News
Newgioco Reports Full Year 2018 Results
Reading Time: 10 minutes
GGR Up 61%; 89% Increase in Handle;
Newgioco Group, Inc., a sports betting and gaming technology company providing regulated online and land-based gaming and wagering through licensed subsidiaries in Italy and Austria, and headquartered in Toronto, Canada, reported its financial and operating results for the 12 months ended December 31, 2018.
Full Year 2018 Financial and Business Highlights
- Revenue of $34.6 million, up 51.2%
- Gross gaming revenue (GGR) of $37.7 million, up 60.8%
- Handle of $413.2 million, up 89.1%
- Income from operations of $427,274, down 83.5% due to $3.1 million in non-recurring expenses including $1.0 million in investments for future growth, $1.6 million relating to legacy activities and items outside the normal course of business and $500,000 for executive compensation forgone in prior years
- Net loss of $3.05 million compared to net income of $1.4 million in 2017
- Adjusted EBITDA of $3.6 million compared to $2.6 million in 2017
- Accelerated roll out in rapidly developing U.S. sports betting market
- Significant progress made in strengthening management team and board of directors
- Conference call scheduled for 4:30 p.m. ET on March 7, 2019
“Newgioco generated more than $413 million in total handle in 2018, an 89.1% improvement over 2017 volume, demonstrating our continued, strong growth,” commented Michele (Mike) Ciavarella, Newgioco Chief Executive Officer. “Our web-based handle grew 120.9% to $235.9 million, becoming our largest revenue stream. In addition, regulated products like online poker and online casino, continue to grow rapidly, reducing the impact of volatility from our sports betting revenue. As this trend continues, the quarter-to-quarter impact of sports betting on our profitability should decrease, giving us greater visibility and predictability into our quarterly revenues.”
“On the sportsbook side, the fourth quarter, while favorable for bettors, was a challenging one for the industry operators, and December especially so, resulting in abnormally low conversion ratios,” added Mr. Ciavarella. “However, our industry leading risk management capabilities enabled Newgioco to maintain hold ratios which far exceeded industry averages. Looking into 2019, we are expecting our handle exclusively from Italian operations to exceed $500 million. Growth from other geographies, regulated web-based revenue streams and software service fees in the U.S. and other markets are expected to be incremental to this baseline, helping accelerate our overall growth rates as we harvest the investments of the last year.”
“In the second-half of 2018, and especially in the fourth quarter, we increased our investments in anticipation of accelerating near-term growth,” concluded Mr. Ciavarella. “This included investments in our U.S. operation, a more expansive trade show presence and schedule, our expanded sales office in Naples, Italy, and our expanded risk management facility in Teramo, Italy, as well as the addition of six new vice presidents that recently joined Newgioco along with our new Chief Financial Officer. We expect these growth-related investments, which totaled more than $2 million in expenses in 2018, to drive accelerating growth in 2019 and beyond. In addition, we incurred $2.1 million in non-recurring charges, including $1.1 million in non-cash expenses, related to our convertible debentures, $508,000 in non-recurring charges and $500,000 for executive compensation forgone in prior years, which impacted our 2018 profitability.”
“With most of the investments behind us and our ELYS platform now fully developed, we believe we are poised for accelerated growth in 2019,” added Mr. Ciavarella. “We expect to add two to three U.S. tribal and/or non-tribal casinos as SaaS customers by the end of 2019, with a target of approximately 50,000 active U.S. domiciled players. With continued, steady growth in Italy, opportunities to expand in Europe, Africa, Asia and South America, and this greenfield opportunity in the U.S., we believe continued revenue growth is achievable and will lead to improved operating margins.”
Full Year 2018 Financial Summary
Revenue
For the full year 2018, revenue was $34.6 million, an increase of $11.7 million or 51.2%, compared to revenue of $22.9 million 2017. The revenue increase was mainly attributable to a significant increase in handle partially offset by a shift in gaming mix.
