Paddy Power Betfair (PPB) has said that losses incurred by its US operations, the FanDuel Group, has forced it to revise its earnings outlook for the year. Meanwhile, a lucrative World Cup failed to offset higher betting taxes in Australia and disappointing revenues from horse racing.
Paddy Power Betfair CEO Peter Jackson is optimistic about opportunities in the US not just for sports betting but also horse racing, which will be cross-sold to sports bettors via the company’s TVG television network. (Image: Racing Post)
PPB said it expected its full year EBIDTA to be between £460 million and £480 million ($593 million and $619 million), down from the previous estimate of £470 million to £495 million ($606 million to $638 million), which predated the FanDuel deal. The news caused the company’s stock to dip four percent on the London Stock Exchange on Wednesday.
PPB has embarked on a flurry of investment in America since the US Supreme Court rejected federal legislation banning sports betting. The court’s decision in May paves the way for individual states to legalize and regulate sports books, and PPB is looking to capitalize.
US Expansion Costs Money
The FanDuel acquisition was finalized last month, with the daily fantasy sports operation merging with PPB’s American arm Betfair US. PPB will use FanDuel’s US brand recognition as a springboard into the emerging US sports betting markets.
FanDuel was not expected to have a material impact on PPB’s earnings. The Irish-British bookmaker said when the deal was announced the DFS site was “broadly breakeven” before any further investment in the US sports betting market.
But PPB said on Wednesday the combined business would be lossmaking in the second half of the year due to the “seasonality of daily fantasy business, which has high levels of marketing at the start of the NFL season in September and October, and the launch of the sports betting business.”
FOBTs No Big Deal
But PPB CEO Peter Jackson added the company was optimistic not just about sports betting in the US but also horse racing, which was a poor performer domestically.
We are very excited about the opportunities in the US and we have a very well-established horse racing business in that market in TVG [PPB’s horse racing and betting TV network], to leverage the customers in that business but also to sell racing into a new generation of punters in the US who come on and use our online services for betting on other sports,” he said.
Jackson also played down the impact the UK government’s drastic cuts to the maximum stakes of fixed-odds betting terminals would have on the company’s retail business. With fewer land-based betting shops than major competitors like William Hill and Ladbrokes Coral, PPB is less exposed to the fallout from the reforms, which will see maximum bets on the machines curbed from £100 ($129) to just £2 ($2.58).
The post ‘Loss-Making’ Fan Duel Contributes to Paddy Power Betfair’s Revised Earnings Forecast appeared first on Casino.org.
Claim Football Free Bets
Up to £100 in Bet Credits for new customers at bet365. Min deposit £5 and 1x settled bet requirement to release Bet Credits. Min odds, bet and payment method exclusions apply. Returns exclude Bet Credits stake. Time limits and T&Cs apply.
Up to £100 in Bet Credits
New Customers; Min. deposit €20 (no Skrill/Neteller); Bonus=50% of deposit up to €100; 6 x deposit and bonus turnover (min. odds 1.60 on singles and 1.40 per selection on combo bets), in 30 days, for bonus release; Each bet contributes max. 50% of bonus for turnover; Some bet types don’t contribute to turnover; Withdrawal before turnover results in bonus cancellation; Terms apply; 18+; MGA licensed (MGA/B2C/331/2016); BeGambleAware.org
50% First Deposit Bonus up to £100
New William Hill online customers only. Min. unit stake of £10/€10 at odds of 1/2 or greater. Only the “win” part from EW bets will count. Free bet terms, payment method & country restrictions apply. Free bets credited as 3 x £10/€10. Free bet stakes are not returned as part of the settlement of successful free bets. All Free Bets must be wagered within 30 days.
Bet £10 Get £30 in free bets
Available to New Players only | 6 Qualifying bets | Horse Racing bets do not Qualify | Min stake £10 | Max Bonus £35 | No E-Wallets | Min Odds Evens (2.0) or 2/5 (1.4) for combos | BeGambleAware.org | 18+ | Terms and conditions apply.
Up to £35 Bonus with your lowest stake matched after your first 6 bets.
New customers only – Minimum deposit of £10 using deposit code 30f - A qualifying bet is a ‘real money’ stake of at least £10 (£20 e/w) placed on any sports markets - Minimum odds of 1/2 (1.5) - Free bets credited upon qualifying bet settlement and expire after 7 days - Free bet stakes not included in returns - Deposit method and withdrawal restrictions apply - full T&C’s apply
Min Deposit £20. Max Sports Bonus £20. Max Casino Bonus £30. 5 x wagering to release sports bonus. Min odds 1.8. £30 casino bonus added within 24 hours of first sports bet settling. 40 x wagering to release casino bonus.
3 x £10 bets when you bet £10
New Customer offer. Place 5 x €10 or more bets to receive €20 in free bets. Repeat up to 5 times to receive maximum €100 bonus. Min odds 1/2 (1.5). Exchange bets excluded. T&Cs apply
Only available to new customers from UK & Northern Ireland. You must stake £10 or more at single/cumulative odds of Evens (2.0) or greater on your first bet. Free bet balance of £30 credited within 48 hours of your first bet being settled. Free Bets expire after 7 days. Offer not available to customers registering on 14/04/2018. E-Wallet restrictions apply. Game restrictions apply. Maximum 30 Free Spins on selected games. Free Spins expire after 7 days. Full T&Cs apply.
T & C Apply. 18+. UK+IRE only. Min first bet £5. Must be placed within 14 days of account reg. £20 credited as 4 x £5 free bets. Not valid with CashOut. Free bet valid for 4 days.
Up to £/€100 in bet Credits
New customers only. Min Deposit £10. Deposit & bonus amount must be wagered 6 times (min odds 4/5) prior to withdrawing bonus funds and any winnings. Wins from real money bets withdrawable at any time. Bonus on sports betting only. T&Cs apply.
50% extra up to £50 Deposit Bonus
T & C Apply, 18+, gambleaware.co.uk
Place 6 Qualifying bets for a £28 Bonus credit.