“Back in December of last year, Malta spearheaded an initiative that brought on board Cyprus, France, Greece, Italy, Portugal, and Spain, where together we agreed to promote and work further in the blockchain and DLT sphere, share our expertise and knowledge, and most importantly enhance further our cooperation in this new emergent industry,” said Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri.

“The signing of that declaration was clear evidence of a sense of acknowledgement of this emergent industry. Today’s initiative of a memorandum of understanding takes us a step further, it marks our commitment, as the seven EU member states, to establish a framework for the sharing of best practices in the design and application of DLT at a governmental level. This framework will help us as a region, to achieve the maximum potential of such technologies and enable us to enhance the daily lives of our citizens,” the junior minister added, tagging the MoU as a “historic milestone”.

Under the agreement, Malta, Spain, France, Italy, Greece, Portugal and Cyprus commit to exploring the possibility to cooperate on cross-border distributed ledger technologies projects and to share best practices in the application of distributed ledger technologies, according to the DOI press release. The MoU has established a framework for the sharing of best practices in the design and application of distributed ledger technologies at a governmental level between the countries.

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GentingBet says this agreement fits into its strategy of strengthening European presence. GentingBet opened its new “Interactive Headquarters” in Malta earlier this year. Play’n GO tags the agreement as “another landmark” in the continued expansion of suppliers into the UK market.

“Genting is well-known for the high quality of entertainment it brings to its players around the world. Our library of award-winning content represents that quality, and we are delighted for it to be a part of their offering. We are excited to be working with them and look forward to the future,” said Johan Törnqvist, CEO of Play’n GO. 

“Play’n GO are key players within the casino industry and partnering with them to offer their content brings us closer to our vision of providing the best range of slot games to our customers online and land-based with a due course,” said Jeremy Taylor, GentingBet’s Managing Director. 

“They also join us at a very exciting time with our new mobile-first website covering Sports and Casino launching in August under the one GentingBet brand,” Mr Taylor added. 

The post Play’n GO to provide its content to GentingBet first appeared on The Malta Business Weekly.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) was €15.1m, compared to €15m of Q2 2018, corresponding to an EBITDA margin of 16% which was 17.2% during the same period of the previous year.

“We reiterate our ambitious financial targets to achieve €600m in revenue and EBITDA of €100m by 2021. We want to clarify that the targets are based primarily on organic growth, but also include revenue from potential future acquisitions,” said Gustaf Hagman, CEO of LeoVegas group.

The number of depositing customers increased by 8%, from 309,961 to 334,961 and the number of returning depositing custmers also grew by 12%, from 175,500 to 196,203, compared to Q2 2018. Earnings per share were €0.07 before and after dilution, with no change reported.

‘Balanced’ revenue mix

“Compared to a year ago, LeoVegas has a more balanced geographic revenue mix. This means that we are not as sensitive to challenges that may arise in a specific market, which in turn means that we have lower business risk in the Group,” said Mr Hagman. 

“This work is helping to create necessary economies of scale and is countering the effect of that we are paying more gambling taxes. As previously communicated, our marketing investments also decreased compared with the first quarter of the year,” Mr Hagman added. “A contributing factor to this is more restrained marketing in Sweden during the quarter. In addition, the postponement of a few campaigns from the second to the third quarter has affected costs and contributed to operating profit, which will have a reverse effect during the third quarter.”

Furthermore, LeoVegas obtained a gaming licence in Spain and two weeks after the company launched its business in Spain, according to the press release sent to BM.

“This shows the strength and speed of LeoVegas and further demonstrates that our experience from regulated markets benefits us. Spain is a step in our continued expansion, and we have also recently carried out launches in other Spanish-speaking countries, such as Chile and Peru, as well as in Brazil,” continued Mr Hagman.

Moreover, Sweden has now been a regulated market for more than six months, and the development is beginning to indicate what kind of market the group will have over the long term. Leovegas also launched GoGoCasino and Pixel.bet.

“The investments made in 2018 and efficiency improvement work carried out thus far in 2019 are beginning to generate returns in the form of greater scalability of operations,” concluded Mr Hagman. 

The post LeoVegas sees organic revenue growing 8% in Q2 first appeared on The Malta Business Weekly.

The Spanish online gambling market is making iGaming stakeholders excited, as figures spur optimism. Spanish watchdog Dirección General de Ordenación del Juego reported revenues jumping by 21% to €193.2m in Q1 2019, as compared to the same quarter a year earlier. Behind sports betting, the online casino vertical was the second strongest; generating €67.1m. Big iGaming operators are heading to the market.

