Caesars Entertainment reported its third-quarter results on Monday, encompassing the three-month period that ended on September 30, 2022. The company saw sustained improvement across the board with GAAP net revenues hitting $2.9 billion compared to $2.7 billion over the same period from a year before. GAAP net income also improved for the company and stood at $52 million, which was better than the $233 million reported back in Q3 2021.

Third-Quarter Results Hold Steady for Q3

Adjusted EBITDA was also much better, reaching $1 billion compared to $880 million. The news was welcomed by Caesars Entertainment CEO Tom Reeg who made a statement, commenting on the latest company results. Reeg said that the latest results reflected the company’s commitment to recovery and its customers, and also established a new quarterly record for consolidated adjusted EBITDA. He added:

Results in the quarter also reflect a new quarterly record for our brick-and-mortar properties led by a new all-time high third-quarter EBITDA performance in our regional segment and continued strength in Las Vegas.

Caesars Entertainment CEO Tom Reeg

Caesars Digital is also posting solid results for the company and a smaller-than-expected EBITDA loss, Reeg said. The company had $13.3 billion in aggregate principal amount of debt outstanding, the firm detailed on its balance sheet. This is true as of September 30, 2022. Total cash and cash equivalents stood at $944 million for the company, excluding $297 million in restricted cash.

Caesars Entertainment CFO Bret Yunker also reported on the company’s results, confirming Reeg’s remarks that it has been a good quarter for the company:

We continued to reduce debt during the quarter using net asset sale proceeds and free cash flow totalling $880 million. In early October, we successfully upsized our pro rata bank facilities to $3 billion, including a new $750 million Term Loan A and a $2.25 billion Revolving Credit Facility that mature in 2028.

Caesars Entertainment CFO Bret Yunker

Flamingo Not to Be Sold, Caesars Boss Confirms

Meanwhile, Reeg detailed some of the company’s other plans and changes in existing ones. For one, Reeg used the third-quarter earnings conference call to quell some rumors, including the one that has been circulating about the company ending up selling a Las Vegas Strip property. This will not be happening, although many industry observers hazarded a guess that Flamingo could be sold for as much as $1 billion by the company, as it seeks to expand in new and emerging markets.

However, Reeg did confirm on the call that Caesars had tried to sell the property for the suggested price tag, but potential buyers were reluctant to bite, as the Flamingo would also need a significant refurbishment.

Online gambling software supplier Playtech announced that Andrew Smith, the company’s chief financial officer, will be stepping down due to personal reasons. Chris McGinnis, who previously served as deputy CFO, will take up the position. Smith will leave the business on 28 November after a successful seven-year tenure.

Smith Delivered Impressive Achievements

Andrew Smith joined Playtech in 2015 as head of investor relations. In 2017, he stepped up as a chief financial officer. His substantial legal and financial knowledge was a great boon to the company as it helped it expand into an industry leader.

Playtech chairman Brian Mattingley expressed gratitude for Smith’s service, particularly during his tenure as CFO.

On behalf of the Board, I would like to thank Andy for the contribution he has made to Playtech over the past seven years… We wish him all the best in his future endeavors.

Brian Mattingley, Playtech chairman

Mattingley lauded Smith’s efforts in guiding Playtech through the turbulent Pandemic period and highlighted some of his most notable achievements, like refinancing Playtech’s external debt and contributing to record-setting H1 2022 revenues.

Smith has not yet commented on his plans for the future, but he is at least leaving the CFO position in capable hands.

By all accounts, deputy CFO Chris McGinnis was the obvious choice to succeed Smith. He joined Playtech in 2017 as head of strategic analysis after more than a decade of relevant experience with high-profile companies. His background and previous positions demonstrate a more strategic and research-orientated mindset compared to Smith’s expertise in corporate finance and regulatory knowledge. However, McGinnis’ growth within Playtech indicates that he is ready for his new position.

Mattingley certainly appears to think so, as he praised the soon-to-be CFO’s performance and deep knowledge of the company and the industry.

I am delighted that Chris will be joining the Board as CFO… He brings a strong set of financial and strategic skills that will be invaluable… to deliver further growth.

