Sportingbet Leaves Italy

Sportingbet has sold its Italian operation to the local management team since expected regulatory changes never materialised and a lack of operational synergy with the group has meant its Italian venture has been loss making since acquisition.

The disposal of Sportingbet’s Italian business is likely to cost £7.1m.

Sportingbet Italia was acquired in May 2006 in anticipation of further liberalisation of online gaming regulation in Italy such as an increase of the maximum payout from €10,000 and being able to offer in-running markets to Italian customers.

These measures never happened as the Italian government instead offered 13,500 land-based licences. This meant further offline outlets for Italian punters to bet at, which requiring operators use specific software for the Italian market and meant Sportingbet Italia has been loss making since acquisition.

Amounts wagered at Sportingbet Italia in the first 11 months of its current financial year were £13.7m with £2m in net gaming revenue, generating an operational loss of approximately £1.5m.

Sportingbet will announce its full year results on 31 July and said it was still confident of reaching full year forecasts of £29m in operating profits.

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