Australia
Jumbo Interactive Announces FY2020 Results
Australian online lottery retailer Jumbo Interactive has announced its FY2020 results. The company has reported an 8.7% year-on-year growth in revenue and is now targeting growth in markets such as the UK, US and Canada as it aims to increase sales to AU$1bn. Total sales for the 12 months to 30 June amounted to AU$348.6m ($251.0m), with revenue rising from $65.2m to $71.2m.
Its core Australia Lotteries saw revenue increase 6.9% year-on-year to $68.7m, aided by a $260,000 contribution from its burgeoning software-as-a-service business, as well as large jackpots driving customer activity.
In terms of spending for the year, costs of sales were up 5.1% to $5.3m, while administrative expenses also increased 46.5% to $23.6m. However, Jumbo was able to reduce marketing costs by 19.9% to $5.6m, while occupancy expenses were cut by 86.0% to $104,000 for the year.
After taking into account $222,000 in finance costs and $176,000 in fair value movement on financial liabilities, this left Jumbo with a $37.4m profit before tax, down slightly from $38.2m at the end of its 2019 financial year.
Jumbo paid $11.5m in tax during the year, and after also including a $676,000 negative impact from foreign currency translation, this meant comprehensive profit for the year amounted to $25.2m, down 4.6% from $26.4m in 2019. However, in terms of underlying earnings before interest, tax, depreciation and amortisation, this increased by 7.7% to $43.2m.
“The online lottery industry has experienced further growth and this is expected to continue, especially as we broaden the charity lottery tickets we are now selling through our Powered by Jumbo software, which we feel will not only assist our profitability but also the deserving charities we are focusing on. We have often been asked if the Covid-19 pandemic has had an effect on our operation. With the experience of our major shareholder and CEO Mike Veverka and his very skilled staff, we have been able to continue to work both within the office and from the staffs’ respective homes,” David Barwick, chairman of Jumbo Interactive, said.
Veverka said that with online sales of lottery tickets accounting for 28% of Australian sales, the industry “clearly has a lot of growth ahead.”
“Lotteries are perfect for the internet and customers enjoy a top quality experience whether they play on OzLottries.com or another lottery using the Jumbo platform. Continual innovation is driving the customer experience even higher and is ensuring lotteries continue to remain popular into the future.”
Veverka also highlighted Jumbo signing a long-term extension to its reseller agreement with Australian lotteries and gaming operator Tabcorp, saying this will help to support its growth plans moving forward.
“The recent 10-year agreement with Tabcorp is an important milestone as it gives Jumbo certainty and the ability to plan long term. The next 10 years will be exciting as the internet share of ticket sales race up as players, young and old, enjoy the experience of playing online,” he said.
“From humble beginnings with a single computer in 1995, Jumbo has navigated many challenges and is ready for the growth that lies ahead. Our staff and partners over the years deserve enormous credit for this growth due to their efforts and trust in the vision to grow through technology,” he added.
Jumbo’s international lottery advisor Richard Bateson said that the retailer has identified opportunities for its iLottery and iRetailer solutions in the US, as more states move lotteries online.
“The iLottery proposition provides lotteries with an integrated digital lottery channel that is more efficient and effective than its industry competitors. The iRetailer proposition provides lotteries with a standalone digital channel that is self-sufficient and does not require operating cost or marketing budget to be diverted from the lottery’s main operations,” Bateson said.
“Once there is an established foothold in Canada, management believes the model can be exported to other parts of the North American region, using the expertise of the local market in adjacent markets. The international ambition is to drive sustainable businesses in the UK, the US and Canada that will be used as a beachhead in each region to grow into other markets and sectors,” Bateson added.
Australia
VGCCC: Bookmaker Fined for Customer Safety Breaches
Registered online bookmaker VicBet has been fined $130,000 for 2 breaches of its customer care obligations.
Announcing the fine, Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM reminded the gambling industry of the potential for people to experience severe harm when rules are not followed.
“Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behaviour,” Ms Kimmitt said.
“It is an egregious betrayal of trust, for example, to continue to send marketing materials to a person who has self-excluded from a gambling venue or closed a betting account.”
The VGCCC’s investigations into complaints about VicBet found the bookmaker had:
• offered and provided a $1,800 bonus bet to a customer after they asked for their betting account to be closed in September 2022. VicBet was fined $50,000.
• repeatedly sent gambling promotional material to a customer after they permanently self-excluded from VicBet in March 2020. The penalty was an $80,000 fine.
It is an offence for a bookmaker to encourage or offer any credit, voucher or reward, or other benefit to induce an account holder to keep an account open after they have requested its closure.
