2%

IGT declared revenue for Q3 of $587m, down 2% year-over-year (Q3 2023: $601m) and 3% in constant currency (cc). For the year-to-date, ending 30 September, the company reported a revenue of $1.86bn (2023: $1.85bn).

Q3’s revenue was attributed to “sustained momentum in Italy and improved US instant ticket and draw game wagers”.

Gross profit was also down 5% YoY and 7% in cc during the quarter to $263m (2023: $278m), while operating income fell by 33% YoY to $110m (2023: $163m). YTD, gross profit had declined 2% YoY to $882m (2023: $896m), while operating income was down 9% YoY to $507m (2023: $555m).

Operating income was “driven by a $38m restructuring charge associated with OPtiMa 3.0, a program focused on optimising general & administrative and operating activities following transformational actions over the last several years”.

Q3 net income stood at $43m, down from Q3 2023’s $123m. Broken down, income from discontinued operations stood at $88m (2023: $46m), but income from continuing operations fell to a loss of $46m (2023: $77m income).

Adjusted EBITDA for the quarter was down 6% YoY at $264m (2023: $279m) with a margin of 44.9% (2023: 46.4%). YTD, adjusted EBITDA was down 2% YoY to $880m (2023: $898m) with a margin of 47.3% (2023: 48.6%). IGT noted that the figures highlight the “attractive profit profile of pure play lottery business”.

Reflecting on the Q3 results, CEO Vince Sadusky noted: “Our third-quarter and year-to-date performance underscores the strength and resilience of our business model marked by our scale, attractive margin structure and strong cash generation.

“Over the first nine months, we generated $1.9bn in revenue, led by steady Italy growth and improved third quarter trends in the US. We are excited to build upon a solid foundation as we transform into a leaner, more focused global lottery pure play and capitalise on attractive industry dynamics.”

$3.25bn

Flutter Entertainment declared a 27% year-over-year increase in revenue to $3.25bn (Q3 2023: $2.56bn), while average monthly players (AMPs) grew by 16% to 12.9 million (2023: 11.1 million). Excluding US operations, revenue rose by 15% YoY to $2bn (2023: $1.7bn). 

For the quarter, net loss improved to $114m, up 56% YoY (2023: $262m loss), which the company says was “driven by strong revenue growth”. The net loss “included non-cash impacts of $128m acquired intangibles amortisation charge and $121m fair value loss on Fox Option liability (Q3 2023 $18m gain)”.

Adjusted EBITDA increased by 74% YoY to $450m (2023: $258m) with a margin of 13.9% (2023: 10.1%). Group ex-US adjusted EBITDA rose by 24% to $392m (2023: $313m).

Net cash from operating activities dropped by 48% to $290m (2023: $554m) “primarily due to the impact of derivative settlements in the current and prior year period”. Free cash flow declined by 74% to $112m (2023: $434m).

Jackson commented: “Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and Adjusted EBITDA guidance for 2024.”

The group’s 2024 guidance was also raised by 1% across revenue and adjusted EBITDA, reflecting a strong Q3 group ex-US performance.

However, Flutter also said that “excellent US momentum in Q3 has subsequently been more than offset by unfavourable sports results in Q4 to date”.

15

The New Zealand Government has agreed on further details regarding the regulation of online casinos in the country, with 15 operators set to be offered the chance to gain a licence. 

Back in July, Internal Affairs Minister Brooke van Velden announced New Zealand’s plans to have a new online casino regulatory system “in place from early 2026”. At the time, the Government stated that the online casino regulation was “designed to minimise harm, support tax collection and provide consumer protections to New Zealanders”.

Online gambling will be prohibited for those aged 18 or over, with operators only able to offer online casino games, not sports betting or lottery. The Department of Internal Affairs will be the regulator.

In addition, licensed gambling operators will be allowed to advertise, but with strict limits in place. Previously, advertising by licensed gambling operators was prohibited. Sponsorship by online casinos will remain illegal.

Providing an update earlier this week, van Velden noted that further decisions have been taken by the New Zealand Government regarding online casino regulation, stating that a new Online Gambling Bill will be drafted.

In July, the Government said that only a limited number would be allocated via auction, each lasting three years and being conditional on meeting regulatory requirements. The total number of licences to be issued has now been revealed to be up to 15.

In addition, the regulatory system will prohibit advertising that appeals to minors, require operators to have age verification systems and the regulator will issue fines of up to NZ$5m (€2.8m) for operators who don’t comply with regulations.

