Entain's share price has tumbled...

[NZRacing]

https://www.gamblinginsider.com/news/23372/entain-share-price-hits-lowest-point-since-august-2020

Quote

Moreover, speculation is surfacing about Entain’s future, particularly in light of reports suggesting MGM Resorts International may consider a bid for BetMGM. This bid would focus on acquiring the BetMGM joint venture, rather than the entirety of Entain.

That would be a disaster for Entain but it looks on the cards to happen.

[holy ravioli]

In keeping with the reputation of NZ Racing/TAB to pick...'winners'!😗

 

[The Centaur]

Yes this is interesting topic. The slide seems to be consistently downwards. Replacing the IT infrastructure with their propriety owned  not wise if they would want to bail out of the New Zealand adventure.

[holy ravioli]

Possibly the saviour of NZ Racing....will need...saving!😀

[The Centaur]

4 hours ago, holy ravioli said:

Possibly the saviour of NZ Racing....will need...saving!😀

Certainly if they carry on with some of their hair brained schemes. I assume they are instigators of the top ten banned trainers race. Stupid to say the least but perhaps because of its stupidity could be a NZTR idea.

[Chief Stipe]

4 minutes ago, The Centaur said:

Certainly if they carry on with some of their hair brained schemes. I assume they are instigators of the top ten banned trainers race. Stupid to say the least but perhaps because of its stupidity could be a NZTR idea.

The only reason you would promote that race is if the punting return was more than the expenses.

In my opinion these "novelty" races only serve to diminish the quality of the product and the breed.

Serious punters will avoid betting  on them eventually.

[curious]

52 minutes ago, Chief Stipe said:

Serious punters will avoid betting  on them eventually.

Not if they are competitive betting races they won't

[Huey]

1 hour ago, The Centaur said:

Certainly if they carry on with some of their hair brained schemes. I assume they are instigators of the top ten banned trainers race. Stupid to say the least but perhaps because of its stupidity could be a NZTR idea.

Yes a country trainers series would have been a better idea, easy enough to do.

[mikeynz]

Interesting comments about excluding certain sectors but am I correct that the biggest raceday , Karaka is exactly that, or am I missing something ?

The only thing all races with restrictions should have is they are penalty free, simply because not everyone can compete, just my thoughts.

[NZRacing]

Quote

Throughout the course of the interview it was very clear that Dean Shannon very much empathises with the concerns of punters. He made it clear that the odds customers receive here will be the same that Entain offers to customers across the ditch.

That was a big call early on. They own three I know of in Australia - Neds, Ladbrokes and Sportsbets.  NZ punters don't receive the same odds especially on sports events. They want GEO blocking, not  a good look when your not supplying the same service odds wise as across the ditch when you say otherwise.  When MGM got involved with another bookmaking outfit to partner in the UK the writing was on the wall that Entain has upset them business wise. Bad move to have upset them with the US market so big.

The odds on the Chair woman to be gone gone by Xmas would be at a short price. A near 50% drop in share price this year is alarming given how well other world bookmaking firms have performed.

[Huey]

On 6/12/2023 at 2:27 PM, The Centaur said:

Certainly if they carry on with some of their hair brained schemes. I assume they are instigators of the top ten banned trainers race. Stupid to say the least but perhaps because of its stupidity could be a NZTR idea.

Absolute farce that the likes of small trainers like  Lance Noble are eligible for the race.

[Freda]

On 6/12/2023 at 4:14 PM, Huey said:

Yes a country trainers series would have been a better idea, easy enough to do.

Is it though?   We don't have clearly defined metropolitan/provincial/country areas.   For a small nation such as NZ, maybe met/provincial would be the more logical categories, but regardless, we don't have them.

And many of the biggest trainers are based at the likes of Matamata, which would be deemed a country town and is certainly not a large city.  I think that categorisation of that type is unworkable in our country.

And that was the very idea that -  from my recollection - started the downgrading and subsequent underfunding of smaller clubs, to the detriment of all.  John Wheeler started the Queensland winter campaign idea, and floated the idea [ to the then RIB incumbent Garry Chittick ]  about 'grading' clubs so they could be termed ' country' or otherwise, making it easier to place NZ horses when racing over there. 

