Despite facing a multitude of challenges, Entain’s H1 results for 2024 have surfaced as a sign of the company’s resilience. Analysts perceive that this promising outcome may overcome the company's challenges of the past year’s difficulties, suggesting a glimmer of hope at the end of Entain's seemingly dark tunnel.

Much of Entain's optimism can be attributed to the work of Stella David. Her contribution to the company’s turnaround story will undoubtedly be remembered in Entain’s history.

In the first half of the year, Entain reported a 6 percent increase in its total net gaming revenue, reaching ￡2.56 billion by the end of June. This growth represents an 8 percent rise at a constant currency level. The company’s underlying earnings also saw a positive trend, advancing by 5 percent to ￡523.8 million. Entain also managed to significantly reduce its losses from ￡502.5 million to a much lower ￡46.9 million.

The performance of net gaming revenues varied across different regions. In the UK and Ireland, there was a decrease of 6 percent, while the international division saw a modest growth of 3 percent.. However, the central and eastern Europe regions outperformed others with a robust 12 percent increase. Following these encouraging results, Entain, a FTSE 100 company, declared an interim dividend of 9.3p, marking a 5 percent increase.

These figures demonstrate Entain’s ability to generate revenue growth in a period when market conditions have been very challenging. The company’s strategic focus on diversifying its revenue sources across different regions has played a key role in this positive outcome. The significant reduction in losses also indicates improved operational efficiency and effective cost management strategies. The decision to increase the interim dividend reflects the company’s confidence in its financial health and future prospects. Overall, the net gaming revenue paints an encouraging picture of Entain’s performance during this period and its potential for sustained growth in the future.

In the face of heightened competition and tough regulatory shifts in crucial markets, Entain found a silver lining in major football events. The first half of 2024 saw the company buoyed by tournaments such as Euro 2024, the European Champions League, and the English Premier League. These events contributed to a 6 percent increase in Entain’s total net gaming revenue, reaching ￡2.56 billion by the end of June.

The championship’s stronger than anticipated win margins gave a significant boost to Entain. The company reported a 5 percent increase in online net gaming revenues for the half-year, a notable improvement considering revenues were flat prior to the Euros and had even dipped by 2 percent in the first quarter.

Rob Wood, Entain’s chief financial officer, highlighted the positive impact of the 19 drawn games, noting that these results were beneficial as customers typically "don’t bet on draws".

In addition, Entain’s operations in Brazil saw a robust growth of 28 percent in the half-year, with Wood commenting that the country was beginning to hit its stride.

In response to these positive developments, Entain revised its full-year forecast for online net gaming revenues. Instead of a previously expected low-single-digit decline, the company now anticipates a low-single-digit increase. It also projected underlying earnings to be between ￡1.04 billion and ￡1.09 billion, which is 2 percent above the consensus expectations in the City. This surprising return to revenue growth reflects the company’s resilience and adaptability in a dynamic and unpredictable market.

However, the landscape was less rosy for BetMGM, Entain’s joint venture with MGM Resorts in the United States. With fierce competition and escalating marketing costs, BetMGM recently issued a warning that its annual losses would exceed previous estimates. Despite this, BetMGM managed to stabilize around a 13 percent market share in the US legal sports betting industry. The first half of 2024 was deemed a “year of investment” for BetMGM, with a focus on improving customer experience and stepping up investment in players.

These contrasting scenarios highlight the dynamic and challenging nature of the global gaming industry. Despite the hurdles, Entain’s performance in the first half of 2024 demonstrates its ability to drive growth and deliver value to its stakeholders.

Jette Nygaard-Andersen’s tenure as CEO of Entain during the COVID-19 pandemic was indeed a period of significant growth for the company, as was the case for many gaming companies. The shift to remote work and the increased free time led to a surge in online betting, contributing to a boom in the industry during the pandemic years.

However, it seems that Nygaard-Andersen’s legacy at Entain will be defined more by her aggressive mergers and acquisitions strategy. Her voracious appetite for M&A led to a series of 'shopping sprees', which, while expanding Entain’s portfolio, also raised concerns about over-expenditure. Her inability to curb this spending has been noted as a key aspect of her leadership style.

