Betcorp Turns To Online Poker
Published: Wednesday, February 15, 2006 Online-Casinos.com
BETCORP TURNS TO POKER
Tough sports results to be compensated for by
poker profits
The Australian business media reported this week that
the Betcorp betting group is to turn to online poker to compensate for painful
losses to gamblers on the sports side of its business.
The Australian
reported that Betcorp hopes to exploit the conventional wisdom that sports
betters are best attracted to poker, and will make attempts to interest its
large gambler base in using online poker facilities as well.
Betcorp,
which is based in Melbourne but runs its websites from Toronto and Antigua in
the Caribbean, outlined a strategy to convince more sports gamblers to broaden
their gambling tastes.
Chairman David Hudd said the company hoped to
reduce its reliance on sports betting - which accounted for 64 percent of its
gross revenues - by "cross-selling" poker and casino games. "Betcorp takes no
risk in poker games because its income is generated by charging a percentage fee
on each pot played," Hudd said.
Betcorp suffered at the hands of the
sportsbetters on American football in the last quarter of 2005, when a string of
heavily backed favourites won games in the lead-up to the Super Bowl.
Nevertheless, the group reported strong growth in revenues and profits
over the whole of 2005 with:
• A$5.6 million (US$ 4.3 million) profit
after tax (2004: loss of US$ 8 million)
• Gaming revenues up 42 percent
to US $ 29.4 million (2004: US$ 20.7 million)
• Major turnaround from
A$10.9 million (US$8 million) loss in previous year
• 44 percent growth
in the number of active clients
• Casino revenues up by 86 percent to
US$6.9 million (2004: US$3.7million)
• Exponential growth of poker rake
from US$0.2 million in 2004 to US$3.6 million in 2005
• Successful
integration of Sinsational Intertainment Inc
• On track for further
substantial growth in 2006
This performance reflects the strategic
repositioning of Betcorp under new management as a multi-product, online gaming
operator offering sportsbetting, casino, poker and skill games to a broad base
of recreational customers. The board of directors say that operationally, the
business has been strengthened and the building blocks are now in place to
deliver further substantial growth in 2006.
Commenting on the results,
Colin Walker, Chief Executive Officer said: “I am delighted by the turnaround we
have achieved in 2005. The year finished with poker, casino and sportsbetting
all at record levels of activity. Meanwhile, 2006 has started very well and has
reversed the sports margin trends experienced in the fourth quarter of 2005.”
