04/04/23
Major profit growth for Australian sportsbook operators
Lisa Cheban | 29 august, 2022 14:13 | Last update on: 29 august, 2022 14:18
2022 is a good year for the Australian sportsbook operator Sportsbet. The Online casinos specialized in betting on sports report a major growth in the first two quarters of 2022. The revenues of the sports wagering company were up 5% which means about a billion Australian dollars.
One of the reasons Sportsbet could report such a growth in revenues is due to the increasing player base of the company. The average amount of players grew by 10%, which is part of the strong retention of players who signed up during the period of COVID restrictions in Australia. During this period, a lot of players moved from betting in land based shops to online operators.
“Sportsbet delivered another strong performance, once again demonstrating excellent execution across product, value and brand,” the Sportsbet said.
“Following significant retail restrictions in 2H21, we focused on retaining customers through targeted generosity initiatives ahead of the new AFL and NRL season in H1.”
So the online casino gave away casino bonusses to retain their customers. These bonuses were mainly used for sports betting on the Australian Football League and the Australian National Rugby League. Besides that, Flutter Entertainment, the mother company of Sportsbet, argues that Sportsbet is also well positioned in the market.
However, there was also a downside for Sportsbet. Queensland, New South Wales and the Australian Capital Territory increased the consumption tax. Which will have a negative impact on the profitability of the company. “Sportsbet has a strong track record of managing regulatory risk, having taken meaningful market share and grown profits after the initial implementation of POC taxes in 2019,” the company explained.
The future will have to prove whether they are able to retain their customers or whether these players will go back to land based betting offices in Australia.
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