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Gambling.com Group Publishes Q3 2020 Interim Report

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Q3 Interim Report | 3 months ended 30 Sept 2020

JULY-SEPT 2020 (COMPARED WITH JULY-SEPT 2019)

  • Revenues totaled EUR 6.33 (4.16) million, an increase of 52%, all of which was organic growth.
  • Adjusted EBITDA excluding non-recurring costs totaled EUR 3.30 (0.61) million, corresponding to an adjusted EBITDA margin of 52 (15)%
  • EBITDA totaled EUR 3.31 (0.47) million, corresponding to an EBITDA margin of 52 (11)%
  • Net cash generated from operating activities was EUR 3.47 (0.88) million
  • New Depositing Customers (NDCs) totaled 28,108 (18,411), an increase of 53%

JAN-SEPT 2020 (COMPARED WITH JAN-SEPT 2019)

  • Revenues totaled EUR 15.79 (13.83) million, an increase of 14%, all of which was organic growth.
  • Adjusted EBITDA excluding non-recurring costs totaled EUR 7.29 (3.37) million, corresponding to an adjusted EBITDA margin of 46 (24)%
  • EBITDA totaled EUR 7.01 (3.16) million, corresponding to an EBITDA margin of 44 (23)%
  • Net cash generated from operating activities was EUR 6.45 (3.55) million
  • New Depositing Customers (NDCs) totaled 69,190 (65,163), an increase of 6%

SIGNIFICANT EVENTS DURING THE THIRD QUARTER 2020

  • Launch of SlotSource.com on the US market | Gambling.com Group launched SlotSource.com in regulated US states to empower American online slot players.
  • Sweden deposit and bonus limitations | The Swedish government temporarily introduced deposit and bonus limitations for gambling operators from July 2 to December 31, 2020.
  • Responsible Gambling Resources | New extensive problem gambling resources were added to Gambling.com as part of a new Responsible Gambling Center.
  • Illinois Approval | The Group received approval from the Illinois Department of Business Services to provide marketing services to licensed gaming operators in the state.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

  • EGM | An Extraordinary General Meeting was held on October 22, 2020. Directors’ remuneration and the issuance of options, warrants, and stock under the 2020 Stock Incentive Plan was approved.
  • Local gambling regulation in Germany | The Minister-Presidents of Germany’s 16 federal states ratified the new regulatory framework for gambling due to come into force in July 2021. A transition period became effective on October 15, 2020.

“The Group delivered another record performance in Q3, with quarterly revenue growing 52% year over year and 11% sequentially against Q2, all of which was organic. Our technology platforms that went live earlier in the year have significantly improved both commercial metrics across our sites and operational efficiencies. As a result, we are now in a position to scale investment in product and marketing with a particular focus on the fast-growing US markets and the expansion of our sports offering.” – Charles Gillespie, Chief Executive.

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L&GNSW Launches Compliance Campaign

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The Liquor & Gaming NSW (L&GNSW) has launched a compliance campaign focusing on external gambling signage and internal gambling related signage that is visible from the outside of the premises.

Inspectors will be engaging licensees and attending venues to assess compliance.

L&GNSW will be taking escalated enforcement action against any venue found not to be complying with the requirements.

From 1 December 2023, L&GNSW adopted a zero-tolerance enforcement approach regarding external gambling-related signage. This followed a compliance campaign which involved the removal of all external gambling related signage such as “VIP Lounge,” signage that includes dragon imagery or similar, and the removal of adopted imagery including images associated with gaming machines.

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External gambling related signage at hotels and registered clubs are subjected to the requirements of sections 43 and 44 of the Gaming Machines Act 2001 NSW (the Act).

These requirements are in place to continue supporting gambling harm minimisation by reducing the visibility and promotion of gambling, particularly to vulnerable individuals and the broader community.

Venues that are not yet compliant should consult the 2023 Compliance Campaign: External gaming signage for hotels & clubs position paper or contact the Hospitality Concierge for additional information on the requirements.

L&GNSW recommends venues conduct self-audits to ensure their obligations and requirements in relation to the Act are met. A Gaming Harm Minimisation Fact sheet is also available.

