The world’s largest gambling group GVC Holdings PLC reported numbers for the first quarter. The group saw a 17% rise in online gaming revenue while the revenue from the retail business was flat.
The group owns popular brands like Coral and Ladbrokes saw an 8% jump on its net gaming revenue. The major contribution to NGR came from online sports betting which was up by 16% and gaming by 20%. Revenues from the UK retail sector remained flat while European Retail saw a 2% spike.
The GVC group was happy with the performance despite the challenges it faced. Lowering of maximum bets on Fixed odds betting terminals (FOBTs) is considered to be a threat, and most companies fear that it will impact their revenues. The group sees minimum impact of new rules.
The new Fixed odds betting terminals (FOBTs) came into effect from April 1. The main motive for implementing new rules was to curb problem gambling which had been rising steadily.
Problem gambling has been on the rise. According to new research, 8 out of 10 children remember watching a gambling advertisement, something which is a cause of worry since the regulator doesn’t allow children being targeted.
Most of the ads were seen by children during sports events. Another surprising thing was that the proportion for children and adults seeing ads was the same.
GVC CEO Kenneth Alexander stated that it was too early to comment on the impact of stakes restrictions. However, the company is confident of meeting its performance and margin targets for the year.
The spike in revenues for the online division was quite encouraging. The company expects to see improved performance for its other online products. GVC Holdings PLC has expanded its wings and will cater to the US sports betting market.