SVL expects over $2b more from new game, more draws
...and sports betting
Supreme Ventures Limited (SVL) expects to generate up to $2.6 billion in additional revenue this year led by increased draws, a new game and increased sports betting driven by the FIFA World Cup.
That would equate to single-digit growth on the $35 billion in revenues earned last year.
"We expect growth from all our initiatives to see an increase in the region of $1.5 to $2.6 billion ," said Brian George chief executive officer and president of SVL, in his address to shareholders at the Knutsford Court Hotel in Kingston yesterday.
A large chunk of the proposed revenue rise between $434 to $869 million will come from the addition of an early morning game draw. That is based on a 30-week sales projection, according to George's powerpoint presentation. That draw will be broadcast at 8:30 am.
The company will also announce a new game called Top Draw.
But George avoided revealing specifics, opting to wait for its launch later this year.
"There is a reason it is called Top Draw," he said, pointing to the game's logo which illustrates stacked cabinet drawers.
SVL expects to grow its sports revenues substantially, valuing the long-term market size at up to $10 billion. Its sport betting brand JustBet earned revenues of $266 million last year, despite regulatory delays.
"That's peanuts compared to when we say the business is worth anywhere between $8 to 10 billion," said George on sports betting.
However, SVL sports betting revenues grew from $75 to $95 million in the March quarter 2014 year on year. SVL operates 28 company-owned sports betting locations across the island compared with over 1,100 lotto agents .
The recent parliamentary approval given to amendments to the Betting Gaming and Lotteries Act will allow for the expansion of third party contracted sports betting terminals. It's expected to catapult the sports betting market.
"Our target is to have 400 terminals by the 12th of June, the beginning of the World Cup. We are well on our way to achieving that goal," he said.
The regulator, Betting, Gaming and Lottery Commission, still has to give the company the final go-ahead to flip the switch on the new machines.
The move aims to capture the anticipated increased betting activity surrounding the FIFA World Cup.
"In terms of long-term outlook, the Jamaican lottery business is valued at $50 -60 billion including the illegal lottery business," he said. "Local sports betting represents a high growth area."