AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Portuguese igaming revenue grows to €152.1m in 2018 Topics: Casino & games Finance Sports betting Poker Slots Tags: Card Rooms and Poker Online Gambling Slot Machines Regions: Europe Western Europe Portugal Email Address 21st February 2019 | By contenteditor Portugal has posted €152.1m in online betting and gaming revenue for 2018, the second full year of regulation in the country, up 24% on the prior year.Sports wagering was again the main source of income for licensed operators in the 12 months to December 31, 2018. Revenue from this vertical amounted to €78.9m, up from €68.1m in 2017, according to figures from national regulator Serviço Regulação e Inspeção de Jogos do Turismo de Portugal (SRIJ).Much of this was down to increased spend on the 2018 Fifa World Cup football tournament, which took place from June 14 to July 15. In Q2, World Cup betting accounted for 74.4% of all sports wagers, with revenue at €20.5m.Online casino gaming revenue also increased from €54.4m in 2017 to €73.2m, representing an increase of 34% year-on-year.However, despite the draw of the World Cup, the fourth quarter proved to be the most successful for licensed operators, with revenue at €43.0m, up from €36.5m in the final quarter of 2017.Sports betting revenue was at its highest in Q4, with operators reporting revenue of €21.6m from amounts wagered of €110.6m. In comparison, stakes was lower in both Q2 (€89.8m) and Q3 (€90.1m) when the World Cup was actually taking place, with total sports betting spend for 2018 amounting to €391.8m.Online casino was also at its highest in the fourth quarter, with revenue at a year-high of €21.5m and total stakes of €576.4m. Online slots proved most popular with consumers in the final three months of the year, with 61.6% of all wagers placed on these games.French roulette was some way behind in second with a market share of 14.0% for the quarter, then poker cash games on 10.6%, despite being handed a boost with Portugal joining a shared liquidity network with France and Spain last February.The SRIJ also noted that by the end of 2018, a total of 31,500 consumers had opted to self-exclude from gambling. However, the regulator raised concerns when it stated that of all players registered for online gambling, 2.7% of these are currently self-excluded. In addition, the SRIJ provided an update on its blocking efforts, saying that up to December 31, 2018, a total of 338 illegal gambling operators had been told to cease operations in the country. Internet service providers were instructed to block 270 sites that, despite warnings from the SRIJ, had continued to operate in the country.Portugal launched its regulated online gambling market in May 2016.For more on the Portuguese igaming market, see our recent e-zine. Casino & games Subscribe to the iGaming newsletter Portugal has posted €152.1m in online betting and gaming revenue for 2018, the second full year of regulation in the country, up 24% on the prior year.
Tags: Race Track and Racino Horse racing SIS pens exclusive deal for Spanish racing rights SIS (Sports Information Services) has struck a deal with Spanish horse racing organisation Asociación de Hipodromos Españoles to become the exclusive distributor of live pictures and data from horse races in the country. AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter SIS (Sports Information Services) has struck a deal with Spanish horse racing organisation Asociación de Hipodromos Españoles to become the exclusive distributor of live pictures and data from horse races in the country.Under the three-year agreement, SIS will broadcast a minimum of 480 races each year from the six leading racecourses in Spain: Hipódromo de la Zarzuela, Dos Hermanas, San Sebastian, Sanlucar, Pineda and Son Pardo Y Manacor.The deal covers major racing events such as the Centenario Del Gran Premio De Madrid and Gran Premio Memorial Duque de Toledo.SIS will make the coverage available to its network of operator partners as part of its international retail channels, 24/7 Live Horse Racing Channel and 24/7 Live Horse & Greyhound Channel services.“These additional races further enhance our 24/7 racing service, providing even more quality betting opportunities throughout the day, regardless of time zone, with content that will appeal to bettors, and help drive turnover for operators,” SIS’s head of international horse racing, Simon Fraser, said.Asociación de Hipodromos Españoles president, Rafael Marquez Ojea, added: “SIS has an established reputation for distributing live racing to operators all around the world and it made strategic sense for us to partner with them.”The new deal comes after SIS in March extended its media rights agreement with the Singapore Pools, allowing it to continue to distribute live pictures and data from the Singapore Racecourse in Kranji.SIS has also recently signed racing rights deals with England’s Ascot Racecourse and Spanish operator Codere Group. Subscribe to the iGaming newsletter Regions: Europe Southern Europe Spain 13th May 2019 | By contenteditor Topics: Sports betting Horse racing Email Address
