Don t do it again The Swedish experience with negative central bank rates in 20152019 CEPR

Don’t do it again! The Swedish experience with negative central bank rates in 2015-2019

Negative interest rates were once thought to be beyond the realm of economic theory. However, several central banks have recently implemented negative interest rates, and prominent economists have supported the move. In this column, we explore the actual effects of negative interest rates through the Swedish experience from 2015 to 2019. We find that the policy had only a small effect on inflation and contributed to increasing financial fragility. The lesson from this experiment is clear: Professor, Knut Wiksell Centre for Financial Research, Lund University

Authors

Lars Jonung

Associate Professor, Department of Economics, Lund University

Fredrik Andersson

Recently, several central banks have introduced negative interest rates, and prominent economists have supported this move (e. g. Bernanke 2020; Lilly and Rogoff 2019, 2020). Sweden's Riksbank was the first central bank to introduce negative interest rates in 2009, and commercial banks' deposit interest rates with the Riksbank were negative until 2010. The key policy rate (repo rate) remained positive until February 2015, when the Riksbank subsequently reduced it t o-0. 10%. It was further reduced t o-0. 50% in 2016, where it remained until January 2019 (Figure 1). The negative repo rate was finally abolished in December 2019. In recent years, 5 Among the three central banks, the ECB, the Danish National Bank, the Swiss National Bank and the Bank of Japan, the Riksbank was the first to leave the negative territory.

It is too early to fully assess the long-term effects of negative interest rates. However, short-term effects can already be observed. Here we focus on how negative interest rates affected the Swedish economy in the period from 2015 to 2019.

Figure 1. Riksbank repo rates (2010-2020). Percentages.

After the 2008 global economic crisis, the Swedish economy recovered rapidly in the second half of 2009. Real GDP exceeded pre-crisis levels as early as 2010. Inflation exceeded the Riksbank's official inflation target of 2% (Figure 2). Strong growth and rising inflation prompted the Riksbank to gradually raise its policy rate to 2% in 2011 and begin to normalize its policy. However, following the euro crisis and the downturn in the eurozone economy, inflation began to fall. In 2014 The inflation rate through 2015 was 0. 5% (Figure 2).

Background

Due to the decrease in inflation, Rixbank reduced policy interest rates to 0. 75 % (December 2013) and 0 % in 2014. Despite the decline in policy rates, inflation did not rise. As a result, Lixbank took a major step in the introduction of negative interest rates in February 2015. The negative interest rates were maintained until December 2019, and Lixbank has at least finished this policy.

Lixbank also started purchasing government bonds (quantitative easing) in February 2015, reaching about 300 billion crone by 2019, close to 6 % of GDP. Lixbank may have abandoned the negative policy interest rate, but the quantitative easing plan has not yet been withdrawn.

As clear from Fig. 2, after the introduction of negative interest rates, the domestic inflation rate increased, reaching 2 % of the inflation target in 2018. From this result, I want to conclude that the negative interest rate policy was successful. The purpose was to return the inflation rate to the goal, which succeeded. However, the inflation rate of Sweden has a high correlation with European economic circulation. Fig. 3 shows the inflation rate of Sweden (measured by the Public Price Index CPIF in Lixbank) and the unemployment rate in the Euro area. As the unemployment rate in the euro zone rises, the inflation rate of Sweden decreases, and vice versa. In fact, the correlation between Sweden's inflation rate and the euro area unemployment rate i s-0. 8. In contrast, the correlation between the inflation rate of Sweden and the Sweden unemployment rate is much lower, slightl y-0. 3.

The effects of negative interest rates

The Swedish economy is highly integrated with the European economy. The ratio of Sweden exports to GDP increased from 45 % to 50 % in the 1980s (before Sweden joined the EU in 1995). Thus, Sweden's economic cycle is less important than the European economy circulation of how Sweden's domestic inflation will change. As a result, improving the Euro economy in the euro area has been a major factor in increasing inflation, rather than a negative interest rate expansion policy based on negative interest rates.

The rise in inflation from 2015 to 2020 is not limited to Sweden. In the Euro area, inflation rose from minus 0. 3 % in February 2015 to 2 % in the mi d-2018, and 1. 4 % in January 2020. This is almost the same pattern for Sweden itself, rising from 0. 9 % in February 2015 to 2 % in the middle of 2018 and 1. 2 % in January 2020.

Figure 2 Inflation (2010-2020) of Sweden. percent.

Figure 3 The inflation rate of Sweden and the unemployment rate in the euro area (2010-2020). percent.

We argue that the impact of the negative interest rate of Lixbank on the domestic inflation rate is at most minor, but this kind of monetary policy is the other part of the Swedish economy, especially the exchange rate, housing market, household. We are observing the significant impact on the level of debt.

Figure 4 shows a change in the Sweden Crone / Euro exchange rate (the number of Sweden Crone per euro) related to the difference between the repo rates of Lixbank and the ECB repo. For the past five years, Lixbank has promoted more expanded policies than ECB, despite the solid Swedish economy compared to the Euro economy. As a result, the value of Sweden Crona has declined to 10. 50 SEK/EUR from the average exchange rate of about 9. 25 SEK/EUR from 1999 to 2012. During the negative interest rate period, Crone dropped by 20 % and fell from 1 euro = 8. 50 crone to nearly 11 crone. This decline increased the Sweden inflation rate by one point. In the process, Sweden's household budget became worse.

Figure 4 The difference between the change in exchange rate between SEK-EUR, the repo interest rate of the lixbank and the ECB repo interest rate (2009-2019).

