Entain Records Huge Losses
Entain has recorded a pre-tax loss of £842.6m in 2023 after paying £585m to resolve a probe into alleged bribery at a former Turkish subsidiary.
Entain warned that earnings over the year ahead will be affected by around £40m due to regulatory changes in the UK and the Netherlands
UK OPERATOR NEWS
Lithuania – Government to tighten measures Legislative amendments have been drafted by the Lithuanian Finance Ministry aimed at strengthening gambling regulations in the country, chief amongst the amendments is a requirements for operators to monitor problem gambling within their customer base.
Vilija Petronienė, Senior Advisor at the Ministry’s Financial Markets Policy Department, explained that the changes would require gambling operators to embed responsible gambling measures within their practices. The proposal also calls for expanding the powers of gambling market supervision. Once approved by the government, the amendments will be submitted to the parliament during the spring session.
In February, Lithuanian MPs registered amendments to the Gambling Law proposing to further tighten gambling advertising in the country as of 2025. Around 50 MPs, mostly from the ruling majority, signed the amendments proposing to prohibit the dissemination of information of the gambling companies sponsoring any public events, activities, natural or legal persons. If adopted, the amendments would eliminate the advertising of betting, wagers, and casinos on television, in newspapers, magazines, or news websites, and on street billboards. Neither the names nor the logos of gambling operators could appear on the jerseys of athletes and in arenas during the sporting events.
South Africa - Record profits for Sun City South African casino and hotel group Sun International generated a 5.5 per cent year-on-year increase in revenue to hit R12.10bn (€590.4m) in 2023, fuelled by a record performance by its SunBet sportsbook brand and its flagship casino Sun City.
The gaming market in South Africa grew for a third successive year to R55.8bn gross Tgaming revenue. Gaming income, which makes up 76.8 per cent of total group income, showed continued sustained growth with income up 3.3 per cent. Casino income proved resilient and decreased by only one per cent. Sun Slots’ operations were impacted by load shedding with income slightly behind the prior year.
SunBet generated record income during the 2023 financial year, up 116.2 per cent and is ahead of its aggressive growth targets set for this business. Resorts and hotels income achieved exceptional growth, increasing by 17.4 per cent, with Sun City achieving record profitability and net positive cash flow contribution to the group.
SunBet has continued its strong growth trajectory and is exceeding its five-year targets. Overall income was up 116.2 per cent on the prior year, to R733m delivering a record adjusted EBITDA of R221m..
P12 WIRE / PULSE / INSIGHT / REPORTS
Entain has recorded a pre-tax loss of £842.6m in 2023 - significantly down from profits of £102.9m in 2022 - after paying £585m to resolve a probe into alleged bribery at a former Turkish subsidiary, as well as impairment charges related to Australia operations. Shares in Entain took a hit following the announcement - down six per cent at the time of writing. Tis follows the recent disruption of Jette Nygaard- Andersen's sudden departure after the legal settlement back in December.
Looking forward, Entain warned that earnings over the year ahead will be affected by around £40m due to regulatory changes in the UK and the Netherlands, and said it will provide a new profit forecast for the year in August. Entain added that it is pressing ahead with plans to simplify the business and make annual savings of £70m by 2025 following the findings of its recently formed 'Capital Allocation Committee'.
“2023 was a period of necessary, but ultimately positive, transition for Entain. We have significantly strengthened the quality of our revenue base, enhanced our Board, and delivered a resolution to a critical, historic, regulatory issue," commented Barry Gibson,
Chairman of Entain.
"We are making positive progress in our search for a new permanent CEO, and in the meantime Stella is driving the business as it continues to take appropriate actions to deliver changes to drive a better long term performance. We are also making good progress in adding to our Board strength - Ricky Sandler and Amanda Brown joined the Board in recent months and we expect to announce a further appointment shortly.
"As our transformation continues the newly formed capital allocation committee has commenced a review of Entain’s markets, brands and verticals. Te objectives of the review are to help focus the organisation, improve competitive positions and maximise shareholder value.”
In line with the Group's announcement on 2 November, the recently formed Capital Allocation Committee has commenced a review of Entain’s markets, brands and verticals. Te objectives of the review are to 'help focus the organisation, improve competitive positions in core markets and maximise shareholder value.'
Belgium Regulator aims to raise minimum age in Belgium
Te Belgian gambling regulator, Kansspelcommissie, has confirmed that it will go ahead with the implementation of a proposed increase in the minimum age for gambling in the country. From September 1, the legal gambling age in Belgium will rise from 18 to 21.
Belgium has already applied an over 21 age requirement for land- based casinos and arcades, but the restriction will now be expanded to all forms of gambling. Currently, Greece is the only EU country with a minimum age of 21 for both online and land-based gambling.
Te move forms part of a series of amendments to Belgium’s 1999 Gambling Act, which were approved by the Chamber of Representatives in January after being proposed by Green Party minister Stefaan Van Hecke. Other changes include a ban on slots at bars and recreational clubs and new marketing restrictions.
Switzerland
Sportradar Group generated revenue for 2023 of €877.6m, up 20 per cent compared with the prior year, driven by 20 per cent growth from rest of world betting and 30 per cent growth from the US.
Total profit from continuing operations for the full year 2023 was €34.6m compared with €10.5m for the prior year. Adjusted EBITDA for the full year of 2023 increased 33 per cent to €166.8m
Tom De Clercq, Chair of BAGO, emphasised the need for targeted advertising limitations rather than a blanket ban. BAGO advocates for limiting advertising, particularly through traditional media, but warns against the potential negative consequences of a total ban. Tey believe that a comprehensive approach that combines responsible advertising practices and effective regulation is key to maintaining a healthy and well-regulated gambling industry.
Carsten Koerl, CEO, said: “2023 was another dynamic and successful year for the Company delivering our third consecutive year of more than 20 per cent revenue growth, improved profitability, and margin expansion. We are pleased with our growth momentum, fuelled by our best-in-class content portfolio, innovative product roadmap and technology capabilities."
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