French casinos and mayors start fight back against iCasino
French casinos and mayors start fight back against iCasino
France iCasino, Results: Betsson, Gentoo, BC, Evo, News shorts
Good morning, on Gaming &Co today:
France’s land-based casinos and more than 100 mayors have criticised the government’s plans for online casino regulation.
Results round up: Betsson and Gentoo Media on the up, Better Collective lowers forecasts, Evolution’s lower margins as ongoing Georgia strikes impact business.
News shorts: Brazil senator' wants to ban OSB, BetMGM in Sweden, Scout Gaming-Bet365.
French casinos and mayors to fight against iCasino proposal
Casinos and French mayors campaign against government’s iCasino regulatory proposals.
Fight back: France’s land-based casinos are fighting back against the government’s plans to regulate online casino. Grégory Rabuel, CEO of Barrière Groupe and President of the trade group Casinos de France, appeared on French TV overnight to criticise the government for its lack of consultation with land-based casinos and the €1bn figure France that it said would be recouped in tax revenues.
Around 130 French mayors also published an editorial in Le Figaro yesterday stating their opposition to the measure. They said it was akin “to opening a Pandora’s box” and would have the opposite effect to the government’s budget target of raising funds.
“Online casino operators, often based outside the EU, would escape the social and tax constraints to which physical casinos are subject. A privilege that will give them an overwhelming advantage,” said the mayors.
They also called for the adoption of Casinos de France’s favoured model, which would see a regulated iCasino market mirror the country’s land-based environment.
“It is possible to create a secure framework for the opening of online casinos, which could benefit public and local finances, in particular by drawing on the expertise of operators of physical casinos,” they added.
Speaking on French TV yesterday evening, Rabuel said the framework that has been set out is ideally “suited to the country’s online operators” and, in effect, bypasses the land-based casinos.
All in the timing: Among industry executives the announcement has been well received, but they also could not help notice how the timing seemed to work out perfectly for Française des Jeux.
One industry contact told Gaming&Co: “FDJ has just closed its acquisition of Kindred Group and as soon as the authorities green light the launch of online casinos, it will be ready with all of Kindred’s (online casino) brands at its disposal.”
Cynical times: “Some observers might see the timing as purely coincidental, others, more cynically, might draw different conclusions,” they added.
Real life impact: The lack of consultation has upset Casinos de France, and while Rabuel “is defending his parish”, in the words of one casino executive, “his comments about the reliance of small communes on their casinos for large chunks of their local budgets will resonate, while the job losses that any casino closures would lead to will mean social costs that the state will have to bear”.
Financial expediency: But, time and financial pressures are of the essence for Prime Minister Michel Barnier’s government, and the industry contacts concurred that the open market model spelled out in the amendment would probably be simpler to implement and generate more tax revenues.
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Results round up
Betsson’s Q3 revenues rose 18% to €280m while EBITDA was up 17% to €80m. In the earnings release, the company spoke about what the acquisition of Sporting Solutions from FDJ will bring to its sports-betting capabilities.
CEO Pontus Linwall highlighted the group’s sponsorship activities in Greece, growth in Latin America and acquisition of od odds and trading specialist Sporting Solutions from FDJ.
Betsson also refinanced a new three-year senior unsecured €100m bond at “half the credit spread compared to the refinanced bond”.
Gentoo Media, the media group previously operating as GIG Media, said it expects Q3 revenues to reach €30m with an EBITDA margin of 46-48%, marking its “15th successive quarter with all-time high revenues”, it said. The Company said it was “confident” of hitting FY24 results of “€125-135m and an EBITDA margin of 45-50%” with “strong seasonality, particularly within casinos” in Q4.
Affiliate giant Better Collective has lowered its FY24 revenue guidance to €355-€375m, down from its previous guidance of €395-€425m. It said this was due to lower activity from its US partners and “a continued slowdown in Brazil ahead of the launch of the regulated market on January 1”.
BC also lowered its EBITDA forecast to between €100-€110m from €130-€140m and said it would streamline its operations to save €50m from next year.
Live casino provider Evolution has forecast FY24 adj. EBITDA margins of 69-71% and slightly below expectations Q3 and Q4 margins of 68.5%. The company said it had launched more content and planned to open a live studio in Brazil, but the strikes at its offices in Georgia meant it was operating at 60% of its capacity.
News shorts
With Brazil set for the launch of regulated iGaming for January, a Brazilian senator has introduced a bill to ban online sports betting over concerns around debt and mental health.
Senator Sérgio Petecão introduced his bill and said making OSB more accessible to the public will lead to a rise problem gambling and addiction issues. Retail betting would remain legal under his proposal.
The news follows a recent report by Brazil’s Central Bank that $550m was bet in August by citizens receiving government benefits. President Lula da Silva also recently stated that the regulated market would be shut down if it doesn’t reduce problem gambling levels or impacts poor and vulnerable citizens.
BetMGM has followed its UK and Netherlands launches by going live in Sweden. The launch was carried out by its LeoVegas entity.
Fantasy sports betting provider Scout Gaming has extended its agreement to provide its product to UK giant Bet365.
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