Entain has officially launched a new betting platform in New Zealand, named “Betcha,” marking the first time since the establishment of the TAB that a new betting brand has been introduced in the region. Betcha is designed specifically to appeal to younger bettors and aims to counter the growing threat posed by offshore betting operators, which have been attracting a significant portion of the local market.
Targeting Younger Demographics
The Betcha platform is a joint initiative between TAB and Entain, though it will operate separately from TAB’s traditional offerings. Unlike TAB, Betcha will focus solely on fixed odds betting, excluding tote betting on racing. Current TAB users will need to create a new account to access the Betcha platform.
Cameron Rodger, Managing Director of Entain Australia and New Zealand, highlighted the motivation behind the launch, citing a 30% increase in New Zealanders’ spending with offshore betting operators in the three months leading up to the end of June 2024. Rodger noted that this trend is particularly pronounced among the 18-29 age group, where offshore betting activity has doubled over the past five years.
“Their betting activity provides little to no benefit for the New Zealand racing and sports industries, and these offshore operators are under no obligation to provide the same level of harm minimisation support and account management tools that Betcha will make available for Kiwis,” said Rodger.
A Strategic Move in a Competitive Market
The launch of Betcha is a direct response to these challenges, with Entain positioning the platform as a safer, more regulated alternative that contributes to the local economy. Betcha aims to emphasize the social and competitive aspects of sports and racing, focusing on popular sports among younger demographics such as football, basketball, and UFC. Notably, Betcha has already secured its position as New Zealand’s official wagering partner for UFC.
Mel Kenneday, Entain’s Chief Marketing Officer, added, “This new brand will emphasize the social and competitive value of sports and racing and introduce New Zealanders to the next generation of betting.”
Entain’s Strong Financial Performance in H1 2024
The launch of Betcha comes on the heels of Entain’s interim financial results for the first half of 2024, which reported a 6% increase in total group net gaming revenue (NGR) year-on-year. The company’s performance was bolstered by stronger-than-expected win margins during the UEFA Euro Championship and improved operational execution in the second quarter.
For the six months ending June 30, 2024, Entain reported a group EBITDA of £524m ($665m), reflecting a 5% increase. The company’s international operations showed strong growth, particularly in Brazil and the Central and Eastern Europe (CEE) region, which reported NGR increases of 28% and 12%, respectively.
However, the UK and Ireland segment faced challenges, with a 6% decline in NGR, attributed to regulatory pressures and market conditions. Despite this, the online sector in these regions saw a 12% increase in active customers and a stabilization in spend per head year-to-date.
Entain has also upgraded its full-year 2024 guidance, now expecting group EBITDA to be between £1.04bn and £1.09bn, reflecting the stronger-than-anticipated performance in the second quarter and regulatory adjustments in Brazil and the Netherlands.
BetMGM, a joint venture with MGM Resorts, continued to show growth, with a 9% increase in net gaming revenue in Q2 2024, maintaining a stable market share of 13%.
Source:
Entain launches Betcha betting platform, gamblinginsider.com, August 8, 2024.