General and Administrative Expenses
General and administrative expenses for the year ended December 31, 2018 were $10.0 million compared to $5.6 million for the year ended December 31, 2017, an increase of 78.7%. The increase was primarily due to significant investments in growth of $1 million in technology development, marketing, legal and other professional fees in support of the company’s expansion to the U.S., $1 million related to legacy activities, $609,000 related to items outside the normal course of business and $500,000 for executive compensation that was forgone in prior years.
Direct Selling Costs
Direct selling costs represent the fees paid to the company’s network service provider, license fees and commissions for field agents and promoters and are based on percentage of handle (turnover). For the year ended December 31, 2018 direct selling costs were $24.1 million compared to $14.7 million for the year ended December 31, 2017, an increase of 64.5%. The increase was primarily due to the significant increase in handle.
Interest Expense
Net interest expense was $2.6 million for the year ended December 31, 2018, including $2.0 million of Non-cash interest associated with debentures issued in 2018. The increase from $482,000 in 2017 was the result of interest expense incurred on debentures issued in 2018.
Net Income (Loss)
As a result of all of the above, for the year ended December 31, 2018, net loss was $3.0 million, or ($0.04) per diluted share based on a weighted average of 75,887,946 shares outstanding. In comparison, for the year ended December 31, 2017 the company reported net income of $1.4 million, or $0.02 per diluted share based on a fully-diluted weighted average shares outstanding of 75,344,948. Net loss for the period included $1.1 million in costs related to the repayment of convertible notes, and $1 million in investments related to the U.S. launch and product readiness efforts. In addition, the 2018 net loss included $300,000 in reimbursement for the CEO’s relocation to the United States to support the U.S. launch, $308,000 in costs directly related to product readiness and the expansion of offices to support future growth, and $500,000 in compensation catch-up related to executive salary forgone in prior years.
Other Comprehensive Income / (Loss)
For the year ended December 31, 2018 the Company recorded an expense of approximately $831,000 for foreign currency translation adjustment, compared to income of approximately $166,000 for foreign currency translation adjustment for the year ended December 31, 2017.
Adjusted EBITDA
Excluding the $3.1 million in charges described above, adjusted EBITDA for the year ended December 31, 2018 was $3.6 million compared to $2.6 million for the full year 2017. A reconciliation from Comprehensive Income (Loss), as shown in the company’s Consolidated Statements of Operations and Comprehensive Income (Loss), to Adjusted EBITDA is included in the tables of this press release.
Balance Sheet Summary
The Company had $6.3 million in unrestricted cash and cash equivalents as of December 31, 2018 compared to $6.5 million as of December 31, 2017. The Company also increased its Restricted Cash by approximately $1 million from $588,000 to $1.6 million.
Total debt outstanding was $5.4 million as of December 31, 2018 compared to $2.2 million as of December 31, 2017.
Non-GAAP Financial Measure – Adjusted EBITDA
This news release includes information on Adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G.
Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period growth. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our Company and our management team.
Adjusted EBITDA is a non-GAAP financial measure. We calculate adjusted EBITDA by taking comprehensive income (loss) and adding back the expenses related to foreign currency translation adjustment, total other expenses(loss), income taxes, product readiness and U.S market launch and adjustment for salary figures in prior years. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures. Adjusted EBITDA should not be construed as a substitute for comprehensive income (loss) (as determined in accordance with GAAP) for the purpose of analyzing our operating performance or financial position, as Adjusted EBITDA is not defined by GAAP. A reconciliation of Adjusted EBITDA to comprehensive income (loss) is provided in the tables at the end of this press release.
Conference Call Information
The Company will host a conference call with investors and interested parties to review the results today at 4:30 p.m. ET. To access the conference call dial:
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• United States: |
1-877-407-0792 |
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• Toll-free: |
1-201-689-8263 |
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Reference confirmation code: 13688357 |
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A replay will be available until March 21, 2019 which can be accessed by dialing 1-844-512-2921 if calling within the United States or 1-412-317-6671 if calling internationally. Please use passcode 13688357 to access the replay.