Sweden's real estate price and household debt levels rose rapidly before the 2008 World Crisis, and probably increased in future adjustments and financial crisis (Anderson and Jonung 2016). Sweden temporarily suffered in the 2008 crisis, but had no major banks collapse and the housing market was not in danger. With the crisis and the rise in interest rates from 2010 to 2011, housing prices (Fig. 5) and household debt (Fig. 6) were stable, although they were historic high levels. < SPAN> Figure 3 Inflation of Sweden and unemployment rate in the Euro area (2010-2020). percent.

Figure 4 shows a change in the Sweden Crone / Euro exchange rate (the number of Sweden Crone per euro) related to the difference between the repo rates of Lixbank and the ECB repo. For the past five years, Rixbank has promoted more expanded policies than ECB, despite the solid Swedish economy compared to the Euro economy. As a result, the value of Sweden Crona has declined to 10. 50 SEK/EUR from the average exchange rate of about 9. 25 SEK/EUR from 1999 to 2012. During the negative interest rate period, Crone dropped by 20 % and fell from 1 euro = 8. 50 crone to nearly 11 crone. This drop increased the Sweden inflation rate by one point. In the process, Sweden's household budget became worse.

Figure 4 The difference between the change in exchange rate between SEK-EUR, the repo interest rate of the lixbank and the ECB repo interest rate (2009-2019).

Sweden's real estate prices and household debt levels rose rapidly before the 2008 World Crisis, and probably increased in future adjustments and financial crisis (Anderson and Jonung 2016). Sweden temporarily suffered in the 2008 crisis, but had no major banks collapse and the housing market was not in danger. Due to the crisis and the rise in interest rates in monetary policy from 2010 to 2011, housing prices (Fig. 5) and household debt (Fig. 6) were stable, although they were historic high levels. Figure 3 The inflation rate of Sweden and the unemployment rate in the euro area (2010-2020). percent.

Figure 4 shows a change in the Sweden Crone / Euro exchange rate (the number of Sweden Crone per euro) related to the difference between the repo rates of Lixbank and the ECB repo. For the past five years, Rixbank has promoted more expanded policies than ECB, despite the solid Swedish economy compared to the Euro economy. As a result, the value of Sweden Crona has declined to 10. 50 SEK/EUR from the average exchange rate of about 9. 25 SEK/EUR from 1999 to 2012. During the negative interest rate period, Crone dropped by 20 % and fell from 1 euro = 8. 50 crone to nearly 11 crone. This decline increased the Sweden inflation rate by one point. In the process, Sweden's household budget became worse.

Conclusions

Figure 4 The difference between the change in exchange rate between SEK-EUR, the repo interest rates of Lixbank and the ECB repo interest rate (2009-2019).

The fall in interest rates from 2012 to 2014 led to a further increase in property prices relative to disposable income. It also increased after the introduction of negative interest rates (by almost 50% relative to disposable income between 2012 and 2016). The financial supervisory authorities (Finansinspektionen) felt compelled to take action and imposed a set of credit controls on households from 2016, including write-off rules and debt ceilings. These controls curbed the rise in property prices and debt. However, since the credit controls mainly restricted young households and those with fewer assets, they also led to an increase in inequality. Nevertheless, the credit controls did not stop the upward trend in property prices. Figure 5 Average property prices (in flats) as a percentage of disposable income (2009-2018)

Figure 6 Household debt as a percentage of disposable income (2009-2018).

Historically, Swedish inflation has been a good indicator of business cycles. Inflation has risen in booms and fallen in busts. However, the correlation between the Swedish business cycle and Swedish inflation has weakened. In 2014, inflation was low, but the economy was doing well. Growth reached nearly 3% and the employment rate for 16-64 year olds reached a record high of nearly 80% (Figure 7). The employment rate was even higher than in the boom period before the 2008 financial crisis. 2 Monetary policy has now become clearly pro-cyclical rather than counter-cyclical. The Riksbank's interest rate hike in 2019 coincided with a real slowdown in the economy.

Figure 7 Employment rate for Swedish-born 16-64 year olds (2005-2020) 2017). percent.

Sveriges Riksbank Governor Stefan Ingves described the use of negative interest rates as an "experiment" that had never been tried before (Dagens Industri 2017). The experiment is over, at least for the time being. We conclude at this early stage that the costs to society of negative interest rates are likely to outweigh the broader benefits.

References

The Swedish economy is closely integrated with the European economy. Domestic inflation is driven more by euro area developments than by domestic conditions. The Riksbank's negative policy rates have not contributed to a significant increase in inflation, taking into account changes in the euro area economy. The policy failed to reach its 2% target and created large imbalances in the process.

The impact of negative interest rates on the domestic inflation rate is small (probably ignored), but the negative interest rate has a significant impact on housing markets and household debt levels. The imbalance, which had already begun to be apparent before the World Crisis, worsened. Real estate prices rose sharply and promote wealth inequality. Household debt has reached a record level. Sweden Crona's exchange rate dropped by more than 10 %, but there was no significant impact on domestic inflation. Furthermore, monetary policy has been turned in a direction to promote economic circulation during the negative interest rate experiment, pushing employment to a record level. In short, this created an economy with signs of "overheating". However, this is likely to be a shor t-term profit. Lixbank will face a major issue to adjust the policy in the next economic retreat.

Endnotes

The introduction of negative interest rates in 2015 was motivated by the fact that inflation was lower than 2 % of the official goal, combined with quantitative easing measures. The inflation rate was lower than the target, but there is no evidence that the low inflation rate (about 1 %) had a negative effect on economic performance. The labor market was strong and the economic growth rate was high. Focusing on the fixed inflation rate of 2 %, Lixbank had to take a negative interest rate experiment. By focusing on the tolerance for inflation goals, that is, not a fixed number, but the tolerance, Lixbank has a more subtle perspective on the stability of the macroeconomic economy as well as consumer price inflation. You would have done it (Anderson and Jonung 2017).

