GVC Holdings

Tessa Curtis has been appointed to the newly created role of head of media relations at GVC Holdings, ahead of officially joining the firm on September 1.

In the role, Curtis will be responsible for all corporate communications for the group across the UK and international markets, and will report to both Grainne Hurst, group corporate affairs director, and David Lloyd-Seed, director of investor relations and external communications.

Hurst commented: “Tessa’s appointment will help GVC to amplify its ambitions, values and unique competitive advantages as the company continues to strengthen and build its core team.

“She will join both the expanding corporate affairs and investor relations teams at GVC, and will work closely with Jay Dossetter, who has recently been promoted to head of ESG and press office.”

Golden Matrix

Golden Matrix, a developer and licenser of social gaming platforms, systems and content, has appointed Aaron Richard Johnston to the company’s board of directors, effective immediately.

Lauded as bringing “vast commercial and operational experience,” Johnston currently holds remote gaming licenses for the UK and Ireland, and has a personal management licence with the UK Gambling Commission.

“We are thrilled to expand the board of directors with Aaron’s appointment,” stated Golden Matrix CEO Brian Goodman. “As a result of his extensive experience and success with some of the world’s most successful gaming enterprises, Aaron will be instrumental in helping Golden Matrix grow and evolve into a major gaming company operating in multiple vertical markets.

“Aaron’s addition to the board is also another important step in preparing the company for its uplisting to NASDAQ.”

Gaming Laboratories International

Gaming industry testing house Gaming Laboratories International has promoted Karen Sierra-Hughes to vice president of Latin America and Caribbean.

Sierra-Hughes has been with GLI since 2004, driving the firm’s strategy for both regulatory and business development throughout the Latin America and Caribbean region.

Prior to joining GLI she practised law in the Republic of Panama and was later appointed legal director of the Panama Gaming Control Board.

“We are thrilled to announce Karen’s promotion and signalling our absolute commitment to the gaming industry’s success throughout Latin America and the Caribbean in all its forms – land-based, lottery, and online,” said GLI President and CEO James Maida.

“Karen has been an integral part of GLI’s mission in Latin America and the Caribbean. She and her team work in close collaboration with government officials – as well as gaming and lottery suppliers and operators – helping them navigate the future of gaming.

“Their expertise supports these stakeholders’ efforts in establishing well-regulated environments and a successful and sustainable industry. Karen’s leadership, knowledge and passion for her client’s success translates into the appreciation that the industry and her team have for what she does.”

Flutter Entertainment

Flutter Entertainment has announced that Rafi Ashkenazi has stepped down as a non-executive director of the group with immediate effect.

Ashkenazi initially joined The Stars Group in January 2013 and served as the CEO from March 2016 up until the completion of the combination of TSG and Flutter on 5 May 2020, after which he continued on the board of the latter as a non-executive director.

Gary McGann, chair of Flutter, said: “I wish to take this opportunity to acknowledge the major contribution of Rafi in creating the exceptional business that is TSG.

“Rafi has made a significant impact on TSG during his seven-year tenure and was instrumental in transforming TSG from a single product operator to a diverse global leader with multiple product offerings. We wish him well for the future”.

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The transaction, with a value of approximately $331m, raised from $300m in a prior amendment, is now expected to close in the fourth quarter of the current year or the first of 2024.

This is subject to a range of customary closing conditions that include, but not limited to, GMGI shareholder approval and Nasdaq approval, among other items.

It is expected that the online gaming developer, licensor and operator will file the required proxy statement requesting shareholder approval for the issuance of the shares of common stock issuable in connection with the transaction, and other matters, with the SEC for shareholder approval in the near future.

It has also been disclosed that a modification to the financial closing terms allows for the use of up to $20m of cash-on-hand of Meridianbet Group to pay a portion of the $30m cash payable by Golden Matrix at the closing of the transaction.

“These recent filings reinforce the importance of this strategic acquisition, and demonstrate both companies’ willingness and ability to close the transaction,” commented Anthony Brian Goodman, GMGI CEO

“The amendment allowing GMGI and the sellers to use up to $20m of the MeridianBet Group’s cash-on-hand at closing (subject to the sole discretion of the sellers), not only provides the company with potential greater flexibility on financing, but we believe also demonstrates the sellers’ confidence in the value of creating a combined entity capable of being greater than the sum of its parts.”

Furthermore, it was also noted that the online sports betting and gaming group has increased its revenue “considerably” when contrasted to its past-year performance. Expectations for the combined company’s revenue and earnings performances, following completion, have subsequently been ramped up.

