GVC enters the Portuguese sports betting market
GVC, the well-known British company based in Douglas, on the Isle of Man, expands its presence in the European sports betting market with the acquisition of the Portuguese Bet.pt . GVC Holdings owns several online casinos such as CasinoClub and well-known poker rooms such as partypoker; although its flagships are undoubtedly Ladbrokes, the former owner of Sportium, and bwin. Portfolio and market diversification due to the economic crisis generated by the COVID-19 pandemic and Brexit are the main reasons for such financial movements.
GVC Holdings continues its expansion in regulated European markets. Thanks to the acquisition of Bet.pt , the company behind bwin and Ladbrokes returns to the sports betting market in Portugal. ©jplenio/Pixabay
The situation of the Portuguese online gambling market
The balance sheet that the Portuguese regulatory authority, the Serviço de Regulação e Inspeção de Jogos (SRIJ), presented in 2019 it gave reason for optimism, it is not for nothing that online gambling and sports betting activities had generated more than 65 million euros in terms of public revenues in the last four months of the year, a remarkable figure in a country that is not characterized by the strength of its casino and online gaming market.
In the new report presented by SRIJ in which the data recorded for the first quarter of 2020 is analyzed, there is a growth in online gambling. Sports betting would have generated gross taxes worth 34.5 million euros, which means an increase of almost 10 million euros in relation to the same period the previous year.
The figures that move sports betting are around 150 million euros; although they are clearly overtaken by online casino gaming activities with a value that exceeds 950 million euros generating 35 million in gross taxes.
The modality that most Portuguese online players bet on continues to be football, which accounts for almost 75% of all bets . Basketball, tennis and ice hockey account for 22%. The figures are similar if casino games are considered. Slot machines are the ones that capture the activity of bettors, almost 70%, followed by French roulette, 12.5%.
COVID-19 balance sheet
In a recent study the Portuguese regulatory authority echoed the impact of the coronavirus pandemic on online gambling, registering a notable decline in sports betting in the months of March and April , coinciding with the worst months of the pandemic and the suspension of sports competitions.
In April the fall would have been alarming, registering an average value of 7.7 million euros, when in February it was around 55 million. Although the market would recover again in the following months reaching more predictable figures.
In this sense, it is noteworthy the reverse evolution observed in gambling, according to the data presented by SRIJ. The months of March and April involve a very marked rise in bets and records , coinciding with the widespread confinement and the paralysis of physical casinos. Once these they have resumed their activities in the following months, the volume of online casino players has decreased.
GVC acquires Bet.pt for an undisclosed sum
The sports betting portal Bet.pt secured a license to operate in Portugal in 2016, becoming one of the main online operators in the country . The expectations that this market holds are important, although the volume is relatively small compared to that of other European countries. It is expected to exceed the value of 400 million euros in the coming years.
Through the bwin sports betting portal, GVC already had a presence in Portugal, but, like other companies such as William Hill o bet365, decided to withdraw from the Portuguese market after the approval of the controversial gambling regulation in 2015 that meant a tax increase from 8 to 16% .
The measure was widely criticized by the European Betting and Gaming Association, who at the time considered the legislation to be discrimination against foreign operators but licensed in the regulated Portuguese market and that ultimately favored unlicensed online brands.
However, with the growth of online gambling, the opening of the US market and the necessary diversification of portfolios more than ever necessary in times of crisis, the main online operators are returning to the Portuguese gaming and betting market that it has experienced an annual growth of almost 16% .
In the case of GVC Holdings, the company's interests are also encouraged by an increase in revenue in the third quarter of the year . Operations in the United States through its partnership with the casino giant MGM , BetMGM and the online platform Roar Digital, is proving to be a success, with a presence in 8 North American states and reaching a not inconsiderable national market share of 17%.
The main interest lies in sports betting, although thanks to the subsidiary partypoker GVC remains the third largest online poker room behind PokerStars and Full Tilt Poker.
GVC's entry into the Portuguese sports betting market responds to its strategy of acquiring local companies in regulated markets and to make them leaders in their activity segment.
