Executive summary
Executive summary
UK update
• UK Gambling Commission figures suggest the
it is for others to compete. The only (slim) hope for
market is growing at least as fast as previous
many of its major rivals is that bet365’s global growth
estimates in excess of 12% per annum. The most
rate slowed to 5%, though there are suggestions that
recent data suggests the market is well past the
this does not apply in the UK.
£4bn in gross gaming yield (GGY) mark. Given the
data only extends to September 2015, and with
football’s European Championships having taken
place this summer, it must be assumed that the
Australia update
• H1 figures from UK-based operators and the full-year
results from Australian-based operators show that
current rate of growth would mean its 2016 exit rate
generally the market is enjoying both stakes and NGR
could be closer to £4.8bn than £4.4bn.
growth. Notably, Paddy Power Betfair’s Sportsbet
• However, there are headwinds: as previously noted,
has overtaken Tabcorp’s TAB operation as the
new self-exclusion and reality check measures, the
leading online business by stakes (A$2.14bn in H1 to
taxation of bonusing due to be introduced next year
June versus A$1.9bn), though when Tabcorp-owned
and new AML rules mean that trading conditions for
Luxbet is included Tabcorp retains its lead in stakes.
the year ahead will be tougher, and with no major
summer football tournament.
•
• William Hill’s travails in Australia continue. Having
merged all its three acquired brands (Sportingbet,
The pressure of keeping up with sectoral growth
Centrebet and Tom Waterhouse) under the William
is telling in terms of marketing spend. A sample of
Hill umbrella, it is still struggling to gain ground in
company reports for H1 2016 reveals that average
a fast-moving market. It managed a rise in stakes
spend as a percentage of revenues stood at 27.5%,
of 13% but this was still at the bottom end of the
above what many had previously suggested was an
range of growth and in net gaming revenue terms
average of 25%. Of those surveyed, top spenders
the company suffered a 10% decline. Though the
were Ladbrokes at 35% and 888 at 34.5%. The lowest
company says it has turned a corner, the ending of
spender was GVC at 21%, though it said it would be
click-to-call and, particularly, the credit betting ban
upping that percentage by two or three percentage
proposed by the Federal government, will cause
points in the months to come.
further issues for William Hill.
• What is unknown in the UK is the extent of the
spending by market leader bet365, which recently
published its results for the year to March 2016
showing net revenues of £1.55bn. If it spent the sector’s
Spain update
• The second-quarter gross gaming revenues figures
from the Dirección General de Ordenación del Juego
average percentage of revenues on marketing its
(DGoJ) in Spain show the extent to which the market’s
outlay would be close to half a billion pounds. Even
gross gaming revenue (GGR) figures have been
at GVC levels of 21% of total revenues, its marketing
boosted by the introduction of both slot machines and
spend would be in the region of £325m; or about three
live roulette in 2015. Slots revenue rose to €11.7m in the
times the next biggest spender in Paddy Power Betfair.
second quarter from €9.5m in the first three months
This figure may be out of range and is global, not just
of the year. Meanwhile, live roulette hit €5.74m in the
UK-focused, but gives a demonstration of how hard
second quarter from €3.04m in the first quarter.
iGaming Business Market Monitor – UK, Australia and Spain • September 2016
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