Industry News

Pollard Banknote Provides Business Update in Response to COVID-19 Uncertainty

Published

4 years ago

April 16, 2020

Reading Time: 4 minutes

Pollard Banknote Limited, like many organizations, has been confronted with an unprecedented challenge in managing the impact of the COVID -19 virus outbreak.

Our focus in all of our operations is maintaining a safe and healthy environment for all of our employees, their families and all of our stakeholders, while continuing to support the business of our customers. We have implemented stringent health protocols in all of our facilities including extensive social distancing protocols, more frequent cleaning and disinfecting, widespread working at home policies and daily health and temperature screening for all staff working at all of our facilities.

Pollard’s business is primarily focused on the sale of instant tickets and ancillary products to government lotteries around the world and the sale of charitable gaming products to charitable gaming organizations in North America. Our products are sold to lotteries and distributors for ultimate sale at various retail establishments.

Lotteries

Pollard’s lottery operations account for approximately 78% of our overall revenue. Currently almost all lotteries have remained operational and are continuing to sell lottery products including instant tickets at retail. The impact of the virus on retail sales of lottery products has varied from jurisdiction to jurisdiction, however on average, over the last few weeks North American lotteries are reporting between 15-20% reductions in retail sales of instant tickets compared to the same periods last year.

All of our lottery production facilities remain open and operational at this time, and all of our staff who can work from home are doing so. Our supply chains remain intact. We have not yet seen a significant reduction in our short-term production schedule as generally we produce instant tickets well in advance of its release at retail by the lotteries. However, to ensure a safe work environment, including maintaining social distancing, we have reduced our staffing and production capacity in our Ypsilanti, Michigan facility. The combined impact of this reduction in capacity and some softening in our orders due to lower retail sales could result in a reduction in our instant ticket revenue of between 10-15% during this period.

Traditionally, sales of instant tickets have shown significant resilience during times of substantial economic downturn and we anticipate a return to the historic sales levels and continued growth when retail markets return to normal.

Our sales earned through our iLottery operations, generated through revenue sharing, has grown noticeably over the past few weeks, as consumers increasingly move their purchases to the internet. However, only a small number of lotteries have developed iLottery portals and as a result, our increased revenue from iLottery will only modestly mitigate reduced sales in other areas of our business.

Pollard has taken a number of steps to minimize our expenditures throughout our lottery business in light of the reduced lottery revenue. This includes reductions in discretionary expenses, postponing capital projects, select temporary staff furloughs in certain areas of the lottery operations and salary reductions for our entire management group. Government programs available to assist employees and businesses are being investigated and reviewed. In addition, our ancillary products operations, including Schafer and Fastrak merchandising operations, are selectively utilizing temporary staff furloughs to help mitigate any reduction in revenue for these businesses. To the extent the economic environment further reduces lottery sales, additional expenditure reduction initiatives will be implemented.

Charitable Gaming

Our charitable gaming products generate approximately 22% of our consolidated revenue and include the sale of pull-tab tickets, bingo paper and the operation of Diamond Game and Oasis branded egaming machines. Sales primarily occur in social settings such as bars, veteran halls and bingo centers across North America. Essentially all jurisdictions have temporarily closed these facilities and as a result, our charitable gaming and egaming revenue has been mostly eliminated. This revenue reduction is expected to continue during the period these outlets are closed. There is no clear indication when jurisdictions may reopen these establishments or when we can expect retail sales of charitable gaming products to return to their pre-existing levels.

Our American Games and International Gamco business units remain operational at this time and continue to produce inventory to help address a significant backlog of orders that had developed due to strong customer demand prior to the closure of the various social settings. This replenishment of our pull-tab and bingo paper inventory levels will allow us to be strongly positioned to meet our customer demand when the retail locations are allowed to reopen.

Pollard is also taking steps across our charitable gaming businesses to minimize our losses during this period. Discretionary expenses have been eliminated and capital expenditure projects postponed. In addition, temporary staff furloughs, workshare programs among employees and salary reductions across management have been implemented throughout our operations. We do not make these decisions lightly and in all cases we are working closely with employees and governments to take advantage of various programs that provide financial support for our staff in these difficult times.

The situation we are all facing is unprecedented and has been changing very quickly. Based on the current impact of the virus on our business, we would estimate that our overall consolidated revenue could be reduced in the 25-30% range compared to the prior year during this period of decreased sales. We have implemented cost reduction strategies to minimize the impact of the revenue reduction, which will evolve as the situation changes.