Of course, if Lixbank avoided negative interest rates, it would not claim that the Swedish economy was all successful. Rather, in the sense of suppressing asset price inflation, suppression of financial imbalance, and expanding room for the next economic recession, we will face a more balanced economy today. Suggests.

I’m an American living in Sweden. Here’s why I came to embrace the higher taxes.

Lixbank's law allows Lixbank to fix inflation goals in accordance with changes in economic conditions. Lixbank does not need to maintain an inflation rate of 2 % at any sacrifice (1997/98: 40). Nevertheless, Rixbank chose to do an experiment when there was no need to experiment in the Swedish economy. < SPAN> The impact of negative interest rates on domestic inflation is small (probably ignored), but the negative interest rate has a significant impact on housing markets and household debt levels. The imbalance, which had already begun to be apparent before the World Crisis, worsened. Real estate prices rose sharply and promote wealth inequality. Household debt has reached a record level. Sweden Crona's exchange rate dropped by more than 10 %, but there was no significant impact on domestic inflation. Furthermore, monetary policy has been turned in a direction to promote economic circulation during the negative interest rate experiment, pushing employment to a record level. In short, this created an economy with signs of "overheating". However, this is likely to be a shor t-term profit. Lixbank will face a major issue to adjust the policy in the next economic retreat.

Lixbank's law allows Lixbank to fix inflation goals in accordance with changes in economic conditions. Lixbank does not need to maintain an inflation rate of 2 % at any sacrifice (1997/98: 40). Nevertheless, Rixbank chose to do an experiment when there was no need to experiment in the Swedish economy. The impact of negative interest rates on the domestic inflation rate is small (probably ignored), but the negative interest rate has a significant impact on housing markets and household debt levels. The imbalance, which had already begun to be apparent before the World Crisis, worsened. Real estate prices rose sharply and promote wealth inequality. Household debt has reached a record level. Sweden Crona's exchange rate dropped by more than 10 %, but there was no significant impact on domestic inflation. Furthermore, monetary policy has been turned in a direction to promote economic circulation during the negative interest rate experiment, pushing employment to a record level. In short, this created an economy with signs of "overheating". However, this is likely to be a shor t-term profit. Lixbank will face a major issue to adjust the policy in the next economic retreat.

1) Swedish income taxes are not much higher than US taxes — but they give you an education

Economic policies change over time as policymakers learn from past failures and successes. Sweden has served as a testing ground for policy experiments in the past (Jonung 2000, Andersson 2016). The Riksbank, the world's oldest central bank, just finished its most recent experiment. At least not in a situation where the domestic economy is booming, domestic inflation is determined by foreign inflation, and financial imbalances are growing due to high asset prices. Andersson, F N G and L Jonung (2020), "Is the Swedish Phillips curve international? What does this mean for the Riksbank?", (The Swedish Phillips curve is international. What does this mean for the Riksbank?), Ekonomisk Debatt 4: 74-81.

Dagens Industri (2017), "Stefan Ingves: Det är ett amhällsexperiment vi aldrig gjort tidigare", (It is an experiment with the national economy that we never done before), Dagens Industri , 14 November.

2) Tax forms come already filled out

1 In short, the Swedish Phillips curve is no longer Swedish, but an international curve. The unemployment rate in the euro area has a stronger effect on Swedish consumer price inflation than the unemployment rate in Sweden. See Andersson and Jonung (2020).

2 These figures refer to people born in Sweden. Sweden's overall employment rate is declining due to high immigration.

More from First Person

When I visited the Apostle Islands National Lakeshore, an archipelago of 23 islands in Lake Superior, I suddenly missed Stockholm. Why? Because I was standing on a dock in Bayfield, Wisconsin, and realized that the Stockholm Archipelago (23, 000 islands) is closer to me as an American than the 23-island national park.

These wilderness islands, with their mind-blowing sea caves, can only be reached by a tour boat, which costs $151 for a family of two adults and three children. There is no free shuttle bus to Basswood Island, the closest island to the mainland, for 15 minutes, or a $10 shuttle bus to connect the islands. Sweden's heavily subsidized ferry system makes the Stockholm Archipelago accessible to all citizens and American tourists.

Swedish taxes are easy to pay, rational and efficient. And best of all, Swedish taxes increase opportunity, not take it away.

Americans seem to think that if they pay a lot of taxes, their access to public places is poor and the infrastructure is better. After all, all Americans know that Swedish taxes are high and don't want to be involved with high taxes.

3) There is no property tax

My wife and I have been working in Sweden and Wisconsin for over a dozen years, but the tax of Sweden is not so high. Surprisingly, the Swedish tax system had many attractive points. Swedish taxes are easy to pay, rational and efficient. Above all, Sweden's taxes expand their opportunities, rather than taking the opportunity.

Here are six reasons why I like Sweden taxes.

U. S. critics say that Swedans are paying 56 % of taxes. 56 % is the limit tax rate, a state tax and local tax paid by hig h-income earners to a certain amount or more. Only 15 % of Swedish pays taxes at this tax rate. The average Swedish direct tax payment was less than 27 % of the income. As I wrote elsewhere, my wife and I have paid about 22 % of American income as taxes. Sweden's income tax was 31 %. In other words, the income tax in Sweden was higher than the United States, but the tax payment was still less than on e-third.

And you can get much more taxes than the United States. In Sweden, universities are free and students are provided with housing allowances. Kerstin, a colleague's daughter, has just completed a fiv e-year dentist course. Her family has not paid anything to her education expenses. The Swedish government paid $ 340 every month to live while studying, and gave the right to borrow $ 700 every month. Five years later, she graduated with a $ 37, 153 debt.