FanDuel pens exclusive partnership with fuboTV DFS Sports betting and daily fantasy sports (DFS) operator FanDuel Group has entered a partnership with US sports-focused streaming service fuboTV. FanDuel will serve as the exclusive sportsbook, online casino, horse racing and DFS partner of fuboTV. 24th May 2019 | By contenteditor Sports betting and daily fantasy sports (DFS) operator FanDuel Group has entered into a partnership with US sports-focused streaming service fuboTV.Under the agreement, the terms of which have not been disclosed, FanDuel will serve as the exclusive sportsbook, online casino, horse racing and DFS partner of fuboTV.The deal also covers a media buy, which will make Paddy Power Betfair-owned FanDuel the exclusive advertiser on fuboTV across the four categories.The partnership marks FanDuel’s first strategic link-up with a third-party, over-the-top (OTT) internet television service and will expand fuboTV’s offering with the integration of betting data from FanDuel on the fuboTV platform.“fuboTV is a sports-centric company, focused on live sports and entertainment content, making them a natural partner,” FanDuel’s vice president of content business and operations, Adam Kaplan, said. “By integrating our odds and data on fuboTV’s platform, we are truly changing the way people watch live sports.”As part of the new arrangement, TVG and TVG2, the US horse racing networks that operate as subsidiaries of FanDuel, will also be made available to fuboTV subscribers across the US.“We’re partnering with fuboTV to demonstrate how FanDuel can enhance the live viewing experience by allowing cord-cutting sports fans to view the content that matters to them the most from their TV, phone, tablet or computer,” Kaplan added.Min Kim, vice president of business development at fuboTV, said: “Gaming and sports are natural complements, and fuboTV’s industry-leading product offerings will be further enriched with FanDuel’s innovative entertainment solutions.“We’re thrilled to select FanDuel as our partner – the first deal of its kind between a virtual MVPD and a gaming company – and integrate their products into fuboTV.”The partnership comes after FanDuel last month also expanded its partnership with Sportradar to launch live streaming for US customers for the first time. FanDuel will deliver the service via its sports betting app and feature coverage of football and tennis events from around the world via Sportradar’s Live Channel Online.Live Channel Online will now be included directly into the FanDuel Sportsbook interface, incorporating live sports events with betting lines and data, with the customer able to place in-play bets on the event they are watching. Regions: US Topics: Sports betting DFS AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Tags: Fantasy Sports Online Gambling Subscribe to the iGaming newsletter Email Address
AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Canadian provincial lottery operator the Atlantic Lottery Corporation (ALC) has announced Chris Keevill as its new chief executive officer, effective 1 May. Keevill, currently chief executive of creative agency Colour, will replace Brent Scrimshaw, who has led the lottery – which serves the provinces of New Brunswick, Prince Edward Island, Nova Scotia and Newfoundland and Labrador – since 2011. Scrimshaw announced that he was to step down from the role in September last year, having spearheaded significant investment in technology during his tenure. He will remain in place until 1 May in order to ensure a smooth transition to the new leadership.Keevill, his replacement, said it was “an honour” to take charge of ALC’s “outstanding team”. He would work to further the business’s goals of growing its player base, improving player experience and modernising its operations. “These key strategic business areas are clearly underlined by a firm commitment to social responsibility,” he said.Read the full story on iGB North America. 13th February 2020 | By contenteditor Regions: Canada New Brunswick Newfoundland and Labrador Nova Scotia Prince Edward Island Subscribe to the iGaming newsletter ALC hires Chris Keevill as new chief executive Email Address Topics: Lottery People Lottery Canadian provincial lottery operator the Atlantic Lottery Corporation (ALC) has announced Chris Keevill as its new chief executive officer, effective 1 May.
