Tag: 2019

Catena Media to Continue Acquiring Big Businesses in 2019

Posted on by George Hansen
  • Catena will focus on growing organic traffic in 2019
  • The company will seek to integrate existing products better into its core business
  • Growth in the US is happening faster than expected
  • New markets and acquisition also planned for 2019

Catena Media, one of the largest owners of iGaming affiliate businesses, has said that it’s ready to pursue new Merger & Acquisition opportunities, recovering from a slowdown in 2018.

Catena to Continue Expanding in 2019

Catena Media marked a slight dip in its organic performance in 2018, but nothing too serious to dissuade the company from pursuing a course towards growth today.

According to Per Hallberg, Catena executive, the company will now re-focus its efforts on big acquisitions and business opportunities rather than snapping up small chains.

Organic growth may indeed have been a bit slow in Q4, 2018, but Catena managed to notch up $120 million in revenue, over 50% year-over-year. EBITDA hit $54 million, with the company now hoping to pursue a course of growth that would lend it at $100 million by 2020.

Catena has kept busy by mid-2018 when it concluded the acquisition of LeapRate.com and ASAP Italia, marking for the last major deals of the year. During the company’s earning call published on February 7, Mr. Hallberg said:

The process of transitioning from a distinct acquisition strategy to an increased focus on organic growth is progressing and the results have already been favourable, with clear indicators that we are on the right path.

Organic Growth Opportunities This Year

Catena wants to prioritize organic growth as its most important metric in 2019. This makes sense as inflating the numbers might backfire eventually. However, Catena is no where near giving up on pursuing important deals that will secure it better positions in future. Mr. Hallberg confirmed that the company will continue to pursue growth:

Focusing on organic growth does not mean that Catena Media will not make any acquisitions. We will make acquisitions in 2019.

At the same time, he noted that Catena is now focused on achieving more with its existing products, including the integration of new assets into the core business of the company.

Catena’s sales have been growing exponentially, Mr. Hallberg said and new markets, including Japan and the United States.

The defeat of PASPA had also played an important part in this strategy, with Mr. Hallberg now saying that growth in the US market has outpaced any previous forecasts.

However, he didn’t mention anything about the DoJ’s recently reversed opinion on the Wire Act, which will effectively slash the performance in places such as New Jersey, Nevada, and the ambitiously opening-up market of Pennsylvania.

With subscriptions and search revenue increasing, Mr. Hallberg and Catena have big expectations for the future.

George Hansen

Taking a liking to the occasional bout of slots, George used to moonlight as a roulette dealer, giving him a unique perspective into the casino world. From there he continued his journalist education and has been with us ever since a star-aligned graduation brought him and our team together.

The Legal Status of Loot Boxes in Gaming

Posted on by Carmen Thompson

The most intense criticism of loot boxes came in late 2017 after being stoked by the Star Wars Battlefront 2’s subsequently-revised progression system. For a while after that, it seemed that the conversation had cooled a little with industry working conditions and net neutrality regulations taking the center stage for a while. This was, however, short-lived s regulators from around the worlds began to crack down on the practice citing concerns that the loot boxes were promoting gambling both illegally and to underage people.

This turned the issue from being a mere consumer criticism to a full-fledged legal question. In Belgium, for instance, the government is of the opinion that loot boxes are a form of gambling and should thus be regulated in the same that all other forms of gambling are. Other countries have taken similar stands as well and in 2019 we should expect even more twists in as far this particular issue is concerned.

As it is, much of the legal battle involving loot boxes revolves around concepts of transferability, real money value as well as publisher profits. Transferability refers to the whether or not items offered by the loot boxes are tradeable which would make them commodities in real money transactions. It has been argued that the game publishers are profiting indirectly off the aftermarket value items that are found in the loot boxes offered in their games – this is simply because increased value of potential rewards increases the demand.