€7m

Gaming Innovation Group has reported more than €7m in revenue for the third quarter of 2024, but an adjusted EBITDA loss of over €1m.

Both of these figures are down compared to the same period last year, with GiG also reporting an operating loss (EBIT) of just under €10m for the quarter.

Despite the results, CEO Richard Carter has voiced optimism for the igaming technology company’s future, expressing Q3 as a “momentous quarter” and that the firm is now “in a better position to expand” its presence in global igaming and sports betting markets.

Publishing its first set of financials since its business split away from Gentoo Media last month, GiG declared revenue of €7.4m, down 21% year-over-year (Q3 2023: €9.3m).

Providing further context on the comparison, the company stated that “2023 results contain €7.8m one-off revenue related to GiG Enterprise Solution sale (2024: €1.3m)”.

Excluding client exits and enterprise revenue, Q3’s underlying revenue stood at €7.3m, up 26% YoY (2023: €5.8m).

During the quarter, GiG also achieved listing on the Nasdaq First North Premier Growth Market in Stockholm, Sweden, under the ticker GIG SDB.

The company noted that the new listing will “enable management to reinvigorate GiG’s sales and marketing activities to help expand the group’s global client reach”.

15

Meanwhile, Gentoo Media published a 15th consecutive quarter of revenue growth for Q3 2024 following its recent split from GiG. 

Across the third quarter, Gentoo’s revenue grew to €30.4m to represent a 35% growth year-over-year (12% organic) on previous year’s comparatives of €22.5m in Q3 2023. 

Jonas Warrer, Gentoo Media CEO, commented: “I am pleased to present our third quarterly report for 2024, marking yet another record-setting quarter for Gentoo Media, with 15 consecutive quarters of all-time high revenue. 

“Our focused strategy on sustainable, long-term growth – emphasising diversification and increased revenue share earnings – continues to strengthen our business. Despite market volatility, our disciplined approach has proven resilient, driving steady success and positioning us with a competitive edge in an increasingly dynamic marketplace. 

“We remain confident that our strategic path will support our continued growth and stability in the coming quarters.”

Adjusted EBITDA came in at €14.6m (Q3 2023: €10.4m) reflecting a 48% margin, while group accounts booked ‘special items’ related to the company’s September split from GiG, capped at €600,000. 

With special items excluded, EBITDA witnessed an uptick of 36% YoY by growing to €14m (46% margin). Media cash flow operations were valued at €19.9m, while IFRS5 standard platform & sportsbook cash flow was €12.2m. 

In total, 58% of revenues were generated from recurring revenue share agreements, an increase of 24% YoY.

Despite headwinds in Norway, Europe-centric revenue increased 51% YoY, while revenue share from the Americas grew by 52%. This growth in the Americas was headlined by more than double digit growth in North America. 

Europe and the Americas stood as principal markets, contributing 59% and 21% of quarterly revenue respectively.

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Across the third quarter, Gentoo’s revenue grew to €30.4m to represent a 35% growth year-over-year (12% organic) on previous year’s comparatives of €22.5m in Q3 2023. 

Jonas Warrer, Gentoo Media CEO, commented: “I am pleased to present our third quarterly report for 2024, marking yet another record-setting quarter for Gentoo Media, with 15 consecutive quarters of all-time high revenue. 

“Our focused strategy on sustainable, long-term growth – emphasising diversification and increased revenue share earnings – continues to strengthen our business. Despite market volatility, our disciplined approach has proven resilient, driving steady success and positioning us with a competitive edge in an increasingly dynamic marketplace. 

“We remain confident that our strategic path will support our continued growth and stability in the coming quarters.”

Adjusted EBITDA came in at €14.6m (Q3 2023: €10.4m) reflecting a 48% margin, while group accounts booked ‘special items’ related to the company’s September split from GiG, capped at €600,000. 

With special items excluded, EBITDA witnessed an uptick of 36% YoY by growing to €14m (46% margin). Media cash flow operations were valued at €19.9m, while IFRS5 standard platform & sportsbook cash flow was €12.2m. 

In total, 58% of revenues were generated from recurring revenue share agreements, an increase of 24% YoY.

Despite headwinds in Norway, Europe-centric revenue increased 51% YoY, while revenue share from the Americas grew by 52%. This growth in the Americas was headlined by more than double digit growth in North America. 

Europe and the Americas stood as principal markets, contributing 59% and 21% of quarterly revenue respectively. 

