Ainsworth Game Technology Ltd expects its second-half profit before tax to be down sequentially, despite an increase in revenue.

The Australia-listed firm said it anticipated profit before tax for the six months to December 31 – excluding currency exchange impacts and one-off items – to be in the range of AUD8 million (US$5.2 million) to AUD10 million. That would be in comparison to the AUD14-million profit achieved in the first half this year.

Revenue for the July to December period is expected to “show an estimated growth of 12 percent” compared to the AUD121.4 million reported in the six months to June 30, Ainsworth said in a Wednesday filing.

The company said the estimate was “based on preliminary management forecasts, subject to period end closure and audit procedures”.

“These results reflect the positive momentum achieved across the business,” stated the firm.

It added: “All geographical regions experienced solid growth in the period apart from the digital segment which suffered an initial decline following the reduced contributions from Game Account Network Ltd (GAN), following the acceleration of revenue arising from the termination of exclusivity arrangements reflected in the first half of calendar year 2024.”

Ainsworth however noted that gross margins were “negatively impacted” compared to the first half of 2024, “which was the primary factor contributing to the lower profitability experienced in the period”.

The firm said it expects full-year 2024 gross margin to be “approximately 62 percent” compared to the reported margin of about 67 percent in the first half this year.

“The forecasted margin has been adversely affected by a range of factors, including product mix of products sold within Latin America, competitive market conditions and the under recovery of production variances expensed in the current period,” noted the gaming supplier.

Ainsworth’s chief executive, Harald Neumann, said: “I am encouraged by the growth in revenue in the period and expect growth to continue in coming periods as we release the next suite of game offerings across our global markets.”

Mr Neumann said the initiatives undertaken by the company were showing “progressive improvements in game performance” within the markets where the company operates.

“Additional game releases and hardware initiatives are expected to maintain the growth experienced in coming periods,” added the CEO.

In Tuesday’s filing, Ainsworth also said it had “experienced a cybersecurity incident,” which was “currently under investigation and assessment”.

“Despite some disruptions experienced in internal business systems and operations, through cautionary measures implemented, it is currently not expected that this incident will have any material adverse impact on the forecasted results” for the second half this year, stated the firm.

Gambling operators in the UK face a tax of as much as 1.1% of profits on some types of games as the government seeks £100 million ($126 million) a year to invest in harm reduction and research.

The planned statutory levy on all licensed operators will range from 0.1% to 1.1% of the gross gambling yield, depending on the sector and nature of the gambling, according to a statement Wednesday from the UK’s Department of Culture, Media and Sport.

The UK has over the last few years introduced stricter regulation of gambling, including requiring operators to reduce the intensity of online games, carry out financial vulnerability checks of players and provide customers with better control over the types of marketing they receive. Many of the measures were announced under a Conservative government, which lost to the Labour Party in July’s General Election.

The government will review the charge within five years of its introduction, with the first formal review expected by 2030, according to the statement.

UK gambling stocks soared last month after UK Chancellor Rachel Reeves’ budget did not include much-speculated tax hikes on the sector.

The statutory levy is a separate initiative, proposed under the Conservative government in a 2023 white paper on gambling reform.

The announcement was welcomed by anti-gambling campaigner Matt Zarb-Cousin, who said that he was “really pleased” that it is being introduced. “It will totally transform the research, prevention and treatment of gambling harm,” Zarb-Cousin said.

The four biggest gambling operators – Entain Plc, Flutter Entertainment Plc, William Hill-owner Evoke Plc and Bet365 – previously pledged to pay 1% of their gross gambling yield to an industry-funded charity GambleAware in anticipation of the levy.

In the year ending in March, the charity said it received donations of £49.5 million, £46.6 million of which came from the top four operators.

“This represents a significant step towards protecting people from gambling harm. The levy is also a crucial step towards ensuring continued support through a statutory system and is something we have been calling for since 2017,” GambleAware CEO Zoë Osmond said of the plans in a statement.

