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· Posted on
April 5, 2024

Sportsbet's dealt a tough hand as its earnings take a hit

Sportsbet has revealed that its local revenue of $2.2 billion dropped by over 7% for the year ending December 31.

What's the key learning?

  • Flutter said that Sportsbet's dominance in the Australian market has gone down.
  • You can never predict when the boom times may end.
  • Sportsbet's CEO claims that “the challenging market, along with increased regulatory and compliance costs will reduce profitability further in 2024.”

👉 Background: Sportsbet is an online gambling company in Australia that is owned by Flutter Entertainment. Over the last decade, Sportsbet has been the biggest name in sports betting and has grown substantially.

👉 What happened: Now, Sportsbet has revealed that its local revenue of $2.2 billion dropped by over 7% for the year ending December 31. Flutter said that Sportsbet's dominance in the Australian market has gone down.

👉 What else: Sportsbet’s CEO did not rule out job losses at a company town hall last week. He says, “the challenging market, along with increased regulatory and compliance costs will reduce profitability further in 2024.”

What's the key learning?

💡You can never predict when the boom times may end, and for sports betting in Australia, things are looking tougher than we might have thought.

💡A number of things are having a negative impact on Australian sports betting companies right now:

  • Regulatory issues as governments continually impose more oversight on the industry
  • A reduction in the number of people betting on animal races
  • The risk of the federal government introducing a gambling ad ban

💡In 2023, Sportsbet contributed around 12% to Flutter's total revenue, which was a drop from 16% in 2022.

‍

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