Doors to manual: Entain chief resigns
Nygaard-Andersen resignation, Brazilian sports betting, by the numbers – ESPN Bet, Hard Rock expands into social +More
Jette Nygaard-Andersen steps down from Entain with immediate effect.
Brazilian Senate votes yes on sports betting but nixes iCasino.
ESPN Bet’s first revenue numbers are in – and the analysts like what they see.
Hard Rock expands into social gaming via WGames acquisition.
All my bags are packed, I'm ready to go.
Entain exit
Jette Nygaard-Andersen has resigned as CEO at Entain with immediate effect.
Jette tu, brutal: The under pressure CEO at Entain informed the company she wished to stand down from the top job with immediate effect. Non-executive director Stella David is to replace her on an interim basis.
The resignation comes a matter of weeks after the company agreed a deferred prosecution agreement with the UK’s tax authorities with regard to Bribery Act allegations over its previous activities in Turkey.
Do it clean: Nygaard-Andersen said that agreement “provides a clean inflection point” for the company and herself. “The past three years have been rewarding and challenging in equal measure,” she added.
“The group is now safe, stable and sustainable and I believe that this is the right time to move on to other business and career opportunities.”
Barry Gibson, who as chair is also currently under the microscope, said Nygaard-Abndersen had “executed a fundamental strategic shift towards regulated or regulating markets, overhauled its governance, transformed its operations and significantly improved its customer offering”.
Departure lounge: The move comes after what one source suggested was a “brutal, complete assassination” in the FT last week. As E+M wrote on Monday, the report depicted a company that had lost its way, was under pressure from activist investors and which faced allegations of spiraling corporate costs including the use by management of private jets.
Trebles all round: Stella David is likely the most temporary of replacements, having previously been CEO of William Grant & Sons after more than 15 years with Bacardi. She also currently holds a non-executive directorship with Domino’s Pizza.
Analysts at Jefferies said they expected a “rigorous process” to find a new CEO, given the last two CEO appointments were internal candidates.
They noted the current CFO Rob Wood is a prospective candidate.
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Hard Rock Games: Social gaming is next on the agenda for Hard Rock Digital after it announced the creation of Hard Rock Games, which will offer free-to-play online and mobile games. The unit is to be created via the company’s recent WGames acquisition.
The social gaming side will be run by Daniel Kajouie, who founded the Toronto-based WGames and will serve as managing director of Hard Rock Games.
WGames’ suite of games includes Jackpot Planet and Neverland Casino.
What we’re reading: Meanwhile, at at event held yesterday to officially mark the “new era of Seminole gaming”, Hard Rock International chair JIm Allen told Gaming Today that when it comes to DFS, “if DraftKings and FanDuel continue to do what they’re doing, we’re fine with that”, but “what Betr and Underdog Fantasy are doing is flat out illegal”.
Ace: Sportradar has launched ATP Service+, including augmented streaming of all ATP and ATP Challenger games via its new partnership with the premier tennis rights organization and its Tennis Data Innovations offshoot.
The live stream will now feature immersive 3D animations, expanded in-play betting markets, short-form video highlights for registered users and an extensive range of betting products.
Red carpet: The Fontainebleau ribbon-cutting ceremony in Las Vegas takes place later today.
Go nuts: Evolution’s Crazy Time live game show has made its debut in the US in New Jersey. The show launched globally ex-US in 2020.
Brazilian sports-betting
The Brazilian Senate has approved a 12% tax on sports betting but nixes iCasino.
Drove my chevy to the levy: By a vote of 37 in favor versus 27 against, the Brazilian Senate finally approved the bill to regulate the country’s sports-betting market. The measure as approved by the Senate reduces the tax on profits of companies in this sector from 18% to 12%, but it has excluded the provision that would have also allowed iCasino.
Since the bill originated in the Chamber of Deputies, it will have to return to the lower house for final approval and ultimately be promulgated by the executive.
Cutting edge: In more good news on tax, prizes received by players will be subject to a 15% income tax, rather than the 30% originally proposed by the government. Individuals with total monthly incomes of up to $420 are exempt from this levy.
However, the bill does not include other types of online gambling and games of chance, and the 12% tax rate is specifically for companies that operate bets on real sporting events.
The bill would also require betting companies to purchase a BR30m ($6m) license to operate in the country.
According to another bill sent to Congress by the Executive in July, this industry generates around $20bn annually. The revenue generated, according to the plans of President Luiz Inácio Lula's government, will be allocated to public security, basic education, sports clubs and social initiatives.
See LosIngresos+Mas tomorrow for more details.
By the numbers – ESPN Bet
Hail, Maryland: The first actual revenue numbers for ESPN Bet were received positively by the analysts, after data from the partial launch in November showed it achieving mid-single-digit handle market shares and slightly higher share by GGR.
In Maryland, ESPN Bet garnered a handle of $33.3m or 6.2% share, while GGR came in at $4.2m or 10% share.
Promos were $13m or 39% of total handle, which implies a negative NGR of $8.8m.
In Iowa, meanwhile, ESPN Bet saw handle hit $15.3m or 5.8% share, while GGR was $1.8m or 14% share.
In Indiana, it generated 5.5% handle share for the month.
Well received: The team at Wells Fargo said they viewed the Iowa and Maryland outcomes as a “fairly encouraging launch/partial month”, though they acknowledged promotions “likely played a role”. Deutsche Bank said the data points were “encouraging”. JMP noted Penn’s shares rose significantly on the news of the granular data
👀 Penn shares see a 7% leap on Monday
Download data: ESPN Bet continued to lead the downloads chart at 31% vs. DraftKings’ 21% and FanDuel’s 20%. JMP noted that, according to management, ESPN Bet is performing better in newly launched states, including Massachusetts, Ohio, Kansas and Maryland compared to “more entrenched and mature states”.
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Analyst takes
Better Collective: Jefferies has initiated on the super-affiliate with a Buy rating, saying its recommendation comes at an “interesting time” as the company transitions towards a more revenue-based business model.
Earnings in brief
Groupe Partouche: FY23 revenue came in at €701m, up 10% YoY, while Q4 revenue was up 1.7% to €182m. For the financial year, revenue in France rose 9.7% to €631m, while international revenues rose 15% to €71m.
The company said the “quality” of the performance across the group was demonstrated against a backdrop of an inflationary and rising interest rate environment.
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Calendar
Jan 18: Flutter trading statement
Feb 6-8: ICE London
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