4) Sales taxes in Sweden are higher — but less noticeable

In the United States, students in the dentistry graduated from the dental department alone with an average debt of $ 215, 000.

Last year, our U. S. Federation and State Tax Declaration were more than 30 pages, and it was completely blank that we downloaded. Our main job is to pay taxes during the two weeks of spending two weeks in Wisconsin.

Read the pile of banks and credit card records, record all occupational income except for salaries, and scan business deductions and charity deductions as much as possible. After this, we will hire tax experts, just like most of the US taxpayers.

5) We get cash instead of deductions

Tax preparation services cost American taxpayers more than $32 billion a year. My wife, Betty, and I each have a PhD, but that's not enough to understand the IRS's instructions. Finally, with our marriage still intact and a huge sigh of relief, we sign the form and send it off to the IRS.

Of course, despite our efforts, we're not sure the IRS will be happy. We might get audited and have to dig up this stuff again, because the government has three years to check and correct our returns.

In Sweden, the four-page tax return arrives in the mail already filled out. On Saturday morning, Betty and I review the return over coffee on the couch. Then, as always, we "sign" it by text on our cell phones. It takes 15 minutes and we're done. We don't have to hire an accountant or argue about whether a print cartridge we bought at the drugstore is a business expense.

Swedes expect their government to be efficient, and the tax authorities are efficient too. Only 11% of Swedish taxpayers say they find the form difficult to fill out. I can't imagine what would happen if we conducted a similar survey in the United States.

Property taxes date back to the founding of the United States. They are administered by local governments and most of them go towards schools, local roads and other services. They range from as high as 2. 38% in New Jersey to as low as 0. 28% in Hawaii. Property taxes hurt seniors, whose incomes don't rise but whose property taxes go up. In the great American tradition of tax-sapping pain, Wisconsin property tax bills come in a lump sum just before Christmas. The envelope reads, "I'm from the government, and I'm here to make you miserable."

When Sweden came to power in 2006 with a pro-tax conservative government, one of its first measures was to abolish property taxes and replace them with a flat fee. The real estate fee is 7, 112 kroner ($825 at current exchange rates) per house.

6) High taxes give me more choices and freedoms

This is the same for everyone, regardless of the assessed value of their home. In our co-op apartment in Stockholm, the fees are $12 a month. If we owned the same property in Madison, our taxes would be $18, 000 a year.

The author and his wife hiking in Sweden. (Tom Heberlein)

The Swedes and many other Europeans are unhappy when they come to the United States, buy something for $ 10, and the clerk asks for $ 10. 55. In the same way that we have the process of paying income tax into torment, and the real estate tax account appears before Christmas, sales taxes are an additional element that makes you notice them more.

Sales in Sweden are high, but you do not see them, and therefore it is easier to pay. If something costs 100 kroons, you pay these 100 kroons! Only when you look at the check, you see that it costs 80 kroons and 20 Croons of VAT (value added tax). Many things are taxed at lower rates - 12 percent for dinner or buying products, 6 percent (half a percent more than our sales tax in Madison) for books and tickets for cultural events and trips around the country. For health products - zero percent.

Indeed, sales tax is regressive; Poor people pay most of their income in the form of this tax. In the United States, a 25 percent sales tax would have to be compensated by some subsidies for our many poor people. But since in Sweden the distribution of income is narrower, sales tax is less regressed than in the USA.

Negatve Swedsh mpacts brngs GG declnng revenue

米国の所得税対策があまりに理由のひとつは、税額控除によって特定のに報いようとしてことだ。もしあなたがか（ソーラーパネルをするするよう）を、領収書と L ことができれば（私はウィスコンシンでの夏の「休暇」のことこと考えている、フォーム h の 36 行目に数字記載することができ税金が安くなるなるなるなるなるなるなるなるなるなるなるなるなる

いい気分だろうか？パネルが報われたがするだろうか？それとも単なる税金の申告書数字に過ぎのだろうか？？？かかかかかかかかか

スウェーデン政府は、あなたが何かすることを望むなら、あなたにお金与える。例えば例えば、子供産むことは社会にとってこと、親にはおがが。アメリカ " と所得税から控除される。では毎月小切手をもらい、でで靴買うことができる。子ども子ども人につき毎月毎月毎月毎月ドル、 4 人のは最大最大最大最大ドルドルが支給さます。の親が小切手をを受け取りを受け取り受け取り受け取り受け取り受け取り受け取りををををををを HI ます。

手続きは簡単で、公平で、完全に明確で、納税申告書に何も記入する必要はない。必要なときに必要なだけ支給されるのであり、1 年以上経ってから還付小切手の中に隠されているわけ。。

スウェーデンでは、 4 ページの納税がすでに記入された状態でされて。15 分で完了。。。。。。

Penn’s 1Q24 results dragged down by subpar interactive returns

Another example: In 2008, the Swedish parliament approved the "Rotab Drag" as a temporary employment stimulation measure to pay up to 50 % of the labor costs to repair home. As a result, the Swedish National Tax Agency has paid a part of our recent renovation. When I received the final remodeling invoice, my wife had a 50, 000 krone and I had a 50, 000krone (maximum tolerable). I asked if I would pay this. "When I asked, the trader answered:" If you pay the rest, the Swedish NTA will send their share. "

David Brooks an editorial of the New York Times, arguing that if Americans paid high European taxes, they would "weaken the ability for middl e-class people to choose about their lives."

Brooks may need to live abroad. People like Brooks seem to be proud that American tax revenues are only 26 % of GDPs (the third largest in the country that is a member of the Economic Cooperation and Development Organization), but 43 % in Sweden. It is.

