iGB Intelligence reports iGB Market Monitor December 2018 | Page 18

Part 3: Nevada – a market with regulated pointers Margin performance have oscillated between 6.2% and 7.9%, or a 150 None of this is revelatory although it does offer basis point difference between high and low a warning for anyone reading too much into (see Table 2). the September figures in New Jersey. This is particularly the case given what would appear to The mobile move have been super-normal margins in that month. Perhaps the most telling detail from William Hill’s figures comes from the commentary from the first As can be seen in Chart 2, margin performance goes hand-in-hand with the volatile GGR figures, half results, where the company said that 64% of but we can still see that September was very total wagering is now via mobile devices. This is much an outlier at 9.9%, or 190 basis points higher in line with anecdotal evidence from New Jersey than September last year (see Chart 3). that of the 60%-plus revenues from digital, the vast majority was via mobile. William Hill in Nevada That is undoubtedly a sign of things to come This month-by-month volatility translates into both in Nevada and across the US. Whether that a degree of variation in quarterly and yearly increased mobile usage – and the opportunities variations. As can be seen from the financial that provides for in-play – change the nature of details for William Hill US, margins over the how Americans bet is yet to be seen. It will be one past five years and into the first half of this year of the stories to watch in the next few years. Table 2: William Hill US financial performance 2013 – 1H 2018 Period Revenue ($m) Gross win margin Wagers change (%) FY 2013 22.7 7.3 135 FY 2014 29.7 7.9 21 FY 2015 50.9 6.5 26 FY 2016 58.8 6.2 21 FY 2017 72.9 6.3 22 1H 2018 50.7 7.7 25 Source: Company reports Chart 2: Nevada sports betting margins October 2017-September 2018 10 8 6 4 2 0 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Source: Nevada Gaming Control Board iGaming Business Market Monitor • December 2018 15