The call will also be accompanied live by webcast over the Internet and accessible at http://public.viavid.com/index.php?id=133543.
About Newgioco Group, Inc.
Newgioco Group, Inc., headquartered in Toronto, Canada, is a vertically-integrated leisure gaming technology company, with fully licensed online and land-based gaming operations and innovative betting technology platforms that provide bet processing for casinos and other gaming operators. The Company conducts its business under the registered brand Newgioco primarily through its internet-based betting distribution network on its website, www.newgioco.it as well as retail neighborhood betting shops situated throughout Italy.
The Company offers its clients a full suite of leisure gaming products and services, such as sports betting, virtual sports, online casino, poker, bingo, interactive games and slots. Newgioco also owns and operates innovative betting platform software providing both B2B and B2C bet processing for casinos, sports betting and other online and land-based gaming operators. Additional information including information about EBITDA presentation is available on our corporate website at www.newgiocogroup.com and will remain on our website indefinitely as we will continue to present values for EBITDA.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are identified by the use of the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,” “predict,” “potential,” “project” and similar expressions that are intended to identify forward-looking statements and includes statements such as the quarter-to-quarter impact of sports betting on our profitability decreasing, our handle exclusively from Italian operations exceeding $500 million with industry leading conversion ratios, growth-related investments driving accelerating growth in 2019 and beyond, being poised for accelerated growth in 2019, adding two to three U.S. tribal and/or non-tribal casinos as SaaS customers by the end of 2019, and achieving revenue growth of 25% to 35%, with operating margins in the 10 to 15% range . These forward-looking statements are based on management’s expectations and assumptions as of the date of this press release and are subject to a number of risks and uncertainties, many of which are difficult to predict that could cause actual results to differ materially from current expectations and assumptions from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from current expectations include our ability to decrease the quarter-to-quarter impact of sports betting on our profitability, our ability to generate a handle exclusively from Italian operations exceeding $500 million with industry leading conversion ratios, our ability to implement growth-related investments to drive accelerating growth in 2019 and beyond, our ability to achieve accelerated growth in 2019, our ability to add two to three U.S. tribal and/or non-tribal casinos as SaaS customers by the end of 2019, our ability to achieve revenue growth of 25% to 35%, with operating margins in the 10 to 15% range, and the risk factors described in Newgioco’s Annual Report on Form 10-K and subsequent filings with the U.S. Securities and Exchange Commission, including subsequent periodic reports on Forms 10-Q and 8-K. The information in this release is provided only as of the date of this release, and we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events, except as required by law.
— Tables Follow –
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NEWGIOCO GROUP, INC. |
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December 31, 2018 |
December 31, 2017 |
|||||||
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Current Assets |
||||||||
|
Cash and cash equivalents |
$ |
6,289,903 |
$ |
6,469,858 |
||||
|
Accounts receivable |
10,082 |
116,489 |
||||||
|
Gaming accounts receivable |
1,021,052 |
1,163,831 |
||||||
|
Prepaid expenses |
124,712 |
87,692 |
||||||
|
Related party receivable |
49,914 |
— |
||||||
|
Other current assets |
55,700 |
12,543 |
||||||
|
Total Current Assets |
7,551,363 |
7,850,413 |
||||||