Despite this, last month Goodman partially aligned costs associated with the delayed acquisition as resulting in the group slipping to a net loss of $965,628 through its third fiscal quarter ending July 31, 2023.

Following this latest update, he concluded: “Both MeridianBet Group CEO, Zoran Milosevic, and I are confident that the completion of this acquisition will drive long-term value for all our stakeholders as we seek to benefit from economies of scale and both companies’ historical revenue and profit growth. 

“We are also working closely with our bankers in an effort to raise the most beneficial financing available for the transaction.”

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The online gaming platform provider is forecasting revenues to exceed $10m thanks to several key factors including online casino operation progression in Mexico, the company’s aggregate igaming system gaining traction and technology upgrades for RKings.

Commenting on the update, Brian Goodman, CEO of Golden Matrix, said: “In addition to benefitting from operational improvements in each of the company’s business units during the quarter, we have made excellent progress with the due diligence process of the MeridianBet Group; and we now have multiple offers of funding that will help secure the financing required to complete the acquisition.

“We remain confident that GMGI, with its growing internal strength and the pending MerdianBet acquisition, is on the cusp of transforming into not only a diverse and profitable gaming company, but also one that has considerable scale and extensive global representation.”

Golden Matrix stated that MEXPLAY, the company’s B2C online casino in Mexico, has seen “consistent month-on-month progress” following its launch earlier this year in February. Wagering in June on the platform stood at $3.13m, up 167 per cent compared to May’s $1.17m.

Goodman added: “We believe we are seeing solid compounding growth in our fully regulated Mexican online casino, and we expect our success there to lead to expansion into other Latin American countries.”

Regarding Golden Matrix’s B2B aggregate turnkey igaming system GMX-Ag – offering players casino, sportsbook and live gaming content with a single wallet – the company noted that the system “continues to gain traction” with the addition of new operators each quarter.

The group also stated that technology upgrades for RKings brought in during Q2, which has allowed the provider to host more tournament participants, have “resulted in improved offerings”. 

Meanwhile, GMGAsset – a complementary business offering high-ticket item tournament winners a pre-determined cash option in place of their prize, reselling the item with each transaction having a “built-in positive margin” – generated revenues of over $1.2m in the first two months of Q3.

Goodman remarked that Golden Matrix was happy with how their platforms are performing, while also highlighting the MeridianBet acquisition, which is expected to close in Q3 or Q4 this year.

The CEO concluded: “We are extremely pleased with the strength of our B2B and B2C platforms and their popularity with a growing number of participants. 

“And with the completion of the MeridianBet acquisition, we will benefit from each other’s strategic contributions and create a new Combined Company with attractive product offerings in multiple gambling jurisdictions worldwide.”

Golden Matrix will file its Q3 financial results later this year, on or before September 15.

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25

Zimpler is to terminate partnerships with EU-licensed gaming companies that do not possess the relevant Swedish licence following a warning from the country’s gambling authority.

This saw the Spelinspektionen order the company to cease providing payment service solutions containing the e-identification system BankID.

An injunction was issued, alongside a warning of a €25m fine, should the promotion of illegal gambling not be terminated by July 31, 2023.

Action taken by the SGA began following an anonymous tip that suggested that Zimpler “specifically developed payment solutions for certain gaming companies that provide games in Sweden without the necessary licence”.

1

The Dutch gaming authority, Kansspelautoriteit, warned the industry “not to push the boundaries” regarding an untargeted advertising ban that entered into force at the turn of the month.

Amid much talk in the build-up to the new rules coming into effect on July 1, the prohibition is intended to heighten protections for vulnerable groups against the risk of gambling addiction.

“Recruitment and advertising activities should not reach minors, young adults and other vulnerable groups,” the country’s regulator reminded.

This saw advertising on TV and radio, as well as in newspapers and magazines, become outlawed. Furthermore, ads in public places, such as billboards and bus shelters, and buildings accessible to the public, including casinos, slot machine arcades, cinemas and cafes, are also not permitted. 

However, ads via the internet, direct mailing, on-demand TV, social media or in the online gaming environment remain permitted under strict conditions.

331

Golden Matrix has detailed an amended and restated Meridianbet purchase agreement, with the cash and stock transaction now having a value of approximately $331m.

The online gaming developer, licensor and operator unveiled the acquisition in January, when an “ongoing drive to scale the business as a whole at a rapid growth rate” was stressed amid a $300m purchase price being initially detailed.