Pollard has significant financial strength and a number of sources of liquidity to allow us to weather this period of reduced sales. In addition to our expenditure reduction initiatives, our balance sheet is strong with substantial available cash resources and access to additional funding through an undrawn secured senior bank facility that provides considerable readily available liquidity including a large accordion feature. Our working capital levels going into this period were high, providing further liquidity as we collect our receivables. The Pollard family, 67.5% shareholders, remain very committed to our business through their leadership and continued financial backing.

“The situation relating to the COVID-19 virus is changing very rapidly and will undoubtedly continue to do so,” commented Doug Pollard, Co-Chief Executive Officer, Pollard Banknote. “However, the long-term business fundamentals of the lottery and charitable gaming industries remain extremely positive. Our organization is very strong and will be able to withstand this difficult period. When markets start to open up again we expect our products to bounce back very quickly.”

“Having been established over 110 years ago in 1907, Pollard clearly focuses on taking the long-term view through our vision and commitment to our stakeholders. The Pollard family and all of our more than 1,900 dedicated team members remain committed to growing our world class organization and being the partner of choice to our lottery and charitable gaming customers, now and in the future.”

SOURCE Pollard Banknote Limited

Industry News

Meridian Donate: Revolutionizing CSR in the Betting and Gaming Industry

Published

2 hours ago

May 3, 2024

Zoltan Tundik

meridian-donate:-revolutionizing-csr-in-the-betting-and-gaming-industry

Reading Time: 2 minutes

Innovative engagement strategy positions MeridianBet as a leader in CSR within the betting and gaming industry
Optimized brand loyalty as active customer participation in CSR strengthens connection and loyalty
Scalable impact, as the model is designed for expansion and could be adapted to new markets, indicating potential for widespread adoption and growth

Transforming Customers into Environmentalists and Humanitarians

MeridianBet’s pioneering initiative, Meridian Donate, is transforming the betting industry by engaging customers directly in corporate social responsibility (CSR) actions. This unique platform allows customers to actively participate in and fund various environmental, societal and humanitarian projects, setting a new standard for customer engagement and community impact.

Key Features of Meridian Donate:

Direct customer involvement: Customers are not just donors but active participants in CSR decisions
Diverse programs: Offers choices from global afforestation to local humanitarian efforts
Partnerships with renowned organizations: Collaborates with entities like the Red Cross and UNICEF

Expanding Impact: A Year-by-Year Growth

The Meridian Donate platform has seen substantial growth in its scope and impact:

Number of individual campaigns: Grew from 8 in 2021 to 20 in 2023
National markets Integrated: Expanded from 3 in 2021 to 8 in 2023
Direct Beneficiaries: Increased from 43 NGOs in 2021 to 159 in 2023

In 2023 alone, the platform’s expansion into eight markets facilitated 20 customer-funded campaigns, directly benefiting 159 NGOs, up from 122 the previous year.

Continued Commitment to Innovation and Community Involvement

Meridian Donate not only showcases MeridianBet’s dedication to CSR but also redefines the role of digital marketing within the industry. By converting sports bettors into active CSR participants, Meridian Donate enhances customer loyalty and brand value, making it a critical element of MeridianBet’s market strategy.

Recent Successes and Future Outlook

In its recent operation, Meridian Donate has launched an ambitious global afforestation initiative, committing to plant 20,000 seedlings across various regions. This project not only underscores our environmental commitment but also enhances our brand’s community presence. Already, several hundred contributions have been recorded in the platform’s first month, indicating robust customer engagement and support.

The post Meridian Donate: Revolutionizing CSR in the Betting and Gaming Industry appeared first on European Gaming Industry News.

Industry News

Games Global Announces Launch of IPO

Published

2 hours ago

May 3, 2024

Zoltan Tundik

Reading Time: 3 minutes

Games Global Limited (“Games Global”), a leading developer, distributor and marketer of innovative online, casino-style gaming (“iGaming”) content and integrated business-to-business solutions to iGaming operators, announced today that it has launched the roadshow for its initial public offering (“IPO”) of 14,500,000 ordinary shares. The offering consists of 6,000,000 ordinary shares offered by Games Global and 8,500,000 ordinary shares to be sold by Games Global’s existing shareholder (the “Selling Shareholder”). Games Global will not receive any proceeds from the sale of the shares by the Selling Shareholder. The underwriters will have a 30-day option to purchase up to an additional 2,175,000 ordinary shares from the Selling Shareholder at the IPO price, less underwriting discounts and commissions. The IPO price is currently expected to be between $16.00 and $19.00 per share. Games Global has applied to list its ordinary shares on the New York Stock Exchange under the symbol “GGL”.

