

Industry News
GVC Holdings: Q1 Trading and COVID-19 Planning Update
GVC Holdings PLC, the global sports betting and gaming group, today reports trading for the period from 1 January to 31 March 2020 (“Q1”) and provides a further update on the impact of COVID-19 and the mitigating actions being taken. This follows the Group’s previous announcements of 16 and 17 March 2020.
Summary
- GVC started the year well, with Group net gaming revenue (“NGR”) +1% and Online NGR up +19%cc1 in the first quarter
- However, the closure of retail outlets and the cancellation of sports events significantly reduced revenue from mid-March
- In previous announcements the Group estimated the impact of COVID-19 before any mitigating actions equates to a reduction in EBITDA2 of approximately £100m3 per month
- However, following the initiation of a number of mitigating actions the Group now expects to reduce this EBITDA impact to approximately £50m per month
- As a result, the average monthly cash outflow would be limited to approximately £15m per month, and the Group is confident that further cost actions will enable it to achieve its target of reducing the cashflow to breakeven
- The Group’s financial position remains robust, however given the ongoing uncertainty regarding timings of the easing of shutdown measures around the world, the Board has taken the prudent decision to withdraw the second interim dividend that is due for payment on 23 April 2020
Kenneth Alexander, GVC’s CEO, commented:
“As our Q1 trading numbers once again demonstrate, GVC is a business that, in normal times, delivers an outstanding performance. However, while our global and product diversification is standing us in good stead during the current uncertainty, the COVID-19 pandemic is posing an unprecedented challenge to our business and our industry. We are responding decisively, and have put in place a range of measures to keep our people safe, strengthen our financial position, limit cash outflow, preserve jobs and maintain a compelling customer offer. I am confident that we will emerge from this period in a position of strength, and we will be well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.
“We are also sensitive to the fact that at this time of economic stress and isolation, it is vital that we ensure a safe, responsible and enjoyable gaming environment for our customers and do everything that we can to minimise the potential for harm. Accordingly, not only have we supported the Betting and Gaming Council’s 10 pledge action plan on safer gambling, but we have gone further and introduced a range of additional safeguarding measures to ensure that we are able to rigorously monitor and protect anyone who may be vulnerable at this time.
“Finally, I would like to thank our outstanding teams around the world for the manner in which they have rapidly adapted to the challenge, and for their continuing hard work and commitment to ensuring GVC’s long-term success.”
Current trading
In its 2019 full year results on 5 March 2020, GVC reported that the current year up to 23 February 2020 had started strongly. That momentum continued until the Group started to see the impact of COVID-19 on sporting events and store closures in mid-March.
The performance of the Group for the year to 31 March 2020 is set out in the table below, with key highlights as follows:
- Total Group NGR +1% (+2% cc1)
- Online NGR +16% (+19% cc1), with continued strong growth in all major territories
- UK Retail like-for-like (“LFL”)4 NGR -19%
- European Retail NGR -3% (flat cc1) supported by continued market share gains in Italy
- For the period 1 January to 15 March 2020 all divisions performed strongly, supported by favourable sports margins:
- Group NGR +9% (+11% cc1)
- Online performed strongly across both gaming and sports, with NGR +20% (+23% cc1). Since then there has been an encouraging performance in gaming in the absence of sporting events, in line with the Group’s expectations
- UK Retail like-for-like (“LFL”)4 NGR -5% despite the annualisation of the triennial review impacts
- European Retail delivered strong NGR growth at +20% (+24% cc1)
Period 1 January to 31 March 2020 | ||||
Total NGR | Total NGR cc1 | Sport Wagers | Sports Margin | |
Online | ||||
Sports | 17% | 21% | (12%) | 2.5pp |
Gaming | 17% | 18% | ||
Total Online | 16% | 19% | ||
UK Retail (LFL3) | (19%) | (19%) | (8%) | 3.3pp |
European Retail | (3%) | flat | (21%) | 3.7pp |
Total Group | 1% | 2% |
For the avoidance of doubt, the guidance provided on 5 March 2020 is withdrawn.
Impact of COVID-19
On 16 and 17 March 2020 GVC provided assessments of the impact of cancellations of sporting events and store closures on Group EBITDA3 for the year to 31 December 2020. These announcements were based on the Group’s modelling which assumed that: a) football is suspended across Europe; b) major sporting events are cancelled or postponed (Aintree, Royal Ascot, Euro 2020 etc); c) horse racing in the UK and Ireland is suspended; d) all retail outlets in the UK, Republic of Ireland and mainland Europe are closed; and e) there would be a modest increase in GVC’s gaming business which accounts for 57% of Online NGR. Taken together, GVC estimated that these events would result in a reduction in EBITDA of approximately £100m3 per month before any mitigating actions. This would break down by the Group’s key reporting divisions as approximately 20% for Online, 63% for UK Retail and 17% for European Retail.