However, this latest development comprises an extended closing date, as well as modifications to additional terms of the definitive agreement, pursuant to which Golden Matrix will acquire Meridianbet and its related companies.

Under the terms of the revisions, among other changes to the consideration payable to the sellers, the cash required to be paid at closing has been reduced from $50m to $30m, with $20m in non-contingent cash consideration due post-closing. 

500,000

The Administrative Court in Linköping, Sweden, has overturned a SEK 6m (€500,000) sanction that was issued by Spelinspektionen to AB Trav och Galopp.

The latter appealed the fine by the Swedish gambling authority, contesting the size and warrant of the authority’s penalty related to deficiencies in its handling of money laundering controls between 2019 and 2021.

Spelinspektionen noted systematic shortcomings within its investigation, highlighting interactions related to eight customer accounts. ATG contested the claims, stating that suitable risk-based actions had taken place during the relevant period. 

The Administrative Court has agreed with ATG, noting that while there were shortcomings, they weren’t serious enough to warrant a warning and sanction fee. As a result, Spelinspektionen’s sanction fee has been overturned.

26

26 Capital Acquisition hit back at attempts by Universal Entertainment, and various subsidiaries connected with Okada Manila, to scrap a long mooted merger, by committing to a lawsuit that is set to get underway next week.

The Miami-based publicly traded special purpose acquisition company filed suit against UE Resorts International, Tiger Resort, Leisure and Entertainment, and two further entities, after accusing these parties of having “dragged their feet” and “making virtually no effort to move forward”.

The merger agreement, that would have seen Okada Manila become a publicly traded company on the NASDAQ, was first agreed in October 2021, in a transaction that implied an enterprise value of $2.6bn, and would provide up to $275m in cash. 

15

NHS England will be opening seven new gambling addiction clinics this summer to support those that are suffering from gambling harm.

It was stated that the number of people that have been referred to gambling harm clinics over the past year has increased by more than a third, rising to 1,389 patients (2021/22: 1,013 patients).

This latest figure is also up by almost four-fifths compared to what was reported two years ago (2020/21: 775 patients).

The NHS is “adapting to new healthcare needs” with the addition of seven new clinics in Milton Keynes, Thurrock, Bristol, Derby, Liverpool, Blackpool, and Sheffield, bringing the total number of gambling addiction clinics in England to 15.

13

Chelsea reportedly abandoned plans to align with Stake in a front of shirt sponsorship deal, with the club now thought to be in discussions with other interested parties as the start of the new Premier League season looms.

The potentially lucrative one-year agreement would’ve come ahead of a voluntary withdrawal of such agreements from sides in the English top flight. However, a slew of industry partnerships have been witnessed across recent weeks.

This leaves the Stamford Bridge club in a state of limbo a little over month out from the start of the Premier League, with Chelsea set to host Liverpool in its opening fixture on Sunday 13 August.

The arrangement with the betting and gaming operator was thought to be on the cards after a potential deal with Paramount Plus fell through.

3.4

Spelinspektionen declared a 15 per cent year-over-year decrease in traditional media advertising spending by the country’s gambling companies.

Publishing the figures on its website, it was reported that Swedish gambling companies’ advertising spend in traditional media in 2022 was SEK 3.4bn (€285m), down by SEK 600m YoY (€50.4m) compared to 2021’s figure of SEK 4bn. 

Advertising spending in traditional media by gambling companies in Sweden hasn’t surpassed SEK 5bn since 2019’s SEK 5.7bn, while the country’s highest spending amount over the past seven years was 2018’s SEK 7.3bn.

Traditional media includes purchased advertising in printed press, TV, radio and outdoor advertising, with some digital media purchases also accounted for. 

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The online gaming developer, licensor and operator unveiled the acquisition in January, when an “ongoing drive to scale the business as a whole at a rapid growth rate” was stressed amid a $300m purchase price being initially detailed.

However, this latest development comprises an extended closing date, as well as modifications to additional terms of the definitive agreement, pursuant to which Golden Matrix will acquire Meridianbet and its related companies.

Under the terms of the revisions, among other changes to the consideration payable to the sellers, the cash required to be paid at closing has been reduced from $50m to $30m, with $20m in non-contingent cash consideration due post-closing. 

The company is currently working to obtain the financing required to complete the transaction and plans to file the required proxy statement to seek shareholder approval for the acquisition, among other items, in the third quarter of 2023. 

This comes amid an ongoing ambition of securing global growth “in a strategic and sustainable way,” with Meridianbet to provide access to what are billed as “new and fast growing regulated B2C markets in Eastern Europe”.

