Daniel Williams

UK Gambling Giants Enjoy Revenue Increase Thanks to US Market Growth in H1 2023

Ireland-based online gambling giant Flutter Entertainment which currently owns a bunch of renowned brands such as Sky Betting and Gaming, Paddy Power, Betfair, The Stars Group, etc., has enjoyed a great performance of its shares so far in 2023 thanks to increasing revenues. The company’s investors are reportedly hopeful that the momentum would continue after it reports its interim results on August 9th.

At the same time, Entain, another popular British gambling giant, is also set to reveal a steady, double-digit revenue increase on August 10th, when it is scheduled to provide its update on the markets.

The revenue increase trends for some of the biggest gambling operators in the region come at a time when gambling companies in the UK remain committed to looking for further expansion in international markets, and particularly in the US, as they are trying to offset some negative effects that have been hurting their performance in their home market.

As Casino Guardian previously reported, the regulated gambling sector in the UK is facing serious constraints to profitability and growth as a result of the latest series of gambling reforms announced by the Government in April this year. At the time, lawmakers unveiled plans to impose tighter stake limits for online casinos and enhanced affordability checks.

Flutter Entertainment and Entain Expected to Announce First-Half Results Later This Week

At the beginning of 2023, Flutter Entertainment experienced strong growth in the UK, as it managed to take advantage of the tailwinds associated with the 2022 World Cup in Qatar that took place between November 20th and December 18th, 2022. The company was also one of the operators that saw its strong performance heavily boosted by the US sports betting market.

Reportedly, the company’s headline revenues increased by 46% over the first three months of the year, with a 92% increase stateside thanks to the growth of Flutter Entertainment’s sportsbook business, as the company took advantage of the more relaxed spots betting rules in some US states. According to predictions, on August 9th, the company is expected to report a slight decline in its growth due to tougher comparisons but its shareholders are set to witness a first profit from Flutter’s fast-growing US unit.

The profit update will also be made at a time when Flutter moves closer to its planned joint listing in the US that is set to take place by the final quarter of 2023. According to some market analysts, the company’s growth in the higher-margin online business could be beneficial, but investors will still have to watch out for the market trends, as well as for any signs that the operator’s customers are starting to feel the increasing pressure on disposable income.

When it comes to Entain, the company’s shareholders will also be given the chance to take advantage of the US gambling and sports betting market’s growth, with this expected to be taken in mind when it provides its US update after a few days.

Olivia Cole

Olivia Cole has worked as a journalist for several years now. Over the last couple of years she has been engaged in writing about a number of industries and has developed an interest for the gambling market in the UK.

Daniel Williams

Author: Jerry Lewis