Something for the weekend - 10 May 2024

It’s a scorching 26 degrees in London today, which is officially hotter than Malta. Who needs the Mediterranean when you’ve got the Thames, eh? But being British (and impervious to the weather), we won’t let a bit of sun get in the way of rounding up the week’s best news, data and analysis!?

As Q1 earnings continue in full swing, we’ve seen big news coming from GiG, Genius Sports and OpenBet-owners Endeavor as well as Wynn, Super Group, Catena Media and Light & Wonder. Elsewhere, FanDuel has launched its own TV channel,?DraftKings has made a big AI move with its acquisition of Sports IQ Analytics, and our Asia editor Muhammad Cohen has filed a fantastic two-part series on Thailand.

We’ll get back to that, and more, once we catch you up with what’s caught the Diary’s eye this week.?

iGB Diary: Sky Vegas soaks up the Caribbean and Paddy gets rumbled

Happy Friday iGamers! This week the Diary kicks back on a lounger and practises its best steely-eyed stare, then dons its nattiest fly-on-the-wall outfit and hotfoots it to Dublin.

Sky Vegas soaks up the Caribbean?

In today’s multimedia world, it can be hard for producers to think of new and innovative ways to keep TV audiences entertained. It certainly doesn’t stop them trying, though. Especially when they’ve got Sky Vegas on their side.?

Perhaps sharing the Diary’s view that the likes of Britain’s Got Talent and Dancing on Ice are at least a decade past their sell-by date, UK TV has a new smoke-and-mirrors show which they hope will keep viewers on the edge of their sofas. In true gambling style, too, the show will be sponsored by Sky Vegas.

The Fortune Hotel, set to fling open its doors later this month, will pit pairs of contestants against each other in what has been described as a “high-stakes bluffing game”.

The venue? A Caribbean five-star resort. Well, it’s alright for some, the Diary supposes…

While the basking sun and the pressure of having to lie to fellow contestants could make it a sweaty affair, the prize for the best poker face will be a cool ￡250,000. And for the rest? A one-way ticket back to the freezing mundanity of everyday life.

In the press release, a spokesperson for Sky Vegas claims the Fortune Hotel could be the “next big TV hit”. After all, nothing says gambling like being kicked out of a super-luxe Caribbean hotel.?

Paddy gets rumbled?

Ah, social media, that wonderful place where the world is brought to you through an Instagram-filtered lens and what is now (the Diary believes) a limit of 4,000 characters per post.?

Enter Paddy Power, which is most definitely not the brand behind a new network of social media accounts – all cleverly disguised as belonging to run-of-the-mill everyday Joes – designed to attract football punters.?

Our social media tale (which has nothing to do with Paddy Power) features two such accounts. The first, @AndyRobsonTips, is known for posting regular pictures of their beans on toast for dinner, as well as selective football tips. An impression of an individual who likes to “bet for fun”, apparently.?

The second, @BoringMilner, is named after granite-jawed football everyman James Milner. A man famous for irritating teammates with dull comments and observations.?

Interesting, we hear you say. Both accounts, which are definitely nothing to do with Paddy Power, link back to Fanwave Digital, a social media marketing business.?

But the plot thickens. It seems @AndyRobsonTips has a penchant for linking bets to Paddy Power and no other bookmaker. Must be a big fan, then. Definitely not an affiliate masquerading as an everyday Joe ?who “bets for entertainment”.

Well, that veneer of innocence was rumbled this week when some sleuthing by the Guardian linked both accounts to Fanwave Digital AND Paddy Power.?According to the Guardian, Fanwave Digital is (allegedly) paid a hefty sum to drive traffic EXCLUSIVELY back to Paddy Power’s site using these two accounts.?

Even more coincidentally, any connections on social media between the accounts were then scrubbed from the internet once the story broke.?

The Diary can’t imagine why. Oh well, Paddy, guess you’ve been rumbled.?

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This week on iGB

Anyway, that’s enough fun! Back to the scintillating world of earnings reports. Wynn got things started this week with CEO Craig Billings talking up a record quarter with exciting plans for New York, Thailand and the United Arab Emirates (UAE). Company revenue amounted to $1.86bn (￡1.49bn/€1.73bn), up 30.8% from last year’s total. That money’s going to be reinvested tidily, with the operator also releasing never-seen-before pics of the Wynn Al Marjan Island, which is set to open to the public in early 2027. The resort, located in the Emirate of Ras Al Khaimah, is set to cost approximately $3.9bn. Quite the princely sum.?