|
Noncurrent Assets |
||||||||
|
Restricted cash |
1,560,539 |
587,905 |
||||||
|
Property, plant and equipment |
354,799 |
280,111 |
||||||
|
Intangible assets |
12,583,457 |
3,245,748 |
||||||
|
Goodwill |
262,552 |
260,318 |
||||||
|
Investment in non-consolidated entities |
275,000 |
1 |
||||||
|
Total Noncurrent Assets |
15,036,347 |
4,374,083 |
||||||
|
Total Assets |
$ |
22,587,710 |
$ |
12,224,496 |
||||
|
Current Liabilities |
||||||||
|
Line of credit – bank |
$ |
750,000 |
$ |
177,060 |
||||
|
Accounts payable and accrued liabilities |
4,603,608 |
1,606,560 |
||||||
|
Gaming accounts balances |
1,049,423 |
1,274,856 |
||||||
|
Taxes payable |
1,056,430 |
1,555,371 |
||||||
|
Advances from stockholders |
39,237 |
547,809 |
||||||
|
Liability in connection with acquisition |
— |
142,245 |
||||||
|
Debentures, net of discount |
3,942,523 |
1,148,107 |
||||||
|
Derivative liability |
— |
222,915 |
||||||
|
Promissory notes payable – other |
— |
100,749 |
||||||
|
Promissory notes payable – related party |
318,078 |
318,078 |
||||||
|
Bank loan payable – current portion |
120,920 |
121,208 |
||||||
|
Total Current Liabilities |
11,880,219 |
7,214,958 |
||||||
|
Bank loan payable |
225,131 |
362,808 |
||||||
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Other long-term liabilities |
608,728 |
532,680 |
||||||
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Total Liabilities |
12,714,078 |
8,110,446 |
||||||
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Stockholders’ Equity |
||||||||
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Preferred stock, $0.0001 par value; 20,000,000 shares authorized, none issued |
— |
— |
||||||
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Common Stock, $0.0001 par value, 160,000,000 shares authorized; 75,540,298 |
7,555 |
7,415 |
||||||
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Additional paid-in capital |
23,956,309 |
14,254,582 |
||||||
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Accumulated other comprehensive income |
(1,081,338) |
(250,327) |
||||||
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Accumulated deficit |
(13,008,894) |
(9,897,620) |
||||||
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Total Stockholders’ Equity |
9,873,632 |
4,114,050 |
||||||
|
Total Liabilities and Stockholders’ Equity |
$ |
22,587,710 |
$ |
12,224,496 |
||||
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NEWGIOCO GROUP, INC. |
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For the year ended December 31, |
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2018 |
2017 |
|||||||
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Revenue |
$ |
34,575,097 |
$ |
22,865,146 |
||||
|
Costs and Expenses |
||||||||
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Selling expenses |
24,142,110 |
14,672,099 |
||||||
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General and administrative expenses |
10,005,713 |
5,597,881 |
||||||
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Total Costs and Expenses |
34,147,823 |
20,269,980 |
||||||
|
Income (Loss) from Operations |
427,274 |
2,595,166 |
||||||
|
Other Expenses (Income) |
||||||||
|
Interest expense, net of interest income |
2,614,837 |
482,367 |
||||||
|
Changes in fair value of derivative liabilities |
— |
(257,231) |
||||||
|
Imputed interest on related party advances |
761 |
24,365 |
||||||
|
Gain on litigation settlement |
(516,120) |
— |
||||||
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Loss on issuance of debt |
196,403 |
— |
||||||
|
Impairment on investment |
— |
6,855 |
||||||
|
Other Expense |
75,000 |
— |
||||||
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Total Other Expenses (Income) |
2,370,881 |
256,356 |
||||||
|
Income (Loss) Before Income Taxes |
(1,943,607) |
2,338,810 |
||||||
|
Income tax provision |
1,102,701 |
972,924 |
||||||
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Net Income (Loss) |
$ |
(3,046,308) |
$ |
1,365,886 |
||||
|
Other Comprehensive Income (Loss) |
||||||||
|
Foreign currency translation adjustment |
