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Jumbo Interactive Announces FY2020 Results

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Australian online lottery retailer Jumbo Interactive has announced its FY2020 results. The company has reported an 8.7% year-on-year growth in revenue and is now targeting growth in markets such as the UK, US and Canada as it aims to increase sales to AU$1bn. Total sales for the 12 months to 30 June amounted to AU$348.6m ($251.0m), with revenue rising from $65.2m to $71.2m.

Its core Australia Lotteries saw revenue increase 6.9% year-on-year to $68.7m, aided by a $260,000 contribution from its burgeoning software-as-a-service business, as well as large jackpots driving customer activity.

In terms of spending for the year, costs of sales were up 5.1% to $5.3m, while administrative expenses also increased 46.5% to $23.6m. However, Jumbo was able to reduce marketing costs by 19.9% to $5.6m, while occupancy expenses were cut by 86.0% to $104,000 for the year.

After taking into account $222,000 in finance costs and $176,000 in fair value movement on financial liabilities, this left Jumbo with a $37.4m profit before tax, down slightly from $38.2m at the end of its 2019 financial year.

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Jumbo paid $11.5m in tax during the year, and after also including a $676,000 negative impact from foreign currency translation, this meant comprehensive profit for the year amounted to $25.2m, down 4.6% from $26.4m in 2019. However, in terms of underlying earnings before interest, tax, depreciation and amortisation, this increased by 7.7% to $43.2m.

“The online lottery industry has experienced further growth and this is expected to continue, especially as we broaden the charity lottery tickets we are now selling through our Powered by Jumbo software, which we feel will not only assist our profitability but also the deserving charities we are focusing on. We have often been asked if the Covid-19 pandemic has had an effect on our operation. With the experience of our major shareholder and CEO Mike Veverka and his very skilled staff, we have been able to continue to work both within the office and from the staffs’ respective homes,” David Barwick, chairman of Jumbo Interactive, said.

Veverka said that with online sales of lottery tickets accounting for 28% of Australian sales, the industry “clearly has a lot of growth ahead.”

“Lotteries are perfect for the internet and customers enjoy a top quality experience whether they play on OzLottries.com or another lottery using the Jumbo platform. Continual innovation is driving the customer experience even higher and is ensuring lotteries continue to remain popular into the future.”

Veverka also highlighted Jumbo signing a long-term extension to its reseller agreement with Australian lotteries and gaming operator Tabcorp, saying this will help to support its growth plans moving forward.

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“The recent 10-year agreement with Tabcorp is an important milestone as it gives Jumbo certainty and the ability to plan long term. The next 10 years will be exciting as the internet share of ticket sales race up as players, young and old, enjoy the experience of playing online,” he said.

“From humble beginnings with a single computer in 1995, Jumbo has navigated many challenges and is ready for the growth that lies ahead. Our staff and partners over the years deserve enormous credit for this growth due to their efforts and trust in the vision to grow through technology,” he added.

Jumbo’s international lottery advisor Richard Bateson said that the retailer has identified opportunities for its iLottery and iRetailer solutions in the US, as more states move lotteries online.

“The iLottery proposition provides lotteries with an integrated digital lottery channel that is more efficient and effective than its industry competitors. The iRetailer proposition provides lotteries with a standalone digital channel that is self-sufficient and does not require operating cost or marketing budget to be diverted from the lottery’s main operations,” Bateson said.

“Once there is an established foothold in Canada, management believes the model can be exported to other parts of the North American region, using the expertise of the local market in adjacent markets. The international ambition is to drive sustainable businesses in the UK, the US and Canada that will be used as a beachhead in each region to grow into other markets and sectors,” Bateson added.

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Australia

VGCCC Concludes Underage Gambling Investigation

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“Nothing can make up for the harm a Melbourne family experienced as a result of the failure by multiple operators to prevent a young teen from gambling between May 2022 and October 2023,” Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM said.

Her comment followed the conclusion of VGCCC’s most comprehensive action to date for underage gambling – more than 2000 hours of investigations, 14 prosecutions against 10 entities, 98 charges and fines totalling half-a-million dollars.

The VGCCC investigation was prompted by concerns reported by the mother of the then 17-year-old, whose neurodiversity, in addition to his age, put him at high risk of gambling harm.

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Ms Kimmitt said: “I can only imagine how difficult it was for the mother to come to us and I commend her for doing so. I hope the outcomes and conclusion of these proceedings bring her some comfort, following the significant trauma she and her family have gone through.

“When industry is not diligent about complying with its legal and social obligations, the consequences for everyday Victorians can be serious and long lasting, which is why the VGCCC is determined to hold operators to account.”