Breaches of section 43(1) and 44(1) of the Act can result in on the spot fines of $1100 per offence or a maximum fine of $11,000 per offence if prosecuted.

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“Rock the Month”: Spinmatic’s monthly promos to power operator growth

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“Rock the Month”: Spinmatic's monthly promos to power operator growth
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As summer reaches its peak, so do the opportunities for operators partnering with Spinmatic. The premium Slot developer has launched two new exclusive offers as part of its ongoing Rock the Month campaign – a high-impact promotional series featuring targeted incentives, exclusive discounts and seasonal themes designed to support long-term operator growth.

After a strong debut in July with Fruit Fiesta and Summer Splash, Rock the Month has quickly become a key initiative for many partners, offering unique commercial advantages each month, exclusively to Spinmatic clients.

For August, the provider turns up the heat with two new offers: Summer Crash and Freespin Hype. Both are available to apply for until July 25 and designed to help operators during the summer’s most critical weeks.

This August’s promotions offer Spinmatic’s partners the chance to unlock up to 60% off in Revenue Share, depending on the offer selected. Full activation details – including game selection and placement requirements – are reserved exclusively for Spinmatic’s operator network.

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“Our goal with Rock the Month is to bring consistent value to our partners,” said Norbert Mathies, Managing Director at Spinmatic. “We know operators are constantly under pressure to keep players engaged, so with our monthly promotions, we aim to offer something that’s genuinely useful. With two offers available each month, operators can choose the one that best fits their market. At the same time, we’re helping them get more out of their campaigns and explore new games with reduced risk.”

Spinmatic encourages operators and industry stakeholders to stay tuned, as new Rock the Month promotions will continue to be rolled out monthly. For those looking for innovative ways to increase player loyalty and revenue, now is the perfect time to get involved.

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KSA Conducts Research into Effectiveness of Player Protection Rules Introduced in H2 2024

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The Dutch Gaming Authority (KSA) has again conducted research into the effectiveness of the various rules that were introduced in the second half of 2024 to better protect players in the online gambling market. The first study showed that the new rules had an effect: the number of high losses per account decreased. The second measurement shows that this positive effect continues. The channeling based on players (the share of players who play with legal providers compared to illegal ones) has also not decreased significantly.

The Ministry of Justice and Security made it mandatory for players to contact the provider before they can set a deposit limit of more than €150 (young adults) or €350 per month, so that providers can inform them of the dangers of such a high limit. The introduction of this mandatory contact moment has caused the number of players who set a high deposit limit to drop to less than 50%.

The limits on net deposits are also effective. When depositing more than €300 (young adults aged 18-24) or €700 (24 and older), the provider checks whether a player can afford that amount and if this is not the case or the check is not carried out, the provider must block deposits for the rest of the month. The percentage of players who deposit more than the deposit limits (€300 for young adults aged 18-24 or €700 for 24 and older) has further decreased from 9.7% to 2.2%. In the previous measurement, this was still 3.8%. For young adults, this percentage decreased from 12% to 1.9%. In the previous measurement, this was still 2.8%.

The lower deposit limits have also reduced the average loss per player account by 31%, from an average of €116 per month in the eight months before the introduction to €80 per month in the eight months after the introduction. The number of accounts that an average player has (2.4) has hardly changed. So there is still no evidence that players have started playing with more different providers in order to be able to spend more money across the board.

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The gross gaming result (BSR, stake minus prizes paid out) of legal providers has decreased by 8% compared to a year earlier. Before the introduction of the rules, approximately 4% of players lost more than €1000. Now that is 1%. This shows that the introduction of the policy rules ensures that excessive gambling occurs less with legal providers. However, there is a chance that heavy players now play with illegal providers.

The channelling based on players remains high: 93% of players only play with legal providers. In addition to the channelling of players, the KSA also looks at the channelling in terms of money. This has not yet been included in the follow-up report for technical reasons. The search volume of the top 100 illegal websites does show an increase. This could indicate a growth of the illegal market. In the impact assessment on the increase in the gambling tax, which will be published in July, the KSA expects to publish the figures on the channelling in terms of money.

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