Melbourne Cup Day, the biggest gambling day in Australia, saw punters tipping a lot while controversies on tactics used by betting companies became quite prominent. The nation’s biggest race also saw some betting companies using SMS to target consumers, and the names did touch upon the bookmaker CrownBet.
CrownBet, which is primarily owned by Crown Resorts has otherwise hit the headlines with the company highlighting an enormous amount being used against marketing spend in FY17. Particularly, the company’s accounts reflected an amount of about $99 million being spent on marketing in the year to June 2017 as opposed to $80 million spent in FY16. It has been emphasized that the company has reflected the figure to include wagering partnership with the AFL, sponsorship of sports including Supercars, horse racing advertising and other events, along with promotions that include loyalty programs associated with Crown Resorts.
On the other hand, CrownBet has shown a healthy performance with breaking even on an operating basis in a competitive environment while the pre-tax loss was slashed from $24 million to $12.7 million. The company’s gross revenue was about $1.5 billion while wagering revenue surged to about $224 million over $157 million of FY16.
Going forward, challenges are seen to crop-up with regards to crackdown on betting advertising and this would lead CrownBet face pressure during events such as live sports matches on TV. The company had already been witnessing tough time for a while with regulatory uncertainty hovering the fledging sector that led CrownBet close its online lottery business just after only two months of operation. Further, controversies on Lottoland and other regulatory issues, led the company shut down CrownLotto after only launching the business in August, which was otherwise delivering some profits.
It has been estimated that CrownBet’s turnover accounts for about 10% of the digital wagering market while peer Sportsbet accounts for 38% which is a little ahead of Tabcorp.
Disclaimer
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.