IGT and Everi announced Wednesday that Hector Fernandez will lead the upcoming combination of the two companies as CEO. Fernandez’s resignation as CEO of Aristocrat Gaming was announced earlier today after six years with the company and two years as CEO.
Fernandez will join the combined enterprise by the fourth quarter of 2025 after a customary non-compete period expires. IGT President, Global Gaming Nick Khin will lead the combined enterprises as interim CEO until Fernandez joins the companies.
“We’re thrilled to name Hector Fernandez as the future CEO of the combined enterprise,” said Apollo Global Management Partner Daniel Cohen in a statement. “As we look to position IGT Gaming and Everi as a premier, diversified customer-centric platform at the forefront of innovation in the gaming and fintech industries, Hector brings an impressive track record of successfully scaling operations and strengthening customer relationships while being a champion for strong values. Hector shares our vision to lead this talented global workforce and will foster a people-first culture across the combined enterprise.
A release stated that during his tenure at Aristocrat, Fernandez created and led several strategic initiatives that enabled gains in market share across multiple verticals while delivering strong revenue growth and increased profitability.
“I couldn’t be more excited to be part of this journey with IGT Gaming and Everi,” Fernandez said. “I look forward to partnering with the very talented teams at both companies, as well as the Apollo team leading the transaction.”
Following closing, the combined enterprise will be organized into three business units: Gaming, Digital, and FinTech. When Fernandez joins the combined enterprise, Nick Khin will serve as CEO, Gaming, a newly created role, and will oversee the land-based gaming businesses of the combined enterprise. Gil Rotem, current president of IGT PlayDigital, will serve as CEO, Digital, and Darren Simmons, current executive vice president and fintech business leader at Everi, will serve as CEO, FinTech.
“We’re excited for Nick to take on the additional responsibility of interim CEO upon closing of the acquisitions and are confident he will succeed in his role of leading the land-based gaming businesses of the combined enterprise once Hector officially joins,” Cohen says. “Under Nick’s leadership, IGT has meaningfully improved its industry position and continues to release top performing games across channels. We believe his deep understanding of customers and players, as well as his leadership and passion, will help set the foundation for future success. We are also pleased to have leaders of Gil’s and Darren’s caliber from both companies ready to take on key leadership roles in the combined enterprise.”
The previously announced acquisitions of IGT Gaming and Everi are expected to be completed by the end of the third quarter of 2025, assuming satisfaction of closing conditions, including certain gaming and regulatory approvals.
Hello and welcome to this week’s Igaming Focus newsletter!
On the slate this week:
Robinhood “keenly looking” at moving into OSB space
Watching with interest: The impact of trading giant Robinhood chief executive Vladimir Tenev telling investors that it is “keenly looking” at the sports betting space was felt immediately, as sports betting stocks dropped 3% in the aftermath.
OSB margins recover as sporting results help books
Bookmakers breathe “sigh of relief” as results swing back to favor operators
November normal: U.S. online bookmakers will have breathed “a sigh of relief” as margins recovered from a tough start to Q4, JMP said in a recent note. November trends had rebounded, and DraftKings chief executive Jason Robins recently noted that the month just gone had been more “typical” and even “on the positive side,” with margins above 10%.
Deutsche Bank said that with October in the rear-view mirror there were “reasons for optimism” although YTD promotional spend has increased 10.3% YoY across the six states it tracks (see visual below) while GGR has dropped 21.3%, “as such, promotions are representing 52.6% of GGR, up ~1,500 bps YoY,” Deutsche Bank said.
Standout among the majors: Jefferies said BetMGM’s handle had been progressing strongly in recent months and its margins were now also on a similar growth path. Of the major operators, “trends for BetMGM remain the most encouraging through the NFL season to date, particularly across recent weeks,” the analysts noted.
Online casino enjoyed a record month in October, with state reports showing a GGR increase of +34% YoY to a record $759m and “states reaching record highs.”
Fantasy slowdown for FanDuel but not DraftKings
It was all a fantasy: Despite their backgrounds in fantasy sports betting and the fact that their customer databases have played key roles in enabling FanDuel and DraftKings to become the dominant U.S. sports betting brands, only DraftKings has maintained its focus on the vertical.
VIP business driving Fanatics progress
Fanatical: Fanatics Betting and Gaming is making strong progress as it makes “a strong play for podium positions in its U.S. online sports betting state markets” as it “captured third place in the massive New York OSB market and settled marginally behind third placed BetMGM in Maryland during October,” according to Vixio.
FanDuel and DraftKings are U.S. bettors’ favorite apps
Bonusing key recruitment tool for Fanatics and ESPN Bet
FanDuel and DraftKings continue to be U.S. bettors’ favorite sports betting apps, according to the latest Morgan Stanley biannual sports betting survey.
Grand Prix brings mixed betting fortunes to Las Vegas
Sin City set to look for contract extension as F1 deal enters final year
Vegas mix: Betting operators reported mixed performances as a result of the Formula One Las Vegas Grand Prix that was held during the weekend of 24 November. The Las Vegas Review-Journal said BetMGM’s handle doubled compared to last year’s maiden Grand Prix, while Red Rock Resorts’ Station Sports also enjoyed record handle and easily beat last year’s total.
French igaming sector faces uncertain future…
… as government loses no confidence vote
Political upheaval: Hopes of seeing online casino regulated in France, the largest European market yet to regulate the vertical, next year have been thrown into doubt as MPs voted to overthrow the government yesterday.
Oddschecker plans to issue its own set of awards to UK sportsbooks, with categories ranging from ‘most popular sportsbook’ to ‘best in-play product’ and ‘best bet builder’. The company said it will use its site traffic and betting activity metrics and combine them with user opinions to decide on its final list of winners, which will be announced in January 2025.
Miriam Adelson, the widow of Las Vegas Sands owner and committed igaming opponent Sheldon Adelson, is reportedly investing millions of dollars to push for casino legislation in Texas. Local press reports said she had donated nearly $14m to legislators so far in 2024. The Texas legislative session is set to begin on January 14, but sports betting regulation is still some way off.
iGaming Ontario, which represents the licensed companies operating in the province, will become a standalone agency in 2025 and no longer report to the Alcohol and Gaming Commission of Ontario. Both currently report to the Ministry of the Attorney General. The move is hoped to ease potential conflicts of interest as AGCO also oversees the Ontario Lottery and Gaming Corporation, which looks after Ontario’s retail casinos and runs highly successful online gambling products.