The Betting and Gaming Council, which lobbies for the industry, said that it supports plans for the levy outlined in last year’s proposal.

“Ministers must not lose sight of the fact the vast majority of the 22.5 million people who enjoy a bet each month, on the lottery, in bookmakers, casinos, bingo halls and online do so safely,” Betting and Gaming Council Chief Executive Officer Grainne Hurst said in a statement.

Are you fascinated by the world of iGaming? Want to start your own online gaming company but don’t know how? Get ready to find all your answers today. To help navigate the ins and outs of the iGaming world, we sat down with Jamie Wall—a former game developer at NetEnt with deep expertise in casino mechanics.

The upcoming article highlights all the important aspects of that interview. The conversation was very detailed. Read on, and you’ll gain enough knowledge to start your own company.

Thank you for joining us today, Jamie. First, please give us an overview of the different types of companies in the iGaming industry. Also, why is it important to learn about them?

Jamie Wall: Absolutely, it’s a pleasure to be here! See, the domain of the iGaming industry is spread across a wide range of businesses. Each company may focus on a different type of gaming. So, before you create one for yourself, it is important to understand all the available types. By doing so, you can choose which one works best for you. You can focus on one type of gaming, like online casinos, or offer more than one.

The core categories include online casinos, sports betting sites, esports betting sites, and poker rooms.

Can you please elaborate further?

Jamie Wall: Online casinos are virtual platforms that allow people to play traditional casino games without leaving their homes. Players can enjoy games like slots, blackjack, roulette, and baccarat on their computers or mobile devices. These games are designed to be easy to play, have simple rules, and are rich in exciting features.

Live dealer games are one of the most popular features of online casinos today. These are run by real-life hosts to replicate the feeling of a physical casino.

Sports betting is another big part of the iGaming market. It allows players to bet on sports like football, basketball, horse racing, and more from the comfort of their homes. You can access these iGaming sites via computers/smartphones and predict the outcome of your favorite sporting event.

Live betting is a popular aspect of sports betting. These companies allow users to watch live scores and bet accordingly, in addition to making predictions before the start of a match.

Besides conventional sports, many modern betting sites now offer esports betting. This means players can place bets on online gaming tournaments of popular video games like League of Legends, Dota 2, or Fortnite.

What are some of the main challenges and opportunities in the iGaming sector today?

Jamie Wall: The iGaming industry is a doorway to many opportunities. One of them is global growth. Today, online gambling is legal in many countries, and the number is increasing. This means gaming businesses have the potential to reach new players around the world and expand.

Technological advancement is another perk that benefits iGaming company owners. Innovations like virtual reality (VR) and blockchain improve the gaming experience. Also, most online gaming platforms nowadays are safer than ever.

However, the industry is still not free from challenges. For instance, regulatory issues are a big concern. Different countries have different rules, which makes the entire process of setting up a company often a bit complicated. Another challenge is security. Yes, technology is a helpful tool in this regard, but it has also aided fraud and cyber-attacks.

Lastly, a high level of competition is a challenge. There are many iGaming companies out there, so finding a way to stand out is a must for new businesses. Luckily, there are ways. It’s tough, not impossible.

How can one build trust with players when starting an iGaming platform?

Jamie Wall: To build trust, ensure your site is safe, fair, and easy to understand. The calculation is that simple. Use secure ways for players to pay, and make sure they know the rules. Having a customer support team ready to help when players need it is important. This shows players that you care about them and their experience.

What are the key steps for someone looking to launch their own iGaming company?

Jamie Wall: Starting an iGaming company takes careful planning and decision-making. The first thing you need to do is decide what type of iGaming business you want to create. There are different types, like online casinos, sports betting, poker, or esports betting. Each of these options has its audience and market.

For example, sports betting is very popular, but if you want to stand out, you might consider focusing on esports betting, which has less competition. Understanding the market and picking the type you believe will do well is important.