As there wouldn't have been a training centre in NZ further than 100km from a GPO at the time, we were all effectively categorised as  'metropolitan'.

Don't know how that works now,  obviously we have GPO's although it is next to impossible to find an ordinary, stand-alone Post Office.  The closest one to me is lurking at the back of my local bookshop.

[Huey]

15 hours ago, Freda said:

Is it though?   We don't have clearly defined metropolitan/provincial/country areas.   For a small nation such as NZ, maybe met/provincial would be the more logical categories, but regardless, we don't have them.

And many of the biggest trainers are based at the likes of Matamata, which would be deemed a country town and is certainly not a large city.  I think that categorisation of that type is unworkable in our country.

And that was the very idea that -  from my recollection - started the downgrading and subsequent underfunding of smaller clubs, to the detriment of all.  John Wheeler started the Queensland winter campaign idea, and floated the idea [ to the then RIB incumbent Garry Chittick ]  about 'grading' clubs so they could be termed ' country' or otherwise, making it easier to place NZ horses when racing over there. 

As there wouldn't have been a training centre in NZ further than 100km from a GPO at the time, we were all effectively categorised as  'metropolitan'.

Don't know how that works now,  obviously we have GPO's although it is next to impossible to find an ordinary, stand-alone Post Office.  The closest one to me is lurking at the back of my local bookshop.

Perhaps , but a country track would probably have less than 60 horses trained at that track for a start. It's not hard to take an honest discerning approach to designating country tracks. Id even say Trentham & Te Rapa cd be considered based on numbers in training.

[holy ravioli]

On 12/6/2023 at 10:03 PM, NZRacing said:

That was a big call early on. They own three I know of in Australia - Neds, Ladbrokes and Sportsbets.  NZ punters don't receive the same odds especially on sports events. They want GEO blocking, not  a good look when your not supplying the same service odds wise as across the ditch when you say otherwise.  When MGM got involved with another bookmaking outfit to partner in the UK the writing was on the wall that Entain has upset them business wise. Bad move to have upset them with the US market so big.

The odds on the Chair woman to be gone gone by Xmas would be at a short price. A near 50% drop in share price this year is alarming given how well other world bookmaking firms have performed.

Any idea why you can't bet on your NZ TAB a/c when you are overseas?

[NZRacing]

Betting with the TAB is prohibited in some overseas jurisdictions due to a number of legal obligations that we have to adhere to. This includes the likes of countries where offshore betting is not allowed, or countries where our betting provider precludes us from offering our services. We also have obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act for short). 

Currently we only offer our services in New Zealand (and the dependent territories of Niue, Cook Islands and Tokelau). Persons located in Australia may have a TAB account for use while they are in New Zealand only.

Please note that customers with Australian addresses can only use their TAB account while physically located in New Zealand due to Australian legislation.

-------------------------

You have to wonder why the NZ TAB didn't seek a license to operate in Australia. Cost was only about 20k. Oviously they were clueless that changes were going to take place. It went through legislation and the media reported on its progress before that.

John Allen quote re new betting platform - He said: “What they have done is ensure the New Zealand TAB, a significant and valuable industry asset, can now compete with the rest of the world, increase our revenue and in turn, our distributions back to racing and sport.”

-------------

Ha not much point competing with the rest of the world when thy can't access it.

[Nowornever]

On 9/12/2023 at 10:56 AM, holy ravioli said:

Any idea why you can't bet on your NZ TAB a/c when you are overseas?

You can. I take several trips a year and via some crafty software it is quite easy to fool the TAB into thinking I am still at home. They can not stop it and never will. Their only consolation is half the punters do not know how to beat the Geo blocking when overseas.

[Shab]

4 hours ago, Nowornever said:

Their only consolation is half the punters do not know how to beat the Geo blocking when overseas.

A punter who isn't able to work that out shouldn't be punting in the first place.

[holy ravioli]

9 hours ago, Shab said:

A punter who isn't able to work that out shouldn't be punting in the first place.

