Italian sportsbook grows 84% in March
Market records highest ever turnover figure of 232.3m but lower gross win on in-play holds back revenue growth
Monthly stakes in Italy’s online sportsbook market reached their highest ever levels in March as a surge in in-play betting led turnover to almost double year-on-year.
According to market figures, seen by eGaming Review, the record total of 232.3m also represented a 2% sequential increase on the 226.7m recorded in February.
But despite the huge growth in turnover, gross gaming revenues were up a far more modest 23% year-on-year to 29.3m.
According to Eurobet sportsbook director Carlo Di Maio, the disparity in growth rates can be attributed to a tough run of pre-match results and the rise of in-play betting producing lower margins.
“With the increment of the in-play coverage across operators in recent months and bet365’s arrival in September, sportsbook turnover has increased drastically but gross win margins are low for the nature of the in-play product,” Di Maio said.
Italy has also gone through a sustained period of liberalisation with the range of bets operators can offer widened, making the market more attractive to customers previously drawn to non-licensed operators.
And there was further good news for the sector in February when it was revealed the Italian government plans to alter the taxation of online gambling products so that all verticals are taxed on a revenue basis, with sports betting moving from its current tax on turnover.
A final decision on the tax changes, which could see sportsbook taxed at 20% of revenues, is expected to be announced before the end of the month.
The wide ranging changes have been encouraging more operators to enter the market with the likes of Sky Betting & Gaming, PokerStars and planetwin365 all expected to launch regulated sportsbooks during the course of 2015.
The hike in stakes in March is primarily due to an increased number of regulated players with the likes of bet365 having joined the market in the past year.