Entains online gambling income for the initial six months of 2022 saw a rise of 18% compared to the same period last year. This increase was fueled by the loosening of Covid-19 restrictions, which allowed for the reopening of physical betting establishments.
Entain’s trading update revealed that physical revenue surged by a remarkable 243% year-on-year during the first half of the year, ending on June 30th. This growth surpassed expectations, as the lifting of numerous Covid-19 measures enabled physical operations to return to a near-normal state.
During the corresponding period in 2021, Covid-19 regulations resulted in the closure of physical stores for a portion of the time, and they faced operational limitations in the latter half of the period, restricting the number of patrons who could engage in gambling activities.
However, Entain reported a 7% year-on-year decline in online revenue compared to 2021. This drop was attributed to a greater number of players opting for online gambling in 2021, which coincided with the partial closure of physical stores. Online gaming revenue experienced a 9% decrease, while online sports betting revenue also fell by 6%, with wagering amounts declining by 3% year-on-year.
Entain attributed this trend to a weaker macroeconomic environment, which resulted in a reduction in customer spending rates.
As a result, Entain anticipates that full-year online income will stay consistent based on present projections.
BetMGM, Entain’s joint venture with MGM Resorts, continues to perform well, in line with expectations, and is projected to surpass $1.3 billion in revenue for the entire year.
Looking ahead to the second quarter, the group’s total revenue rose by 8% year-over-year, primarily driven by a 79% increase in retail revenue.
Online revenue decreased by 7% in the second quarter, with online casino revenue down 7% and online sports betting revenue down 6%, although sports betting volume increased slightly by 1%.
“We are happy to see more and more customers choosing to partner with us, reflecting our focus on casual players and putting customers at the center of everything we do,” said Jette Nygaard-Andersen, Entain CEO.
“We continue to expand our growth possibilities through complementary acquisitions, having completed four transactions so far this year. Supported by the Entain platform, BetMGM continues to dominate the US market with a 24% market share.
“While the economic outlook is uncertain, the fundamentals of our business remain strong.”
Were witnessing an increase in individuals seeking recreational pursuits, and our financial performance remains stable. We’re optimistic that our customer-centric approach, varied offerings, and established history of organic expansion and mergers and acquisitions will aid us in advancing our strategic objectives.
Entain also indicated that they anticipate their recent acquisition of BetCity to be finalized in the latter half of the year, stating that it will present “strategic growth opportunities” within the regulated Dutch market.
In the previous month, Entain agreed to purchase BetEnt (operating as BetCity), a Dutch online sports betting and gaming enterprise, from Sports Entertainment Media. The transaction is now finalized.