The Crackdown on Loot Boxes

The crackdown on various loot box mechanics began in the Netherlands in early 2018 after the country’s gaming authority found 4 out of 10 games it investigated to be in need of a gambling license if they were to continue operating within its borders. This was followed by a number of media reports which named Dota 2, Rocket League, FIFA 18 and PlayerUnkown’s Battlegrounds as these first wave offenders. Other countries also began to look into loot boxes at about the same time – these included the United Kingdom, the United States, China, South Korea, and Australia.

What Is in Store for Loot Boxes in 2019?

Well, one thing is for sure – even though several governments are regulators are seriously investigating loot boxes, the law is more often than not very sluggish when it comes to catching up with changing realities of the information age. That said, this sluggishness is certainly bound to leave loot boxes in the legal grey area in many parts of the world which might be a problem in the future in case some of the loot boxes do indeed promote gambling.

Carmen Thompson

Carmen is our residential reporter always on the move and hunting down the latest scoops and rumours to explore. Nothing gets past her keen nose, especially when it comes to some serious Jelly Bean poker tournaments.

Rhode Islands Gets $683,000 in First Week of Sports Betting

Posted on by Carmen Thompson
  • Rhode Island rakes in $683,000 in first week of sports betting
  • The states expects a strong turnout in December
  • 5 more states consider sports betting in 2019

Rhode Island cashed in on its first week of sports betting, with the state’s gamers contributing a total of $683,000 in wagers. The Rhode Island Lottery has fleshed out the details on Friday, December 28. The numbers concern the Twin River Casino in Lincoln for November.

The U.S. Smallest State Rakes in $700,000 in Sports Wagers

Rhode Island, the U.S. state has managed to handle a hefty $683,000 in sports wagers during the first week of its sports betting operations with the numbers announced this Friday by the Rhode Island Lottery Commission

Twin River Casino is the only approved property so far taking wagers on sports events’ outcomes in New England. With the activity hitting off on November 26, the figures cover a 5-day spread. While some see signs of strength others don’t entirely rule out the possibility of a hype build-up, which may tumble in the months to com.

Nevertheless, a total handle of nearly $700,000 a week is sufficient to chart a future in which the casino handles around $3 million a month. Breaking down the total handle, $610,000 was paid back to customers with the Twin River Casino cashing in estimated $73,000 in revenue.

Twin River Casino is located in a good spot, ready to take customers from neighbouring Massachusetts.

Legal Betting and the Way Ahead for the Industry in 2019

Following the legalization of Rhode Island’s sports betting, much is about to change in the U.S. betting landscape in 2019. With the small state managing to push through with its own legal bills, other states are now expecting to legalize their activities. The wait list is not too long in any event:

  • Michigan
  • Connecticut
  • New York
  • Arkansas
  • District of Columbia

In each case, these states are edging closer to getting their sports betting activities legalized in 2019, though not all of them have obtained the clear go-ahead. Arkansas is in fact the only sure state that will launch its own activities by mid-2019, as voters supported the idea during the mid-terms.

Michigan did a last-moment push for the legalization of the activity, but the suggestion was shot down by Governor Rick Snyder, after having cleared both houses. Debates will continue well into 2019.

Meanwhile, New York has had several betting bills since 2013. In 2018 alone, several more were spearheaded but apparently couldn’t make the cut. Connecticut is in a similar pickle not quite able to push through the lawmakers that oppose the legalization of the activity.

A Galloping Sports Betting Industry

In 2019, the U.S. sports betting market is expected to add a handful of other states, potentially reaching an overall of 12. This is close to the forecasts for 2030 when no more than 20 states are expected to have official sports betting activities.

This excludes Daily Fantasy Sports (DFS) and electronic sports (esports) are not included in the restrictions that states usually levy against mainstream sports. However, they are operating in a dangerous loop hole.

Carmen Thompson

Carmen is our residential reporter always on the move and hunting down the latest scoops and rumours to explore. Nothing gets past her keen nose, especially when it comes to some serious Jelly Bean poker tournaments.