UK betting companies are reporting profits in 2020 as the US market opens up

UK betting companies are reporting profits in 2020 as the US market opens up

09.05.2021 0 By Andrzej Sikorski

The explosive growth in online gambling during the blockade and the rapid expansion of the fledgling US market paid off for British bookmakers, with only William Hill fighting for the hay during the pandemic.

Entain, which owns Coral and Ladbrokes, reported a profit of £ 175 million over the year to the end of 2020, from revenues that were steady £ 3.6 billion.

And the 28% increase in online gambling revenue, which the company partially attributed to players stuck at home during the pandemic, helped offset the shutdown of UK bookmakers due to Covid-19.

BetMGM, the US joint venture with MGM Resorts, a Las Vegas casino operator that launched unsuccessful £ 8.1 billion bids to buy Entain earlier this year continues to grow rapidly.

With the opening of a lucrative US market, following the groundbreaking Supreme Court decision to lift the internet betting ban, BetMGM emerged as one of the key rs players, with the 18% participating in 12 reports of where it does business.

The venture has doubled its revenues to 178m (£ 128m) in a year, although the expansion proves to be costly, with investments already committed to $ 450 million.

British bookmaking and gambling companies came to the United States, where their experience in the mature British market made them valuable acquisition targets or business partners.

Flutter, which owns Paddy Power, Betfair and SkyBet, sealed the merger with Canada's The Stars Group and carved even more of the US market soaring than Entain.

A company listed on the London Stock Exchange, but headquartered in Dublin, is a leader in online betting, with 40% sports market share in the fourth quarter and 20% gaming.

Flutter has doubled its estimate of the total market to be captured in the US, before calculating that it will exceed £ 14bn by 2025, due to bookmakers' rising estimate and the number of states predicted to legalize gambling.

“Our growth has nowhere been more visible than in the United States, and the customer economy continues. exceed our expectations, ”said chief executive Peter Jackson.

Group revenues, adjusted to reflect affiliation with The Stars Group, increased 28% to £ 5.2bn and reported profits fell to £ 1m after a £ 432m transaction-related accounting adjustment.

The Paddy Power Betfair division, which houses UK-based bookmakers, saw a 36% drop in high street revenue, but made up for that 8% with an online revenue increase to almost £ 1.1bn.

While Entain and Flutter prospered, William Hill - whose £ 2.9 billion takeover by Las Vegas Caesars Entertainment-based casino company is due to end this month - hesitated.

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While his rivals maintained or increased revenues, William Hill saw the 16% drop to £ 1.3 billion, while profits dropped the 61% to £ 57m.

Stationary stores account for just 4% of Flutter's revenues, but account for a quarter of William Hill's, and its main properties have halved.

UK bookmakers remain closed, but may reopen from April 12, according to government plans.