Brian Mattingley, Playtech chairman

According to the Playtech chairman, McGinnis’ talents would be instrumental in executing Playtech’s strategy and helping maintain the company’s competitive edge.

The New CFO Has a Lot on His Plate

As CFO, McGinnis’ immediate concern will be to maintain Playtech’s momentum and expansion. The software supplier recorded substantial H1 revenue, rising 73% year-on-year despite the challenging economic and political climate.

2022 was also outstanding regarding strategic partnerships, significantly expanding the company’s global reach. Some most recent examples are the collaboration with PokerMatch, the largest poker room in Eastern Europe, and the team-up with Ada to create an AI-powered texting and messaging solution. Only time will tell if McGinnis will manage to fill his predecessor’s shoes, but all signs indicate that the position is in capable hands.

Low6, an award-winning company that focuses on deploying powerful gamification solutions across sports, is now teaming up with the Sacramento Kings, to produce the “Call The Shot” predictive wagering game. The game is presented by Red Hawk Resort and Casino and is part of a broader push to use the Pick’em game format to introduce sports fans to sports betting experiences.

Sacramento Kings Gets a Pick’em Game in App

The game is already integrated with the Sacramento Kings+ Golden 1 Center app through the use of single sign-on. This marks the latest gamification development for Low6 which has been looking to expand its product positioning and secure partnerships with leading sportsbook operators, franchises, and media groups.

Low6 has global growth ambitions and has so far not been shy of hiding those. Its latest deployment, “Call The Shot” is precisely what Low6 has meant it to be, with the solution providing captivating experiences for sports fans, relying on the in-house technology used by the company. Through the new game integrated with the already existing app, fans get to place predictions on the outcome of player/team totals, shooting percentages, and over/unders.

There is also access to the team’s in-app Loyalty Program, Royalty Pass, and more. Commenting on this new fan engagement opportunity, Sacramento Kings president of business operations John Rinehart said:

Low6 has created the next iteration of Call The Shot, providing fans the opportunity unlock unique prizes and earn rewards including discounts on food and beverage and exclusive merchandise.

Sacramento Kings president of business operations John Rinehart

Low6 CEO and co-founder Jamie Mitchell also welcomed the opportunity and said that Low6 is excited to be a part of Sacramento King’s solution. “We look forward to a great season from them” he concluded. Meanwhile, Low6 NA chief strategy officer Josh Turk added that the company was very pleased to have been chosen to bring innovative gamification to the Sacramento Kings, teasing that this is just the beginning, and the companies will work again beyond the 2022/23 season.

A new business program that would allow foreign gambling operators to acquire temporary licenses was greenlit in Nigeria. The program will allow offshore companies to acquire five-year permits to offer their products in the country.

Nigeria Launches New Permit Program

The National Lottery Regulatory Commission of Nigeria, which is leading the new program, will carefully check applicants’ anti-gambling harm and anti-money laundering measures to determine whether they are satisfactory. Once approved for launch, operators will need to pay $100,000 to acquire the five-year permit. In addition, they will have to pay an additional $50,000 for each year they operate in Nigeria. Lastly, companies will have to file a non-residence business request to the Federal Inland Revenue Service of Nigeria (FIRS).

Permit holders will be able to legally offer gambling and sports betting in the country. This covers all kinds of casino games, slots and bingo. The best thing is that approved operators will not be required to create a local arm, thus allowing them to concentrate their resources on upping the quality of their online offerings.

The Lottery Commission will be responsible for regulating the permit program and will have the power to revoke licenses if it identifies any major compliance breaches.  

E-Technologies Believes Nigeria’s Approach Is a Game-Changer

Nigerian authorities emphasized that permit holders will have to diligently obey the new tax collection system. The country currently uses a system developed by E-Technologies Global, a leading British provider of tax-related solutions. Thanks to the latter’s in-house Sentinel System, the FIRS can directly collect gaming duties. Currently, Nigeria takes a 4.5% share of all deposits players make with legal operators.  However, as non-domicile businesses, license holders will be exempt from other taxes.

The aforementioned Sentinel system will see E-Technologies support Nigeria’s Lottery Commission and the FIRS by helping them tax foreign permit holders. The Company will also help the latter bodies determine whether a company has sufficient compliance measures to be granted a permit.

