Part 3: Channelisation and the offshore market
Chart 15: Estimated % of monies gambled per type of operator 80 70 60 50 40 30 20 10 0
Onshore Source: Eurogroup Consulting’ s market research study
Offshore
Chart 16: Most likely reasons why gamblers choose offshore over onshore( 1-4 in order order of importance)
3.5 3 2.5 2 1.5 1 0.5 0
Better odds Better service Higher payout Better bonuses Source: Eurogroup Consulting’ s market research study
• The number of respondents who use both onshore and offshore operators amounts to 30 % of the total registered respondents;
• 24 % of the funds gambled by onshore / offshore respondents are placed with onshore operators;
• 75.5 % of respondents gambled on one segment( 91.5 % on sports betting, 8.2 % poker and 0.3 % casino games) and 24.5 % of them gamble on one-plus segments( with 25 % gambling on all three segments); and
• The overall funds gambled per week on each segment are as follows: € 1m on sports betting, € 80k on poker, and € 21k on casinos.
The report then estimates that these gamblers spend an estimated € 14.4m per quarter, of which 39 % is gambled with onshore operators. The authors note that this is turnover, not GGR.
The report admits it is hamstrung by the lack of data on onshore turnover. Nevertheless, it does make an estimate on the rate of GGR that goes to offshore operators. Taking the estimate from the market research of 61 %, it then suggests there is a gap between the channelling rate for turnover and GGR of between 15 % and 20 %.
Its estimates for the potential offshore market can be seen in Table 6.
Using the same higher and lower band of channelling rates( 55 % and 60 % in the onshore market), we give figures in Table 7 for 2017 and the past three quarters.
As can be seen, the estimates for the offshore market in 2017 would be quite sizeable – just over € 100m in low channelling estimates.
We would add some caveats to these channelling estimates.
Sports betting skew obscures gaming behaviours A major one revolves around the heavy sports betting skew of the respondents. By the third quarter of 2017, 44 % of the market was gaming. Arguably, gaming players might well exhibit very different behaviour to sports betters when it comes to offshore offerings. The Eurogroup report fails to address the lack of casino and gaming customers in its report.
High roller status of the respondents Similarly, the relatively highspending and high-frequency nature of the respondents means they are likely not representative of
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