Gaming giant Light and Wonder was next on the list, posting a 12.8% year-on-year increase in revenue to $756m in Q1 after reporting growth in each of its core business segments. The first quarter also represented the 12th consecutive quarter of year-on-year revenue growth for Light & Wonder. In addition, Q1 was the sixth straight quarter of double-digit revenue growth across all lines of business.

“With our unmatched market position and cross-platform capabilities, Light & Wonder has created a compelling value proposition,” president and CEO Matt Wilson said. The question now is where the company goes next. As we posited earlier in the week, some fresh M&A might be what’s needed to keep that growth going. With the company’s strategic investment in no-code automation platform Flows earlier in Q1, it might just be the direction it’s taking.?

Super Group, owners of Betway, is certainly thinking along those lines, with news that it will be acquiring its own platform in its Q1 earnings announcement, where it reported revenues of €379.3m (￡326.7m/$407.6m), its highest ever in a first quarter. Super Group attributed the rise in revenue to growth in Africa and North America.?

Moving on, and as we quicken the pace, fast-growing GiG also had plenty of reasons to be happy, with a 27.5% jump in revenue year-on-year, reaching a record €36.2m (￡31.1m/$39.0m) in Q1. Fellow media giant Catena Media, however, was at the other end of the spectrum, with Q1 revenue almost halving year-on-year to €16.0m (￡13.7m/$17.2m).

On to the others, and first up is?Genius Sports, with the company upping its 2024 annual estimates as well as beating its early 2024 outlook. The provider now expects group revenue to hit $500m, while adjusted EBITDA will be $82m. This compares to initial estimates of $480m and $75m. In total, Q1 revenue was up 23.1% on the first quarter of 2023 and 2.5% greater than prior estimates.

Last but not least we head over to Endeavor, which reported a?surprising 10.1% year-on-year drop in sports data and technology revenue to $90.7m (￡72.5m/€84.2m) in Q1. The group’s Sports Data and Technology business includes OpenBet, acquired in September 2022 for $800.0m. However, the loss of certain data rights at IMG Arena in Q1 led to a drop in revenue within the segment. Incidentally, Q1 also saw Endeavor announce it was to integrate OpenBet and IMG Arena, which it also owns, under the OpenBet banner. Also part of this business is Leap Gaming, which IMG Arena acquired last April and won media rights to 85 of the Confederation of African Football’s territories in December. In terms of adjusted EBITDA for the segment, this slipped to a loss of $9.5m in Q1. This is in contrast to the $4.5m positive figure reported in the same period last year.?

Had enough of earnings reports? Don’t worry, we’ve got you covered. It wouldn’t be a weekly roundup without news from DraftKings and FanDuel.?

The former, DraftKings, excitedly announced its acquisition of Sports IQ Analytics, a business that uses artificial intelligence and machine learning to provide software solutions to the online sports betting market. Full details of the agreement have not been disclosed, with the acquisition having only been confirmed on LinkedIn by Sports IQ CEO Omer Dor. DraftKings has yet to comment on the news. Certainly, it’ll be one to watch, given that Vancouver-based Sports IQ has a heavy focus on AI and in-play betting.?

FanDuel, of course, couldn’t be outdone with that. So, it launched its own TV channel. Set to be called FanDuel TV Extra, the free streaming channel will be available through streaming platforms such as Pluto TV and the Roku Channel. It’s also accessible through FanDuel’s over-the-top streaming platform FanDuel TV+.

Before we head off, we’ll leave you with some weekend reading in the form of a compelling two-part feature from our stellar Asia editor, Muhammad Cohen. In light of Thailand’s imminent launch of casino regulation, the nation is set to greenlight up to 10 integrated resorts across the country. With a population of more than 60 million, as well as being temporary home to 40 million annual tourists, it’s easy to see why Las Vegas Sands, Hard Rock Digital and Wynn are all ready to get in on the action. Make sure to give part 1 and part 2 a read, they’ll give you everything you need to know on what might just be Southeast Asia’s most exciting new growth opportunity.?

That’s all for this week. We’ll be sure to be back Monday with the industry’s freshest news, data and analysis!