25th February 2020 | By Aaron Noy Casino & games Subscribe to the iGaming newsletter Wild Krakatoa is a 5 reel, 30 payline video slot with Krakatoa feature and Free Spin bonus. Experience the wild volcanic riches of the fiery Krakatoa!You can download the affiliate pack for this game at First Look Games here! Wild Krakatoa is a 5 reel, 30 payline video slot with Krakatoa feature and Free Spin bonus. Experience the wild volcanic riches of the fiery Krakatoa! Email Address Topics: Casino & games Slots AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Wild Krakatoa by 2BY2 Gaming
Casino & games iGB, in partnership with Bayes Esports Solutions, is proud to present a regular list of fixtures for some of the most popular esports competitions, helping operators looking to expand into the esports market while the traditional sports calendar has been significantly reduced. 30th April 2020 | By contenteditor The week’s esports fixtures: 30 April to 6 May Topics: Casino & games Esports Sports betting Video gaming Tags: Online Gambling Video Gaming AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter iGB, in partnership with Bayes Esports Solutions, is proud to present a regular list of fixtures for some of the most popular esports competitions, helping operators looking to expand into the esports market while the traditional sports calendar has been significantly reduced.With action taking place across a number of titles and competitions, iGB has taken the information provided through Bayes’ Esports Directory and narrowed it to cover Counter-Strike: Global Offensive (CS:GO), Dota 2 and League of Legends, the sector’s most popular titles. Each competition is ranked by the number of fixtures taking place in the week from 30 April, to highlight the tournaments with the most action over this period. This week the WePlay! Pushka League Season 1, an online tournament for Dota 2, tops the list, with 23 fixtures in the coming seven days. The event, sponsored by betting and gaming operator Parimatch, began on 23 April, and runs to 12 May, with 14 teams from Europe competing for a $250,000 prize. By 6 May, the top four teams will advance to the play-off stage, which runs from 7 to 11 May.Next up is the ESEA Premier Division Season 34 North America, a CS:GO league that began on 27 April, and concludes on 21 July. This week there are 21 matches taking place in the division. A series of events organised by tournament organiser ESL follow, all for CS:GO, including the European and CIS legs of its Road to Rio series.The Dota 2 event with the most fixtures in the coming week is the China Professional League Season 2 Group Stage, which began on 1 April.Scroll on to see the full breakdown of the week’s CS:GO, Dota 2 and League of Legends fixtures for the week from 30 April to 6 May.This list is not yet exhaustive, and may be subject to change. Find out more about the Esports Directory here.Bayes Esports Solutions is the go-to provider for the esports data sector – for data right holders, consumers and service providers alike. The Berlin startup has developed BEDEX, the world’s first independent esports data marketplace for In-game data. Subscribe to the iGaming newsletter Email Address
Email Address Regions: UK & Ireland AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Subscribe to the iGaming newsletter Tags: OTB and Betting Shops Race Track and Racino Finance Topics: Finance Sports betting Horse racing The British Horseracing Authority (BHA) has announced that it plans to increase minimum prize money levels from September, with the appearance money scheme, designed to deliver more value for mid- and lower-tier trainers also set to resume that month. BHA to increase racing prize money from September 31st July 2020 | By contenteditor The British Horseracing Authority (BHA) has announced that it plans to increase minimum prize money levels from September, with the appearance money scheme, designed to deliver more value for mid- and lower-tier trainers also set to resume that month.From 1 September, minimum prize values will increase at all levels of British racing, with money for middle and grassroots tiers returning to the levels seen before the novel coronavirus (Covid-19) pandemic shut down events from 18 March.For Class 1 and Heritage Handicap racing, the minimum prize values will grow to 75% of their pre-lockdown levels. This has been facilitated by additional funding from the Horserace Betting Levy Board (HBLB), as well as executive contributions from racecourses.The HBLB had been spending 25% more on prize money since racing resumed in England on 1 June, but for the period from 1 September to 31 December, will now hike its contribution by 50%. This means it will contribute £26.6m over the four months, up from the original allocation of £17.7m.“We are very pleased to have been able to agree another rise in our prize money allocation for the rest of 2020 at what we recognise as a crucial time for the sport,” HBLB chair Paul Darling said. “We intend that this substantial injection of funds will provide confidence and certainty.“I would like to thank bookmakers generally, who have continued to provide us with timely payments on account, and in addition those operators who have shared with us weekly race by race betting data, allowing us to measure very quickly the performance of racing since resumption,” he added. “This has been key in supporting our modelling and given us the ability to take decisive action.”BHA chief operating officer Richard Wayman added that the increase in minimum prize money was a “critical part” of the sport’s recovery plan.“Owners have displayed great patience in recent months and it is crucial that prize money grows at all levels as quickly as possible,” Wayman said. “Whilst there is a long way to go, the increase in minimum values together with the re-introduction of the appearance money scheme are clearly steps in the right direction.”In addition, the BHA will reintroduce its appearance money scheme, first launched in 2018, from the start of September. This is designed to improve the return to owners with horses competing in the middle and lower tiers, and will see horses that finish between fifth and eighth place receive £300 for flat racing, and £350 for jumps.A trial will also be conducted for steeplechases, which will see payments made to the remainder of the field. This is subject to horses meeting minimum rating requirements, and aims to ensure adequate welfare funding for competitors. Further details are to be announced in due course.The announcement of the increase in prize money and reintroduction of the appearance money scheme coincides with publication of the fixture list for September to December. This will see a maximum of five fixtures take place on any day, to ensure all Covid-19 safety measures are implemented in full.Start times will be scheduled to avoid fixture clashes wherever possible, with participants permitted to attend only one meeting per day, and five floodlit fixtures added in November.In total there will be 460 fixtures held over the four month period, up from 455 in the original fixture list for 2020.
