In a position of defense gambling due to coronavirus
By Nikos Chrysikopoulos
Due to the coronavirus, the gambling industry in Greece is temporarily in a position of defense, a market of 2,2 billion euros in terms of gross revenue (GGR, data 2019), which last year brought to the public coffers revenues of 980 million. euro.
Measures to reduce the coronavirus pandemic have led, as in many other activities, companies in the industry to join the national effort to reduce the pandemic and suspend the operation of all terrestrial gaming points (casinos, agencies, gaming). halls, Hippodrome etc.).
At the same time, the suspension of major events in Europe and elsewhere, such as, for example, the national football and basketball leagues, the UEFA Champions and Europa League, the Euroleague, etc. has also had a significant impact on online betting revenue.
As a result, online providers are currently limited to activities such as online casinos, poker, etc., while at the level of sporting events, online betting involves occasional matches in regional football leagues, ice hockey, table tennis, etc. that is, essentially in non-commercial betting events. Respectively, for the largest group of the domestic market, OPAP, now available through the internet are "Pame Stihima" and "Joker" and some horse races and greyhounds, in the USA and Australia for "pamestoixima.gr".
The financial impact on businesses and industry professionals is expected to be seen in the coming quarters, but will vary depending on the activity. Some casinos, for example, which are already financially burdened in addition to the losses from the shutdown due to coronavirus, have recently "seen" their turnovers declining due to the effects of the implementation of the anti-smoking law. As Capital.gr. Wrote, in the last two months of 2019 and the first of 2020, a decline in revenues was recorded at an average of 20%, a trend that had continued in March, until the suspension due to COVID-19. It remains to be seen with what moves the casino companies will be able to face the great challenge, as it is formed, of 2020, while some casinos do not have much hope in the course of Tourism, due to the unfavorable forecasts already recorded for the course of arrivals this year.
Respectively, the internet providers are moving forward with the fact of not holding Euro 2020 - a top betting event every 4 years - that has been postponed to 2021. the Champions League and the Europa League, the Euroleague, in order to start offering commercial betting again and to increase the volume of transactions. No one can predict it at this stage, but once sport normalcy returns, they will gain more visibility for the rest of the year.
Regarding the largest group in the Greek market, OPAP, Eurobank Equities, states that according to its basic scenario (closed stores by the end of April), the impact on the estimated EBITDA of 2020 will approach 27%.
However, OPAP has a strong balance sheet, high cash and cash equivalents, has completed its core investment portfolio, benefits from corporate tax cuts and has the flexibility to reduce costs and expenses to mitigate any impact. That is why (along with the generous, as it characterizes it, dividend policy) and Optima in a corresponding report states that OPAP continues to be an attractive investment choice.
The next day
In this context, the next day after the return of normalcy is expected with something more than interesting. Much of the gambling market will depend on the overall impact of the pandemic crisis on GDP and, above all, on the timing and size of the economy's response, as the industry is a major "blood donor" to public funds, while creating thousands of jobs.
According to data released by the Gaming Commission, in 2019 the gambling market in Greece grew by 14,70% in terms of total turnover (betting), reaching 15,96 billion euros, and by 5,25% in GGR level (gross profit after deducting player winnings), reaching 2,22 billion euros. Remote gambling games account for 53,31% of total betting, while land based games account for 46,69%. Conversely, the picture is similar to the share occupied by the above two categories on GGR, since the games that are played online (remote gambling) have a share of 19,63%, while those that are played based (land based) 80,37%.
As Capital.gr wrote, the gross income of casino companies in 2019 amounted to 246 million euros, while the gross income of online providers last year reached 437 million euros. Revenues from online gambling increased by 19,8% last year to a total bet of 10,91% on the GGR compared to 2018. At the same time, they are a steadily growing source of tax revenue. With the organization of the market and the effective supervision exercised by the EEEP, under the chairman of the Committee V. Karagrigoriou, in recent years, the tax revenues coming from the gambling sector increased from 587 million euros, to about 980 million .euro last year.
It remains to be seen what the performance will be for 2020. Based on the Budget forecasts, Mr. Staikouras expected revenues of 1,1 billion euros in 2020, most of which would come from the tax on gross profits of the lucky games, as well as the tax on winnings from lotteries and games of chance. The "cushion", however, is expected to be the licensing of online gambling, a process that will begin in the coming months and for which significant mobility is already recorded.
