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Sportingbet Brand Set for Comeback

sport betting Mobile CrownBet, now a subsidiary of The Stars Group, asked the Australian Securities Exchange if it could revive its former name of Sportingbet to rebrand it and work toward re-entering the sports-betting market. Sportingbet has a long history of success in Australia, with hundreds of millions of dollars made in sports wagers. The name was purchased by the William Hill Group in 2013 so it could enter the Australian market. However, the new company decided to let the name Sportingbet go so it could concentrate its resources on its brand, William Hill Australia. The Australian sporting division of William Hill did not do as well as the company had hoped, however, and was sold to CrownBet for about $300 million, which was short of expectations. It is estimated that William Hill’s revenue in Australia was about $200 million, which was short of expectations for the company. At the time the company was sold, CrownBet was one of the largest sportsbooks in Australia, behind Tabcorp (an Australian company) and Sportsbet (owned by Paddy Power Betfair, a U.K./Irish company). While some Australian analysts are looking favorably on Sportingbet’s re-entry into the Australian market, because of its profitability and name recognition, other analysts stated it will be difficult to recapture a market share after being gone from the Australian market for five years. This is especially true because of the emerging importance of point-of-consumption (POC) taxes, which are set to take effect in many parts of Australia either in the fall of 2018 or the beginning of 2019. The POC taxes have a direct effect on online gaming because online gaming (including sporting wagers) are taxed at a rate between 8 percent and 15 percent. While it is not clear at this time how much of an effect the POC tax will have on sports gaming, it is estimated that the tax will have an effect on the bottom lines of gaming companies, which may mean that the new company will struggle to make a profit.

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