Stadtcasino Baden Group Generates CHF7.6m Revenue from IgamingJune 1, 2020 John Isaac
Thursday the 7th of May 2020 saw Switzerland’s Stadtcasino Baden Group reveal that it generated CHF7.6m ($7.8m/€7.2m/£6.3m) in revenue through the launch of online gaming in 2019. The Stadtcasino Baden Group operates the Grand Casino Baden and co-owns the Casino Davos in Switzerland. The operator was the pioneer of online gaming in Switzerland. It was the first to launch igaming in the country through the platform Jackpots.ch which went live in July last year. The group also reported that their total revenue grew by 16.2% year-on-year to CHF75.3m for the year.
Source of the RevenueThe group’s revenue came predominantly from their land-based properties. Grand Casino Baden contributed CHF65.6m to the full-year total. Casino Davos, on the other hand, added revenue of CHF2.1m which represented and increase of 14.6%. Visitor numbers for Casino Davos, which also co-owns Belgium’s Ardent Group and the Davos Tourism organization, rose by 2.9% while those from the Baden property rose by 3.7%. Following the July 2019 launch, Jackpots.ch revenue for the year amounted to CHF6.3m. Casino777.ch, Casino Davos’ igaming brand which was launched later in September 2019, added a further revenue of CHF1.3m. The Jackpots.ch platform is powered by igaming platform provider Gamanza which holds a 50% stake. Casino777, on the other hand, uses a platform provided by Ardent Group’s B2B subsidiary, Gaming1. The Stadtcasino Baden Group contributed a revenue of CHF36.3m to Switzerland’s national pension fund Alters-und Hinterlassenenversicherung (AHV). Start-up costs related to igaming resulted in a profit decline to CHF3.6m, compared to CHF7.3m in the previous year.
The Impact of the Covid-19 Crisis on Performance
Early this year, Switzerland’s casinos were ordered to shutdown to curb the spread of the coronavirus (Covid-19). This has resulted in the slowing down of operations and thus igaming remains the only source of revenue for the operator. The Stadtcasino Baden Group chief executive Detlef Brose mentioned that their strong performance in the previous years put the business in a position to withstand the impact of the crisis. He also confirmed that employee layoffs are out of the question and that they are paying all their staff in full despite the short-term working. In an effort to support the government efforts in combating the crisis, the operator has provided hygiene face masks to a number of nursing homes and it has also provided the use of one of its parking garages to staff of a rehabilitation centre at no cost. The Group made a donation of CHF5,000 plus food to the Cantonal Hospital in Aargau, where the company is based. It is also supporting clubs through sponsorship agreements. Mr. Brose also confirmed that the operator is currently supported by their igaming revenue. He was quick to admit that their igaming sector was relatively small considering that the market has only gone live recently and is still attracting players away from unlicensed platforms. The range of games on the igaming platform has also been expanded considerably especially during the wake of the Covid-19 crisis and this, the company reports, has had a positive impact on sales. The 50% stake in Gamanza is also expected to provide the company with additional revenue as it continues to sign up new clients, with negotiations reportedly underway with a number of potential partners.