(831,011) |
166,304 |
||||||
|
Comprehensive Income (Loss) |
$ |
(3,877,319) |
$ |
1,532,190 |
||||
|
Income (loss) per common share – basic |
(0.04) |
0.02 |
||||||
|
Income (loss) per common share – diluted |
(0.04) |
0.02 |
||||||
|
Weighted average number of common shares outstanding – basic |
75,887,946 |
74,032,631 |
||||||
|
Weighted average number of common shares outstanding – diluted |
75,887,946 |
75,344,948 |
||||||
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NEWGIOCO GROUP, INC. |
||||||||
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For the years ended December 31, |
||||||||
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Cash Flows from Operating Activities |
2018 |
2017 |
||||||
|
Net income (loss) |
$ |
(3,046,308) |
$ |
1,365,886 |
||||
|
Adjustments to reconcile net income (loss) to net cash provided by |
||||||||
|
Depreciation and amortization |
488,464 |
601,266 |
||||||
|
Amortization of deferred costs |
58,188 |
100,329 |
||||||
|
Non-cash interest |
1,995,128 |
205,216 |
||||||
|
Loss on issuance of debt |
196,403 |
— |
||||||
|
Imputed interest on advances from stockholders |
1,514 |
24,365 |
||||||
|
Changes in fair value of derivative liabilities |
— |
(257,231) |
||||||
|
Unrealized loss on trading securities |
75,000 |
— |
||||||
|
Impairment (recovery) of assets |
(518,354) |
6,855 |
||||||
|
Stock issued for services |
— |
23,250 |
||||||
|
Bad debt expense |
6,354 |
135,953 |
||||||
|
Changes in Operating Assets and Liabilities |
||||||||
|
Prepaid expenses |
(95,209) |
(85,301) |
||||||
|
Accounts payable and accrued liabilities |
3,062,422 |
482,904 |
||||||
|
Accounts receivable |
100,053 |
(91,603) |
||||||
|
Gaming accounts receivable |
142,779 |
(654,287) |
||||||
|
Gaming accounts liabilities |
(225,433) |
435,771 |
||||||
|
Taxes payable |
(498,941) |
903,187 |
||||||
|
Other current assets |
(43,157) |
(2,304) |
||||||
|
Customer deposits |
— |
138,359 |
||||||
|
Long term liability |
76,048 |
26,059 |
||||||
|
Net Cash Provided by (Used in) Operating Activities |
1,774,952 |
3,358,674 |
||||||
|
Cash Flows from Investing Activities |
||||||||
|
Acquisition of property, plant, and equipment, and intangible assets |
(4,455,099) |
(180,722) |
||||||
|
Increase in restricted cash |
(972,634) |
(45,142) |
||||||
|
Net Cash Used in Investing Activities |
(5,427,733) |
(225,864) |
||||||
|
Cash Flows from Financing Activities |
||||||||
|
Proceeds from (repayment of) bank credit line, net |
750,000 |
165,925 |
||||||
|
Proceeds from (repayment of) bank loan |
(137,965) |
(109,104) |
||||||
|
Repayment of bank credit line |
(177,060) |
— |
||||||
|
Proceeds from debentures and convertible notes, net of repayment |
6,883,906 |
591,202 |
||||||
|
Advance to related party |
(49,914) |
|||||||
|
Purchase of treasury stock |
(2,261,307) |
— |
||||||
|
Advances from stockholders, net of repayment |
(508,572) |
(77,398) |
||||||
|
Net Cash Provided by (Used in) Financing Activities |
4,499,088 |
570,625 |
||||||
|
Effect of change in exchange rate |
(1,026,262) |
536,001 |
||||||
|
Net increase (decrease) in cash |
(179,955) |
4,239,436 |
||||||
|
Cash – beginning of the period |
6,469,858 |
2,230,422 |
||||||
|
Cash – end of the period |
$ |
6,289,903 |
$ |
6,469,858 |
||||
|
NEWGIOCO GROUP, INC. |
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(in thousands) |
For the year ended December 31, |
|||||||
|
2018 |
2017 |
|||||||
|
Comprehensive Income (Loss) |
$ |
(3,877,319) |
$ |
1,532,190 |
||||
|
Total Other Expenses (Income) |
2,370,881 |
256,356 |
||||||
|
Foreign currency translation adjustment |
831,011 |
(166,304) |
||||||
|
Income tax provision |
1,102,701 |
972,924 |
||||||
|
EBITDA |
427,274 |
2,595,166 |
||||||
|
Product Readiness and U.S. Market Launch |
1,019,500 |
— |
||||||
|
Items Relating to Legacy Activities |
1,000,000 |
— |
||||||
|
Items Outside the Normal Course of Business |
608,600 |
— |
||||||
|
Adjustment for salary forgone in prior years |
500,000 |
— |
||||||
|
Adjusted EBITDA |
$ |
3,555,374 |
$ |
2,595,166 |
||||
SOURCE Newgioco Group, Inc.
