Online gambling operator The Stars Group (TSG) says it’s heading for a record first quarter of 2020 thanks to strong showings in its UK and Australian operations.

In a trading update released Friday, the Toronto-based TSG said it expects its Q1 revenue to come in around US$735m, a 27% rise over Q1 2019’s tally, while operating income will more than double to between $140m-$149m and adjusted earnings will rise by half to $185m.

That said, the company says it expects to book a net loss of between $69m-$79m for the quarter versus a $28m profit one year ago, in part due to costs associated with its ongoing merger with/absorption by UK-listed gambling giant Flutter Entertainment.

Q1’s revenue boost was credited to (a) betting margins doubling to 12%, and (b) increased customer activity in its online poker and casino verticals, which coincided with the mass suspension of live sports events due to the COVID-19 pandemic.

This is a guest contribution by Joshua Henslee, a blockchain consultant. Many gambling firms want to implement blockchain technology, but believe only a private solution can solve their needs. Henslee explains why Bitcoin SV is superior in every way. This article first appeared on CoinGeek.com.

Companies have been told that they need private blockchains, that they cannot possibly use a public ledger for various reasons including:

– Public blockchains cannot scale

– Data cannot be public

The coronavirus has the ability to alter entire economic ecosystems, as it has already proven. When one segment of a market suffers, so do the rest. As casinos around the world have been forced into hibernation as the spread of COVID-19 is being contained, many of those businesses have found themselves short of cash. This has led to massive numbers of layoffs of various workforces and the inability to cover other expenses, such as rent, which has, in turn, led to a previously highly stable segment now to be precariously on edge. The real estate investment trust (REIT) segment has seen a reduction in its revenue and one of the largest, Vici Properties, has been forced to pull its revenue forecast for the year as it takes a closer look at the numbers.

REITs like Vici have an incredibly lucrative business model. In terms of the gambling industry, they purchase certain physical assets owned by casinos, such as the underlying land and/or the buildings, and then lease the real estate back to that original owner. They get to turn a profit through lease payments while the operators continue to do all the work. That may be a simplified version of their structure, but it basically sums things up. However, the coronavirus has caused the model to rattle a little, as more casino operators are finding it difficult to cover their costs. This has led to the REITs to begin to experience tension with their numbers.

Vici, which is traded on the New York Stock Exchange (NYSE), provided a notice yesterday that it has been forced to pull its guidance for the year and that it will now begin to analyze its revenue streams to determine how things are going to play out. It added, “All of our tenants fulfilled their rent obligations in full for the month of April. As of April 16, 2020, we are actively engaged in discussions with our five tenants regarding how best to respond to the COVID-19 pandemic as it specifically impacts each tenant’s financial and operating situation.”

For now, the company will hold off on providing any update as it works through the numbers and comes up with as accurate a picture as would be feasible since it “cannot predict the length of time our tenants’ operations will remain closed.” However, Vici isn’t prepared to kick its tenants out the door, and indicates that it is also working with its renters to determine if any type of modification might be warranted. Were that to become necessary, the company explains that it is prepared to help its tenants “during the short term in ways that we believe will benefit the Company over the long term.”

In the fast moving world of gambling, sometimes you might miss news that could be important to you. To make sure you’re all caught up on gaming industry news, be it online or brick and mortar, we’re rounding up the some of the announcements and partnerships from the last week that you might have missed.

 Woohoo add Caesar’s Conquest to games offering

For Woohoo Games, whose expanding client base has meant increased demand for new and graphically complex RNG products, Caesar’s Conquest is the latest to roll out of the innovative design hub.

Available in; English, Spanish, Portuguese, Chinese, Japanese, Thai, Vietnamese and Indonesian and able to accept 17 different currencies, including Bitcoin (BTC), Caesar’s Conquest offers an immersive Roman slot game experience. Players can stride into the grand buildings of ancient Rome enjoying random progressive jackpots, which players can win at the end of any game, as well as excellent quality animation.

Gaming operators should have been preparing for one of the largest gaming conferences, Global Gaming Expo (G2E) Asia, which had initially been scheduled for May 19-21. However, as the coronavirus continued to spread across the region, and then the world, the event was forced to be put on hold. It was rescheduled for July 28-30, but this alternative was met with just a lukewarm response. Concerns that gaming companies simply wouldn’t be ready seem to have been validated, as G2E Asia has been rescheduled once again, this time allowing more than enough time for participants to get ready. The conference will now be held at the end of the year.

