Once again, I am pleased to report that Sportingbet has made significant progress during the last financial year. The Group continues to consolidate its position as a leader in the online sports betting market whilst growing profits significantly. This has been achieved against the backdrop of a poor economic climate for consumer spending in all markets and the additional adverse impact of new taxes in one of the Group’s core markets, Australia.
Regulation continues to define the internet gambling industry across Europe and the rest of the world. In general, we continue to see pressure on European countries to justify their national gambling regimes in light of the free-trade requirements of international law. Such actions have seen some countries move towards a more liberal stance and in certain cases the introduction of regulation whilst other nations continue to receive censure from various international trade organisations. Sportingbet strongly supports sensible, well balanced regulation that has consumer protection at the heart of its agenda.
Corporately, the Group seeks to mitigate regulatory risk through geographic diversification whilst retaining structural flexibility to react positively to such regulation if, when and where it may occur.
In the United States, the Group continues to be in talks with the US Department of Justice to seek clarification of the position of the US Authorities with respect to the Group’s previous activities and to determine whether a mutually acceptable resolution is possible. These talks continue and are both productive and amicable in their nature. The Board remains optimistic of reaching an appropriate settlement but there continues to be little visibility of the likely timing or quantum.
Our ethos is 'it's all about sport'. Sports betting is the origin and mainstay of our business, accounting for 64% of Group net gaming revenue ("NGR"), and is inherent in both the Company’s name and our core branding. Our objective is to develop our market-leading internet sports betting platforms to offer customers something to bet on every minute of every day through a secure, user-friendly and efficient interface. The Group’s European website offers one of the world’s largest ranges of betting markets per day covering all mainstream sports and leagues across the globe.
