Sportingbet PLC has reported to the London Stock Exchange and its shareholders a solid end-of-year report, showing increases across the board and settling legal issues with the U.S. government over the company’s business activities prior to 2006.
Sportingbet, which owns Paradise Poker, ended its 2010 fiscal year at the end of June. On October 6th, the company reported the results to its shareholders. Andrew McIver, the Group Chief Executive, commented, “This has been a year of significant progress on a number of fronts.”
When compared to the previous year’s results, Sportingbet has to be pleased with the numbers. The company took in £1.971 billion in wagers over the course of fiscal year 2010 compared to £1.577 billion over the same 2009 fiscal year span. This is a 25% increase year-to-year, with similar numbers reported in other areas.
Soccer’s 2010 World Cup was a watershed event for Sportingbet’s wagering customers. During the span of the month-long tournament in June in South Africa, Sportingbet pulled in over £50 million in wagers, helping the company to its financial success. Sportingbet’s net gaming revenues for the 2010 fiscal year eclipsed £207.5 million, a 26.8% increase over 2009’s £163.6 million.
Of critical importance to shareholders of Sportingbet was the company’s recent settlement of legal issues with the U.S. government. After the conclusion of the 2010 fiscal year, Sportingbet entered into a non-prosecution agreement with the U.S. Department of Justice on September 19th, much like a competitor, Party Gaming, did earlier in the year.
The settlement designated that the company would pay $33 million over the next 18 months to settle any issues that the U.S. government had with Sportingbet’s activities in the United States prior to the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006. The settlement could allow for Sportingbet to re-enter the U.S. market once regulation of the industry is passed in Congress.
“Regulation continues to be a significant issue for the industry, both as a risk and an opportunity,” McIver said during the announcement. “(The settlement) is an important milestone for the Group, as the agreement removes any uncertainty caused by its previous activities in the United States.”
To this point in the 2011 fiscal year, Sportingbet has continued its excellent performance. McIver reported. “While the economic outlook remains challenging, our spread of activities across the different economic cycles of Europe, Australia, and South America gives us confidence for a year of further success.”
Although the company does not accept U.S. players, Sportingbet continues to be at the forefront of the European online gaming scene. Through its variety of gaming options – including sports betting, casinos, and online poker – Sportingbet has been able to garner a gross margin of approximately 10.3%, which is tops in the industry. It also has a multi-year sponsorship agreement with the English Premier League’s Wolverhampton Wanderers, with the Sportingbet logo prominently placed on the team’s jerseys.