Australia’s leading online sports betting site Sportsbet saw its revenue fall 18%, or 7% at constant currency, to £262 million (US$320 million) in 3Q23, with the company citing a “challenging racing market” for the decline.
According to parent company Flutter Entertainment’s quarterly trading update, sportsbook stakes in Q3 were 9% lower than a year earlier, although the revenue decline wasn’t quite as steep due to net revenue margin growing by 20 basis points to 11.3%.
Sportsbet also saw its average monthly players grow by 2% to more than 1.12 million due to “good retention of our recreational player base”.
However, current market conditions are expected to persist into 2024, the company explained, resulting in an estimated mid-single digit decline in the overall Australian market in 2024.
“The market is also experiencing increased regulatory oversight, including a ban on credit card deposits,” Flutter said.
“The combination of these items will now limit our ability in the near-term to offset the impact of the previously announced Victoria point of consumption tax increase from July 2024, [which will result in an] annualised cost £27 million (US$33 million).
Flutter CEO Peter Jackson added, “While market conditions in Australian racing remain challenging, as the clear market leader with a player base 1.8 times that in 2019, we are confident that Sportsbet is the best positioned brand in the market.”
