The Isle of Man-based bookmaker reported the results for the year ended May 29, 2005, and announced that it will soon accept wagers from US customers.
The group turnover increased 106 per cent to £93.7m, with an overall loss of £1.9m identical to the previous year.
The sportsbook turnover was down over 50 per cent to £29.1m, while the casino and games reported a turnover of £18.7m in the 24 weeks following launch. The gross margin for the fixed odds business fell to 4.8% (2004: 5.5%) due to the lower margin arising from casino and games.
European Wagering Service, formerly Euro Off-Track, contributed with a turnover of £45.8m in the 48 weeks following acquisition. The margin achieved from the pari-mutuel business (2.3%) reflects its risk-free nature and the gross profit earned, before betting duty, was £1.1m for the 48 weeks that the operation was consolidated.
Euro Off-Track was mentioned in news reports relating to legal proceedings which took place in New York in January 2005. Two of the individuals under investigation referred ‘high rolling’ players to the the Isle of Man pari-mutuel hub, and the unwelcome publicity and reaction of the tracks have had a detrimental effect on the company\’s turnover and profitability.
The group invited the US Thoroughbred Protective Bureau to carry out an audit of the European Wagering Service\’s business and it remains fully confident of the results of the process.
Betinternet decided to start taking wagers from US customers and to do so it will relocate its sportsbook servers to Curacao in early 2006. The company is currently working with Florida-based IGW to create a revamped and dynamic sportsbook website to attract US customers.
“We have reacted positively to what we believe is a temporary setback in the otherwise excellent progress of European Wagering Services and have directed our attention creatively on the performance of the sportsbook. I am confident that the combination of an enhanced sportsbook platform, soon to be accepting wagers from US customers, and the return to full potential of European Wagering Services during 2006, will hold betinternet.com on its course of developing one of the most compelling and exciting one-stop gaming and entertainment platforms available to customers across the world,” said Chairman Denham Eke.
Paul Doona will stand down from his role of Managing Director at the end of December to become Finance Director at Fairground Gaming Holdings.
Garry Knowles, who was appointed to the board in June as sportsbook director, will take on the role of Managing Director at Betinternet.
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