Mohammad Nami, FIRS’ executive chair, said that the challenging times require governments to increase tax revenue. That’s why FIRS chose to trust E-Technologies’ Sentinel System, which has so far impressed his team. According to him, it allowed the body to collect tax revenues at the source but also doubled as a monitoring tool.

Meanwhile, David Kicks, E-Technologies’ CEO, said that his team is honored to have the Nigerian government’s trust. He lauded the agreement as a “landmark deal” that will usher in a new format of regulation. Kicks believes that more jurisdictions may adopt a similar approach to Nigeria’s when it comes to regulating offshore gambling as solutions such as E-Technologies will allow for efficient taxation.  

The operator of the Okada Manila Casino Resort, Tiger Resort, Leisure and Entertainment Inc (TRLEI), is delaying the official announcement of its financial results for the period from July to September 2022 due to the violent takeover of the property by the group led by Japanese billionaire and founder of the resort Kazuo Okada in May.

Okada Takeover Interferes with the Announcement of Third Quarter Results

The board of directors of TRLEI has said that it is still in the process of verifying the numbers for the third quarter of 2022 and it is not sure when they will be ready for an official release.

For the most part throughout the period from July to September, the Okada Manila Casino Resort was under the control of Kazuo Okada and his group and it is still not completely clear what the actual financial numbers are.

Kazuo Okada took over the Okada Manila Casino Resort back in May backed by a Supreme Court status quo ante order (SQAO) and reinstated himself and the group around him as the board of directors. TRLEI legal owner Tiger Resort Asia Limited (TRAL) disputed this in court and in the end the Philippine Amusement and Gaming Corporation (PAGCOR) issued an order to Okada and his group to give over the control of the resort back to its legitimate board.

The reinstated TRLEI board directed harsh criticism towards Kazuo Okada and his group as they withheld important details on company finances from the legitimate executives of the casino’s operator.

Currently, this means that the legitimate TRLEI board has to go over any financial documents that they have not been notified of in order to provide comprehensive and accurate financial results for the company during the third quarter of 2022.

However, so far the TRLEI board has released some verified numbers for the period from April to June 2022, which were previously published by the Okada-led board.

Q22022 Results Show Gradual Recovery from the Pandemic

According to the numbers released by Kazuo Okada and later verified by the TRLEI board, the Okada Manila Casino Resort’s gross gaming revenue (GGR) amounted to PHP 8.30 billion ($142.6 million), which was 37.7% higher than the previous quarter. The Q2 GGR was also 233% higher than the GGR reported in Q22021.

Adjusted EBITDA in Q22022 was PHP 2.18 billion ($37.5 million), which marked an increase of 89% in comparison to the previous quarter. This was a considerable improvement of the EBITDA loss of PHP 204 million ($3.5 million) in Q22021.

There was an improvement in year-on-year results for H12022. The first half of 2022 saw GGR of PHP 14.3 billion ($245.7 million), which was 85% higher than the GGR posted in the first half of 2021.

Adjusted EBITDA of PHP 3.33 billion ($57.2 million) was 333% higher in H12022 when compared to H12021.

Image Source: Shutterstock.com

Image Source: Shutterstock.com (Photo by Elena_Titova)

The Gambling Commission in the UK released the quarterly report keeping track of the National Lottery’s contribution to good causes report showing that funds in the second quarter of FY 23 have increased.

Overview and Comparison

Funds that were raised by the National Lottery for good causes need to be allocated to the National Lottery Distribution Fund and it is part of the Gambling Commission’s responsibilities to ensure this is done accurately and on time.

The report revealed that, between July and September 2022, the National Lottery raised for good causes £501.8 million ($577 million) to register an increase of £78.9 million ($90.7 million), or 18.7%, as compared to the £422.9 million ($486.3 million) the national lottery operator contributed to good causes in the first quarter of FY 23.

The Q2 FY23 result is just 1.3% down to £508.5 million ($584.8 million) the National Lottery accounted for good causes in the third quarter of FY22 and 2.1% higher than the £491.3 million ($565 million) in Q4 FY22. Compared to Q2 FY22, the reported quarter posted an increase of just under 20%, while the last five quarters raised £2.3 billion ($2.65 billion) for good causes.