Citing a 2023 Statista report, Golden Matrix noted that these regions are expected to reach $894m in revenue through this year, with that figure reportedly set to swell to $1.23bn by 2027.

The acquisition is expected to close in the third or fourth quarter of 2023, subject to various conditions to closing, including the required funding being raised, shareholders issuing approval and other items.

“In consideration of the reduced cash amount required to be paid at the closing of the transaction, the revised cash and stock transaction now has a value of approximately $331m, with the stock consideration priced at $3 per share – currently an approximate 38 per cent premium to GMGI’s 30-day VWAP closing price (with 82,141,857 shares of common stock due at the initial closing),” explained Anthony Brian Goodman, Chief Executive Officer of GMGI.

“Meridianbet has increased its year-to-date revenues considerably against last year’s revenues and the proforma performance of the combined company following the acquisition is now projected to be approximately $31m in adjusted EBITDA for the October 31, 2023 year, and approximately $139m in revenues, based on Meridianbet’s year to date financial statements and financial projections. 

“Meridianbet’s impressive performance thus far in 2023 gives us even greater confidence in the value of this acquisition, which is expected to bring significant benefits to GMGI from both a financial and operational standpoint, and our management team is confident it will drive long-term value for all our stakeholders.”

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The acquisition is expected to be finalised during the second half of the current year, with the group expecting to generate “considerable revenues” via the group’s B2C online sports betting and igaming entity in the Mexican market.

Brian Goodman, Golden Matrix CEO, said that Meridianbet “will significantly advance GMGI’s global footprint with numerous B2B and B2C product offerings on most continents and, we believe, create the opportunity for us to participate in online gambling markets in the US and Canada.”

Adding: “We believe it should serve as the first major step toward GMGI’s planned expansion throughout Latin America.”

The comments came in the company’s financial report for the year ending October 31, 2022, which saw revenue reach $36m, an increase of 219 per cent from the $11.3m in the comparable period one year earlier. Adjusted EBITDA for the year closed at $3.52m, up 45 per cent year-on-year from $2.43m.

Revenue contributions during the reporting time frame from GMGI’s B2B and B2C segments were $14.8m and $21.2m, respectively.

There were no contributions from the (RKings) B2C segment during fiscal 2021, as GMGI had not acquired its 80 per cent controlling ownership interest in RKings until the beginning of fiscal 2022. At the end of the fiscal year, GMGI exercised its option and acquired the remaining 20 per cent interest.

Furthermore, a significant hike in general and administrative expenses to $5.44m (2021: $1.26m), was primarily attributed to $3.13m aligned to the B2C segment. An 83 per cent YoY B2B uptick is due mainly to increases in marketing and payroll costs.

“This has been a highly constructive year for our rapidly growing company,” commented Goodman. “We believe the increased costs incurred and investments made in our B2B and B2C platforms have positioned GMGI to sustain and even accelerate our strong revenue growth. 

“To remain competitive in the worldwide gaming industry, we are continually upgrading our systems and gaming content offerings to support the needs of our millions of participants.”

He continued: “The combined pro forma revenues of Golden Matrix and Meridianbet are expected to be greater than $100m for FY2022, with an adjusted EBITDA estimated to be greater than $22m for the pro forma year ended October 31, 2022, making the combination financially appealing and earnings-accretive.”

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The agreement will see Spearhead Studio’s portfolio of over 90 proprietary games – including titles such as John Daly: Spin It And Win It, 15 Armadillos and Book of Souls Remastered – become available via Golden Matrix’s casino offering.

Commenting on the development, Mathias Larsson, Managing Director of Spearhead Studios, remarked: “The partnership between Spearhead Studios and Golden Matrix is a pivotal point for both companies. We are very happy to be live on the Golden Matrix aggregator platform. 

“GMG’s extensive experience in the industry makes them our most important partner in their core markets.”

Currently developing and distributing more than 3,000 games to over 580 operators, the gaming technology firm declares that it reaches six million end users around the world.

“We are excited by this opportunity and we are confident that this partnership will strengthen our brand and market share through the addition of Spearhead Studios’ popular advanced games,” added Brian Goodman, CEO at Golden Matrix Group.

“These new games should be received enthusiastically by our operators and users on the new GM-Ag platform, and we expect this to be a supplement to our strong growth in the APAC market. 

“The addition of Spearhead Studios’ games will increase our online gaming portfolio and ensure continued revenue growth and success.”

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