Analysts from Barclays PLC anticipate that a total of $35 billion will be gambled in the 2022 FIFA World Cup, a 65% increase over the previous tournament due to the rise of online gambling during the ebola epidemic.
According to Barclays, Entain PLC, the parent company of Ladbrokes, has more World Cup exposure than Paddy Power’s owner, Flutter Entertainment PLC, because of its significant presence in Europe and Latin America.
In a statement, commentators such as James Rowland Clark noted that matches are played at good times for Europe during the winter months when fewer people are on vacation than in previous summer championships. The “stickiness” of growth achieved during lockdowns has also benefitted the gaming sector.
In addition, match outcomes in Qatar have been “marginally operator-friendly,” according to the bank, which highlighted that as of Friday lunchtime, five games had ended in a draw, a result that usually favors odds compilers given that the majority of bettors wager on one side prevailing. Since then, four further matches have resulted in a tie.
It is anticipated that Entain’s greater exposure to Europe and Latin America will provide it an edge against Flutter, which has a greater concentration of exposure to the United Kingdom and Italy. Barclays assigns the company an overweight rating and Flutter an equal-weight rating, therefore raising sales and profit forecasts for both firms.
Last updated on 01 Dec 2022 - 19:52