The American Gaming Association (AGA) and Reed Exhibitions are behind the event, held each year at the Venetian Macao in Macau. The AGA announced on its website today that it has been forced to push back G2E Asia to December 1-3, but the venue won’t be changed. The organization explained, “The health and safety of our exhibitors, attendees, and employees is always our highest priority. Based on our continued monitoring of the global health crisis, and in consultation with our customers and the Macao government, we will now host G2E Asia in December.”

The changes most likely won’t come as a surprise to anyone in the industry. The coronavirus-caused lockdown remains in place in a lot of areas around the world and is going to extend into May. A July event would have come too soon, and there’s not yet a clear indication that large gatherings and international travel will be safe enough to allow gaming companies and participants to begin to make preparations without concerns over the health of the individuals. In addition, juggling other commitments to clear the calendar for the July dates would have most likely been a difficult task. Postponing the event until December gives companies plenty of time to get everything in order.

The chief operating officer for Reed Exhibitions China, Josephine Lee, weighed in on the rescheduling in a separate press release, explaining, “The rapidly evolving situation makes it too difficult to host G2E Asia in a safe environment this summer. Based on our continued monitoring of the global health crisis, and in consultation with our customers and the Macau government, we have made the decision to postpone G2E Asia to December. The health and safety of our exhibitors, attendees, and employees is paramount.”

This is a guest contribution by Pierre Lindh of iGaming NEXT. If you would like to submit a contribution please contact Bill Beatty for submission details. Thank you.

It is ironic isn’t it. The event industry hasn’t evolved in decades, and almost overnight it’s faced with a threat that is bound to change it forever. And as difficult as this period may be for the event industry and indeed all industries, we now need to look at the opportunities that lie ahead.  

As professionals, we are all impacted in one way or the other by the COVID-19 outbreak as the uncertainty continues. As business owners, managers and employees, we can only do our very best to navigate through this situation while having each other’s backs. Mark Cuban put it best: “How companies treat workers during this pandemic could define their brand for decades”. Will you choose to cut cost? Or will you choose to innovate?  

As conference organisers, our primary goal is to connect the industry, facilitate business and knowledge sharing with as little friction as possible. With the new reality of social distancing and limitations on public gatherings for the foreseeable future, we need to adapt our organisations for these challenges. Ursula Von Der Leyen, the Chief of the European Commission said just the other day that “Life will not return to normal until vaccine”, a frightening thought. In reality, only time will tell how this will play out.  

US state lotteries are taking a fresh look at the concept of selling tickets and other lottery products online as the COVID-19 pandemic decimates retail sales.

This week, Massachusetts state treasurer Deborah Goldberg updated the government on the state’s finances, which included details of the Massachusetts Lottery’s performance after the outright closure of one-quarter of its 7,500 retail points of sale, while additional retailers have stopped selling lottery products due to a shortage of staff or to minimize people unnecessarily congregating inside small shops.

The Lowell Sun quoted Goldberg saying total Lottery sales last week were down “almost 33%” from the same week last year. Keno, “one of our best performing products,” reported sales down 53% in April, while instant ticket sales were off nearly 29%. Goldberg said the figures “dramatically exposed the limitations and vulnerabilities of the Lottery’s all-cash, in-person business model.”

Massachusetts has made furtive attempts at approving online lottery sales but could never seem to convince either legislators or the general public that the time was now. But with pandemic-related expenses soaring and revenue falling, Goldberg urged the legislature to “carefully consider statutory changes that will allow the Lottery to modernize so it is better positioned to weather future crises.”

Super Bowl 55 is scheduled for February 7 at Raymond James Stadium in Tampa, and obviously who knows what the world may look like then and if the game will actually be played due to the coronavirus pandemic. It does seem quite possible that no fans would be allowed to attend – there may not be fans at any major sporting events in the United States for a long time.

Odds courtesy of OddsShark.com

Anyone for a Kansas City Chiefs-San Francisco 49ers rematch in Super Bowl 55? That’s the +1500 favored matchup. This past February in Miami, Patrick Mahomes rallied the Chiefs from down 20-10 more than halfway through the fourth quarter to a 31-20 victory and the franchise’s second Super Bowl title.

Mahomes was deservedly named the game’s MVP. Kansas City trailed by double digits in all three playoff games last season. As long as Mahomes is around, the Chiefs are going to be among the favorites to win the Super Bowl. That offense should be spectacular again after losing just one starter this offseason (lineman).