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New Sports Apps Face Struggles during COVID-19 Crisis
The COVID-19 pandemic’s negative effect on the gambling industry has been felt across the board both offline and online. Beyond the closing of land-based casinos and bet shops, the online industry continues to feel the impact of the novel coronavirus with, so far, no end in sight.
This is especially true for online sportsbooks that don’t have a casino offering and new bookies who haven’t yet had time to establish their brands and gain a foothold in the market. Without other revenue lifelines and with challenges mounting during this disease-driven economic crisis, many of these new operations could fold.
Some of the Challenges faced by New Sports Apps
New online bookmakers and mobile first-bookies with a focus on sports apps are struggling to stay alive in this strange betting world where horse racing and football – the bread and butter of the sportsbook industry – have been halted across Europe since mid-March. With that said, challenges that some of these brands may be facing include:
Lack of casino offering
More established bookmakers have found other ways to survive the economically crushing pandemic by offering their customers alternative gambling entertainment, such as slots, casino games, live casino, poker, lotto, etc. However, most of the bookies that have been able to switch their marketing focus to these other gambling streams are well-established names in the industry and already have these products in place. That said, there is a lack of casino department for most smaller bookies that have taken a niche approach and built their brands solely around sports.
Competing with big name sportsbooks
Sportsbook giants like William Hill, Bet365, Ladbrokes Coral and Paddy Power have another advantage over smaller businesses. They have been established for years and have the advertising funds that lesser known bookies do not. Moreover, they have a better chance of survival as their operations are much larger and extend beyond sports betting.
Threat of daily gambling limit
In March the Gambling Related Harm All Party Parliament Group (APPG) called on the British gambling industry to impose a £50 daily spending limit for customers throughout the duration of the coronavirus pandemic. The APPG’s concern is that as the crisis deepens, more people will turn to online and mobile gambling as a distraction, including those who have never considered gambling before. The APPG fears that this could take a toll on the nation’s financial and mental health. Needless to say, if such a daily spending limit was enforced, this would further cripple gambling business, making it nearly impossible for smaller bookies to survive.
There May Be Some Light at the End of the Tunnel
In spite of all the challenges, if some of the smaller bookies manage to stay afloat for another couple of months, they may be able to survive COVID-19. The reason is that football might be back soon and provide a lifeline as early as June.
According to The Guardian, Premier League clubs have discussed re-starting the season by 13-14 June. This would allow the competition to finish by 31 July and clear up August for the completion of both the Champions League and Europa League.
In this best-case scenario clubs would begin a “pre-season” from 10 or 14 May, which would give players four weeks to regain their fitness. Then, with seven weeks to complete the season, (as 16 clubs have nine matches remaining and another 4 clubs have 10), it is believed that this timeframe should be sufficient for the campaign to finish without being too rushed.
Unfortunately, due to the unpredictability of the virus, there is no telling if this best-case scenario will occur. The worst-case scenario, on the other hand, would be for football to remain on hold until October, which would be seven months after the last round of matches and a brutal blow to sportsbooks both big and small worldwide.
With any luck, the best-case scenario for football will come to light. For now, though, new sports apps and online bookies will need to focus their efforts on bringing in revenue through other markets like virtual sports and eSports betting, and hope for the best.
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LOTTOMATICA GROUP S.P.A. CONTINUED STRONG PERFORMANCE IN Q3 2024, WITH ADJ. EBITDA UP +30% VS 2023. ONLINE MARKET SHARE AT AN ALL-TIME HIGH. TARGET SYNERGIES FOR SKS365 INCREASED. GUIDANCE1 FOR 2024 CONFIRMED.
The Board of Directors of Lottomatica Group S.p.A. approved the Condensed Consolidated Interim Financial Statements as of and for the nine months ended 30 September 2024.
Read the full Lottomatica press release below.
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The post LOTTOMATICA GROUP S.P.A. CONTINUED STRONG PERFORMANCE IN Q3 2024, WITH ADJ. EBITDA UP +30% VS 2023. ONLINE MARKET SHARE AT AN ALL-TIME HIGH. TARGET SYNERGIES FOR SKS365 INCREASED. GUIDANCE1 FOR 2024 CONFIRMED. appeared first on European Gaming Industry News.
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Datawrkz, a Nazara subsidiary, acquires majority stake in UK growth marketing agency, Space & Time
Transaction set to fast-track Datawrkz’s ambitious growth plans
Datawrkz, a subsidiary of Nazara Technologies Limited (BSE: 543280) (NSE: NAZARA) has acquired a 100% stake in Space & Time, an independent growth marketing agency with offices across the UK for approximately GBP 4.8 million (~INR 52.3 crores) in cash and stock.
