Concern as online betting firms continue to ride Covid boom

British firm 888 — mainly known for its online casino games — said it generated record revenues of $972m (€850m) in 2021; 14% up on the previous 12 months.

Covid restrictions over the past two years have prompted a surge in online gambling revenues, with British company 888 the latest to post record figures.

888 — mainly known for its online casino games — said it generated record revenues of $972m (€850m) in 2021; 14% up on the previous 12 months.

It follows on from strong online showings for the industry’s other big players. 

Ladbrokes owner Entain saw a near 30% surge in online revenue in the first half of 2021. 

Paddy Power owner Flutter Entertainment saw online revenues grow 8% in 2020, and 40% in Britain and Ireland in the first half of 2021.

Closed betting shops during early lockdowns pushed punters towards online gambling while a temporary cancellation and postponement of big sporting events lured some into online casino games such as roulette and poker.

However, despite its strong results, 888 did note an easing in revenue growth in the final quarter of the year as Covid restrictions were lifted in its major markets.

It is a trend that consumer support group Problem Gambling Ireland has seen here. 

Chief executive Barry Grant said there was “a rapid onset” of gambling problems at the beginning of the Covid lockdowns, with younger recreational gamblers "at risk of spiralling out of control".

He said when sport stopped, there was a surge in Irish online gamblers migrating to online casino sites and even a rise in alternative betting such as on cryptocurrency value movements. 

However, since restrictions eased, there has been a normalisation and a return to regular betting practices, Mr Grant said.

Still, in each of the last two years, Problem Gambling Ireland has seen a 50% annual increase in visitors to its website looking for self-help tips.

The small percentage looking for its helpline number and counselling services has remained stable.

“Bookies shops are dangerous enough, but online is a totally different animal,” Mr Grant said. 

Online never closes and if you already have a gambling problem and move online, it’s bad news. 

"Online poker and casino games are the most addictive of the lot; they’re the crack cocaine or heroin of betting. 

"It’s available 24/7, 365 days a year and it doesn’t matter if live sport is on or called off.” 

The big betting firms are increasingly looking online to bolster their businesses. 

Last week, Flutter completed its €480m, or so, acquisition of British online operator Tombola, which is classed as “the UK’s most recreational bingo operator”. 

Just before Christmas, the Paddy Power owner also spent nearly €2bn on buying Sisal, the leading online betting operator in Italy.

Meanwhile, analysts believe 888’s acquisition of William Hill assets, which is expected to close in the second quarter, will improve 888's earnings and share performance this year.

The company last year announced the purchase of William Hill's businesses outside the US from casino group Caesars, propelling itself onto Britain's high streets with 1,400 physical betting shops.