The Dublin-based gambling company Flutter Entertainment reported a revenue slump in Ireland and the UK, which it attributed to safer gaming measures and the decrease in online betting activity after coronavirus restrictions were lifted. The Irish company suffered £30 million in losses resulting from the implementation of safer gambling strategies over the past twelve months. Flutter witnessed a 20% decline in Q1 online revenue compared to the results for the previous year when the two countries were in lockdown.
The holding company owns several international betting and gaming brands, including Betfair, Paddy Power, Sportsbet, and FanDuel. Flutter’s financial performance update also indicated that the company’s UK retail betting chain almost returned to its pre-coronavirus levels as customers started to come back to high-street bookmaking shops. According to the betting giant, the Q1 revenue of the UK chain is on its way to recovery as it was only 6% lower compared to pre-pandemic results two years ago.
The Irish retail betting chain will need more time to recuperate financially and return to its previous levels, the company said. It generated 24% less revenue compared to the first quarter of 2019. Flutter pinpointed Irish people’s increased caution with regard to the virus as the main reason for the slower recovery.
Mr Peter Jackson, Flutter’s Chief Executive Officer, said the cost-of-living crisis in Ireland was yet to show more pronounced signs of impacting the company’s customer base. However, the CEO added it would undoubtedly affect punters’ betting expenditure in the future. Ireland witnessed a 6.7% increase in prices in the year to March 2022, reflecting the highest inflation level the country has seen in the past twenty-two years.
Flutter’s US Market Performance Offset the Revenue Drop in UK and Ireland
Chief Executive Jackson said it was early to predict with certainty how the soaring prices would impact Flutter’s business. In the meantime, betting companies across the UK are eagerly anticipating the release of the white paper on the British government’s review of the 2005 Gambling Act. The paper is expected to shed more light on the safer gaming measures to be implemented in the country.
Originally scheduled for the end of 2021, the release was postponed until May this year. The review was launched by the Department for Digital, Culture, Media, and Sport (DCMS) at the end of 2020 due to increasing concerns over gambling-related harm and minors’ exposure to gambling through ads and sports sponsorships. Gambling Minister Christopher Philp explained the delay with the broad range of issues the review was considering.
CEO Jackson said he hoped the much-anticipated paper would “help level the playing field” so that other gambling companies would follow in Flutter’s footsteps and adopt similar responsible gambling measures.
Despite the underwhelming performance in the UK and Ireland, the holding company reported a 6% increase in overall Q1 revenue. The quarter saw Flutter generate £1.6 billion, with FanDuel being a huge driver of growth. The US market accounted for over half of the betting handle for this year’s first three months. US revenue rose by 45% reaching £429 million (US$537 million). The Irish betting giant saw a 15% increase in the number of average players per month which reached 8.9 million globally.
- Author
Daniel Williams
