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Scout Gaming publishes Q2 2019: Increased revenues for the start of H2

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Scout Gaming kicks off second half year with multiple deals and sportsbook launch
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”We continue to build long-term values ​​through agreements we entered into during the quarter, integrations we have made, as well as the products we have completed and started to launch with our partners. The effect of spring’s work has as anticipated, started to have an effect after the summer in connection to the start of the major sport leagues. We have previously been somewhat behind schedule, but have caught up after the end of the quarter and are now in line with expectations of achieving a solid revenue growth during the second half of 2019.

The network effect is now starting to get visible and we are moving towards the strongest sales month in Scout Gaming’s history. On our internal brand, we have seen a preliminary revenue increase of approximately 355% compared to August last year. The increase is representative of our customer base in general. The number of paying active users at our customer base has increased by about 300% compared to August 2018.

For the second year in a row, we won EGR B2B Awards for best fantasy product, which is clear proof that we are the market leader. Another example of this is our season-long Premier League game which this season has a record sum prize pool of SEK 2.5 million. The tournament has attracted nearly 10,000 registered teams and is recognized as the biggest European Fantasy Premier League tournament to date. Compared to last year’s season games for the Premier League, player turnover increased almost 250%.”

Extract from CEO Andreas Ternstrom’s commentary to the interim report.

Quarter April – June 2019

• Revenue amounted to mSEK 4.0 (4.9), of which mSEK 2.3 (2.7) was net sales

• EBITDA amounted to mSEK -12.1 (-4.7)

• Net result amounted to mSEK -13.3 (-7.1)

• Earnings per share amounted to SEK -1.0 (-0.6)

• Operator trading index (which illustrates the underlying client activity) increased to 687 (409), a growth of 68%

• Scout Gaming entered into an agreement with the France state lottery FDJ, which is one of the largest gaming companies.

• Scout Gaming has entered into an agreement with Scientific Games Digital, one of the top leading global gaming suppliers. The SG Digital workforce amounts to over 1,500 members of staff across 34 offices around the world, and has an excess of 200 customers, more than 2,000 games and 40 licenses worldwide. Scientific Games has a turnover of 3 Bn USD and is listed on the Nasdaq stock exchange.

• Scout Gaming has entered into an agreement with Expressen regarding deliverance of the company’s gaming platform. Expressen will gain access to a number of sports and is expected to launch during 2019. Expressen, which is part of Bonnier News, is one of the largest media houses on the Swedish market.

• Scout Gaming entered into an agreement with platform provider Digitain. The agreement stipulates the distribution of Scout Gaming’s products. Digitain is a privately held company providing Omni-channel iGaming software solutions to the online, mobile and land-based verticals. Digitain has over 1,000 employees, 55+ partners worldwide, and more than 400 land-based bet shops worldwide.

• Scout Gaming Group has been granted a license by Malta Gaming Authority, which enables Scout Gaming to provide betting related services, to operators under the Maltese regulation.

• Scout Gaming conducted directed rights issues amounting to approximately 27 MSEK. Participants included Tekkorp Capital LLC, Swedbank Robur Fonder AB, Provobis Invest AB and Knutsson Holding AB among a couple of international institutional investors.

Interim period January – June 2019
• Revenue amounted to mSEK 7.6 (4.9), of which mSEK 4.2 (3.6) was net sales.

• EBITDA amounted to mSEK -26.7 (-12.5)

• Net result amounted to mSEK -29.4 (-16.2)

• Earnings per share amounted to SEK -2.2 (-1.2)

Events after the period
Preliminary revenue growth for our internal brand, which is representative for our customer base in general, is approximately 355% in August, compared with the whole of August 2018. The number of paying active users in our customer base has increased by approximately 300% compared with the whole of August 2018. This information is based on the first 29 days of August and should not be seen as a forecast, but an indication of how the quarter has started.

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Maximising Your Cross-Market Appeal

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Maximising Your Cross-Market Appeal
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With Bitblox introducing an entirely new breed of crypto-based price prediction games to the iGaming industry, we talked to CEO, Brandt Page, to discover how combining elements of both chance and skill with lightning-fast betting rounds has helped improve their cross-market appeal.

 

When Bitblox was first established, our core concept was relatively simple; we didn’t just want to provide players with a new twist on an existing format like slots or casino games, but instead sought to create an entirely new vertical that combined elements of chance and elements of skill.

One of the main drivers behind this decision was the fact that we wanted our releases to appeal to as broad an audience as possible – and I think from the figures we’ve seen so far, we’ve already had some notable success on that front in terms of the players that are engaging with our games.

Funnily enough, I was recently talking to the Head of Marketing from one of the operators that we work with and they told me they were struggling to place our games optimally. Initially, they’d put them in with crash and instant win content, but they soon discovered a lot of their in-game traffic was coming from sports bettors. A move to the sports betting tab followed, but the exact same-thing happened with casino players, leading to the games eventually winding up on the front page.

As this was going on, our games were continuing to post solid numbers with the customers who bet on both sports and casino – and all of this engagement was coming without there being any additional promotion from us or the operator. So why was it that our games were performing so well across these different player segments? I believe there are a number of contributing factors.

First and foremost, having this hybrid model of games of chance and games of skill that I’ve already mentioned has placed us in a fairly unique position within the iGaming industry. On the one hand, the simple premise of our Bitcoin-based titles – coupled with their attractive designs and intuitive UI – makes them highly accessible to casino players who are just looking to have fun.

