Latest News

Buzz Bingo to Restructure Retail Portfolio

Published

4 years ago

July 15, 2020

Reading Time: 3 minutes

Buzz Bingo today announces a proposal to restructure its retail estate through the implementation of a company voluntary arrangement (‘CVA’). This follows a period of productive consultation with Buzz Bingo’s various stakeholders, including its landlords, aimed at securing a sustainable long-term future for the business following the outbreak of Covid-19 and resultant lockdown.

Under the proposed terms of the CVA, while the majority of clubs (91) will continue to trade, 26 clubs will close permanently due to what the company expects will be an unsustainable operating environment for the foreseeable future.

Across the rest of the portfolio, Buzz Bingo has been engaged in constructive dialogue with landlords to better align the rents of certain clubs relative to forecast trading. Regrettably, the proposed CVA will potentially impact 573 of Buzz’s c.3400 colleagues across the business, whom Buzz Bingo is committed to supporting at this difficult time.

The challenges facing businesses at this unprecedented time of lockdown due to COVID-19 are well understood. Like many others in the leisure and entertainment sector, Buzz Bingo was forced to close all its clubs across the UK, which have remained closed since Saturday 21 March. It put immediate measures in place: minimising costs where possible, reducing senior management pay and making use of the Government’s furlough scheme for the vast majority of employees.

Despite this, Buzz Bingo’s daily operations and its ability to generate revenues from its retail club portfolio has been severely impacted.

While Buzz Bingo intends to commence the reopening of its clubs from 6 August, it expects that it will take time for footfall to return to pre Covid-19 levels due to social distancing measures and customer confidence to socialise indoors taking time to rebuild, particularly among Buzz Bingo’s customer group.

The management believe the proposed CVA provides the best possible outcome for all of Buzz Bingo’s stakeholders as it looks to secure a sustainable long-term future for the business and its remaining c.2800 employees.

Buzz Bingo’s owner, Caledonia Investments, has indicated its willingness to provide an additional £22m of equity capital (in addition to the £5m that it invested in Buzz Bingo in May, 2020) once the CVA becomes effective. The new equity capital will be augmented with an additional £10m of debt provided by Buzz Bingo’s existing lender.

Chris Matthews, Chief Executive, Buzz Bingo commented:

“The ongoing pandemic has had far-reaching consequences for the entire leisure and hospitality sector and an immediate and significant impact on our business.

Following a thorough review of our options, the proposed CVA will restructure our retail portfolio to ensure we are well positioned for a return to growth, while adapting to the ongoing, challenging environment as we start to reopen the majority of our clubs.

Our lenders are supporting our plans and our owners, Caledonia will be investing into the new structure to further strengthen our future business.

The restructure will, very sadly, impact a number of our colleagues and my priority is to support all those affected and keep them fully informed as we continue with this process. I would like to thank every single one of our colleagues for their continued understanding and commitment over this period.”

Melanie Leech, Chief Executive, British Property Federation (BPF) comments:

“These situations are never easy, particularly now for the retail, hospitality and leisure businesses on our high streets at the sharp end of the Covid-19 pandemic. Property owners, however, need to take into consideration the impact on their investors, including the millions of people whose savings and pensions are invested in commercial property, as they vote on any CVA proposal.

Buzz Group and AlixPartners engaged with the BPF before launching this CVA proposal. This has provided us an opportunity to improve understanding of property owners’ interests and concerns, but ultimately it will be for individual property owners to decide how they will vote on the CVA.”

Buzz Bingo will seek creditor approval of the CVA Proposal which is due on 3^rd August. The online business will continue to trade as usual during this period.

Australia

AUSTRAC and SkyCity agree to proposed $67 million penalty

Published

16 mins ago

May 20, 2024

George Miller

austrac-and-skycity-agree-to-proposed-$67-million-penalty

Reading Time: < 1 minute

SkyCity Adelaide Pty Ltd (SkyCity) and AUSTRAC have filed joint submissions with the Federal Court of Australia, proposing a $67 million penalty over the casino’s contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

A court hearing has been set down for 7 June 2024, at which Justice Lee will consider the parties’ proposed settlement.

