Popular UK gaming and gambling company, Paddy Power Betfair, has released its financial figures for the first quarter. The company has posted a significant 17 percent year-on-year increase in revenues for the first three months of its business in 2019. It generated total revenue of £478 million, so far this year.
Despite moderate results from the domestic markets and unfavorable results impacting its sports betting business, Paddy Power Betfair has managed to gain significant revenues – thanks to its overseas operations in the US.
The company has posted a massive 47 percent increase in revenues from its US operations. The group generated £78 million from its businesses in the US.
After Paddy Power’s merger with Fanduel, a popular betting platform which has operations in 41 US states, it is estimated that the company now holds 15 percent of the US sports betting business.
The company’s online sports betting revenues slipped by 6 percent year-on-year in the first quarter. It managed to generate only £152 million from online sports betting operations.
The dip in online sports betting revenues has been attributed to unfavorable football results and also because of horse racing suspension for sometime in February, earlier this year.
Facing the brunt of stringent regulation several UK-based gambling operators are now turning to overseas markets and the US and expanding Asian markets seems to be amongst their favorites.
Also, after maximum stake limits on FOBTs was reduced from £100 to £2, the companies have been struggling to generate revenues. Following the stake reduction, which came into effect earlier last month, Ladbrokes which owns and runs over 3000 stores across the UK, had announced to shut1000 stores.
With UKGC stiffening its stand on consumer protection and heightened operator’s liabilities to curb gambling addiction, it is becoming difficult for operators to carry business as usual in the country.