Industry News
Gauselmann Group is Back on Course for Success, Sales Development Returns to Pre-Covid Levels
The Gauselmann Group is leaving the pandemic behind and picking up economically from the successful pre-COVID period: at the end of the first six months of the year, it is already becoming apparent that the family-run corporate group will achieve similarly high sales revenues in 2022 as in the 2019 financial year. Sales revenues in the first half-year of 2019 were at around 1.740 billion euros. The first six months of 2022 closed with sales revenues at 1.746 billion euros. Overall, the cumulative sales revenues of all group entities in 2019 was approximately 3.4 billion euros.
“It is great news that the pandemic has bottomed out and we are finally back in charted territory again. This success is primarily the fruit of our good ideas and the dedication of each and every one of our employees and once again goes to show what you can achieve with hard work and team spirit,” Founder and Management Board Chairman Paul Gauselmann said.
The past two coronavirus years had cost the company some two billion euros in lost sales revenues. During the lockdowns, all gaming arcades, casinos, sports betting shops and shipboard casinos across Europe – as many as 1000 outlets altogether – had had to close for around nine months. Operating costs, however, remained largely unchanged.
The good development is also attributable to the group’s increasing diversification. The Gauselmann Group is positioning itself on an ever-broader base – and in doing so is reducing its dependence on individual markets and business models. This is also reflected in the current sales performance. A return to pre-COVID levels was only possible because with the development and expansion of international business operations and casinos, the company has tapped into two business areas that compensate for the increasingly difficult situation on the German home market. The most important markets in other European countries are currently the UK and Spain.
“From an entrepreneurial point of view, it was hugely important to drive forward our international business activities,” Paul Gauselmann explains. In the meantime, an ever-larger share of sales revenues – around 60% – is generated abroad.
In addition to internationalisation, casinos are another major factor in sales success. As well as the casinos in Saxony-Anhalt and the investments in Berlin and Rhineland-Palatinate, the casinos in North Rhine-Westphalia have been an important addition to this business segment since 2021. A look at the figures of the casinos in Saxony-Anhalt shows how enormous the potential is in this area: already in the second year of operation by the Gauselmann Group, the number of visitors doubled several times over. In line with the legally defined channelling mandate, it was thus possible to redirect more players from illegal to legal offerings and protect many customers from the big risks of illegal gaming.
“I have never experienced such a percentage rise in any other sector so far,” Paul Gauselmann points out.
The only bitter pill in the general success story are the political conditions that govern commercial gaming in Germany. The ever-increasing restrictions have not only led to a reduction of more than 30% of gaming machines, the closure of gaming arcades and thus also to the selective loss of jobs, but have also diminished the attractiveness of the legal gaming offering. This, in turn, increases the appeal of illegal gaming offerings – in the context of which consumer protection and responsible gaming are alien concepts. The Gauselmann Group has nevertheless managed to defend its market leadership.
“This is very gratifying, but also necessary in order to uphold our standards even under the more difficult conditions,” said the company patriarch.
This positive development of the company from Eastern Westphalia is also reflected in the “personnel growth” factor. The number of employees increased by 10.7% in 2021, with the company now employing almost 15,000 people worldwide. All of this allows the Gauselmann Group to look to the future with renewed confidence. One source of hope for further building on this successful track record lies in particular in the area of online gaming in Germany, which is currently being developed on a legal footing under the new State Treaty on Gambling that came into force on 1 July 2021 and for which the first licences were recently issued. However, this presupposes that the state intervenes to put a stop to illegal online business as quickly as possible. According to media reports, the new German Federal States’ Joint Gambling Authority has already started calling on illegal providers to discontinue their activities. Failure to do so comes with fines of up to 500,000 euros. Experience in the UK market has shown that land-based gaming and online gaming meaningfully supplement rather than cannibalise each other – provided that the legislator permits a sufficiently attractive range of online gaming offerings; an area where Germany has so far significantly lagged behind other counties.
“We will definitely be making an active contribution with good ideas in the online segment,” promises Paul Gauselmann. The most important insight, however, is “If we perform and can draw on more reasonable framework conditions going forward, success will follow.”
IAGA
The International Association of Gaming Advisors (IAGA) Announces 2024 International Gaming Summit in Washington, D.C.
The International Association of Gaming Advisors (IAGA) will hold its 41st International Gaming Summit Monday, May 27 through Thursday, May 30, 2024 at The Ritz-Carlton Washington, D.C.
As a premier event that brings together leaders from all global gaming sectors, the Summit will provide operators, suppliers, attorneys, investors, bankers, regulators and other advisor delegates with an unparalleled opportunity to meet and discuss the most important issues facing gaming.