While AUSTRAC and SkyCity agree that a $67 million penalty is appropriate in all the circumstances, it is a matter for the court to determine the appropriate penalty.

In reaching this agreement, SkyCity has admitted that it operated in contravention of the AML/CTF Act, including that:

its AML/CTF Programs did not meet the requirements of the AML/CTF Act and AML/CTF Rules, in contravention of section 81.
it did not carry out appropriate ongoing customer due diligence with respect to certain higher risk customers and customers transacting through higher risk channels, in contravention of section 36.

“AUSTRAC took this action out of concern that SkyCity’s conduct meant that a range of high-risk practices, behaviours and customer relationships were allowed to continue unchecked for many years,” AUSTRAC’s Chief Executive Officer, Brendan Thomas said.

Mr Thomas said the action serves as an important reminder to casinos and the gaming sector to take their AML/CTF obligations seriously and be vigilant to money laundering and terrorism financing risks.

As the matter is before the court for determination, AUSTRAC is unable to comment further on the proceedings.

The post AUSTRAC and SkyCity agree to proposed $67 million penalty appeared first on European Gaming Industry News.

Latest News

Dench eGaming Solutions strikes deal with REEVO!

Published

16 mins ago

May 20, 2024

George Miller

dench-egaming-solutions-strikes-deal-with-reevo!

Reading Time: < 1 minute

REEVO, a cutting-edge provider and aggregator of online casino games, strike a deal with Dench eGaming Solutions, the innovative supplier of the online gaming industry to enhance its casino offering.

The distribution deal shall see REEVO providing entire portfolio of certified games for Bulgaria including Curacao, MGA and Romania certified titles. All of REEVO’s game titles will be available in a mobile HTML5 version across all Dench operators.

Dobromir Mitev CEO of Dench eGaming Solutions, said: “REEVO is a first-class casino slot provider and we are very excited to form this partnership ahead of the launch of a number of European facing operators which will significantly benefit from their product proposition.”

Petra Maria Poola, Head of Sales in REEVO, added: “The decision to partner with Dench was easy to make for us and following an impeccable integration effort, our games are now available to their customers via Dench Core. Delivering our content and promoting it via their fully automated instrument Giselle is what we are definitely looking forward to as this will clearly open up fantastic opportunities for both REEVO and Dench.”

The post Dench eGaming Solutions strikes deal with REEVO! appeared first on European Gaming Industry News.

Affiliate Industry

Better Collective Acquires AceOdds

Published

16 mins ago

May 20, 2024

Niji Narayan

Reading Time: 2 minutes

In a strategic move to strengthen its foothold in the UK, digital sports media group Better Collective has acquired sports betting media AceOdds for a total consideration of 42 mEUR implying 4x last twelve months EBITDA.

AceOdds, a versatile multi-language sports betting brand, offers a comprehensive range of betting tools, odds, reviews and streaming schedules through its web and app based platforms. With a robust presence in the UK market, Better Collective’s global reach through local expertise aligns perfectly with AceOdds’s vision of expanding its influence outside the borders of the UK. Following the acquisition, Better Collective upgrades its 2024 full year financial targets.

Ian Bowden, Better Collective’s Senior Director for UK & Ireland, said: “I am thrilled to announce the addition of AceOdds to the Better Collective group. This strategic acquisition brings us a robust owned and operated sports betting media brand in the UK market, poised for global scalability. Aligned perfectly with Better Collective’s overarching strategy of acquiring leading sports media brands across various niches, the AceOdds brand fills a crucial gap by offering a vital sports betting affiliation brand in a pivotal growth market for the Better Collective group, along with an app benefiting from hundreds of thousands installs to further increase the reach we can provide our partners.”

Established in 2008, AceOdds was founded with the aim of providing UK sports enthusiasts with an easy-to-use betting calculator. Over the years, the brand has expanded, offering a well-regarded web platform featuring a range of betting tools, comparison features, live streaming schedules, an odds and parlay calculator, and more. Additionally, AceOdds has introduced a popular app.

The acquisition aligns with Better Collective’s strategy of owning the full range of sports media across key regions, spanning from traditional sportsbook comparison brands to general sports media, social media content creators, podcast producers and beyond.

The post Better Collective Acquires AceOdds appeared first on European Gaming Industry News.