Mitigating actions
GVC’s teams around the world are working hard to reduce costs and re-prioritise activity in order to preserve free cash, whilst continuing to offer its customers great gaming experiences and to position the Group to emerge from the current restrictions in a position of strength. A number of opportunities have been identified so far which reduce costs by approximately £50m per month.
For example, in the UK GVC is eligible to receive the government grant towards employment costs as we furlough retail colleagues and retain them on full pay, as well as the business rates relief, which together the Group estimates will reduce costs by nearly £20m per month.
In Italy and Belgium GVC operates a franchising model where the store operating costs (rent, employment, utility and other costs) primarily reside with the franchisee.
Other measures taken include reductions in online sports marketing, sports content and trading costs.
Resultant estimated cash outflow
After adjusting for the impact on EBITDA, adding additional cash costs incurred (such as interest, capex, tax and other costs) and allowing for retail capex reduction, the average monthly cash outflow would be approximately £15m per month. The Group continues to work through cost mitigation opportunities and is targeting a break-even cashflow per month objective, thereby preserving cash at broadly current levels during this period of retail closures and reduced sporting events.
The following table sets out, for illustrative purposes only, the effect of our modelling and mitigating actions on EBITDA and average cashflow over a month of severe COVID-19 impacts:
Impacts of COVID-19 and mitigations | Estimated average monthly amounts |
Consensus EBITDA2 for FY2020 as at 31/1/20 | £65m |
Total EBITDA impact before mitigating actions | £(100)m |
Mitigating actions | £50m |
Net EBITDA | £15m |
Other cash costs incurred (including capex, interest, tax and other items) after retail capex mitigation | £(30)m |
Net cash utilisation | £(15)m |
Financial position
GVC is in a robust financial position, with net debt/EBITDA as at 31 December 2019 of 2.69x. The Group had accessible cash of over £350m at 31 March 2020, of which over £250m is cash at hand after excluding cash held on behalf of customers, cash in shops, ringfenced PSP funds and other items which may not be immediately available.
In addition, GVC has a £550m Revolving Credit Facility (RCF) which is currently undrawn. This facility has a financial covenant which is only tested if the facility is drawn by more than 35% at a quarter-end. The covenant measure is calculated on a trailing 12-month pre IFRS 16 basis with a net debt/EBITDA limit of 4X. Unrealised synergies can be added to EBITDA.
GVC currently has two bonds in issue, totalling £500m. One of £100m is due 2022 and one of £400m is due 2023. In addition, the Group has Term Loans of €1,125m and $786m, both due 2024.
Dividend
Due to the ongoing uncertainty as to how long restrictions as a result of COVID-19 will be in place around the world, the Board has taken the prudent decision to withdraw the payment of the second interim dividend of 17.6p per share announced on 5 March 2020. This was due to be paid on 23 April 2020 with a total cash cost of £103m. However, the Board recognises the importance of dividends as a part of shareholder returns and will consider dividends with future results announcements.
2019 Annual Report and Annual General Meeting (“AGM”) and Directors Remuneration
The Group’s annual report for 2019 is today published on the Group’s website at gvc-plc.com. Copies will be posted to those shareholders requesting a hard copy as soon as it is practical to do so. The 2020 AGM was scheduled to be held on 30 April and in normal circumstances an AGM Notice would be circulated with the annual report. Owing to the public health guidance on social distancing, the Board has decided to postpone the AGM. The Group will issue an AGM Notice once the Board is confident it can safely hold a meeting on a specified date.
The 2019 Annual report sets out details of the directors’ 2019 incentive outcomes and 2020 implementation. However, the payment of directors’ 2019 bonuses and the grant of the 2020 LTIP awards have been postponed. The Remuneration committee will consider the impact of COVID-19 on GVC’s performance and remuneration in due course and review the implementation of the policy for 2020 as appropriate.
Notes
- Growth on a constant currency basis is calculated by translating both 2020 and 2019 performance at the 2020 exchange rates.
- As at 31 January 2020, company compiled EBITDA consensus for the financial year to 31 December 2020 was £776.3m on a pre-IFRS 16 basis.
- The £100m approximate impact on monthly EBITDA is derived from the two announcements of 16 & 17 March as follows: The EBITDA impact over 3.5 months of sports and major events cancelations and European Retail closures of approximately £130m – £150m equating to approximately £37m – £43m per month; the EBITDA impact of UK Retail store closures of approximately £45m – £50m per month; and the EBITDA impact of the cancellation of horse racing in the UK & Ireland of approximately £20m- £25m per month. Taking each of these at the mid-point and allowing for overlap derives an approximate monthly impact on EBITDA of £100m.