Gentoo’s portfolio saw non-top five websites contributing 65% of the total revenue gained across Q3, an increase of 46% YoY. Meanwhile, top five websites revenue (35% of total) also increased 14% YoY as Gentoo’s explained that “a significant increase was seen in partners generating more than €10k per quarter, up 94% YoY”.

This influx of revenue comes as a result of an update from Google launched earlier this year, which offset the search rankings of Casinotopsonline.com and other Gentoo websites.

Leadership at the company expects that momentum will continue into Q4, sticking with its 2024 guidance expecting projected revenues of €125-135m and an EBITDA margin of 45-50%.

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The igaming technology company said that on 23 September, a special shareholders meeting will be held to put forward a proposal to complete the restructuring, which has been in the works since a strategic review was initiated in February 2023. 

In turn, this split of GiG will create two separate entities, Gentoo Media (formerly known as GiG Media) and GiG Platform, the latter of which will be spun off to operate as an independent public company.

Subject to the proposal being approved, GiG has stated that the spinoff “will be completed in the form of a distribution in kind in Euronext Securities Oslo of one Norwegian Depositary Receipt (NDR) per share held in GiG” with the ISIN number for the NDRs being 0013326033. 

The company added that each NDR will represent the beneficial interest in one share in the Maltese company which will operate GiG Platform, GiG Software PLC.

Outlining its restructuring timeline, GiG said that the last day of trading in the GiG share inclusive of the right to receive NDRs will be 23 September 2024, with the date of resolution taking place on the same day.

The ex-date and record date will then be the following two days on the 24 September and 25 September respectively, followed by the distribution date, which will be on or about 30 September.

In addition, GiG provided information for investors holding shares in Euroclear Sweden trading on NASDAQ Stockholm. The company stated that they will receive “one Swedish Depository Receipt (SDR) per share held in GiG” and that the ISIN number for the SDRs is SE 0022760229.

The company claimed that according to third-party analysis, “GiG Platform may be valued at 14% of the total value of GiG before the Spinoff” on average.

However, GiG noted that the analysis was “prepared for general distribution and not intended to be advisory and that they may not be indicative of the market capitalisation of GiG Platform once trading in the GiG Platform depository receipts commences at the NASDAQ First North Premier Growth Market in Stockholm”.

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39%

Gaming Innovation Group’s rebranded stand-alone media group Gentoo Media generated €30m of revenue in Q2 2024, up 39% from 2023 comparatives of €22m.

Success of the firm and the growth of the group was significantly enriched by their M&A strategy as completed AskGamblers and KaFe Rocks deals provided an uplift for the group. 

GiG Chairman Mikael Riese Harstad commented on the group’s performance: “It is with this confidence that I am happy to announce the finalisation of our strategic split into two separate listed entities: Gentoo Media (formerly GiG Media) and GiG Platform. This split is now set to be completed by the end of September 2024.”

“I am fully confident that both companies will flourish as independent entities, each continuing to lead and innovate within their respective areas of focus.”

Overall GiG’s divested Platform & Sportsbook business registered a 21% decline in revenues to €7.3m (Q2 2023: €9m).

Revenue declines were anticipated as the divested Platform & Sportsbook business has changed its auditing structure under IFRS rules.

$330m

Georgian courts have ruled in favour of Aviator in the firm’s copyright and trademark infringement claim against Spribe and Flutter-owned Adjarabet.

The group was awarded $330m in damages after the ruling found copyright and trademark infringement and invalidated trademark registrations based on bad faith. 

One of the key elements of the case was Aviator seeking to halt Adjarabet from utilising copyrighted material by offering Spribe’s Aviator crash game.  

The Aviator brand registered by Spribe has gone on to become one of Adjarabet’s most successful crash games, the firm originally registered its own “Aviator” trademarks for computer games and gambling services, which the claimant argued were infringing on its original trademark.

Flutter has since confirmed it will appeal the decision, issuing the following the statement: “The level of damages sought is egregious in nature and bears no resemblance to the actual economics of the property under debate.”

€3.5m

Holland Casino revealed it suffered a loss of €3.5m in the first half of 2024. 

It’s a dramatic change from last year, when the company made a profit of €17.2 million in the same period. The company also blamed the 1% increase in gambling tax since the start of the year, which according to the group cost them a total of €3.7m.

CFO Ruud Bergervoet, commented: “Holland Casino’s finances are under severe pressure due to increased costs. This mainly concerns high inflation, the increase in the collective labour agreement and investments in our gaming offer and staffing. 

“As a company, we are also still working on paying off the corona debts. This makes our financial position vulnerable. It is crucial for our financial health that no further significant cost increases occur now. Only then can we prevent ourselves from ending up in a loss-making situation.”

