BetFair Boosted by Euro 2012 and Mobile Betting
It has been a good month for BetFair and the development of mobile apps is expected to drive their future revenue growth. The company has reported a 15% rise in profits in the last year and their shares recently rose by 2.8% to 755.5p.
According to the Interim Chief Executive, Stephen Morana, the Euro 2012 Championships was the “world’s biggest ever sports betting event” and said that more bets were taken on the tournament than were on the 2010 World Cup.
It was also reported that there was a sharp increase in mobile betting on smartphones and tablet computers. BetFair produced a Euro 2012 mobile app and announced that they will be doing the same for future major tournaments. It is expected that the migration to mobile will significantly enhance revenues.
At the same time BetFair just became the latest British gambling group to be granted an online gaming licence in Spain. It will soon be offering sportsbook and casino products to Spain including blackjack and roulette.
Spain has recently regulated the gambling industry in order to raise revenue through taxations and BetFair will be paying a gross gaming revenue tax of 25% on its Spanish operations. Spain is struggling to control its deficit and the tax will be an extremely helpful source of revenue for the country. In the last few weeks Spain has raised around 70 million Euros in back taxes from companies who fell afoul of old decrees governing gambling.
Thanks to the major popularity of sport in Spain, it has been predicted that revenues in the gambling sector will be over 800 million euros by 2014.
Despite their share value dropping by 5% this year, the future definitely looks bright for BetFair as they continue to expand their mobile apps and expand into more markets around Europe.