SkillOnNet, which operates PlayOJO, has been one of the most recent companies to have obtained a licence in Spain. Additionally, giants such as LeoVegas — seeing further expansion in Malta — and GiG, both having a firm presence in Malta, have also bagged their Spanish licenses lately.

“With such prestigious brands getting in on the action I think the Spanish online gambling market will continue to thrive over the coming months and years,” Bojoko CBO Joonas Karhu tells BM.

The Bojoko chief believes that the Spanish market will affect Malta positively, especially from the perspective of a licencing jurisdiction. “The Malta Gaming Authority (MGA) is one of the most established and trusted regulators in the world, and online gambling operators and suppliers wishing to enter markets such as Spain will still seek their approval,” Mr Karhu says.

He argues that being “dually licenced”, which essentially means that recognised by the MGA and by the regulator of the country a business is planning to enter, is a strong signal for players and other potential partners that an iGaming company operates to the highest possible standards.

“As markets such as Spain continue to regulate and show signs of growth, I think new operators and suppliers will enter the fray and will look to the MGA for licensing in addition to obtaining permits from the regulators in the markets where they launch,” Mr Karhu says.

Swedish reregulation ups the ante

However, another nation is believed to claim its stake at the European competition, holding strong cards in hand, as the recent reregulation of the Swedish market makes it an ever more attractive destination for iGaming firms.

“Bojoko supports the licensing and regulation of gambling in all markets around the world as it is the best way of ensuring that operators and suppliers are doing the right thing and that, ultimately, players are properly protected,” Mr Karhu says. “Online gambling is a hugely popular activity in Sweden and since the market reregulated at the start of the year we have seen all the major operators from the United Kingdom and beyond obtain the necessary licences to launch their brands in the country,” he adds.

Sweden is often seen as one of the most stringent markets when it comes to how operators can market their brands to players, which has caused some difficulties to companies, but generally, Mr Karhu believes that operators have adapted well and the market is growing nicely.

Mr Karhu further adds that the Swedish rerelugation will rather add to the importance of Malta. “I think this will have a positive impact on the Maltese online gambling industry. Malta is recognised as a leader and an authority in global online gambling and as markets continue to regulate and reregulate, the MGA will still to play a central role in the sector,” the business chief says.

In terms of the online gambling businesses based in Malta, Mr Karhu underscores that as most of these companies are multinational operators and suppliers he does not see them relocating to Sweden any time soon. Malta is considered as the world’s iGaming village and is expected to keep attracting companies and talent to its shores.

Expanding markets in EU, US

Additional European markets are expected to regulate the online gambling industry, which is seen to further establish the sector as a reputable, trusted and highly professional one. “We can clearly see the benefit of licensing and regulation in established markets such as the United Kingdom and Malta. Indeed, regulators such as the Gambling Commission and the MGA will continue to lead efforts to better safeguard players,” Mr Karhu says.

“I also expect Malta and the MGA to play a part in helping craft rules and regulations in new markets, as well as playing a central role in general conversations about how the iGaming sector can continue to move forward while properly protecting consumers,” he adds.

Overseas, the United States is also putting on the gloves, as a handful of states have already opened up, while another handful of states is working on regulating the market and would be opening up soon. “The United States is one of the most interesting online gambling markets in the world as more and more states license and regulate the activity. But it is very much a new industry and there is a lot to be learned from Malta and the MGA,” Mr Karhu maintains. He adds that he expects the MGA to “play a role in helping lawmakers craft rules and requirements, as well as to assist European operators looking to launch in the USA for the very first time.”

Although the opening up US market is foreseen to grow bigger than the European in the upcoming years, Mr Karhu does not believe the two giants would become competitors. “I do not really see it as one competing with the other. The United States is a new market that a lot of European operators and suppliers are keen to enter because of the huge potential on the table. The likes of Betfair, William Hill and PokerStars are already live, for example,” the Bojoko chief elaborates.

“I think European operators and suppliers — as well as regulators such as the MGA — can play a central role in how the US market evolves and expands simply because of the wealth of experience they have when it comes to working successfully in a highly-regulated industry,” he adds.

Only time will tell how European iGaming brands will resonate with players in the United States and whether any of the big US brands will decide to launch for players in Europe. “All things considered, I think the opening of the US market is great for Europe and great for the wider industry,” Mr Karhu concludes.