“We are looking forward to holding this year’s 41st Annual International Gaming Summit in Washington, D.C., and are pleased to announce an agenda that includes a specific focus on some of the key sports betting issues the rapidly expanding US market is facing. As part of this focus, we will bring together representatives from global sports betting operators, regulatory agencies, professional sports leagues and other experts to discuss how the industry’s sports betting stakeholders can better work together to ensure a sustainable, responsible sports betting environment that is built on best practices lessons learned from other markets,” John Stawyskyj, President of IAGA, said.
“Beyond our sports betting focus, our diverse agenda includes discussions on other issues of importance including the growing impact of fraud and cyber breaches on regulated operators, a look into the federal and state lobbying process, an update on what’s happening in other gaming markets outside North America, a deep dive into new technologies and how they might impact gaming and more. I look forward to welcoming our delegates to Washington and participating with them in lively discussions about these critical issues and more,” Stawyskyj added.
Marker Trax, a leader in cashless payment solutions for the gambling industry, has announced the appointment of John Henderson as its senior vice president of operations.
As the company continues solidifying its cashless payments sector leadership position, Henderson joins the team to play a key role in leading strategic planning efforts, executing new operator and customer initiatives, directing pursuit of key performance indicators, and ensuring overall product and technology quality control. He reports directly to, and will work closely with, Marker Trax President Charlie Skinner.
Henderson is a seasoned, energetic industry veteran who brings to Marker Trax more than four decades of success in delivering technology-based business solutions, leading innovation-forward companies seeking to increase their industry footprints and to solidify their market shares.
“We’re cementing our leadership position in the cashless space, and John is the right leader, at the right time, to help guide us there. He has tactical expertise, and a long track record of success in the IT space. More than that, though, he’s always eager to innovate – which aligns perfectly with our philosophy and goals. We’re lucky to have him on board,” Charlie Skinner, President of Marker Trax, said.
Immediately prior to joining Marker Trax, Henderson served as chief information officer at WorldStrides, a global leader in educational travel services, and helped the company navigate a business and IT transformation program. Henderson has also held client partner roles at Accenture, IBM, and Cognizant, and has served numerous global brands including Choice Hotels, Hilton Hotels, MGM Resorts, Wynn, Disney, and Royal Caribbean.
“Every step of his career, John’s shown natural aptitude for client relationship management and large-scale systems integrations, and a keen, tactical eye for optimizing performance at all levels of an operation. At Marker Trax, we’re increasing our market footprint through continual innovation, and John’s tactical leadership will be of tremendous benefit to reaching our goals,” Skinner said.
Henderson’s addition caps a prolific run of recent accomplishments for the company. It recently unveiled its innovative consumer product, Moolah Play, secured renewed commitment from partner and global payments leader Euronet Worldwide Inc., and is introducing its cashless credit technology into more markets around the country.
Affinity Interactive
Affinity Interactive Appoints Scott Butera as President & Chief Executive Officer
Affinity Interactive has announced the appointment of Scott Butera as President & Chief Executive Officer, effective immediately.
Mr. Butera, who most recently led AI’s Sports Information Group (SIG) business, brings over 30 years of experience in gaming, hospitality, media, entertainment, and sports to the pivotal role. In his new capacity, Mr. Butera will set strategy and oversee operations of the Company’s diversified portfolio of casinos resorts across Nevada, Missouri, and Iowa. He will also continue to oversee all print and online media platforms, including Daily Racing Form.
Mr. Butera is an industry veteran who has a history of leading growth and innovation at numerous companies. As CEO of SIG, he led initiatives to develop retail and business products and optimize ecommerce sales for the Daily Racing Form. Under his leadership, SIG experienced significant growth in market share and revenue. Previously, Mr. Butera served as President of Fubo Gaming at Fubo TV Inc. He has also held CEO and President positions at MGM Resorts International, the Arena Football League, Foxwoods Resort & Casino, Tropicana Entertainment, and Trump Entertainment, among others. Earlier in his career, he worked as an investment banker for more than a decade, gaining valuable financial expertise that he later applied to strategic decision-making in the gaming industry. Mr. Butera has a B.A. from Trinity College, where he served as a Trustee, and an MBA from New York University.
“Scott’s operating acumen and deep knowledge of the gaming and entertainment industries have helped AI and Sports Information Group expand product offerings and improve the sports and gaming experience for consumers around the world. I am confident Scott will integrate seamlessly into this expanded role, and under his leadership, Affinity will achieve greater success, continuing to deliver world-class experiences to nearly 1 million users and guests across platforms,” James J. Zenni Jr., Chairman of Affinity Interactive, said.
“Affinity’s mission to elevate the gaming industry through advanced technology and unparalleled customer offerings – both across digital media platforms as well as in-person gaming – remains a driving force behind the business’ success. I am eager to collaborate with Jim and leverage my familiarity with the business as well as my passion for driving innovative change to execute on AI’s long-term strategic priorities,” Mr. Butera said.
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