U.K. Culture Secretary Matt Hancock said that horse racing should not be funded by "misery" as he announced new rules on fixed-odds betting terminals, according to the BBC. The maximum stake on the machines, dubbed the "crack cocaine of gambling" as people can bet up to £100 ($135) every 20 seconds, will be reduced to £2 ($2.70) under the proposals. Bookmakers said that the move "could lead to hundreds of shops closing." Research has suggested it could cost British racing up to £60M ($81M) annually (BBC, 5/17). In London, Mark Souster reported an Australian businessman "who has been described as the world’s biggest gambler" is reportedly the "controlling figure" behind a company that will "partner the new betting venture designed to support British racing." Zeljko Ranogajec, a 56-year-old Tasmanian nicknamed the "Loch Ness Monster" because he is "so rarely spotted," is one of two main shareholders in Colossus Bets, an online gambling company that is due to launch a "new pool betting venture this summer" in partnership with 55 U.K. racecourses. The new service, called Britbet, is being set up as a rival to the Tote, which was privatized in '11, and will have a "visible presence at the vast majority of Britain’s 60 race tracks from July" (LONDON TIMES, 5/17).
TENCENT ENJOYS STRONG Q1: THE ESPORTS OBSERVER's Trent Murray reported Chinese gaming and technology company Tencent released its Q1 '18 financial results, announcing "record profits and solid growth." Its revenue for the first quarter, based on generally accepted accounting principles, was $11.7B, up 48% over Q1 '17 -- and up 18% over Q4 '17. The company's operating margin increased from 39% in Q1 '17 to 42%. Profit for the period was $3.8B, up 65% year-over-year. This marked an 11% increase over Q4 '17. Tencent’s report "exceeded the expectations of many analysts" (THE ESPORTS OBSERVER, 5/16).
GARENA BOOSTS SEA LIMITED: Murray also reported southeast Asian e-commerce company Sea Limited announced its Q1 '18 results. The company earned $197M in adjusted revenue, which represents 81.2% growth over Q1 '17. That figure is "up 19.8% over last quarter." The bulk of Sea Limited’s revenue came from its digital entertainment platform, Garena. The platform achieved 42.6% growth year-over-year to $146M. Garena is responsible for the Garena Premier League, the region's professional league for League of Legends (THE ESPORTS OBSERVER, 5/17).
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