While this approach may have contributed to short-term growth, questions remain about Entain's long-term sustainability and the impact on the company’s financial health. As the company moves forward, it will be interesting to see how it approaches the path set by Nygaard.Andersen and how it will manage its growth strategy in the future.

Stella David has indeed played an instrumental role in steering Entain back to a successful trajectory. Her leadership has been marked by strategic decisions and effective governance that have revitalized the company. Now, as she prepares to pass the baton of leadership to Gavin Isaacs, it’s clear that her tenure has been transformative for Entain.

Under Stella David’s interim stewardship, Entain has rebounded from the challenging period of the Nygaard-Andersen era. David's sensible and adept management and strategic foresight have not only steadied the ship but also set it sailing back towards sustained growth. The glory once associated with Entain has been restored in H1 2024.

As David steps into her new role as Chairperson of Entain with Isaacs at the helm as CEO, the company stands on more solid ground than it did six months ago. The legacy of David’s successful tenure provides a strong foundation for Isaacs to build upon.

As we look ahead to the second half of 2024, the key question that emerges is whether Gavin Isaacs will be able to sustain the positive momentum established under Stella David. Will he successfully carry forward this upward trend and continue to steer Entain on a successful course during the second quarter? Only time will tell.

Entain PLC, listed on the London Stock Exchange under the ticker symbol ENT, saw its share price increase by 1.44 percent to 557.90 GBX.

The Secretary for Economy and Finance of Macau, Lei Wai Nong, shared that as of June, residents hold 90.3 percent of intermediate or senior management positions at the city's gaming concessionaires, surpassing the required threshold of 85 percent. During a session at the Legislative Assembly (AL), Lei highlighted this achievement as part of the government’s ongoing efforts to boost local employment within the gaming sector.  

According to a report by Macau Business, Lei also noted that the Labour Affairs Bureau (DSAL) has been collaborating with gaming operators to implement an "Employment + Training" plan, designed to offer professional development opportunities for residents. The plan has already seen 21 initiatives launched, with 379 residents successfully beginning their roles.  

Despite this progress, the session also saw Lei come under fire from lawmakers who expressed dissatisfaction with the government's handling of labour-related illegalities. According to the report of the Macau Daily Times, Lawmaker Nick Lei was particularly vocal, criticising the Secretary for failing to address the persistent issue of illegal work in Macau. Nick Lei accused the government of being reactive rather than proactive. He also highlighted the prevalence of illegal services such as unauthorised photography and driving, which are often advertised online and go unchecked by authorities.  

In response, a representative from Lei Wai Nong's team mentioned that the Public Security Police Force (PSP) has been conducting inspections to combat illegal work. However, these efforts were deemed insufficient by lawmakers, who demanded more robust actions.   

The session also addressed broader labour concerns, particularly regarding the treatment of non-resident workers (TNRs) by companies. Lawmaker Ron Lam cited a recent case involving luxury retailer DFS, where employees were pressured to take unpaid leave. Lam questioned the government’s approach to regulating companies that exploit TNRs while maintaining local workers in precarious positions. He also called for greater transparency in the disclosure of TNR numbers and job categories to ensure a fair hiring process.  

In response, Lei Wai Nong mentioned that the government would reevaluate the quotas for companies found violating labour laws, but lawmakers remained sceptical about the effectiveness of these measures.  

While the government's success in increasing local employment in the gaming sector was acknowledged, lawmakers continue to press for stronger actions against illegal work and labour violations in Macau.?

Vanuatu has rolled out its new online portal, enabling the processing of applications for its recently introduced online gambling licence. Earlier this week, the Pacific Islands nation has revamped its licencing framework, attracting international iGaming companies, startups, and established operators seeking a cost-effective licencing environment. ??

This is in accordance with the country's Interactive Gaming Act, passed in 2000, which has been updated to keep pace with the evolving gaming landscape. The initiative, aimed at B2C operators active in grey market jurisdictions, allows these operators to acquire a Vanuatu Interactive Gaming Licence entirely online through the portal, accessible at https://www.vga.vu.??

The Vanuatu Gaming Authority (VGA) oversees the new licencing framework, with CEO Macyn White highlighting the benefits of the online application process. According to White, the new Online Applications Portal addresses all the needs, enabling interested parties to get informed and operational quickly. The VGA's new approach aims to position Vanuatu as a preferred jurisdiction for online operators targeting pre-regulated markets.  

