80% of UK Gambling Marketing Spending Now Online

New financial analysis from respected gambling industry specialists Regulus Partners has estimated that the total spend by UK gambling companies on marketing has gone up by 56% since 2014, and has now hit £1.5bn. Most marketing activity is now on the internet, with companies spending five times more online than on television.

The new figures, derived from audited accounts of the top publicly listed operators and other available financial data for private and offshore companies, indicate the areas where gambling companies spent the most money on marketing in 2017:

  • Direct online internet marketing costs – £747m, almost half (48%) of total gambling marketing spend
  • Advertising through marketing ‘affiliates’ – websites, tipsters and publications who earn commission for generating new business for the gambling companies – £301m, nearly one fifth (19%) of total expenditure
  • TV gambling advertising – £234m, just 15% of total gambling marketing spend
  • Social media – £149m, more than tripling over three years, and 10% of total gambling marketing spend
  • Sponsorship – £60m, double the amount spent in 2014 (£30m)

 

Evolution Gaming to Acquire Ezugi

Live casino provider Evolution Gaming has entered into an agreement to acquire the business of Ezugi, a live dealer gaming provider, in an all cash deal with an initial consideration of $12 million and possible additional consideration of a maximum of $6 million.

The acquisition will increase Evolution’s geographic footprint and accelerate growth in key markets. It is expected to add 2-4% to 2019 revenues and be slightly accretive to Evolution earnings per share during 2019.

Evolution’s CEO Martin Carlesund commented: “I am pleased about this agreement. It is a very logical next step for Evolution which will increase our market share in key existing markets, like the US, where Ezugi’s presence and customer base will add to our on-going market expansion as well as add licensees in new markets, such as South Africa.”

Completion of the transaction is planned for early 2019 and is subject to certain closing conditions.

 

Upcoming Events

The following events may be of interest to members of the GiH community.

  • The Responsible Gaming Day 2018: Protecting Consumers in a Digitalised World will take an in-depth look at responsible gaming and consumer protection. The event will be hosted by Dita Charanzova MEP and Miriam Dalli MEP, in partnership with Politico and the European Gaming and Betting Association (EGBA), and take place on 4 December 2018, 09:00 – 12:00, European Parliament, Room PHS 5B001, Brussels.

 

Dutch Land-based Gambling Market Grew 2.4% in 2017

The Dutch land-based gambling market generated €2.53bn in GGR, up 2.4% compared to the previous year, according to the Netherlands Gaming Authority’s annual market scan.

The lottery vertical is the largest sub-market, both in regards to GGR (47%) and number of players. Land-based gaming machines generated 41% of total GGR, followed by casino table games (10%) and land-based sports betting (2%).

Despite its small size, the land-based sports betting market is growing rapidly. Revenues of De Toto – the sole (non-horseracing) licensed betting operator – grew 22% year-on-year in 2017. However, 40.6% of Dutch legal sports betting participants also employ the services of unlicensed betting operators.

The Gaming Authority furthermore notes that the effective tax burden on various games of chance varies wildly: from 29% of GGR on casino games and gaming machines to 19.6% of GGR on lottery games, and a mere 6.1% of GGR on land-based sports betting.

 

Other News

The Netherlands Gaming Authority is warning Dutch consumers of the online pyramid scheme “Geldbloem.”

 

The 27th Master Classics of Poker is currently underway at Holland Casino Amsterdam. The tournament will end on December 1.

 

Former national field hockey player Fatima Moreira de Melo has been inducted into the Dutch Poker Hall of Fame.

 

Holland Casino is looking to hire both a Marketing Intelligence Analyst and Digital Data Analyst.

 

Peter-Paul de Goeij, Managing Director at Lottovate’s Dutch “millennial” charity lottery Raffld, has landed on spot #22 of the 2018-2019 “De Dikke Blauwe Top 100,” the list of the 100 most influential people in the world of donating and social investments in the Netherlands.

 

This year’s Young People and Gambling report, commissioned by the UK Gambling Commission, reveals that gambling participation by 11 to 16 year olds has increased from 12% to 14% in the last twelve months, but remains lower than rates seen prior to 2017.

 

The lottery monopolies from Denmark, France, Norway and Finland have established a joint venture to bolster innovation in online lottery and develop shared liquidity games.

 

Malta-licensed online gambling operators had nearly 800 unfilled positions at the end of last year, primarily due to a lack of qualified applicants.

 

Irish Finance Minister Paschal Donohoe has confirmed a decision to review plans to double the country’s betting tax, after warnings from Irish Bookmakers Association (IBA) that the move would lead to significant job losses.

 

Playtech’s founder Teddy Sagi has sold his remaining stake in the gambling software company he set up 19 years ago by offloading shares worth around $87 million.

 

Denise Coates, the multibillionaire founder and boss of the gambling firm Bet365, paid herself £265m last year – more than a third of the betting firm’s annual profit – in a record-breaking pay deal for the chief executive of a British company.

 

Following the publication of its Q3 2018 trading update (13 Nov) in which the company posted year-to-date net losses of €55 million, Madrid-based operator Codere has witnessed its share price collapsefrom €6.20 to €2.85.

 

Norwegian state-owned gaming operator Norsk Tipping has agreed a new content partnership with Scientific Games as part of an ongoing effort to enhance its digital business.

 

Swedish operator Svenska Spel has unveiled a new anti-match fixing campaign.

 

Online operator Mr Green has launched the full NetEnt Live portfolio to its Danish customers, marking NetEnt’s first entry in to the market.

 

In its latest trading update, Intralot has reported Q3 losses and a 7% EBITDA fall in the first nine months of 2018.

 

A man who scooped £1.7m on an online game with Betfred is taking legal action against the firm after it refused to pay out due to a “software glitch.”

 

The Stars Group has announced an 11-state partnership with operator Eldorado Resorts in the US.

 

GVC Holdings has bolstered its Australian operations with a deal to acquire Neds International, the online sports betting operator founded by former Ladbrokes Australia chief executive Dean Shannon.

 

Sports betting regulation in Brazil has taken a step forward.