Entain: “New Zealand and Brazil On The Rise”
In the presentation of Entain’s 2024 Q1 company results interim CEO Stella David and CFO and deputy Rob Wood have shared their optimism about the operator’s performance in New Zealand. Together with Brazil, the market in New Zealand shows major potential to activities that need to expand the brand’s reach outside of Europe. The company is also closely following the developments in the US State of Nevada.
The London based operator reported a 3% increase in revenue for Q1 2024. This modest growth was largely thanks to strong performances in Central and Eastern Europe, where revenue grew 124%. Performance in Entain’s international business also grew, rising 4%. Revenue in the United Kingdom and Ireland dropped with a sharp 7% whilst expectations are also downbeat for the country of The Netherlands.
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Close Attention To New Zealand
In the latest trading update Stella David and Rob Wood shared some new insights in markets outside of Europe. CFO and deputy Rob Wood says the company has noticed a strong acceleration in both New Zealand and Brazil and he expects this to continue. He adds that Entain is “encouraged” by recent developments and hopes to obtain licences in the countries to legally offer its products.
At the same time, Entain foresees difficulties in the Netherlands, where online gambling was regulated in October 2021. Entain is presently encountering a legal dispute with the previous owners of its Dutch brand BetCity. Entain asserted that undisclosed regulatory inquiries were ongoing at the time of its NZ$ 805 million (€450m) acquisition of BetCity in January 2023. These inquiries pushed BetCity’s actual value down by as much as $279 million. In March 2024, BetCity’s former owners alleged that Entain was clearly informed about the investigation conducted by the Dutch gambling regulator Kansspelautoriteit (KSA). As a result, they filed a counterclaim against Entain amounting to $186 million.
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Possible Move to Nevada
Another market that has caught Entain’s attention is that of the US state of Nevada. Although it is unclear what Entain’s exact plans are, David has confirmed that this year will be used to “invest” in the US State. According to the interim CEO, the American state shows enormous potential, both as a market and its close relationship with the American operator MGM International. Controlling more than half of the Las Vegas Strip and accounting for more than 13 million annual customers, David believes that “the opportunity is there”.
David wants to create a smooth “gambling journey” for visitors who are rewarded via a loyalty programme. The idea would be to combine visits to land based casinos with online experiences via a mobile app developed by Entain. According to David, a loyalty programme needs to be put into place to seamlessly connect offline and online gambling activities.
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