However, taxes are not burned, but are used to provide collective property that can benefit everyone who is out of reach of individuals. These collective goods give the middle class an option and do not reduce options.

The fact that you do not have to pay the cost for going to university means giving the opportunity for excellent human resources to go to any school, and is not the property of the parent, but by equalizing the opportunity. be.

No matter how rich you are, you can't buy a hiking course in Seattle, which is used as a matter of course in Stockholm. I can use it for free, and there are so many hiking options that Wisconsin can never be tasted. The family of five, waiting at the pier to visit the Apostor Islands, was powerless. Our national park can be accessed by a small number of people, but not many people.

Delaware Park Casino & Racing, on the outskirts of Wilminton, have opened a new light and Wonder gaming lounge.

The 1, 00 0-squar e-foot lounge includes a software provider, which is a software provider, including the classic story of the classic story of the "three pigs" released on March 4 on March 4. There are 30 slot machines provided by.

"Delawea Park Casino President and General Manager Terry Grevokki said," We are excited to be able to deliver attractive graphics and unique games to our customers. "Delaware Park is. We are standing at the forefront of the most demanding slot products and are looking forward to the continuous growth of the casino.

This update is only a few months after celebrating the Grand Renewal Open after the $ 10 million renovation work. Delaware Park has introduced more than 1, 500 slot games, hig h-limit play area, and new food and beverage options.

The new hig h-limit table game pits include three min i-baccarat games, high limit blackjack games, and pigou poker tables. The venue is open 24 hours a day, has more than 1, 900 slot machines, 34 table games, and poker rooms.

For the first 20 minutes of an investor telephone conference on Thursday, Pen Entertainment's CEO Jay Snoden, who had long been not very good at 1Q24.

Early in the morning, Analysts in the Wall Street posted a quick analysis of the financial results, the operator's net loss of $ 114. 9 million, the decrease from $ 1. 67 billion to $ 1. 6 billion in the same period of the previous year, and $ 0. 59 per share. He pointed out that the loss of $ 0. 76 was a sudden decline in EBITDAR to $ 256. 2 million against $ 0. 76 and $ 478. 2 million.

Las Vegas: Vici vows Venetian facelift

The interactive department of the pen, including the launch of the expected ESPN BET, which was expected six months ago, but after adjustment, EBITDA had a loss of $ 196 million, which was also not good.

Snowden has a decrease in the steering wheel per user, partly of this result. "From the fourth quarter to the first quarter, there was no instantaneous change from the viewpoint of the steering wheel per user.

"We also recognize that all results are not in need at this stage," said Snowden. "In addition to the influence of the hold ... I also recognize that monetization is a great opportunity. So far, the amount of use per user in ESPN bets is lower than the market average, and i n-house expectations. The first thing is that this is a more casual better. However, as they get used to the app and sports betting in general, they will be involved in the app and the overall usage as time passes. "

Snowden stated that the second factor did not create a fair share of wallet with experienced VIPbetters. "

According to Snowden, the lon g-term goal of pen in ESPN BET has not changed. It provides young, very enthusiastic online sports betors and fans' important databases, building a lon g-term relationship with the best product experience in the class, and providing a lon g-term attractive cros s-cell opportunity. To provide other services throughout the Eco System of the operator.

MGM credits regional and global reach, digital, and Marriott partnership as contributors to record Q1

"The journey to get here, like any emerging digital strategy, has not been without some bumps," Snowden said. "But we are now in a strong position to realize our vision and deliver the shareholder value that comes with it."

Snowden emphasized that the roadmap originally laid out for the partnership with ESPN and ESPN Bet remains the same: investment in 2024, loss reduction in 2025 and potentially profitability in 2026.

Wall Street analysts had mixed reactions to Penn's 1Q24 results. Jefferies' David Katz said, "The land-based business was relatively in line with expectations, while the digital business missed our and consensus expectations. We expect the weaker than expected results to be a modest drag on the stock price. ESPN Bet will remain a key focus as the customer base and product continue to evolve. PENN "We believe Penn Interactive's $196 million loss was "above our recently increased loss estimate of $187 million and the consensus of $178 million, reflecting the initial and launch of ESPN BET. Overall, we believe these 1Q24 results, taken in isolation, were in line with our broad expectations, although regional land-based properties were negatively impacted by adverse weather conditions in January and February." Penn shares closed at $15, down $1. 44 on the Nasdaq. Vici Properties said Wednesday that first-quarter sales of $951. 5 million were 8. 4% better than the first quarter of 2023. Profit at the real estate investment trust also rose 13. 7 percent to $590 million, or 57 cents per share. The REIT issued $1 billion in senior-grade investment notes to refinance existing debt. Vici ended the quarter with $514. 9 million in cash and a projected gain of $682. 7 million from the sale of stock. "The journey to get here, like any emerging digital strategy, has not been without some bumps," Snowden said. "But we are now in a strong position to realize our vision and deliver the shareholder value that comes with it."

Snowden emphasized that the roadmap originally laid out for the partnership with ESPN and ESPN Bet remains the same: investment in 2024, loss reduction in 2025, and potential profitability in 2026.

Snowden emphasized that the roadmap originally laid out for the partnership with ESPN and ESPN Bet remains the same: investment in 2024, loss reduction in 2025 and potentially profitability in 2026.

