Posts Tagged ‘online gambling market’
Sportingbet Reports 28% Increase in Earnings for FY 2009
The yearly fiscal report is out for Sportingbet PLC and the results for the publicly traded gaming company were generally positive. Sportingbet, the parent company of online poker room Paradise Poker, saw growth in net revenue, earnings, money wagered, and profit thanks in part to a focus on emerging online gambling markets. While the sports betting and casino ventures have been on the rise for the company, it appears as though it is paying less attention to its poker holdings, which saw a decline in earnings from 2008 to 2009.
Sportingbet, which is publicly traded on the London Stock Exchange under the symbol “SBT,” saw its net gaming revenue jump to £163.6 million from £144.3 in 2008, an increase of 13%. Profits saw a 26% increase as well, coming in at £31.1 million thanks to more than £1.5 billion wagered on the site over the course of the year. Last year, the company received a total of £1.35 billion in wagers. The company’s Chief Executive, Andrew McIver, commented on Sportingbet’s performance in the official audited results through July 31st, 2009:
“This has been a very solid year for the Sportingbet Group. We are now seeing consistent profitable growth resulting from the structural changes made following our withdrawal from the U.S. Our focus on sports betting and geographical diversification is helping to support earnings in these troubled economic times. Additionally, our commitment to offer industry-leading sports betting products and excellent customer service has helped us to recruit and retain core customers.”
The diversification McIvan spoke of includes launching versions of the site in Romania and South Africa as well as moving into other emerging markets like Canada and Brazil. While the company continues to struggle against stiff competition in Britain, its efforts in Eastern Europe have been much more successful. Sportingbet blamed the global recession and an expensive and over-saturated media market for its performance in the U.K., but its results in Eastern Europe more than compensated for its 21% decline in the British Isles. The Eastern European revenue for Sportingbet grew by 26% and now accounts for more than 15% of the company’s total revenues—more than the entirety of its online poker operation. The company attributed some of its success in that region to a launch of more than 90 Flash-based casino games.
The company saw several other changes this year as a number of national governments addressed the issue of online gambling via new laws, regulation, and licensing. The company noted, “Regulation continues to define the internet gambling industry across Europe and the rest of the world. In general, we continue to see pressure on European countries to justify their national gambling regimes in light of the free-trade requirements of international law.”
Sportingbet took a pro-regulation stance on the issue and representatives of the firm are continuing to meet with a number of national regulatory bodies, including the U.S. Department of Justice, to discuss Sportingbet’s legal standing. Sportingbet and Paradise Poker do not accept U.S. customers, which has resulted in a steady decline in revenue for its online poker venture since the site’s withdrawal from the American market following the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA).
In Europe, Paradise Poker’s revenue is down 7.6% from last year, bringing in only £22 million of the company’s total earnings. The poker branch of Sportingbet used to be a major component of the company’s holdings, but it now represents only 12% of total revenue. The company attributed its struggle in the online poker market to a high level of competition, “with certain large U.S.-focused poker companies using their significant cash flows and high liquidity to continue to attract customers from existing European only companies.” This is a similar complaint to the one voiced by Party Gaming executives in its mid-year report, which was released last month.
Sportingbet is currently traded on the Alternative Investment Market (AIM) of the London Stock Exchange, but the recent report revealed that the company would try to move to the General Equity Market in the near future. At the close of trading on October 14th, Sportingbet stock was fetching $76 per share.
Poker News in Brief: Oct. 5-11, 2009
Of course, there was plenty of poker news that happened outside of London this week and as part of our ongoing Poker News in Brief feature, we'll try to catch you up with it all.
This week we'll be looking at a new UltimateBet charity tournament, poker players in the buff and France possibly opening up its online gambling market.
UltimateBet introduces Starlight Poker Challenge
Annie Duke, Phil Hellmuth and UltimateBet are once again showing their charitable side by hosting the Starlight Poker Challenge in Montreal, Nov. 14-18.
The event will offer a guaranteed first-place prize of $100,000, which is reportedly the most ever offered by a charity poker tournament in Canada.
Proceeds will be going to the Starlight Children's Foundation Canada, which is part of an international non-profit organization dedicated to assisting seriously ill children and their families.
The event will feature a WSOP-style structure with several celebrities set to play, including Hellmuth and Duke.
For more information check out the event's website here.
OktoberFest Returns to Hustler Casino
Hustler Casino in L.A. is celebrating the changing of the seasons with the return of its Oktoberfest Fall Classic Tournament.
This time around the casino will be offering a deep stack series with over $300,000 in guarantees. The 23-day tournament series will begin Oct. 15 and run until Nov. 2.
The centerpiece of the tournament will be the $225 buy-in Liz Flynt Poker Classic, which takes place Oct. 24-26 with a $100,000 guarantee.
Players will be treated to complimentary champagne, buffet and a visit from the Hustler Honeys and Hustler Hunks.
Click here for the complete schedule.
Half-naked poker pros in ESPN The Magazine
Poker players are generally not known for their fantastic physiques, so it came as a surprise to many that four poker players were featured in a photo in this month's "Body" issue of ESPN The Magazine.
The photo, which appears to be somewhat tongue-in-cheek, features Daniel Negreanu, Jennifer Harman, Phil Hellmuth and Scotty Nguyen sitting topless at a poker table.
The Body issue of ESPN The Magazine is meant to highlight some of world's most impressive figures and it features star athletes like Serena Williams, Dwight Howard and Zdeno Chara in varying degrees of undress.
The issue is currently available at newsstands around the world.
French bill to open online gambling market?
It appears the French-government's monopoly on online gambling is at an end.
According to Reuters reports out of Paris, a French bill that would end the state monopoly went before discussion on Wednesday.
Budget Minister Eric Woerth told Parliament he thought they had found middle-ground that would be an efficient way of controlling the market and ending the reign of numerous illegal sites.
France had been feeling pressure from the European Union and private operators to open up their market, which is worth billions.
The new legislation would see private firms obtain permits from a newly created regulator. These firms would then be able to run their own gambling sites.
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