In today’s rapidly evolving business environment it has become a very common practice for entities to expand their customer base to overseas markets or to have their operations extended overseas to countries where the costs of, or the incentives for doing, business are more enticing.This is no different for gaming entities, which as part of the nature of their business, they operate across multiple jurisdictions and as a result of B2C (business to customer) transactions, they receive bets in various currencies. This may lead to uncertainties when determining the functional currency of an entity and poses a challenge for management in their assessment of the appropriateness of functional currencies.International Financial Reporting Standards (IFRS) provide guidance to determine the functional currency of an entity, under IAS 21 The Effects of Changes in Foreign Exchange Rates. The standard also prescribes how to include foreign currency transactions and foreign operations in the financial statements of an entity and how to translate financial statements into a presentation currency.For the purpose of this article, we’ll be focusing specifically on determining the functional currency for entities, determining the functional currency of a foreign operation, and how to deal with a possible change in the said functional currency.Definition and determination of the functional currencyThe functional currency is the currency of the primary economic environment in which the entity operates. That is, the environment within which the entity normally conducts business and where it generates income and spends cash. All other transactions in currencies other than the functional currency, are treated as transactions in foreign currencies.To determine the functional currency an entity needs to consider various factors, which IAS 21 splits into 2 categories, that is the primary and the secondary factors.The primary factors that an entity needs to consider are the following:The currency that mainly influences the sales prices for the goods and services, which will often be the currency in which sales prices for its goods and services are denominated and settled.The currency of the country whose competitive forces and regulations mainly determine the sales price of its goods and services.The currency that mainly influences labour, material and other costs of providing goods or services, which normally is the currency in which such costs are denominated and settled.When considering points 1 and 2 above for gaming entities, these are not going to give a straightforward interpretation of the functional currency.This is because a company with a gaming licence in a specific country, would have the facility to operate in a number of different jurisdictions.As a result, its revenue would be denominated in various currencies, unless the entity itself would pose restrictions on the currencies allowed to be used. For instance, if a UK operating gaming entity, limits the deposits that could be done by its customers to GBP, this would indicate that its functional currency is the GBP.With respect to point 3, the management of the gaming entity would need to look at the location where its labour force is operating, the currency used to settle their respective salaries and any other costs it would be incurring. For instance, for a gaming entity operating from Malta whose majority of the labour force are located and working from Malta, the salary cost would be settled in euro. Moreover, any other costs related to the provision of gaming services are also mostly in euro. This could indicate that the functional currency of the entity is likely to be the euro.The following secondary factors should also be considered to provide additional evidence of an entity’s functional currency:The currency in which funds from financing activities are generated.The currency in which receipts from operating activities are usually retained.In view of the fact that an analysis of the primary factors would not be definitive in determining the functional currency for a gaming entity, management is required to carry out an assessment taking also into consideration the above-mentioned secondary factors.Management is required to assess the funding obtained by the gaming entities and how the receipts from their operating activities are retained. For example, in cases where a gaming entity received funding from its Group and these funds have been transferred and retained in euro, it could possibly indicate that the functional currency of that entity is the euro.Therefore, to determine the functional currency of an entity, management is required to carry out an assessment, taking into consideration the above mentioned primary and secondary indicators, which most faithfully represent the economic effects of the underlying transactions, events and conditions pertaining to the entity.When the above indicators are mixed and therefore do not give a clear indication of the functional currency of the entity, management must exercise its judgment, and in cases of gaming entities, focus primarily on the secondary indicators.Functional currency of a foreign operationA foreign operation is an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, and whose activities are based or conducted in a country or currency other than those of the reporting entity (the reporting entity in this context being the entity that has the foreign operation