Seven days in … wagering – Entain, the rumour mill and staying the course

In this edition:

• ‘Going at pace’ – Entain commits to winning in Australia and focuses on new game plan for growth
• Football betting hits record levels in Hong Kong, as racing turnover edges up
• Positive pointers for PointsBet as MIXI gains majority shareholding
• Betr eyes brand refresh and more acquisitions after confirming positive growth
• Tabcorp extends NFL arrangement ahead of Melbourne game
• WA gambling regulator welcomes new appointments

Newly minted Australia and New Zealand CEO Andrew Vouris is adamant that Entain remains committed to its presence in Australia, via the Ladbrokes and Neds brands.

The industry rumour mill has been spinning ever since AUSTRAC announced is enforcement action last December and only intensified after the departure of a host of key executives, including long-term CEO Dean Shannon.

The departures were linked to the company’s change in strategy due to the increased focus on compliance – not any culpability for those who departed – but in a hyper-competitive industry, where rumour shapes markets, attention has turned to the future of the Australian operation.

There were links to acquisition plays from both betr and Tabcorp, while everyone you speak to in the wagering industry wants your take on where Entain might be, or might not be in 12 months.

In Vouris’ mind, it will be a better version of where they are now and certainly not sold off as has been suggested. With the New Zealand opportunity ramping up thanks to the legislative net, Australasia is anticipating a return to growth.

If Entain head office had sent a numbers man out from the UK to ‘clean house’, then it might be a very different story, but Vouris, while boasting strong compliance credentials, is certainly up for the fight judging by the recent interview that he gave to The Straight.

The ‘win, but not an any cost’ motto may be reigning supreme Entain’s Australia head office, but Vouris said that doesn’t mean the wagering outfit, which has around 17 per cent of the Australian market, will be stepping back.

“We’ve moved away from being what I would consider an innovator into a first follower. And we need to really shift the gears back and aggressively attack being an innovator again in that space,” he said.

The other main talking point around the traps at the moment is the battle for PointsBet, which has turned into the ‘war and peace’ of the wagering world.

MIXI moved into majority shareholding late last week, a significant enough moment for one insider to message that ‘the war was over’.

However, betr is still hanging around, with its own offer ongoing, and it now holds 27 per cent of PointsBet shares. Given how this one has evolved, you forgive us for not declaring a winner just yet.

 One of the concerns PointsBet has raised about betr as a partner is the latter’s reliance on racing customers. In its recently issued annual report, betr’s $132 million of wagering revenue was comprised of 83 per cent from racing and 17 per cent from sports. That was derived from 155,420 active customers.  

PointsBet, with 296,000 customers, is much more skewed towards sport, which it feels gives it a greater opportunity for growth. That characterisation of racing as a weakness is something that betr refutes.

However, it was interesting to see just how dominant sports betting is becoming, even in a racing heartland like Hong Kong. Turnover from football through the Hong Kong Jockey Club surpassed that of racing back in 2021 and is now HK$172.8 billion per year compared to HK$138.4 billion for racing.

Significantly, more tax is now being returned back to the government from football betting than racing. That’s just with one sport, and with the HKJC set to be approved to offer basketball betting in the near future, it will change the dynamic further.

Enjoy your wagering week and if you are at the Backing the Punt conference in Melbourne next week, make sure you come and say hi.

Regards

Bren O’Brien

Managing Editor and Founder

The Straight