J.P. Morgan, Jefferies and Macquarie Capital are acting as joint lead book-running managers for the proposed offering. Barclays and BTIG are acting as book-running managers for the proposed offering.

The proposed offering will be made only by means of a prospectus. Copies of the preliminary prospectus relating to the proposed offering, when available, may be obtained from:

J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at [email protected] or [email protected];
Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by phone at (877) 821-7388, or by email at [email protected]; or
Macquarie Capital (USA) Inc., Attention: Equity Syndicate Department, 125 West 55th Street, New York, NY 10019, or by email at [email protected]

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

In any member state of the European Economic Area (the “EEA”) this announcement, and the offering, are only addressed to and directed at persons who are “qualified investors” (“Qualified Investors”) within the meaning of Regulation (EU) 2017/1129 (the “Prospectus Regulation”). In the United Kingdom, this announcement, and the offering, are only addressed to and directed at persons who are “qualified investors” within the meaning of the Prospectus Regulation as it forms part of domestic law in the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”), (ii) are high net worth entities who fall within Article 49(2)(a) to (d) of the Order, or (iii) are persons to whom it may otherwise lawfully be communicated (all such persons being referred to as “relevant persons”).

This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the EEA, by persons who are not Qualified Investors. Any investment or investment activity to which this announcement relates is available only to and will only be engaged with (i) in the United Kingdom, relevant persons, and (ii) in any member state of the EEA, Qualified Investors.

The post Games Global Announces Launch of IPO appeared first on European Gaming Industry News.

Industry News

Genome and Chilli Partners join forces to revolutionize iGaming affiliate payouts

Published

4 hours ago

May 3, 2024

Zoltan Tundik

genome-and-chilli-partners-join-forces-to-revolutionize-igaming-affiliate-payouts

Reading Time: 2 minutes

Leading the charge in the convergence of financial technology and iGaming, Genome, a cutting-edge electronic money institution, is thrilled to announce its strategic partnership with Chilli Partners, a prominent iGaming affiliate program specializing in casino games.

The collaboration marks a pivotal moment in the iGaming industry, bringing together Genome’s expertise in online financial services and Chilli Partners’ prowess in affiliate marketing. The partnership is set to redefine the landscape of affiliate payouts, offering an array of benefits to both affiliates and the iGaming community at large.

“We are excited to embark on this journey with Chilli Partners. By combining our financial expertise with their influential position in the iGaming affiliate space, we aim to set new standards for efficiency and innovation in affiliate payouts,” – noted Genome’s CEO Daumantas Barauskas.

For one, the partnership offers efficient payouts. Affiliates can now enjoy expedited and secure payouts through Genome’s state-of-the-art financial infrastructure, enhancing their overall experience and satisfaction.

It also provides global reach for Chilli Partners, as it can extend its reach to affiliates worldwide with Genome’s international payment capabilities. This allows Chilli Partners to foster a more diverse and expansive network.

The partnership streamlines financial workflows, ensuring seamless transactions and reducing administrative overhead for Chilli Partners, allowing them to focus on delivering top-notch affiliate services.

Genome is all about innovation in payments and online financial services. This approach brings new possibilities for payment options, providing flexibility and convenience for affiliates participating in the Chilli Partners program.

Lastly, the collaboration prioritizes compliance and risk management, assuring affiliates of secure and compliant transactions in accordance with industry regulations.

“This partnership aligns perfectly with our commitment to providing the best possible experience for our affiliates. Genome’s advanced financial services will play a crucial role in elevating our affiliate program to new heights”, – added Clayton Zammit Cesare, Head of Affiliates at Chilli Partners.

As the iGaming industry continues to evolve, Genome and Chilli Partners stand united in their dedication to driving positive change, innovation, and reliability. The partnership is poised to create a ripple effect, positively impacting the entire iGaming ecosystem.

About Genome

Genome is a leading EMI that provides innovative financial services, including batch payouts, SWIFT, and SEPA transfers. With a focus on efficiency and compliance, Genome empowers businesses across various industries, including iGaming, to streamline financial operations and enhance user experiences.

For more information, please visit https://genome.eu/

About Chilli Partners

Chilli Partners is a prominent iGaming affiliate program specializing in casino games. With a commitment to excellence, Chilli Partners connects affiliates with top-tier iGaming brands, offering a lucrative partnership that includes competitive commission structures and tailored support.

For more information, please visit https://chillipartners.com/

The post Genome and Chilli Partners join forces to revolutionize iGaming affiliate payouts appeared first on European Gaming Industry News.