Wall Street analysts had mixed reactions to Penn's 1Q24 results. Jefferies' David Katz said, "The land-based business was relatively in line with expectations, while the digital business missed our and consensus expectations. We expect the weaker than expected results to be a modest drag on the stock price. ESPN Bet will remain a key focus as the customer base and product continue to evolve. PENN "We believe Penn Interactive's $196 million loss was "above our recently increased loss estimate of $187 million and the consensus of $178 million, reflecting the initial and launch of ESPN BET. Overall, we believe these 1Q24 results, taken in isolation, were in line with our broad expectations, although regional land-based properties were negatively impacted by adverse weather conditions in January and February." Penn shares closed at $15, down $1. 44 on the Nasdaq. Vici Properties said Wednesday that first-quarter sales of $951. 5 million were 8. 4% better than the first quarter of 2023. Real estate investment trust profits also rose 13. 7 percent to $590 million, or 57 cents per share. The REIT issued $1 billion in senior-grade investment notes to refinance existing debt. Vici ended the quarter with $514. 9 million in cash and a projected gain of $682. 7 million from the sale of stock.

Veitch stole his own thunder by announcing a $700 million "major renovation plan" for the 25-year-old Venetian in Las Vegas. CEO Edward Pitoniak also said, "The Venetian Resorts operating team has driven strong performance since Veitch and Apollo (Management) acquired the property in 2022.

Jefferies Equity Research analyst David Katz reacted favorably to the news, saying, "Given the apparently limited trade market activity, this represents a solid use of long-term capital in a durable growth asset." Although it did not materialize in after-hours trading, he predicted, "The stock price will likely react modestly positively."

The Venetian investment is in two parts: a $1. 2 billion loan will be drawn immediately, and the owner has the option to draw an additional $300 million by November 1, 2026. Venetian Capital Investments plans to fund the deal with a combination of cash and proceeds from partial settlement of the company's outstanding forward stock purchase agreements.

On Wednesday, MGM Resorts International's earnings conference call featured a slight change in presentation. Instead of CEO Bill Hornbuckle giving opening remarks, CFO Jonathan Halkyard first gave a "more focused summary of the results" before handing over to Hornbuckle.

"I'm a color commenter that Jonathan talked about in his opening comments," Hornbuckle joked about five minutes into the call. "What I want to do, and what I want to do on these types of (calls) going forward, is to explain our top-line thinking and reaffirm what I think is important."

MGM's first-quarter sales were $4. 4 billion, a new quarterly record for the company and up 13% from the same period last year.

MGM reports record revenue in 2024’s first quarter

Hornbuckle attributed the quarterly record to the diversity of MGM's business and its four pillars: Las Vegas properties, regional properties, Macau, and digital business. Hornbuckle also credited BetMGM's collaboration with Marriott Bonvoy.

"And Hornbuckle. We have been reserving more than 140, 000 nights to date. The most surprising thing so far was the group business of the activity case in this segment, which was a bit unexpected. They (Marriott) knows a lot of people we don't know, and we are very happy with this.

In particular, the MGM digital business has room for improvement. Hornbuckle said that BETMGM is third in US sports bets, but is the number one operator with a real store. He also mentioned that BETMGM has launched a single account single wallet.

Hornbuckle acknowledged the operation of BETMGM as "there is a lot to do there." "But I like this roadmap, I like this team, and I like the direction we are aiming for. Other than the United States, Leovengas (Swedish online game company acquired by MGM in 2022), Especially in Sweden, there is a recovery in Sweden.

Hornbuckle also said that BETMGM UK succeeded early and said, "It has established a true presence there."

"Overall, our digital strategy has not changed." At some point, we want to be independent with the functions of all sites, including our own games and our own products. I'm thinking.

Hornbuckle acknowledged that the company is still interested in acquiring gaming licenses in New York, but is "a little disappointed with the process." We have been there since 2015 or 2016. We are patient and continue to concentrate. And a good news for us is that there is a chance. Yonkers has fully supported us, and I think it's meaningful. "

Hornbuckle was also optimistic about the possibility of entering the UAE, Thailand and Texas. He said that he would probably happen to the UAE, and that Thai's prospects were "interesting", and local dialogue was encouraging.

However, gambling legalization in Texas is uncertain at this time, no matter how attractive.

Bally’s: “No urgency” about Tropicana site, Chicago profitability on track

"We don't want to get ahead of ourselves in Texas," Hornbuckle said. "If there are two or three states left in the country that make sense (in terms of legalizing gambling), Texas is one of them. There's talk of four big cities there. Without revealing their strategy, everyone is positioning and looking at one of them. We'll keep track of it, but frankly, I don't see anything coming anytime soon, especially in terms of brick-and-mortar."

MGM Resorts International on Wednesday reported revenue of $4. 4 billion for the first quarter of this year. Net income was $217 million (compared to $467 million in the same period last year), and adjusted EBITDAR reached $1. 2 billion.

On the earnings call, MGM Chief Financial Officer Jonathan Halquiard said part of the record revenue was due to the continued performance of the Las Vegas Strip.

"Our premium resorts on the Strip provided a competitive advantage, driving top-line growth by 5% in the quarter. "The remaining three resorts are a big part of our growth," he said. Looking ahead to the quarter, room rates are on pace to outperform the same period last year, and the number of rooms booked by groups is also up compared to the same period last year.

"Our strategic growth plan to generate sustainable free cash flow from our resort operations, grow free cash flow through investments in our international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to progress in the first quarter of 2024," said Bill Hornbuckle, CEO and president of MGM Resorts, in a statement. "We achieved record consolidated revenue in the first quarter. Our agreement with Marriott, which began in January, exceeded our initial expectations, with more than 130, 000 nights booked, and we expect this strategic relationship to drive growth this year."

Las Vegas Strip resort revenue in the first quarter was $2. 3 billion, up 4% from the same period last year. Adjusted EBITDAR for the Strip was $828 million compared to $836 million in the same period last year.