The new Vanuatu gambling licence offers several attractive features, including a €5,000 application fee, a €10,000 annual license fee, and a licence validity period of 15 years. Additionally, a 1 percent Wagering Activity Tax on Gross Gaming Revenue (GGR) is applied. The licence also includes one URL, with the option to add more URLs for a moderate fee.??

White also explained earlier this week that the licence is specifically designed to cater to B2C operators by providing a regulatory environment that supports direct interaction with consumers. She added that the licence framework is flexible enough to accommodate various types of B2C operations, from online casinos to sports betting platforms, making it an attractive option for operators in this sector.  

The VGA collaborated with the Vanuatu Department of Customs and Inland Revenue to process applications and complete applications within two to three weeks. ??

A probe into the operations of Philippine Offshore Gaming Operators (POGOs) has unearthed allegations that former Philippine President Rodrigo Duterte may have overstepped his executive powers, encroaching on the legislative authority of Congress. ?

During a committee hearing in the House of Representatives, Batangas Rep. Gerville Luistro highlighted concerns that Duterte’s Executive Order (EO) No. 13, which termed online gaming and allowed POGOs to flourish in the country, constituted a legislative act—something exclusively within the purview of Congress.?

Luistro pointed out that EO No. 13 was the first instance where the term "online gaming" was officially mentioned in a presidential order, a term not found in the existing legal framework established by Presidential Decree No. 1869 and Republic Act No. 9487, which extended the franchise of the Philippine Amusement and Gaming Corporation (PAGCOR). “The term ‘online gaming’ was never mentioned in PD 1869 as well as in RA 9487,” she noted, raising concerns that the executive branch might have encroached upon the legislative powers of Congress. 

Atty. Harry Roque, who served as Duterte's spokesperson, was called upon to provide his perspective. Roque, however, explained that his role as spokesperson was primarily to communicate the President's decisions to the public, not to challenge them. “I could not actually countermand him. I could not correct him. He is my principal,” Roque emphasised, clarifying that his position did not entail influencing the President’s legal decisions.?

When asked if he believed that Duterte's EO No. 13 overstepped the bounds of executive authority, Roque maintained that all executive issuances are presumed constitutional unless successfully challenged in court.  

"Under our scheme of things, executive issuances, [and] legislative enactments are all presumed to be constitutional unless proven otherwise," he stated. This position underscores the presumption of legality that typically accompanies executive orders, leaving their constitutionality to be determined by judicial review. 

Luistro further argued that Duterte's EO No. 13 might have violated the separation of powers by effectively creating a new law — an action that constitutionally belongs to Congress. “When the [former] President issued Executive Order No. 13, it is the humble submission of this representation, he legislated, he amended, he repealed the law, an act which violates the fundamental principle of separation of power,” she asserted, highlighting the potential constitutional conflict arising from the executive order.?

Executive Order No. 13, issued during Duterte's presidency, aimed to clarify the regulation of online gaming in the Philippines, an industry that has since become both economically significant and controversial. The order expanded the oversight functions of the Office of the President to include online gaming, a move that critics argue circumvented existing laws governing PAGCOR's authority. 

Luistro's critique of EO No. 13 centred on the idea that it introduced new regulatory measures without the explicit approval of Congress, thereby undermining the legislative process. She reiterated that procedural laws should always defer to substantive laws, emphasising that the executive branch should not unilaterally extend its regulatory reach without legislative backing. 

Last month, Senator Risa Hontiveros cast doubt on Duterte's ties to POGOs. Hontiveros highlighted the possibility of a deeper connection between Duterte and POGOs, pointing out that Michael Yang, Duterte’s former adviser, might have links to several POGO companies. 

In July, President Ferdinand Marcos Jr. ordered the total ban of POGOs in the country. He instructed PAGCOR to wind down and cease operations of all POGOs, legal and illegal, by the end of the year.?

Marcos’ decision came after many high-profile cases and investigations linked to POGOs have come to light. The operations of POGOs in the Philippines are linked to crimes such as human trafficking, forcible abduction, homicide, illegal detention, kidnap-for-ransom, theft, and robbery-extortion.?