Live betting and World Cup boost online gambling profits

The Channel Islands-based firm said "in play" gaming – live betting during an event – accounted for 61 per cent of its core sports betting business in the year to July, up from 56 per cent last year.

The company said a 50m betting spree on World Cup matches also lifted overall sales to 208m, thanks to several favoured teams losing matches.

Andrew McIver, Sportingbet chief executive, also said revenues were up 17 per cent in the first two months of its financial year. The company reported a fall in pre-tax profits to 6.9m from 22.3m in the year, but this included a 22.8m settlement with the US Department of Justice over an investigation into alleged illegal internet gambling.

The agreement, which analysts have said clears the way for potential mergers or takeovers, means the firm will avoid being prosecuted in the US for accepting online bets made by Americans between 1998 and 2006.

The company, which operates across Europe and in Australia, said the total amounts wagered for the year grew by 25 per cent to 1.9 bn. Betting on sports is the group's core business, accounting for 69 per cent of revenue, compared with 64 per cent last year.

Football is the core product, accounting for 43 per cent of revenue.

The firm said "competitive and economic pressures" were hampering its casino, games and poker offering. Casino sales were up in the year from 41.3m to 44.9m, while poker revenues were down from 18.8m to 17.4m.

Ivor Jones, analyst at Numis Securities, said the strong performance and settlement with the Department of Justice "clears the decks" for a potential takeover. Shares were up three per cent following the results.