Similarly, sending correspondence or promotional material to customers who have self-excluded contravenes the Victorian Bookmakers’ Association Code of Conduct.
“On these occasions, VicBet failed to live up to both its legal and social licences to operate, which include minimising the risk of harm to customers,” Ms Kimmitt said.
“Industry must respect the wishes of people who decide to have a break from, or quit, gambling. This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”
VicBet was given the opportunity to “show cause” as to why disciplinary action should not be taken. Submissions from its legal representative were considered prior to a determination being made.
The post VGCCC: Bookmaker Fined for Customer Safety Breaches appeared first on European Gaming Industry News.
Australia
Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer
Tabcorp Holdings Limited has appointed Michael Fitzsimons as its Chief Wagering Officer.
Mr Fitzsimons will oversee all core wagering functions including digital, retail, tote, trading, product and marketing. The position is part of the company’s evolved Executive Leadership Team structure, which was announced in December last year. The simpler structure will ensure all wagering functions will fall under one executive.
Mr Fitzsimons has over 20 years of global sports betting experience across the EU, US and Asia. He is currently Executive Director Wagering at Hong Kong Jockey Club (HKJC) where he leads strategy, trading, marketing, data and product development for fixed odds, parimutuel and lottery products.
His current role encompasses oversight of one of the world’s largest totes, including the World Pool platform, along with Risk Management of China Sports Lottery’s 120,000 betting branches. Prior to his role at the HKJC, Mr Fitzsimons was Director of International Trading and Operations at The Stars Group. During this time, he successfully launched the PokerStars Sportsbook and relaunched SkyBet in Germany and Italy. Mr Fitzsimons is on the executive of the World Tote Association (WoTA).
Tabcorp Managing Director and Chief Executive Officer elect, Gillon McLachlan, said: “Michael Fitzsimons is one of the world’s most sought after wagering executives and brings extensive global sports betting experience to Tabcorp. He has a deep knowledge of international sports betting, trading and tote. Michael is a rare find – he knows digital and retail wagering and is one of the few people in the world who can connect both to grow a wagering product.
“The creation of a Chief Wagering Officer is a significant uplift in wagering capability within our executive team. The simpler vertical structure brings all levers that grow wagering together under one executive to ensure first class execution.”
Mr Fitzsimons is expected to commence in the first half of 2025. His appointment is subject to relevant regulatory and probity approvals.
The post Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer appeared first on European Gaming Industry News.
Australia
Regulating the Game Announced New Money Laundering, Terrorism Financing Masterclass at 2025 Conference
Leading gambling law and regulation conference Regulating the Game has announced the latest addition to its 2025 Masterclass Series with KordaMentha to conduct a masterclass titled “ML/TF Risk Assessment – Tips, Tricks, and Missing Bits”.
The masterclass, to be delivered by Kordamentha’s Executive Director, Financial Crime Richard Lee; Director, Financial Crime Skye Arnott; and Manager, Financial Crime Ishaan Singh, will delve into how organisations can conduct meaningful risk assessments that drive actionable outcomes. Attendees will gain valuable insights into tailoring risk assessments to their unique business needs, identifying and addressing often-overlooked areas in risk assessments and leveraging outcomes to strengthen AML/CTF programmes effectively.
The hands-on masterclass is designed to equip participants with the tools and strategies necessary to elevate their organisation’s AML/CTF compliance and risk management practices. It is tailored for compliance professionals, risk managers and industry leaders seeking to build robust AML/CTF programmes.
“The Masterclass Series is all about empowering attendees with practical skills and actionable insights from leading practitioners,” said Paul Newson, Principal at organiser Vanguard Overwatch.
“KordaMentha’s team brings a wealth of expertise in financial crime, and this session is a must-attend for anyone serious about enhancing their AML/CTF frameworks.”
Alice Saveneh-Murray, partner at KordaMentha, said: “The expectations of regulators in this space continues to increase, especially following the announcement of the AML/CTF Modernisation Reforms. It has never been more critical for AML/CTF professionals to have the skills necessary to conduct a thorough and compliant risk assessment. Our team are pleased to be able to share best practices, strategies and common pitfalls to avoid so participants are empowered meet the requirements of the new regime with confidence.”
Regulating the Game will take place at Sofitel Sydney from 10 to 13 March 2025, bringing together global leaders, regulators, and industry professionals to address key challenges, explore innovative solutions and drive sector leadership. Now in its fifth edition, the conference provides expert content, fosters meaningful discussions on policy and sector challenges and drives innovation to underpin effective and efficient gambling regulation.
The post Regulating the Game Announced New Money Laundering, Terrorism Financing Masterclass at 2025 Conference appeared first on European Gaming Industry News.
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