This acquisition is a key move in advancing Datawrkz’s growth ambitions across Europe and North America, positioning it as a scaled player in the global digital advertising market.
The collaboration brings together Space & Time’s expertise in growth marketing, media, and technology with Datawrkz’s strengths in programmatic advertising technology and optimization. This partnership will enable both companies to deliver more impactful digital advertising solutions and drive further expansion, especially in the European and UK markets. Additionally, Space & Time will gain access to Datawrkz’s cutting-edge technology and products, enhancing their ability to deliver effective campaigns and capitalize on growth opportunities in Europe and North America.
Datawrkz was founded in 2013 on the premise that digital advertising can be done better in every way.
Senthil Govindan, CEO and founder of Datawrkz, will join the Space & Time board. He noted, “We are embarking on an inorganic strategy to complement our strong independent growth, and Space & Time is an ideal partner. The cultural alignment and shared focus on delivering value for clients make this acquisition a perfect fit. We anticipate this collaboration will significantly boost growth for both companies, with Space & Time driving our expansion in Europe.”
Launched in 2000, Space & Time has achieved strong revenue growth over the last three years and is one of a select few Google Premier Partners in the UK. Earlier this year, Space & Time chief executive officer, Chris Jones, was named in the ‘CEO and Leaders’ category of the BIMA 100, a listing of the top 100 movers and shakers in the UK’s digital and technology industry.
Chris Jones adds: “The company was founded with very clear principles focussed around client success. I’m incredibly proud to say these are more intrinsic and fundamental to our values than ever. The challenge was to find an investor that shares this passion for client-centricity and that’s exactly what we’ve found in Datawrkz. As two fast-growing and specialist businesses, the potential between us made this the perfect match and the investment in key areas such as data and technology that this deal brings will help future-proof our clients’ business as we continue to grow.
The deal represents an exciting new chapter in the Space & Time story as we partner with Datawrkz to bring new opportunities to clients. We’re excited for all that lies ahead.”
The post Datawrkz, a Nazara subsidiary, acquires majority stake in UK growth marketing agency, Space & Time appeared first on European Gaming Industry News.
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Affiliates react to Autumn budget announcement
Richard Moffat, CEO, OLBG “We were initially worried about the rise in remote gaming duty rumours, as operators would likely have swallowed these costs by rolling out worse products, worse pricing and fewer offers for gambling consumers. When this happens, punters consider switching to the black market, where friction is lower because player protection is non-existent and taxes are not always being paid.
“The new Labour government has avoided this scenario by keeping tax rates consistent, which will come as a relief to many businesses in the sector that were preparing for the worst, and is ultimately great news for the consumer. The British horse racing industry will also breathe a sigh of relief as any increase in taxes may well have hit their income at a time when many stakeholders are in need of revenue growth.
“Trust in the former Conservative government was damaged by the election betting scandal, and Labour still have their work cut out, according to our latest survey with YouGov.
“Respondents didn’t differentiate vastly between the parties, with more than one-quarter (27%) suggesting that Labour will do no better at regulating gambling than the Conservatives. Only time will tell, but the budget has shown that gambling is some way down Labour’s new list of priorities.”
Jamie Walters, CEO and co-founder, QiH Group “The speculation proved to be just that, as an anticipated rise in remote gaming duty never materialised. While the industry clearly avoided a worst-case scenario, that does not necessarily mean this was a good budget for business.
“The rise in employer National Insurance contributions will be difficult for many small to medium-size businesses, but is at least in keeping with Labour’s pledge to protect the general working public from tax hikes.”
Neil Roarty, head analyst, ClickOut Media “Two weeks ago, when speculative proposals on taxation of the industry were announced, they had a huge deleterious impact on the market, with a total of £3.5bn in stock value lost by the industry’s biggest giants.
“These proposals never arrived, and may not even have been considered by Labour, which has pushed a gaming duty review back to next year. Gambling stocks have already bounced back as something of a correction, with Entain up 8% for example.
“This will come as a welcome surprise for the industry, and also for consumers, who would have been forced to shoulder the cost on behalf of bookmakers. The tobacco and vaping industry was in the ‘vice’ sector crosshairs instead on this occasion.”
The post Affiliates react to Autumn budget announcement appeared first on European Gaming Industry News.
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