iGaming Business Catch-up – Playtech New Appointment, Bet365 Declining Profits & SBC Doubles in Size

In this iGaming business catch Samy Reeb heads to Playtech, Bet365’s financials are under the scope & there’s an SBC 2023 sneak preview! (Photo by heather bozman on pexels.com)

On the iGaming scene, things are certainly busy. Endorphina’s new licensing and partnerships were the first topic of the day, while in this news piece you get to delve into the Playtech software provider’s camp, and we bring news of Bet365 lackluster profits from the previous fiscal year.

And just to keep things interesting, September’s SBC Awards 2023 may well be 9 months away, but it is already hitting the gambling headlines. The event organisers have recently announced that it has doubled the floor space available. Read on for the full lowdown on all the gossip!

Samy Reeb Appointed Independent Non-Executive Director at Playtech plc

Samy Reeb was recently appointed an independent non-executive director at Playtech plc. He is a wealth advisory specialist with extensive experience in Asia and taxation.

Previously, he was an executive director at Julius Baer and was responsible for international tax monitoring for private banking clients. In addition, he also served as global program lead for the firm’s wealth planning digital platform. During his tenure at the company, he developed a leading franchise for advising Asia-based ultra-high net worth clients.

He started his career as a tax advisor at Ernst & Young and later a tax management-level position with Credit Suisse. After several years at the Swiss bank, he focused on wealth advisory. For the next six years, he held the role of senior banker at Julius Baer, where he was responsible for directing third-party relationships in Asia. Prior to that, he was the managing partner at 1291 Group.

Mr Reeb’s recent appointment comes after Andrew Smith stepped down as the company’s CFO. At Playtech, he will be a resource for strategic advice and will play a significant role in the group’s business development strategy, particularly in the expansion of the company’s business in new markets.

Recent Playtech Appointments: The Canadian Gaming Association (CGA) recently appointed Charmaine Hogan as a board of director. She brings her experience from Playtech as the Head of Regulatory Affairs to Canada’s iGaming market where Playtech operates. You can read the full story in our Canada iGaming gossip news report.

Bet365 2022 Financial Year-Roundup

One of the largest online betting companies in the world, Bet365 struggled with the increase of administrative costs and saw a marginal revenue increase of 2.9% in from March 2021 to March 2022. This sports betting industry leader, saw CAC (Customer Acquisition Costs) skyrocket and lead to a year-on-year decline of almost 90% in profits. Bet365 also owns the Stoke City Football Club, which suffered losses this year, compounding previous losses.

The operator also saw many positives, such as a 50% increase in global users, trading platform technology enhancements/investments, advancement in identifying customers that are “at risk/harm,” through the ERDS (Early Risk Detection System), addition of new betting destinations and a variety of live streaming of games.

Although Bet365 boasts a solid balance sheet it has been plagued by increasing costs and a market share. Existing companies in the same market that were previously badly managed, with no digital footprint have turned the tides on Bet365 and are now growing and adapting to this competitive landscape and gaining market share.

In the 2020-21 fiscal year, Bet365 made £496.8m profit compared to £42.8m in 2021-22, a whopping 89.6% decrease!!! Direct costs for sports and gaming divisions being attributed to administrative costs (CAC) related to brand awareness in new markets, IT infrastructure and staff costs. Bet365 increased their personnel by almost 12% from the previous fiscal year, with a global head count of 6,092. To offset some of the associated cost in expanding their staff, executives at Bet365 took pay cuts, with Denise Coates (CEO) taking a 16.5% decrease… down to £213.4m!!! One of the richest women in the world, many feel that this is salary in not warranted when the company is suffering and the UK private sector is facing salary cuts, a massive wage disparity.

The latest financial report may seem discouraging but the results from the impact of the World Cup have yet to be determined and may boost the bottom line in the next quarter. Also, results from increased spending on branding and IT, customer base expansion, bonus/incentive betting have yet to be realised.

SBC 2023 Summit Doubles in Size

This year’s SBC Awards 2022 will take place in an area covering 38,000 square metres. That’s larger than the square footage of most football stadiums to put things into perspective. The move means there is space for additional stands, with the Sports Sponsorship stand already revealed, while in the same fashion as the ICE London 2023 iGaming event, there is more space for responsible gambling. This will be represented on ‘Stage 7 – Player Protection’. On top of this, Stage 1 is new and will focus on Leadership and Global Gaming.

Over the extended floor space, attendees will be able to meet industry stakeholders from every regional market. Moreover, SBC will provide additional floor space to facilitate the hosting of more meeting rooms and network lounges. It is expected that more than 3,000 operators and affiliate representatives will attend the show taking with them 10,000+ industry decision markers. In addition to networking opportunities, the conference will cover topics such as emerging trends, regulatory changes, player protection measures, and next-generation technology. Additionally, the Emerging Tech, Blockchain and Metaverse Zones will be present.

Of course, the highlight of the show for us online casino fans is we get to see whom the judges vote for to dish our prestigious iGaming awards such as Casino / Slots Developer of the Year, Casino Operator of the Year, Crypto Gaming Operator of the Year, and more.

Are the SBC Awards Shortlists Out? Not yet. If we go by the SBC Awards 2022 shortlists, which I published on 10 July, we have at least 7 months before any names will be revealed. The event itself will take place in Barcelona over 3 days from 19 to 21 September.