On the other, the fact that Bitblox games aren’t based on RNG and are instead pinned to the real-time movements of the Bitcoin market certainly resonates with a sports betting audience. As they have the ability to follow the charts and use this information to inform their decisions, they definitely feel they have more control over the outcome than if they were playing a traditional slot.

Another key aspect of our cross-market appeal is the fast-paced nature of all Bitblox releases. With casino players being accustomed to the quick wins and instant gratification of slots and crash games and sports bettors also showing a growing preference for in-play wagering, we’ve ensured each game round is resolved quickly and that there are multiple opportunities for betting.

When we first launched Up or Down?, which features one-minute betting rounds, we soon learned that even this timeframe is too long for some players. This resulted in us developing Up or Down? Turbo – a game which kept the same mechanics as its predecessor but reduced the betting window to 20 seconds – and this has gone on to become one of our most successful titles.

Keeping all this in mind, one of the things I’m most excited about is the upcoming release of our latest game, 3 in a Row, as I think this is a title that really ties everything I’ve talked about so far together. Designed to look like a slot machine, 3 in a Row challenges players to correctly predict how the Bitcoin price will move over three separate 20-second windows for even bigger payouts.

Intended to appeal to casual users and serious sports bettors alike, players can elect to either spin the reels for fun and select a random price sequence or use the bet builder feature to put together their own custom prediction. With the latter essentially functioning like an accumulator bet, players can select up to three possible combinations – i.e. Up/Up/Up, Up/Up/Down etc – and only one result needs to land for them to win, ensuring they stay engaged until the final seconds.

I believe that 3 in a Row can help build on the strong foundations we’ve laid down with casino and sports bettors and provide operators with another popular option that offers significant cross-market appeal. Based on what we’ve seen from previous Bitblox releases, the audience for titles that combine elements of chance and elements of skill is definitely out there – and I’m looking forward to our unique brand of crypto-based games being enjoyed by even more players in future.

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Industry News

Gaming Corps to launch with lotteries in the USA via EQL games deal

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In-demand content provider extends reach into largest iGaming market in the world with its full suite of games made available via iLottery aggregation platform

Gaming Corps, a publicly-listed game studio based in Sweden renowned for creating industry-leading games, has made its debut in the US market through a breakthrough agreement with leading lottery provider, EQL Games.

The distribution agreement will see Gaming Corps’ full suite of games made available to EQL Games’ powerful iLottery Aggregation Platform, developed to provide lottery operators across America with direct access to a portfolio of proprietary and third-party games.

Following the integration, EQL Games’ lottery operator partners will be offered proven Slots, Table Games, Multiplier Games, Mine Games and Plinko Games, as well as titles under Gaming Corps’ innovative and trademarked Smash4Cash™ series.

The deal and integration come at a time of growing demand among online lottery operators in the US for non-traditional content, a format that Gaming Corps has excelled in, especially with its Smash4Cash™ games, which have been a hit with players in global markets.

EQL’s aggregation platform has been developed to allow online lottery operators to quickly and easily access content from multiple game studios simultaneously through one integration and one commercial agreement.

Its iLottery Aggregation platform simplifies the process of adding new games to an online lottery brand across regulated states. In addition to the third-party content provided via its aggregator platform, EQL Games has a portfolio of in-house titles.

This includes games produced under licence with Team USA which were rolled out by several state lotteries for the Olympic and Paralympic Games in Paris this year, with new titles being planned ahead of the Winter Games in Milan (2026) and the Olympic and Paralympic Games in Los Angeles (2028).

Juha KauppinenCEO of Gaming Corps, said: “The USA has always been somewhat of the holy grail for game developers like us, which has been further emphasised as markets in several states have become regulated. The potential in the American market is enormous, and the impact for us is a bit difficult to assess, but we have great hopes for the collaboration with EQL Games, which has an impressive platform towards U.S. lotteries.

“We believe it will have a significantly positive impact on our revenues. I would like to personally take the opportunity to thank EQL Games and Brad Cummings for the collaboration, and we are now working hard to complete the integration so that all our games will be offered to EQL’s customers via their platform.”

Brad CummingsCEO of EQL Games, added: “Including Gaming Corps as a supplier to the EQL Games iLottery Aggregator is an exciting step forward in our mission to offer unique, high-quality content to state lotteries. Gaming Corps’ expertise in iGaming, along with their unique game portfolio, fits perfectly with our vision of enhancing the lottery experience through dynamic and engaging content.”

 

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Industry News

Public Voting Starts for Ortak x B.F.T.H. Arena Awards 3.0

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The highly anticipated Ortak x B.F.T.H. Arena Awards 3.0 has officially entered the public voting phase as submissions are closed.

More than 70 game providers have turned in over 160 submissions, including Tom Horn Gaming, Pragmatic Play and RubyPlay. Public voting involves enthusiasts casting their votes to pick the winner of the Game of Public Choice category.

The Public voting phase ends on December 1st 23:59 GMT+4.

Concurrent to public voting, the first phase of private voting also starts during which all participants who have submitted entries get the chance to vote for one favourite in each category. An international auditing company oversees this phase to eliminate duplicate votes and self-votes. This phase ends on November 19, 23:59 GMT+4.

The second phase of private voting will also take place with a jury of industry experts making their decisions based on the shortlist picked by participants during the first phase.

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