MGM's regional operations revenue was $909 million, down 4%, compared to $946 million in the same period last year. Adjusted regional EBITDAR was $274 million, down 12% from $313 million in the same period last year.

Macau operations revenue was $1. 1 billion in 1Q24, up 71% from $618 million in 1Q23. Adjusted EBITDAR for Macau properties was $301 million compared to 1Q23 Adjusted EBITDAR of $169 million.

The MGM Resorts stock was closed by $ 0. 31 (079 %) at $ 39. 75 in the Nasdaq market. Overtime stock prices rose to $ 1 (2. 52 %) to $ 40. 75.

Regga Behe is a president of the CDC gaming report. Contacts are rbehe@cdcgaming. com. Follow @Regebehe_exptr on Twitter.

Bally's Corporation executives suggested that there would be no plans for Tropicana Las Vegas on Wednesday on Wednesday with Analyst in Wall Street. "We are planning to demolish Tropicana in October," said CEO Robeson Reeves, saying that it is "evaluating the substitute for the land."

Later, Financial Charles Diao said, "The more you wait, the higher the value of our options, so there is no urgency." The Auckland Athletics also added that the necessary funds on the land of nine acres, which are planned to be built in the baseball stadium, is "minimal."

Leves also found a bright sign that New York's casino selection was delayed. The postponement until 2026 says that "the demand for the time being decreased for the time being."

The recent GAMING & AMP; Leisure Properties's speculation was not mentioned at the telephone party. The officers did not mention the recent recent acquisition proposal for the acquisition of the Standard General.

Looking to Chicago, George Papania said that the temporary Very's casino at Medina Temple was "helpful to offset the closed tropicana closed on April 2." Temporary casinos opened in March of $ 13 million, increasing by 50 % from December.

According to Pappania, temporary casinos have added VIP options (such as high limit slot rooms) to increase their partnership with local restaurants. Currently, the main attractive area of the casino is 5 miles around the downtown casino.

"There is no scientific basis for how much slope is," said CFO Marcus Glover, who was asked how much Windy City's casino was inclined. He added that BALLY'S will later focus on profitability.

Bally’s revenue up in first quarter, though profit swings to loss

"Now, the profitability is quite low, but it's intentional." Glover further explained that the positive marketing of the BALLY'S brand, which was born in the area, is a priority.

"We have already reached the target indicators," regarding the performance of the table game.

80, 000 people are registered in the Chicago database, and Pappania explained that "there are more younger people than general regional environments." Mainly table games are the main focus. We are convinced that (permanent) will be completed by December 2026. " The problem of funding for BALLY'S CHICAGO, more than $ 1 billion, was not discussed.

As a whole, the casino profits in February and March said Glover, the disadvantage of January, "Relocated." "I hope the margin will return to the normal level because the core portfolio is performing well. I have a great expectation for roadmaps, such as the start of online sports betting (OSB) in the UK. I'm off. "

One of the headwinds faced by the company is Lord Island, and the construction of a bridge near Providence has hindered casinos, especially at the peak of travel. Pappania said that Barry in Ocean had a "reliable impact" by bridge construction, but at this time it was "not a serious thing."

In the interactive field, the profit in Pennsylvania and New Jersey, which initially increased $ 1. 2 million in Road Island, where BALLY'S monopolizes Igaming. So far, the digital division is expected to create a $ 30 million negative return this year.

Glover has talked about BALLY'S's common themes: online sports betting is now a means to improve the results of wagging .................. 。 Nevertheless, he added that reinvesting on the OSB was "very carefully".

The interactive bright topic is in the UK, and BALLY'S has "aggressively exploring how to expand online presence." Leves said his business in the UK was "very stable. Customers have a very high degree of attention."

Regarding the lon g-awaited British Gambling White Paper, Leves said that the Gambling Committee was doing a great job in consultation with the operator. "I am very satisfied with the current situation of the UK. I am very satisfied with the current situation in the UK.

BALLY'S reported $ 169 million hand cash and $ 3. 6 billion debt.

Rush Street Interactive enjoys “strong momentum,” says CEO

Bally's lost $ 173 million in the first quarter of 2024. As a result, the stock price fell from $ 13. 16 to $ 12. 80 per share in overtime trading.

The company has a sales of $ 618. 5 million, an increase of $ 3 % from the first quarter of 2023, with a profit of $ 178. 83 million. The cash flow was $ 148. 1 million.

CEO Robeson Reeves praised "solid achievements" and Barry's "solid core business division." Casino and resort income increased by 4 % to $ 3423 million, digital income in the UK increased 12 %, and North American interactive income increased by 70 % to $ 41. 5 million.

Leves said that the International Interactive income decreased by 4. 4 %, while the Asian market, while the UK, "Reflecting the initiatives adopted with the implementation of the UK white paper, our strategies are our strategies. It was successful. " Regarding the softness of Asia, "this reflects the strategic shift that started last year, focusing on maximizing profitability instead of pursuing an uneven economy growth, and as a result, the previous year. The ratio sales were strict. "

The poor performance in January was due to bad weather and disadvantageous holds (the margin is 24 %, not the usual 30 %). Chicago's BALLY'S CASINO has offset that Las Vegas's "Impact of continuing to reduce leverage after announcing TROPICANA's closure."

Outside of the UK, we believe that business in Spain has recently been eliminated advertising regulations and can increase investment for faster growth, which can benefit. We also hope that the business in Asia will be further stabilized and the online sports betting service will be enhanced to complement existing portfolios.

Last month, BALLY'S started Igaming in Lord Island, and Reaves commented, "Road Island's revenue is growing steadily until April, and we believe this will last until the end of 2024."

