Poland – Fortuna profits on the online gambling ban

Fortuna zakłady online, a company operating in Poland from the Warsaw Stock Exchange listed Fortuna Entertainment Group, since the entry of the bill banning online gambling into force, has recorded over 100% increase in revenues and assumes that it will benefit from this effect also in the year 2018, in wich it wants to grow by a minimum of 30%.

Fortuna zakłady online’s chairman Konrad Komarczuk estimates that after the regulations establishing, among others, the possibility of blocking bookmakers’ websites not registered in Poland or payments to such companies entry into force, the revenues of legal bookmakers have significantly increased.

In 2017, our revenues increased by 100%, and since the law prohibiting offshore trade entry into force , the increase exceeds 124%. At the end of last year, we had monthly increases of up to 170%. year-on-year. We have seen the transition of customers from illegal to legal companies, customers have also stopped sharing their wallet between these two groups and have now fully switched to legal firms – Komarczuk told PAP Biznes.

In his opinion, the effect of changes in regulations should be visible in the first months of 2018, until the football World Cup, which, alternating with the football championships of the Old Continent, means the greatest demand for products offered by bookmakers in Poland.

A strong increase in revenues in 2017 is the result of the implementation of the law on banning online gambling and this will have an impact on the revenues to the World Cup, because some players will then come back to play – he said.

Komarczuk counts on it, that in 2018 the bookmaker’s betting market in Poland will grow by an organic 20-30%, plus a few percent extra will come by during the World Cup. The total market growth in Poland in the whole year should reach 30-35%.

In 2017, the sportsbook market in Poland increased by 100%. and amounted to PLN 3.3 billion. In previous years, its growth rate was clearly lower and on average it was 18-20% annually. Among the markets where Fortuna Entertainment Group operates, Poland is perhaps not the largest in terms of revenue, but it is number one considering the value of profitability before tax.

We set it up in our budget, that we will grow as the market grows, at a rate of 30%, but I think that this result will be much better – said the president of Fortuna.

Komarczuk announced that ultimately Fortuna wants to be a leader of the Polish market, but this would not take place with a decline in profitability. Currently, the company’s share is estimated at thirty-some percent.

We want to be the market leader, we want our share to grow, but this will take time and it cannot be at the expense of profit. My primary goal is to provide profit to owners, and the market share is secondary. I am able to increase it in almost one day, lowering the margin on all products, higher or lower margins, we are able to quickly control the market share, but I do not want to act like that – he said. – We will focus on keeping the balance between market share and profit – he added.

Komarczuk informed that Fortuna’s Polish branch has no plans to grow through acquisitions. The resources available would be preferable to organic development.

We are able to do as much as one-one and a half of year by very aggressive marketing and bonus policy as through acquisitions. Theoretically, Totolotek has been selling for several years, there have been several approaches to its purchase, but our businesses are very much in line, its purchase would require optimization – he said.

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