This Week's Sports Betting Update

One big story?

LeoVegas board members recommend takeover bid from MGM Resorts

Shareholders of LeoVegas have voted to recommend a proposed $607 million takeover bid from US giant MGM Resorts. Within hours of LeoVegas revealing that its Q1 2022 revenue was up 2% year-on-year, its board outlined the strategic benefits of an acquisition by MGM.

Gustaf Hagman, CEO of?LeoVegas, spoke of the industrial logic in MGM Resorts being able to turbocharge the LeoVegas brand as a scaled global online gaming business.

In addition, LeoVegas chair, Per Norman, believes the acquisition would give the brand an advantage in overcoming prospective regulatory challenges in the Dutch and German iGaming markets.

Norman acknowledged the consolidation that’s taking place elsewhere within the sector and admitted that size will matter even more in the coming years to become a leading online gaming company.

Click here to get more on the thoughts of Hagman and Norman and discover LeoVegas’s future relationship with its current sportsbook supplier, Kambi.

What you need to know

Commercial

• ???? Spotlight Sports Group has confirmed a new long-term strategic partnership with North American sports and entertainment platform Yardbarker. The Playmaker Capital Inc-owned brand will feature turnkey premium horseracing content supplied by Spotlight Sports Group tailored for Yardbarker’s horseracing fans. More
• ???? Flutter Entertainment posted a 6% year-on-year rise in its Q1 2022 revenue, rising to ￡1.57 billion. The growth was largely attributed to its US sportsbook brand FanDuel, which offset some regulatory-influenced declines in the UK and Ireland. In Australia, revenue grew 8% year-on-year, due largely to a solid 11% margin. More
• ???? Mohegan Gaming and Entertainment’s PlayFallsview brand is set to launch its inaugural online sportsbook in the newly regulated Ontario market. Mohegan has confirmed a technology partnership with Kambi, which has committed to powering its online and mobile sports betting platforms. More
• ???? Online sportsbook Betsul has confirmed a new partnership with Genius Sports to take its sports betting capabilities to the next level in the Brazilian market. Under the terms of the deal, Genius Sports will supply sports betting data, technology and broadcast solutions. More
• ???? Global B2B iGaming organisation Aspire Global has posted a 32% year-on-year rise in Q1 2022 revenues, as well as a 19% increase in its EBITDA. CEO, Tsachi Maimon, described the figures as strong business momentum ahead of a pending merger with NeoGames. More

Regulation

The Brazilian Secretariat of Evaluation, Planning, Energy and Lottery (SECAP) has finalised its regulations for sports betting nationwide, with operators already active in the country tasked with compliance within the next six months. Five-year licence fees of $4.4m will be charged, with SECAP putting no ceiling on the number of licences issued. More

Technology

Parimatch Tech has launched a new European hub in the Czech capital city of Prague. The new?base will underpin the brand’s global expansion efforts, creating a new research and development centre to foster continued innovation. The base will operate?in tandem with its key R&D hub in Ukraine, which has been heavily affected by the ongoing war with Russia. More

People news

William Hill’s safer gambling head lured to DAZN BET

DAZN BET has strengthened its senior management team with the appointment of Gemma Burge as its head of safer gambling.

Burge, an industry veteran in safer gambling and risk management, boasts 15 years of experience and arrives from a similar position at William Hill.

Burge will be located at DAZN BET’s Gibraltar base, helping the OTT sports streaming brand expand its scope into sports wagering.

Click here to get the thoughts of Gemma Burge on her new position with DAZN BET as it embarks on its new venture.

This week's talking point

Kindred Group profits hit by ‘reluctant’ customers over affordability checks

Affordability checks are likely to be at the heart of the UK government’s impending white paper into the Gambling Act 2005, which is set to overhaul the legislation and compliance of the UK gambling industry. However, some operators are already feeling the pinch from such interventions.

Kindred Group, the parent company of Unibet, saw Q1 2022 revenues fall 30% year-on-year to ￡246.7m. Although its withdrawal from the Dutch gambling market has been largely attributed to this decline, the firm says recent changes made to affordability processes have also played their part.

Henrik Tj?rnstr?m, CEO of Kindred Group, pointed to the affordability challenges escalating among its high-net-worth segment of customers, many of whom are reluctant to offer the documents required to clear them from affordability checks.

Tj?rnstr?m says that Kindred’s brands are no longer able to accept that kind of business if it wishes to remain compliant with regulated markets.

Click here to discover why Henrik Tj?rnstr?m believes affordability measures are necessary to drive sustainable, long-term revenues.

This week's insight

Fifa World Cup 2022 provides a huge opportunity for operators to grow customer loyalty with an improved content offering

It’s just under 200 days until the first winter Fifa World Cup commences in Qatar. The 2022 Fifa World Cup presents a host of opportunities for sportsbooks to engage with new and existing customers in the build-up to what’s expected to be an action-packed, condensed tournament.

Daniel Smith, head of UK and Ireland sales, Spotlight Sports Group, has reinforced the importance of integrated expert content for sportsbooks before and during major tournaments such as the World Cup.

Customer retention is an increasingly important battle for UK-licensed sportsbooks, where the market is ultimately the most competitive in the world, according to Smith. He believes there is a clear appetite for sports betting content and insight from customers that can help to drive bettor engagement and revenues for operators.

?Smith anticipates Spotlight Sports Group’s Superfeed product gaining momentum this year ahead of the World Cup, with recent independent research showcasing a 20% rise?in bettor engagement from Superfeed’s contextual content.

Smith says Superfeed’s content engine is a blend of hand-crafted editorial with tech expertise to deliver a ‘Verdict’ on 50,000 live sports events. Each of which is proven to drive betting turnover for operators.

Click here to discover more on the trends for on-site and off-site integration surrounding uniformed and personalised sports betting content ahead of major sporting events such as the 2022 Fifa World Cup.

Sports betting and publishers

Sports betting is the next growth vehicle for publishers in North America

Spotlight Sports Group has released a new white paper detailing the sports betting opportunity for publishers across North America. The paper investigates the size of the market, the revenue models available and the changing behaviours of sports fans.?

Outlining the keys to success, the white paper also discusses Racing Post's successful journey from a traditional digital publisher to super affiliate.

Click here to download the full white paper.?

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