Furthermore, Marcus Glover's Supreme Finance Officer (CFO) said, "The achievements in the first quarter of 2024 indicate the strength of our multifaceted business segments. Barry management is cost reduction and operating efficiency. We are continuing to focus on improvement.

Company executives also expanded shuttle services in Chicago, introduced Ballybet to Bally's Evansville, and steak houses and VIP lounge, which opened in the Bally's Atlantic City as a leading leader in profits.

Barry's profit guidance is the same as before. The sales were $ 2. 5 billion in 2024, and the cash flow was expected to be $ 695 million to $ 695 million.

Rush Street Interactive CEO Richard Schwartz said the company experienced "the same strong momentum we saw in late December." According to Schwartz, the first quarter set quarterly records "by a wide margin" in sales and cash flow.

"Simply put, we're adding players to our platform faster," Schwartz said. "This is a continuation of what we saw in the last quarter.

Among the high valuation metrics is a new record for average monthly users in North America, which Rush Street executives said they've seen accelerate in each of the past six months. Schwartz added, "This growth across our markets has not come at the expense of value."

Delaware, where Rush Street enjoys a monopoly on digital gambling, "continues to perform well in the early years," the CEO said. He went on to say that the company's expected 2024 sales of $70 million will be four times that of its predecessor, 888 Holdings. "Icasino's focus on experience is resonating with new and existing customers.

"Our customer service is definitely on the radar of our players," Schwartz continued. "While it's unclear what future growth will be, Rush Street has invested in marketing in Delaware, and the company has far exceeded people's expectations," he said.

Fourth-quarter earnings spark Rush Street Interactive surge

Regarding the ongoing bill in Delaware to put an end to Rush Street's online sports betting (OSB) monopoly, Schwartz said, "We are actively participating in the discussions.

Chief Financial Officer Kyle Souers reported "four consecutive quarters of positive EBITDA, with margins reaching 33. 7%." "This is our fourth consecutive quarter of positive EBITDA, with a margin of 33. 7%," said Chief Financial Officer Saurs. "We are very pleased with the effectiveness of our marketing spend. Our current view is that we will see increases in the second and third quarters, with further acceleration in the fourth quarter due to the seasonality of sports."

Overseas, Rush Street recorded a 78% increase in revenue, with growth also in emerging markets in North America. In Latin America alone, revenue increased 84% year-over-year, and further growth is expected.

Schwartz said he is looking forward to a summer launch in Peru, which has two-thirds the population of Colombia, Rush Street's main market, and also has a high gross domestic product. As for Brazil, regulations are currently being announced, and Schwartz said, "We are reviewing and evaluating them."

Schwartz, who was asked about profitability in Mexico, said, "It has been a huge success in its launch period," and added that it has been launched twice as a pace of Colombia and has already increased profits. The main competitors of Rush Street are not only in market share, but also have experienced marketing teams and have many wonderful ads and promotion.

Regarding the possibility of using Rush Street's balance sheet and cash, Southers said, "You have been asking if you have enough cash. I mentioned. He added that there are plenty of “dry depowers” for new markets and potential torn acquisitions.

Mr. Schwartz says that the company is ahead of a few masterpieces, saying, "We are unique in knowing how to manufacture fun, but it is difficult, but in the past. I think it came well.

The company has also renewed his relationship with Mike Francesca. The WFAN talk show is the Rush Street brand ambassador.

OpenBet launches geolocation product OpenBet Locator

Schwaltz CEO has recently tried to bring Schwartz CEO about the possibility of selling a rush street to the competitors of the competitors. Schwartz's CEO closed his mouth. "We are completely consistent with shareholders. We continue to evaluate all opportunities."

Schwartz, who was asked why he would not actively pursue "strategic alternative proposals," he said, "I can't answer in public."

Posted: May 1, 2024 Posted by: DEK E-Igaming

Rush Street Interactive's stock prices rose over time in the first quarter of this year, after a long time. The stock price was $ 7. 45 for overtime transactions from the closing price of $ 6. 42.

Sales rose to $ 217. 4 million from $ 162. 4 million in the same period of the previous year, up 34 %. Losses have been reduced from $ 24. 5 million to $ 2. 2 million, and marketing costs have been reduced from $ 49. 4 million to $ 37. 8 million.

The cash flow was $ 17. 1 million, improving $ 25. 8 million. The previous year was a negative of $ 8. 7 million. Rush Street's hand cash was $ 1911 million.

The number of monthly active users in the United States and Canada increased by 20 % to 176, 000. Latin America and Mexico increase 70 % to 224, 000. The average sales per user are $ 355 per month in North America and $ 43 per month in South America.
Richard Schwaltz, CEO, said Rush Street, "I am very satisfied," said Rush Street, "I am very satisfied," "I am very satisfied," said Rush Street, "I am more efficient and at the same time increasing the number and value of the user." Ta. Our team has achieved these results from lon g-standing commitments that prioritize the quality of products and customer experiences. "
The Rush Street has revised the intermediate value of sales guidance by $ 35 million and set $ 810 million to $ 860 million in the full year. If achieved, this number will grow 21 % yea r-o n-year.
The cash flow goal was 15 million dollars, between $ 50 and $ 60 million. Achieving $ 55 million will improve 573 %.
Posted: May 1, 2024 Author: Rege --Supplier

Openbet has released the release of Openbet Locator, a flexible and scalable geolocation product.

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

We discuss some remaining unanswered questions concerning the system's legal and institutional implications, the transmission of monetary policy, financial. Jonung J., Andersson F. (), Don't do it again! The Swedish experience with negative central bank ratesin –, glfe.info Andersson, F and L Jonung (), “Don't do it again! The Swedish experience with negative central bank rates in ”, glfe.info, 8 May.

Play

accepted