €1 stake limit per spin for online slots, with online roulette and blackjack regulated state-by-state. Betting operators can not offer in-play wagering, political betting and DFS.
Over-regulation killing growth: The German Sports Betting Association (DSWV) has described the regulations as “the most restrictive in the world” and industry leaders have pointed to over-regulation and product restrictions as key reasons behind a stagnating regulated market, with significant declines in revenue between 2022 and 2024.
Black market gains
Last year, the DSWV published figures that showed that in 2023, regulated German operators recorded stakes of €7.7bn, a 5.4% decrease from the previous year, with Matthias Dahms, DWVS President, saying "the money flows into the coffers of the black market providers".
The visual shows that since 2021, when the gambling treaty came into force, average quarterly tax receipts had dropped significantly, with “the migration of many players to illegal offerings” being the main reason for the drop.
Channelisation disputes highlight challenges
While the GGL reports that black market operators account for just 10% of the market, independent studies suggest a much larger share. The 2023 Schnabl Study, commissioned by the DSWV and casino trade body DOCV, said there had been a drop in channelisation from 70% in 2019 to just over 50% in 2023.
Too relaxed: The GGL’s relaxed attitude to the issues has been sharply criticised. One online casino contact said the channelisation rates for slots could be “as low as 30-40%” and the regulations meant fewer entrants into the market.
Another contact pointed to French regulator ANJ’s 2023 study of the French illegal market showing that 79% of online slots’ GGR was generated by players with problem gambling characteristics.
Slow progress: The centre-right Christian Democrat party (CDU) is leading Germany’s ‘grand coalition’ after the February elections and is generally viewed as pro-business and free markets, but is unlikely to lead to immediate changes in gambling policy.
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Dutch Lottery launches lawsuit against offshore operator
Nederlandse Loterij has opened a new tactic in the fight against the black market
Suited and booted: The lottery has launched a civil suit against Costa Rica-based online operator Lalabet, ordering it to cease operations in the Netherlands and to compensate the Lottery for lost earnings due to illegal competition. When asked if he expected the Costa Rican company to defend itself in a Dutch court, a Lottery spokesperson said “time will tell”. The suit coincided with a Dutch parliamentary hearing on gambling policy.
Stark warning: The Netherlands Gambling Authority (KSA) warned about the economic viability of the market with channelisation rates falling below 50%.
One way or another: Gaming in Holland reported a “stark dichotomy” among parliamentarians, with one side sympathetic to the argument the sector is overtaxed and over-regulated and the other side leaning towards a reversal of legalisation. Those in the middle might be convinced that more regulations might damage the viability of the legal market.
Record 2024 for Gambling.com
Affiliate looks forward to “next phase of growth” driven by sports data
Game on: Gambling.com said a “prioritisation of iGaming” and strong casino growth across its markets helped deliver record revenues in 2024. The US-based affiliate saw FY24 revenues hit $127m, up 17%, and adj. EBITDA rose 33% to $48.5m, yielding a 38% margin.
CEO Charles Gillespie said: “Our record results were driven by our team’s prioritisation of iGaming across the markets where we operate.” He added that the recent acquisition of Odds Holdings marks the company’s “next phase of growth” by integrating sports data solutions into the existing business.
The company projected FY25 revenues of $170m-$174m, with adj. EBITDA of $67m-$69m, anticipated growth of 35% and 40%, respectively.
High year for OPAP
Greek gaming operator OPAP hailed “robust growth” in sports betting and iGaming as the key driver for a 10% YoY increase in 2024 GGR to a record high of €2.3bn - with online contributing 32% of the revenue - helping OPAP deliver a 14% rise in FY profits to €970m.
AI delivering for Bragg
Bragg Gaming pointed to investments in proprietary content and AI initiatives as the key drivers behind a record 2024 that delivered revenues of over €100m.
The gaming tech firm saw FY24 revenues rise 9% to €102m, with gross profit up 8.2% to €54m and adj. EBITDA up 3.6% to €15.8m. Looking ahead, the company anticipates significant growth in Brazil and North America, expecting these regions to contribute up to 10% and 15% of revenue by the end of 2025.
Calendar
Results: 26 Mar: Playtech, Evoke
Events: 7-10 Apr: SIGMA Americas-BIS, Sao Paulo, Brazil. 13-15 May: SBC Summit Americas, Fort Lauderdale, Florida, US
Contact
Get in touch with Jake Pollard to find out more about Gaming&Co: jake@gamingandco.info
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