The gambling software giant Playtech has been boosted by the successful debut of bet365 in the flourishing US sports betting market. The Isle of Man-based gambling software developer said that it expected to surpass analysts’ expectations for its full-year results.
Currently, the US is seeing a rapid increase in gambling popularity thanks to the repeal of the long-time ban on sports betting in the country.
As revealed by Playtech, the launch of bet365 and Entain, formerly known as GVC Holdings, in the state of New Jersey meant that its earnings before interest, tax, depreciation and amortisation (EBITDA) would amount to approximately £270 million (€300 million) for the full 2020. The gambling software provider’s share price increased by 5.2pc in the afternoon trading, estimating the company at £1.4 billion.
Apart from praising bet365 for its success in the US, Playtech also unveiled that the talks over a potential sale of the online gaming and financial services operator Finalto, which was previously known as TradeTech are still ongoing. Months ago, in August 2020, Playtech hired investment bankers from UBS to explore and consider a potential sale.
UK Gambling Operators Become Target of Interest for US Casino Giants
As revealed on January 12th, a powerful investor body had to intervene and force Playtech to select a new chairman. The Investor Forum – an influential investor body that represents some of the largest Square Mile financial institutions, revealed that it had received a commitment from the Isle of Man-based operator to find a permanent successor for Alan Jackson.
With the gambling software developer grappled with the coronavirus pandemic, its search for a new chairman was suspended in the summer of 2020. At the time, Claire Milne was chosen as interim chairperson.
When it comes to Stoke-on-Trent based gambling operator bet365, the company managed to capitalise on the reforms brought by the Government of Prime Minister Tony Blair, under which the gambling sector in the UK was liberalised.
Currently, bet365, whose co-owner Denise Coates is currently one of the best-paid gambling companies’ executives in the UK, holds about 25% of the sports betting market. According to reports, nearly £65 billion are being placed as wagers with bet365 on an annual basis.
As Casino Guardian has already reported, US gambling companies – especially US casino giants – have focused on the UK as a desired target for future acquisitions that could help them boost their knowledge and expertise in sports betting and online gambling.
Before MGM Resorts’ decision to take the initiative and propose an acquisition deal to the local gambling group Entain, British gambling company William Hill has already said yes to Caesars Entertainment’s takeover deal. Another local gambling giant – Flutter Entertainment, which owns the popular gambling brandy Paddy Power, Betfair and SkyBet – is already working in collaboration with the US sports betting and daily fantasy sports operator FanDuel and Fox Corporation.
- Author
Olivia Cole