- UK Retail numbers are quoted on a LFL basis. During the period, there were an average of 3,131 shops in the estate, compared to an average of 3,464 in the same period last year.
About GVC Holdings PLC:
GVC Holdings PLC is one of the world’s largest sports-betting and gaming groups, operating both online and in the retail sector. The Group owns a comprehensive portfolio of established brands; Sports Brands include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Gaming Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group owns proprietary technology across all of its core product verticals and in addition to its B2C operations provides services to a number of third-party customers on a B2B basis. The Group has also entered into a joint-venture with MGM Resorts to capitalise on the sports-betting and gaming opportunity in the US. The Group, incorporated in the Isle of Man, is a constituent of the FTSE 250 index and has licences in more than 20 countries, across five continents.
For more information see the Group’s website: www.gvc-plc.com
Gambling in the USA
Gaming Americas Weekly Roundup – August 11-17

Welcome to our weekly roundup of American gambling news again! Here, we are going through the weekly highlights of the American gambling industry which include the latest news and new partnerships. Read on and get updated.
Latest News
AU10TIX announced the launch of a free Child Safety Age Assurance Risk and Readiness Assessment and Age Assurance Readiness Guide designed to help businesses better understand their risk and tailor their strategy to meet regulatory obligations. They support AU10TIX’s Selfie-based Age Estimation service, which delivers the industry’s most precise and unbiased age assessment in just two seconds. In the US, federal legislation such as the Children’s Online Privacy Protection Act (COPPA) requires parental consent for users under 13, while the California Consumer Privacy Act mandates age verification for websites accessed by users under 16. Additionally, 19 U.S. states now enforce mandatory age checks for adult content and gambling platforms. Similar regulations are impacting social media and online services in the UK, EU and Australia.
Caesars Entertainment has launched its third fully in-house developed proprietary online casino title: Signature American Roulette. Now live in New Jersey, the game is available across Caesars Palace Online Casino, Caesars Sportsbook & Casino and Horseshoe Online Casino, bringing another standout addition to the Company’s Signature table game series. Developed by Empire Creative, Signature American Roulette reflects Caesars’ growing investment in building its own proprietary content, a cornerstone of its online casino strategy aimed at delivering a best-in-class player experience. Signature American Roulette follows the recent launches of fan-favourite Signature titles, Caesars Palace Signature Multihand Blackjack Surrender in May and Signature Blackjack Surrender in June, both also developed by Empire Creative.
Novig announced the successful close of an $18 million Series A funding round. The round was led by Forerunner, with participation from existing investors Y Combinator, NFX, Perceptive Ventures and Gaingels. Founded by Jacob Fortinsky and Kelechi Ukah, Novig is reimagining sports predictions as a transparent and fair marketplace. Unlike traditional sportsbooks, Novig allows users to trade directly with one another, rather than against the house, eliminating hidden fees, biased odds and the risk of being penalised for winning.
Partnerships
IGT announced that it has secured a multi-year sports betting technology and services agreement with Hipodromo de Agua Caliente SA de CV and Distribuidora Internacional de Equipos de Juego, S. De R.L. De C.V. that will significantly extend IGT PlaySports’ footprint to Mexico and Latin America via Corporación Caliente. Per the agreement, 42 Caliente sportsbooks in Mexico will leverage the IGT PlaySports platform and services from the Company’s Trading Advisory Services Team. Through a phased rollout, Caliente will also be able to provide select sportsbooks operators throughout Latin America access to IGT PlaySports’ technology, extending the technology’s reach to more than 100 additional venues across eight countries.
CT Interactive has announced a strategic partnership with Ondiss. Through this collaboration, CT Interactive’s top-performing titles are now integrated into the Ondiss platform, significantly expanding the company’s reach within the region’s regulated iGaming market. This integration adds value to the broad Argentine audience of Casino & Hotel Casino Magic S.A., which successfully uses the Ondiss platform. With CT Interactive’s certified and player-favourite content now available, operators on the platform are empowered to diversify their offerings and meet the increasing demand for engaging, high-quality games.
The post Gaming Americas Weekly Roundup – August 11-17 appeared first on European Gaming Industry News.
Industry News
PAGCOR Opposes Online Gambling Ban Amid Pressure to Criminalise the Industry

PAGCOR, the Philippine gaming regulator, has opposed a proposed ban on online gambling, despite mounting nationwide calls to criminalise it over soaring numbers of addiction, debt and mental health cases.