The final case was heard before the Magistrates’ Court of Victoria on Thursday 13 February. Correct Bet Pty Ltd, the operator of the Coburg TAB outlet, pleaded guilty to two charges and was fined $3000 without conviction and ordered to pay VGCCC costs of $5500.

Magistrate Hodgson considered that Correct Bet had no prior convictions in 14 years of operation across multiple venues and had implemented additional measures, including staff training, mobile phone policy changes, and regular CCTV monitoring.

Separately, on Friday 7 February, Supreme Edinburgh Pty Ltd, trading as the Duke of Edinburgh in Brunswick, pleaded guilty in the Magistrates’ Court to three counts of breaching the Gambling Regulation Act 2003. The operator was fined $2500 and ordered to pay VGCCC costs of $4950.

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Ms Kimmitt said: “It is a venue’s responsibility to ensure minors do not access a designated gambling area, let alone gamble, no matter how determined or convincing a child might be.

“We welcome the outcome of these court hearings, which bring to a close all prosecutions involving this family. Unfortunately, the family’s recovery from this experience is likely to take a lot longer and leave a painful scar.”

The post VGCCC Concludes Underage Gambling Investigation appeared first on European Gaming Industry News.

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Australia

Network 10 Breaches Gambling Ad Rules During Formula 1 Grand Prix Broadcast

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Network Ten has been found in breach of broadcasting rules after airing gambling advertisements during the australian Formula 1 Grand Prix in March 2024.

An Australian Communications and Media Authority (ACMA) investigation found four gambling ads were aired at prohibited times during a broadcast of the first practice round of the Grand Prix.

Under the Commercial TV Code of Practice (the Code), gambling promotions cannot be shown during broadcasts of sporting events between 5am and 8.30pm, including the five minutes before and after the event.

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Authority member Carolyn Lidgerwood said the rules around gambling advertisements on TV are there to protect the community from gambling related harms.

“Broadcasters should have strict controls in place to ensure compliance with the restrictions on gambling ads during sporting events,” Ms Lidgerwood said.

Practice rounds and qualifying rounds for motorsports are subject to the same restrictions on gambling advertising as the main event itself.

This is the first breach by Network 10 of the gambling advertising rules in the Code. During the investigation, Network 10 submitted that the broadcasts occurred due to human error.

Following the ACMA’s breach finding, Network 10 voluntarily improved the planning, checks and balances it has in place for ad scheduling and has, at the ACMA’s request, agreed to review its processes to introduce additional quality controls.

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Network 10 will also train staff to avoid similar issues in the future and will provide a written progress report to the ACMA.

In a separate investigation in 2024, the ACMA found that streaming service 10 Play, provided by Network 10, breached online gambling advertising rules during two live-streamed sports events.

“The ACMA will closely monitor these actions and Network Ten’s compliance with the broadcasting and online gambling advertising rules,” Ms Lidgerwood said.

The post Network 10 Breaches Gambling Ad Rules During Formula 1 Grand Prix Broadcast appeared first on European Gaming Industry News.

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Picklebet Becomes Official Wagering Partner of Penrith Panthers

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Picklebet, an Australian-owned and operated digital wagering platform, has become the Official Wagering Partner of Penrith Panthers.

Damon Oudejans, CMO and Co-Founder of Picklebet, said: “We are incredibly excited to partner with the Penrith Panthers, a club that has set the benchmark for excellence both on and off the field.

“Picklebet and the Panthers share a passion for innovation, and a commitment to delivering premium experiences to fans. This partnership is more than just branding—it’s about creating engaging, digital-first activations that bring supporters closer to the game they love.”

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To kick-start the partnership Picklebet is giving away the ultimate giveaway for two people for the opening game of the season in Las Vegas. The social competition ends at 12 pm AEDT on Monday 24 February and includes flights to Las Vegas, three nights’ accommodation, $5000 spending money and tickets to see the Panthers headline the Rugby League action at Allegiant Stadium in Las Vegas.

Matt Cameron, CEO of Panthers Rugby League, said: “This partnership is a fantastic alignment between two brands that embrace innovation and excellence.

“Picklebet’s cutting-edge approach to digital wagering, particularly its focus on next-gen sports engagement, is an exciting fit for our club. We look forward to working together to create incredible experiences for Panthers fans over the next four years.”

As part of the partnership, Picklebet branding will be feature across Panthers’ assets, including digital platforms, in-stadium activations and exclusive fan engagement initiatives. Picklebet will also leverage its expertise in digital and social engagement to introduce new ways for fans to interact with the game and their team like never before.

The post Picklebet Becomes Official Wagering Partner of Penrith Panthers appeared first on European Gaming Industry News.

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