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NeoGames Announces Second Quarter 2021 Results
NeoGames S.A., a technology-driven provider of end-to-end iLottery solutions, announced it’s financial results for the second quarter ended June 30, 2021.
Moti Malul, Chief Executive Officer of NeoGames, said: “We are increasingly encouraged by the performance and development of the various markets and customers we support, notwithstanding expected seasonal impacts during the quarter. In particular, this quarter has seen continued strong growth in Alberta, where new gaming verticals were added, as well as further expansion of our games content into new markets and customers with contracts in Ukraine and Italy, which prove the market leading position of our offering.”
“Our substantial growth and strong performance over the past year gives us confidence that we are well positioned to maintain our position as the premier innovator and provider of iLottery solutions to the global lottery industry. As we continue to prove the effectiveness of our offering in engaging and maintaining players as well as enabling state and local governments to generate more revenue they can deploy for public benefit. We are proud and honored that our achievements are recognized by the industry, demonstrated by our recent win of the EGR B2B Awards as the Best Lottery Supplier for 2021. We are confident that we will continue to be the first choice for both full-service offerings and content relationships as additional jurisdictions see the value iLottery can offer.”
Second Quarter 2021 Financial Highlights
- Revenues were $12.9 million during the second quarter of 2021, compared to $13.0 million during the second quarter of 2020, representing a decrease of 0.6% year-over-year. In addition, the Company’s share of NPI revenues was $8.5 million during the second quarter of 2021, compared to $1.6 million during the second quarter of 2020, representing an increase of 434% year-over-year. The total of revenues and the Company’s share of NPI’s revenues was $21.4 million during the second quarter of 2021 compared to $14.6 million during the second quarter of 2020, representing an increase of 47.0% year-over-year.
- Comprehensive income was $2.8 million, or $0.11 per share, during the second quarter of 2021, compared to comprehensive income of $2.4 million, or $0.11 per share, during the second quarter of 2020.
- Adjusted EBITDA was $8.3 million during the second quarter of 2021, compared to an Adjusted EBITDA of $7.8 million during the second quarter of 2020, representing an increase of 6.6% year-over-year.1
- Network NGR was $187 million during the second quarter of 2021, compared to $112 million during the second quarter of 2020, representing an increase of 67.2% year-over-year.1
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1 Adjusted figures represent non-IFRS information. See “Non-IFRS Financial Measures” and the tables at the end of this release for an explanation of the adjustments and reconciliations to the comparable IFRS numbers.
Second Quarter 2021 Business Highlights
- Performance in Alberta has continued to exceed expectations during the province’s third live quarter. A successful launch of draw games and growth in existing and new players continue to drive the customer.
- Signed contract with Lottomatica in Italy to provide its successful eInstant games portfolio.
- Subsequent to quarter-end, signed contract to enter the Ukrainian market through a deal with Ukrainian National Lottery UNL, illustrating the international appeal of our content.
- Chosen as the 2021 EGR B2B Award winner for Best Lottery Supplier.
- Appointed Christopher G. Shaban, a senior lottery industry professional, as EVP Sales, Marketing and Customer Development.
- Subsequent to quarter end, launched Multi-Game progressive jackpot for eInstants.
Guidance
The Company is raising its fiscal year 2021 Revenue and Share in NPI Revenues Interest Guidance to between $75 million and $79 million, compared to the prior range of between $73 million and $77 million.
Conference Call & Webcast Details
NeoGames will host a live conference call and audio webcast on Thursday, August 12, 2021 at 8:30 a.m. Eastern Time, during which management will discuss the Company’s second quarter results and provide commentary on business performance. A question and answer session will follow the prepared remarks.
The conference call may be accessed by dialing (833) 301-1152 for U.S. domestic callers or (914) 987-7393 for international callers. Once connected with the operator, please provide the conference ID of 8593557.
A live audio webcast of the earnings conference call may be accessed on the Company’s website at ir.neogames.com. The replay of the audio webcast and accompanying presentation will be available on the Company’s investor relations website shortly after the call.
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Duelbits adds Same Game Parlay for soccer player props and World Cup betting
New SGP lets users combine up to 10 same-match selections plus 10 across multiple events on desktop and mobile.
Duelbits has launched Same Game Parlay (SGP), adding a sportsbook feature that lets players combine multiple player and match markets within a single bet slip. The company said the initial rollout is focused on soccer and World Cup betting and is available on desktop and mobile.
The SGP product supports same-match combinations across player props including goals, shots, shots on target, assists, cards, fouls, tackles and goalkeeper saves, alongside match and team markets such as match winner, goals, corners and shots. Duelbits also said users can build parlays across multiple events where SGP markets are available.
Duelbits positioned the launch as a fix for bet combinations being rejected or marked invalid, saying the feature is powered by a specialist player props and statistics provider to reduce rejected selections and streamline odds updates and settlement. At launch, players can include up to 10 selections within a single event and a further 10 selections across multiple events, with plans to expand those limits in future updates.
Jasper Hoekert, Chief Marketing Officer at Duelbits, said: “Same Game Parlays have become one of the most popular sportsbook products globally, particularly as player prop betting continues to grow across major sports. We saw a clear opportunity to improve the experience available to our players by offering significantly more combinations, reducing invalid bet rejections, and creating a smoother betting journey overall.
“This initial launch is focused on soccer and the World Cup, but it’s only the first step. Our long-term vision is to allow customers to combine virtually any market they want across sports, events and player props, with US sports being the main focus for phase 2. We believe there is a significant gap in the crypto sportsbook market for this type of offering, and we’re excited to continue expanding the product over the coming months.”
