Operators See Profits In Online Betting Strategy

Published Wednesday, March 04, 2015 - Online-Casinos.com
Operators See Profits In Online Betting Strategy

In the global gambling industry there are a number of operators who have turned to a strategy that involves more internet involvement. The results of the online strategy has proved very successful for firms such as Ladbrokes, William Hill, and Paddy Power.

The published financial results of these operators as well as others, has revealed that the strategy to move into internet betting and mobile wagering is effective and profitable.  Recent reports from Iconic Irish book maker Paddy Power confirms the bottom line for the company improved by 18 per cent to €882m for the year to December 31, driven by growth in mobile, which now accounts for 55 per cent of its online revenue. Paddy Power has benefited from its lighter store base, investment in marketing and focus on online gambling with 77 per cent of its operating profits coming from online last year.

Ladbrokes reported its overall digital revenue rose 22.9% in 2014 but overall the firm said its 2014 withdrawals from multiple grey markets will trim online revenue by around £6m in 2015.

William Hill’s full-year online profits soared 20% with the online business recording  a 2014 profit of £177.7m as sports and gaming perform well. The advancing leagues of operators who have jumped head long into interactive betting have mostly done better than expected.

Paddy Power however has done well in some jurisdictions but not others. Irelands bookmaker was struck by losses in Italy, where the company said that overall market growth was “slower than expected” despite the fact that revenues were up 85 per cent to €7.9m. A spokesperson for Paddy Power said it was reviewing its operations in Italy to “position our business better for this market reality”.

Many of the U.K.’s gambling services providers have down sized their retail operations and moved the savings into promoting their online divisions. A risky move from one point of view considering how fickle the world of the internet can be.

 

 

 

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