By Nikos Chrysikopoulos
Source capital.gr
By Nikos Chrysikopoulos
Due to the coronavirus, the gambling industry in Greece is temporarily in a position of defense, a market of 2,2 billion euros in terms of gross revenue (GGR, data 2019), which last year brought to the public coffers revenues of 980 million. euro.
Measures to reduce the coronavirus pandemic have led, as in many other activities, companies in the industry to join the national effort to reduce the pandemic and suspend the operation of all terrestrial gaming points (casinos, agencies, gaming). halls, Hippodrome etc.).
At the same time, the suspension of major events in Europe and elsewhere, such as, for example, the national football and basketball leagues, the UEFA Champions and Europa League, the Euroleague, etc. has also had a significant impact on online betting revenue.
As a result, online providers are currently limited to activities such as online casinos, poker, etc., while at the level of sporting events, online betting involves occasional matches in regional football leagues, ice hockey, table tennis, etc. that is, essentially in non-commercial betting events. Respectively, for the largest group of the domestic market, OPAP, now available through the internet are "Pame Stihima" and "Joker" and some horse races and greyhounds, in the USA and Australia for "pamestoixima.gr".
The financial impact on businesses and industry professionals is expected to be seen in the coming quarters, but will vary depending on the activity. Some casinos, for example, which are already financially burdened in addition to the losses from the shutdown due to coronavirus, have recently "seen" their turnovers declining due to the effects of the implementation of the anti-smoking law. As Capital.gr. Wrote, in the last two months of 2019 and the first of 2020, a decline in revenues was recorded at an average of 20%, a trend that had continued in March, until the suspension due to COVID-19. It remains to be seen with what moves the casino companies will be able to face the great challenge, as it is formed, of 2020, while some casinos do not have much hope in the course of Tourism, due to the unfavorable forecasts already recorded for the course of arrivals this year.
Respectively, the internet providers are moving forward with the fact of not holding Euro 2020 - a top betting event every 4 years - that has been postponed to 2021. the Champions League and the Europa League, the Euroleague, in order to start offering commercial betting again and to increase the volume of transactions. No one can predict it at this stage, but once sport normalcy returns, they will gain more visibility for the rest of the year.
Regarding the largest group in the Greek market, OPAP, Eurobank Equities, states that according to its basic scenario (closed stores by the end of April), the impact on the estimated EBITDA of 2020 will approach 27%.
However, OPAP has a strong balance sheet, high cash and cash equivalents, has completed its core investment portfolio, benefits from corporate tax cuts and has the flexibility to reduce costs and expenses to mitigate any impact. That is why (along with the generous, as it characterizes it, dividend policy) and Optima in a corresponding report states that OPAP continues to be an attractive investment choice.
The next day
In this context, the next day after the return of normalcy is expected with something more than interesting. Much of the gambling market will depend on the overall impact of the pandemic crisis on GDP and, above all, on the timing and size of the economy's response, as the industry is a major "blood donor" to public funds, while creating thousands of jobs.
According to data released by the Gaming Commission, in 2019 the gambling market in Greece grew by 14,70% in terms of total turnover (betting), reaching 15,96 billion euros, and by 5,25% in GGR level (gross profit after deducting player winnings), reaching 2,22 billion euros. Remote gambling games account for 53,31% of total betting, while land based games account for 46,69%. Conversely, the picture is similar to the share occupied by the above two categories on GGR, since the games that are played online (remote gambling) have a share of 19,63%, while those that are played based (land based) 80,37%.
As Capital.gr wrote, the gross income of casino companies in 2019 amounted to 246 million euros, while the gross income of online providers last year reached 437 million euros. Revenues from online gambling increased by 19,8% last year to a total bet of 10,91% on the GGR compared to 2018. At the same time, they are a steadily growing source of tax revenue. With the organization of the market and the effective supervision exercised by the EEEP, under the chairman of the Committee V. Karagrigoriou, in recent years, the tax revenues coming from the gambling sector increased from 587 million euros, to about 980 million .euro last year.
It remains to be seen what the performance will be for 2020. Based on the Budget forecasts, Mr. Staikouras expected revenues of 1,1 billion euros in 2020, most of which would come from the tax on gross profits of the lucky games, as well as the tax on winnings from lotteries and games of chance. The "cushion", however, is expected to be the licensing of online gambling, a process that will begin in the coming months and for which significant mobility is already recorded.
By Nikos Chrysikopoulos
Source capital.gr