as its subsidiary, associate, joint venture or branch).The following additional factors are considered when determining the functional currency of a foreign operation, and whether its functional currency is the same as that of the reporting entity:Autonomy – whether the operation is essentially an extension of the reporting entity.Proportion of transactions – whether the foreign operation’s transactions with the reporting entity constitute a high or low proportion of the operation’s activities.Proportion of cash flows – whether cash flows from the activities of the foreign operation directly affect the cash flows of the reporting entity and are readily available for remittance to it.Debt service – whether a foreign operation’s cashflow can service its debt obligations without funds being made available by the reporting entity.Change in functional currencyAs described above, an entity’s functional currency reflects the underlying transactions, events and conditions that are relevant to it. Hence, once determined, the functional currency does not change unless there is a change in the underlying nature of the transactions and relevant conditions and events.For example, a change in the currency that mainly influences the sales prices of the goods and services may led to a change in an entity’s functional currency.The effect of a change in the functional currency is accounted for prospectively. Therefore, an entity translates all items into the new functional currency using the exchange rate at the date of change.The resulting translated amounts for non-monetary items are treated as their historical cost. Exchange differences arising from the translation of a foreign operation previously recognised in other comprehensive income are not reclassified from equity to profit and loss until the disposal of the operation.ConclusionIAS 21 sets out the guidance in determining the functional currency on a purely individual entity basis. The notion of group functional currency does not exist under IFRS. Entities applying IFRS need to carry out an assessment of the functional currency, which is a key element especially when considering changes in the group structures or when implementing new strategies.Furthermore, should the activities of the entity within the group change for any reason, the determination of the functional currency of that entity should be reconsidered to identify the changes required.It is also important to note that, notwithstanding the fact that the responsibility in determining the functional currency lies with the entity’s management, it is also the responsibility of the auditors to review critically and exercise professional judgement and scepticism, to ensure that the assessment made by management is appropriate and in accordance with IAS 21 principles.Claudia Vella Schembri is an Assistant Manager in the Accounting Advisory Services unit at KPMG in Malta, specialising in resolving technical financial reporting issues, including amongst others the accounting implications on the igaming industry.Jonathan Dingli heads the Accounting Advisory Services team at KPMG in Malta and is a leading expert in IFRS. He also lectures on advanced financial reporting in the Master in Accountancy post-graduate degree at the University of Malta. 5th October 2020 | By contenteditor AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Email Address With more igaming businesses receiving bets from across multiple jurisdictions, Claudia Vella Schembri and Jonathan Dingli provide some advice on how management should go about determining the functional currency of an entity. Strategy Subscribe to the iGaming newsletter Determining the functional currency: Relevant considerations Topics: Finance Strategy Management
AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter That shift from acquisition to operational excellence is likely to be followed by product becoming the key factor in sportsbook success. Forward-thinking operators are already beginning to consider this, resulting in some shifting to new platforms, or as the ICE 365 US sports betting series keynote DraftKings did, acquiring them. The second feature in the Path to Profitability, from Scott Longley, examines this in depth, looking at pricing and product development across the market. Free-to-play sports come to the fore In the first part of the Path to Profitability series, Robin Harrison considers these changes, and whether the industry is beginning to shift emphasis to customer relationship management and user experience become key. Subscribe to the iGaming newsletter US betting product goes through the gears The forces evolving US sportsbook marketing However, as more operators list, partnerships are set aside and new deals struck, there are early signs of evolution. Regions: US 2 minutes read This editorial series comprises analyses of marketing, product and new verticals to offer insights into how the US market evolves from its current focus on acquisition to a more profitable proposition for operators. And amid this process operators are looking for ways to drive down costs and better retain players. And this has finally helped free-to-play sports, a vertical that failed to make an impact during the 2012 social casino boom, gain a foothold. Cole Rush talks to one of the leading providers, Chalkline Sports, to discuss how these products can help acquire and retain bettors, and build up hefty databases