Paddy Power Betfair has been making the news. Now, the Paddy Power Betfair’s CEO has discussed the approach the company should assume in expanding in the United States after initial plans fell short of the mark. More of this as part of our report on the Q3 earnings call.
The Promised Betting Market
The United States may not be exactly the promised betting market that many imagined it to be. With Paddy Power Betfair CEO Peter Jackson stepping in on many occasions to explain what occasioned the recent crawl of his company in the country, Mr. Jackson is happy to completely change up his act and talk positive results instead.
A lot of local and contentious legislation makes it quite difficult to master this new land of promised gambling and betting treats. However, neither Mr. Jackson nor his company are dissuaded from participating, even if it’d cost a lot of effort.
In fact, Mr. Jackson knows how much exactly, putting the price of building an early momentum for the company in the United States at “substantial investment”. Mr. Jackson’s statement came on November 2, Friday, during the earnings call of the company.
As the plans stand, Paddy Power Betfair is preparing to launch a more significant roll-out of its sports betting assets in the country, hoping to reach and add new loyal customers. Mr. Jackson cited the positive results of FanDuel, the platform that the conglomerate acquired early in July, 2018.
FanDuel’s results have been growing and this comes amid news that New Jersey has kicked off the sports betting season in the state on a good, strong note, with profits slated to overtake those of Nevada by 2021 at the latest.
Amid the bad news around Europe, from closing of operations in Italy to hiking taxes in Ireland and the United Kingdom, the jump in revenue by 12% was a godsend. In Europe, revenue jumped by 15%, which was another welcome development, despite the shrinking opportunities for all gambling companies.
The company posted its EBITDA at £100 million, which was another improvement, with a 6% overall increase. Even though Paddy Power Betfair was faced with quite a few challenges these few last quarters, Mr. Jackson called the third quarter of the year exciting and successful, citing FanDuel’s performance and contributions to making the positive financial results possible.
The Exciting Potential in the United States
Mr. Jackson is smart about the company’s foothold in the United States, though His statements suggested that New Jersey will serve as a gateway into the broader North American market, with FanDuel commanding a significant interest and respect from customers.
To put things in perspective, FanDuel managed to scoop up 30% of all sports bet placed on sports, which puts the company in a unique position to cater to new customers and undertake more expensive marketing campaigns.
However, despite the US successes, the troubles at home must not be overlooked in the slightest. With this in mind, the upcoming changes in taxing remote gambling operators in the United Kingdom will prove a challenge (which has already claimed victims) that no-one has really made up their mind how to address yet.