Poker Revenue Drops At SportingbetYearly Financial Results Show Large Decrease In Poker Revenue At Sportingbet |
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Sportingbet, the online bookmaker, casino, and poker operator that recently made headlines for rejecting a £350 million takeover bid, has announced its financial results for the year ending Jul. 31, 2012, and things don’t look too hot for poker.
Poker revenue fell from £17.7 million in 2011 to £11.3 million in 2012 with the company blaming challenging market conditions. It said this was “exacerbated by the significantly larger liquidity offered by a market dominant competitor.”
With reasons such as the site’s exit from Turkey, the introduction of gaming duty, and the acquisition of Centrebet, net gaming revenue fell 9 percent from £204 million in 2011 to £185.7 million in 2012.
Poker contributed £7.6 million to both amounts wagered and net gaming revenue, which is drastically down from £13.3 million in 2011. The game makes up just six percent of Group gross gaming revenue, with casino and games accounting for 18 percent.
The company, that owns Paradise Poker, saw European and emerging markets’ net gaming revenue drop to £103.7 million from £166.8 million the previous year. Sportingbet says this drop of 38 percent was “partly due to new gambling taxes paid during the year of £11.3 million”. New regulatory and tax regimes were implemented in two of the site’s largest markets, Spain and Greece.
A statement from the site 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.”
In looking forward, the company says, “Whilst the economic outlook remains challenging, our robust position gives us confidence for the current financial year.”
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