Australia’s biggest bookie Sportsbet will continue to rake in the profits despite the recent increases in the Point of Consumption (POC) tax in some Australian states and territories.
Flutter Entertainment, the group that owns Sportsbet, is confident that New South Wales, Queensland, and the Australian Capital Territory raising the POC tax for online betting providers won’t have any effect on Sportsbet’s performance and growth in Australia.
Sportsbet Has a Strong Record of Managing Regulatory Risk
In a statement accompanying Flutter’s H1 results, Sportsbet’s parent said the bookmaker “delivered another strong performance” and demonstrated “excellent execution across product, value, and brand.” As a result, Sportsbet was now able to “swallow the impact” of the POC tax hikes in three Australian states and territories.
The tax increases will hit Sportsbet with an additional $39 million in tax expenses in 2022, and the betting operator will have to pay an extra $129 million to the government in 2023.
Flutter has no doubt, though, that Sportsbet will deal with the tax increase in the best way possible, as the bookmaker has already done that in the past. Flutter’s statement explained that the betting operator had a “strong record of managing regulatory risk” and that after POC taxes were implemented in 2019, the bookie took “meaningful market share” and increased its profits.
Players Up By 10%, Revenue By 5%
Sportsbet’s financial results for the first half of 2022 indicate the sportsbook is experiencing continued growth in both revenue and customers in Australia.
As we already reported, Sportsbet’s average number of monthly customers increased by 10% compared to H1 2021. The betting operator’s revenue also went up to $1.08 billion, a year-on-year increase of 5%.
Adjusted EBIDTA grew by 9% to $1.75 billion, and gross profit was $569 million, a 4% year-on-year increase. Adjusted operating profit increased to $364 million, a 9% increase, compared to H1 2021.
Sportsbet’s UK owner also reported an increase in revenue and strong player retention. Flutter recorded an 11% year-on-year improvement in revenue and announced it made $5.98 billion from selling its products and services.
Excellent Retention of Players After COVID Restrictions
The group attributed this growth to players that migrated from retail to online betting providers during the COVID pandemic and listed Sportsbet as an excellent example of strong player retention during the coronavirus restrictions.
Flutter said that ahead of the new AFL and NRL seasons, Sportsbet focused on “retaining customers through targeted generosity initiatives,” something the bookie had to do after the retail restrictions in H2 2021.