The iGaming industry strengthens Spain’s economy amid COVID-19 job crisis

Evoke Plc?has issued a trading update for the first half of 2024. While the company reported some positive momentum in Q2, overall performance fell short of expectations, prompting a revision of its full-year 2024 forecasts. However, the Group remains optimistic about its strategic direction, with no changes to its FY25 outlook or long-term targets.

Evoke reported Q2 2024 revenue of approximately ￡431 million, maintaining a stable performance both sequentially and year-over-year. However, the company acknowledged that this was behind internal projections, primarily due to underperformance in its marketing and promotional activities during Q1, which impacted subsequent quarters.

- UK Online Revenue saw a modest increase of 3?percent, driven by a 6?percent?growth in gaming. However, sports betting lagged, with continued effects from previous changes in marketing strategy and proposition. Evoke has since adjusted its leadership and commercial strategies, leading to early positive results, particularly with the launch of a new betbuilder product.

?- UK Retail Revenue remained stable compared to H2 2023 but was 8?percent?lower than in 2023, which had a strong comparative period. To address this, Evoke has initiated leadership changes and plans to roll out new gaming machines and an improved sports betting product by Q4 2024.

- International Operations reported a 2?percent?revenue increase (4?percent?in constant currency), with strong double-digit growth in core markets such as Italy, Spain, and Denmark. This was partially offset by a strategic shift towards profitability, including the exit from the US B2C business.

The company’s Adjusted EBITDA Margin for H1 2024 is expected to be around 13-14 percent, impacted by front-loaded marketing expenses and lower-than-anticipated revenues.

The company launched a new strategy and value creation plan in March, followed by a rebranding to "evoke" in May 2024. The strategy focuses on mid-to long-term profitable growth, with investments in the Group’s capabilities aimed at transforming the business and increasing competitiveness.

Looking ahead, Evoke expects H2 2024 revenue growth to align with its medium-term guidance of 5-9 percent. The company declares it has executed a cost optimisation program, delivering ￡30 million in savings, with additional benefits expected in the second half. As a result, profitability is anticipated to increase significantly in H2 2024, with the Adjusted EBITDA Margin projected to reach approximately 21 percent.

CEO Per Widerstr?m (pictured above) commented, "While the first half financials are behind our plan, the underlying health of the business is strengthening. The corrective actions we have already taken make us confident in our strategic approach. We are on track for profitable growth in H2 2024 and beyond, and our plans for 2025 remain unchanged."

Las Vegas Sands’ plan to develop a $6 billion casino and resort complex (photo above) on Long Island has recently made progress, with the company securing a 42-year lease to manage the Nassau Coliseum. However, the company still faces an important challenge: obtaining a state gaming licence.?In Long Island, 11 contenders are competing for three licences, with the final decision potentially delayed until late 2025.

The decision to award the management of the Nassau Coliseum and its surrounding area to Las Vegas Sands was made by Nassau County. After debating the project, the county voted in favour of it, as a means of securing the jobs of those already employed on-site. Supporters of the project argue that the casino could bring substantial economic benefits to the region. Ryan Stanton, from the Long Island Federation of Labour, noted that the construction project alone could create numerous opportunities for nearly two years.

Among the 11 contenders, Las Vegas Sands is considered one of the strongest candidates for a gaming licence. The company has proposed significant investments in the community and has secured a strategic location, with Nassau Coliseum being close to Manhattan.

Long Island attorney Joshua Liebman, a supporter of the Sands project, has publicly urged Governor Hochul to accelerate the bidding process for the three casino licences. He argues that any delay in the decision could have an important economic impact, resulting in a loss of revenue for both the state and local communities.

“If Rick’s casino in the movie ‘Casablanca’ had been waiting for Governor Hochul’s administration to issue it an operating licence, the amoral French Captain Renault would have died of old age long before being presented with his winnings,” wrote Liebman.

The lawyer, who claims to have no relationship with Sands nor any financial interest in their venture, concluded: “This governor and her casino siting board need to recognise what the business community has long known: delay is as much a decision as definitive action.”