Well I can't work it out......so just won't bother.There will be alot like me I expect.At least it will help increase ...turnover!🤪

[Chief Stipe]

On 11/12/2023 at 9:27 AM, holy ravioli said:

Well I can't work it out......so just won't bother.There will be alot like me I expect.At least it will help increase ...turnover!🤪

Use Google like you do for your economic theories and other slogans.

[The Centaur]

On 8/12/2023 at 5:04 AM, Freda said:

Is it though?   We don't have clearly defined metropolitan/provincial/country areas.   For a small nation such as NZ, maybe met/provincial would be the more logical categories, but regardless, we don't have them.

And many of the biggest trainers are based at the likes of Matamata, which would be deemed a country town and is certainly not a large city.  I think that categorisation of that type is unworkable in our country.

And that was the very idea that -  from my recollection - started the downgrading and subsequent underfunding of smaller clubs, to the detriment of all.  John Wheeler started the Queensland winter campaign idea, and floated the idea [ to the then RIB incumbent Garry Chittick ]  about 'grading' clubs so they could be termed ' country' or otherwise, making it easier to place NZ horses when racing over there. 

As there wouldn't have been a training centre in NZ further than 100km from a GPO at the time, we were all effectively categorised as  'metropolitan'.

Don't know how that works now,  obviously we have GPO's although it is next to impossible to find an ordinary, stand-alone Post Office.  The closest one to me is lurking at the back of my local bookshop.

You mention John Wheeler. Given his experience both NZ and internationally I don't think racing ever has made sufficient use of his international experience. Granted he was on a members council that however didn't make him visible to the public and racing administrators. I remember John being in the Jay Cees when in his twenties and even then he was a superb speaker and could relate to those around him.

[Freda]

He's certainly an excellent speaker, I attended a Bomac seminar years ago where both he and Ken Browne were down to address.  I imagined being bored shitless, but on the contrary, both were riveting speakers and kept us all entertained and informed.

But that didn't give him a mortgage on visionary ideas, quite the contrary.

[Chief Stipe]

9 minutes ago, Freda said:

He's certainly an excellent speaker, I attended a Bomac seminar years ago where both he and Ken Browne were down to address.  I imagined being bored shitless, but on the contrary, both were riveting speakers and kept us all entertained and informed.

But that didn't give him a mortgage on visionary ideas, quite the contrary.

Where was he when the Central Districts Trainers didn't want the Awapuni Synthetic track?

[NZRacing]

You didn't need to be a distant relative of Nostradamus to see this one coming .

https://news.sky.com/story/entain-chief-executive-quits-after-gambling-firms-585m-bribery-probe-payout-13029317

Edited December 13, 2023 by NZRacing

[The Centaur]

6 hours ago, NZRacing said:

You didn't need to be a distant relative of Nostradamus to see this one coming .

Pity to "see" her go.

[The Centaur]

Seems Entain has been jumping into countries just as they did with New Zealand. Some interests in these countries not happy. Example below that of Poland.

THE HEAD OF ENTAIN UNDER FIRE. ARE THERE MAJOR CHANGES COMING IN THE STRUCTURES OF THE NEW OWNER OF STS(Poland)?
The head of Entain is under fire. Are there major changes coming in the structures of the new owner of STS?
12/12/2023

BETTING
At the end of last week, the Financial Times published a famous article announcing an upcoming earthquake for the world's tycoon. The material quotes statements by important shareholders of the gambling tycoon Entain, who direct accusations against the company's CEO - Jette Nygaard-Andersen. The head of Entain is criticized, among other things, for her decision to take over STS.

Entain under pressure from shareholders
Dark clouds are gathering over Entain - a significant brand in the gambling world - which in 2022 took the first steps towards expansion into Poland by acquiring the Totolotka license, and a year later it officially came to our country thanks to the acquisition of STS. The CEO of the company, Jette Nygaard-Andersen, found herself in the eye of the storm, receiving a wave of criticism from Entain's shareholders, who were dissatisfied with the way she ran the business.

As the Financial Times points out, "Falling share prices, increasing regulatory pressure, increased shareholder activity and growing internal dissatisfaction" - these are just some of the problems that Nygaard-Andersen must face. The matter came to a head when 20 of the company's shareholders decided to speak out and, through the FT, directly criticize the incompetent leadership.

