Sportsbet, which is an Australian online operator related to Paddy Power Betfair, received a $10 000 fine by Liquor & Gaming New South Wales. The fine was due to a promotion that encourages gamblers to invite their friends to open an account at their website.
How big are the fines?
The bookmaker has to pay $7 000 in legal costs in addition to the $10 000 fine for breaching the laws. The ad which was aired on 5th July encouraged people to refer their friends to sign up at Sportsbet.com.au. In exchange, they would receive $100 credited to their account.
According to the new laws introduced in New South Wales, Sportsbet and other bookmakers that promote gambling encouragements could face fines up to $55 000.
A spokesperson for Sportsbet said that even though the company has always complied with Australia’s gambling laws, they admit that they were in the wrong here and accept the fine.
Paddy Power Betfair still has high hopes for Sportsbet. They said in their financial report for 2018 that Sportsbet allows them to increase their market share in an industry that has high taxes. The report states a 9% revenue rise to £1.9 billion for the year of 2018. Their earnings before interest, tax, depreciation, and amortization (EBITDA) amounted to £451 million which is 5% lower compared to their figures from last year.
Paddy Power Betfair’s financial report
The price of a company’s share was constantly changing during the year. The peak was at £9.10, and it was achieved on 30th May, but now it’s at £6.25. The reason for the high price in May was the fact that the company was acquired by FanDuel.
The full-year dividend is 200p which means that the payout is equal to 53%. Revenues from online are up 5%, and if we look at the results in countries, Australia is 6% up, while US revenues rise 18%.
Paddy Power Betfair also has included their four pillars for success in the report. One of the main principles that they will continue to follow is to prioritise core markets but also explore new and fast-growing ones. They also want to change the name of the company to Flutter Entertainment and will seek permission from the shareholders in the next general meeting.
The CEO of Paddy Power Betfair Peter Jackson has said he is pleased with the results that were achieved by improving both the products and the marketing strategy. He also promised more investments in Betfair that will popularise the site around the world. Finally, he mentions that the US market is going to play a huge role in the development of the online gambling sector. They are looking to move quickly in order to capitalise on all the changes.