Concerns about the casino’s potential impact have been voiced by opponents, including Hofstra University and nearby communities such as the Village of Garden City. They fear the project could lead to increased traffic, pollution, and crime.

Japan’s National Police Agency (NPA) has announced its first-ever investigation into illegal offshore gambling websites. This initiative comes in response to the rapid proliferation of these sites among Japan’s youth, raising concerns about addiction and financial instability.

The NPA’s investigation aims to address the growing issue of online gambling, which has seen a significant rise in popularity, particularly among younger demographics. The agency will collaborate with relevant authorities to regulate access to these gambling sites and implement measures to combat addiction.

The investigation will focus on identifying the operators of online casinos targeting Japanese citizens. This includes pinpointing their locations, understanding the monetary transaction processes, and tracking the number of visits from Japan. The NPA plans to conduct a comprehensive survey involving over 7,000 individuals, ranging from teenagers to the elderly, to gather data on online casino usage. A detailed report is expected by the end of the year.

Despite certain forms of gambling being legal in Japan, such as horse racing and pachinko, online gambling remains illegal. This legal grey area has led to a widespread misconception that using offshore gambling sites is permissible. The NPA’s efforts aim to clarify these misconceptions and enforce the law more effectively.

The Tokyo-based Society Concerned about Gambling Addiction has highlighted the urgency of this issue. In 2023, online casinos accounted for 20.3 percent of consultations with the society, a notable increase from 16 percent in 2019. Many of these consultations involved young people struggling with gambling addiction.

Japan is not alone in its fight against illegal online gambling. Australia has also intensified its efforts to protect its citizens from the adverse effects of gambling. The Australian Communications and Media Authority (ACMA) has been actively combating illegal gambling activities and pushing for stricter regulations to safeguard vulnerable populations.

The NPA’s investigation is a significant step towards addressing the challenges posed by illegal offshore gambling. By identifying and regulating these sites, Japan hopes to mitigate the risks associated with online gambling and provide better support for those affected by addiction.

As the investigation progresses, the NPA will share its findings with other governmental bodies to develop a comprehensive strategy for tackling this issue. This collaborative approach aims to create a safer online environment and reduce the negative impact of gambling on Japanese society.

By addressing the root causes and implementing effective measures, the agency hopes to protect its citizens from the dangers of illegal gambling and promote a healthier, more secure society.

 SiGMA East Europe Summit powered by Soft2Bet, happening in Budapest from 2 – 4 September.

The Swedish Trade Association for Online Gambling (BOS) and the Spelinspektionen?have reacted to the Swedish government’s proposal to shut down Casino Cosmopol, the nation’s last state-owned casino. The state memorandum, backed by Sweden’s Conservative Coalition government, seeks to diminish state involvement in gambling operations.

BOS has expressed a mixed reaction to the government’s initiative. While the association supports the government's decision to end state-operated casinos, it advocates for legalising private land-based casinos. Currently, private land-based casinos are prohibited in Sweden, and the government’s proposes to maintain this prohibition.

Gustaf Hoffstedt, Secretary General of BOS, articulated the association’s position, stating, “Land-based casinos play a very small role in terms of their turnover, but they still have a function in the overall ecosystem of the gambling market. In addition, they fulfil a function for Sweden as a tourist country and to deter illegal gambling clubs. We propose that the government, at the same time as they close their own government casino, open up for private companies to offer land-based casinos in Sweden.”

BOS argues that private operators could offer a legal alternative to illegal gambling and contribute positively to the gambling market, stating: “We are convinced that private companies can operate land-based casinos in Sweden profitably, without compromising on strict regulations regarding, among other things, consumer protection and money laundering.”

The trade association concluded: “It is surprising that a government with such a strong representation of liberal values and belief of individual rights, finds it so easy to ban casinos.”

The Swedish Gambling Authority, Spelinspektionen, has also pointed out potential issues arising from the closure. Although the authority did not oppose the shutdown of Casino Cosmopol, it cautioned that closing the casino could lead to increased illegal gambling.

However, the proposal has garnered support from members of the Conservative Coalition, who question whether Svenska Spel, the state-owned gambling operator, should continue to manage a loss-making casino unit.