Gaming Companies Are Banking On Spread Of Sports Gambling In U.S. To Meet Projections
A couple of gaming companies in William Hill and The Stars Group recently reported their earnings and projections, and there is little surprise that they are each banking on sports betting opportunities in the United States for future growth.
William Hill, which announced a revenue increase of 4%, also forecasts an operating profit in 2018 of between £225m and £245m. That would be far below the £291.3m in operating profits reported for 2017.
However, William Hill CEO Phillip Bowcock remains optimistic about the company’s future particularly due to the belief that it will create a dominant position for itself as sports betting expands in the U.S.
“I’m pleased to report that we’ve built on our market leading position in Nevada to make rapid progress in other states as they legalize sports betting, and are the only company to be taking sports bets in the first five states to have regulated,” said Bowcock.
William Hill’s existing U.S.-based businesses saw their revenue increase by 6% year-over-year. Its sportsbook product was up 17%.
Meanwhile, The Stars Group saw much better numbers overall for Q3 2018. It reported a 73.6% increase in year-over-year revenues, and it also expressed excitement about more potential growth through its BetStars online sports betting brand, which has a partnership in place with Resorts Casino Hotel in New Jersey.
“We completed our acquisition of Sky Betting and Gaming, which was cleared by the CMA in October, making us the leader in the UK online betting and gaming market. We also launched BetEasy in Australia and sports betting in New Jersey,” said The Stars Group CEO Rafi Ashkenazi.
While gaming companies like William Hill, FanDuel and DraftKings may be off to an early lead in receiving name recognition attached to legalized sports betting in the U.S., The Stars Group could easily make a big push as more states add sports betting options in 2019.