British online betting exchange hopes to significantly increase the number of members during the World Cup.
Everyone is certainly hyped about tonight’s World Cup opener in Sao Paolo, where the hosts Brazil are meeting Croatia. The majority of football punters have already made their wagers for the opening match at online sportsbooks in the United Kingdom , but some are still searching for the best outlet to do so.
Betfair is one of the most renowned bookmaking brands operating under British gambling laws, but it’s main difference from the competition lies in the fact that they also run a betting exchange where punters wager against each other.
Recent developments at the betting exchange
Under Breon Corcoran CEO Betfair has been decreasing their operations in an attempt to cut costs. They are now focusing on fewer markets where profits are larger and more secure. Corcoran told British gambling news: “The emphasis on sustainable revenues and our product and marketing investments are paying off, resulting in record revenues and profits.”
The strategy changes are already taking effect. The company’s operating profit increased by a whopping 24 percent year-on-year to represent over GBP 91 million. This was mainly possible thanks to over GBP 30 million saved costs at Betfair.
Naturally, all bookmaking operators in Britain will be in for rough times starting this December. This is when the new regulations take effect, making sure that all gambling companies targeting local population are taxed according to British laws, which is much higher than offshore. Betfair’s own estimates put the losses from taxation changes in the United Kingdom, Ireland and Italy at almost GBP 40 million.
How World Cup will help the bookmaker
The World Cup kicking off tonight in Brazil is one of the main hopes for Betfair, just like for any other betting company around the world. Sportsbooks anticipate lots of bets by existing customers and a long list of new member signups.
Betfair looks forward to World Cup hoping for an increase in members
•The company is one of the most renowned online sportsbooks in United Kingdom
•Betfair has been cutting costs successfully
•The upcoming World Cup is expected to boost revenues
Ensuring a large number of new clients will be especially beneficial for Betfair ahead of the tax change in Britain. Corcoran, an Irishman himself, already revealed that the bookies will be supporting England at the World Cup in order to further enlarge their already impressive customer base in United Kingdom.
He said: “If England have a couple of losses early on, I think people will lose interest quickly.” This is a very likely scenario considering the Group of Death England has been draw into. The Three Lions got Italy, Uruguay and Costa Rica as their group stage opponents.
Currently Italy and Uruguay are the favorites to win Group D with equal 2.86 odds from Betfair. England trails at 3.45, and Costa Rica are natural outsiders with a whopping line of 50.00. England are also third in line to qualify for the last 16 with a line of 1.66 compared to 1.47 odds for Italy, 1.58 for Uruguay, and a line of 11.50 for Costa Rica.
The straight forecast odds for Group D are much more rewarding at Betfair. The leading one is Italy 1st and Uruguay 2nd – 5.40 odds, while both scenarios where Uruguay wins while Italy are second and Italy wins and England are second will pay at 5.80 odds. Not a bad offer by all means.
Betfair share prices
The stock prices for the bookmaker have been rising steadily ever since Betfair went on to reject private equity company CVC’s offer to buy them out last May. Currently the shares are trading on price-earnings multiple close to GBP 22 region, which makes them more expensive than those of competition represented by the likes of Ladbrokes, Paddy Power, and William Hill.
The current Betfair Chief Executive Officer, Corcoran, has joined the company back in 2012, after leaving the Chief Operating Position at Paddy Power. He has already rejected rumors and speculations that he will be replacing the outgoing CEO of Paddy Power Patrick Kennedy, when he steps down next year.
Corcoran commented on the rumors: “I’m very happy here and very busy here. I don’t think my friends in Dublin would have me back.”