Intralot Targets US Expansion After Ban Lift
The recent lift of the federal ban on sportsbetting in the United States is proving to be a window of opportunity for many game-driven entities. Intralot is the latest online casino operator to have set its sights on large-scale expansion in the US and enlarge its presence in the country. The reasoning behind the plans for expansion is that the company has seen a mixed revenue results for the first quarter of the year.
Revenue income during the first three months of the year amounted to $328.1m, which is a 4.3% increase from the same period last year. The same applies to gross gaming revenue, which saw a growth rate of 2.5%.
Adjusted earnings before interest, tax and amortization climbed by 7.5% overall, which in itself may leave anyone wondering why the results have been described as being mixed. The problem is that earnings before tax dropped by 5% on a year on year basis, while operating cash flow declined by 8.4%. Another issue raising concerns is the fact that the company’s net debt was also on a steady incline.
Stronger Sales During Q1
Group chief executive at Intralot, Antonios Kerastaris, said that the first quarter figures did show stronger sales and growth in especially developed markets. This reflected the fact that continued market growth was indeed paying off as hoped, and that efforts pertaining to upgrades were not for naught. The focus has very much been on growing markets and the development of next generation products as well as services relating to the digital transformation of lotteries.
Intralot To Focus On US
Kerastaris said that going forward; emphasis would remain on growing and emerging markets such as the United States. He also referred specifically to the immense growth that the industry expects to see after the striking down of the ban on sportsbetting by the US Supreme Court. A major hike in revenue income is expected across the market, with massive improvements expected for the overall annual GGR.
One independent research firm estimates that going forward, 32 states will be offering sportsbetting services. This as opposed to the initial 3 states that were able to do this before. The 3 states that were allowed to offer sportsbetting services were limited to sports lotteries.
The Court struck down PASPA because it said that PASPA violated a provision of the 10th Amendment. The PASPA battle started in 2012 when the state of New Jersey passed a law to legalize sportsbetting, and the war has been raging ever since.