High payout rate harms Italian sports betting revenues
Revenues for sector down 11% year-on-year " Snai remains market reader.
Figures from Italy’s soon-to-be-merged regulator AAMS show the country’s sports betting market has declined significantly in May, falling 11% year-on-year with total land-based and online revenues of 38m for the month.
For the first five months of the year revenues from fixed-odds sports betting fell 10% due in part to higher payout rates on bets placed. The payout rate for online wagers stood at 91.66%, and 87.92% for retail betting, combining for a sector average of 89.09%.
Coupled with a fall in total amounts deposited, which dropped 11% to 299.8m from May 2011’s takings of 337.9m, the sector continued a decline which began with revenues for the vertical dropping 71.7% year-on-year in AAMS’ figures for January.
The report also showed that Snai, despite seeing profits drop 97% for the first three months of the year due to a decline in revenues and high payout rate, maintained its position as the market leader for fixed-odds accounting for 30.6% of pre-match betting revenues. Lottomatica, however, currently has the largest share of the in-play segment, with 30.4% of live bets placed through its Lottomatica Scommese sportsbook, and 20.8% of pre-match.
Sisal holds the third-largest share, with its Matchpoint sportsbook providing 13.2% of pre-match, and 11.5% of in-play.