Source: European Gaming Media
This is a Syndicated News piece. Photo credits or photo sources can be found on the source article: Newgioco Reports Full Year 2018 Results
The iGaming industry is advancing at breakneck speed, driven by technological innovation and evolving player expectations. Itai Zak, Executive Director of iGaming at Digicode, emphasizes the importance of bridging client aspirations with customized business solutions. Key trends shaping the future of iGaming include live dealer games, blockchain integration, artificial intelligence (AI) and machine learning (ML), enhanced personalization, and shifting regulatory environments. Let’s delve into how these trends influence the industry, presenting new opportunities while paving the way for future growth.
A Closer Look at Emerging Trends
- Live Dealer Games
Live dealer games are revolutionizing the online gaming experience, blending the best aspects of land-based casinos with the convenience of virtual gaming. Players can now engage with real-life dealers via high-definition video streams, enhancing the social component of online gambling. This bridge between physical and virtual casinos introduces interactive features like live chat and immersive gameplay. Industry leaders like Evolution Gaming and NetEnt are setting new standards in player engagement with innovative game formats and top-tier studio setups, redefining the realism and appeal of live gaming.
- Blockchain and Cryptocurrency Integration
Blockchain technology is transforming iGaming by offering unparalleled transparency and security. With blockchain’s ability to enable provably fair gaming, players can verify that each round is fair via an immutable ledger. Cryptocurrencies like Bitcoin and Ethereum facilitate faster, more secure transactions, catering to tech-savvy players who value privacy. Platforms like Bitcasino.io are leading the way, leveraging blockchain to ensure fairness and seamless payments. However, the rise of blockchain also attracts regulatory attention, requiring operators to balance innovation with compliance as governments navigate this new technology.
- Artificial Intelligence and Machine Learning
AI and ML are instrumental in enhancing player experience and operational efficiency. AI algorithms analyze player behavior in real-time, offering personalized game recommendations and promotions. Additionally, AI-powered chatbots provide instant customer support, improving user satisfaction. AI-driven predictive analytics also help operators fine-tune marketing strategies based on player preferences. Companies like Bet365 are already using these technologies to stay ahead of the competition, offering more personalized and efficient gaming experiences.
- Richer Personalization and Engagement
Personalization has become crucial for iGaming operators looking to boost player satisfaction and retention. By leveraging data analytics, companies can offer tailored game recommendations, dynamic bonuses, and individualized promotional offers. This level of engagement enhances the player experience and strengthens loyalty. Industry pioneers like DraftKings and FanDuel push the envelope by offering highly customized features, such as personalized fantasy sports leagues and bespoke betting options.
- Regulatory Changes and Market Expansion
The constantly evolving regulatory landscape offers both challenges and opportunities for iGaming operators. As more regions legalize various forms of online gambling, companies gain access to new markets. With their large populations and increasing internet penetration, emerging markets like Brazil and Nigeria represent lucrative opportunities. However, navigating the diverse regulations in these markets requires agility and strict compliance with local laws to succeed.
- Enhanced Payment Solutions
With digital transactions becoming the norm, the demand for fast, secure, and flexible payment methods is skyrocketing. From digital wallets to instant banking and cryptocurrencies, players expect payment solutions that offer convenience and security. This growing demand is driving innovation in payment processing, giving operators more opportunities to streamline the transaction process while building trust with users.
Future Implications
The Expanding Role of AI and Blockchain
AI and blockchain are not just current trends, but they are poised to play an even more significant role in iGaming’s future. As AI technology evolves, more sophisticated algorithms will emerge, enabling real-time adaptation to player behavior and preferences. Blockchain’s application may extend beyond transparency and security, transforming game mechanics and player interactions potentially redefining how games are designed and played.