High inflation was also cited by the group as a reason for the increasingly challenging times, as it revealed it has already taken into account a sharply reduced profitability. 

6

An update on affordability checks has been provided by the UK Gambling Commission as the regulator prepares to launch a six-month pilot for financial risk assessments. 

The Commission announced on 1 May 2024 that it would look at launching a pilot of its frictionless ‘light touch’ financial risk assessments from 30 August, this upcoming Friday. 

A four-stage plan was initiated by the UKGC back in May, hoping to adopt regulatory changes that will impact “remote game designs, terms and conditions on direct marketing, light-touch financial vulnerability checks, and tightening processes to support age verification checks in premises.”

Once launched on Friday, the pilot will run for six months to apply light-touch affordability checks with an initial threshold of customer deposits of £500 a month.

Subsequently, the pilot aims to reduce the deposit threshold to £150 a month by 28 February 2025.

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Under the terms of the deal, GiG’s Platform product will be made available to Inkabet, providing the operator with igaming solutions to present an online casino offering to players in Peru. 

The deal follows Inkabet’s move to secure certification for the Peruvian market, strengthening Betsson’s outreach in the LatAm market. The online casino brand will launch its operations later this month. 

James Coxon, Chief Operating Officer at GiG, commented: “This partnership marks another milestone in our journey together with Betsson, spanning across multiple regulated markets. At GiG, we pride ourselves on fostering successful long-term partnerships, and Betsson’s trust in our capabilities is a testament to that. 

“With our extensive experience in Latin America and our cutting-edge technology, we’re confident that on GiG’s technology, Inkabet will drive exponential growth in Peru’s burgeoning igaming market.”

Betsson and GiG’s latest tie-up builds on a long-standing relationship that has seen the two companies collaborate for expansion in eight markets across Europe and Latin America. 

Lauding its “extensive experience” in the Latin American market, GiG gained certification to provide its proprietary igaming solutions to the nation’s operations towards the end of last year. 

Ronni Hartvig, Chief Commercial Officer at Betsson Group, added: “We are excited to strengthen our partnership with GiG through the launch of Inkabet on their platform. This collaboration aligns perfectly with our strategic goals and commitment to providing top-tier gaming experiences in regulated markets. 

“With GiG’s proven technology and deep expertise in Latin America, we are confident that Inkabet will achieve significant growth and success in Peru’s newly regulated igaming landscape. We look forward to continuing our joint efforts in delivering exceptional value to our customers across the region.”

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In uniting with one of the most established and long standing names in UK Pools betting, the firm will tap into its sportsbook, SportX and igaming platform CoreX.

Andrew Cochrane, Chief Business Officer at GiG, commented: “I am delighted that The Football Pools, a brand with such heritage in the UK market, have chosen GiG to power their ambitious online growth plans. 

“We have gained a significant headwind with our X-Suite in regulated markets around the world since launch earlier this year, providing a springboard for us to leverage our vast wealth of experience in the UK market, a market we know extremely well, to help power revenue growth. I’m extremely optimistic about the continued success of our strategy to increase our B2B market share in key regulated European markets.” 

Furthermore, the move also enables GiG to expand its X-Suite solutions further into the UK market. The Pools is the new umbrella brand encompassing the original ‘Football Pools’ brand which has operated in the UK for over 100 years, and has proved popular for generations of fans.

James Arnold, CEO at The Football Pools, added on the importance of the deal: “I am delighted to be able to announce this transformational partnership with GiG, at such a pivotal moment in the history of both organisations. 

“I firmly believe this will enable us to realise the potential of ‘The Football Pools’ brand heritage, and to aggressively grow The Pools as we embrace the true digital transformation of this iconic British brand. Myself and my team have enormous faith in the ability and expertise of the GiG team, and very much look forward to a successful and mutually beneficial partnership for the years to come.”

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After brokerage and legal costs, the casino operator’s shareholding of around 10 per cent in the online gaming provider and media services operator is expected to generate net proceeds of approximately NZ$55m (€31m).

SkyCity noted that it intends to use the sale’s proceeds to “pay down debt as part of its ongoing prudent approach to capital management”.

Acquiring the shareholding in April 2022 for €25m (approximately NZ$40m at the time), the casino operator explained that it has divested in GiG because the shareholding is “non-core to its ongoing operations and is now not considered strategically necessary”.

However, SkyCity added that it continues to have a “valuable relationship” with GiG through its involvement with SkyCity Online Casino.

