Bookie Adds £20 Million To Marketing FundJake Cooper | 14 Mar 2018
British bookmaker Paddy Power Betfair is one of the world’s largest betting and gaming conglomerates. Recently, the firm’s CEO Peter Jackson revealed plans to add an additional £20 million (about $27.8 million) to the sportsbook’s marketing and advertising budget in 2018 in a bid to attract even more customers to the world of online betting.
According to a report from The Telegraph, this move has come after the firm admitted to losing a chunk of its market share to its competitors in the betting industry over the past 12 months. Jackson noted that the additional budget will encourage punters to stay with Paddy Power, despite its slowing product development pace due to focus on the merger between Paddy Power and Betfair.
PPB Falls Behind Due To Merger
Paddy Power Betfair spent a whopping £300 million on its marketing and advertising portfolio last year, and the firm already expects to exceed this figure in 2018 due to the upcoming Fifa World Cup national team contest. However, this amount is now set to be boosted even further, according to the recent statement from the bookie’s CEO.
According to Jackson in a comment to The Telegraph, Paddy Power had to stop all product development to integrate with Betfair as quickly as possible. This caused the bookie to lose market share and fall a little behind when it comes to its products. The move has also come after Paddy Power Betfair revealed its preliminary 2017 results last week, showing growth across revenue, operating profit and EBITDA streams.
The popular bookie also revealed impressive performances from its retail divisions during the past year. Due to these figures, Jackson noted in his statement, there is ‘no danger’ of the company losing any of its 354 betting shops for now.
UK Bookies Await FOBT Review
With this said, many UK-based bookmakers are waiting with baited breath for the government to post its review of the controversial Fixed Odds Betting Machines (FOBTs). The machines have recently undergone a massive national probe, which could see their bet limits being lowered from £100 to as little as £2 practically overnight.
Some operators have warned that this slash in stakes could force them to make financial cuts to stay afloat, but Jackson has voiced his support of the government’s plans to lower FOBT stakes. He has noted that these stakes need to ‘come down substantially’, adding that if the government does not make this move, it may only cause more problems in the long run.