Stadtcasino Reports 2019 Revenue Growth, Online Vertical Looks Promising

Stadcasino Baden Group reported 16.2% growth year-on-year, to CHF 75.3 million, including CHF 7.6 million extra generated from its launch of online gambling operations in 2019. Jackpot.ch, the company’s online brand, was the first to launch online gaming in Switzerland when it went live in July last year.

Casinos in Baden and Davos

The growth in revenue the Swiss-based casino group generated mainly from its land-based venues, Grand Casino Baden contributing the most, CHF 65.6 million, while Casino Davos, the co-owned property together with Ardent Group based in Belgium and the Davos Tourism Organisation, adding another CHF 2.1 million to the total.

The igaming brand of Stadcasino Baden Group that launched back in July, Jackpot.ch, managed to generate CHF 6.3 million, while the other online gaming website, Casino777.ch, that went live in September through the Davos property, generated a further CHF 1.3 million to contribute to the total revenue from the vertical.

Land-based gaming facilities in the country have been shut down since mid-March, leaving the online gambling as the only source of revenue for the group since then. Despite small in numbers due to the relatively small market and the recent launch, the company’s igaming vertical promises a lot, continuing to channel players from unlicensed operators.

Online Gambling Expanding

The Jackpot.ch brand is powered by Gamanza, an igaming platform provider where the Group holds 50% of the equity, and is expected to add further to the revenues of the company as it would add new clients, negotiations with potential new customers currently under way. The Casino777.ch brand operates on the Gaming 1 platform, a B2B subsidiary of Belgium’s Ardent Group.

The company’s CEO, Detlef Brose, outlined that the business was in a position to weather the storm coming from the health crisis, due to the strong performance posted in previous years. The Group did not consider layoffs, as small adjustments such as moving employees to short-term work, allowed the company to continue to pay everyone from staff in full.

Detlef Brose pointed out the company had managed to expand the range of its games during the past few months considerably and subsequently to positively impact on the sales numbers, so that to partially offset the lack of revenue from the traditional business. Stadtcasino Baden CEO also raised his concerns regarding the uncertainty how long after the re-opening it will take for the casinos to recover.

Stadtcasino Baden Group took well on its social role during the unprecedented times of the spreading infection, providing hygiene masks to two care homes for elderly people, while letting its garage being used free of charge for a rehabilitation centre. The gambling operator also donated food, as well as a small amount of cash, to the hospital in Aargau.

The online gambling vertical in Switzerland continues to expand, the latest candidates,  Casino Lugano and Casino du Lac Meyrin, awaiting for the approval from the regulator.