The online gambling sector in the Philippines has been growing exponentially, with gross revenues jumping from $140M in 2022 to $2.4B in 2024, according to Senate Committee on Games and Amusement data.
The committee held a hearing last week, highlighting the human cost of the industry, with its members demanding to outlaw it, saying the country was facing a full-blown public health and social crisis.
Sen. Erwin Tulfo, who led the hearing on online gambling, warned that “as long as online gambling exists, we are breeding the next generation of addicts, debtors, and broken families.”
He called for a ban and to “prosecute not only the operators, but also the enablers — in the government and in the private sector — who profit from this misery.”
PAGCOR, which is both an operator and regulator, said it “is not in favor of a total ban and instead advocates for stricter regulation.”
The regulator said that illegal operators are the real problem.
“Unfortunately, many of these unregulated online operators are based overseas who target Filipinos, most of whom do not realize that the sites they are playing on are not licensed by PAGCOR. This is where problems arise, especially regarding age restrictions.”
But a survey cited by senators indicates that age was not the main issue. It indicated that 66% of Filipinos aged 18 to 40, and 57% of those aged 41 to 55 were engaged in online gambling. Nearly a third bet multiple times a week, some wagering up to $53 per session.
Majority Leader Joel Villanueva warned online gambling is a “growing national crisis” in the Philippines.
“People are not just risking their hard-earned money. They are putting their futures, families, and lives on the line. The lure of instant wealth has already led many down a path of addiction, debt, and despair,” he said.
“Online gambling is not just a matter of financial loss. It is strongly associated with serious mental and physical health issues, broken relationships, family conflict, increased cases of domestic violence and suicide, crime against persons and property, and ultimately, the erosion of opportunities and dignity in the lives of many Filipinos.”
The post PAGCOR Opposes Online Gambling Ban Amid Pressure to Criminalise the Industry appeared first on European Gaming Industry News.
Industry News
UNLV International Gaming Institute Launches New AI Research Hub

The UNLV International Gaming Institute has launched a new AI Research Hub (AiR Hub) to tackle some of the most pressing challenges facing the gaming industry’s digital transformation.
Co-founder Kasra Ghaharian, the institute’s director of research, said the AiR Hub will address critical questions reshaping the sector: How is artificial intelligence transforming gaming operations? What governance frameworks should guide AI implementation in this traditionally regulated industry? Which emerging technologies must operators master to stay competitive? And how can the sector effectively integrate responsible AI practices with cutting-edge academic research?
“So all of these things that you might expect a research institution to do,” Ghaharian said, “we wanted to do specifically for this intersection of AI with gambling.”
While scattered research around AI in gaming has existed, Ghaharian said there hasn’t previously been a central hub for it. He and AiR Hub co-founder Simo Dragicevic, an International Gaming Institute (IGI) adjunct fellow, saw the opportunity to generate evidence, research and insight that could help the industry better understand and navigate AI technology.
“I think IGI has always had this place to be a thought leader in terms of knowledge, insights for the breadth of stakeholders across the gambling industry. And with the growth and expansion of this new technology, which is artificial intelligence, I think it’s important for us to continue that reputation,” Ghaharian said.
AI is and will continue to have a fundamental impact on all aspects of society, said Dragicevic, who is an industry veteran with experience in gaming software, regulation and AI.
As the gaming industry naturally focuses on product innovation and growth, it’s important someone is also looking at the potential safety aspects that may arise from AI — and AiR Hub is prepared to take on this critical role, Dragicevic said.
“Given the arguably controversial nature of the gambling industry and the gambling product, when it intersects with this technology — which, in and of itself, is controversial — I think that highlights the need for scrutiny; for some research to help guide the ship,” Ghaharian said.
The AiR Hub has received financial support from a variety of industry stakeholders, Ghaharian said. Founding industry members will also serve on an industry advisory panel to ensure that what the hub is doing is practical and relevant.
“It’s kind of that analogy of the ivory tower, right?” he said. “We don’t want to be just in a silo, not speaking to the industry, doing research that we think is relevant, that might not be applicable.”
There’s a reason the new entity is called a “hub” and not a “lab,” Dragicevic said, and that’s to emphasize its collaborative nature.
AiR Hub will build a framework and tools for regulators to help them ask the right questions before making any decisions on whether regulations need to adapt to change, he said, by inviting them to work with academics and partner universities in the early stages of projects.
It will also be important to engage the industry to ensure framework and tools are practical and factor in the complexities and nuances of the industry, Dragicevic said.
The post UNLV International Gaming Institute Launches New AI Research Hub appeared first on European Gaming Industry News.
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