The post Spanish, Swedish markets may solidify Malta’s iGaming position first appeared on The Malta Business Weekly.

GiG expects to enter the Spanish market under these licences with its flagship brand Rizk. Simultaneously, GiG is also certifying its proprietary gaming platform and sportsbook, to sell to external licensed operators. GiG expects to take the first bets in Q4 and to scale up operations in Q1 2020, the press statement adds.

“We are delighted to be awarded the Spanish licences and are looking forward to serving the market with our top performing operator Rizk and our full suite of B2C and B2B products and solutions. The approximately €1bn market is the strongest growing market in Europe, at a rate of approximately 20%* per year, yet only 12% of the gambling is happening online, compared to more than 50% in mature digital markets in Europe, this represents a great opportunity for GiG,” said Robin Reed, CEO of GiG.

The launch into Spain follows GiG’s strategy of becoming a global operator and partner for strong brands in iGaming. GiG says it has aspirations to become a leader in a few select markets with its B2C brands, while expanding globally through B2B partnerships.

Spain regulated online gambling on a national level in 2011, the offline to online transition is further driving growth. Total Gross Gaming Revenue in Spain in 2018 was approximately $10bn, of which online gambling was 12%. Forecasts estimate the online gambling share in Spain to rise to more than 18% by 2024, the GiG press statement says.

The entry to the Spanish market also serves as a gateway to the Latin American markets, the establishment of our business in these markets is a key priority. GiG currently has licences and/or platform certifications in Malta, United Kingdom, the German State of Schleswig-Holstein, Sweden, Latvia and Spain.

The Spanish government approved a five-per-cent cut in gross gaming revenue from 25% to 20%, which action has been raising high hopes for the global iGaming industry, attracting eyes to the country, according to reports.

LeoVegas submitted a licence application for casino and sports betting, eyeing to set foot in the Spanish market late last year. LeoVegas’ competitor Gaming Innovation Group Inc (GiG) also applied for an online B2C casino and sports betting licence in Spain earlier.

Today, LeoVegas has also been granted an online gaming licence in Spain and will shortly launch its Spanish site. The licence applies to both casino and sports games, according to a press release by the iGaming company.

The post GiG secures Spanish gaming licences first appeared on The Malta Business Weekly.

LeoVegas’ expansion strategy focuses on entering regulated markets or markets with plans to regulate. The company has gaming licences in Malta, where operations are made, the United Kingdom, Denmark, Italy, Sweden, Ireland, the German state of Schleswig-Holstein, and now officially in Spain.

“We welcome Spain as our seventh locally regulated market. With LeoVegas’ position as King of Casino, we are now entering Spain with the ambition to take the mobile position and offer the ultimate gaming experience,” said Gustaf Hagman, LeoVegas Group CEO. “The Spanish online gambling market has a strong underlying growth with over 20% per year. The Spanish license is an important step in our continued expansion, in other Spanish-speaking countries, where we have already conducted test launches in Peru and Chile.”

LeoVegas’ data-driven approach to marketing is one of the keys to the successful establishment, the company believes. In connection with a launch, marketing will gradually increase, and every marketing channel and player values are analysed. Such analyses form the basis for continuously optimising and scaling up customer acquisition.

Furthermore, the Spanish online gaming market will be worth of approximately €1b in 2019, according to Half Two (H2) Gaming Capital, compared with the Swedish market, which is estimated to be worth approximately €1.4b. 

Nowadays, only 13% of all gaming in Spain is online, compared with 50% in Sweden. However, the Spanish online market is experiencing strong growth as more and more gaming is moving online. 

In fact, the most recent figures from the Spanish Gambling Authority show that the casino segment grew by 20% in Q1/2019, compared with the same period a year ago. The casino segment accounts for about 35% of the total online market in Spain. 

The Spanish government approved a five-per-cent cut in gross gaming revenue from 25% to 20%, which action has been raising high hopes for the global iGaming industry, attracting eyes to the country, according to reports.

LeoVegas submitted a licence application for casino and sports betting, eyeing to set foot in the Spanish market late last year. LeoVegas’ competitor Gaming Innovation Group Inc (GiG) also applied for an online B2C casino and sports betting licence in Spain earlier.

Today, Gaming Innovation Group Inc (GiG) has also been awarded licences by the Directorate General for the Regulation of Gambling in Spain (DGOJ) permitting the GiG to offer online casino and sports betting in Spain, according to a press statement.