Shifting Player Preferences
Player expectations will continue to evolve toward immersive, interactive experiences. As Virtual Reality (VR) and Augmented Reality (AR) become more mainstream, they will significantly influence the future of iGaming. Players will demand more engaging, lifelike environments, pushing the industry to create innovative game formats and features that offer deeper immersion and entertainment value.
Regulatory Developments
The regulatory environment will continue to evolve, and iGaming operators must stay agile to navigate future changes. New regulations may increasingly emphasize responsible gaming and player protection, influencing platform design and operational practices. A more harmonized regulatory framework across jurisdictions could provide stability while requiring operators to prioritize compliance.
Integrating Emerging Technologies
Technologies like 5G and edge computing are set to revolutionize iGaming by enabling faster, more reliable connectivity. This will allow for more complex game designs and real-time player interactions, opening new avenues for innovative gaming experiences. As these technologies mature, operators will have greater opportunities to differentiate their offerings. The potential of these emerging technologies to revolutionize iGaming is truly exciting and promising for the industry’s future.
Final Thoughts
The iGaming industry is on the cusp of significant transformations, driven by technological advancements and shifting player demands. Innovations like live dealer games, blockchain integration, AI, ML, and enhanced personalization are just the beginning. As the industry evolves, staying ahead of these trends will be critical for operators looking to thrive in an increasingly dynamic environment.
At Digicode, we are constantly exploring new technologies and refining our solutions to meet the evolving needs of our clients. Our focus on adaptability and foresight ensures that our clients are not just keeping pace with the industry—they’re leading it.
The post Innovations Redefining iGaming: What Operators Need to Know appeared first on European Gaming Industry News.
A partnership between game developer Turbo Games and iGaming solution provider and aggregator Slotegrator began in November 2022 via the APIgrator game integration solution. Since then, the collaboration has been developing successfully — and now it’s time to analyze what made it successful.
Turbo Games has noticed how the new technologies spreading throughout the industry can work for the good of brand transparency and player loyalty: “We can already see how blockchain technology has made it possible to make betting checks more accessible to players. All you need is a blockchain-hash and a decoder service. We think we will continue to move in this direction. Many traditional online casinos do not offer the possibility to check the bet. Sooner or later we all have to come to this. Perhaps the development of artificial intelligence will help here, because we are already seeing its involvement in all spheres of human life.”
Turbo Games specializes in provably fair games. Provable fairness is a concept where players can verify their wins or losses using blockchain technology — the outcome of the game is dictated by a smart contract and is absolutely random, barring the possibility of any human involvement. Using cryptographic hashing algorithms, the gambling site and the player’s device both generate seeds (random strings of numbers). Players receive a key that allows them to check the results; if the results are the same as the game round they witnessed, it proves that there was no foul play.
According to statistics from Turbo Games, the audience for provably fair games is mostly between 18 and 25 years old. However, there are also players aged 35-40 who prefer traditional games but would like to try something new, and have turned their attention to provably fair games.
There are good odds that the technology of provably fair games will become more popular, if not even commonplace, because it gives players a feeling of transparency and proves that the business is trustworthy without the need to search through dozens of reviews. Whereas many innovations in iGaming simply add entertainment, provable fairness addresses security concerns and reassures players that they’re not being exploited, which is invaluable.
Provably fair games are beneficial for both players and online casinos. Vadim Potapenko, Head of Sales at Turbo Games, comments: “It often happens that the users are not satisfied with the result, because gambling is not only about big wins, but also possible losses. By allowing them to check the fairness of a bet, we make life easier for platforms and players. Of course, this allows us to communicate with partners and users that we work honestly and that’s why they should trust our games.”
Ayvar Gabidullin, Business Development Manager at Slotegrator, adds that “this type of game is now becoming more and more popular and has great potential for both players and game providers in the future. On the part of the player, the advantage is that the player can always be sure that his game is fair and he can independently check any of his bets. And for the game provider, this also simplifies the process of implementing casino games, since now it will not be necessary to obtain the appropriate certificates from independent laboratories before launching new games, they can immediately enter the market with these games and where anyone can check the result and make sure that that there is no cheating with players. Many game providers are starting to look towards this type of game. And as far as I see, many operators are starting to think about adding these games.”