SkyCity’s divestment comes as GiG officially launches the split of the company into two separate entities, GiG Media and Platform & Sportsbook, with the former being rebranded as Gentoo Media.

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Richards brings financial experience across igaming, cybersecurity and accounting to GiG, having held executive roles at Kambi, Shell and KPMG. He joins the company from Corero Network Security, who are AIM-listed cybersecurity specialists, where he was also CFO.

As CFO, Richards will be responsible for Platform & Sportsbook’s financial department and “supporting the wider strategic development of the business including M&A, investor relations and market development” when the business is listed at Nasdaq Stockholm following its split from GiG Media.

Commenting on his appointment, Richards said: “I am delighted to be joining GiG at such a pivotal moment in the company’s growth story. The strength of the product and market reach, coupled with a best-in-class management team will enable the company to rapidly expand and gain market share.

“Working alongside such an experienced executive team will allow me to further support the continued evolution of GiG’s Platform, cementing its position as the market leader for operators globally.”

GiG added that the appointment will help accelerate Platform & Sportsbook’s growth plans as it continues to invest in its product and technological capabilities for the global market.

“Phil’s appointment is another significant step towards helping us reach the high bar we have set for the business,” added Richard Carter, CEO of Platform & Sportsbook at GiG.

“We are completing a process of bringing together the strongest leadership in sports betting and igaming, and I am confident that his arrival will help further fuel our strategic plans, establishing us as a leader across the igaming industry.”

Last month, GiG claimed to be operationally ready for the strategic Media and Platform & Sportsbook split, which is expected to be completed by Q3, pending approvals.

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Through the structured asset purchase worth €3m, Casinomeister will continue to operate under its respective brand and voice, join the likes of AskGamblers and KaFe Rocks in the GiG Media portfolio and further diversify the company’s business.

GiG stated that the acquisition, which is expected to close later this month, furthers GiG Media’s “commitment to enhancing transparency and improving player services” across online gambling since Casinomeister has been “promoting transparency and fairness in gaming over the last 25 years”.

“Casinomeister’s renowned dedication to fair play and community support perfectly aligns with our recent acquisition of Askgamblers.com,” commented Jonas Warrer, CEO of GiG.

“Together, these platforms will enhance our market reach and optimise the complaint resolution services we provide to the community, reinforcing our position at the forefront of player advocacy.”

GiG added that it expects “significant growth” for its business through synergies between GiG Media and Casinomeister, similar to developments seen with AskGamblers following its acquisition. The acquisition is expected to have “an immediate positive financial impact” and increase in the future once fully implemented into GiG Media.

“I have dedicated twenty-six years to building this business, and now it’s time to pass the reins to a new, dynamic team who can lead it into the future,” added Bryan Bailey, Founder of Casinomeister.

“This business has been my passion, starting as a hobby website in 1998 and growing into what it is today. I am entrusting this to the most capable team in the industry to continue its mission of advocating for fair play.

“I have a long history with GiG Media, and I am confident that they will maintain the values and principles that Casinomeister stands for, ensuring a smooth transition and a bright future for the online gaming community.”

Within its Q1 financial results last month, GiG stated that it is operationally ready for the strategic split of its Media and Platform & Sportsbook operations, which is expected to be completed by Q3, pending approvals.

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Upon launching the tool, GiG has also announced a binding agreement with sweepstake casino software provider Primero Games to initiate the rollout of its new igaming tech solution. 

The US-focused tool offers AI-assisted content management technology as well as dual-wallet store management for offers and prize redemptions.

Andrew Cochrane, Chief Business Officer at GiG Platform & Sportsbook, stated: “GiG is synonymous with innovation and our SweepX solution is the result of our tireless pursuit of excellence for product innovation across the online sweepstake market.

“As an extremely experienced turnkey solutions provider, the strength inherent in our technology and services has allowed us to develop what we consider to be the leading platform, data and AI driven solutions available within social gaming, and will help power the growth of the market across the US within the next few years.”

Through the partnership with Primero, GiG’s tech offering will be available to online sweepstakes casinos for the first time, tapping into the rising usage of social and free-to-play casino gaming. 

Primero operates over 50,000 sweepstakes machines across the US but this deal will see the company branch out into the online sweepstakes casino gaming sector. 

Barry Rutherford, CEO at Primero, added: “GiG’s world class platform will allow us to bring more content and an experience for our players that is second to none. Combining our unique player acquisition strategy and GiG’s innovative technology, we are positioned perfectly for the US market and for igaming markets across the globe.”

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