The post Duelbits adds Same Game Parlay for soccer player props and World Cup betting appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
Austria
Austria Could Force Offshore Operators To Sit Out Market Launch
Debate is raging within the Austrian government about whether to impose a cooling off period and freeze ex-grey market operators out of its upcoming open online casino market, with local operators looking to inflict maximum punishment and legal experts arguing that the proposal would be self-defeating.
Austria is on course for an historic opening of its long monopolized online casino market. Currently, only Casinos Austria, via its brand Win2Day, has the approval of the Austrian government to offer online casino games to the general public.
But for many years, that legal status was ignored by operators based largely out of Malta, who populated a vibrant grey market by leaning on the controversial argument that Austria’s monopoly model is in violation of EU law.
These offshore operators were eventually forced to retreat by a series of high profile court rulings that found Austrian consumers have the right to reclaim any and all losses to an operator without an Austrian licence.
Facing potentially hundreds of millions of euros in compensation claims, grey market providers have largely retreated to Malta, where Bill 55 continues to protect them.
With liberalisation now on the horizon, some forces within the Austrian government and the local gambling industry are insistent that companies which took part in the grey market should not be allowed to simply apply for a licence and wipe the slate clean.
Who’s in favour?
Those lobbying the hardest for a cooling off period are Austrian incumbents.
“One day you’re offering illegal services and the next day you get a license – that’s absurd,” a spokesperson for Casinos Austria told the Kronen Zeitung newspaper.
They are joined by German-headquartered gambling giant Novomatic, which operates a number of land-based venues in Austria under the brand Admiral.
Having sat on the sidelines of the online market for many years, Admiral is incensed by the idea that it could be competing on day one of a new market with operators who did not take the same approach.
The three parties that form Austria’s coalition government are still debating the issues, according to reports.
The only major practical example of a true “cooling off” period occured in the Netherlands, where an 18-month prohibition was in place that prevented many companies from entering the market when it opened in 2021.
At the time, Kindred reported that being forced to sit out market launch had cost it $16.2m a month, wiping out effectively 50 percent of the group’s EBITDA.
Kindred, which has since transformed into FDJ United following an acquisition by the French lottery giant, subsequently regained its strong Dutch position following the end of the cooling off window.
Likely to cool
At least one Austrian legal expert believes that there is a good chance that some form of cooling off, or an equivalent punishment, will be enacted as part of the new law.
“At the moment, it is likely that some form of cooling-off period will be introduced, perhaps by introducing sanctions that apply prior to licensing, but the details are yet to be determined,” said Nicholas Aquilina, a partner at Brandl Talos law firm.
“Whether a cooling-off period will be introduced and how restrictive measures will be will have a substantial impact on the success of the long-overdue opening of Austria’s online gambling market,” he added.
The time pressures referenced by Aquilina relate to the expiry of Win2Day’s exclusive licence, which is set to run out in October 2027. The government intends to establish its new online gambling regime well ahead of that date, so that new licences can be issued in time.
Any attempt to extend Win2Day’s monopoly could run into challenges with EU tender laws and the other highly unpalatable option is to leave the nation in limbo with no legal providers at all.
Complications
Despite how the debate has been framed by some parties, the reality will not be as simple as either allowing ex-grey market offenders into the new Austrian online casino marketplace free of consequence or forcing them to spend time in the sin bin.
There is broad political agreement that any international operator looking to obtain a licence in Austria must pay back taxes owed on its former activity in order to be granted approval.
Operators will also need to settle any outstanding player refund claims, something which could cost companies huge sums and may ultimately keep some of them out of the market for good.
There are thought to be thousands of pending refunds, which operators have largely been refusing to pay while they take refuge behind Malta’s Bill 55.
Against that backdrop, lawyers Christian Rapani and Felix Hohenthanner argue that the penalties for returning to Austria will likely be harsh enough.
“A further exclusion of two to three years on top of that would, in our view, work against the reform’s own central objective. The operators currently holding the largest share of Austrian play are exactly the ones a cooling-off period would shut out. If they cannot offer a licensed product for two to three years, their customers, it is highly likely, will not migrate to the licensed providers,” they told EEGaming.
Ultimately, the two lawyers said, the push for a cooling off period is more about protecting the vested interests in Austria’s casino market than an attempt to keep gamblers safe.
“Our impression is that the proposal is supported essentially only by the land-based operators and by the single provider that already holds a licence in Austria, in other words by those who benefit from keeping new entrants out. We therefore see it less as a genuine player-protection measure than as a last attempt to preserve existing market positions,” they said.
The post Austria Could Force Offshore Operators To Sit Out Market Launch appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
Africa
African iGaming Alliance names SPRIBE a Platinum Supplier Member
The African iGaming Alliance (AiA) has signed a strategic partnership with iGaming supplier SPRIBE, with SPRIBE joining the pan-African industry association as a Platinum Supplier Member.
AiA said the partnership will focus on regulatory engagement, industry research, responsible gaming initiatives, policy advocacy and stakeholder engagement aimed at strengthening regulated gaming markets across African jurisdictions.
According to AiA, the collaboration will also support efforts to promote effective regulation, combat illegal gambling, improve market channelisation and encourage evidence-based policymaking.
Peter Emolemo Kesitilwe, Chief Executive Officer of the African iGaming Alliance (AiA), said:
“SPRIBE’s decision to join the African iGaming Alliance as a Platinum Supplier Member represents a significant endorsement of our vision for a sustainable and well-regulated African gaming industry. As one of the industry’s leading technology innovators, SPRIBE brings valuable expertise, insight, and global experience that will strengthen our efforts to support regulators, governments, operators, and other stakeholders across the continent. We look forward to working closely together to promote responsible gaming, regulatory best practice, and long-term industry sustainability.”
The post African iGaming Alliance names SPRIBE a Platinum Supplier Member appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
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