What do players in 2023 need? The iGaming industry is all about reputation and trust. Players have a huge number of platforms to choose from, making them pickier and pickier. There’s an abundance of forums where players leave reviews, so if players view a brand as untrustworthy, there are plenty of places they can share their opinion. Provable fairness not only stops that from happening, it provides evidence to the contrary, giving players something else to talk about.
Slotegrator also recommends investing time and effort into localization and creating an effective and detailed marketing strategy — before trying provably fair technology players need to get to the platform, and there is no acquisition without marketing.
ABOUT SLOTEGRATOR
Since 2012, Slotegrator has been one of the iGaming industry’s leading software and business solution providers for online casino and sportsbook operators.
The company’s main focus is software development and support for online casino platforms, as well as the integration of game content and payment systems.
The company works with licensed game developers and offers a vast portfolio of casino content: slots, live casino games, poker, virtual sports, table games, lotteries, casual games, and data feeds for betting.
Slotegrator also provides consulting services in gambling license acquisition and business incorporation.
More information: https://slotegrator.pro/
ABOUT TURBO GAMES
Turbo Games — a provably fair games provider that belongs to Turbo Stars company — has an ambitious goal to establish widespread recognition throughout the iGaming world. Even though it is young, the company consists of professionals who have been working on the brand for over five years and are even planning to introduce a new brand for a wider audience soon.
Turbo Games also works in Europe, India, and South Africa, where the company sees the most potential and expects the same “hype” as in Brazil.
The portfolio of Turbo Games consists of 21 titles, including well-known games like Mines, Crash X, DoubleRoll, Hi-Lo, and Plinko. The studio releases a game every month. However, not all games are developed from scratch. Wicket Blast and Spin Strike, the last two releases, are based on cricket and the Indian Premier League. Crash X remains the most popular fast game in the Turbo Games portfolio, and the studio reports that crash games enjoy stable levels of popularity. Overall, the main focus of the brand is provably fair games.
More information: https://turbogames.io/
Looking to take your career to the next level in the games industry? Then, Nordic Game Talents is the place to be! Games Factory Talents has teamed up with Nordic Game to bring you Nordic Game Talents.
From Oct 27-29, the online and interactive event is dedicated to recruitment and career building in the creative & games industry within the Nordic region. The event empowers participants to be part of a bigger community and motivates them to explore new paths in achieving their career goals.
Hiring creative & games studios – Supercell, Funcom, Panzerdog, Tactile Games, Gamecan, Fingersoft, Dazzle Rocks, Redhill Games to name a few from the Nordic region will be participating in the event. These studios will share information on their latest projects, work culture and what it takes to be part of their team. The individual games associations from Finland, Denmark, Sweden, Norway and Estonia will share insights through live sessions on the booming games industry in their respective countries. Career development topics pertinent to job seekers like – How to have a successful first interview, Creative Portfolio reviews will also be discussed.
Experienced game industry professionals and individuals beginning their careers from around the world are welcome to join the event. One-to-one interviews with the hiring studios can be scheduled through the event platform. A great opportunity to get to know the studios and network with game professionals from around the world.
Participating in the event
As a job seeker attending Nordic Game Talents, take a few minutes to fill out a simple registration form. After filling the registration form you will receive a link to the online event platform – PINE, to join the event on 27th October. Participants joining Nordic Game Talents will also receive a free-of-charge pass to the Nordic Game Conference.
To view the complete agenda, please click here and to learn more about the event please visit Games Job Fair
About Games Factory Talents
A Helsinki-based talent attraction agency dedicated to the games & creative industry. Our services include direct recruitment, organizing game job fairs and managing a community of game industry professionals through our GameDev Talent Board.
To learn more about Games Factory Talents visit – Games Factory Talents
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