Gambling company Flutter has beaten first half expectations, reporting a rise in revenues amid an online gambling boom.
Flutter Entertainment, has seen strong growth in its revenue and average number of gamblers.
Flutter said, revenue rose 28% to £3bn as its average number of gamblers rose 40% to more than 7.5 million.
Studies have suggested that during coronavirus lockdowns, online gambling has soared with many vulnerable groups particularly at risk.
The internet has made it easier than ever to gamble and the lack of restrictions means that no matter what time or day, there will always be an online casino or betting site open.
Chief executive Peter Jackson said: “The first half of 2021 exceeded our expectations as we made substantial progress against our operational and strategic objectives while maintaining excellent momentum in growing our player base”.
With countries across the world closing down betting shops to prevent the spread of coronavirus, gamblers have been forced to find new ways in which they can place bets.
Flutter attracted new customers during lockdowns, and kept hold of many of them in the second half, said Alistair Johnson, analyst at Redburn, said Alistair Johnson, analyst at Redburn.
The number of Flutter’s online customers in the UK skyrocketed during the coronavirus crisis, with 59% more online customers than in the same period of 2019.
And punters returned to betting shops as Covid restrictions eased during the second quarter, with UK retail revenue 7% higher than pre-Covid levels, it said.
The company’s numbers show a whopping 44% average growth in monthly customers occurred in the UK and Ireland, with 3.3 million people now subscribing to their services.
This outpaced revenue growth of 30% – so on average, revenue per active customer was lower, it said.
Flutter has been investing heavily into its US business, spending more than $1bn to date on marketing its flagship FanDuel sports betting brand.
The company said it had surpassed $900 million in revenue in the first half, putting significant distance between it and its main competitors.
On 5th May 2020, the gambling giant completed its acquisition of Canadian gambling company The Stars Group.
Freetrade analyst Gemma Boothroyd said, “As vaccination ramps up and Flutter’s main markets return to business-as-usual, it may be ill-prepared for lockdowns easing”.
“The pandemic lent a helping hand to online betting, speeding up its transition to digital”.
she added, US revenue growth, which soared by 159% to £652m, was “driven by six additional states legalising sports betting”.
Recent research by the House of Lords found that there are a third of a million problem gamblers in England, with young people being most at risk.
The financial and emotional toll of gambling addiction can be devastating. For every gambler, six others were harmed by their activities.
So two million people were harmed by “the breakup of families, crime, loss of employment, loss of homes and, ultimately, loss of life”, the report said.
The report also cited statistics showing 60% of gambling companies’ profits came from 5% of customers who were either problematic gamblers themselves, or who were at risk of becoming so.
A study by the University of Bristol in May this year found that online gambling in the UK soared in 2020, with regular gamblers more than six times as likely to gamble online.
The report suggested “many forms of gambling were restricted” but a minority had significantly increased their betting and gaming on-line.
Vulnerable groups are worse affected according to researchers who also noted a strong link between binge drinking and regular gambling.
GamCare, which operates the National Gambling Helpline, said it had received 41,000 calls for help in the year to March. This is a 9% increase on last years’ numbers.
It said there was a big increase in gambling due to boredom, but also more gamblers were using it as a coping mechanism during the pandemic.
The majority of gamblers who contacted the helpline had debt and financial difficulties due to gambling. The most problematic online products were slots, betting, and casino games.
Flutter said that it was developing steps “focused on protecting those who are vulnerable without unnecessarily impinging on the freedoms of the majority”.
The UK government is taking a proactive approach to gambling addiction by currently reviewing current laws and restrictions in an effort to reduce the number of people who develop problems with online gaming.