before real-money regulation takes effect. The Path to Profitability series finishes with Cole Rush’s second piece, this time looking at a potentially lucrative area of expansion. Horse race betting is the oldest form of gambling in the US, and this analysis looks at the early stages of racetracks engaging with the gaming expansion wave. And with a fixed-odds betting bill under consideration in the New Jersey legislature, there could be significant scope for this to be ramped up in the coming years. Off to the races The nascent US sports betting market is currently in its first phase, in which customer acquisition is the core focus. In almost three years since the repeal of the Professional and Amateur Sports Protection Act (PASPA), operators have invested heavily to build up large audiences. Topics: Sports betting ICE365 Content Series The path to profitability 16th March 2021 By contenteditor Email Address
The operator said Germany made up 6% of revenue in Q1 of 2021, suggesting it brought in around €5.8m. The reported 19.0% increase in non-German revenue, meanwhile, suggests that the market brought in €13.1m in 2020, meaning revenue dropped 55.7%, or by €7.3m. Q1 results 2021 LeoVegas incurred €1.1m in financial costs, meaning it posted €2.6m in profit before tax, an increase of 8.3% on last year. After paying €178,000 in income tax, the operator ended the quarter with €2.4m in comprehensive net profit, up 4.4% year-on-year. Subscribe to the iGaming newsletter Regions: Europe Germany Looking ahead, LeoVegas revenue declined in April, which was due in part to particularly high revenue in the comparative period of April 2020 with most markets under lockdown. Excluding Germany, revenue was up 4%. Classic casino games remained by far the main source of income for the operator, with this segment representing 74.0% of all total revenue in Q1, ahead of live casino on 17.0% and sports betting with a 9.0% share. “The assessment is that up to 70%-80% of the German market for casino has temporarily been shifted over to operators that have chosen to not adapt to the coming market regulation. Breaking down LeoVegas’ entire revenue performance geographically, rest of world was the largest region for LeoVegas in Q1, accounting for 42.0% of total revenue. Some 38.0% of revenue came from the Nordics, while the remaining 20.0% was attributed to rest of Europe operations, which include Germany. “During the first quarter we saw the full effect of the changes taking place in the German market,” LeoVegas president and chief executive Gustaf Hagman said. “Operators in the market are acting differently with respect to implementing the new restrictions, which unfortunately has led to a skewed competitive situation. Total customer deposits were up 2.8% to €295.8m in the quarter, with a 3.6% drop in the number of new depositing customers to 186,510 offset by a 25.5% increase in returning depositing players. Revenue for the three months to 31 March amounted to €96.7m (£83.6m/$116.2m), up from €89.4m in the same period last year. However, excluding Germany, revenue increased 19.0% year-on-year. After including €2.7m in depreciation and amortisation costs and a further €4.1m from the amortisation of acquired intangible assets and impairment of assets, including goodwill, this left an operating profit of €3.7m, up 68.2%. Online gambling operator LeoVegas reported an 8.2% year-on-year increase in revenue for the first quarter of its financial year, despite the impact of new regulations in Germany having slowed progress in the country. Tags: Revenue LeoVegas Profit LeoVegas Q1 revenue up 8.2%, but German revenue plummets by 55% amid new regulations Turning to costs, marketing was the largest outgoing for LeoVegas in Q1, with spend here rising 15.3% to €36.1m. Staff costs were also up 9.9% to €13.3m, while capitalised development expenses climbed 33.3% to €3.2m. In addition, LeoVegas said the market made up 15% of revenue, or €14.8m, in Q4 of that year, meaning German revenue dropped by €9m, or 60.9%, quarter-on-quarter. “Our growth has been driven mainly by our loyal customer base, which reached a new record level during the period,” Hagman said. “We have maintained a high pace of investment, and despite this we achieved adjusted EBITDA growth of 22%, driven by our scalability and good cost control.” “For a long time we have created successful, exclusive games with the help of external providers,” Hagman said. “We are now taking the next step by starting our own game studio – Blue Guru Games. 6th May 2021 | By Robert Fletcher “This venture will give us full control and greater flexibility in developing new games, a unique offering to our players, and also a new revenue stream for the group.” Topics: Finance Q1 results 2021 AddThis Sharing ButtonsShare to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitter Email Address However, higher revenue offset this higher spending, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 15.6% to €10.4m. “Our hope is that this will soon be sorted out by the German authorities, which is a prerequisite for the licence system’s success, with a high level of channelisation and consumer protection.” Hagman also noted the acquisition of the Expekt sports betting brand from Betclic Group in Q1, saying this, the purchase of a 25% stake in startup SharedPlay and the launch of a new games development studio this month will support further growth in Q2 and beyond.