BetonSports sounds alarm on NFL results
As predicted by eGaming Review on 16 December (“Bad run of results expose US sportsbooks”), US-facing sportsbook BetonSports issued a warning after suffering from a poor recent run of NFL football results.
In the company statement released on 28 December, David Carruthers, chief executive of BetonSports, explained: “The NFL sports-betting margins in the US have been adversely affected recently as a result of a large number of favourites winning”.
The statement continues: “However, the company expects these margins will follow the trend of earlier years and return to normal levels during the balance of the financial year, in which case the results will be in line with expectations. However, if margins do not follow the trend of previous years then the outcome will be below those expectations”.
The warning is in line with the recent trend of winning favourites in the NFL regular season reducing the margins for bookmakers. Similarly tough results for the bookies in November 2004 prompted commentators to talk of a new template for US-facing sportsbooks, as they are required to adjust their models to take into account of what was previously considered a “once in a decade event”.
In the same statement, BetonSports has confirmed the acquisition of online sportsbooks and casinos MVPSportsbook, Player Super Book and V-Wager, for a maximum consideration of US$37m. The businesses will be integrated into the existing infrastructure in Costa Rica and Antigua.
Carruthers said: “The acquisition extends our cross selling opportunities and further strengthens our management team with US facing sports betting expertise. This transaction demonstrates the company’s commitment to consolidation within the industry and shows our continued confidence in growth opportunities if the US market.”
It also said Craig Lapsley had stepped down from the BetonSports board, but will continue in his role as company secretary and Richard Creed will step in as interim finance director until a full time replacement is found.
As predicted by eGaming Review on 16 December (“Bad run of results expose US sportsbooks”), US-facing sportsbook BetonSports issued a warning after suffering from a poor recent run of NFL football results.
In the company statement released on 28 December, David Carruthers, chief executive of BetonSports, explained: “The NFL sports-betting margins in the US have been adversely affected recently as a result of a large number of favourites winning”.
The statement continues: “However, the company expects these margins will follow the trend of earlier years and return to normal levels during the balance of the financial year, in which case the results will be in line with expectations. However, if margins do not follow the trend of previous years then the outcome will be below those expectations”.
The warning is in line with the recent trend of winning favourites in the NFL regular season reducing the margins for bookmakers. Similarly tough results for the bookies in November 2004 prompted commentators to talk of a new template for US-facing sportsbooks, as they are required to adjust their models to take into account of what was previously considered a “once in a decade event”.
In the same statement, BetonSports has confirmed the acquisition of online sportsbooks and casinos MVPSportsbook, Player Super Book and V-Wager, for a maximum consideration of US$37m. The businesses will be integrated into the existing infrastructure in Costa Rica and Antigua.
Carruthers said: “The acquisition extends our cross selling opportunities and further strengthens our management team with US facing sports betting expertise. This transaction demonstrates the company’s commitment to consolidation within the industry and shows our continued confidence in growth opportunities if the US market.”
It also said Craig Lapsley had stepped down from the BetonSports board, but will continue in his role as company secretary and Richard Creed will step in as interim finance director until a full time replacement is found.