EDITORIAL NOTE: The present story has been updated with information about LeoVegas’ competitor GiG’s licences received for the Spanish market too.

The post LeoVegas bags Spanish gaming licence first appeared on The Malta Business Weekly.

“We are now taking the next step on our global expansion journey and apply for our first license in a Spanish-speaking country, Spain,” says Gustaf Hagman, CEO of LeoVegas Group.

Mr Hagman tags Spain as one of the fastest-growing markets in Europe. The CEO believes that due to his group’s technology and experience; they will be able to effectively adapt their business to regulated markets regardless of language and regulations.

As more than 470 million people speak Spanish, the company sees entering Spain as a first step to get into several Spanish-speaking countries, the press release notes.

The Spanish casino market grew by more than 30% in Q3 2018 compared to 2017, and it is projected to be worth approximately €1bn in 2019, according to estimates provided by H2 Gambling Capital data, which is one of the gambling industry’s leading providers of figures and analyses. The Swedish market, in comparison, is worth approximately €1.4bn.

“Today only about 11% of all gaming in Spain is conducted online, compared with 52% in Sweden. Spain’s online gaming market is experiencing strong growth as more and more gaming is being conducted online. The most recent figures from the Spanish gambling authority show that the casino segment grew by 30% in Q3 2018 compared with the same period last year,” LeoVegas notes in the press release.

LeoVegas holds gaming licences in Malta, the United Kingdom, Denmark, Italy, Sweden, Ireland and now awaits for Spain.

LeoVegas’s announcement comes very shortly after a cut in gross gaming revenue from 25% to 20% has been approved by the Spanish government. LeoVegas appears to pop up as a fierce competitor of GiG in the market with a jumpstart, which announced similar plans very recently for the second half of the year.

The post LeoVegas to enter Spanish market in Q1 first appeared on The Malta Business Weekly.

As part of its licensing process, the company aims to certify its B2B technical platform and offer its services and solutions to external licensed operators in the Spanish market, according to the press release. The company is entering the Spanish market with both its B2C and B2B activities and is set to launch operations in the second half of the year.

Spain started regulating online gambling on a national level in 2011. Total Gross Gaming Revenue in Spain in 2017 was approximately $10bn, of which online gambling was 10%. Forecasts expect this to rise to more than 15% by 2023, the press release notes based on H2 Gambling Capital data, which is one of the gambling industry’s leading providers of data and analyses.

GiG’s announcement comes on time very shortly after a cut in gross gaming revenue from 25% to 20% has been approved by the Spanish government. Competition on the market might be quite harsh in 2019, as LeoVegas has recently announced similar plans.

The post GiG eyes expansion into Spanish market in H2 first appeared on The Malta Business Weekly.

Spain’s online gambling sector has been on a steady rise, and the recent announcement boosts expectations for the market. The Dirección General de Ordenación del Juego (DGOJ), the country’s gambling regulator, had reported about a 27% year-on-year growth in online gambling revenue for the first quarter of 2018, soon before the tax cut came to light in June 2018.

Pundits expect the tax cut to be beneficial for everyone. On the one hand, operators are seen to be given leeway for better offers for players, which can boost revenues significantly. On the other side, as a result of the foreseen boost, the government could pocket more in taxes, analysts say.

DGOJ had long been lobbying for tax cuts, but economists said earlier the Spanish economy was not ready for such a decrease. However, as the Spanish economy saw an expansion of 3.1% in 2017, grounds appeared to have been set for the cut.

The recently-announced cut applies to online fixed-odds betting and sports betting, fixed-odds horse racing, betting exchanges and online casino games, bingo and poker, according to reports. At the same time, companies located in Ceuta and Melilla on the northern shores of Morocco’s Mediterranean coast are taxed 10% of online gross gaming revenues, as earlier.

Parimutuel betting gross gaming revenue is also seeing a cut from 22% to 20%, bringing the rate in line with state-owned betting services, according to a report by iGamingBusiness. However, the tax rate for pari-mutuel horse racing and pari-mutuel pool betting gross gaming revenues have been increased from 15% to 20%, the online gaming news site reported.

Malta has long been considered the hub of iGaming and innovation in the region. With the recent progress in Spain, eyes are cast at the Spaniard market in anticipation to see how this will affect the area overall and Malta’s position in the EU-28.

The post Spain axes iGaming levy by 5% first appeared on The Malta Business Weekly.