Global sports betting giant GVC Holdings estimates a decline in EBITDA for the year ending 31 December 2020 of between £130 million and £150 million as COVID-19 shuts down the world’s biggest sporting leagues.
The sports betting industry promises to be one of the hardest hit due to the spread of the coronavirus, with the NBA, MLB, Formula 1 and most football leagues around the world having suspended competition in recent weeks.
Despite recording a 5% increase in group Net Gaming Revenue (NGR) and 16% increase in online NGR for the period between 1 January to 23 February 2020, GVC provided a glimpse into the near-term challenges facing the world’s sports betting operators via a series of announcements this week.
With confirmation that the EURO 2020 football championships have been postponed for 12 months and assuming all other football will be cancelled until July 2020, and also assuming major horse racing events such as Aintree and Royal Ascot are to be cancelled, GVC estimates a £130 million to £150 million reduction in EBITDA for the year. If betting shops in the UK are closed, EBITDA would decline by £45 million to £50 million per month.
GVC reported NGR of £3.66 billion in 2019 and EBITDA of £761 million, with 45% of group revenue and 43% of online revenue coming from sporting events.