NEWS > ANALYSIS
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easonal affective disorder, otherwise known as winter depression, is accused of being responsible for a number of ailments in colder climates. Bookmakers, however, suffer from an altogether different form of seasonal low – brought about by a distinct lack of football, rather than sunlight. When the European domestic football season ?nishes in May, sportsbook revenues predictably begin to dwindle. The latest Gambling Commission ?gures are testament to football’s importance, proving the sport to be responsible for more than 40% of Gross Gaming Yield (GGY) for sportsbooks operated by UK licensees. Major football events such as the World Cup and European Championships may represent a welcome stopgap to domestic football’s summer recess, but only take place in even-numbered years. A PricewaterhouseCoopers report released prior to the 2010 World Cup laid bare this importance, reporting the gross win for bookmakers during the 2006 World Cup to be between £17-18m. During the 2012 European Championships, Betfair reported a 21% increase in revenue from sports betting in the three months to July with Euro 2012 recognised as a key driver. With football of undoubted importance, how can bookmakers compensate for the drop in revenue experienced when no competitive football takes place? “You have to plan for it, you can’t just rely on revenue to come through,” says egaming consultant and former Betfair UK managing director Peter Marcus. “Even during last year’s busy summer of European Championship football and Olympic sporting events, Q3 revenues still fell.”
>> In the absence of a reliable football market, bookmakers are ?nding ways to minimise losses during the sport’s summer absence. Liam Stoker reports
COURT SPORTS AND ALL SORTS
Ace in the hole
Wimbledon While football may experience a summer blackout winner Andy in the absence of major championships, other Murray sports – and their betting markets – ?ourish. Tennis in particular has witnessed a substantial rise in GGY, which reached £106.19m for the yearlong period ending September 2012, placing the sport on parity with horseracing betting. The advent of in-play betting has proven to be a hugely popular driver and, with two of the four annual grand slams taking place in a time with little to no domestic football, represents a unique opportunity for sportsbooks to diversify their income. “There’s a de?nite need to make the most out of secondary sports,” Marcus says, citing Wimbledon in particular as tennis’ second biggest market, trailing the Australian Open which traditionally takes place in January – the middle of the European domestic football season. Horse racing, still the second most popular sport with UK bookmakers, certainly contributes. Royal Ascot, one of the centrepieces of the UK racing season, will offer some seasonal respite and is one core event that will take pride of place in any bookmaker’s summer strategy. Cricket, particularly during an Ashes summer, may also represent a market worth attention, but betting tends to focus on the shorter versions of the game, with the Indian Premier League of particular interest. With ?xtures taking place throughout the working week, the UK’s domestic LV County Championship struggles to attract attendances, let alone betting, and its comparative lack of media coverage does little to entice interest.
NEW MARKETS
With an absence of engrossing competitive action to stake against, the tactic of introducing new markets to regular punters is proving fruitful, satiating their itch during the slow summer months. “The smart bookies educate their punters on other sports, such as beach volleyball, and live streaming is now imperative to advertise new markets,” says Marcus.
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