Monthly Archives: March 2020

SIS hibernates, UK advises online gamblers, Hills’ corona tweet fails

UK gamblers have received some unsolicited advice from their local regulator on what to expect from online betting sites during the COVID-19 pandemic, although not all operators appear to have got the message.

On Friday, the UK Gambling Commission (UKGC) issued an advisory to gamblers noting that “more people will be engaging with online gambling websites” during the current period of social isolation. As such, the regulator offered some guidance on the various harm-reduction measures available to consumers.

In a nutshell, set spending limits, restrict gambling company exposure on social media, self-exclude if you don’t know when to say when, check for the UKGC seal of approval on all websites, read operators’ terms and conditions and ask for records of your gambling activity.

Earlier this week, the UKGC issued a notice to operators warning them not to let standards slip during these trying times. Enter GVC Holdings, which on Friday announced a raft of additional safer gambling safeguards, including proactive communication with customers noting the existence of safer gambling tools.

MGM Resorts’ shares slide on grim status update, forecast

Casino operator MGM Resorts says it’s doing more to help its employees through the COVID-19 pandemic, although most of that help is coming from outside the company.

On Friday, MGM issued a trading update hailing the “strong start” its domestic operations had enjoyed over the first two months of 2020, before those operations were forced to close to minimize further spread of the COVID-19 coronavirus.

MGM’s net income was around $1.3b through the end of February, although the company did get a $1.5b pre-tax gain thanks to January’s MGM Grand/Mandalay Bay deal, so they actually lost $200m, but hey, accounting. Las Vegas Strip earnings (before rent payments) were up 24% while regional operations improved 42%.

Net revenue was down 10% due to the 15-day shutdown of MGM China’s casinos in Macau, and MGM warned that its Macau operations remain a shadow of their former selves due to ongoing travel restrictions, all of which has led to “substantial operating losses” in March.

Flutter-Stars Group merger is a go, cash dividend not so much

UK-listed gambling giant Flutter Entertainment says its merger with online rival The Stars Group (TSG) won’t be stopped by the COVID-19 pandemic but the same can’t be said for its cash dividend to investors.

On Friday, Flutter issued an update on its plans to absorb TSG’s operations, which Flutter CEO Peter Jackson said would proceed despite the “challenging times” brought on by the coronavirus. Jackson said he was “more convinced than ever of the strategic fit of these two complementary businesses.”

That said, the COVID-19 hit that Flutter’s bottom line has taken over the past month or so means that the company is proposing to issue the planned 2019 final dividend of 133p per Flutter share in more Flutter shares rather than cash. Flutter also decided not to propose a pro-rated dividend immediately prior to completion of the merger, and to suspend dividends for the current financial year.

Flutter also announced that it had rejigged its debt arrangements earlier this month through a term loan and revolving credit facility totaling £1.3b to provide “ongoing financial flexibility.” The enlarged company’s debt was supposed to be around 3.5x earnings, but Flutter now says this figure is “likely to be above 3.5x (excluding synergies).”

Russia’s casinos close, betting ops ask gov’t for coronavirus relief

Russia’s land-based gambling operators are finally taking the hint and suspending activities during a pandemic, while online sportsbooks are scrambling to offer customers anything on which to wager.

On Friday, Hong Kong-listed Summit Ascent Holdings announced that its Tigre de Cristal casino in Russia’s Primorye gaming zone outside Vladivostok was temporarily suspending its gaming operations starting Saturday (28) and extending through April 5. The intention is to “prevent crowds from gathering” during the COVID-19 coronavirus pandemic.

Casinos in Russia’s Krasnaya Polyana gaming zone in Sochi announced Thursday that they would “temporarily suspend the admission of guests” on the advice of the region’s medical authorities. The Altai Palace casino in the Siberian Coin gaming zone is also shutting down its gaming operations “until a new government order” is issued.

Similar shutdown notices were issued this week by Russia’s racetracks, including the Central Moscow Hippodrome and the Krasnodar Hippodrome. The tracks had attempted to continue operations with no spectators in the stands but have since bowed to the inevitable and stopped threatening the health of trainers, jockeys and track officials.