Once you’ve decided on your business type, the next step is choosing where to operate your iGaming company. This is a very important decision because different countries have different rules and taxes regarding online gambling. Some countries make setting up an iGaming company easier, while others have stricter rules. For example, Malta is a trendy choice. Another option is Curacao. It’s easier and cheaper to get a license there. Gibraltar is also a good choice.

The next task is finding a reliable software provider. Look for a software provider for online casinos that has developed various games. You’ll need a collection of those. The software should handle several elements if you plan to run a sports betting site. These are live odds, bets, and sports data feeds.

Another important step is setting up a secure and reliable payment interface. Players must be able to deposit and withdraw money easily via credit cards, e-wallets, and bank transfers.

If your iGaming company targets players in specific countries, supporting local currencies and payment methods is important.

Lastly, ensure your platform has strong security features to protect your users’ personal and financial information. This is very important because players need to trust that their information is protected when using your iGaming platform.

What advice would you give to someone about choosing the proper licensing authority for their iGaming business?

Jamie Wall: Consider several factors when choosing the proper jurisdiction and licensing authority for your iGaming business. First, look at the regulations in each country. Different countries have different rules. Some countries have strict regulations, while others may have more relaxed rules.

Next, consider the tax rates in each location. Taxes can have a big impact on your business. The cost and time needed to get a license vary from country to country. Some jurisdictions have a quick and affordable process. On the flip side, others may take longer and cost more. Paying attention to this is crucial.

Another important factor is the jurisdiction’s reputation. A license from a reliable authority can boost a company’s credibility, attract players, and help the business grow.

iGaming is associated with affiliate programs. So, if my aim is to get a high return on investment, what is the best way to handle these partnerships?

Jamie Wall: With so many options, things can get overwhelming. I do understand that. But here is the trick:

1. Avoid going random.
2. Focus on choosing the right affiliates who align with your market.
3. Don’t forget to keep track of performance and adjust strategies where needed.
4. Maintain open communication
5. Build long-term relationships for bigger ROI over the period.

Lastly, what are the essential features that make an iGaming platform successful?

Jamie Wall: For an iGaming platform to be successful, several key features are necessary. The platform should be easy to navigate. Players should be able to find games, place bets, and manage their accounts without confusion.

An iGaming site should be rich in games. For casinos, this could include popular options like slots, roulette, blackjack, and poker. Various sports and live betting options should be available for sports betting platforms. In simple words, players or punters should never run out of options.

Another quality of every successful platform, like the ones reviewed by the experts at iGaming company Gamblizard, is its mobile friendliness. The number of mobile gamers is large, so a platform should work smoothly on both mobile devices and desktops.

No one likes a headache when it comes to payments. Thus, safe and easy payment methods are essential. Every successful iGaming platform supports a variety of payment options, such as credit cards, e-wallets, and even cryptocurrency.

How do you manage payment processing securely and efficiently in different regions?

Jamie Wall: Just focus on trusted payment methods that are widely used in your region. Among those, you must prefer payment providers credited with keeping transactions secure. Otherwise, you can invest in creating an SSL-secured site to make sure no security breach occurs from your side.

Coming back to features, bonuses have become the backbone of the online gaming industry. Promos like welcome bonuses or no-deposit bonuses can be a great strategy for new companies to attract new players. In addition to freshers, platforms must keep their existing players entertained. For that, loyalty programs work great.

A successful platform always makes sure players feel safe. When players believe the site cares about them, they trust it more. For that, the site can offer tools like:

• self-exclusion, where players can take a break from gambling
• set limits on how much money they can deposit, and
• keep track of their gambling behavior.

Another trait of reliable iGaming platforms is a responsive customer support team. This means that when players have questions or face problems, they can get help quickly. If something goes wrong, like a payment issue or a question about a game, players should not have to wait too long for an answer. A good support team is available at all times to solve problems.