The National Lottery accounted for an increase in Q2 FY23 total sales of £266.7 million ($306.7 million), or 14.1% when compared to the previous quarter, mainly driven by the 31.1% increase, £140.7 million ($161.8 million), in the sales of EuroMillions, where growth was attributed to the volume of rollovers associated with high jackpots.

Interactive instant win games (IIWGs) and scratch cards sales generated increases of 15.6% and 7.4%, respectively, around £40 million ($46 million) more each, as compared to the previous quarter, while total unclaimed prizes added around £13.6 million ($15.6 million) more, primarily due to scratch cards game closures.

Central to National Lottery’s Model

Since its launch in November 1994, the National Lottery has contributed over £46 billion ($52.9 billion) of funds that were directed to support sports, including Olympic athletes, arts and heritage initiatives, health, education and environmental projects.

Funds raised for good causes are central to the operational model of the National Lottery and probably one of the reasons why current operator Camelot lost the bid for the fourth National Lottery license to its competitor Allwyn, which promised to double these funds.

From February 2024, Camelot, which has been the National Lottery operator since its launch in 1994, will be replaced by Allwyn after Camelot’s determination to seek legal action waned. At one point Camelot even suggested that the loss of the National Lottery license would lead to the bankruptcy of its UK subsidiary.

Just recently, Allwyn confirmed media reports that it was in talks to acquire Camelot’s UK business as the new National Lottery operator is looking to consolidate its position in the UK.

The UK national online self-exclusion scheme, GAMSTOP, announced a new initiative that seeks to help students affected by gambling harm.

The Gambling Support University Tour Will Help Students in the UK

GAMSTOP unveiled Tuesday that it joined forces with RecoverMe, a mobile health application that helps people affected by gambling addiction as well as the award-winning education charity, YGAM. The trio created an initiative called “The Gambling Support University Tour.” The innovative initiative seeks to visit dozens of British universities where representatives of the three organizations will organize meetings and distribute leaflets, raising awareness of gambling harm and support services available.

Besides speaking to students, the trio will also collaborate with universities’ staff and provide much-needed training. The training organized by YGAM will be free for university staff, as well as student union officers and will seek to build strong knowledge about gambling harm and identifying problem-gambling behaviors. At the same time, YGAM will be promoting its website Student Hub, which offers invaluable information and advice for students.

Leading colleges and institutions such as the ones in Northumbria, Central Lancashire, Worcester, Sheffield and Bournemouth among others have agreed to participate in the tour. In addition, the Scottish Gambling Education network will also visit 18 universities around Scotland as a part of a similar program.

The Initiative Will Raise Awareness, Provide Support

Fiona Palmer, GAMSTOP’s CEO, acknowledged that The Gambling Support University tour is an important event that delivers unique information for different organizations. She explained that gambling harm isn’t a popular topic on university campuses. However, Palmer stressed that this initiative brings unique support and information for problem gambling, while at the same time promoting self-exclusion for students, which is a significantly important tool.

“Gambling-related harm on our campuses is a subject that is rarely addressed, but for any students experiencing problems with their gambling, self-exclusion is one of the most important tools available, giving them valuable breathing space whilst they seek additional help.“

Fiona Palmer, CEO of GAMSTOP

GAMSTOP acknowledged the results of a study among 2,000 students across the UK conducted by Censuswide, commissioned by YGAM and GAMSTOP. The study found that 80% of the respondents in the study gambled, while 41% admitted that gambling impacted their university experience negatively. Those that were affected negatively admitted to missing deadlines, social activities as well as lectures.

“The popularity of the tour so far shows us that gambling harms is clearly an issue that universities are more conscious of.“

Daniel Bliss, director of external affairs at YGAM

YGAM’s director of external affairs, Daniel Bliss, added that the tour enjoyed strong popularity which helps raise awareness of gambling harms. Besides supporting students affected by gambling harm, he explained that universities also assist by supporting students affected by alcohol or drugs. In conclusion, Bliss added: “We believe gambling should be given the same level of focus and this tour is helping to increase awareness and understanding.”

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