Bet365 has reported wholly positive FY March 18 results, characterised by a 26% increase in betting and gaming revenue growth. This has since been reinforced by a recent deal with Empire Resorts to secure a New York sports betting licence, including an equity investment of up to $50 million.
EBITDA rose by 30% to £722 million (post software development), staff costs increased by 27% to £745 million (with 4236 employees, +10%) and software development rose 26% to £34 million. Bet365 now has £1.8 billion in cash on its balance sheet and a further £500 million of investments, with no debt.
Putting these results into context, Regulus Partners described how “bet365 has added roughly the equivalent of William Hill’s digital business in one year’s growth and is more than double the size of PPB’s digital business (including Australia) in revenue terms.
“Further, bet365’s reporting period is an ‘off year’, with no Euros or World Cup, suggesting a return to strong growth in actives post period end, in our view.”
Additionally, the Empire partnership will allow bet365 to expand into the New York sports betting market, as the venue seeks to utilise the operator’s renowned sportsbook offering to thrive as the market potentially opens up in 2019.
According to market estimates by Eilers & Krejcik Gaming LLC, the New York State sports wagering market is expected to be the single largest market jurisdiction for sports betting in the United States other than California, with projections for more than $1 billion in annual revenues from sports betting within five years of legalisation.