Results: Entain, BetMGM, Betsson
Entain, BetMGM, Betsson Q1s... Novomatic-Ainsworth, UK, crypto value &Co
Good morning, on Gaming&Co today,
Results galore: Entain, BetMGM, Betsson, Kambi
Slot magic: Novomatic to complete takeover of Ainsworth
Keep it simple: UK government aims for ‘single gambling tax’
Overvalued: Crypto gambling market value debunked by experts
News shorts: EU risk to public blockchains, Stake Engine, Finland
Subscribe to Gaming&Co!
Entain confirms David as CEO, BetMGM on the up
Stella David gets top role on permanent basis
David to drive gaming Goliath: Ladbrokes and Coral owner Entain has appointed Stella David as its permanent CEO following her second stint as interim leader after Gavin Isaacs’ abrupt departure in February. David, who previously stepped in as interim CEO after Jette Nygaard-Andersen’s resignation in December 2023, is “highly regarded” by the operator’s stakeholders, and her appointment will provide “consistency and stability”, interim Chair Pierre Bouchut said.
The announcement came as Entain unveiled strong Q1 results, with an 11% YoY increase in total net gaming revenue, including its 50% share in BetMGM. Growth was notable in the UK and Ireland, with a 10% rise, and in Central and Eastern Europe, up 12%, while Brazil saw a 31% increase in the first months of the new licensed regime.
In the US, Adam Greenblatt, CEO of BetMGM, Entain’s joint venture with MGM Resorts, said prediction markets were both a threat and an opportunity as the group reported a 34% rise in net revenue to $657m, with iGaming up 27% and OSB rising 68%. EBITDA was $22m and increased $154m vs. Q124, with online casino contributing $133m of the total. BetMGM said it held a 22% market share in iGaming and 8% in OSB in the US.
Latin America to the fore for Betsson
Brazil’s early steps: The LATAM region accounted for 25% of Betsson’s 18% YoY revenue growth to €294m in Q1, but with Brazil activity in its earliest days, CEO Pontus Lindwall pointed out to analysts that Betsson was “making a slow start in Brazil, hence it's not impacting the opening of the second quarter much at all” following the obtention of its dot br licence in February.
Argentina performed strongly and the group extended its sponsorships with Boca Juniors and Racing Club as LATAM revenues increased by €46m during the period. However, higher gaming taxes from regulated markets representing 60% of group revenues led to a 2.2% drop in EBITDA margins to 26.5%, although EBITDA still increased 9% to €78m.
B2B revenues increased 32% to €90m and Central and Eastern Europe was up 11% to €122m, driven mainly by Betsson supplying B2B services for its Turkish operations. The region represented 42% of Betsson revenues.
France consolidation: The Nordics were down 19% to €38m due to lower casino revenues and Western Europe performed strongly, increasing 28% to €55.5m. The region accounted for 19% of revenues, Betsson said France had consolidated and grown on a quarterly basis.
The group deferred payment of its BetFIRST acquisition in Belgium and completed its takeover of Betclic Italy, a “relatively small acquisition”, and that of Polish Bukmacherska at the start of Q1.
Slow start to 2025 for Kambi
CEO says Q1 performance “below expectations for a company of Kambi’s standing”
Kambi revenues fell 4% to €41.5m, excluding €4.4m of transition fees received in Q1 2024 and the group’s CEO Werner Becher was open about his disappointment at the figures. “Our financial performance was below what should be expected of a company of Kambi’s standing and far from the future level I aspire to,” he said.
The company was hit by punter-friendly results in NBA’s March Madness. Becher said Kambi’s broader base of customers had helped mitigate the effects.
“Our growing global network reduces our exposure to such player-friendly outcomes, leading to trading margins of 10.2% for the quarter.”
Founded in 2005, Play’n GO is a global leader in casino entertainment, known for iconic games like Book of Dead and Reactoonz. A pioneer in mobile gaming, the company delivers 350+ premium titles across 30+ regulated jurisdictions. Committed to a fun, responsible iGaming industry, Play’n GO collaborates with operator partners, regulators, and researchers to provide the world’s greatest casino gaming experience. Having expanded into music via its Play’n GO Music brand, Play’n GO is also a proud partner of MoneyGram Haas F1 Team. For more info, visit www.playngo.com.
Novomatic to complete full takeover of Ainsworth
Austro-Australian deal set to complete in H2
Don’t get on the wrong plane: Austrian gambling giant Novomatic is set to take full ownership of the Australian gaming machine manufacturer Ainsworth Game Technology in a deal worth around $336.5m.
Novomatic said it will purchase the 47.1% of shares it does not currently own in the company, having acquired a 52.9% majority holding in the business in 2016. The transaction is set to complete in H2.
Ainsworth shareholders will receive AU$1 per Ainsworth share, representing a 35% premium, its independent board committee (IBC) has recommended that shareholders vote in favour of the acquisition.
The deal represents another international move by Novomatic following its acquisition of French casino group Vikings Casinos in January.
UK government launches ‘single gambling tax’ consultation
Project aims to bring three gambling taxes under one banner
Keep it simple: HMRC has launched a 12-week consultation to gather feedback on a proposed single tax on remote gambling for UK-licensed operators. The review aims to simplify and modernise the existing system, which currently includes three separate duties: Remote Gaming Duty, General Betting Duty, and Pool Betting Duty.
The proposal is to merge these into a single tax standard, Remote Betting and Gaming Duty, to streamline taxation and align charges under a unified format, maintaining the ‘Place of Consumption’ principle.