Since August this year, Entain's share price has fallen by 40 per cent, reducing its market capitalization to £5.1 billion. This is a much lower sum than what was on the table during the two takeover attempts in 2021.

Entain revenue growth (%) (Financial Times based on company information)

Entain's financial performance continues to deteriorate, even despite the fact that during Nygaard-Andersen's tenure, the company made 11 acquisitions for a total amount of £2 billion, and the amount allocated for further acquisitions is expected to double over the next five years. Ultimately, the current expansion into the Netherlands, Canada and Poland is not able to cover the problems that have been troubling the company for a long time.

– Nygaard-Andersen's dizzying rush towards constant mergers and acquisitions shows a lack of awareness and general understanding of business economics, as well as shareholder sentiment  - said one of Entain's 20 largest shareholders in the FT.

Chaos and criticism of the decision to take over STS
Organizational chaos - these are two words that clearly emerge from the shareholder statements. Over the past month, Entain was forced to close two acquired businesses. We are talking about the American e-sports platform Unikrn, purchased for GBP 50 million, and Totolotek, acquired for GBP 5 million. We can draw our own conclusions based on the steps taken by Entain on the Polish market.

Let us recall that the company decided to enter Poland by purchasing the Totolotka license, on which the bwin brand was originally to be launched. However, the launch of the bookmaker, which was very popular in our country before the amendment to the Gambling Act, was regularly postponed. Ultimately, the idea of launching bwin in Poland was abandoned and the iconic Totolotek was closed.

Before this happened, Entain undertook another, much larger investment in our country. In June, information was made public about the takeover of the largest bookmaker brand on the Polish market - STS - by the gambling tycoon. The transaction worth £750 million was made through the Entain CEE joint venture, created together with the Czech investment fund Emma Capital.

To say that Entain's takeover of shares in STS was not well received by shareholders would be a huge understatement.

In an open letter to the board, Eminence Capital, which owns a 2.1% stake in Entain, described the decision to acquire STS as "troublesome on many levels."

– The shareholders' reaction to the takeover offer of STS shares should be a warning signal to the previously deaf Entain management and management board. We are outraged by this transaction, and in the light of the changes in the company's share prices, we are certainly not alone in this reaction - we could read in one of the final fragments of the letter.

Interestingly, the owner of over 2% of shares in Entain announced that in the face of the steps taken by the company, he will most likely support the decision to sell the company: - Since shareholders are losing faith in Entain's ability to allocate capital (...), it is quite likely that they will support the sale of the company on to MGM at a much lower price than previously expected.

Clumsy attempts to get out of trouble
It is clear that the mood in the company has not been the best for at least half a year. Entain is trying to take steps to save the situation, but at this point it is difficult to imagine a solution that would not involve serious changes in the management board.

The actions taken by Entain are not very effective. The company, plagued by regulatory problems, is trying to avert the crises in Turkey and the Netherlands. While a settlement was reached in the "Land of the Crescent Moon", which Jette Nygaard-Andersen's defenders attribute to her resourcefulness, the fine imposed by the Dutch regulator on BetCity calls into question Entain's effectiveness in this matter.

The fact that the FT article devoted a lot of time to the issue of Nygaard-Andersen's numerous private flights, which, as the material indicates, were rare under the previous management, says a lot about the current climate in the company. Ultimately, the company decided to cut costs and this summer imposed a ban on all but essential travel.

Additionally, as a result of restructuring in the digital operations department, there were 300 layoffs, and the management decided to postpone the annual employee satisfaction survey to the next year due to the fact that reorganization is ongoing in some areas of the company.

The entire text should be treated as one big criticism of the company's CEO's actions, which, according to shareholders, are damaging Entain on many levels. There are many indications that Jette Nygaard-Andersen may not survive the storm that broke out last week.

Entain will most likely face major structural changes. Organizational changes began this summer and resulted in, among other things, the final termination of Totolotka's operations in Poland. The company's problems will most likely also be felt by STS, but we will be able to say more about their long-term effects in the more distant future.