revenue drops at sportingbet

Revenue Drops at Sportingbet

19 Oct, 2012 - 03:54 by johntang
Sportingbet is the online casino, bookmaker and a casino operator that made the headlines recently due to the fact that they rejected a £300 million bid to takeover. They have then announced their financial results for the year that ended in July 2012 however, things are not looking too good for their poker tables. Their poker revenue fell from over £17 million in the year 2011 down to £11 million in 2012. The company then went on to blame the changing and challenging conditions throughout the economic market. They said that it was "exacerbated by the significantly larger liquidity offered by a market dominant competitor." There were also reasons such as the websites exit from the market in Turkey, the introduction of gaming duty and attainment of Centrebet net gaming. Their revenue fell down 9 percent from the £200 million in the year 2011 to the £185 million in 2012.

Poker contributed only £7 million to both of the amounts that were wagered and gaming revenue to the numbers, which is actually a lot further down from £13 million in 2011. The game of poker makes up only 6 percent of the groups gross gaming revenue, with their casino games accounting for around 18 percent of them. This company is also the owners of the online casino Paradise Poker, saw the European and emerging markets’ net gaming revenue drop down to £103 million from their normal £166 million that was made just last year. Sportingbet also went on to say that the drop of the drastic 38 percent was "partly due to new gambling taxes paid during the year of £11.3 million". There were new tax regimes and regulatory that was placed in effect in two of the websites largest markets: Spain, as well as Greece.

The website has a statement up that reads:

"There is the medium-term possibility of significantly increasing profitability if the Australian Government regulates to allow betting in-play, online casino, games and poker. The Productivity Commission report in January 2010 recommended regulation of all products and the present Government has initiated a review of the Interactive Gaming Act. The final results of the consultation process and any proposed changes to the draft law have not yet been published."

For the future and looking forward, the company went on to say, "Whilst the economic outlook remains challenging, our robust position gives us confidence for the current financial year." They are hoping to get a bit more out of this year and fix things than they did in the last. A lot of their players continue to play in their casino, but a lot of the players have been lost or choose not to play because of the new taxes and laws that were put into effect. This is why a lot of their money is declining from where it once was. All we can do is wait for the next year’s revenue reports to come out and see where they fair and if they have increased or decreased in sales.