Entain Looks to World Cup Betting for Revenue Boost
The FIFA World Cup in Qatar is set to kick off in little over a month, and Entain expects good results for its sports betting operations during the tournament. The company is optimistic that the betting odds in world cup 2022 can help the company grow its revenues as well as its market share. This company's latest quarterly update highlighted positive results for its operations, with a ninety percent year-over-year increase in revenue.
The company has been growing its revenue in the US, where it has a 25% market share through its joint venture with MGM Resorts International. This has been supported by the start of the US National Football League season. Similarly, its Net Gaming Revenue (NGR) for the third quarter in the US increased 90% year-over-year, while same-state revenue increased by 50%. With this growth, the company is expecting to see even higher revenue growth during the World Cup.
Entain expects its revenue in the fourth quarter to increase, as World Cup betting is expected to be popular. This could help the company's online gaming revenues rebound as well. The company, which also owns Coral and Ladbrokes betting shops, has been struggling to grow its online revenue. While digital net gaming revenue in the third quarter increased 1% year-over-year, it was flat on a constant-currency basis. This may be attributed to the fact that more punters are returning to retail shops. Meanwhile, the new licensing regime in the Netherlands has negatively affected the company's online gaming revenue.
However, the World Cup can also be bad for betting companies. Major tournaments typically bring a huge number of new customers to their sites. In fact, betting companies often focus their marketing efforts on customer acquisition during major tournaments. Boosting customer numbers is good for the long-term health of a company.
