BETCORP TURNS TO POKER
Tough sports results to be compensated for by poker profits
The Australian business media reported this week that the Betcorp betting group is to turn to online poker to compensate for painful losses to gamblers on the sports side of its business.
The Australian reported that Betcorp hopes to exploit the conventional wisdom that sports betters are best attracted to poker, and will make attempts to interest its large gambler base in using online poker facilities as well.
Betcorp, which is based in Melbourne but runs its websites from Toronto and Antigua in the Caribbean, outlined a strategy to convince more sports gamblers to broaden their gambling tastes.
Chairman David Hudd said the company hoped to reduce its reliance on sports betting - which accounted for 64 percent of its gross revenues - by "cross-selling" poker and casino games. "Betcorp takes no risk in poker games because its income is generated by charging a percentage fee on each pot played," Hudd said.
Betcorp suffered at the hands of the sportsbetters on American football in the last quarter of 2005, when a string of heavily backed favourites won games in the lead-up to the Super Bowl.
Nevertheless, the group reported strong growth in revenues and profits over the whole of 2005 with:
• A$5.6 million (US$ 4.3 million) profit after tax (2004: loss of US$ 8 million)
• Gaming revenues up 42 percent to US $ 29.4 million (2004: US$ 20.7 million)
• Major turnaround from A$10.9 million (US$8 million) loss in previous year
• 44 percent growth in the number of active clients
• Casino revenues up by 86 percent to US$6.9 million (2004: US$3.7million)
• Exponential growth of poker rake from US$0.2 million in 2004 to US$3.6 million in 2005
• Successful integration of Sinsational Intertainment Inc
• On track for further substantial growth in 2006
This performance reflects the strategic repositioning of Betcorp under new management as a multi-product, online gaming operator offering sportsbetting, casino, poker and skill games to a broad base of recreational customers. The board of directors say that operationally, the business has been strengthened and the building blocks are now in place to deliver further substantial growth in 2006.
Commenting on the results, Colin Walker, Chief Executive Officer said: “I am delighted by the turnaround we have achieved in 2005. The year finished with poker, casino and sportsbetting all at record levels of activity. Meanwhile, 2006 has started very well and has reversed the sports margin trends experienced in the fourth quarter of 2005.”
Tough sports results to be compensated for by poker profits
The Australian business media reported this week that the Betcorp betting group is to turn to online poker to compensate for painful losses to gamblers on the sports side of its business.
The Australian reported that Betcorp hopes to exploit the conventional wisdom that sports betters are best attracted to poker, and will make attempts to interest its large gambler base in using online poker facilities as well.
Betcorp, which is based in Melbourne but runs its websites from Toronto and Antigua in the Caribbean, outlined a strategy to convince more sports gamblers to broaden their gambling tastes.
Chairman David Hudd said the company hoped to reduce its reliance on sports betting - which accounted for 64 percent of its gross revenues - by "cross-selling" poker and casino games. "Betcorp takes no risk in poker games because its income is generated by charging a percentage fee on each pot played," Hudd said.
Betcorp suffered at the hands of the sportsbetters on American football in the last quarter of 2005, when a string of heavily backed favourites won games in the lead-up to the Super Bowl.
Nevertheless, the group reported strong growth in revenues and profits over the whole of 2005 with:
• A$5.6 million (US$ 4.3 million) profit after tax (2004: loss of US$ 8 million)
• Gaming revenues up 42 percent to US $ 29.4 million (2004: US$ 20.7 million)
• Major turnaround from A$10.9 million (US$8 million) loss in previous year
• 44 percent growth in the number of active clients
• Casino revenues up by 86 percent to US$6.9 million (2004: US$3.7million)
• Exponential growth of poker rake from US$0.2 million in 2004 to US$3.6 million in 2005
• Successful integration of Sinsational Intertainment Inc
• On track for further substantial growth in 2006
This performance reflects the strategic repositioning of Betcorp under new management as a multi-product, online gaming operator offering sportsbetting, casino, poker and skill games to a broad base of recreational customers. The board of directors say that operationally, the business has been strengthened and the building blocks are now in place to deliver further substantial growth in 2006.
Commenting on the results, Colin Walker, Chief Executive Officer said: “I am delighted by the turnaround we have achieved in 2005. The year finished with poker, casino and sportsbetting all at record levels of activity. Meanwhile, 2006 has started very well and has reversed the sports margin trends experienced in the fourth quarter of 2005.”
