Gambling profits in focus after Euro 2024 scores go in bookies’ favour

Some of the world’s biggest betting firms are set to reveal whether they have cashed in on a set of major global sporting events, as they prepare for new rules for gamblers in the UK.

Flutter Entertainment, which owns a swathe of brands including Betfair, FanDuel and Paddy Power, will update investors on its financial performance on Tuesday.

William Hill and 888 owner Evoke will publish its half-year results on Thursday.

It follows rival gaming group Entain revealing that it benefited from Euro 2024 with a slew of football results going in the bookmaker’s favour.

The tournament drew in punters from across the continent with bets backing teams and players.

A high number of draws during the Euros was good news for the bookmaker as it typically results in fewer and lower-value winners.

Bookies could also be set for a boost from major events such as the Paris 2024 Olympics and the upcoming National Football League (NFL) in the US.

Analysts are expecting Flutter, a global online sports betting firm, to have been strengthened by its businesses in the US, including the growing popularity of FanDuel, and football results in the UK.

It is expected to report adjusted earnings of 638 million dollars (£501 million) for the past three months, according to an analyst consensus compiled to Morgan Stanley.

Investors are also hoping that its sales have continued to climb after reporting a 16% jump in revenues in the latest quarter.

Meanwhile, Evoke in July said it was expecting to report adjusted earnings of between £35 million and £40 million for the first half of the year, a “disappointing” downgrade on its previous expectations.

Evoke, which rebranded from 888 earlier in the year, said online sales in the UK grew by 3% but dropped by 8% across its retail business, which includes William Hill shops, over the period.

The firm hopes to see growth improve on the back of a new strategy launched in March, which will see it focus more on core markets and invest in AI to make the business more efficient.

Meanwhile, the UK is facing stricter gambling rules with new checks being trialled by the regulator.

It includes changes to reduce the intensity on online games, tighter age verification checks in betting shops, and affordability checks for gamblers.

Checks will initially come into force for online gambling customers spending £500 a month from August 30 as part of a pilot scheme.

Entain on Thursday said that regulatory changes already in place in the UK had resulted in it losing some higher-paying customers.

Other proposals made under the former the Conservative government have been left in limbo following Labour’s election victory.

Published: 11/08/2024 by Radio NewsHub