iGaming Business magazine iGB 112 Sept/Oct 2018 | Page 13

iGaming Business 112
In numbers
NFL
Nevada in NJ’s sights
New Jersey online casino:
top 5 operators by market share
15.2%
RESORTS
36%
GOLDEN NUGGET
DIGITAL
12.9 %
TROPICANA
14.5%
CAESARS
INTERACTIVE
19 %
BORGATA
PLAYTECH
It’s been another tough quarter for the industry’s leading
supplier, with its recent H1s revealing an 11% drop in revenue
with the €61m revenue contribution from freshly acquired
Italian operator Snaitech stripped out. Even with this included,
Playtech was up just up 6% to €437m. It follows the company’s
second profit warning and 50% drop in share price in the past
year, the company blaming a price war in Asia wagered by a
raft of new local and international entrants.
In early September, The Times reported that two major
investors, hedge fund owner Crispin Odey and American
activist investor Jason Ader, had been in contact about the
worrying results, with the latter expected to push for a
disposal of assets or full sale.
Meanwhile, the regulatory climate in Italy, along with
the usual integration issues that come with major
M&A, indicate that Snai presents as much of a risk as
an opportunity. Could the igaming giant be losing
its foothold?
AD
The dot.nj market had its best month in history in July, with
licensed intrastate operators collectively generating $25.9m,
a 25% rise on the same month last year. It was casino that
boosted the market and the vertical also hit a record high
with GGR of $24m.
Stakeholders will also have been boosted by projections
from Eilers & Krejcik Gaming that it could have as many as
20 online operators by the end of the NFL American football
season and have a bigger sports betting market than Nevada
by 2021.
The research company tipped the fledgling market to
increase from a current yield of just $35m this year to
$442m (£340m/€380m) by the end of 2021.
Golden Nugget, which launched its on-venue SBTech-
powered sportsbook in August, retained its dominance in
online casino in July, commanding 36% of the market, which
also included a contribution from the Betfair Casino and
PlaySugarHouse brands hosted on its licence. Borgata was
the biggest riser in the traditionally quieter month of July,
with its market share rising to 19% from 17.8%.
The NFL was buoyed by the findings of a new American
Gaming Association (AGA) report which projected
it could boost annual revenue by a hefty $2.3bn
(£1.78bn/€1.98bn) through regulated US sports
wagering. According to author Nielsen Sports, greater
fan engagement and viewership could boost the NFL’s
total annual revenue from media rights, sponsorships,
merchandise and ticket sales by 13.4%, producing $1.75bn
in new revenue from increased consumption of its products.
The study also projected spending by betting operators and
data providers could generate an additional $573m, with
operators ploughing $451m into advertising.
ESPN.com, however, noted that the report did not weigh
up so-called integrity fees, which the AGA has been fiercely
opposed to.
“So much time has been spent on talk over integrity fees,”
senior vice-president of public affairs for the AGA, Sara
Slane, told ESPN. “We think these numbers are conservative
and show that the league is frankly tripping over dollars to
pick up pennies.”
i GamingBusiness | Issue 112 | September/October 2018
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