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
Newcastle Hotel Fined for Gaming Machine Offences
Newcastle hotel out of pocket $7,540 for gaming machine offences
A Newcastle hotel has been fined $7,540 after being convicted of operating gaming machines outside authorised hours.
The licensee of the Royal Inn Hotel at Waratah pleaded guilty to 13 offences under the Gaming Machines Act 2001 in Downing Centre Local Court on March 11 following an investigation by Liquor & Gaming NSW.
Executive Director of Regulatory Operations, Jane Lin, said these were serious breaches of the state’s gaming laws.
“These restrictions are in place to reduce the risks of gambling harm by limiting the time patrons can spend playing gaming machines,” Lin said. “Apart from breaking the law, the Royal Inn Hotel placed its patrons at greater risk of gambling harm. As this case shows, venues that fail to abide by gaming machine trading hours can expect to be caught and face significant penalties.”
Liquor & Gaming NSW reviewed the hotel’s gaming activity and found that on Saturday, April 15, 22 and 29, 2023, gaming machines were operated during the shutdown period from 1am to 7am. The hotel submitted to the court that the breaches were a genuine misunderstanding of the licence conditions by the approved manager.
In sentencing, the magistrate noted the onus was on the licensee to ensure staff were appropriately trained and that a message had to be sent to those venues, which had the highly profitable right of operating gaming machines in New South Wales.
For free, confidential advice and support, call GambleAware on 1800 858 858 24/7 or visit www. GambleAware.nsw. gov. au.
Australia
AUSTRAC Commences Investigation into Online Betting Company Bet365
AUSTRAC has commenced an enforcement investigation into Hillside (Australia New Media) Pty Limited (bet365).
The investigation will focus on whether bet365 has complied with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) and follows a supervisory campaign of entities within the corporate bookmaker sector and AUSTRAC’s consideration of the external audit report received following AUSTRAC’s order to bet365 to appoint an external auditor.
AUSTRAC CEO Brendan Thomas, said betting agencies, like all regulated entities, have a significant role to play in combating financial crime.
“Corporate bookmakers must have robust systems in place to ensure they can manage and mitigate risks associated with money laundering and terrorism financing,” Mr Thomas said.
“Businesses without adequate processes in place to manage those risks leave themselves vulnerable to exploitation by criminals.”
Australia
Aristocrat Appoints Matthew Primmer as Chief Product Officer
Aristocrat Leisure Ltd announced the appointment of Mr Matthew (Matt) Primmer to the position of Chief Product Officer, reporting directly to Aristocrat CEO & Managing Director Trevor Croker. Mr Primmer’s appointment is effective immediately. He will join Aristocrat’s Executive Steering Committee, and remain based at the company’s offices in Las Vegas, Nevada.
Mr Primmer comes to the role with over 20 years’ experience in the global gaming industry, including ten years at Aristocrat in a range of senior product strategy, insights and leadership roles in Australia and the US. Mr Primmer has been Chief Product Officer at Aristocrat Gaming for four years, leading Design & Development (D&D) in Aristocrat’s largest operating business, with casino game content and hardware comprising its most strategically important portfolios. Mr Primmer previously held marketing and sales roles at Ainsworth Game Technology and Shuffle Master. Mr Primmer holds a Bachelor of Commerce from the University of Wollongong.
“I am delighted to elevate a global gaming executive of Matt’s calibre to our leadership team. Over the past decade, Matt has made a strong contribution to building and extending Aristocrat Gaming’s global product leadership, fostering our outstanding creative and technical talent, championing D&D and placing customer needs at the centre of our product strategy,” Mr Croker said.
“Matt’s appointment brings additional, proven gaming experience to the executive team. In his new role, Matt will help us maintain an enterprise view of product strategy as our business grows to encompass a broader range of product verticals, while also ensuring the most effective allocation of D&D investment” Croker added.
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