While HMRC has insisted the consultation focuses on the technical aspects of this new system, not rates, the Betting & Gaming Council (BCG) warned against using the process to bring in tax increases.
Grainne Hurst, BGC CEO, said: “Raising taxes further now on regulated betting and gaming through a new single tax would be utterly self-defeating for the Government. Any potential further increase in taxes on our members, so soon after a White Paper which cost the sector over a billion pounds in lost revenue, will not raise more money for the Treasury.”
** IMPORTANT MESSAGE **
6-in-6: Simon Pilkington, ex-MD of Kafe Rocks, and Rob Dowling, CEO of The Conexus Group, are running six ultramarathons in six days - starting with the London Marathon and ending 180 miles later in Bristol - to raise £20,000 for the Oliver’s Wish Foundation.
Created in memory of Rob’s son Oliver, the foundation supports children’s charities, including Sudden Unexplained Death In Childhood UK, The Lullaby Trust, Chestnut Tree House and the Cystic Fibrosis Trust. The iGaming industry has rallied behind the cause, with executives taking on endurance events as part of “Oliver’s Army”, as part of a united effort to raise awareness and funds to support young lives.
How the iGaming industry can get involved: Financial contributions go directly to the charities supported by Oliver’s Wish. You can donate at: https://www.justgiving.com/page/olivers-army-6-ultras
If you’re UK-based, you can join Simon and Rob for a leg (or more) of the run between London and Bristol.
Share the story: Use your platform to help spread the word – on LinkedIn or within your company and organise a fundraising event at your office or sign up for a future challenge.
A Foundation Built on Love and Legacy
Oliver’s Wish was founded by Rob in memory of his son, Oliver. What began as a personal tribute has grown into a powerful platform for good – raising awareness and vital funds for charities that support children and young people.
To follow the journey and get involved, search #OliversArmy6in6 or visit oliverswish.org.uk.
For commercial sponsorship or coverage, please reach out to brooke.petersen@theconexusgroup.com
Crypto market value of $80bn debunked by experts
Push back comes as crypto experts criticise Yield Sec “sensationalism”
Overvalued: The claim that the crypto-gambling market’s GGR was worth more than $80bn in 2024 has been debunked by crypto analysts and consultants. The figure was published last week by the Financial Times, citing figures from the monitoring group Yield Sec that crypto operators such as Stake, Rollbit or Sportsbet.io generated $81.4bn of crypto-based GGR.
However, according to crypto-gambling analysts Tanzanite, the market is worth $10bn-$11bn in GGR, and, using Stake’s GGR-to-deposit ratio as a benchmark, it estimated that GGR across sites like Stake, Roobet, Rollbit or Sportsbet.io amounted to around $8bn.
“Given these figures, YieldSec’s claim of $81.4 billion solely from cryptocurrency gambling leaves virtually no revenue for major traditional operators. Flutter alone accounts for around $14bn, Entain, DraftKings and Bet365 combined account for an additional $16bn. This major discrepancy indicates YieldSec’s estimate is highly improbable,” said Tanzanite.
Experts added to the discussion on LinkedIn, with one accusing Yield Sec of “using sensationalism to sell their platform".
The issue is also complicated by the fact that players often deposit fiat currencies and withdraw their winnings in crypto-currencies. Major 'hybrid' sites such as 1xBet, Dafabet or Pinnacle also promote crypto-gambling, which continues to complicate the valuation of the market.
News shorts
Speaking of crypto, Raphael Block, founder French specialist outlet The Big Whale, reported that new guidelines from the European Data Protection Board could “kill public blockchains”.
According to the EDPB text, which is based on the principles of GDPR, any personal data must be deletable from the blockchain. If that is not possible, the entire blockchain must be deleted. “With such a text, it would just be the end of public blockchains in Europe,” said Block.
Gaming Innovation Group has recruited Andy Kelly as Head of Partnerships and Mitchell Harrison as Business Development Director for Sportsbook. The two executives will drive the next phase of GIG’s SportX sports betting solution.
Stake has announced the official launch of Stake Engine, its “next-generation Remote Gaming Server (RGS)”. The group said “Stake Engine gives developers direct access to a global audience, with the most aggressive commercial model in the industry” and “generated $3.3bn in turnover” over the past 12 months.
Finland’s licensing and supervision fees will range from €4,000 to €434,000 for B2C companies depending on GGR and will be fixed at €1,500 per year for B2B companies. Regulated operations are set to start in early 2027 as Finland prepares its igaming regulation over the next 18 months.
The 2025 Gaming in Spain Conference, which will take place June 26 in Madrid, is THE event where international and domestic stakeholders in Spain's regulated online gambling market meet.
This year's edition will feature Mikel Arana, Director General of the DGOJ, as the event's keynote speaker. In addition to our usual focus on the Spanish market, the 2025 Gaming in Spain Conference will also feature sessions and speakers from the most promising LATAM markets.
Don't miss it! Register now
Calendar
Results: 29 Apr: Betsson, Caesars, 30 Apr: Kambi, MGM Resorts, 7 May: Flutter, 8 May: Super Group, Penn, DraftKings, 8- 9 May: DraftKings
Events: 13-15 May: SBC Summit Americas, Fort Lauderdales, Florida, 10-12 June: SBC Summit Malta, 5 Jun: Gaming in Holland, Amsterdam, 26 Jun: Gaming in Spain, Madrid
Contact
Get in touch with Jake Pollard to find out more about Gaming&Co: jake@gamingandco.info